Latest news with #ApolloHealthco
Mint
13 hours ago
- Business
- Mint
Apollo Hospitals: Simplifying corporate structure could lead to rerating
Apollo Hospitals Enterprise Ltd has decided to give its existing shareholders direct ownership of its subsidiary, Apollo Healthco Ltd. Apollo Healthco will have online, offline, retail, and wholesale pharmacy segments under one umbrella, apart from the digital consultation and treatment business of Apollo 24|7. The new entity will have nearly 667 million equity shares with a face value of ₹2 each. Apollo Hospitals' shareholders will receive 195.2 shares of Apollo Healthco for every 100 shares they hold. Apollo Healthco's listing is likely in 18-21 months. The exercise would mean that Apollo Hospitals would only have a 17.5% stake (direct plus indirect through its other subsidiaries) in Apollo Healthco, as against the earlier plan of having a 59.2% stake. Also Read: Will Torrent Pharma's big bet on JB Chemicals pay off? The two separate listed entities with dedicated leadership will allow the management teams to sharpen their focus on hospital and pharmacy businesses separately. Following the announcement, Apollo Hospitals shares touched a new 52-week high of ₹7,584.50 apiece on Tuesday. Growth potential Is there more steam left based on the separate valuation of the two businesses? Well, the answer depends on the management's ability to achieve the aspirational targets for its pharmacy business—Apollo Healthco. According to the company's presentation, Apollo Healthco's FY25 revenue (pro forma without the restructuring) was ₹16,377 crore. The management aspires for an operating revenue of ₹25,000 crore in FY27, which would mean a compound annual growth rate of 24% over the two years from FY25. This would require a significant pick-up in growth, given that the FY25 revenue had increased 19% year-on-year. Excluding Apollo 24|7 losses, the FY25 Ebitda margin was already about 6%. So, the Ebitda margin target of 7% in FY27 with operational efficiencies is achievable as it would only require Apollo 24|7 to achieve breakeven. If management is able to deliver on the aspirational numbers, it would mean an Ebitda of ₹1,750 crore in FY27. Based on the EV/ Ebitda multiple of 30x assigned by analysts at Nomura, the market capitalization attributable to Healthco is about ₹50,000 crore, as the net debt is small. Ebitda stands for earnings before interest, taxes, depreciation, and amortization. Also Read: Tech Mahindra: What can upset its apple cart Apollo Hospitals' market capitalization is now ₹1.08 trillion. So, the residual market capitalization of Apollo Hospitals, after deducting the valuation of Apollo Healthco is at ₹58,000 crore. With a net debt of around ₹5,000 crore, the implied EV/Ebitda valuation multiple of Apollo Hospitals comes to 20x based on Nomura's estimate of ₹3,150 crore Ebitda for FY26 (Apollo Health and Lifestyle having sugar clinic, dental clinic, etc. not considered due to its small size). Nomura's fair value multiple for Apollo Hospitals at 25x is higher than the derived implied multiple at 20x, implying room for upside. The growth prospects of standalone Apollo Hospitals are strong. Its future growth is likely to be largely led by capacity additions, unlike the last three years to FY25, when it relied on average revenue per occupied bed (Arpob) for growth. Apollo Hospitals had 8,025 operating beds at FY25 end. This is likely to rise by more than 50% as it plans to add nearly 4,400 beds over the next 3-4 years to address supply-side constraints, even though getting more patients is also crucial. The management expects to maintain the Ebitda margin of the hospital business at 24% even after the large expansion. Also Read: Nykaa's premium bet: A smart strategy if it delivers The hospital business has a higher Ebitda margin but is more capital-intensive in nature, whereas the pharmacy business has a lower Ebitda margin but lower capital requirements. Besides, the separate listing of Apollo Healthco would mean that the shareholders of Apollo Hospitals would have an option to choose the business they want to remain invested in.
Bloomberg
2 days ago
- Business
- Bloomberg
Apollo Hospitals Shares Jump to Record on Healthtech Arm Spinoff
Shares of Apollo Hospitals Enterprise Ltd., India's largest healthcare services firm, surged to a record Tuesday after it announced plans to merge its digital health and pharmacy businesses and spin them off as a new listed entity. The stock jumped as much as 4.7% after it said late Monday it will merge pharmacy business Apollo Healthco Ltd. and wholesale distributor Keimed Pvt. with Apollo Healthtech and list the newly created unit in 18 to 21 months.
