Oncology emerges as top revenue and profitability driver for India’s leading hospital chains

Oncology

India’s top hospital chains are witnessing a structural shift in their revenue mix, with oncology emerging as the fastest-growing and most profitable specialty. Once a niche segment, cancer care is now central to the strategic plans of Max Healthcare, Apollo Hospitals, and Fortis Healthcare, among others, driven by rising incidence, improved diagnostics, and high-complexity treatments that command premium pricing.

“Oncology clearly is growing faster for us,” said Abhay Soi, Chairman and MD of Max Healthcare. “We are making significant investments in radiation oncology infrastructure, especially in Lucknow and Dwarka, where new bunkers are being commissioned,” he said in a recent interview to Moneycontrol.

At Max, oncology now contributes nearly 25 percent of inpatient revenue, making it the largest therapeutic segment.

Fortis Healthcare reported 28 percent year-on-year growth in oncology revenue in Q1 FY26, with the segment accounting for 16.4 percent of total hospital income. CEO Dr. Ashutosh Raghuvanshi of Fortis in recent earnings call said that when accounting for oncology-related treatments classified under other specialties, the total revenue contribution is estimated to be around 19 percent to 20 percent, even surpassing cardiology — its largest therapeutic segment — by revenue.

Raghuvanshi expects the momentum to continue as Fortis expands oncology setups across its network.

“We expect that kind of growth will continue for another few years,” Raghuvanshi said. “We are adding oncology setups to hospitals where it is not there at the moment,” he added.

Apollo Hospitals, which pioneered proton therapy in India, sees oncology as both a clinical and commercial imperative. Apollo operates 13 Comprehensive Cancer Centres (CCCs) across 12 cities, equipped with 23–25 LINACs for advanced radiation therapy.

“In terms of why is every hospital chasing it (oncology) ..because the volumes are truly large. It's growing at 15 to 18 percent. Environmental stresses are adding to this. And the whole thing about the morbidity can be prevented,” told Suneeta Reddy, Managing Director of Apollo Hospitals to Moneycontrol recently. Oncology is the second largest revenue contributor for Apollo with 17 percent share to its healthcare services business in Q1FY26.

“We are helping save lives. We invest in high-end technology. We were able to get the best doctors, able to publish clinical research in the Oncology space and really improve survivorship for patients,” she said.

“It fits in very well with Apollo’s ethos of having some purpose before we make investments and grow certain segments,” she added.

Hospitals are also investing heavily in infrastructure. Cancer care is more capital intensive than other segments, as it requires expensive radiation therapy, robotic surgery machines, and advanced diagnostics.

HCG reported a 17 percent YoY growth in oncology revenue in Q1 FY26, with LINAC (radiation therapy) utilization rising to 69 percent, reflecting strong demand.

Why is oncology surging?

The growth in oncology is underpinned by factors such as rising cancer incidence, improved screening, insurance penetration, and the inherently high revenue per patient. Cancer care typically involves multidisciplinary teams, advanced diagnostics, and long treatment cycles—making it a high-margin specialty. Treatments such as chemotherapy, radiation therapy, and robotic surgeries are highly specialized and technology-intensive, which translates into significantly higher revenue per patient or Average Revenue Per Occupied Bed (ARPOB).

According to the National Cancer Registry Programme (NCRP) Report 2020, published by the ICMR and the National Centre for Disease Informatics and Research in Bengaluru, the number of cancer cases in 2020 was estimated to be 13.9 lakhs and it is projected to increase to 15.7 lakhs by 2025. The country’s cancer burden is growing at a compound annual rate of 6.8 percent, and experts estimate that actual incidence may be 1.5 to 3 times higher than reported figures due to underdiagnosis and limited registry coverage.

Head and neck, gastrointestinal and lung contributes to 50 percent incidences in males and breast, cervix uteri and gastrointestinal organs in case of females. Head and neck, prostate and ovarian cancer are growing at a faster pace than other cancers.

As insurance penetration improves through both private and government schemes, more patients can afford advanced oncology procedures, further fueling demand.

Moreover, hospitals with strong oncology programs enjoy a reputation premium, allowing them to command better pricing and attract patients seeking high-quality, specialized care. This convergence of clinical need and commercial opportunity is making oncology the centerpiece of growth strategies for India’s leading hospital chains.