Apollohosp Ltd — Q4 FY25
Apollo Hospitals delivered a strong Q4 FY25 with consolidated revenue of INR 5,592 crore (+13% YoY) and PAT of INR 390 crore (+54% 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.
83%Questions answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Competition from quick commerce for e-pharmacy and 24/7 break-even timeline.
Asked by Damayanti Kerai, HSBC
Management gave qualitative progress but no firm break-even quarter, only a range.
no specific break-even date givenqualitative timeline only
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Question
How do you see competition ahead for your e-pharmacy business? Also, for 24/7 on a standalone basis, when do you see cost break-even in view of higher ESOP charges which we found in the fourth quarter?
Madhivanan Balakrishnan, CEO, Apollo HealthCo
As far as the QCommerce alignment is concerned, as of now, we do not have any plans of working with any of these. ... Apollo 24/7 has also launched a 19-minute proposition, which today contributes to almost 30% of our total GMV. ... we stick to a path of converting into a cash break-even between Q3 and Q4.
Partial answer
High priority
Worried about competitors taking volume with 10-minute delivery?
Asked by Damayanti Kerai, HSBC
Management acknowledged competition but gave no specific volume or market share data.
no quantitative impact sharedvague reassurance
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Question
Aren't you a bit worried that your competitors might be taking a larger chunk of the volume because of this 10-minute delivery or so?
Madhivanan Balakrishnan, CEO, Apollo HealthCo
Over the last two to three quarters, this particular trend essentially impacts us on the OTC products... We are watching the space very carefully. ... Our Bangalore numbers are holding up. ... At this point of time, the equations do not justify that.
Answered
High priority
Healthcare margin trajectory with new units coming in 2026.
Asked by Damayanti Kerai, HSBC
Management provided specific basis point breakdown and margin maintenance expectation.
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Question
How should we look at this trajectory given a couple of new units are coming up in 2026 and beyond?
Suneeta Reddy, Managing Director, Apollo Hospitals
It'll probably be about 140 basis points estimate is what we see. And 80 basis points improvement will come from cost. The balance, 60 basis points, will come from improved revenues...
Answered
High priority
Update on new digital businesses (insurance) and pre-op margin improvement.
Asked by Neha Manpuria, Bank of America
Management gave specific revenue numbers and timeline for insurance and margin improvement.
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Question
Could you give us an update on how the new businesses are doing? I think we introduced insurance in March. ... When do we start seeing that improving to achieve that cash break-even in the second half that you mentioned?
Madhivanan Balakrishnan, CEO, Apollo HealthCo
On the first bit of it, the insurance business, we officially started from the 1st of April... our number compared to last quarter has already doubled. ... We are on course this quarter to move at around INR 6 crores -INR 7 crores at a top-line basis.
Answered
High priority
Timing of new hospital capacity additions and losses.
Asked by Neha Manpuria, Bank of America
Management confirmed timing of bed additions and losses in Q4.
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Question
Is it fair to assume that a lot of the capacity that we are adding will probably come through only in the later part of the year based on your commentary that the losses would only be visible in the fourth quarter?
Suneeta Reddy, Managing Director, Apollo Hospitals
We will not the first half. ... By the end of the year, yes. The fourth quarter, there will be significant bed addition.
Partial answer
Medium priority
Clarification on operating beds timeline and GMV growth for FY26.
Asked by Tushar Manudhane, Motilal Oswal
Bed timeline answered directly, but GMV growth was deferred to another speaker.
GMV growth not answered by Sanjiv, later answered by Madhivanan
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Question
Just a clarification on the operating beds, while most of it, as in operational beds, are expected to come from fourth to FY 2026... And so just on GMV, if you could sort of clarify, what kind of growth one should think of with these new business initiatives for FY 2026?
Sanjiv Gupta, CFO, Apollo HealthCo
By Q3, you will see us operationalizing Pune. You will see us operationalizing Kolkata, a defense colony, and the first Sarjapur acquisition...
Answered
High priority
Hospital growth guidance for FY26 and impact of Bangladesh patients.
Asked by Shyam Srinivasan, Goldman Sachs
Management gave specific growth guidance and explained Bangladesh impact.
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Question
If you could guide us on how we should look at growth for the current fiscal, fiscal 2026. Also, if I were to look at Q4, actually growth slowed down for the hospital business, 10%. You attributed at the start to 2% from Bangladeshi patients.
Krishnan Akhileswaran, CFO, Apollo Hospitals
Going forward, I think we have always said that we would like to look at it organically at a low-teens growth is what we would like to focus on, low to mid-teens on the organically itself, on the healthcare services.
