• Operating margin targets: Management expects a steady-state margin of 24% alongside a sustainable occupancy rate of 74% as new beds become operational. A planned structural cost reduction of 150 basis points is projected to take established hospital EBITDA margins to 25% over the next 18 months.
• Capex and expansion: The company has mapped out an ₹8,000 crore capex plan to add 5,800 beds over the next five years. Funding will rely primarily on existing reserves and annual free cash flows of approximately ₹800 crore, with debt added only toward the end of the expansion cycle.
• Subsidiary business turnaround: Apollo 24/7 is on track to achieve sustainable profitability in the upcoming quarter. Apollo Health and Lifestyle (AHLL) reported revenue of ₹499 crore and an EBITDA of ₹49 crore, supported by 60% growth in diagnostics.
• Demerger and international revenue: International patient revenue grew by 24% and is projected to reach 30% of revenue supported by the upcoming Gurugram hospital and Navi Mumbai airport opening. The corporate demerger is expected to conclude around March or April.