Apollo Hospitals Managing Director Suneeta Reddy expects the unit to achieve sustainable margins of 15% by the second quarter of next year, supported by an expanded test menu to enhance profitability.
Apollo Health and Lifestyle narrowed its loss in the third quarter to ₹8 crore from ₹14.3 crore a year ago, with losses for the first nine months of FY25 reducing to ₹22.8 crore from ₹42 crore last year.
Apollo Health and Lifestyle operates Apollo Clinics, offering specialist consultations, diagnostics, preventive health checks, and pharmacy services to ensure accessible, high-quality healthcare.
On Apollo HealthCo, Reddy projects margins to reach 7% over the next three years, with offline pharmacies playing a key role in revenue growth. “They do have a huge growth plan to increase the number of pharmacies. Currently, they have 6,320 pharmacies and added 120 new stores, with a strong 7.7% margin,” she added.
Reddy views the entry of large conglomerates like Adani into healthcare as a positive for the industry, validating the format and helping attract international patients.
She pointed out Adani’s Mumbai hospital, located near the airport, will be beneficial in serving medical tourists.
She also stated that Mumbai’s healthcare sector has room for multiple providers, citing Apollo’s success with 400-450 beds and a 68% occupancy rate.
Speaking about Adani’s partnership with US-based Mayo Clinic Global Consulting, Reddy said, “It’s good for business as well, because – first, the structural demand – that gap is still very large and second, is a validation that this format is the right thing to do, which is why people like Adani are entering the business.”
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Reddy expects Apollo Hospitals’ average revenue per occupied bed (ARPOB) to grow by 8% for the year, driven by a well-balanced case mix and slight tariff improvements.
Apollo Hospitals reported strong October-December quarter of 2024 (Q3FY25) results, with revenue rising 13.9% year-on-year (YoY) to ₹5,527 crore. earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 24.2% to ₹762 crore, while profit after tax (PAT) surged 49.2% to ₹379 crore. The EBITDA margin improved to 13.79%.
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Apollo Hospitals’ market capitalisation stands at approximately ₹91,878.40 crore. However, its shares have declined nearly 4% over the past year.
For the entire interview, watch the accompanying video
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