Apollo Q4 PAT Rises 36%; Earnings Call Transcript Out

Apollo Hospitals Enterprise Limited has announced its financial results for the quarter and year ended March 31, 2026, reporting strong growth across key metrics. The company reported consolidated revenue of ₹66,055 million for Q4 FY26, compared to ₹55,900 million in the same period last year, reflecting an 18% year-over-year increase. Consolidated Profit After Tax (PAT) for the quarter stood at ₹5,292 million, up from ₹3,900 million in the prior year period, growing by 36% year-over-year. The transcript of the earnings call presentation held on May 21, 2026, is now available on the company's website.

Consolidated Financial Performance

The company's EBITDA for the quarter grew by 31% to ₹10,100 million, compared to ₹7,700 million in the year-ago period, while the EBITDA margin expanded to 15.31% from 13.76% year-over-year. The growth was driven by strong performance across its Healthcare Services, Diagnostics & Retail Health, and Digital Health & Pharmacy Distribution segments.

Metric	Q4 FY26	Q4 FY25	YoY Change
Consolidated Revenue	₹66,055 mio	₹55,900 mio	+18%
EBITDA	₹10,100 mio	₹7,700 mio	+31%
EBITDA Margin	15.31%	13.76%	+155 bps
PAT	₹5,292 mio	₹3,900 mio	+36%

Segment Performance

Healthcare Services revenue grew by 16% to ₹32,678 million, with an EBITDA of ₹7,806 million. Apollo Health & Lifestyle Ltd (AHLL) reported a 24% increase in revenue to ₹4,895 million, driven by a 52% growth in Diagnostics. Apollo HealthCo's revenue rose by 20% to ₹28,482 million, with the segment achieving a PAT of ₹1,076 million, a significant increase compared to the previous year.

Strategic Transactions

The Board approved a transaction involving Apollo Health and Lifestyle Limited (AHLL) and Kids Clinic India Limited (Cloudnine). As part of the deal, Apollo Hospitals has merged its Cradle business with Cloudnine at a 35X EBITDA multiple. AHLL will divest its stake in Apollo Specialty Hospitals Private Limited and Apollo Fertility Centre Private Limited to Kids Clinic India Limited at an enterprise value of approximately ₹15,500 million. The consideration includes ₹7,650 million in cash and an equity stake of approximately 9.9% in Kids Clinic India Limited, along with a board seat.

Parameter	Details
Transaction	Merger of Cradle business with Cloudnine
Valuation Multiple	35X EBITDA
Enterprise Value	₹15,500 million
Cash Consideration	₹7,650 million
Equity Stake Retained	~9.9% in Kids Clinic India Limited
Board Seat	Retained by Apollo Hospitals

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.05%	+2.44%	+4.89%	+21.01%	+22.76%	+155.37%

Apollo Hospitals has issued comprehensive guidance for FY27, covering new hospital loss assumptions, Healthcare Services growth expectations, digital business breakeven timelines, and the progress of the Apollo HealthCo demerger — all disclosed as part of a recent concall update.

New Hospital Loss Assumptions

Management has maintained its assumption of INR 140-150 crores in losses for the full year from new hospitals, with the peak quarterly loss potentially occurring in Q2. This guidance signals that the ramp-up phase for recently launched facilities is expected to weigh on near-term profitability before stabilizing.

Healthcare Services Growth Outlook

The Healthcare Services business is expected to deliver mid-teen growth in FY27, with established units projected to improve margins by at least 100 basis points. This outlook reflects management's confidence in the operational maturity of its existing hospital network and its ability to drive efficiency gains alongside revenue expansion.

Apollo 24/7 Breakeven Timeline

Apollo 24/7, the company's digital health platform, is on track to achieve key profitability milestones in FY27. The following table outlines the breakeven targets as disclosed:

Milestone:	Target Timeline
Breakeven (Excluding ESOP Costs):	Q1 FY27
Breakeven (Including ESOP Costs):	Q3 FY27

Apollo HealthCo Demerger and Financial Targets

Management reaffirmed that the Apollo HealthCo demerger and listing are expected to be completed by Q4 FY27, with the entity reaching an annualized revenue of INR 25,000 crores by that quarter. A shareholder meeting has been scheduled for June 24, 2026, as a key procedural step in the demerger process. Apollo HealthCo is additionally guiding for an exit EBITDA margin of 6.5% to 7% by Q4 FY27, driven by private label growth and a reduction in digital losses. The key parameters of the demerger and financial targets are summarized below:

Parameter:	Details
Shareholder Meeting Date:	June 24, 2026
Target Listing Timeline:	Q4 FY27
Annualized Revenue Target:	INR 25,000 Crores
Exit EBITDA Margin Guidance:	6.5% – 7% by Q4 FY27
Key Growth Drivers:	Private label growth, reduced digital losses

Key Guidance Highlights

The following summarizes the major guidance points disclosed in the concall update:

New hospital losses assumed at INR 140-150 crores for the full year, with peak quarterly loss potentially in Q2
Healthcare Services business expected to see mid-teen growth in FY27, with established units improving margins by at least 100 basis points
Apollo 24/7 on track for breakeven excluding ESOP costs by Q1 FY27 and including ESOP costs by Q3 FY27
Apollo HealthCo demerger and listing targeted for Q4 FY27, with annualized revenue of INR 25,000 crores by that quarter
Apollo HealthCo guiding for an exit EBITDA margin of 6.5% to 7% by Q4 FY27

Apollo Hospitals has not provided additional financial details beyond those disclosed in the concall update. Stakeholders and investors are expected to receive further clarity following the scheduled shareholder meeting on June 24, 2026.