Apollo Hospitals Takes Rs 100-Crore Hit On Middle-East Conflict; HealthCo Demerger By Year-End

Apollo Hospitals Enterprise Ltd. expects a Rs 100 crore impact from the ongoing geopolitical situation in the Middle East, even as it presses ahead with a major expansion drive and the planned demerger and listing of its pharmacy and digital health business, Dr. Sunita Reddy, Managing Director of Apollo Hospitals Enterprise Ltd told NDTV Profit.

Reddy said the company is currently absorbing higher costs arising from inflation and supply-chain pressures linked to the Middle East situation. Despite the cost pressures, Apollo remains in expansion mode. The company plans to add another 2,000 beds across its hospital network and is broadening its healthcare delivery model beyond traditional hospitals.

Reddy said Apollo is increasingly focusing on smaller nursing homes, personal home-care services and community-based healthcare offerings as patient care gradually shifts closer to where people live.

"The future of healthcare is moving out of hospitals into people's homes and communities," she said. Apollo is also integrating artificial intelligence, insurance and digital platforms across its healthcare ecosystem to improve patient outcomes and enhance operational efficiency.

On the corporate restructuring front, Reddy said the proposed demerger of Apollo HealthCo is expected to be completed before the end of calendar year 2026. The company continues to target a public listing of the business in 2027.

Apollo HealthCo houses the group's pharmacy distribution, digital health and omnichannel healthcare businesses and is seen as a key growth engine for the Apollo ecosystem. "The demerger will be completed before the end of the year," Reddy said.

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