Apollo Hospitals (APOLLOHOSP) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue grew 15% year-over-year to INR 50,856 million in Q1 FY25, with EBITDA up 33% to INR 6,751 million and PAT up 83% to INR 3,051 million.

• All business segments, including Healthcare Services, Diagnostics & Retail Health, and Digital Health & Pharmacy Distribution, reported double-digit revenue growth.

• Digital platform 24/7 added 2 million new users and achieved 9% GMV growth year-over-year.

• Significant clinical milestones achieved, including India's first Robotic Cytoreductive Surgery and the world's first eyebrow keyhole brain tumor removal.

• Strategic merger of Apollo HealthCo with Keimed and equity infusion from Advent International to create India's leading integrated pharmacy distribution business.

Financial highlights

• Healthcare Services revenue rose 15% year-over-year to INR 26,373 million; EBITDA margin stable at 23.6%.

• Apollo HealthCo revenue was INR 20,821 million, up 15% year-over-year; combined pharmacy business revenue grew 16%.

• AHLL (Diagnostics & Retail Health) revenue increased 15% to INR 3,661 million; EBITDA margin improved to 8.4%.

• Consolidated EBITDA grew 33% to INR 6,751 million; PAT surged 83% to INR 3,051 million.

• Net debt at INR 14,565 million, with gross debt of INR 31,449 million and cash & equivalents of INR 16,884 million.

Outlook and guidance

• Combined HealthCo and Keimed entity targets consolidated Year 3 revenues of ~INR 250 billion by FY27 at 7-8% EBITDA margin.

• Four new hospitals (Gurugram, Kolkata, Hyderabad, Pune) to be operational within five quarters, adding 1,500 beds; expansion plans include 2,860 new beds across projects.

• Digital segment (Apollo 24/7) on track to achieve breakeven in 6-7 quarters, leveraging AI and omnichannel capabilities.

• Pharmacy store additions to reach 500-550 for the year, with Q2 ramping up after election-related delays.

• Margin expansion of 100 basis points anticipated over the next 3-4 quarters, driven by improved case mix, payer mix, and tariff revision.