Apollo Hospitals Enterprise Limited — Q1 FY26
Apollo Hospitals delivered a strong Q1 FY26 with consolidated revenue of ₹5,842 crore (+15% YoY) and EBITDA of ₹852 crore (+26% 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.
75%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
Why is GMV down 14% QoQ while costs improved? How to view GMV growth and new services?
Asked by Damayanti Kerai, HSBC
Management redefined GMV to exclude existing customers, making historical comparison unclear.
redefined metricno clear GMV growth trajectory given
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Question
How should we look at your GMV growth ahead? ... Additionally, if you can update on some of the newer services which were added to the platform, like insurance and the corporate tie-ups, et cetera.
Madhivanan Balakrishnan, CEO, Apollo HealthCo Limited
On the GMV question... we have restated some of the GMV numbers... we are focusing only on the new customer business... The restated numbers ensure that we will basically indicate that we have grown on a sequential basis at an 8%, whereas, on a year-on-year basis, we have moved on to 23%.
Answered
High priority
What are the drivers of 9% YoY ARPP growth? Split by case mix, payer mix, pricing.
Asked by Kunal Dhamesha, Macquarie
Management provided a clear split: 4-5% from pricing, remainder from case mix.
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Question
If you could provide the growth drivers for this in terms of case mix, payer mix, and pricing creep, if you can split this 9%?
Madhu Sasidhar, President and CEO of Hospitals Division, Apollo Hospitals Limited
If you were to average out the tariff, which is the price mix, I think you referred to, the land effect is probably in the 4%-5% on a year-on-year basis. The remaining comes from a combination of case mix...
Answered
High priority
Will 700 beds be operationalized this year? When will the next 800+ beds come?
Asked by Kunal Dhamesha, Macquarie
Confirmed 700 beds this year and next tranche in FY27.
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Question
This said that we will be operationalizing around 700 beds, is that the correct understanding of the 1,577 beds that we are slated to add this year?
Suneeta Reddy, Managing Director, Apollo Hospitals Limited
Yes, yes. ... The following year.
Partial answer
High priority
Will hospital growth rate inch up to mid-teens with bed expansion? How to view occupancy?
Asked by Neha Manpuria, Bank of America
Affirmed growth will go up but did not quantify occupancy improvement or timing.
no specific timelineno quantification of occupancy improvement
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Question
Is it fair to assume that the hospital growth rate, which has been in the 10%, 11%, will inch up to the mid-teens along with the bed expansion?
Suneeta Reddy, Managing Director, Apollo Hospitals Limited
Yes, Neha, it will certainly go up. I think you will see also an improvement in existing assets as well as the addition of new hospitals.
Answered
High priority
What is the full-year GMV after rebasing? How are new businesses like insurance tracking?
Asked by Neha Manpuria, Bank of America
Provided specific GMV guidance range and growth rate.
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Question
What would be the GMV for the full year based on this rebasing that we have done? Also, if you could give us some color on the new businesses...
Sanjiv Gupta, CFO, Apollo HealthCo Limited
We closed Q1 with INR 682 crore. We strongly believe that we should be hitting a number of about INR 3,000 crore-INR 3,200 crore for the full year... This should represent roughly 25% to 30% growth versus the previous year.
Partial answer
High priority
Why is occupancy weak vs peers? Will volume growth improve? Is business model changing?
Asked by Shyam Srinivasan, Goldman Sachs
Acknowledged lower occupancy but attributed to intentional ALOS reduction; no clear volume growth catalyst quantified.
no specific occupancy targetattributed to ALOS reduction
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Question
When you guide for organic growth of about 13% to 14%, we did 11% for this quarter. I just want to understand what should change...
Suneeta Reddy, Managing Director, Apollo Hospitals Limited
I think that there is a huge focus on volume. We have focused on CONGO. ... we will also focus on secondary care, and therefore, the volume should improve.
Answered
Medium priority
Why is AHLL performance mixed? Diagnostics margin odd? Summary of AHLL?
Asked by Shyam Srinivasan, Goldman Sachs
Explained one-off costs for new lab and normalized margin.
