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
✓ 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.
88%Questions answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Organic hospital growth guidance considering Bangladesh impact and insurance pricing.
Asked by Binay Singh, Morgan Stanley
Management gave a qualitative confidence but did not provide a specific organic growth percentage for next year.
no specific organic growth number for next yearreframed to long-term trajectory
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Question
how to think about organic growth for hospitals, keeping in light two points. First is that the Bangladesh impact incrementally will go away, so that'll be 1% +. Secondly, there's a lot of news flow on insurance pricing that hospitals are planning to keep steady for next year. Keeping both these, could you comment on this and then guide on organic hospital growth for next year?
Suneeta Reddy, Managing Director, Apollo Hospitals Limited
Yes, I think we are quite confident that we will get back into 30%. We say this because Bangladesh, at least 60%, has started coming back in October, and we believe that we will mitigate the impact of losing one territory.
Answered
High priority
Change in capacity expansion timeline from FY26 to FY26-27.
Asked by Binay Singh, Morgan Stanley
Management provided a detailed timeline for each hospital commissioning, addressing the change directly.
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Question
on slide 16, where we talk about capacity expansion. Here we used to say FY 2026 commissioning number. Now we are putting it under FY 2026-2027. Is there any change in ramp-up plans?
Krishnan Akhileswaran, CFO, Apollo Hospitals Limited
The way we are looking at it is this. Today, if you are looking at it, I'll comprehensively handle this slide because there are a couple of questions also which have come up. One was six new hospitals is what we are looking at adding. In the next year, this year to next year.
Answered
High priority
Impact on EBITDA margin trajectory from new hospital costs.
Asked by Damayanti Kerai, HSBC
Management gave a specific number for expected EBITDA losses from new hospitals.
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Question
If you can comment a bit on the impact on EBITDA margin trajectory due to the new costs coming up.
Krishnan Akhileswaran, CFO, Apollo Hospitals Limited
We continue to believe that next year, overall EBITDA losses from these hospitals should be around the INR 150 crore number, which is what would be the EBITDA losses from these hospitals.
Partial answer
Medium priority
Sustainability of Apollo 24/7 spend levels and headroom to reduce.
Asked by Damayanti Kerai, HSBC
Management indicated current spend is near new normal but did not quantify further reduction potential.
no specific reduction target givendeferred to next financial year
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Question
Last two quarters, I think somewhere INR 94 crore, INR 96 crore kind of spend, which we have seen. What kind of headroom do you have to reduce from these levels, or these are more sustainable cost levels to look at?
Madhivanan Balakrishnan, CEO, Apollo HealthCo
A big chunk of the cost has been. As an individual entity, we have reduced it quite a bit. This would be, in a way, a new normal. ... You'll see some more, but that will typically happen from the next financial year.
Answered
Medium priority
Improving GMV for Apollo 24/7 after stagnation.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Management explained the reasons for GMV stagnation and provided outlook for improvement.
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Question
on the GMV side, probably INR 7,200 crore-INR 7,300 crore seems out of a stable for last three or four quarters. ... if you could share your thoughts on how do we think about improving the GMV.
Madhivanan Balakrishnan, CEO, Apollo HealthCo
You have to look at the GMV from three perspectives. ... This GMV reduction, that is why you are seeing just a 16% growth. That is coming primarily from the pharmacy side. ... You will start seeing the increase on a quarter-on-quarter basis because now it is a new normal.
Answered
Medium priority
Reason for IP volume decline in Karnataka cluster.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Management provided specific reasons and data for the volume decline.
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Question
the Karnataka cluster has seen IP volume decline. If you could share a bit.
Krishnan Akhileswaran, CFO, Apollo Hospitals Limited
Karnataka region, there was a drop in the medical admission significantly in that region, particularly. ... I think it is really a seasonality. ... If you trace those medical admissions back to last year, it was almost entirely a very bad dengue season, which we have not seen this year.
Answered
High priority
KEIMED margin softness and outlook towards 7% guidance.
Asked by Harith Ahamed, Avendus Spark
Management explained the one-time nature and reaffirmed the 7% margin guidance.
