Apollo Hospitals Enterprise Ltd3:22 am IST
Apollo Hospitals Q1 FY27: Revenue up 21%, EBITDA up 28%, PAT up 34%, HealthCo composite scheme outlined
Business overview
- Core business spans Healthcare Services, Diagnostics & AHLL, and Digital Health & Pharmacy Distribution via Apollo HealthCo.
- AHLL's Mother & Child and Fertility units to combine into a major maternity platform.
- Apollo HealthCo is the omni-channel platform integrating digital and offline healthcare services.
Operational highlights
- Commissioned five new hospitals in the last two quarters.
- Total census beds after expansion ~14,100.
- Current beds at Q1FY27: 9,857.
- Expansion plan adds about 1,000 census beds; total project cost ₹11,150 cr, ₹7,500 cr remaining.
- Geographic expansion across Pune, Delhi, Hyderabad, Kolkata, and other Tier-1/Tier-2 cities.
- Of 1,000 beds, 380 operational; 620 to be activated in 12–18 months.
Financial performance
- Consolidated revenue ₹70,435 mn; YoY growth 21%.
- Consolidated EBITDA ₹10,920 mn; margin 15.5%.
- PAT ₹5,805 mn; growth 34%.
- ROCE 28.5% in Q1FY27.
- Hospital segment occupancy 70% established units; average revenue per in-patient ₹186,630.
Capital structure & liquidity
- Cash and equivalents ₹23,560 mn; liquid funds ₹18,555 mn.
- Consolidated net debt ₹7,481 mn.
Strategic priorities & outlook
- Composite scheme approved; demerger of OCP and Apollo 24x7 into NewCo; amalgamation with Keimed.
- Listing expected by Q4 FY27.
- Target run-rate revenue ₹250 bn; EBITDA margin 6.5–7.0%.
- Plan bolt-on acquisitions in Tier-1 cities.
Risks & mitigation
- Execution risk in phased 1,000-bed expansion.
- Integration risk from HealthCo demerger and amalgamation.
- One-time network investment impacting margins.
Governance & leadership
- Shareholder approvals secured for composite scheme; NewCo listing.
- NewCo to be Indian-owned and controlled (IOCC) post approvals.
- Automatic listing of NewCo; AHEL shareholders directly participate.
- Post-merger listing expected by Q4 FY27.