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Question
It's kind of all over the place... diagnostics is one I noticed, which is looking odd. Also, I think primary care... Maybe just a summary on AHLL, please.
Sriram Iyer, CEO, AHLL
We opened the central reference laboratory in Chennai on 30th April. ... If I normalize that, my EBITDA margin is about, in diagnostic, is at about 10.3%.
Partial answer
Medium priority
What drove the strong uptick in Apollo 24/7 margin? Guidance for revenue and margin?
Asked by Raman Venkata Kerti, Sequent Investments
Explained Q1 margin drivers but declined to give multi-year guidance.
no long-term guidance given
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Question
I just want to understand what drove this strong uptick in terms of margin? Can you give any guidance for Apollo Healthcare from perspective in terms of revenue growth and margin improvement for the next one, two years?
Sanjiv Gupta, CFO, Apollo HealthCo Limited
Our margin for the quarter one has been 15.4% versus Q4 of 12%, which is about 340 basis points up. ... renegotiated rates... better unit economics... insurance uptake... monetization.
Answered
High priority
Is the demerger of pharmacy correct? How will Keimed merger benefit?
Asked by Raman Venkata Kerti, Sequent Investments
Confirmed demerger and provided revenue and margin targets for combined entity.
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Question
My understanding is you are demerging the pharmacy business into a new entity. Is that correct? Can you also explain how the merger with Keimed Health will be beneficial in terms of synergy for the pharmacy business?
Krishnan Akhileswaran, CFO, Apollo Hospitals Limited
That's correct. ... Apollo HealthCo... will be listed separately by Q4 of FY 2027. ... Run rating currently at INR 17,000 crore of revenue... by Q4 of next year... we should be run rating at INR 25,000 crore of revenue with a 7% EBITDA margin.
Answered
Medium priority
How much Keimed EBITDA margin improvement is baked into 7% combined margin?
Asked by Avnish Burman, Vaikarya
Provided specific basis point improvement for Keimed margin.
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Question
I just wanted to know how much increase in Keimed EBITDA margins are you baking in when you drive for 7% for these overall margins by full year?
Sanjiv Gupta, CFO, Apollo HealthCo Limited
It would be roughly 40 basis points, sir. 3.1% should go up to 3.5%.
Answered
High priority
Can hospital margins remain stable given INR 150cr losses from new hospitals?
Asked by Vivek Agrawal, Citigroup
Quantified margin dip of 100 bps and explained absorption capacity.
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Question
Does the company have enough room to absorb the entire losses? ... how to look at the company's overall hospital margins since 2026 and 2027, whether they can remain stable, can move up or down.
Krishnan Akhileswaran, CFO, Apollo Hospitals Limited
It will be a marginal dip, right? 100 basis points marginal dip. ... the 24.5% EBITDA margins that we have reported, we hope to take it higher to 25% or 25% plus number. From there, you will see a dip of 100 basis points.
Evasive
Medium priority
What is the steady-state profitability of the digital business after breakeven?
Asked by Nitin Agarwal, DAM Capital
Refused to estimate steady-state profitability, only gave revenue growth range.
declined to give profitability targetonly gave growth range
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Question
On the digital business, we're talking about a breakeven by the end of 2026. In your assessment, on a steady basis, once the business gets into steady profitable distribution, what's the kind of profitability the business can do?
Madhivanan Balakrishnan, CEO, Apollo HealthCo Limited
I don't want to hazard a guess. ... I expect the growth to, on a year-on-year basis, to be in the range of 20%-25%. Please do not expect astronomical growth.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Q1 FY26 hospital EBITDA margin 24.5% | 24.5% | 15% | Overstated vs filing |
| Q1 FY26 Apollo HealthCo margin 15.4% | 15.4% | 15% | Matches filing |
| FY27 combined HealthCo+Keimed revenue run-rate INR 25,000 crore | ₹25,000 cr | ₹5,842 cr | Overstated vs filing |
| FY27 combined HealthCo+Keimed EBITDA margin 7% | 7% | 15% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.