Q1 2027 Apollo Hospitals Enterprise Ltd Earnings Call Transcript
Key Points
- Consolidated revenue grew 21% year-on-year to INR7,043 crores, with EBITDA up 28% and margin expansion to 15.5% from 14.6%.
- Healthcare Services delivered 22% revenue growth, driven by 11% volume growth, 4% pricing, and 3% case mix, with established hospital EBITDA margins at 25.9%.
- Apollo HealthCo reduced digital cash loss to INR10 crores from INR49 crores year-on-year, on track for breakeven next quarter, with overall PAT up to INR101 crores.
- AHLL improved EBITDA margins to 11.8% from 9.2%, with diagnostics revenue growing 31% and nearing INR200,000 crore annualized run rate.
- International patient revenue grew 26%, with Bangladesh volumes normalizing and contributing to higher-acuity cases, while CONGO-T specialties now account for 62% of inpatient revenues.
- New hospital losses are expected to peak at INR150 crores for the year, with the Financial District Hyderabad hospital on track to break even in coming quarters.
- The company maintains a strong balance sheet with comfortable debt levels, funding expansion largely through internal accruals.
- New hospitals reported an EBITDA loss of INR38 crores in the quarter, with losses expected to inch up by INR20 crores per quarter before declining.
- The insurance business within Apollo HealthCo is still in investment mode, with setbacks in the feet-on-street model pushing breakeven to Q3 FY27.
- International patient volumes from Bangladesh are only at 60-70% of pre-crisis peak, though value per patient is higher.
- The company faces potential regulatory and pricing scrutiny from parliamentary committee recommendations, which could impact future pricing power.
- Some brownfield expansions, such as Jubilee Hills and a second facility, have been delayed to FY28 due to configuration changes and landlord delays.
- The digital business revenue growth lags GMV growth due to a shift in the consult revenue model, creating a discrepancy that may persist.
- The company closed three hospitals during the quarter, including a renovation in Tondiarpet and a non-operational facility in Lavasa, which may signal operational challenges.
Ladies and gentlemen, good day, and welcome to Apollo Hospitals Limited earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mayank Vaswani from CDR India. Thank you, and over to you.
Thank you, Sagar. Good afternoon, everyone, and thank you for joining us on this call hosted by Apollo Hospitals to discuss the financial results for the first quarter of FY27, which were announced yesterday. We have with us today the senior management team represented by Mrs. Suneeta Reddy, Managing Director; Mr. A. Krishnan, Group CFO; Dr. Madhu Sasidhar, President and CEO of the Hospitals Division; Mr. Madhivanan Balakrishnan, CEO of Apollo Health Corp. Mr. Sriram Iyer, CEO of AHLL; Mr. Sanjiv Gupta, CFO of Apollo HealthCo; and Mr. Obul Reddy, CFO of the Pharmacy business.
Before we begin, I would like to mention that some of the statements made in today's discussion may be forward-looking in nature and may involve risks and uncertainties
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