After largely stabilising its online pharmacy and diagnostics business, healthcare services major, Apollo Hospitals is all set to launch three new facilities for its flagship hospitals business in FY26. These include facilities at Kolkata, Delhi and Pune largely before Q3 or early Q4 of FY26, the management said during a post-earnings investor call.
"Following the launch of these three facilities, Apollo will also be hoping to open its facilities in Gurgaon and Hyderabad towards the fag end of FY26. Given our existing presence in these regions and Apollo’s strong brand name, we expect to achieve breakeven in these facilities quickly," said Suneeta Reddy, Managing Director of Apollo Hospitals.
Altogether, the management sees huge revenue potential in these five facilities. The Gurgaon, Pune and Kolkata facilities will be acquired as a hospital asset, while the Hyderabad unit will follow an asset-light greenfield expansion model. On the other hand, the cancer hospital in Delhi will be a brownfield expansion.
Previously, Apollo had announced plans to commission six projects in FY26, which include hospital asset acquisitions in Pune, Kolkata, and Gurgaon, brownfield expansions in Delhi and Mysore, and a greenfield expansion in Hyderabad.
To support these expansions, Apollo Hospitals has earmarked a total balance project cost of Rs 1,700 crore, with Rs 1,300 crore planned for expenditure in the next fiscal and the remaining allocated for the following year. While all six projects are scheduled for commissioning in FY26, some will be phased over a two-year period to manage costs and minimize EBITDA impact.
Beyond FY26, Apollo has outlined a further expansion plan involving four new greenfield projects in Chennai, Varanasi, and Mumbai, along with a brownfield expansion in Lucknow. This mega expansion, with a capital outlay of Rs 4,400 crore, will add 3,512 beds to Apollo's capacity over the next three to four years.
Apollo's flagship hospitals business reported a strong Q3 performance, with revenue growing 13 percent year-on-year to Rs 2,785 crore, and net profit rising 21 percent to Rs 348.3 crore. Operating metrics remained robust, with an EBITDA margin of 24.1 percent, supported by improved occupancy rates, higher Average Revenue Per Occupied Bed (ARPOB), and strong patient flows. Occupancy increased to 68 percent from 66 percent a year ago, while ARPOB grew 4 percent to Rs 60,000, driving the vertical's solid operational performance.
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