Apollo hospital revenue climbs 23% as new facilities lose Rs 35 crore

Apollo Hospitals Enterprise Ltd. reported 23% year-on-year growth in Healthcare Services revenue to Rs 3,900 crore in the second quarter of fiscal year 2027 (Q2 FY27), while hospital occupancy rose to 73% from 69%; new hospitals generated Rs 135 crore of revenue but recorded an EBITDA loss of Rs 35 crore. The network had 8,522 operating beds on September 30, 2026.

How did Apollo's hospital business perform in Q2 FY27?

Apollo's hospital business increased revenue and earnings in Q2 FY27, with Healthcare Services revenue reaching Rs 3,900 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) reaching Rs 937 crore. Revenue was Rs 731 crore above the Rs 3,169 crore reported in Q2 FY26, while EBITDA increased by Rs 157 crore from Rs 780 crore. The division's EBITDA margin was 24%, and profit after tax rose 19% to Rs 486 crore from Rs 408 crore.

The operating improvement coincided with higher inpatient (IP) utilisation. Occupancy increased by four percentage points to 73% in Q2 FY27 from 69% a year earlier, while Healthcare Services IP volumes grew 14%. Average revenue per patient (ARPP) was Rs 1.8688 lakh, up 8% year on year. Apollo reported 8,522 operating beds across its hospital network on September 30, 2026, excluding Apollo Health and Lifestyle Limited (AHLL) and managed beds.

Healthcare Services revenue of Rs 3,900 crore compared with Apollo's consolidated revenue of Rs 7,615 crore in Q2 FY27. At group level, revenue rose 23% from Rs 6,189 crore and reported profit after tax increased 32% to Rs 630 crore from Rs 477 crore. Consolidated EBITDA grew 29% to Rs 1,191 crore from Rs 924 crore, with a 16% margin.

Which Apollo regions recorded the fastest hospital growth?

Apollo recorded revenue growth in all six reported hospital regions in Q2 FY27, led by Western India at 31% and AP-Telangana at 30%. Western occupancy increased to 67% from 60%, the largest reported gain of seven percentage points. AP-Telangana's average occupied beds rose to 1,021 from 874, while occupancy reached 71% from 68%.

Tamil Nadu had the largest reported average occupied-bed count at 1,436, compared with 1,306 in Q2 FY26, and occupancy improved to 72% from 63%. Eastern India and Northern India had the highest occupancy at 77%; Eastern occupancy was down from 79% a year earlier, although its average occupied beds increased to 1,527 from 1,429. The disclosed figures show occupied-bed growth across all regions despite different occupancy-rate movements.

ARPP increased in every region, ranging from 6% growth in Tamil Nadu and Eastern India to 11% in Karnataka and Western India. Tamil Nadu reported the highest ARPP at Rs 2.17162 lakh, while Eastern India reported Rs 1.56749 lakh. Northern India's occupancy rose to 77% from 72%, supported by average occupied beds of 950 against 866, although its 6% IP-volume growth was the lowest among the six regions.

Are Apollo's newly opened hospitals profitable yet?

Apollo's new hospitals were not EBITDA-profitable in Q2 FY27, generating Rs 135 crore in revenue and an EBITDA loss of Rs 35 crore. The announcement provides neither a comparative period nor individual facility revenue or occupancy figures. The disclosed data therefore show the combined contribution and loss without identifying the performance of each location.

Apollo said it was ramping up hospitals at Financial District in Hyderabad, Sonarpur in Kolkata and Sarjapur in Bengaluru. The Sarjapur hospital was commissioned in Q1 FY27. Apollo also said its Gurugram facility remained on track for commissioning in Q3 FY27, extending the capacity programme while the newer hospitals develop their operations.

The hospital expansion programme envisages adding more than 5,800 beds over the next five years. Dr. Prathap C. Reddy, founder and chairman, said Apollo was in an investment phase and that its focus in H2 FY27 would include improving operating performance, supporting newer hospitals and maintaining discipline in capital allocation. The filing does not state a break-even date for the facilities that reported the Rs 35 crore quarterly EBITDA loss.

What do Apollo's first-half results show about hospital momentum?

Apollo's Healthcare Services revenue rose 22% to Rs 7,467 crore in the first half of fiscal year 2027 (H1 FY27), from Rs 6,104 crore in H1 FY26. H1 EBITDA increased 20% to Rs 1,798 crore from Rs 1,497 crore, with the margin at 24%, while profit after tax rose 22% to Rs 965 crore from Rs 791 crore.

H1 hospital occupancy was 71%, compared with 67% in H1 FY26, while IP volumes grew 14% and ARPP was Rs 1.8676 lakh, up 8%. Q2 occupancy of 73% was two percentage points above the H1 average, and Q2 revenue of Rs 3,900 crore exceeded half of the Rs 7,467 crore H1 total. Apollo supplied no month-by-month data to show how occupancy moved during the quarter.

Outside hospital services, AHLL reported Q2 revenue of Rs 429 crore, up 20%, and EBITDA of Rs 61 crore against Rs 34 crore a year earlier. Apollo HealthCo reported revenue of Rs 3,286 crore, up 23%, including Rs 2,885 crore from offline pharmacy distribution and Rs 401 crore from the digital platform. It added 222 net pharmacy stores in Q2, taking the network to 7,662 on September 30, 2026.

Conclusion

Apollo's Q2 FY27 hospital data show broader use of its established network alongside higher revenue per patient: occupancy rose to 73%, IP volumes increased 14%, and Healthcare Services revenue grew 23% to Rs 3,900 crore. Regional revenue growth ranged from 16% to 31%, while new hospitals produced Rs 135 crore of revenue but remained loss-making at the EBITDA level.

The next disclosed milestone is the planned Q3 FY27 commissioning of the Gurugram hospital, alongside continued ramp-up at Financial District, Sonarpur and Sarjapur. Management's plan to add more than 5,800 beds over five years means the operating trajectory of those newer facilities, including any movement from the Q2 FY27 EBITDA loss of Rs 35 crore, remains a disclosed matter to watch.