India’s Apollo Hospitals expects mid-teen revenue growth in FY26 amid expansion plan

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By Rishika Sadam

HYDERABAD (Reuters) -India’s Apollo Hospitals Enterprise said its plan to add 4,300 beds over the next three to four years would underpin its revenue growth from fiscal 2026.

For fiscal 2027, the company expects higher revenue growth than the mid-teen increase projected for the preceding year as “most of the beds are going to be coming through the year,” Chief Financial Officer Krishnan Akhileswaran told Reuters.

The first phase of adding around 2,000 beds was in progress and would include setting up new hospitals as well as adding beds to existing ones, said the hospital chain, which has about 9,458 operational beds across the country.

Apollo will spend over 80 billion rupees over the next five years to add the 4,300 beds, it added.

Total revenue for the fourth quarter rose 13% to 55.92 billion rupees, aided by a 10% growth in the healthcare services business that contributes more than half of the total revenue and a 17% growth in its offline pharmacy and digital healthcare business that is yet to break even.

Apollo’s overall bed occupancy rate across India rose 2% to 67% in the quarter.

The hospital chain operator reported a consolidated net profit of 3.9 billion rupees ($45.59 million) for the January-March quarter, beating analysts’ average expectation of 3.71 billion rupees, according to data compiled by LSEG.

The quarterly growth was driven by demand for complex specialty care treatments, CEO Madhu Sasidhar said.

Increased advertising and the recruitment of doctors for specialty care also yielded results, he added.

($1 = 85.5410 Indian rupees)

(Reporting by Rishika Sadam in Hyderabad; Editing by Sahal Muhammed and Anil D’Silva)