- Apollo Hospitals reported 17% consolidated revenue growth to Rs 6,477 crore in the quarter
- EBITDA increased 27% to Rs 965 crore, and profit rose 35% to Rs 502 crore
- Hospital volumes grew 5%, pricing rose 5%, with complex procedures boosting revenue
Apollo Hospitals Ltd delivered a quarter "as per plan," Executive Vice Chairperson Suneeta Reddy said, even as she acknowledged there is always room to push harder. The company reported 17% consolidated revenue growth to Rs 6,477 crore. EBITDA rose 27% to Rs 965 crore, while profit grew 35% to Rs 502 crore, broadly in line with Street expectations.
Growth was driven by a mix of volume, pricing and case complexity. Volumes rose about 5%, pricing increased 5%, while a higher share of complex procedures - including robotics and transplants - lifted average revenue per patient. Cardiac care grew 20%, oncology 18% and gastroenterology 17%, reinforcing Apollo's focus on high-end specialties.
Looking ahead, Reddy said capacity additions will help sustain hospital revenue growth in the 17-18% range.
Capacity Expansion to Lift Revenue
Existing hospitals are delivering 13-14% growth, while new bed additions are expected to contribute an incremental 3-4%. While new facilities may take up to 24 months for margins to stabilise, they will add meaningful revenue and volume over time.
"We manage the system very efficiently," she noted, adding that complexity-driven growth is helping build a strong clinical differentiator.
Diagnostics and Pharmacy Momentum
Apollo's pharmacy arm, Apollo HealthCo, continues to scale, posting 20% growth with revenue of Rs 2,827 crore. With over 7,000 pharmacies and 185 new stores added, it is now India's largest pharmacy network, processing over 38,000 transactions daily across online and offline channels.
Meanwhile, Apollo Health and Lifestyle Ltd (AHLL) reported revenue of Rs 467 crore. The focus now is on upgrading its diagnostics network of 2,457 centres by expanding central labs and high-end genetic testing. Margins, currently at 10.8%, could rise to 25-30% as the test mix improves.
Preventive Healthcare: The Rs 2,000 Crore Bet
The next strategic lever is preventive healthcare. Reddy outlined a target of building a Rs 2,000 crore preventive health business, anchored in rising demand from elderly patients, millennials with lifestyle diseases, and Gen Z consumers facing stress-related conditions.
She emphasised that volumes already exist and the opportunity lies in formalising and scaling preventive offerings, which could account for roughly 10% of Apollo's patient base.
Reddy welcomed policy dialogue with the US and EU and the Union Budget's proposal to create five medical tourism hubs. India can deliver world-class care at a fraction of global costs, she said, making inbound medical travel a strong foreign exchange opportunity.
On long-term growth, Reddy was unequivocal: with only about 70,000 corporate hospital beds available nationally and rising affordability across Tier 2 cities, the sector's growth runway could extend for two decades.
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