Apollo Hospitals Targets 13-14% Revenue Growth In FY26, CAGR Of 15% Over Four Years

Apollo Hospitals Enterprise Ltd. is targeting a revenue growth of 13-14% in FY26 from existing hospitals, according to its Managing Director, Suneeta Reddy. This will be underpinned by a multi-pronged strategy focused on volume-driven growth, margin improvement and strategic expansions.

“For the current fiscal year, we are looking at about 13% to 14% growth coming from existing hospitals. Volume growth will give us operating leverage as well. You can look at another 10% growth coming in the next four years, which will come from new capacity additions. So, a CAGR (compound annual growth rate) of about 15%,” she said during a conversation with NDTV Profit on Wednesday.

Regarding volumes and margins, she said, “I think the most important thing is that we will continue to focus on volumes. As we focus on volumes, we will see that operating leverage improves and therefore EBITDA margins improve.”

Apollo Hospitals Enterprise is aggressively expanding its footprint, with plans to add 4,400 beds over the next three to four years through a mix of acquisitions, brownfield and greenfield projects. 

The company is aiming to increase its market share in key markets.  “We are very focused on gaining market share in all of the markets we are present in,” she said.

Key focus areas include strengthening its presence in the west and north of India, with new hospitals planned for Pune and Gurugram. In Bengaluru, the company will add another 700 beds, starting with 150 beds in the third quarter of this financial year.

The company is progressing with the restructuring of Apollo Healthco, which has been approved by the Board of Directors and is expected to be listed as a separate entity within two years. Apollo HealthCo Ltd. is engaged in building India’s largest omnichannel healthcare platform.

“And when this company gets listed with the integration of the backend, which is Keimed, you will see huge value uplift where every Apollo shareholder will get 1.96 shares of Apollo HealthCo,” she added.

Addressing competition in the e-pharmacy space, Reddy noted that Apollo has established a 19-minute delivery platform in urban centres, insulating it from quick-commerce rivals in the FMCG segment.

“So, in a way, they have ring-fenced their consumers,” she emphasised.