Apollo Hospitals Enterprise is embarking on a significant expansion, planning to add approximately 4,400 new beds to its network over the next five years. This initiative is part of a broader strategy to meet the rising demand for private healthcare services across India, while also bolstering its digital health platforms and attracting more international patients.
Accelerated Growth and Digital Profitability
The hospital operator recently commissioned four new facilities, adding around 855 beds to its capacity. The projected expansion will see roughly 3,600 of the planned 4,400 beds operational within the next half-decade. The company anticipates funding the remaining capital expenditure of approximately ₹5,100 crore through internal accruals.
A key driver for this accelerated growth is the strong performance of Apollo HealthCo, which encompasses the company's omni-channel pharmacy and digital health platform. Apollo HealthCo reported its first full year of profitability in FY26, prompting Apollo Hospitals to move forward with a proposed demerger of its pharmacy and digital health businesses. This demerger aims to create a separately listed consumer healthcare platform by Q4 FY27, subject to regulatory approvals, enabling a sharper focus and accelerated growth.
Strategic Focus and Financial Performance
For the fiscal year 2026, Apollo Hospitals reported a consolidated revenue of ₹25,229 crore, marking a 16% year-on-year increase. Profit after tax saw a substantial 34% rise to ₹1,942 crore. The healthcare services business contributed ₹12,555 crore, up 13%, while Apollo HealthCo's revenue reached ₹10,808 crore, an increase of 19%.
Chairman Prathap C. Reddy emphasized the company's long-term strategy to expand access to advanced healthcare, particularly in Tier-II and Tier-III markets. This commitment aims to bring high-quality medical services closer to underserved communities. Recent commissions include a 400-bed smart hospital in Hyderabad and a 270-bed facility in Sonarpur, Kolkata, both opened in April 2026.
Medical Value Travel and Specialized Care
Apollo Hospitals is also experiencing robust growth in medical value travel, attracting international patients from Africa, the Middle East, Bangladesh, and Southeast Asia. India's improving clinical capabilities, lower treatment costs, and growing demand for specialized procedures such as oncology, organ transplants, cardiac sciences, and robotic surgeries are significant factors in this trend.
The group's focus on specialized treatments was evident throughout the year, with notable growth in complex procedures across oncology, neurosciences, transplantation, and emergency care. The Jubilee Hills hospital in Hyderabad alone surpassed 2,000 robotic surgeries. As of March 2026, Apollo operated 8,131 beds with an occupancy level of 68% in the fourth quarter. Average revenue per occupied bed (ARPOB) in healthcare services increased by 12% year-on-year to ₹71,206 during the quarter.
In other developments, Apollo 24/7's gross merchandise value exceeded ₹2,037 crore in FY26, with an average daily order run-rate of approximately 69,000 across pharmacy, diagnostics, and consultations. The company also expanded its pharmacy network by 176 stores, reaching a total of 7,289 outlets. Additionally, Apollo Cradle and Fertility merged with Cloudnine, creating an integrated maternity and fertility care platform valued at ₹1,550 crore.