Apollo Hospitals Enterprise Limited reported robust financial results for the third quarter of FY26, with consolidated revenue growing 17% YoY to ₹64,774 million and EBITDA rising 27% YoY to ₹9,653 million. The Healthcare Services segment led with 14% revenue growth, while Apollo HealthCo saw significant acceleration, driven by 20% revenue growth in the Offline Pharmacy Distribution business. The company also detailed expansion plans across its hospital network, aiming to add approximately 3,600 census beds over the next five years.
Consolidated Financial Performance: Q3 FY26
Apollo Hospitals Enterprise Limited announced a strong operational and financial performance for the quarter ended December 31, 2025. Consolidated results showed significant growth:
- Total Revenues: Grew by 17% YoY to ₹64,774 million (up from ₹55,269 million in Q3 FY25).
- EBITDA (Post Ind AS 116): Increased by 27% YoY to ₹9,653 million (up from ₹7,615 million in Q3 FY25), yielding a margin of 14.9%.
- PAT (Reported): Grew substantially by 35% YoY to ₹5,023 million (up from ₹3,723 million in Q3 FY25).
- YTD Dec 25 PAT: Grew 34% YoY to ₹14,123 million.
The company noted an exceptional item impacting PAT related to a provision for gratuity and leave liabilities due to the New Labour Code effective November 21, 2025.
Healthcare Services (Hospitals) Deep Dive
The core hospital business demonstrated solid growth driven by clinical intensity and pricing power:
- Revenue: Increased by 14% YoY to ₹31,832 million in Q3 FY26.
- Volume and Pricing: Inpatient volume grew 4%, supported by a 3% price increase and a 7% case mix improvement.
- Patient Metrics: Average Revenue Per In-patient (ARPP) grew 11% YoY to ₹180,917. Occupancy stood strong at 67%.
- Profitability: EBITDA grew 18% YoY to ₹7,898 million, with the margin expanding by 73 bps to 24.8%.
- ROCE: For YTD Dec 25, ROCE for the segment stood at an impressive 29.5%.
Hospital Expansion Plans
Apollo plans to add 4,444 total beds (3,630 census beds) through projects expected to commission between FY26 and FY30. The total project cost is estimated at ~₹8,200 crore, with a balance spend of approximately ~₹5,400 crore.
Apollo HealthCo (Digital Health & Pharmacy Distribution)
Apollo HealthCo showed accelerated growth, with total revenue growing 20% YoY for Q3 FY26:
- Total HealthCo Revenue: Grew 20% YoY to ₹28,274 million.
- Offline Pharmacy Distribution (PD): Revenue grew 21% YoY to ₹25,114 million, with EBITDA margin stabilizing at 7.8%.
- Online Platform (Apollo 24/7): Platform GMV saw 28% YoY growth, reaching ₹5,250 million in Q3 FY26. The digital cash loss narrowed significantly to ₹292 million, the lowest recorded.
- YTD Dec 25: HealthCo PAT grew 242% to ₹2,368 million.
AHLL: Diagnostics & Retail Health (Retail Health)
AHLL demonstrated the highest growth rate across revenue and EBITDA:
- Revenue Growth: Grew by 20% YoY in Q3 FY26, reaching ₹4,668 million.
- EBITDA Growth: Increased by 39% YoY to ₹476 million, improving the margin to 10.2%.
- Network Expansion: Added 12 Satellite Labs and 239 Collection Centers.
- Wellness Segment: Grew approximately 32% YoY in 9M FY26.
Specialty Care Highlights (Within AHLL)
Specialty Care (Spectra, Cradle, Fertility) revenue saw growth between 5% and 8% YoY in 9M FY26.
Strategic Composite Scheme Update
The Board approved a composite scheme on June 30, 2025, involving a demerger of Omnichannel Pharmacy Distribution (OCP) and Apollo 24|7, followed by amalgamations. The resulting entity, NewCo (AHL + Telehealth + Keimed), is expected to become an ‘Indian Owned and Controlled Company’ (IOCC) and seek listing by Q4 FY27.
The proposed shareholding structure shows AHEL Shareholders having an effective combined holding of 59.6% in the resultant NewCo.
Forward Guidance
The company anticipates achieving an INR 250 billion run rate annualized revenue in Q4 FY27, targeting a 7% EBITDA margin for the combined entity.
Source: BSE
