Apollo Hospitals reports a 21% rise in revenue for Q1 FY27, driven by higher hospital demand and increased pricing, as the group progresses towards its digital business demerger and expansion goals.
Apollo Hospitals Enterprise said its first-quarter performance for fiscal 2027 was lifted by stronger hospital demand, firmer pricing and a sharp narrowing in digital losses, as the group moved closer to separating its consumer health arm from the core hospital business.
In the quarter ended June, consolidated revenue rose 21% from a year earlier to ₹7,043 crore, while earnings before interest, tax, depreciation and amortisation increased 28% and the margin improved to 15.5% from 14.6%, according to the company’s earnings presentation and related reporting by GuruFocus. Healthcare Services remained the main engine, with revenue up 22% as volumes increased 11%, pricing added 4% and case mix contributed 3%. Established hospitals posted an EBITDA margin of 25.9%, underlining the benefit of operating leverage at the mature end of the network.
Apollo HealthCo, which houses the group’s pharmacy and digital businesses, continued to reduce losses. GuruFocus said the digital cash loss narrowed to ₹10 crore from ₹49 crore a year earlier, while profit after tax for the broader group rose to ₹101 crore. Company executives said the core pharmacy, diagnostics and consultation businesses were growing at healthy rates, while the insurance business remained in investment mode. They also said the unit was on track to reach breakeven by the end of the September quarter, even as setbacks in its field sales model delayed progress on the insurance side.
Apollo Health and Lifestyle Limited also improved, with EBITDA margins rising to 11.8% from 9.2%, helped by 31% diagnostics revenue growth. International patient revenue climbed 26%, as volumes from Bangladesh normalised and higher-acuity cases returned, while the company said complex oncology, neurology, gastroenterology and transplant work now accounts for 62% of inpatient revenue. Apollo also said new hospitals are still weighing on performance, with losses expected to peak at ₹150 crore this year, though its Financial District hospital in Hyderabad is expected to break even in coming quarters.
The results come as Apollo continues to balance expansion with capital discipline. Sahi reported that the company is targeting ₹25,000 crore in HealthCo revenue by the fourth quarter of fiscal 2027, with a demerger and listing of the digital and pharmacy business expected in that period after an NCLT order in May. The group has also said it plans to add 1,500 beds over the next 12 to 18 months, while funding growth largely through internal accruals.
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