Apollo Hospitals Enterprise Limited (NSE: APOLLOHOSP) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Suneeta Reddy — Managing Director
Krishnan Akhileswaran — Chief Financial Officer
Madhu Sasidhar — President & Chief Executive Officer
Mayank Vaswani — Analyst
Sanjeev Gupta — Chief Financial Officer
Analysts:
Binay Singh — Analyst
Neha Manpuria — Analyst
Karan BoRA — Analyst
Bino Pathiparampil — Analyst
Damayanti Kerai — Analyst
Tushar Manudhane — Analyst
Lavanya — Analyst
Vivek Agrawal — Analyst
Madhav Marda — Analyst
Avnish Burman — Analyst
Kunal Dmesha — Analyst
Raunak Agarwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Apollo Hospitals Limited Q3 FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Mayank Vaswani from CDL India. Thank you. And over to you.
Mayank Vaswani — Analyst
Thank you. Yashasri. Good afternoon everyone and thank you for joining us on this call hosted by Apollo Hospitals to discuss the financial results for the third quarter and nine months of FY26 which were announced yesterday. We have with us today the senior management team Represented by Mrs. Sunita Reddy, Managing Director, Mr. A. Krishnan Group CFO Dr. Madhu Sasidar, President and CEO of the Hospitals Division, Mr. Madhavanan Balakrishnan, CEO of Apollo Health CO. Mr. Sriram Iyer, CEO of AHL Mr. Sanjeev Gupta, CFO of Apollo Health CO and Mr. O’ Bull Reddy, CFO of the Pharmacy business. Before we begin I would like to mention that some of the statements made in today’s discussion may be forward looking in nature and may involve risks and uncertainties.
Please note the disclaimer mentioning these risks and uncertainties which is on slide 2 of the Investor presentation shared with all of you. Earlier documents relating to our financial performance have been circulated earlier and these have also been posted on the corporate website. I would now like to turn the call over to Mrs. Sunita Reddy for her opening remarks. Thank you. And over to you Ma’. Am.
Suneeta Reddy — Managing Director
Thank you Mayam. Good afternoon everyone and thank you for joining us on today’s earnings call. I trust that you have all received our earnings material that we shared yesterday. We are pleased to report a strong performance during what is typically a seasonally weak quarter. Importantly, we have sustained the positive Momentum from the first half of the year into Q3 delivering double digit top line growth across all three of our business verticals Healthcare Services, Apollo health Co and AHLL. On a consolidated basis revenue grew by 17% year on year to 6477 crore. Within this, the healthcare services business recorded revenue of 3183 crores reflecting a healthy 14% year on year growth.
This growth was driven by well balanced mix. 5% from volume growth, 4% from case mix and the remaining 5% from pricing. Surgical volumes grew by 6% during the quarter supported by our continued focus on Congo cardiac oncology, neurosciences, gastroenterology, orthopedics and transplant. These specialties remain a key growth engine for us and delivered a robust 16% year on year revenue growth Group wide occupancy stood at 67% in Quarter 3 FY26. Insurance and cash patients together accounted for 83% of inpatient hospital revenues for Quarter 3 FY26 underscoring the strength and resilience of our payer mix. Average revenue per patient was rupees 180,917 in quarter three FY26 compared to 173,246 in quarter two FY26 reflecting an increase in clinical intensity during the quarter.
Apollo Health Co reported revenues of 2,827 crore 20% year on year growth. Revenues from Polo Health and lifestyle increased by 20% year on year to rupees 467 crore during the quarter. Consolidated EBITDA for the quarter was at 965 crores registering a robust growth of 77% year on year within this healthcare services was at 719 crore up by 18% with margins at 24.8%. Within Apollo Health Co, the pharmacy distribution business recorded a 195 crore compared to 159 crore last year reflecting a 23% year on year increase. Losses in the digital business were 67 crore. Cumulatively Apollo Health score more than doubled the EBITDA to rupees 128 crore in quarter three FY26 compared to rupees 57 crore in quarter three FY25.
Cash losses in the digital business were at rupees 29 crore the lowest in any quarter by far. The private label and generics recorded accounted for 15.53 of total pharmacy sales. A digital platform Apollo24.7 added 2 million new users during the quarter and now serves over 46 million users. Platform GMB stood at 525 crores, a 28% growth over last year. AHLL delivered an EBITDA 48 crores strong 39% year on year growth with margins improving to 10.2% from 8.8 in quarter three last year with all three engines of the business performing well evidenced by double digit top line growth alongside accretive margin and profitability expansion.