Reuters
2 days ago
- Business
- Reuters
India's Apollo Hospitals to spin off digital health, pharmacy unit in 18-21 months
June 30 (Reuters) - Indian hospital chain Apollo Hospitals ( opens new tab said on Monday it will separately list its digital health and pharmacy unit, Apollo Healthco, within 18 to 21 months as part of a reorganisation.
Mint
30-05-2025
- Business
- Mint
Apollo Hospitals to deepen presence in Bengaluru, Hyderabad
Apollo Hospitals Enterprise Ltd is increasing its penetration in Bengaluru and Hyderabad through a mix of greenfield and brownfield projects, as it embarks on a large-scale expansion plan in FY26. The hospital chain has approved a brownfield expansion of 160 beds across Jubilee Hills and Secunderabad facilities in Hyderabad, as well as acquired 2.53-acre land in Sarjapur, Bengaluru for a 500-bed greenfield hospital. These are expected to be operational in 3-4 years. It has also acquired an existing 200-bed hospital in Sarjapur, which will be operational in the next two quarters, the company said. This is in addition to the chain's planned expansion in Gurugram, Hyderabad, Kolkata and Pune, which it is commencing in FY26. Also read: IHH Healthcare arm increases damages sought from Daiichi Sankyo to ₹11,800 crore over Fortis stake dispute 'Over the next one year, we will be having quite a bit of expansions coming up," chief financial officer Krishnan Akhileswaran told Mint. The chain will be adding over 4,300 beds over three to four years beginning FY26, with a total capital outlay of over ₹8,000 crore. In the fourth quarter ended March, the company's consolidated revenues rose 13% year-on-year to ₹5,592 crore. Consolidated ebitda increased 20% over a year earlier to ₹770 crore, while profit after tax (PAT) rose 54% to ₹390 crore. For FY25, Apollo's consolidated revenues rose 14% on-year to ₹21,794 crore, while ebitda grew 26% to ₹3,022 crore. PAT increased 61% to ₹1,446 crore. Also read: Zydus bets big on vaccines and medtech Hospitals business grows The company's hospitals business grew 10% year-on-year in Q4 to ₹2,822 crore, while ebitda grew 16% to ₹686.3 crore. The business reported an ebitda margin of 24.3%. 'All of this is clearly representative of the operating leverage that we have from the same facilities that we are operating out of. No new facilities added as yet," Krishnan said. The growth from the company's bed additions starting this year will be significantly seen in FY27, he said. The company saw a dip in volumes due to the loss of patients from Bangladesh. However, the current base is the lowest it can get to, Krishan said. Also read: Access to obesity management not available to most Indian patients: World Heart Federation report The company expects Apollo 24/7 to be profitable by the end of FY26. It is focusing on 20% growth for Apollo Healthco, its digital healthcare and omnichannel pharmacy arm in FY26. 'The focus [for Apollo Healthco] is more on revenue and profitability," Krishnan said.
News18
21-04-2025
- Business
- News18
A Medicine Alternative To Blinkit, Zepto: Apollo Healthcare CEO Discusses Expansion Of 19-Minute Delivery Model
Last Updated: The company is working to make the availability of medicines in both acute and chronic cases faster and currently, in Delhi-NCR, 48 per cent orders are delivered within 19 minutes while across India, 82 per cent orders are delivered within a day If you can buy a packet of chips in 10 minutes, why not your blood pressure pills? What Blinkit, Zepto and other quick-commerce delivery apps did for groceries, Apollo Pharmacy is trying to do for medicines with just 19-minute delivery. However, stakes are much higher in the e-pharmacy business, which involves delivering life-saving drugs, Madhivanan Balakrishnan, chief executive officer, Apollo Healthco, told News18 in an exclusive interaction. Just like buying groceries, people are now buying medicines more often in smaller amounts instead of planning and buying in bulk. But at some level, the comparison between grocery apps and Apollo may become 'fundamentally flawed", Balakrishnan said, while discussing the company's plan to strengthen its 19-minute medicine delivery. Apollo Healthco is the parent company of Apollo Pharmacy and Apollo 24|7, an omni-channel health platform that offers online medicine delivery, online consultations, home lab tests and digital health records among other features. 'Stakes are much higher in healthcare delivery. Delayed medicine isn't just an inconvenience as it can directly impact someone's well-being." There are a lot of 'nuances and sensitivities" while delivering life-saving drugs, Balakrishnan said, adding: 'But, with Apollo's legacy in pharmacy, an integrated supply chain, our technology and a 6,500-strong store network, we are well placed to lead this shift allowing us to deliver speed with trust." The company said it is working to make the availability of medicines in both acute and chronic cases faster and currently, in Delhi-NCR, '48 per cent orders are delivered within 19 minutes" while across India, 82 per cent orders are delivered within a day. The major difference between grocery apps and Apollo is the delivery of 'prescription medicines" which are often time-sensitive and critical for a consumer's health. Balakrishnan believes that the company's quick delivery model is designed to meet that urgency—without compromising on safety or compliance. 