Apollo Hospitals Enterprise Limited — Q3 FY26
Apollo Hospitals delivered a strong Q3 FY26 with consolidated revenue of INR 6,477 crore (+17% YoY) and PAT of INR 502 crore (+35% YoY), driven by double-digit growth across all...
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.
79%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
Updated thoughts on INR 150 crore cost headwind from hospital ramp-up.
Asked by Binay Singh, Morgan Stanley
Management confirmed the INR 150 crore figure but deferred detailed quarterly guidance to Q4.
deferred to Q4 for more detailno quarterly breakdown given
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Question
Last time we discussed about INR 150 crore cost headwind coming out of this ramp-up. Any updated thoughts on that? How much of it is already built into these numbers? How much should we expect in the coming quarters?
Krishnan Akhileswaran, Group CFO
We continue to believe that INR 150 crore is a good number for now. Currently, in the embedded numbers, we have approximately INR 15 crore of losses in the overall reported numbers for Pune and Asansol.
Answered
High priority
Reason for sequential drop in digital business GMV and revenue-to-GMV ratio increase.
Asked by Binay Singh, Morgan Stanley
Management provided specific reasons and quantified the impact on GMV.
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Question
Just on the GMV of the digital business, we've seen a sequential drop in GMV. And in fact, our revenue-to-GMV ratio also went up. Could you share your thoughts on that?
Sanjiv Gupta, CFO Apollo HealthCo
Two things: GST reduction on 21st September impacted GMV by INR 30-35 crore a quarter, and we stopped supplying to Amazon in early Q2. Accumulated impact roughly INR 75 crore for Q3.
Answered
High priority
Revenue base for digital business and cash EBITDA break-even guidance.
Asked by Neha Manpuria, Bank of America
Management explained the revenue moderation and gave a clear update on break-even timing.
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Question
Can you take us through what should be the revenue base for the digital business? What drove this moderation? And second, do we still keep our guidance for cash EBITDA break-even at the end of fourth quarter?
Madhivanan Balakrishnan, CEO Apollo HealthCo
Our pharmacy online business grew 32%. Cash EBITDA break-even pushed out by one quarter to Q1 FY27 due to insurance revenue recognition mismatch of INR 7 crore.
Answered
High priority
Bed operationalization timeline and ramp-up for new hospitals.
Asked by Karan Vora, Goldman Sachs
Management provided specific bed numbers and timelines for each hospital.
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Question
How many beds will be operationalized in Q1 and how will the ramp-up look like over the next six to nine months?
Krishnan Akhileswaran, Group CFO
Sonarpur 225 beds, half in Q1. Hyderabad 300, 50% in Q1. Pune add 100 beds by Q1. Gurugram 200-250 by Q2. Sarjapur 100 out of 150 by Q1. Roughly 40-50% of new beds operationalized by Q1.
Answered
Medium priority
ARPP growth drivers and discrepancy between 3% and 5% price growth.
Asked by Karan Vora, Goldman Sachs
Management clearly explained the difference between tariff increase and price realization.
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Question
What is driving the ARPP growth? In opening remarks 5% price growth, PPT mentions 3% price growth. What is that mismatch?
Krishnan Akhileswaran, Group CFO
3% was tariff increase during the year, 5% is effective price realization including insurance contract resets. ARPP growth from higher complexity cases and surgical growth.
Evasive
Medium priority
Target for digital business EBITDA break-even including ESOPs.
Asked by Karan Vora, Goldman Sachs
Management acknowledged the question but deferred providing a target to a future call.
deferred to next quarterno specific target given
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Question
Apollo 24/7 overall EBITDA break-even, not just cash, including ESOPs. Is there any target?
Madhivanan Balakrishnan, CEO Apollo HealthCo
ESOP cost maximum is getting consumed until this year. After that, very less cost on ESOP. But overall question, I request to wait for Q4 earnings call.
Partial answer
Medium priority
Whether price increase kicked in Q3 and if it drove the step-up in growth.
Asked by Bino Pathiparampil, Elara Capital
Management confirmed the price increase was present but did not quantify its contribution to growth.
did not quantify contribution of price vs volume
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Question
The price increase and realization increase, did that kick in Q3 or was it already there in Q2 and Q1? Can I assume a significant part of the step-up is from this realization improvement?
Krishnan Akhileswaran, Group CFO
It was there in Q2 also. But the more important point is higher complexity of cases and specialty focus. We should be able to sustain as we move forward.
Partial answer
Medium priority
Negotiation with health insurance companies and empanelment for new hospitals.
Asked by Damayanti Kerai, HSBC
Management gave a general positive outlook but lacked specifics on contract renewals or timelines.
no specific details on contract terms or timelines
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Question
How is your negotiation with health insurance companies going? For new hospitals, when do you start empanelment?
Krishnan Akhileswaran, Group CFO
We have good relationship with all insurance companies. Some delays in certain markets but we are on course. We start negotiations much before operationalization.
Answered
High priority
Clarification on GMV adjustments and revenue growth for digital business.
Asked by Damayanti Kerai, HSBC
Management clearly explained the adjustments and provided the adjusted growth rate.
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Question
You mentioned INR 75 crore adjustment. Can you clarify the changes in GMV booking? And if you can just clarify, you mentioned INR 75 crore kind of number, which would adjust in the two numbers, right?
Sanjiv Gupta, CFO Apollo HealthCo
Two factors: GST reduction and closure of Amazon channel. Accumulated impact roughly INR 75 crore for Q3. Excluding these, revenue growth would be 32% vs reported 15%.
Answered
Medium priority
Scope for further EBITDA improvement in base hospitals given high occupancy.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Management listed specific levers and gave an example of transplant growth.
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Question
At metros 70% occupancy, non-metros 62%, ROC 31%. What is further scope to drive EBITDA through case mix or payer mix?
Krishnan Akhileswaran, Group CFO
Opportunities: length of stay reduction, minimizing seasonal volatility, consistent focus on case mix and high-complexity cases like transplants (50% revenue increase vs last quarter).
Answered
High priority
Sustainability of 10% ARPP growth and margin trajectory next year.
Asked by Vivek Agrawal, Citigroup
Management provided a clear split of growth drivers and quantified margin expansion potential.
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Question
10% ARPP growth in nine months looks impressive. How sustainable is it? And do you have levers to mitigate INR 150 crore loss from new units?
Krishnan Akhileswaran, Group CFO and Sriram Iyer, CEO AHLL
We would like half on volume and half on case mix and pricing. Existing business can expand margins by at least 100 bps next year to offset new unit losses.
Answered
High priority
Base network margin expansion and impact of new unit losses.
Asked by Madhu Marda, FIL
Management gave a clear affirmative answer confirming the interpretation.
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Question
Base network margin seemed 25.3% in Q3. You said it can go up by 100 bps. So base network above 26% next year? And INR 150 crore loss comes on that?
Krishnan Akhileswaran, Group CFO
Yes.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Inpatient volume growth 4.5% in Q3 vs last year | 4.5% | 17% | Understated vs filing |
| Keimed EBITDA margin 3.3% in Q3 | 3.3% | 15% | Understated vs filing |
| Digital GMV growth guidance of 30% for FY26 | 30% | 17% | Overstated vs filing |
| Physical pharmacy same-store growth 16%, overall 20.5% | 16% | 17% | Matches filing |
| Hospital business revenue growth 12-14% on existing hospitals | 13% | 17% | Understated vs filing |
| Additional beds to add 3-4% revenue growth | 3.5% | 17% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.