Apollo Hospitals Enterprise Ltd anticipates sustaining its current growth momentum, projecting mid-teen revenue growth in the coming years. The company aims to achieve this through a three-pronged strategy: expanding capacity within existing hospitals, enhancing its focus on high-end specialties, and adding new hospitals to its network.
“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,” Krishnan Akhileswaran, Group Chief Financial Officer, Apollo Hospitals Enterprise Ltd, told businessline.
Despite its extensive presence, Apollo Hospitals sees significant room for growth within its existing facilities. “Our system-wide occupancy is currently at 68 per cent, indicating capacity for further expansion,” he added.
Emphasis on high-end specialties
The company’s emphasis on high-end specialties such as cardiology, oncology, neurosciences, and gastroenterology are key drivers of this growth. “While our overall volume growth for the past nine months has been around 8%, these focused specialties have grown by 12%. This focus will help sustain our momentum,” Krishnan said.
Among these, oncology has been a major growth driver, fueled by the rising incidence of cancer and the need for advanced medical treatments. “We have systematically invested in oncology by recruiting top medical professionals, developing comprehensive clinical programs, and investing in high-end technology such as proton therapy, where we were pioneers in India. Today, we are the country’s largest oncology provider, and the segment continues to grow over 20% annually, making it our fastest-growing specialty alongside neurosciences,” he noted.
Apollo Hospitals is also set to expand its capacity significantly, with new hospitals planned in multiple locations. “Starting from the second half of next year, we will open hospitals in Pune, Kolkata, and a dedicated cancer hospital in Delhi. These facilities will become operational in H2,” Krishnan stated.
Additionally, by the end of next year, two large hospitals—a 450-bed facility in Gurugram and another in Hyderabad—will also be operational. “We are adding more than 3,500 beds, with 1,700 beds scheduled for next year. About half of these will be added in the coming year, while the rest will be made operational the following year. This expansion will significantly increase our capacity over the next two years,” he added.
Funding
Krishnan also highlighted that the company will fund the entire ₹4,400 crore expansion plan through internal accruals. Apollo Hospitals currently maintains a strong debt-to-EBITDA 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,” he stated.