I have been looking at your numbers.
Been trying to build a financial model for myself, what I see is the revenue from the hospitals business is around 55% that of the pharmacy, digital, retail and diagnostic revenue.
The digital and pharmacy businesses are however low margin ones right?
This is what I understood from their Arrangement. This demerger that has been approved.
sharing q1 fy27 update from todays earnings call.
- apollo’s main hospital business continues to perform strongly. established hospitals earned a healthy 25.9% ebitda margin which gives the company enough cash to invest in new hospitals and digital healthcare.
- newer businesses are improving but they are not fully profitable yet. HealthCo reported ₹2,977 cr in revenue and ₹171 cr ebitda. apollo 24/7’s cash loss reduced to ₹10 cr but cash breakeven was pushed to the next quarter.
- insurance is still the main area to watch and management expects it to reach breakeven by q3 fy27.
- new hospitals also reported a ₹38 cr ebitda loss in Q1, and apollo expects total new hospital losses of ₹150 cr for fy27.
in simple terms the old hospital business is strong and is funding the next phase of growth. things to watch is whether the digital, insurance and new hospital businesses can become profitable as they scale.
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