Apollo Hospitals Q1 FY27 Results Analysis: Revenue Surges 21%, EBITDA Margin Expands 90 bps (APOLLOHOSP)

Apollo Hospitals Enterprise Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 7,043.50 Cr (+20.60% YoY) and PAT growth of +34.20% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue crossed Rs.7,000 Cr with broad-based growth of 20.6% YoY, while EBITDA margins expanded 90 bps YoY to 15.5%. Digital Health EBIT more than doubled, and occupancy improved to 70%, indicating strong operational momentum. New hospital losses are within guidance, and the announced divestiture and demerger provide catalysts for unlocking value.

Key Investment Insights

Key Positives

• Revenue grew 20.6% YoY to Rs.7,043.5 Cr, a record quarterly print.
• EBITDA grew 28.2% YoY to Rs.1,092.1 Cr, with margin expanding 90 bps YoY to 15.5%.
• PAT attributable to owners grew 34.2% YoY to Rs.580.7 Cr.
• Healthcare Services occupancy improved to 70% from 65% YoY, with revenue growing 22% YoY.
• Digital Health and Pharmacy EBIT more than doubled YoY to Rs.152.3 Cr, margin improving to 5.1%.
• Retail Health EBIT surged 219.7% YoY to Rs.22.7 Cr, with margin improving to 4.5%.
• Standalone revenue grew 22.5% YoY, and subsidiary contribution rose 55.3% YoY.

Risk Factors

• New hospitals recorded an EBITDA loss of Rs.38 Cr in Q1, though within the annual guidance of ≤Rs.150 Cr.
• Other expenses grew 26.7% YoY, outpacing revenue growth, partly due to new hospital pre-operative costs.
• HealthCo annualized revenue run-rate of ~Rs.11,908 Cr remains far from the Rs.25,000 Cr target for Q4FY27, requiring aggressive growth.