Apollo Hospitals to deepen presence in Bengaluru, Hyderabad
The hospital chain plans to add over 4,300 beds over a period three to four years with a capital outlay of over ₹8,000 crore
Apollo Hospitals Enterprise Ltd is increasing its penetration in Bengaluru and Hyderabad through a mix of greenfield and brownfield projects, as it embarks on a large-scale expansion plan in FY26.
The hospital chain has approved a brownfield expansion of 160 beds across Jubilee Hills and Secunderabad facilities in Hyderabad, as well as acquired 2.53-acre land in Sarjapur, Bengaluru for a 500-bed greenfield hospital. These are expected to be operational in 3-4 years.
It has also acquired an existing 200-bed hospital in Sarjapur, which will be operational in the next two quarters, the company said. This is in addition to the chain’s planned expansion in Gurugram, Hyderabad, Kolkata and Pune, which it is commencing in FY26.
“Over the next one year, we will be having quite a bit of expansions coming up," chief financial officer Krishnan Akhileswaran told Mint.
The chain will be adding over 4,300 beds over three to four years beginning FY26, with a total capital outlay of over ₹8,000 crore.
In the fourth quarter ended March, the company’s consolidated revenues rose 13% year-on-year to ₹5,592 crore. Consolidated ebitda increased 20% over a year earlier to ₹770 crore, while profit after tax (PAT) rose 54% to ₹390 crore.
For FY25, Apollo’s consolidated revenues rose 14% on-year to ₹21,794 crore, while ebitda grew 26% to ₹3,022 crore. PAT increased 61% to ₹1,446 crore.
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Hospitals business grows
The company’s hospitals business grew 10% year-on-year in Q4 to ₹2,822 crore, while ebitda grew 16% to ₹686.3 crore. The business reported an ebitda margin of 24.3%.
“All of this is clearly representative of the operating leverage that we have from the same facilities that we are operating out of. No new facilities added as yet," Krishnan said. The growth from the company’s bed additions starting this year will be significantly seen in FY27, he said.
The company saw a dip in volumes due to the loss of patients from Bangladesh. However, the current base is the lowest it can get to, Krishan said.
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The company expects Apollo 24/7 to be profitable by the end of FY26. It is focusing on 20% growth for Apollo Healthco, its digital healthcare and omnichannel pharmacy arm in FY26.
“The focus [for Apollo Healthco] is more on revenue and profitability," Krishnan said.
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