Apollo Hospitals Targets ₹2,000 Crore Growth in Preventive Healthcare

Apollo Hospitals Targets ₹2,000 Crore Growth in Preventive Healthcare

Apollo Hospitals Ltd has reported a steady performance for the third quarter of 2026, meeting market expectations. Executive Vice Chairperson Suneeta Reddy stated the company followed its strategic plan closely, achieving 17% growth in consolidated revenue, which reached ₹6,477 crore. Profit also saw a significant 35% jump to ₹502 crore.

Specialized Care Drives Revenue

The company’s growth was fueled by a combination of higher patient volumes, updated pricing, and more complex medical cases.

• Specialized Growth: Cardiac care grew by 20%, oncology by 18%, and gastroenterology by 17%.
• Complex Procedures: A shift toward robotic surgeries and organ transplants has increased the average revenue per patient.

Looking ahead, Reddy expects hospital revenue to continue growing at 17–18% as the company adds more capacity.

Expanding Capacity for Future Growth

Currently, existing hospitals are growing at a rate of 13–14%. New bed additions are expected to add another 3–4% to total revenue. While new facilities typically take about 24 months to reach stable profit margins, they are essential for long-term growth.

Reddy emphasized that focusing on complex medical cases serves as a “clinical differentiator,” setting Apollo apart from competitors through efficient system management.

Growth in Pharmacy and Diagnostics

Apollo’s other business segments also showed strong momentum:

• Pharmacy (Apollo HealthCo): This segment grew 20%, generating ₹2,827 crore. With over 7,000 locations, it is now India’s largest pharmacy network, adding 185 stores recently and processing 38,000 daily transactions.
• Diagnostics (AHLL): Revenue reached ₹467 crore. The company is now focused on upgrading its 2,457 diagnostic centers. By expanding high-end genetic testing and central labs, profit margins in this segment could rise from 10.8% to as high as 30%.

The ₹2,000 Crore Bet on Preventive Health

A major part of Apollo’s future strategy is preventive healthcare. The company is targeting a ₹2,000 crore business in this area to meet rising demand from:

• Elderly patients seeking long-term wellness.
• Millennials managing lifestyle-related diseases.
• Gen Z consumers dealing with stress-related conditions.

Reddy noted that the demand already exists; the goal now is to scale these services to cover roughly 10% of Apollo’s total patient base.

India as a Global Healthcare Hub

Reddy also highlighted the potential for medical tourism. With the Union Budget proposing five new medical tourism hubs, Apollo aims to attract more international patients. India can provide world-class medical care at a fraction of global costs, creating a major opportunity to earn foreign exchange.

With a growing need for quality hospital beds across Tier 2 cities, Reddy believes the healthcare sector has a “growth runway” that could last for the next 20 years.