'Every prescription order goes through a robust, multi-layered validation process. The moment an order is placed, it's digitally screened for prescription authenticity, ensuring it meets regulatory standards." After being verified digitally, the company told News18 that each prescription is reviewed and approved by a registered pharmacist before dispatch, adding critical human oversight to the automated flow. All of this, the company claims, is tightly integrated with its real-time inventory systems, which help locate the nearest store for fastest fulfilment. Quick Delivery Biz Set To Expand Soon, the quick delivery business will be expanded further. 'Our aim is to strengthen our quick delivery offerings profitably to more cities in the days to come," the CEO said. The quick delivery service is currently live in major metros like Delhi/NCR, Hyderabad, Bengaluru, and Kolkata, including some parts of Chennai and Mumbai. 'The service will be rolled out in 10 more cities over the next six months, with a goal of covering an additional 5,000 pin codes by year-end," he said, explaining that the next phase will see them expand to 20 additional cities. 'To enable this, we are investing in technology and expanding our retail pharmacy footprint too." How Did The Journey Start? Apollo 24|7 was launched just before the Covid-19 pandemic in 2020. 'The platform began with a two-hour delivery promise, rooted in the insight that nearly 62 per cent of health needs are acute and demand immediate attention." 'Quick delivery has always been at the core of our proposition and speed became the cornerstone of our approach from day one. Last year, we upped the game and launched 19-minute delivery with an understanding that acute medical needs require quick delivery." The company initiated the pilot in Delhi-NCR, and upon receiving a favourable response, extended it to five other cities. 'Quick commerce behaviour of more sporadic and frequent orders vis-à-vis planned bulk orders is being observed in pharmacy purchases as well. This has accelerated the need for real-time inventory visibility, automated prescription checks, optimised rider routing, and micro-warehousing for faster last-mile delivery." Backed by Apollo's supply chain expertise and pharmacy network, the company believes it is well-placed to bring efficiency to doorstep delivery. 'Continuous investments in technology, infrastructure, and operations have since helped us evolve into a truly omni-channel healthcare platform—offering not just medicines, but doctor consultations, diagnostics, wellness products, and more. We want Apollo 24|7 to become India's first port of call for all things health." Overall, Balakrishnan said the primary aim is to make sure 'we are able to deliver 90 per cent of orders the same day and we are close to achieving that milestone. At present, we are at 82 per cent." He added that currently in Delhi/NCR, 48 per cent orders are delivered within 19 minutes. In the brick-and-mortar segment, Apollo is the largest pharmacy chain in the country, with 80 per cent of India's population within a 40-minute reach of its services. According to the company's data, close to nine lakh transactions happen in these stores daily. 'We are focused on deepening our presence in high-demand Tier 2 and Tier 3 cities, while working towards placing an Apollo Pharmacy within five minutes of every household and workplace in India's top metros." How Is e-Pharmacies Business Evolving? The omni-channel approach is gaining traction, with digital-first players expanding offline and vice versa, combining digital speed with physical trust. 'This is especially relevant in Tier 2 and 3 cities, where consumers still do not have an online-first mindset." However, scaling up presents challenges. 'Partnering with licensed pharmacies instead of relying solely on dark stores ensures trust and adherence to norms," Balakrishnan said, explaining that the company relies on analysing data, forecasting demand and streamlining the delivery process. News18 India delivers breaking news, top headlines, and live updates on politics, weather, elections, law and crime, much more. Stay informed with real-time coverage and in-depth analysis of current events across India. Location : New Delhi, India, India First Published: April 21, 2025, 15:46 IST News india A Medicine Alternative To Blinkit, Zepto: Apollo Healthcare CEO Discusses Expansion Of 19-Minute Delivery Model
