How has been the historical performance of Apollo Hospitals?

Revenue and Profitability Trends

Apollo Hospitals’ net sales have shown a strong upward trajectory, rising from ₹9,617 crores in March 2019 to ₹21,794 crores by March 2025. This represents a compound growth trend reflecting the company’s expanding market presence and service offerings. Total operating income mirrors this growth, with no other operating income reported, indicating a focus on core healthcare services.

Operating profit (PBDIT) excluding other income increased from ₹1,063 crores in 2019 to ₹3,022 crores in 2025, with operating profit margins improving to 13.87% in the latest fiscal year. The company’s profit after tax (PAT) also surged significantly, from ₹236 crores in 2019 to ₹1,446 crores in 2025, with PAT margins rising to 6.91%. Earnings per share (EPS) followed suit, reaching ₹100.55 in 2025, up from ₹16.97 in 2019, underscoring enhanced shareholder value.

Cost Structure and Expenditure

The company’s total expenditure excluding depreciation rose in line with revenue growth, from ₹8,554 crores in 2019 to ₹18,772 crores in 2025. Key cost components such as raw material costs and purchase of finished goods have increased proportionately, reflecting operational scale. Employee costs have also grown steadily, reaching ₹2,769 crores in 2025, indicative of investment in human capital essential for healthcare services.

Other expenses have similarly increased, consistent with the company’s expansion and inflationary pressures. Despite rising costs, Apollo Hospitals has maintained healthy operating margins, signalling effective cost management and operational efficiency.

Balance Sheet Strength and Asset Growth

Apollo Hospitals’ total assets have expanded from ₹11,289 crores in 2020 to ₹20,644 crores in 2025, driven by investments in fixed assets and capital work in progress. The net block of assets increased to ₹8,520 crores in 2025, up from ₹5,779 crores in 2020, reflecting ongoing capacity enhancement and infrastructure development.

Shareholders’ funds have grown robustly, reaching ₹8,212 crores in 2025 from ₹3,339 crores in 2020, supported by accumulated reserves and retained earnings. The book value per share has appreciated significantly, standing at ₹570.55 in 2025 compared to ₹239.32 in 2020, highlighting strong net worth growth.

Debt and Liabilities

Total debt increased to ₹5,275 crores in 2025 from ₹3,350 crores in 2020, with a notable rise in unsecured loans in recent years. Non-current liabilities have also increased, reflecting long-term borrowings and other obligations. Current liabilities have risen moderately, consistent with business scale. Despite higher debt levels, the company’s interest costs have remained relatively stable, suggesting manageable financing expenses.

Cash Flow and Liquidity

Operating cash flow has shown a positive trend, increasing from ₹1,292 crores in 2020 to ₹2,136 crores in 2025, supporting operational needs and capital expenditure. Investing activities reflect significant outflows, primarily due to capital investments, while financing activities have fluctuated, with a positive inflow in 2025 indicating fresh capital or borrowings. The company’s cash and bank balances have improved, closing at ₹1,360 crores in 2025, up from ₹467 crores in 2020, underscoring enhanced liquidity.

Summary and Investor Considerations

Over the past six years, Apollo Hospitals has exhibited consistent revenue growth, improved profitability, and strengthened financial position. The company’s ability to expand its asset base while maintaining healthy margins and generating positive cash flows reflects operational robustness. However, rising debt levels warrant monitoring, although interest expenses remain controlled.

Investors should note the company’s strong earnings growth and improving return metrics, balanced against the capital-intensive nature of the healthcare sector. The steady increase in book value per share and EPS indicates value creation for shareholders. Overall, Apollo Hospitals’ historical performance underscores its position as a leading healthcare provider with a solid foundation for future growth.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →