Apollo Hospitals (APOLLOHOSP) Q1 25/26 earnings summary

Executive summary

• Consolidated revenue grew 15% year-on-year to INR 5,842 crore (₹58,421 million) in Q1 FY26, with EBITDA up 26% and PAT up 42%, reflecting strong performance across all divisions and digital expansion.

• Healthcare Services revenue increased 11% year-on-year, driven by 3% inpatient volume growth and 9% higher average revenue per patient.

• Strategic focus on clinical excellence, digital platform scaling, and hospital capacity expansion, with 4,300+ new beds planned over the next five years and 700 beds to be operational in FY26.

• Announced demerger and reorganization of digital health and pharmacy business, with planned listing of New Co and Keimed merger by FY27.

• Launched new digital and preventive health initiatives, including AI-powered platforms, expanded insurance offerings, and a central reference laboratory in Chennai.

Financial highlights

• Healthcare Services revenue at INR 2,935 crore (up 11% YoY); insurance patient revenue up 13%, cash patient revenue up 16%.

• Apollo HealthCo revenue at INR 2,472 crore (up 19% YoY); Apollo Health and Lifestyle revenue at INR 435 crore (up 19% YoY).

• Consolidated EBITDA reached INR 852 crore (up 26% YoY); Healthcare Services EBITDA at INR 718 crore (up 15% YoY); Apollo Health and Lifestyle EBITDA at INR 40 crore (up 31% YoY).

• Consolidated PAT was INR 433 crore, a 42% YoY increase; diluted EPS at INR 30.10 per share.

• Net debt position improved to -₹3,429 million, with gross debt at ₹28,504 million and cash equivalents at ₹29,763 million.

Outlook and guidance

• Digital business (Apollo 24/7) is on track to achieve breakeven by fiscal year-end.

• Hospital business expects 13-14% organic growth in existing assets, with an additional 10% growth from new beds over the next 2-3 years.

• Expansion strategy includes over 4,300 new beds in five years, with a total project cost of ~₹7,600 crore; first phase of 2,000 beds underway.

• Apollo HealthCo and Keimed combined expected to reach INR 25,000 crore revenue and 7% EBITDA margin by FY27.

• Ongoing evaluation of bolt-on acquisitions in Tier-1 cities and metros.