Apollo Hospitals Q1 FY27: consolidated PAT +38% YoY to Rs.610 Cr as revenue grows 21%, margins expand
PAT +38.4% YoY · revenue +20.6% · margins expanding · beat vs street
₹7,043.5 Cr
+20.6% YoY
₹610.4 Cr
+38.4% YoY
8.61%
+1.1pp YoY
₹40.39
Apollo Hospitals' consolidated Q1 FY27 (three months to June 30, 2026) revenue rose 21% YoY and 6.6% QoQ to Rs.7,043.5 Cr, with consolidated EBITDA up 28% YoY to Rs.1,092 Cr (margin ~15.5% vs 14.6% a year ago and 15.3% last quarter). Reported PAT for the period (before minority interest, matching the statement's PAT row) was Rs.610.4 Cr, up 38.4% YoY and 10.7% QoQ; the owners-attributable PAT the company headlines in its press release was Rs.580.7 Cr (+34% YoY), the Rs.29.7 Cr gap going to non-controlling interests in subsidiaries such as Apollo HealthCo and AHLL. There were no exceptional items in the quarter on either a standalone or consolidated basis, so the growth is clean — last year's Rs.19.2 Cr labour-code exceptional charge sat only in the FY26 full-year column, not in the Q1 FY26 base.
Q1 FY-2027 vs prior quarters
Growth was broad-based. Healthcare Services (hospitals) revenue grew 22% YoY to Rs.3,567 Cr with EBITDA up 20% YoY to Rs.862 Cr, even after absorbing a Rs.38 Cr EBITDA drag from newly launched capacity (Sarjapur plus the Financial District/Sonarpur/Pune/Delhi Oncology cohort); stripping that drag, underlying hospital EBITDA margin expanded over 100bps, consistent with management's guided margin offset from mature hospitals. Apollo HealthCo (pharmacy distribution + digital) grew revenue 20% YoY to Rs.2,977 Cr and lifted EBITDA margin to 6% from ~3.8%, narrowing its PAT loss to Rs.1 Cr from Rs.8 Cr a year ago. On a standalone (parent-only) basis, PAT grew a slower 25.5% YoY to Rs.385.2 Cr versus the consolidated 38.4% — a sizeable gap, since the faster-growing, higher-incremental-margin subsidiaries sit outside the standalone entity.
The stock went into the print at ₹8,597, down 3.4% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 5 consecutive quarters; revenue is at a 6-quarter high.
Management projects strong revenue growth, targeting 12-14% organic growth for existing hospitals with an additional 3-4% from new beds. Apollo HealthCo's adjusted GMV is expected to grow by 28% for FY26 and 30% for FY27, while physical pharmacy targets 20-20.5% total growth with 600 annual store additions. The digital
— This quarter: beat
A pre-result preview (Univest) had flagged Q1 FY27 as a 'stable' quarter with revenue seen in a Rs.6,526-7,351 Cr range; the actual Rs.7,043.5 Cr print and 28% EBITDA growth came in ahead of that stable-quarter framing — a beat on the operating line, though no explicit street PAT consensus was found. Against management's own prior guidance (12-14% organic hospital growth plus 3-4% from new beds), Healthcare Services' 22% YoY growth beat the guided range; store-addition pace (151 net new stores this quarter, ~604 annualised vs a 600/year target) and new-bed start-up losses (Rs.38 Cr this quarter vs a guided ~Rs.150 Cr for all of FY27) are both tracking guidance. The one metric trailing its target is Apollo 24/7 GMV, up 23% YoY to Rs.535 Cr against a guided 30% FY27 growth rate. Separately, the board used the results meeting to approve PwC as incoming statutory auditor from the 46th AGM (succeeding Deloitte after two five-year terms), and noted the AHEL-AHL-Keimed Scheme of Arrangement (creating listed entity Apollo Healthtech) has moved to an NCLT sanction petition after June 24, 2026 shareholder/creditor approvals; AHL separately plans to slump-sell its ~Rs.3,610 Cr FMCG distribution undertaking to subsidiary Apollo Consumer Products by around October 1, 2026.
W1
Apollo 24/7 GMV growth (23% YoY this quarter) against management's guided ~30% FY27 growth rate
W2
Digital business cash-EBITDA breakeven, guided for Q1 FY27 (already flagged as a slight delay last concall) but not separately disclosed in this filing — HealthCo's overall PAT loss narrowed to Rs.1 Cr from Rs.8 Cr YoY
W3
NCLT sanction timeline for the Apollo Healthtech demerger, after June 24, 2026 creditor/shareholder approvals, and completion of the AHL FMCG slump-sale to Apollo Consumer Products (targeted ~Oct 1, 2026)
Demerger catalyst and hospital biz acceleration into focus
Apollo Hospitals reports Q1 FY27 on August 12 with the Healthtech demerger now approved; Street watches for occupancy stability and execution on 700-bed expansion against a backdrop of 13–14% guided organic growth.
