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-Apollo Hospitals Reports 21% Revenue Growth to INR 7,043 Crore in Q1 FY27; Net Profit Rises 34% to INR 581 Crore
-Healthcare Services, Apollo HealthCo and AHLL Deliver Double-Digit Revenue Growth; Digital Health Business Nears Breakeven
The Print Times
Apollo Hospitals Enterprise Limited reported strong financial performance in the first quarter of FY27, with consolidated revenue increasing 21% year-on-year to INR 7,043 crore and consolidated EBITDA rising 28% to INR 1,092 crore. Consolidated profit after tax (PAT) grew 34% year-on-year to INR 581 crore.
Addressing the company’s Q1 FY27 earnings conference call, Suneeta Reddy, Managing Director of Apollo Hospitals Enterprise Limited, said the company had started the financial year on a strong footing, carrying forward the momentum of the previous year. She highlighted double-digit revenue growth across all three business verticals—Healthcare Services, Apollo HealthCo and Apollo Health and Lifestyle Limited (AHLL)—alongside continued improvement in profitability.
“The performance in Q1 reflects sustained demand across our integrated healthcare platform, continued traction in high-acuity specialties and execution across all three businesses,” Reddy said.
Healthcare Services Revenue Rises 22%
Apollo Hospitals’ Healthcare Services business reported revenue of INR 3,567 crore, registering 22% year-on-year growth. Established hospitals generated revenue of INR 3,475 crore, up 18%, while new hospitals contributed INR 92 crore during the quarter.
Growth was driven by 11% volume growth, a 4% contribution from pricing and a 3% contribution from clinical case mix, bed mix and payer mix. Total inpatient volumes increased 13% year-on-year, with occupancy at 70%. Average revenue per patient rose 8% to INR 186,630.
Insurance and self-pay continued to account for the core of the payer mix, together contributing 83% of overall inpatient net revenue. Insurance revenue increased 25%, while self-pay revenue grew 16%. Revenue from international patients also registered strong growth of 26% compared with the corresponding quarter of the previous year.
Reddy said volume growth was broad-based across the hospital network and specialties. The company continued to strengthen its focus on high-acuity specialties, including cardiac care, oncology, transplantation, neurosciences, gastroenterology and orthopaedics.
Volumes in these specialties increased 15%, while revenue grew 24% year-on-year. These specialties now account for 62% of inpatient net revenue, reflecting Apollo’s focus on complex tertiary and coronary care.
EBITDA Margins Improve in Established Hospitals
Healthcare Services EBITDA increased 20% year-on-year to INR 862 crore, with the business reporting an EBITDA margin of 24.2%. Established hospitals achieved an EBITDA margin of 25.9%.
The improvement was supported by higher operating leverage, a favourable clinical case mix and ongoing productivity optimisation initiatives. Reddy said the company sees further scope for structural cost savings to support margins during the next phase of capacity expansion.
New hospitals reported an EBITDA loss of INR 38 crore, reflecting initial ramp-up costs associated with recently commissioned operational beds. Healthcare Services return on capital employed (ROCE) stood at 28.5% during the quarter, supported by performance across metropolitan, Tier 1 and Tier 2 markets.
Apollo continued to advance its hospital capacity expansion programme. Its 180-bed facility in Sarjapur, Bengaluru, became operational during the quarter, while the Gurgaon facility remains on track for operationalisation in Q3 FY27.
The company has outlined its expansion plans through FY31, which are expected to increase its census bed capacity to 14,100 beds. The expansion will focus on the North and West, alongside brownfield expansions at existing facilities.
Reddy said the company expects to fund the expansion largely through internal accruals and maintains a comfortable debt position on its balance sheet. Apollo will also focus on ensuring that new units perform in line with expectations and that their losses remain within guided limits.
Apollo HealthCo Revenue Grows 20%; Digital Business Nears Breakeven
Apollo HealthCo reported revenue of INR 2,977 crore in Q1 FY27, registering 20% year-on-year growth. EBITDA increased to INR 171 crore from INR 94 crore in Q1 FY26, demonstrating improved profitability across its integrated retail and digital healthcare operations.
The digital business continued to make progress on unit economics, reducing its cash loss to INR 10 crore during the quarter, compared with INR 49 crore in Q1 FY26 and INR 16 crore in Q4 FY26. The digital vertical is expected to achieve breakeven in the upcoming quarter.
Platform gross merchandise value (GMV) stood at INR 535 crore, up 23% year-on-year. Digital revenue increased 24% on a like-for-like basis. Apollo HealthCo reported PAT of INR 101 crore, compared with INR 57 crore in the corresponding period last year.
The company also said the proposed strategic restructuring of its omnichannel pharmacy and digital health business remains on track for completion within the disclosed timelines, with regulatory processes progressing as planned and the scheme expected to conclude during the current financial year.
AHLL Revenue Increases 15%; Diagnostics Records 31% Growth
Apollo Health and Lifestyle Limited (AHLL) delivered revenue growth of 15% year-on-year to INR 499 crore. EBITDA increased 46% to INR 59 crore, while the EBITDA margin improved to 11.8% from 9.2% in Q1 FY26.
The business nearly reached profitability, with its PAT loss narrowing to INR 1 crore from INR 8 crore in the corresponding quarter last year.
Within AHLL, the diagnostics vertical recorded 31% revenue growth, accompanied by a healthy improvement in margins. The business is progressing towards its next milestone of INR 1,000 crore in annualised revenue.
Apollo Highlights Need for Higher Healthcare Investment
Beyond its financial performance, Reddy shared the company’s views on the recommendations of the Parliamentary Committee, emphasising the importance of making quality healthcare affordable and accessible while maintaining a sustainable investment environment for healthcare providers.
She said Apollo Hospitals, with four decades of experience in the healthcare ecosystem, supports the Government’s objectives of improving clinical governance, increasing price transparency, strengthening patient communication and establishing effective grievance redressal mechanisms.
Reddy also welcomed the Government’s commitment to increasing healthcare expenditure as a share of India’s GDP, while highlighting the need for continued investment in healthcare infrastructure, innovation and research.
“We have reversed the trends of Indians travelling abroad for good care. Today, patients from 150 countries come to us because we deliver world-class outcomes at one tenth of the international cost,” she said.
She noted that the Government had recognised the cost associated with high-quality healthcare and outlined measures such as zero-rated GST and reductions in customs duties.
According to Reddy, India’s healthcare sector continues to benefit from strong structural demand, with the country still requiring an additional 2.4 million high-quality hospital beds. She emphasised that the private sector would need to invest capital to help meet this requirement.
She described healthcare as a core component of a developing economy, contributing to infrastructure development, employment generation, foreign exchange earnings and the creation of a healthy and productive workforce.
Apollo Calls for Sustainable Pricing and Investment Framework
Reddy stressed the importance of building a vibrant ecosystem for innovation, research and academic development in India. She also expressed concern that excessive price controls on private healthcare enterprises could discourage investment in capacity creation and innovation.
She argued that a uniform pricing approach would not adequately address the complexity of healthcare delivery, as healthcare costs extend beyond a straightforward calculation of input expenses.
The company called for continued engagement among healthcare providers, insurance companies and the Government to develop a framework that balances affordability and accessibility for patients with the financial sustainability of healthcare providers.
Reddy said such a framework should build patient trust, remain attractive for investment and enable the healthcare sector to meet the evolving needs of India’s next generation.
With double-digit revenue growth across its three business verticals, improving profitability and an ongoing hospital expansion programme, Apollo Hospitals is continuing to strengthen its integrated healthcare platform while focusing on operational efficiency, digital business profitability and long-term capacity creation.