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Question
We've seen some softness there for around 30 basis points-40 basis points decline on a year-on-year basis. ... How should we think about KEIMED margins, especially in the context of the overall margin guidance of 7% by Q4 next year?
Sanjiv Gupta, CFO, Apollo HealthCo
this Q2, we had slightly a drop in the EBITDA margins for KEIMED, but this is only one-time. Integration and scheme-related expenses which got accounted in Q2. ... we are hopeful that we should be able to hit that mark.
Answered
Medium priority
Competitive headwinds in specialty care segment within AHLL.
Asked by Harith Ahamed, Avendus Spark
Management identified specific verticals with competition and outlined focus areas.
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Question
Within specialty care, growth has been a bit soft there, and you called out competitive headwinds in the segment. Trying to understand which verticals within specialty care we're seeing higher competition and what's the outlook here.
Suneeta Reddy, Managing Director, Apollo Hospitals Limited
In terms of competition, clearly, the only one that has serious competition is diagnostics because Spectra, there is no competition. In Cradle, it is only where our Cradles are present. There is very little competition, except in Karnataka, where Cloudnine has a big market share.
Answered
High priority
Confirmation that 13% growth is organic and expansion adds to it.
Asked by Neha Manpuria, Bank of America
Management confirmed the organic growth assumption and quantified the additional growth from new beds.
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Question
Ma'am, I think you mentioned that you expect growth to get back to 13% for the healthcare services business. This, I assume, would be organic growth, and the expansion should add to this growth. Would that be a fair assumption?
Suneeta Reddy, Managing Director, Apollo Hospitals Limited
I think over a three-year period, you will see that there is headroom for growth within the system. This should result in 13% growth in the existing beds and an additional 5% coming from new beds in the next 26 months.
Answered
High priority
Lower limit on ALOS and path to better volume growth and occupancy.
Asked by Shyam Srinivasan, Goldman Sachs
Management provided a target occupancy and explained ALOS reduction drivers.
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Question
ALOS has been consistently declining. ... Is there a theoretical lower limit where we reach on ALOS? ... when will we start seeing better volume growth? Because utilizations have been below 70. ... I'm just trying to compare ourselves with some of our peers whose utilizations are higher.
Suneeta Reddy, Managing Director, Apollo Hospitals Limited
Seventy is definitely a benchmark that we're looking at. ALOS has dropped by 7%. This is the use of new technology, whether it's cardiac where we have minimally invested, as well as robotics. ... With regard to occupancy, I think that 70% is definitely the target that we hope to reach.
Answered
High priority
Why hospital EBITDA margin flat despite strong ARPP growth and how to offset new unit losses.
Asked by Kunal Dhamesha, Macquarie
Management explained the cost ahead of openings and quantified new hospital losses.
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Question
If you look at the EBITDA margin in this quarter, it has remained same despite strong ARPP growth of around 9%. ... What is driving profitability to kind of remain same? ... how comfortable are we with offsetting the losses from the new units that we are expecting over the next four quarters?
Suneeta Reddy, Managing Director, Apollo Hospitals Limited
there was a considerable amount of INR 67 crore spent on doctor hiring. ... It's a little of the cost coming ahead of the opening, which is why it seems it is at 24.6. It is flat. Going forward, we should see the benefits of all of this. Therefore, the impact of the losses in the new hospitals will remain at INR 140 crore-INR 150 crore.
Partial answer
High priority
Base network margins excluding new hospital costs and scope for expansion.
Asked by Madhav Marda, Fidelity
Management gave cost estimate but did not provide precise base margin percentage, promising future disclosure.
no exact base margin number givendeferred to next quarter split
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Question
Could you give some sense in terms of what the base network margins are adjusted for some of these costs which you're already building in for the newer hospitals? ... how do you think that could progress over the next couple of years, excluding the new beds?
Krishnan Akhileswaran, CFO, Apollo Hospitals Limited
In the base, we would like, approximate cost, which is there in this quarter, would be roughly around INR 10 crore in this quarter. ... We are clearly hoping and working on ensuring that we should get the overall margins over 25% in the next year and even higher on the established hospitals.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Expect hospital growth to get back to 30% | 30% | 13% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.