Apollo Hospitals Enterprise FY26 Annual Earnings Summary
3 quarters covered · ₹18,623 Cr revenue · ₹943 Cr PAT · 5.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY26Risks flagged during the year
Gurugram hospital delayed by 2-3 months due to environmental clearance issues; startup losses could exceed INR 150 crore if occupancy ramps slower than expected.
Q1 FY26 · mediumManagement expects ~100bps margin dip from new hospitals, with total EBITDA impact of INR 100-150 crore over two years.
Q1 FY26 · mediumBangladesh patient flow remains below pre-crisis levels; recovery timeline is uncertain despite new markets like Iraq.
Q1 FY26 · mediumAggressive entry of quick commerce players into prescription medicines could pressure margins and customer acquisition costs.
Q2 FY26 · mediumEBITDA losses from six new hospitals could be ~INR 150 crore in FY27, potentially dragging consolidated margins if ramp-up is slower than expected.
Q2 FY26 · mediumInsurance contracts are reset every two years; with some contracts up for renewal, pricing may not keep pace with inflation, impacting revenue per patient.
Q3 FY26 · mediumSome insurance contract renewals have been pushed out, potentially impacting revenue mix and ARPP growth in certain markets.
Q3 FY26 · mediumChanges in GST and insurance commission recognition caused a INR 7 crore revenue deferral in Q3, delaying cash EBITDA breakeven by one quarter.
Q2 FY26 · lowDespite recent CGHS rate increases, government business remains significantly less profitable than insurance or cash, limiting margin expansion from that segment.
Q3 FY26 · lowRecent poaching of a star oncologist by a peer highlights retention risk, though management believes Apollo's brand and platform mitigate this.
What changed through the year
Q1 FY26 · Apollo 24/7 breakeven by Q4 FY26
Digital business expected to achieve EBITDA breakeven by end of fiscal year, with GMV run-rate of INR 800-900 crore.
Q1 FY26 · 700 beds operational in FY26
New hospitals in Delhi, Pune, Bangalore, and Kolkata to add 700 beds during FY26.
Q1 FY26 · HealthCo+Keimed revenue run-rate of INR 25,000 crore by FY27
Combined entity targeting INR 25,000 crore revenue with 7% EBITDA margin by end of FY27.
Q1 FY26 · Hospital EBITDA margin target of 25%+
Existing hospital margins expected to expand to 25%+ before new bed dilution of ~100bps.
Q2 FY26 · Organic hospital growth to return to 13%
Management expects healthcare services organic growth to revert to 13% as Bangladesh patients return (60% already back in October) and new markets are explored.
Q2 FY26 · Six new hospitals to commission by Q1 FY27
Pune and Defence Colony in Q3, Sarjapur and Kolkata in Q4, Hyderabad and Gurugram in Q1 FY27. Aggregate EBITDA losses from these hospitals expected at ~INR 150 crore in FY27.
Q2 FY26 · Apollo 24/7 break-even by Q4 FY26
Digital platform on course to break even by end of fiscal year, with all three lines (pharmacy, diagnostics, consults) already CM1 positive.
Q2 FY26 · HealthCo margin target of 7% by Q4 FY27
Apollo HealthCo targeting INR 25,000 crore revenue run rate with 7% EBITDA margin by Q4 FY27, supported by KEIMED integration and digital break-even.
Q3 FY26 · New bed additions of ~1,500 over next two years
Approximately 1,500 new beds will be added across four new hospitals, with ~50% operationalized in FY27 and balance in early FY28.
Q3 FY26 · Startup losses of INR 150 crore in FY27
Management expects total startup losses of INR 150 crore from new hospitals in FY27, with potential quarterly peaks of INR 50 crore.
Q3 FY26 · Digital business cash EBITDA breakeven delayed to Q1 FY27
Cash EBITDA breakeven for Apollo 24/7 pushed out by one quarter to Q1 FY27 due to insurance revenue recognition changes.
Q3 FY26 · Existing hospital margin expansion of 100 bps in FY27
Management expects 100 bps margin improvement in existing hospitals next year through asset utilization and cost optimization.