Apollo Hospitals Q4 FY26: Strong earnings, big expansion pipeline, and a Cloudnine deal

Apollo Hospitals Enterprise Limited closed Q4 FY26 with broad-based growth across hospitals, pharmacy and digital, and retail health. Consolidated revenue rose 18% YoY to Rs 6,605 crore, while EBITDA increased 31% YoY to Rs 1,011 crore. Reported PAT grew 36% YoY to Rs 529 crore.

For the full year FY26, consolidated revenue grew 16% YoY to Rs 25,229 crore and EBITDA rose 25% YoY to Rs 3,769 crore. Reported PAT increased 34% YoY to Rs 1,942 crore. The quarter also carried the cost of growth. Apollo noted pre-operative expenses or losses of Rs 41.4 crore in Q4 FY26 from new hospitals commissioned during FY26.

Segment performance: hospitals stayed steady, HealthCo improved, AHLL grew on diagnostics

Healthcare Services remained the core earnings engine. Q4 FY26 hospital revenue rose 16% YoY to Rs 3,268 crore, with EBITDA of Rs 781 crore and margin of 23.9%. Occupancy stood at 68%, with in-patient discharges up 7% YoY. Average revenue per in-patient rose 9% YoY to Rs 1,87,208.

Apollo HealthCo, which houses the pharmacy distribution business and the Apollo 24/7 digital platform, delivered a sharp jump in profitability. Q4 FY26 revenue grew 20% YoY to Rs 2,848 crore and EBITDA (post Ind AS, after 24/7 costs and ESOP) was Rs 156 crore versus Rs 36 crore in Q4 FY25. Reported PAT rose to Rs 107 crore from Rs 9 crore a year ago. The company also reported the lowest digital cash loss of Rs 16.4 crore in Q4 FY26, down sharply versus Q4 FY25.

Apollo Health and Lifestyle Limited (AHLL), covering clinics, diagnostics and day surgery assets, posted Q4 FY26 revenue of Rs 489 crore, up 24% YoY. EBITDA rose 58% YoY to Rs 75 crore with margin at 15.3%. The key driver was diagnostics, which grew 52% YoY in Q4 FY26.

Financial summary

Notes: EBITDA is post Ind AS. HealthCo EBITDA includes 24/7 operating costs and ESOP non-cash charge. New units pre-operative expenses or losses in Q4 FY26 were Rs 41.4 crore.

Expansion plan: commissioning done, ramp-up underway

Apollo highlighted its scale as a pan-India hospital chain, with 78 hospitals and 10,970 capacity beds, along with 9,620 operational census beds across owned, managed, and AHLL assets.

In FY26, Apollo commissioned four new hospitals with 855 census beds. However, only 185 beds were operationalized by March 31, 2026. The balance 670 beds are planned to be operationalized over the next 12 to 18 months. This ramp-up is a key near-term execution focus. Apollo also pointed out that established units performed better on margins, with EBITDA margin for established hospitals at 25.5% in Q4 FY26 versus 24.4% in Q4 FY25.

The longer-term expansion pipeline is sizable. Apollo outlined a total project cost of Rs 8,300 crore, with balance capex of about Rs 5,100 crore. The company expects additional commissioning in FY27 and FY29 to FY30, taking total census beds post expansion to around 13,100.

Cloudnine transaction: sharpening the portfolio in maternity and fertility

A major corporate announcement in the quarter was AHLL’s plan to combine Apollo Cradle and Apollo Fertility with Cloudnine (Kids Clinic India Limited). Under the proposed transaction, AHLL will divest its stake in Apollo Specialty Hospitals Private Limited and Apollo Fertility Centre Private Limited at an enterprise value of about Rs 1,550 crore. Consideration includes Rs 765 crore in cash and a 9.9% equity stake in Kids Clinic India Limited valued at Rs 785 crore.

The company disclosed that the transaction is subject to customary closing conditions and regulatory approvals, including approval from the Competition Commission of India. The indicative completion date mentioned was October 31, 2026.

HealthCo restructuring and potential listing path

Apollo also reiterated the composite scheme for Apollo HealthCo. The update notes that NCLT has directed shareholders’ meeting to be convened on June 24, 2026 for scheme approval. The proposed scheme includes a demerger of the omnichannel pharmacy and digital platform into a resultant company, followed by amalgamation steps including Keimed.

The presentation indicates an estimated listing by Q4 FY27, subject to approvals. Separately, a combined metrics slide for the HealthCo-led combination includes an expectation to achieve INR 250 billion run rate annualized revenue in Q4 FY27, with EBITDA in the range of about 6.5% to 7.0%.

Balance sheet and governance updates

Apollo disclosed consolidated net debt of Rs 866 crore as of FY26, with consolidated gross debt of Rs 3,202 crore. Cash and cash equivalents included investments in liquid funds and fixed deposits of Rs 1,524 crore.

On governance actions, the Board recommended a final dividend of Rs 10 per equity share for FY26, subject to shareholder approval. The company also disclosed re-appointment of Dr. Prathap C Reddy as Executive Chairman for two years from June 25, 2026, subject to member approval.

Key investor takeaways

Apollo’s Q4 FY26 numbers show strong operating momentum with improved profitability across the group. Hospitals continue to deliver steady margins and pricing power, while HealthCo’s profitability has improved sharply, supported by better unit economics in digital and scale in offline distribution.

The near-term watch item is the ramp-up of newly commissioned hospitals, where pre-operative losses were visible in Q4 FY26. The strategic focus remains clear: add capacity, expand the out-of-hospital care footprint, and rationalize the portfolio through targeted transactions such as the Cloudnine combination. The multi-year capex plan and the HealthCo listing roadmap are the two major medium-term execution tracks investors will track closely.