Chennai: Apollo Hospitals delivered a steady performance in Q2FY26, with robust traction across its core Hospitals (HCS) segment, rising momentum in HealthCo, and continued improvement in its digital operations. The management, in its post-results concall, highlighted strong specialty growth, disciplined cost control, and improving occupancy as key drivers for the quarter.
In the HCS segment, revenue stood at ₹3,169 cr, marking a 9% YoY rise, supported by a 14% growth in high-value specialties. Occupancy moderated to 69% due to seasonal trends, but metros crossed 70% in Oct, with a push toward 80%+ going ahead. ARPP grew 9% YoY, driven by a richer case-mix. EBITDA for HCS came in at ₹781 cr, with a margin of 24.6%, while the base network continued to deliver margins above 25%. The Bangladesh slowdown impacted revenues by about 1%, though nearly 60% of the flow recovered in Oct. ROCE remained strong at 30%+, with the ongoing cost-out program achieving ₹60/120 cr so far.
HealthCo, covering retail and digital, reported revenue of ₹2,661 cr, up 17% YoY, with EBITDA at ₹181 cr (+19%). Apollo 24/7 continued to scale, reaching 44 mn users, with GMV rising 16%. Digital losses reduced to ₹71 cr, with the company reaffirming breakeven by FY26-end and a long-term EBITDA margin goal of 7% by Q4FY27.
AHLL posted revenue of ₹474 cr (+17%) and EBITDA of ₹50 cr, with margins at 11%.
On expansion, multiple new hospitals are lined up across Q3/Q4 FY26 and Q1 FY27. These will be a near-term drag of ~₹150 cr EBITDA in FY27, but management expects breakeven within 12 months of launch.
The company guided for 13% growth in hospitals from existing beds and 5% incremental from new capacity. Margins are expected to expand further, supported by better case-mix and improving occupancy.
Overall, Apollo Hospitals remains confident of sustaining growth momentum across verticals while tightening its digital profitability roadmap.
