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Occupancy below 70% and volume growth concerns
View Risks →Apollo Hospitals Enterprise Limited — Q2 FY26
Apollo Hospitals reported a strong Q2 FY26 with consolidated revenue of ₹6,634 crore (up 13% YoY) and EBITDA of ₹941 crore (up 15% YoY).
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high
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Apollo Hospitals reported a strong Q2 FY26 with consolidated revenue of ₹6,634 crore (up 13% YoY) and EBITDA of ₹941 crore (up 15% YoY). Healthcare services revenue grew 9% to ₹3,169 crore, driven by a 14% increase in revenue from core specialties (cardiac, oncology, neuro, gastro, ortho) despite a 1% headwind from Bangladesh patient decline. Occupancy stood at 69%, with ARPU rising 9% to ₹1,73,318 due to better case mix. Apollo HealthCo revenue grew 17% to ₹2,661 crore, with digital losses narrowing to ₹71 crore from ₹101 crore. AHL revenue grew 21% with margins improving to 11%. Management guided for healthcare services organic growth to return to 13% and expects six new hospitals to be commissioned over the next 12 months, with pre-opening EBITDA losses of ~₹150 crore. A risk remains from competitive pressures in diagnostics and potential margin dilution from new hospital ramp-up.
अपोलो हॉस्पिटल्स ने दूसरी तिमाही में अच्छा प्रदर्शन किया। कुल कमाई ₹6,634 करोड़ रही, जो पिछले साल से 13% ज़्यादा है। कमाई में से खर्चे निकालने के बाद बचा मुनाफ़ा (EBITDA) ₹941 करोड़ रहा, जो 15% बढ़ा। अस्पताल सेवाओं की कमाई 9% बढ़कर ₹3,169 करोड़ हुई। दिल, कैंसर, दिमाग, पेट और हड्डी जैसी बड़ी बीमारियों के इलाज से कमाई 14% बढ़ी, हालांकि बांग्लादेश के मरीज़ों की कमी से थोड़ा असर पड़ा। 69% बिस्तर भरे रहे और हर मरीज़ से औसत कमाई 9% बढ़कर ₹1,73,318 हो गई। अपोलो हेल्थको की कमाई 17% बढ़ी और डिजिटल सेवाओं का घाटा ₹101 करोड़ से घटकर ₹71 करोड़ रहा। कंपनी अगले 12 महीनों में 6 नए अस्पताल खोलेगी, जिससे शुरुआती घाटा ₹150 करोड़ हो सकता है। प्रतिस्पर्धा और नए अस्पतालों से मुनाफ़ा कम होने का जोखिम है।
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Read Transcript →Quarter Snapshot
Occupancy
69%
-4pp YoY
Occupancy declined from 73% in Q2 FY25 due to lower medical admissions from seasonality.
ARPU
₹1,73,318
+9% YoY
Average revenue per patient grew 9% driven by improved case mix and higher complexity cases.
Apollo 24/7 Users
44M
+3M QoQ
Digital platform added 3 million new users in the quarter, reaching 44 million total users.
Digital Losses
₹71 Cr
-30% YoY
Losses in the digital vertical reduced from ₹101 crore in Q2 FY25, aided by cost rationalization.
What Changed vs Last Quarter
NEW
Healthcare services organic growth to return to 13%
Management expects healthcare services revenue growth to revert to 13% as Bangladesh patients return and new markets are explored.
NEW
New hospital EBITDA losses of ~₹150 crore in FY27
Pre-opening EBITDA losses from six new hospitals are expected to be around ₹150 crore, with break-even targeted within 12 months.
NEW
Apollo 24/7 break-even by Q4 FY26
The digital platform is on course to achieve break-even by end of this fiscal year, though insurance investments may cause a slight delay.
NEW
HealthCo margin target of 7% by Q4 FY27
Apollo HealthCo aims for a revenue run rate of ₹25,000 crore and 7% EBITDA margin by Q4 FY27, with current H1 margin at 4.4%.
DROPPED
Digital business breakeven by Q4 FY26
Apollo 24/7 is on track to achieve breakeven by end of FY26, with losses narrowing to ₹73 crore in Q1 from ₹116 crore last year.
DROPPED
Hospital margin expansion to 25%+
Healthcare services margins are expected to improve from 24.5% to 25% or higher, before a marginal 100 bps dip from new hospital losses.
DROPPED
700 new beds operational in FY26
Four new hospitals (women's oncology in Delhi, multispeciality in Pune, acquired hospital in Bangalore, multispeciality in Kolkata) will add 700 beds in FY26.
DROPPED
Healthco + Keimed combined revenue of ₹25,000 crore by FY27
The merged entity (Apollo Healthco + Keimed) is expected to achieve a revenue run rate of ₹25,000 crore with 7% EBITDA margin by end of FY27.
NEW RISK
Occupancy below 70% and volume growth concerns
Occupancy declined to 69% from 73% last year, with medical admissions dropping 6% due to seasonality. Management targets 70% but faces structural challenges from shorter ALOS.
NEW RISK
Competitive pressure in diagnostics segment
Specialty care within AHL faces serious competition in diagnostics, impacting growth. Management acknowledged headwinds but provided limited mitigation details.
NEW RISK
CGHS rate hike has limited financial impact
Despite a significant CGHS rate hike, management noted that government business still offers a 65% discount to private tariffs, limiting margin benefit.
RISK GONE
E-pharmacy competition from quick-commerce
Quick-commerce players have entered the prescription business with aggressive discounts, potentially pressuring margins and customer acquisition costs.
RISK GONE
Bangladesh patient flow recovery uncertainty
International patient volumes from Bangladesh remain below pre-disruption levels, though case complexity has increased.
RISK GONE
GMV redefinition may confuse investors
The change in GMV reporting (excluding existing customer revenue) could lead to misinterpretation of growth trends.
Fast read
Guidance and risk preview
Management expects healthcare services revenue growth to revert to 13% as Bangladesh patients return and new markets are explored.
Occupancy declined to 69% from 73% last year, with medical admissions dropping 6% due to seasonality.
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