'Apollo Hospitals Plans To Add 1,600 Beds In Next 14 Months': MD Suneeta Reddy
Apollo Hospitals has added 148 pharmacy stores in FY26. The MD is hopeful of a double-digit margin from the pharmacy business over the next three to four years.
Healthcare giant Apollo Hospitals Enterprise targets adding 1,600 beds over the next 14 months. It will boost the revenue growth of the hospital business to 18% over three years, according to the company’s Managing Director (MD), Suneeta Reddy.
“We will open out the new 1,600 beds in the next 14 months and when those beds come online, you will see the existing growing at 12% and the new slowly adding up to 5% (of revenue). So, it will move to 18% over a period of 3 years,” she said during a conversation with NDTV Profit on Friday.
The company has added 148 pharmacy stores in FY26. The MD is hopeful of a double-digit margin from the pharmacy business over the next three to four years.
“We've added 148 new stores this year, which again, won't contribute to margin in the present. But in the future, all these additions will start contributing to margins. You can look at getting closer to double-digit when the pharmacy matures over a three to four-year period,” the top executive underlined.
This growth will be fuelled by a significant capital expenditure plan. The company has a balance capex of Rs 5,000 crore, which is a part of a broader plan to add 4,300 beds.
“So, if you look at total capex, we planned to add 4,300 beds and at a capex of Rs 8,300 crore, we have a balance CAPEX of Rs 5,000 crore,” she said.
Apollo Hospitals Enterprise is targeting an improvement in its Ebitda margins to 25%, driven by a combination of better case mix, operating leverage, and cost efficiencies, according to the Managing Director.
“We are pushing towards 25% and we will do this by a combination of case mix as well as operating leverage. We will not expect an increase in average revenue per patient. But with cost as a lever and improved utilisation, we should be able to get larger volumes. We will definitely get improved margins at around 25%,” she said.
Shares of Apollo Hospitals Enterprise closed at Rs 7,642 apiece, down 1.8%, on the NSE, while the benchmark Nifty50 settled nearly flat at 25,492.3, down 0.07%.
