Apollo Hospitals Enterprise Limited — PPTs, 30-06-2025: Investor Presentation

1. Financial Highlights:

Apollo HealthCo Ltd (AHL) along with Keimed and Apollo 24|7 posted a combined FY25 revenue of ~₹16,267 Cr with a gross merchandise value (GMV) of ₹18,196 Cr. The group reported EBITDA margins around 8.2% at the consolidated level. Keimed alone contributed ₹7,098 Cr revenue with a strong 15% market share and 17% revenue growth year-on-year. AHL’s omnichannel pharmacy business generated ₹8,014 Cr in revenues at 7.6% EBITDA margins, serving 6,626 offline stores and 40 mn+ digital platform users. The proforma balance sheet shows a combined net worth of ₹3,425 Cr and net debt of ₹1,934 Cr following Advent's investments and acquisitions.

2. Strategic Initiatives & Growth Drivers:

The company is unlocking value by consolidating omnichannel pharmacy distribution, Apollo 24|7 digital platform, and remote telehealth divisions into a newly listed entity (NewCo), targeting a revenue run-rate of ~₹25,000 Cr (GMV ₹28,000 Cr) by FY27 with ~7% EBITDA margins. Plans include increasing NewCo’s stake to 100% in Apollo Pharmacies Ltd to enhance vertical integration. Dedicated leadership teams will focus separately on healthcare services (AHEL) and the omni-channel pharmacy and digital health business (NewCo), supported by fresh capital infusion of ₹2,475 Cr from Advent.

3. Business Developments:

NewCo will merge Keimed and Apollo HealthCo’s omnichannel and digital health businesses, with all shareholders of AHEL receiving equity in NewCo pro-rata. Advent completed two tranches of capital infusion, and AHL has already acquired an 11.2% stake in Keimed ahead of schedule. The consolidation aims for direct listing and enhanced governance, with cross-entity nominee directors and arm’s-length commercial contracts to maintain operational independence.

4. Market Position & Competitive Advantage:

The merged entity will become India’s largest omni-channel pharmacy and digital health powerhouse with pan-India offline and online presence in over 1,200 cities and towns across 22 states. Keimed holds double the scale of its nearest competitor in a fragmented market with state-of-the-art infrastructure and strong manufacturer relationships servicing 75,000+ pharmacies and 3,000+ hospitals. Apollo’s digital platform boasts 40 mn+ registered users and AI-powered diagnostics capabilities, creating a differentiated, integrated health ecosystem.

5. Investor Implications:

The transaction sets a clear path for value unlocking and sharper focus on scalable growth verticals. The combined entity’s scale, supply chain integration, and growing private label business support positive growth potential and margin expansion. Advent’s incentive-sharing signals aligned management interests. Investors should monitor execution risk around regulatory approvals and integration progress but can expect enhanced value discovery with direct NewCo shareholding and a significant presence in India’s fast-growing digital health and pharma distribution sectors.