Apollo Hospitals Q2 PAT climbs 32% as segment revenue grows

Apollo Hospitals Enterprise Ltd reported Q2FY27 consolidated profit after tax of Rs 630.1 crore, up 32% year on year, as revenue rose 23% to Rs 7,614.9 crore and each of its three operating segments expanded revenue by at least 20%.

How did Apollo Hospitals perform in Q2FY27?

Apollo Hospitals reported Rs 7,614.9 crore of consolidated revenue in Q2FY27, compared with Rs 6,188.8 crore in Q2FY26, while consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) rose 29% to Rs 1,191 crore. Reported consolidated profit after tax (PAT) increased from Rs 477.3 crore to Rs 630.1 crore in the same comparison.

The Q2FY27 EBITDA margin was 15.6%, compared with 14.9% in Q2FY26, an increase of 70 basis points. Earnings before interest and tax (EBIT) rose to Rs 960.7 crore from Rs 719.1 crore, lifting the EBIT margin to 12.6% from 11.6%, while profit before tax reached Rs 908.2 crore against Rs 674.7 crore.

The reported PAT comparison has an accounting qualification. Apollo Hospitals said AHLL transferred stakes in ASPL and AFCPL to Kids Clinic India Limited on October 12, 2026; under Indian Accounting Standard 105, these businesses are classified as discontinued operations. Financials through EBIT were re-presented for comparative periods, while profit before tax and PAT include discontinued operations.

Which Apollo Hospitals segments drove Q2 revenue growth?

Apollo Hospitals’ Healthcare Services segment remained the largest contributor, with Q2FY27 revenue of Rs 3,899.8 crore, up 23% from Rs 3,169 crore. Digital Health & Pharmacy Distribution followed with revenue of Rs 3,285.7 crore, also up 23%, while Diagnostics & Retail Health increased revenue 20% to Rs 429.4 crore from Rs 359.2 crore.

Healthcare Services generated Rs 936.5 crore of EBITDA, 20% above Rs 780 crore a year earlier, although its margin moved to 24.0% from 24.6%. Diagnostics & Retail Health EBITDA increased 79% to Rs 61.5 crore and its margin expanded to 14.3% from 9.5%, while Digital Health & Pharmacy Distribution EBITDA increased 75% to Rs 193 crore after Apollo 24|7 operating costs and employee stock-option plan (ESOP) expense.

The segment comparison shows that Diagnostics & Retail Health moved from a reported Q2FY26 PAT loss of Rs 4 crore to Q2FY27 PAT of Rs 25.9 crore. Digital Health & Pharmacy Distribution reported PAT of Rs 118.2 crore, up 62% from Rs 73.1 crore, while Healthcare Services PAT rose 19% to Rs 486 crore.

What changed in Apollo Hospitals’ hospital business?

Apollo Hospitals increased hospital operating beds to 8,522 across 48 hospitals in Q2FY27, from 8,050 beds across 45 hospitals in Q2FY26. Occupancy rose to 73% from 69%, and inpatient discharges increased 14% to 185,980, providing the volume basis for the Healthcare Services segment’s 23% revenue growth.

Average revenue per inpatient increased 8% to Rs 1.8688 lakh, while average length of stay declined 2% to 3.07 days from 3.14 days. Management attributed Healthcare Services growth to a 14% overall volume increase, comprising 10% growth in established-unit volumes, a 4% price contribution and a 5% case-mix or payor-mix contribution.

Oncology revenue grew 28%, gastroenterology revenue increased 27%, urology rose 26%, and cardiac and orthopaedic specialties each rose 20%. The hospital segment incurred Rs 34.8 crore of pre-operative expenses or losses at new units in Q2FY27, while management reported a 25.8% EBITDA margin for established units.

How did Apollo Hospitals’ digital health and pharmacy profitability change?

Apollo Hospitals’ Digital Health & Pharmacy Distribution revenue reached Rs 3,285.7 crore in Q2FY27, up 23%, and EBITDA before Apollo 24|7 operating costs and ESOP expense rose 20% to Rs 284 crore. That pre-cost margin was 8.6%, compared with 8.9% in Q2FY26, but the reported EBITDA margin after those costs increased to 5.9% from 4.1%.

Apollo 24|7 operating costs declined to Rs 77 crore from Rs 93.5 crore, and non-cash ESOP expense declined to Rs 14 crore from Rs 32.4 crore. Together, these costs fell by Rs 34.9 crore year on year, helping reported segment EBITDA increase from Rs 110.2 crore to Rs 193 crore.

Management said Apollo 24|7 recorded its first pre-ESOP EBITDA-positive quarter, supported by higher volumes and lower digital spending. The presentation also cited nearly threefold improvement in per-order economics, higher order values, lower delivery costs and better user acquisition as marketing spending declined; it did not provide absolute digital-order or marketing-spend figures.

What do Apollo Hospitals’ half-year earnings and debt show?

Apollo Hospitals reported H1FY27 consolidated revenue of Rs 14,546.8 crore, up 22% from Rs 11,923.6 crore in H1FY26, while EBITDA increased 29% to Rs 2,267.8 crore. H1FY27 PAT rose 33% to Rs 1,210.6 crore from Rs 910 crore, extending the Q2FY27 pattern of faster profit growth than revenue growth.

Healthcare Services contributed Rs 7,466.8 crore of H1FY27 revenue, Digital Health & Pharmacy Distribution contributed Rs 6,262.8 crore, and Diagnostics & Retail Health contributed Rs 817.2 crore. H1 EBITDA increased 20% in Healthcare Services, 79% in Digital Health & Pharmacy Distribution and 83% in Diagnostics & Retail Health, with the latter two segments starting from lower prior-year profit bases.

Consolidated gross debt stood at Rs 3,131.7 crore and consolidated net debt was Rs 628.9 crore at the disclosed period end. Within the disclosed entities, Healthcare Services had Rs 293.4 crore of net debt, HealthCo had Rs 67.6 crore, and AHLL had Rs 267.9 crore; cash and cash equivalents included Rs 1,915.4 crore invested in liquid funds and fixed deposits.

Conclusion

Apollo Hospitals’ Q2FY27 result combined 23% consolidated revenue growth with a 32% increase in reported PAT to Rs 630.1 crore. Healthcare Services remained the largest earnings contributor, while Diagnostics & Retail Health returned to reported profitability and Digital Health & Pharmacy Distribution expanded reported EBITDA by 75% as Apollo 24|7 operating and ESOP costs declined.

The disclosed expansion plan is to scale pharmacy-supported operations to about 50 Tier 3 cities through Apollo Pharmacy, supported by new distribution centres intended to provide faster delivery. The presentation also disclosed Rs 1,528.8 crore of capital work in progress toward new projects under development, excluded from Healthcare Services capital employed of Rs 9,635.1 crore in Q2FY27.