The Setup
Apollo Hospitals enters Q1 FY27 reporting (ended June 30, 2026) with a major structural change approved but not yet separated: shareholders and creditors greenlit the Healthtech demerger on June 24, unlocking the fast-growing pharmacy-distribution and digital-health arms into a standalone entity targeted for Q4 FY27 listing. The pre-demerger print will still show the consolidated business—but the Street is now pricing in focused exposure to the core hospital operations post-separation. Meanwhile, management's 700-bed expansion and 13–14% organic revenue guidance frame expectations for the pure-play hospital business scaling ahead.
What to Expect
~₹6,400–6,700 Cr
13–14% organic growth pace; includes pre-demerger Healthtech contribution; Q1 FY26 (Apr–Jun 2025) healthcare services revenue was ₹2,935 Cr
~7–8%
Watch for impact of expansion spend and potential one-time demerger costs; Q1 FY26 profit was up 42% YoY
~65–67%
Was 65% in Q1 FY26; new bed ramp-up may pressure utilization initially
~₹1,75,000–1,80,000
Guided by tariff mix and case complexity; Q1 FY26 ARPP was ₹1,72,282 (+9% YoY)
Strong quarter: Revenue >6,600 Cr with occupancy holding at 67%+ and ARPP growth continuing 8–10% YoY; margin accretion (>7.5%) amid operating leverage. Weak quarter: Revenue <6,400 Cr, occupancy sliding below 64%, or margin compression driven by higher-than-expected demerger setup costs or bed-ramp drag.
On Track?
Apollo remains on its growth trajectory. Q1 FY26 saw consolidated revenue growth of 15% and profit surge 42% YoY; the company guided 13–14% organic expansion post-demerger. The 700-bed expansion (adding ~10% capacity) is on schedule and will begin flowing into occupancy once operationalized in later quarters of FY27. The key risk: Q1 and early Q2 may see occupancy dip as new beds come on-stream and ramp; management needs to reassure on utilization velocity and tariff realization to keep Street confidence. Demerger-related one-time costs should be flagged but are unlikely to derail the medium-term trajectory.
What the Street Says
Since Last Quarter (June 2026)
1 · Healthtech Demerger Approved (June 24)
Shareholders, secured creditors, and unsecured creditors all voted to approve the composite scheme of arrangement separating Apollo Hospitals' pharmacy-distribution and digital-health businesses into Apollo Healthtech Limited (AHTL). CCI and stock exchange approvals already in hand; NCLT nod received March 26. Listing targeted Q4 FY27. Significance: Removes overhang; signals management confidence in both entities' standalone potential.
2 · Dinesh Madhavan Resignation (May 30)
President – Group Oncology and International stepped down effective end of May 2026. Described as mutual. Significance: Routine executive move; no material operational red flag flagged by management.
3 · Board Meeting Scheduled (August 12)
Board will convene to consider and approve the unaudited Q1 FY27 financial results (standalone and consolidated). Significance: Standard quarterly governance; result announcement follows board approval.
4 · AGM Scheduled (August 25)
45th Annual General Meeting set for August 25, 2026 at 10:15 AM IST via video conferencing. Will cover adoption of audited accounts, dividend, director re-appointments. Significance: Routine; Ms. Rama Bijapurkar's reappointment as Independent Director already approved by Board in May for a second term.
What to Watch on August 12
1. Occupancy and bed ramp timing: Did utilization hold as new beds came online? Any guidance on Q2 and H2 occupancy as the full 700-bed pipeline runs? 2. ARPP and pricing power: Did tariff hikes and case-complexity mix drive 8–10%+ ARPP growth? Any commentary on competitive intensity in key metros? 3. Demerger separation progress and standalone hospital guidance: With Healthtech now approved and post-separation focused on core hospital operations, what is management's outlook for standalone EBITDA margins and return profiles once the separation completes (Q4 FY27)? Expect margin accretion and clearer capital allocation as the core business focuses on bed expansion and operational leverage. 4. Readiness for demerger listing: Any investor presentation or financials for AHTL's standalone performance; timeline clarity for Q4 listing?
Apollo Hospitals reports Q1 FY27 on August 12 into a market that has already approved the Healthtech demerger and is now pricing the core hospital business on its own merits. The Street's Strong Buy stance hinges on 13–14% organic revenue growth, stable-to-improving occupancy as 700 new beds ramp, and margin accretion from operating leverage. The pre-result print will still show the combined entity, but management's commentary on standalone hospital trajectory post-demerger—and reassurance on occupancy velocity and tariff realization—will dominate the call. Execution on the bed expansion and investor clarity on Q4 FY27 demerger timing remain the key catalysts.