Apollo Hospitals expects restructuring to conclude by Q4FY27: CFO

Apollo Hospitals CFO says the restructuring and listing of its digital and pharmacy businesses will be completed by the last quarter of FY27, after approvals from regulators including SEBI and NCLT.

Apollo Hospitals Enterprise Ltd (AHEL) has said that its planned restructuring to unlock the value of its omni-channel pharmacy and digital businesses, and to enhance shareholder returns, is expected to be over by the last quarter of 2026–27 (Q4FY27).

 

“We are waiting for the stock exchange approvals, which may come soon. Then, we will apply to the National Company Law Tribunal (NCLT). We should be able to complete everything by the last quarter of FY27. Listing of pharmacy and digital businesses will happen simultaneously,” said Krishnan Akhileswaran, group chief financial officer (CFO) at Apollo Hospitals.

 

The board approval for the restructuring was given in June 2025. The Competition Commission of India (CCI) also gave its clearance in September. The company said it is also expecting a no-objection certificate (NOC) from the Securities and Exchange Board of India (Sebi).

 

The newly-formed entity is expected to achieve a year-on-year (Y-o-Y) growth rate of 22–23 per cent, driven by the e-pharmacy segment and other business verticals. It would have a revenue target of ₹25,000 crore by FY27.

 

In June, the Chennai-based AHEL announced plans to spin off its digital health and pharmacy distribution businesses into a separate entity. It also drew plans to list the new entity within 18 to 21 months.

 

As part of the restructuring, the company’s omni-channel pharma and digital health business, Apollo HealthCo, will first be demerged from AHEL into a new entity. Following this, its pharma distribution arm, Keimed, will be merged into the new company. Its current revenue is around ₹16,300 crore.

 

The company has stated plans to achieve a revenue run rate of ₹25,000 crore by FY27 with 7 per cent earnings before interest, taxes, depreciation and amortisation (Ebitda) margins.

 

The entire process of restructuring is expected to be over with the listing of the new company.

 

The new entity will include the digital health platform Apollo 24/7, the offline pharmacy business of Apollo HealthCo, Keimed, and the telehealth services business.

 

In October, the Central Government Health Scheme (CGHS) adjusted reimbursement rates for 2,000 procedures by an average of 25–30 per cent.

 

When asked about this, Madhu Sasidhar, president and chief executive officer of AHEL, said, “It is in the right direction. The industry will benefit from this, as it is an upward revision of the reimbursement rates. We will have to continue to revise the rates because of the increase in costs due to inflation and the introduction of better therapies.”

 

During the July-September quarter of FY26, the company posted a consolidated net profit of ₹477 crore, up 26 per cent from ₹379 crore in the same period last year.

 

This was mainly driven by a rise in revenue of 13 per cent from ₹5,589 crore in Q2FY25 to ₹ 6,304 crore during the same period in FY26.

 

“In the second quarter, typically some cyclical business comes in some years, and hence, medical admissions were low in Q2FY26. We witnessed substantial growth in our cardiac, oncology, neurosciences, gastroenterology, and orthopaedics specialities, both in volume and revenue,” Sasidhar added.