Informist, Tuesday, Aug. 12, 2025

By Narayana Krishna

HYDERABAD - Healthy growth across business segments led by hospitals helped Apollo Hospitals Enterprise Ltd. report better-than-expected earnings for the June quarter. The Chennai-based healthcare services provider reported a consolidated net profit of INR 4.33 billion, up nearly 42% on year, while its revenue increased 15% on year to INR 58.42 billion. On a trailing basis, the company's net profit increased 11% and revenue was up 4.5%.

The net profit and revenue figures are higher than analysts' expectations on a year-on-year basis, but the net profit growth was the lowest in the last six quarters. Analysts had estimated Apollo Hospitals' June quarter consolidated net profit at INR 3.7 billion on a revenue of INR 57.2 billion.

Apollo Hospitals reported robust sales growth in its hospitals, pharmacy, diagnostics and clinics businesses for the June quarter, helping the company beat the estimates.

Apollo Hospitals reported 11% on-year growth in its hospitals business revenue to INR 29.74 billion and its diagnostics services arm, Apollo Health and Lifestyle Ltd., reported 19% growth in revenues to INR 4.4 billion for the June quarter. The retail pharmacy and distribution business arm, Apollo HealthCo Ltd., which is set to demerge from the company, posted 19% on-year revenue growth to INR 24.72 billion. The gross merchandise value on Apollo HealthCo's controlled digital platform Apollo 24/7 touched INR 6.82 billion, up 23% on year.

Though the earnings growth for the June quarter was ahead of projections, Apollo Hospitals' operating bed occupancy rate declined to 65% from 68% a year ago, mainly on account of a fall in international patients including those from Bangladesh. As on Jun. 30, the company has 8,030 operating beds across its network. However, the in-patient volumes rose 3% on year, while revenue from in-patients were up 9% on year. The average revenue per in-patient was at INR 172,282 for the quarter.

Apollo HealthCo, the holding company of Apollo Pharmacy's retail chain, added 116 new stores during the quarter, taking the total store count to 6,742 stores as on Jun. 30.

Apollo Hospitals reported a consolidated earnings before interest, tax, depreciation and amortisation, or EBITDA, of INR 8.52 billion, up 26% on year. Analysts had estimated the company's June quarter EBITDA at INR 7.9 billion. The EBITDA margin for the quarter improved to 14.6% from 13.3% a year ago.

The hospitals business EBITDA improved by 15% on year to INR 7.18 billon in Apr-Jun, while Apollo Health & Lifestyle EBITDA was up 31% at INR 400 million. Apollo HealthCo reported an EBITDA of INR 940 million for the quarter.

For THE June quarter, Apollo Hospitals reported nearly 13% on-year rise in its total expenses to INR 53.13 billion. Other expenses for the quarter were up nearly 9% on year at INR 12.3 billion. While the company managed to cut its finance cost by nearly 7% on year to INR 1.08 billion, its employee expenses were up by over 8% on year at INR 7.13 billion.

GROWTH OUTLOOK

Apollo Hospitals is expecting double-digit growth in revenues for 2025-26 (Apr-Mar), led by new hospitals in Patna and Jaipur, the company said in a press release. The company is on track to add 4,300 additional beds to its capacity in the next five years with an estimated investment of over INR 76 billion. The first phase of 2,000 beds addition has already started, the company said.

The demerger of Apollo HealthCo, which was announced during the June quarter, is in implementation stage and once implemented, will enable company-focused capital allocation and sharper growth plans.

On Tuesday, shares of Apollo Hospitals ended at INR 7,236.50 on the National Stock Exchange, down 0.3% from its previous close. The company announced its earnings post market hours. End

Edited by Tanima Banerjee

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