Apollo Hospitals Enterprise Limited has received a credit rating reaffirmation from CRISIL Ratings, with the outlook revised to Positive from Stable while maintaining the AA+ rating. The rating agency has reaffirmed ratings on bank loan facilities worth Rs. 2800 crores and non-convertible debentures of Rs. 19 crores, with short-term ratings maintained at A1+.

Rating Action and Financial Facilities

CRISIL's rating action covers multiple financial instruments and facilities:

The rating reaffirmation reflects Apollo Hospitals' strong market position and improving financial metrics, with CRISIL highlighting the company's dominant presence in India's private healthcare sector.

Market Leadership and Operational Excellence

The positive outlook revision is driven by Apollo Hospitals' established market position as India's largest private healthcare provider. The company operates 51 hospitals with over 8,500 operational beds across India, maintaining its leadership through strong brand equity and superior service quality. CRISIL expects the company to further solidify its presence through ongoing expansion plans.

The rating agency noted Apollo Hospitals' diverse segmental and geographical presence, along with strong and improving operating efficiencies in the healthcare services business. The company's pharmacy distribution business has also shown better profitability, contributing to the overall positive assessment.

Financial Performance and Growth Projections

CRISIL projects consolidated revenues to grow 12-15% year-on-year to over Rs. 24,000 crores in fiscal 2026. This growth is expected to be driven by:

• Healthy growth in healthcare services segment
• Strong performance in back-end pharmacy business housed in Apollo Healthco Ltd
• Expansion in diagnostics and retail health businesses
• Steady occupancy levels and moderate increase in average revenue per operating bed (ARPOB)

Operating margins are expected to improve by approximately 100 basis points in fiscal 2026, supported by robust operating profitability in the healthcare business at 23-25% and better operating profits at Apollo Healthco Ltd.

Robust Financial Profile and Liquidity Position

Apollo Hospitals maintains a strong financial risk profile with robust liquidity. Key financial highlights include:

The company plans capital expenditure of Rs. 6000 crores towards addition of 3,600 census beds and a Proton cancer centre over the next 3-5 years, along with maintenance capex of Rs. 450-500 crores per annum. Despite sizeable capex plans, the financial profile is expected to remain robust backed by healthy annual cash accruals of over Rs. 2000 crores.

Strategic Corporate Restructuring

Apollo Hospitals has undertaken significant corporate restructuring initiatives. The company's board approved a composite scheme of arrangement involving the demerger of its telehealth business and pharmacy distribution operations. Post-restructuring, Apollo Hospitals will focus on healthcare services, diagnostics, and retail health businesses, while maintaining collaboration agreements with the demerged entities.

The company has also approved the acquisition of a 30.6% stake held by International Finance Corporation in Apollo Health and Lifestyle Limited for Rs. 1254 crores, which will increase Apollo Hospitals' ownership to 99.6% and enable enhanced management control.

Risk Factors and Outlook

While the rating reflects strong fundamentals, CRISIL noted exposure to regulatory risks and continuing losses at the Apollo 24*7 digital platform as partial offsets. The healthcare sector remains subject to government policy changes regarding price capping of medical procedures and devices.

The Positive outlook indicates potential for rating upgrades if the company sustains healthy revenue growth, maintains leverage below 1.5 times debt/EBITDA, and continues generating strong cash flows while managing its expansion plans effectively.

Source:

Schroder Investment Management has filed a substantial acquisition disclosure with stock exchanges following a reduction in its shareholding in Apollo Hospitals Enterprise Ltd. The disclosure, made under Regulation 29(2) of SEBI's Substantial Acquisition of Shares and Takeovers Regulations 2011, details a significant stake reduction through open market transactions.

Transaction Details

The investment management firm sold 206,610 shares of Apollo Hospitals Enterprise Ltd on 21 January 2026 through open market transactions. This disposal reduced Schroder's percentage holding by 0.14% of the company's total share capital.

Shareholding Position

Following the transaction, Schroder Investment Management's total shareholding in Apollo Hospitals has been adjusted as detailed below:

Acquirer Information

The disclosure identifies Schroder Investment Management (Singapore) Ltd and Schroder Investment Management (Hong Kong) Ltd as the primary acquirers, operating as discretionary fund managers of funds and segregated mandates. The broader Schroders Group is listed as persons acting in concert, also functioning as discretionary fund managers.

Key details about the investment management entities:

• The acquirers do not belong to Apollo Hospitals' promoter or promoter group
• They operate as discretionary fund managers for various funds and segregated mandates
• The disclosure was signed by Vivian Leung, Head of Compliance, Hong Kong, on 26 January 2026

Regulatory Compliance

The filing was submitted to both the National Stock Exchange of India Ltd and The Bombay Stock Exchange Limited, where Apollo Hospitals Enterprise Ltd shares are listed. The disclosure follows SEBI regulations requiring substantial shareholders to report changes in their holdings when they cross certain thresholds.

The equity share capital and total voting capital of Apollo Hospitals Enterprise Ltd remained unchanged at 4,301,211 shares both before and after the transaction, with the diluted share capital also maintaining the same figure.