Apollo Hospitals posted a robust Q2 FY27 with revenue rising 23% to Rs 7,615 crore and profit surging 32% to Rs 630 crore. The company successfully completed its Rs 1,550 crore divestment of fertility and specialty hospital assets to Cloudnine, while simultaneously announcing key leadership transitions and management appointments.
Apollo Hospitals Q2 FY27 Revenue Hits Rs 7,615 Crore
Profit rises to Rs 630 crore as the company completes a key Rs 1,550 crore divestment deal.
Reader Takeaway: Strong operational growth and asset monetization bolster the balance sheet, despite leadership changes at the top level.
What just happened
Apollo Hospitals Enterprise has reported strong Q2 FY27 earnings, with revenue touching Rs 7,615 crore, a 23% increase over the previous year. Profit after tax (PAT) rose significantly by 32% to reach Rs 630 crore. Alongside the financial results, the company finalized the divestment of its Apollo Specialty Hospitals and Apollo Fertility Centre businesses to Kids Clinic India Ltd (Cloudnine). The deal is valued at approximately Rs 1,550 crore, split between Rs 765 crore in cash and a 9.9% equity stake in the acquiring entity.
Why this matters
The successful divestment allows Apollo to unlock value from non-core assets while retaining a strategic interest in the pediatric and fertility space through its new stake in Cloudnine. Operationally, the hospital business remains strong, with bed occupancy rising to 73% compared to 69% in the same quarter last year. The 14% growth in inpatient volumes and 8% increase in Average Revenue Per Occupied Bed (ARPB) signal sustained pricing power and demand for the chain’s medical services.
Management and Governance
Dr. Madhu Sasidhar will step down as President & CEO of the Hospitals Division on November 14, 2026. The company has moved to fill this gap by appointing three new senior management personnel: Dr. Ritu Garg as CEO (Multi Regions), Mr. Anand Wasker as CBO (International), and Dr. N. Venkatesan as Chief Procurement Officer.
What to track next
The market will watch for the commissioning of the new 470-bed Gurugram facility, expected in Q3 FY27. Additionally, investors should monitor how the new management team steers the company toward its goal of adding 5,800 beds over the next five years, while keeping an eye on how upcoming labor code regulations impact accounting liabilities.