We reported a consolidated path of rupees 502 crores imported 3 FY26 a growth of 35% year on year. Turning to the nine month performance, consolidated revenue for nine months FY26 stood at 18,623 crores, growing 15% year on year supported by balance expansion across all three verticals. Healthcare Services reported revenues of 9,287 crore, up by 12% year on year driven by continued traction in high acuity specialties and an improving payer mix. Apollo Health Co delivered revenues of 7960 crore suggesting a 19% year on year increase while AHL revenues grew 19% to 1376 crores. Consolidated EBITDA for the nine month period stood at 2758 crore reflecting a 22% year on year increase and PATH grew to 34% year on year 2412 crores.
During the quarter we operationalized 75 beds in our Pune facility. As we enter the next fiscal we will be commissioning four new hospitals, one each in Hyderabad, Kolkata, Bangalore and Gurgung, further strengthening our presence in key metropolitan markets with strong fundamentals. These facilities, along with the ramp up in our recently commissioned Pune Hospital will approximately add 1,500 additional operating beds to our network representing a significant step up in capacity and a clear Runway for medium term growth. We expect to operationalize roughly half of this capacity in the upcoming fiscal fiscal year with the balance coming online early FY28.
This space commissioning approach allow us to calibrate ramp up efficiency, optimize capital deployment and drive occupancy led operating leverage as demand scale. Together these additions position us well to capture growth opportunities in high acuity care, deepen our market penetration and enhance long term shareholder value. We have also made progress with respect to the regulatory integration process for the composite scheme of KeyMed merger and demerger of Polo Health Core and remain well positioned to capture the full benefits of scale with a combined entity to achieve a run rate of 25,000 calls and combined revenues with 7% EBITDA.
Let me conclude by stating that Apollo’s performance over the recent quarters reflects the depth, resilience and scalability of our integrated healthcare system ecosystem. Consumer interactions across all formats of care have increased and cross format journeys are becoming more visible. These results are a reinforcement of our patient centric strategy. We have and will continue to invest ahead of the curve on in hospital technologies such as robotics and the benefits of such investments are reaching the patient as evidenced by our growth in high end surgeries. More importantly, we believe these results demonstrate the deep level of trust that our consumers place in Apollo.
We value this trust and engagement and will continue to sharpen our clinical definition, expand our capabilities across high acuity specialty and strengthen our omnichannel healthcare platforms to improve access, efficiency and high quality care outcomes. On that note, I would like to hand it over to the moderator and open the line for questions. I have Krishnan, our CFO, Dr. Madhusha Sheeter, the CEO of the Hospital Division, Srira Meyer, CEO of AHL Madhya Vannan, CEO of Apollo HealthCo and Obal Reddy and Sanjeev from Apollo Health Co with me to take all of your questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from the line of Binay Singh from Morgan Stanley. Please go ahead.
Binay Singh
Hi team. Congratulations on strong set of numbers across businesses. I’ll first start on the hospital side. It’s a very busy time for you two hospitals you’ve ramped up and we also have Sarjapur and Kolkata around the corner. Could you. Last time we discussed about 150 crore cost headwind coming out of this ramp up. Any updated thoughts on that? How much of it is already built into these numbers? How much should we expect in the coming quarters? That’s the first one. Thanks.
Krishnan Akhileswaran
So you know we will come back to you by Q4 one more time but we continue to believe that 150 crores is a good number for now and we have started Pune and Athena just by the last month of the in the previous quarter and we are hoping to ramp both of that up over the next two three quarters. Well currently in the embedded numbers we have approximately 15 crores of losses in the overall overall reported numbers for Pune and Athena which is part of the numbers that has been reported. Now as we go into next year we are hoping that by Q1 we should be operationalizing Hyderabad, the Calcutta facility as well as the Bangalore which is the bell in this one. Gurugram would be more like Q2 because you know it is still, you know, because of all these issues with the environmental related delays which we couldn’t complete our construction, there is a two, three months delay so it will be mostly in Q2.
Binay Singh
Okay. So to an extent some of the costs of that would start to come up in the March quarter. Right? All your hiring costs and all.
Krishnan Akhileswaran
March or more, more likely April.
Binay Singh
Okay. And secondly just on the GMV of the digital business, we’ve seen a sequential drop in GMV and in fact our revenue to GMV ratio also went up. Could you share your thoughts on that?
