Apollo Hospitals (APOLLOHOSP) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue grew 15% year-over-year to INR 55,893 million, with EBITDA up 30% to INR 8,155 million and PAT up 63% to INR 3,788 million, driven by strong performance across healthcare services, diagnostics, and digital health.

• Apollo HealthCo reported its first-ever quarterly profit, contributing to improved consolidated PAT.

• Major expansion initiatives include a new 500-bed hospital in Mumbai, expansion of the Lucknow facility, and over 3,500 new beds to be added in the next 3-4 years.

• H1 FY25 consolidated revenues reached INR 106,749 million, up 15% YoY, with EBITDA at INR 14,906 million (up 31%) and PAT at INR 6,840 million (up 71%).

• Diagnostics and retail health (AHLL) revenue rose 14% YoY, with specialty care and diagnostics segments showing robust growth.

Financial highlights

• Q2 FY25 consolidated revenue: INR 55,893 million (+15% YoY); EBITDA: INR 8,155 million (+30% YoY, margin 14.6%); PAT: INR 3,788 million (+63% YoY); Diluted EPS: INR 26.34.

• H1 FY25 consolidated revenue: INR 106,749 million (+15% YoY); EBITDA: INR 14,906 million (+31% YoY, margin 14.0%); PAT: INR 6,840 million (+71% YoY); Diluted EPS: INR 47.57.

• Healthcare services Q2 revenue: INR 29,032 million (+14% YoY), EBITDA: INR 7,220 million (+14% YoY), margin 24.9%, occupancy 73%.

• Apollo HealthCo Q2 revenue: INR 22,822 million (+17% YoY), EBITDA: INR 521 million (vs. loss of INR 387 million in Q2 FY24), PAT: INR 190 million (vs. loss of INR 678 million in Q2 FY24).

• AHLL Q2 revenue: INR 4,039 million (+14% YoY), EBITDA: INR 414 million (+30% YoY), margin 10.3%.

Outlook and guidance

• Plans to add over 3,500 beds across 11 locations in India over the next 3-4 years, with half of 1,400 new beds to be operationalized in FY26.

• Targeting consolidated year 3 revenues of INR 250 billion (including Keimed) and operating margins of 7%-8% for the merged entity.

• Online segment expected to achieve break-even in five to six quarters.

• ARPOB growth expected to return to 6%-7% in coming quarters.

• Continued focus on expanding access to high-quality healthcare, especially in underserved regions.