Apollo Hospitals Targets Mid-Teen Revenue Growth, Plans Major Capacity Expansion.

Apollo Hospitals Enterprise Ltd is aiming for sustained mid-teen revenue growth in the coming years, driven by a strategic focus on capacity expansion, high-end specialties, and new hospital developments.

“We don’t provide specific guidance, but we believe we can sustain our momentum. Our focus is not just on double-digit growth but on mid-teen top-line growth,” said Krishnan Akhileswaran, Group CFO of Apollo Hospitals Enterprise Ltd.

Expansion Within Existing Facilities

Apollo Hospitals sees room for growth within its current network, with system-wide occupancy at 68%. The company is focusing on high-end specialties such as cardiology, oncology, neurosciences, and gastroenterology, which have shown stronger growth than overall hospital volumes. “While our overall volume growth for the past nine months has been around 8%, these focused specialties have grown by 12%,” Akhileswaran noted.

Oncology remains a key driver, with Apollo being India’s largest provider in the field. The segment continues to grow at over 20% annually, fueled by rising cancer cases and advanced treatment options such as proton therapy.

Aggressive Capacity Expansion

Apollo Hospitals is set to add more than 3,500 beds over the next two years, with 1,700 beds scheduled to become operational next year. New hospitals will open in Pune, Kolkata, and a dedicated cancer hospital in Delhi in the second half of next year. Additionally, a 450-bed hospital in Gurugram and another in Hyderabad will be operational by the end of 2025.

“This expansion will significantly increase our capacity over the next two years,” Akhileswaran said.

Self-Funded ₹4,400 Crore Investment

Apollo will finance its ₹4,400 crore expansion plan entirely through internal accruals. The company maintains a strong financial position, with net debt on the hospital side at zero.

“In the past, expansion was challenging due to higher debt. But today, we have a strong internal accrual engine, a large portfolio of assets, and significantly higher revenue and profitability, which allows us to fund our growth independently,” Akhileswaran added.

With a strong balance sheet and a robust growth strategy, Apollo Hospitals is poised to solidify its leadership in India’s healthcare sector.

HBL