Apollo Stays On Track with Growth Plan Amid HealthCo Demerger Progress

Apollo Hospitals Sticks to Growth Trajectory for FY27

Apollo Hospitals is maintaining its growth momentum for the fiscal year 2027 (FY27), driven by sustained hospital performance, a large capacity expansion pipeline, and progress on the planned demerger of its omnichannel healthcare platform, Apollo HealthCo.

The Apollo HealthCo demerger remains on schedule, with shareholder approval slated for June and the process expected to conclude by the fourth quarter of FY27, when the standalone entity could be listed. The restructuring aims to unlock value in the fast-growing pharmacy and digital health business, which has already crossed Rs.10,000 crore in annual revenue and is targeting a step-up in scale and profitability.

Apollo is maintaining its mid-teen growth expectations for the hospitals business in FY27, broadly in line with recent performance. The company is hopeful that the current growth momentum, driven largely by existing hospitals, will sustain, with incremental upside coming from new facilities. Apollo is operationalising 1,400-1,500 new beds across metro markets over the next 12-18 months, including new hospitals in Pune, Kolkata, Hyderabad, and Delhi.

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For Apollo HealthCo, the company is targeting Rs.25,000 crore annualised revenue by the fourth quarter of FY27, with EBITDA margins of 6.5-7 percent, aided by digital breakeven and scale benefits. The expansion will materially increase Apollo's metro footprint, with nearly 25 percent capacity addition in key urban markets, positioning the business for sustained growth.

Apollo is also reshaping its portfolio by merging its maternity and fertility business (Apollo Cradle) with Cloudnine, valuing the vertical at around Rs.1,550 crore. The Cradle and fertility segment generated Rs.450 crore revenue and Rs.45 crore EBITDA in FY26. The move is part of a broader strategy to focus on integrated mother-and-child care and redeploy capital into primary care and diagnostics, which act as feeder channels for the core hospital network.

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The company is working on both costs and operating leverage to drive improvement in the overall Healthcare Services margin. Apollo's CEO (Hospitals), Madhu Sasidhar, and Group CFO, Akhileswaran Krishnan, are confident that the company will achieve its growth targets and unlock value in the fast-growing pharmacy and digital health business.