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Apollo Hospitals shares hit record on plan to list pharmacy, digital biz
Shares of Apollo Hospitals Enterprise Ltd. surged over 4 per cent to hit a record high on Tuesday, after the company said it will spin off and separately list its digital health and pharmacy unit within 18 to 21 months.
The hospital firm's stock rose as much as 4.42 per cent during the day to a life high of ₹7,569.5 per share. The stock pared gains to trade 3.5 per cent higher at ₹7,500 apiece, compared to a 0.22 per cent advance in Nifty 50 as of 9:46 AM.
Shares of the company saw their steepest intraday gain since November 7 last year. The counter has fallen 2.8 per cent this year, compared to an 8.2 per cent advance in the benchmark Nifty 50. Apollo Hospitals Enterprise has a total market capitalisation of ₹1.08 trillion.
Apollo Hospitals to list digital health, pharmacy unit
Apollo Hospitals plans to demerge its omnichannel pharmacy distribution, Apollo 24|7 digital platform, and remote telehealth division into a new entity, according to an exchange filing on Monday. Simultaneously, Keimed Pvt Ltd will be merged into the same entity.
This move will allow Apollo Hospitals shareholders to directly own shares in the newly created, integrated healthcare entity, the company said in the statement.
The combined company is projected to have revenues of approximately ₹16,300 crore in the financial year 2024–25. It aims to reach a revenue run-rate of ₹25,000 crore by the end of the financial year 2026-27, with a gross merchandise value (GMV) of ₹28,000 crore and targeted Ebitda margins of around 7 per cent, according to the investor presentation report. The listing of the entity is expected to take place within 18 to 21 months.
Under the scheme, shareholders of AHEL will receive 195.2 shares of the new company for every 100 shares held in AHEL.
In addition, subject to regulatory approvals, AHEL also plans to increase the new entity's stake in Apollo Pharmacies Ltd by acquiring the remaining 74.5 per cent stake in Apollo Medicals Pvt. Ltd (AMPL), of which APL is currently a wholly owned subsidiary.
JM Financial on Apollo Hospitals
With approximately 6,600 outlets, 1.4 times that of the second-largest player, the company operates the largest pharmacy network in India. The integration of the Apollo 24|7 online platform and the merger with Keimed are expected to accelerate growth, enabling expansion in online sales and strengthening of private label offerings, the brokerage said.
With a better product mix, realisation of synergies, and increased operating leverage, segmental Ebitda margins are projected to improve from 1.8 per cent to 6.5 per cent by financial year 2027–28, supported by a top-line compound annual growth rate (CAGR) of 20.2 per cent between financial years 2024–25 and 2027–28, it said.
Apollo Hospitals Q4 results
The company reported a consolidated net profit of ₹389.6 crore for the quarter ended March 31, 2025 (Q4 FY25), marking a growth of nearly 54 per cent from ₹253.8 crore in the year-ago period (Q4 FY24).
Revenue from operations in Q4 FY25 stood at ₹5,592.2 crore, up around 13.11 per cent from ₹4,943.9 crore in Q4 FY24. On a quarter-on-quarter basis, revenue rose moderately from ₹5,526.9 crore in Q3 FY25.
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