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).
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 outlook considering Bangladesh impact and insurance pricing.
Asked by Binay Singh, Morgan Stanley
Management gave a broad confidence statement but did not provide a specific organic growth number for next year.
no specific organic growth guidance givenreframed to revenue growth instead of organic
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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.
Suneeta Reddy, Managing Director, Apollo Hospitals Limited
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, directly addressing the question.
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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
This coming quarter, you would see us already started commissioning. We already soft commissioned the Defence Colony cancer hospital. We have also soft commissioned Pune. You will see that Pune and Defence Colony both will start. We will start reporting numbers from this quarter itself, which is Q3.
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 potential reduction.
no specific reduction target givenvague on timing
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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
This would be, in a way, a new normal. As we get into the program of aligning between the three entities, KEIMED, Apollo Pharmacy, PD, we will see a little bit more of synergies coming through as both the teams will merge.
Answered
Medium priority
How to improve Apollo 24/7 GMV which has been stable.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Management explained the components of GMV and gave growth rates for platform revenue.
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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. One, how is the pharmacy business growing? Within the pharmacy business itself, there were two levers. One, what we call as a platform revenue, which is primarily driven by Apollo 24/7, the app and the website, which has been growing at a very good pace of around 30% on a year-on-year basis.
Answered
Medium priority
Reason for IP volume decline in Karnataka cluster.
Asked by Tushar Manudhane, Motilal Oswal Financial Services
Management provided specific volume breakdown and attributed it to seasonality.
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Question
from the hospital side, 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. If you look at the drop overall of the 6% that we reported in this region, there is a medical volume drop of 15%, while surgical volume went up by 2%, and cath also went up by 13%.
Answered
High priority
KEIMED margin decline and outlook for 7% margin guidance.
Asked by Harith Ahamed, Avendus Spark
Management explained the one-time nature and gave a margin improvement target.
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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. Within KEIMED, is that activity over? 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 is only one-time. Integration and scheme-related expenses which got accounted in Q2. You would not see the same happening from next quarter onwards. As suggested earlier, also over a period of time, we're looking at 20 basis points-30 basis points over and above 3.1%.
Answered
Medium priority
Competitive headwinds in specialty care segment within AHLL.
Asked by Harith Ahamed, Avendus Spark
Management identified diagnostics as the competitive segment and provided outlook.
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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 13% organic growth and quantified 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.
Partial answer
Medium priority
GMV mix in digital business and impact on margins.
Asked by Neha Manpuria, Bank of America
Management declined to give exact breakup but provided a range for pharmacy share.
no exact breakup givenonly approximate percentage
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Question
On the GMV growth in the digital business, could we get a breakup of what would be the split from GMV in pharmacy, in insurance, new businesses? How should we see this, let's say, when the business achieves break even?
Madhivanan Balakrishnan, CEO, Apollo HealthCo
Let me not give the exact breakup, but typically, the pharmacy business constitutes the biggest chunk out of this. ... 55%-60% of the total pool comes from the pharmacy.
Answered
High priority
Lower limit on ALOS and plan to improve volume growth and occupancy.
Asked by Shyam Srinivasan, Goldman Sachs
Management gave a target occupancy of 70% 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.
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.
Answered
High priority
Why hospital EBITDA margin flat despite strong ARPP growth and cost cutting plan.
Asked by Kunal Dhamesha, Macquarie
Management explained the cost increase due to hiring and provided a cost cutting plan of INR 120 crore.
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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?
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.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Platform revenue growing at 30% YoY | 30% | 13% | Overstated vs filing |
| H1 FY26 turnover INR 9,200 crore, EBITDA 4.4% | ₹9,200 cr | ₹6,304 cr | Overstated vs filing |
| Q4 FY27 revenue run rate target INR 25,000 crore with 7% EBITDA | ₹25,000 cr | ₹6,304 cr | Overstated vs filing |
| Hospital EBITDA margin 24.6% in Q2 | 24.6% | 15% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.