Apollo Hospitals Delivers Robust Q1, Acquires PET-CT Unit, Eyes Double-Digit Growth in FY26

Apollo Hospitals Enterprise Ltd. has kicked off FY26 with a strong performance and strategic expansion moves, reinforcing its position as India’s leading healthcare provider. The company reported a 42 percent year-on-year jump in consolidated net profit for Q1, announced the acquisition of Apollo Gleneagles PET-CT Private Ltd., and reaffirmed its guidance for double-digit revenue growth for the full fiscal year.

Key financial highlights for Q1 FY26:  
- Consolidated net profit surged to ₹433 crore, up from ₹305 crore in Q1 FY25  
- Revenue from operations rose 14.9 percent year-on-year to ₹5,842 crore, beating analyst estimates of ₹5,744 crore  
- EBITDA grew 26.3 percent to ₹851.5 crore, with operating margins improving to 14.6 percent from 13.3 percent  
- Segment-wise growth was led by healthcare services, digital health, and diagnostics

Strategic acquisition of PET-CT unit:  
Apollo Hospitals has acquired the remaining 50 percent stake in Apollo Gleneagles PET-CT Private Ltd. from Parkway Healthcare (Mauritius) PTE Ltd. for ₹8.5 crore.  
- The acquisition makes PET-CT a wholly owned subsidiary of Apollo Hospitals  
- The move strengthens Apollo’s diagnostics portfolio and expands its footprint in advanced imaging services  
- PET-CT scans are critical for oncology, cardiology, and neurology diagnostics, aligning with Apollo’s focus on high-end specialties

Investment and expansion roadmap:  
Apollo has lined up an aggressive capex plan to meet rising demand and deepen its reach.  
- ₹8,000 crore investment planned over five years to add 4,300 beds across India  
- First phase of 2,000 beds already underway, with new hospitals in Pune, Kolkata, Hyderabad, Delhi NCR, and Bengaluru  
- Bengaluru expansion includes 700 beds in two phases, taking total capacity to 1,500 beds  
- Apollo aims to commission six major projects by FY26, including brownfield and greenfield developments

Digital health and pharmacy momentum:  
Apollo’s digital arm and pharmacy business continue to show strong traction.  
- Apollo 24/7 reported quarterly GMV of ₹682 crore, driven by teleconsultations, diagnostics, and pharmacy deliveries  
- Offline retail pharmacy posted double-digit growth, supported by store expansion and operational optimization  
- Apollo Healthtech Ltd. was launched as a separate entity to unlock value from the digital and pharmacy verticals

Operational efficiency and cost control:  
Apollo’s margin expansion was aided by disciplined cost management and operating leverage.  
- Expenses rose to ₹5,313 crore, up from ₹5,148 crore in Q4 FY25 and ₹4,704 crore in Q1 FY25  
- Cost controls in Apollo 24/7 and integration benefits from acquisitions supported EBITDA growth  
- Occupancy rates improved to 68 percent, with richer case mix boosting revenue quality

Outlook for FY26:  
Apollo Hospitals remains optimistic about sustaining its growth momentum.  
- Management reiterated guidance for double-digit revenue growth for FY26  
- Focus areas include oncology, complex surgeries, preventive care, and AI-powered diagnostics  
- Apollo ProHealth platform achieved over 25 million health assessments in Q1  
- The company aims to enhance patient experience through tech-driven care and personalized health management

Apollo Hospitals’ Q1 performance and strategic moves reflect its commitment to scaling high-quality healthcare across India. With strong financials, targeted acquisitions, and a bold expansion plan, the company is well-positioned to deliver on its FY26 growth ambitions and redefine the future of Indian healthcare.

Sources: Economic Times, CNBC TV18, Moneycontrol, Business Standard, Apollo Hospitals Investor Presentation