Apollo Hospitals Eyes Apollo HealthCo IPO by Q4 FY27, Plans Rs 8,300 Crore Bed Expansion

Apollo Hospitals, India's largest hospital chain by revenue, is strategically positioning itself for future growth. Group Chief Financial Officer Krishnan Akhileswaran confirmed that Apollo HealthCo is on track for an independent listing by the fourth quarter of the financial year 2027. This follows a recent approval from the Competition Commission of India for restructuring its group entities – Apollo HealthCo, Keimed, and Apollo Healthtech – aimed at unlocking shareholder value and fostering operational synergies.

Alongside the IPO plans, Apollo Hospitals is undertaking a substantial capacity expansion. The company plans to add approximately 3,650 operating beds over the next five years, bringing its total to over 13,000. This expansion requires an investment of Rs 8,300 crore, of which Rs 5,800 crore is yet to be incurred. New hospitals are slated for development in tier-1 cities and metros within the next 18 months, utilizing both greenfield (new construction) and brownfield (expansion of existing sites) projects. These ambitious plans will be financed entirely through internal accruals.

Financially, the company reported strong performance for the September quarter (Q2 FY25), with consolidated revenue rising 13% year-on-year to Rs 6,304 crore, EBITDA increasing 15% to Rs 941 crore, and net profit growing 26% to Rs 477 crore. For the first half of FY25, revenue grew 14% to Rs 12,146 crore and net profit surged 33% to Rs 910 crore. Growth was broad-based across healthcare services, diagnostics, and the digital/pharmacy business under Apollo HealthCo.

Impact This news carries significant weight for investors. The planned IPO of Apollo HealthCo could unlock substantial value and provide fresh capital for further ventures. The aggressive bed expansion signals strong confidence in the Indian healthcare market and aims to solidify Apollo Hospitals' dominant position, potentially leading to increased market share and revenue growth. The company's strong financial performance further bolsters investor confidence. Rating: 8/10

Difficult Terms: * Pan-India: Operating across the entire country of India. * Hospital chain: A group of hospitals owned and managed by a single company. * Subsidiary: A company controlled by a holding company. * IPO (Initial Public Offering): The first time a private company offers its shares to the public. * Restructuring: Reorganizing the company's structure or operations to improve efficiency or unlock value. * Shareholder value: The benefit or return provided to the owners (shareholders) of a company. * Synergies: The combined effect being greater than the sum of individual effects, often achieved through collaboration or integration. * Operating beds: Hospital beds that are actively available for patient use. * Investment: Committing money or capital to an enterprise with the expectation of financial return. * Fiscal: Relating to financial matters, typically referring to a fiscal year (a 12-month accounting period). * Greenfield projects: Building new facilities from the ground up on undeveloped land. * Brownfield projects: Developing or redeveloping sites that have been previously used, often involving upgrades or expansions. * Internal accruals: Profits generated by a company that are retained and reinvested back into the business, rather than being distributed as dividends. * Consolidated revenue: The combined total revenue of a parent company and all its subsidiaries. * EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operational profitability before accounting for financing, taxes, and non-cash expenses. * Net profit: The profit remaining after all expenses, interest, taxes, depreciation, and amortization have been deducted from revenue. * Healthcare services: Medical treatments, procedures, and care provided by healthcare facilities. * Diagnostics: Medical tests and examinations used to identify diseases or conditions. * Digital business: Operations or services conducted via digital platforms and technologies. * Occupancy: The percentage of available hospital beds that are occupied by patients at a given time.