Apollo Hospitals eyes 15% growth; to expand footprints in metros, tier-I cities

Apollo Hospitals Enterprise (AHEL) is expecting a topline growth of over 15 per cent per annum till 2030 and will be increasing its presence in metros and Tier-I cities in India, Krishnan Akhileswa­ran, chief financial officer (CFO).

The growth will be driven by all three segments, including hospitals, diagnostics, and digital.

“We would continue to grow at over 15 per cent topline as a combination of all three segments. By 2030, we would continue to be the largest player in all three divisions. In the next five years, we will be increasing our opportunities in metros and Tier-I cities in India,” Akhileswaran said.

On the hospital front, the company is looking to increase volume growth across key specialities, including cardiology, oncology, and neurosciences. “These are the three areas that we believe will do much better in the next year,” he said.

The company’s focus is to increase the occupancy rate in the hospitals from the current 66 per cent to over 70 per cent over the next financial year. As part of its expansion plans, AHEL is adding seven new hospitals with 2,300 beds over the next three years, with a capital expenditure of over Rs 3,400 crore for the years 2025-27.

Apollo HealthCo, the digital healthcare and omni-channel pharmacy platform, achieved breakeven during the third quarter of the current financial year. The business includes both offline pharmacy and a digital platform. About 119 net new stores were opened in this quarter, taking the total number to 5,790.

“The offline pharmacy business holds 7.7 per cent of our margins. Now, with HealthCo achieving the overall combined breakeven, our focus is to see how we can take online business profitable in the next six quarters. “We are targeting over 20 per cent growth continuously in HealthCo,” Akhileswaran added.

“In hospitals, our focus is to see early teen growth. Retail segment also present a good opportunity. Within retail, diagnostics saw a 19 per cent growth this quarter. From being among the top five, we aim to become one of the top three. We are the largest integrated healthcare provider in the country,” he added.

Recently, Apollo Cancer Centre in Bengaluru also launched India’s first AI-Precision Oncology Centre (POC). The AI-POC provides a platform for oncologists, patients, and caregivers to attain optimal outcomes efficiently, harnessing the extensive capabilities offered by artificial intelligence. Apollo introduced Hyderabad’s first Homecare Recovery Program integrated with Cardiac Surgery, underscoring the company’s dedication to enhancing patient care beyond the confines of traditional hospital settings. Business Standard