Apollohosp Ltd — Q2 FY25
Apollo Hospitals reported a strong Q2 FY25 with consolidated revenue of INR 5,589 crore (+15% YoY) and EBITDA of INR 816 crore (+30% YoY).
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
71%Questions answered2Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Will expansion plans for FY26 have cost spillover?
Asked by Kunal Dhamesha, Macquarie
Management confirmed all FY26 expansions will be commissioned, with specific cost breakdown.
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Question
So when I kind of look at it, roughly 60% of the total cost is in the balance cost. So how should we think about it? Do you think any spillover would be there?
Madhu Sasidhar, CEO
Yes. So if you look at the FY 26 expansion that we have, all of that will be commissioned in FY 26. There's no doubt about that. INR 1,700 crores is the balanced project cost there, and we are in good progress.
Partial answer
High priority
How many beds will be operationalized in FY26?
Asked by Kunal Dhamesha, Macquarie
Management gave a broad estimate but deferred detailed breakdown to year-end.
deferred to year-endbroad guidance only
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Question
So how should we think about the addition of beds in FY 26? How much is the realistic assumption that, let's say, 500 or 600 would come online in FY 26?
Madhu Sasidhar, CEO
We will provide you more color towards the end of this year, but you should broadly think of out of the INR 1,400 beds, half of it will be operationalized. All the hospitals will be operationalized next year.
Evasive
High priority
When will fixed cost leverage kick in given high occupancy?
Asked by Kunal Dhamesha, Macquarie
Management did not provide a clear timeline for margin improvement from fixed cost leverage.
no specific timelinereframed to future actions
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Question
So when do we see that fixed cost leverage kicking in for us, given we are already at a very high occupancy now?
Madhu Sasidhar, CEO
So you would have seen that in Q4 of last fiscal, I'm sure. When you look at the quarter-on-quarter, you don't see the improvements. ... Going forward, we will be working further increase in overall volumes as well as our focus on costs and efficiencies.
Answered
Medium priority
What is driving the material volume growth?
Asked by Shaleen, UBS
Management explained broad-based growth across geographies and specialties.
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Question
So what exactly is kind of working out for us here?
Madhu Sasidhar, CEO
It's a very broad-based growth in volume. It is led across by all hospitals in Tier One, Metro, and Tier Two cities, and that has been very, very intentional on our part.
Answered
High priority
When will ARPOB improve given high occupancy?
Asked by Shaleen, UBS
Management gave a specific ARPOB growth target and timeline.
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Question
When would you be in a position of seeing a better ARPOB of improvement? Given occupancy, we are here, which is pretty healthy.
Suneeta Reddy, MD
I think 6% is a reasonable ARPOB. 6% growth in ARPOB. And which we should be able to get back in the next couple of quarters.
Answered
Medium priority
What is the Bangladesh impact and outlook?
Asked by Shaleen, UBS
Management quantified the impact and provided recovery outlook.
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Question
The Bangladesh impact for you guys, and how has it impacted you, and how should we think about it going forward?
Madhu Sasidhar, CEO
If you look at the overall volumes of Bangladesh, it's down by 25% versus what it was historically. We are hopeful that it should recover...
Answered
High priority
Is 100 bps margin expansion for FY25 still achievable?
Asked by Neha Manpuria, Bank of America
Management acknowledged the difficulty and revised guidance to 50-60 bps.
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Question
Is it fair to assume that for fiscal 25, that seems difficult and margins would probably be slightly lower?
Madhu Sasidhar, CEO
So as of now, yes, yes, we see because Bangladesh also there's some headwinds... So I guess 50-60 beds we will still be in a position to get. So to get the entire 100 beds, we should probably wait for a bit longer.
Partial answer
High priority
What is happening with 24/7 GMV and quick commerce impact?
Asked by Neha Manpuria, Bank of America
Management explained strategy but did not provide a revised GMV target.
no specific GMV growth targetdeferred details
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Question
Could you give us some color on what's happening with GMV? I see that the private label is also slightly lower. Is there an impact from quick commerce?
Madhivanan Balakrishnan, CEO
We have made some technical changes in the way we measure it... we have reoriented that. In this financial year, the marketing expenses are dramatically coming down...
Evasive
High priority
Can 24/7 achieve INR 4,000 crore GMV this fiscal?
Asked by Damayanti Kerai, HSBC
Management did not confirm or deny the target, focusing instead on sustainability.
no commitmentreframed to profitability
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Question
So looking at Q1-ish performance, it definitely looks very back-ended in the second half. So do you think you can still achieve that number?
Madhivanan Balakrishnan, CEO
Whether we will be able to touch INR 4,000 crore, is something which we have not lost sight of the target, but we are not going to do it on the back of an increased spend in marketing.
Answered
High priority
Why is ARPOB growth slow and is pricing environment changing?
Asked by Shyam Srinivasan, Goldman Sachs
Management explained the ARPOB mix and reaffirmed 6-7% growth expectation.
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Question
Has something changed in terms of the pricing environment, or are hospitals one of your peers which reported earlier today, 2% growth, right?
Suneeta Reddy, MD
I think one factor is the fact that there were many medical discharges this quarter... In the metro cities, we are close to INR 70,000. Very healthy ARPOBs in the metros and lower ones in tier two.
Answered
Medium priority
Will insurance payers push back on pricing due to their losses?
Asked by Shyam Srinivasan, Goldman Sachs
Management addressed the concern directly, citing network strength and ongoing dialogue.
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Question
Wouldn't you be seeing this institutional payer group exert more influence in terms of better pricing going forward because they themselves are facing losses?
Suneeta Reddy, MD
The surge pricing did not happen at all at Apollo. ... The advantage of having a network is very important because imagine being a health insurance player and not having onboarded Apollo.
Partial answer
High priority
Can healthcare services EBITDA margin expand 100 bps in FY26?
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Management discussed margin impact from new beds but did not give a clear FY26 margin target.
mixed signals on margin direction
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Question
Will there be a scope to increase the EBITDA margin by, say, 100 basis points in FY26 or FY25?
Madhivanan Balakrishnan, CEO
What we said was from our existing businesses, we should be able to get back, get a 100-bed expansion overall. ... We don't expect huge losses, and I think that should not bring down the overall EBITDA margin by over 1%.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA margin this quarter 24.9% | 24.9% | 15% | Overstated vs filing |
| Combined pharmacy margins at 7.3% | 7.3% | 15% | Understated vs filing |
| 24/7 online pharmacy distribution margin around 13% | 13% | 15% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.