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Apollo Hospitals Enterprise Limited — Q2 FY26
Apollo Hospitals delivered a solid Q2 FY26 with consolidated revenue of INR 6,304 crore (+13% YoY) and EBITDA of INR 941 crore (+15% YoY).
bullish
high
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Apollo Hospitals delivered a solid Q2 FY26 with consolidated revenue of INR 6,304 crore (+13% YoY) and EBITDA of INR 941 crore (+15% YoY). Healthcare services revenue grew 9% to INR 3,169 crore, driven by a 14% increase in high-complexity CONGO specialties, offsetting a 6% decline in medical admissions due to seasonality and a 1% impact from reduced Bangladesh patients. Apollo HealthCo revenue rose 17% to INR 2,661 crore, with digital losses narrowing to INR 71 crore from INR 101 crore. Management guided for organic hospital growth to return to 13% and expects six new hospitals to commission over the next four quarters, with aggregate EBITDA losses of ~INR 150 crore in FY27. A key risk is the potential margin drag from new hospital ramp-up costs, which management aims to mitigate through a INR 120 crore cost-saving program.
अपोलो हॉस्पिटल्स ने दूसरी तिमाही में अच्छा प्रदर्शन किया। कुल कमाई 6,304 करोड़ रुपये रही, जो पिछले साल से 13% ज्यादा है। कंपनी का मुनाफा (EBITDA) 941 करोड़ रुपये रहा, जो 15% बढ़ा। अस्पताल सेवाओं से कमाई 9% बढ़कर 3,169 करोड़ रुपये हुई। यह बढ़ोतरी मुश्किल बीमारियों के इलाज (जैसे कैंसर, दिल) में 14% उछाल से आई, जबकि मरीजों की संख्या में मौसमी कमी और बांग्लादेश से कम मरीज आने से 7% गिरावट आई। अपोलो हेल्थको की कमाई 17% बढ़कर 2,661 करोड़ रुपये हुई और डिजिटल सेवाओं का घाटा 101 करोड़ से घटकर 71 करोड़ रुपये रह गया। कंपनी अगले साल 6 नए अस्पताल खोलेगी, जिससे शुरुआत में 150 करोड़ रुपये का घाटा हो सकता है। इसे कम करने के लिए 120 करोड़ रुपये की बचत योजना चलाई जाएगी।
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New hospital ramp-up costs may pressure margins
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Healthcare Services Revenue
INR 3,169 Cr
+9% YoY
Revenue from healthcare services segment, driven by insurance and cash patients (83% of inpatient revenue).
CONGO Specialties Revenue Growth
14%
+14% YoY
Revenue growth from cardiac, oncology, neurosciences, gastro, and orthopedics, with 6% volume growth.
Apollo 24/7 Users
44M
+3M QoQ
Total registered users on the digital platform, adding 3 million new users in Q2.
Apollo HealthCo EBITDA
INR 110 Cr
+112% YoY
EBITDA improved sharply from INR 52 crore in Q2 FY25, driven by lower digital losses.
What Changed vs Last Quarter
NEW
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.
NEW
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.
NEW
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.
UPDATED
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.
DROPPED
700 beds operational in FY26
New hospitals in Delhi, Pune, Bangalore, and Kolkata to add 700 beds during FY26.
DROPPED
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.
DROPPED
Hospital EBITDA margin target of 25%+
Existing hospital margins expected to expand to 25%+ before new bed dilution of ~100bps.
NEW RISK
New hospital ramp-up costs may pressure margins
EBITDA losses from six new hospitals could be ~INR 150 crore in FY27, potentially dragging consolidated margins if ramp-up is slower than expected.
NEW RISK
Insurance pricing reset may limit ARPP growth
Insurance contracts are reset every two years; with some contracts up for renewal, pricing may not keep pace with inflation, impacting revenue per patient.
NEW RISK
CGHS rate hike still at 65% discount to private tariffs
Despite recent CGHS rate increases, government business remains significantly less profitable than insurance or cash, limiting margin expansion from that segment.
RISK GONE
New hospital ramp-up margin dilution
Management expects ~100bps margin dip from new hospitals, with total EBITDA impact of INR 100-150 crore over two years.
RISK GONE
International patient recovery uncertainty
Bangladesh patient flow remains below pre-crisis levels; recovery timeline is uncertain despite new markets like Iraq.
RISK GONE
Quick commerce competition in pharmacy
Aggressive entry of quick commerce players into prescription medicines could pressure margins and customer acquisition costs.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q1 FY26, Q2 FY25
Digital business expected to achieve EBITDA breakeven by end of fiscal year, with GMV run-rate of INR 800-900 crore.
Mentioned in Q2 FY25, Q3 FY25, Q4 FY25
Apollo HealthCo (including Keimed) targets revenue of INR 24,000 crore in FY27, with exit run rate crossing INR 25,000 crore.
Mentioned in Q1 FY26, Q2 FY25, Q4 FY25
Aggressive entry of quick commerce players into prescription medicines could pressure margins and customer acquisition costs.
Mentioned in Q2 FY25, Q4 FY25
Continued impact from reduced Bangladesh patient inflows, expected to persist through Q1 FY26, affecting hospital revenue and margins.
Mentioned in Q1 FY26, Q3 FY25
Management expects ~100bps margin dip from new hospitals, with total EBITDA impact of INR 100-150 crore over two years.
Fast read
Guidance and risk preview
Management expects healthcare services organic growth to revert to 13% as Bangladesh patients return (60% already back in October) and new markets...
EBITDA losses from six new hospitals could be ~INR 150 crore in FY27, potentially dragging consolidated margins if ramp-up is slower than expected.
View Risks →