Apollo Hospitals to expand presence in metros with five new hospitals

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February 12, 2025 12:58 IST

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Apollo Hospitals Enterprise is set to expand presence in metro cities during FY26 with the addition of five hospitals that would add over 1,400 beds.

Apollo Hospitals

Image used for representation purpose only. Photograph: Adnan Abidi/Reuters

The expansion will include a 500-bed facility in Gurugram, a new hospital in Hyderabad, a women-focused cancer centre in Delhi along with additional facilities in Kolkata and Pune.

Krishnan Akhileswaran, Group chief financial officer (CFO) at Apollo Hospitals, said, “In FY26, we are adding five hospitals with over 1,400 beds, most of which will be started by the end of the year.

"The additions in Gurugram, Hyderabad, Delhi, Kolkata, and Pune will strengthen our presence in key metro cities where we already have a strong footprint.”

Overall, Apollo aims to add a total 3,512 beds across 11 locations over the next three-four years.

Apollo is also actively expanding its telemedicine services across three key segments: retail consultations through the Apollo 24/7 platform, government partnerships for district hospital support, and corporate collaborations with large public sector undertakings (PSUs).

Beyond domestic expansion, the company is also looking at tele-health growth in international markets.

“We have signed a deal with Mayapada Healthcare Group, Indonesia, which includes tele-ICU and tele-radiology services.

"We see tele-health playing a key role in our global engagements," Akhileswaran said.

Addressing the company’s focus on cancer care, Madhu Sasidhar, president and chief executive officer (CEO) of Apollo’s hospital division clarified that Apollo does not operate dedicated cancer units beyond its proton therapy centre in Chennai.

Instead, the hospitals maintain a flexible approach to cancer treatment, adjusting bed capacity as needed.

With a significant portion of cancer care shifting to outpatient services, Apollo aims to enhance treatment capabilities through integrated hospital networks.

“All our large hospitals are capable of handling oncology cases, as bed capacity is not an issue as and a major chunk of cancer care is shifting to outpatient settings,” Sasidhar added.

In response to the government’s recent announcement regarding public-private partnership (PPP) initiatives for cancer day care centres, the company said that Apollo is open to exploring such models if viable opportunities arise.

 

Apollo will continue to focus on non-hospital revenue streams, particularly diagnostics and retail healthcare.

Apollo Health and Lifestyle Limited (AHLL), which houses these businesses, recorded a 15 per cent revenue growth in Q3, with earnings before interest, taxes, depreciation and ammortisation (Ebitda) improving 18-22 per cent.

“The focus has been on pruning non-performing franchisees and improving business efficiencies.

"Our retail healthcare segment currently operates at 9 per cent Ebitda, with a target to reach 15 per cent next year,” Akhileswaran said.

As of December 31, 2024, Apollo Hospitals has 7,996 beds across its network, excluding managed and AHLL beds.


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