Partial answer
Medium priority
Details on 80 bps cost measures and 60 bps ARPOB improvement.
Asked by Shyam Srinivasan, Goldman Sachs
Management gave qualitative color but no specific quantified measures.
no specific cost-cutting programs quantifiedqualitative only
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Question
The second question is on the 80 basis points and the 60 basis points you called out. ... If you could just qualitatively give color on what are we cutting on costs and what are some of the improvements we foresee on ARPOB.
Mayank Vaswani, Head of Investor Relations, Apollo Hospitals
We have invested substantially in technology. ... Some of these are related to how we deploy our workforce and improve the productivity of the workforce. We are also being very careful with our expenses on materials cost...
Answered
High priority
Keimed margin dip and combined business 24% CAGR guidance.
Asked by Abdulkader Puranwala, ICICI Securities
Management explained margin dip and gave specific revenue target of INR 24,000 crore for FY27.
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Question
I think this year we have seen close to 22%-23% kind of a revenue growth, while the margins on a year-on-year basis have dipped a bit. ... Secondly, on the annual guidance of CAGR guidance of close to 24% from 2025 to 2027...
Sanjiv Gupta, CFO, Apollo HealthCo
Keimed, you saw a slight dip in the margin for our EBITDA for the current fiscal year ... only because of the reason that one-time expenses related to the entire acquisition...
Answered
High priority
Timeline for Keimed merger and margin guidance for FY27.
Asked by Harith Ahamed, Avendus
Management gave specific timeline and detailed margin bridge to 7%.
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Question
Can you clarify the timelines for completing the Keimed merger? ... On the margins front, the guidance is 7%-8% for FY 2027. ... If you can give some color on the drivers for this.
Sanjiv Gupta, CFO, Apollo HealthCo
15 months. ... if you look at today, when we closed Q4 or the full FY 2025, we had 3.2%, and our guidance is 7% plus. ... If I remove these two things ... the new number that comes for the EBITDA percentage is 6.4%.
Answered
High priority
24/7 operating expense trajectory and GMV to revenue conversion.
Asked by Nitin Agarwal, DAM Capital
Management gave specific expense reduction range and conversion ratio target.
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Question
On the operating expenses, how do you see the operating expenses playing out? They were about like INR 480 crore this year. Do you see them coming off in absolute terms? ... From a GMV to revenue conversion, what should we look at with the new services as a number?
Sanjiv Gupta, CFO, Apollo HealthCo
I strongly believe that while the expense for the whole year has been in the range of about INR 480 crore, current fiscal year, we should be seeing anything less than INR 400 crore or maybe INR 400-INR 425 crore. ... Currently, we are at roughly 37%. I think my estimate says that we should be able to hit closer to 45%-47%.
Answered
High priority
Timing of 24/7 margin improvement to 17-18% and drivers.
Asked by Madhav Marda, Fidelity International
Management confirmed FY26 timeline and listed specific margin drivers.
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Question
On the 24/7, when you spoke about the margin going to 17%-18%, that was in FY 2026 itself, or that's more like by FY 2027? ... So that's all being driven by the insurance vertical scaling up, or are there other initiatives?
Sanjiv Gupta, CFO, Apollo HealthCo
This increase should happen in this year. ... One is the insurance, which is obviously a high-margin profile business. Secondly, we also started working with many pharma companies to get the app monetization done. ... Third, there is overall reduction in discounts...
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Digital GMV growth target of 25%-30% annually | 30% | 13% | Overstated vs filing |
| HealthCo revenue INR 1,080 crore with 13.1% EBITDA margin | 13.1% | 14% | Understated vs filing |
| HealthCo EBITDA margin target of 17%-18% for FY26 | 18% | 14% | Overstated vs filing |
| Combined HealthCo+Keimed revenue target INR 24,000 crore for FY27 | ₹24,000 cr | ₹5,592 cr | Overstated vs filing |
| Combined EBITDA margin guidance of 7%+ for FY27 | 7% | 14% | Understated vs filing |
| Bangladesh impact on revenue INR 100 crore for full year | ₹100 cr | ₹5,592 cr | Understated vs filing |
| Hospital organic growth guidance low to mid-teens | 15% | 13% | Overstated vs filing |
| New hospitals to add over INR 1,000 crore revenue in FY27 | ₹1,000 cr | ₹5,592 cr | Understated vs filing |
| Insurance business monthly run-rate INR 6-7 crore in Q1 | ₹7 cr | ₹5,592 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.