Madhu Sasidhar
Sanjeev, you want to explain the reinstatement of the gmv please?
Sanjeev Gupta
I can take that question, thanks. Thanks Mari. Yeah, it’s a good, you know, call out. See, there are two things, you know, which has happened. One is that on 21st of September we had a very large reduction in the GST on the pharmacy and the other products which resulted into, you know, GeV impact of roughly 30 to 35 crore a quarter. And secondly, we had one channel of e commerce which was Amazon. We were supplying to Amazon and then we stopped that business or that segment somewhere in early Q2 of this fiscal year. And for us to compare Apple to Apple, we had to remove these two.
Accumulated impact of these two would be roughly 75 crore for Q3. These are the only two adjustments that have been done to ensure that we compare Apple to Apple between the last year figures and current year figures. Thank you.
Binay Singh
Thanks team. I’ll come back in the queue.
operator
Thank you. Ladies and gentlemen, in order to ensure that management is able to answer queries from all participants, kindly restrict your questions to two at a time. You may join back the queue for follow up questions. The next question is from the line of Neha Manpuria from Bank of America. Please go ahead.
Neha Manpuria
Yeah, thanks for taking my question. Just extending the question on the digital business. I see that the revenue growth here has also been low, you know, sort of, I wouldn’t say lower, but there’s been a moderation in revenue growth as well. Quarter on quarter one. Can you take us through, you know, what should be the revenue base for the digital business? What drove this moderation? And second, you know, from a guidance perspective, do we still keep our guidance for cash, EBITDA break even for the digital business? I think it was supposed to be at the end of fourth quarter. Any update there.
Sanjeev Gupta
Yes, ma’. Am. No. So our revenue projections continue. So let me. The entire focus is, is on trying to build a sustainable operating model. So if you have to peel the onion a little bit, our pharmacy online business, which is our mainstay of the GMV has actually grown by 32%. There has been a little bit of pull down in some of the other areas because of which our revenue at an overall level, GMV level is at a flatter basis. However, the quality of the business is improving. If I were to give you some highlights, our discount is stabilizing. Our average order value has gone up by almost 111 rupees net of the GST, which has a positive impact on our unit economics.
Our cost of delivery, which is one of the biggest component of our cost structure on the revenue side is also coming down and our marketing spends. We have been extremely frugal in the way we are building a business. But in spite of this showing a 32% growth in our GMV and proportionate revenue is holding on. In fact, at a CM1 level, we were positive last quarter. We have made it even better in this quarter and the trajectory continues. There have been some little changes in the way we recognize the income revenue for the hospital business which we are recalibrating in terms of the attribution and the kind of campaigns that we are driving.
So there was a little bit of a pause which we will reactivate it again from the next quarter. But it’s a full reoperating model that we’re doing. The third area on the revenue side where we are facing a little bit of a mismatch, I wouldn’t say is the way our insurance business, which we started off is getting recognized till September. Any collections, any gross return premium, which is the equivalent of revenue, was coming to our commissions on a full basis. We are almost getting 80 to 85% of the total logins that we do. We are able to generate commission.
However, post September, given the GST change which happened in the health insurance industry, there has been a bit of a mismatch between the business that we book and the collections that we do that is impacting our revenue a little bit. So it’s a mismatch in the sense that my revenue recognition is getting deferred over the next 12 months for the money that I’m collecting. So some of these changes is normalizing it a little bit. So we are on our course on our, you know, the forecast about our ability to close it in Q4, given this intervention story, which has sort of pushed us back by around 17 odd crores, given this mismatch of our revenue recognition, we will be able to close this loop in Q1 of FY27.
Neha Manpuria
So if I were to understand it correctly, you’re saying that the digital, sorry, the digital cash EBITDA break even is now probably pushed out by a quarter.
Sanjeev Gupta
By one quarter. By one quarter, yeah. Because of this insurance mismatch that has happened. Otherwise we are very much on course. That’s why you see the -29 crore which the cash EBITDA that we are speaking about, the biggest negative is coming from the 17 crore negative from the insurance business which has got deferred into the next year. So we will recognize that income as we go along. And some of these revenue recognition modules that we follow in the hospital business is undergoing a change. So these are two things. So we hope to catch it up in the next quarter. But rest assured all the primary indicators are on course. Sorry.
Neha Manpuria
On the revenue front, if I were to understand it correctly, we will see this revenue plus the IPOP that will get resumed from next quarter. Would that be a fair understanding? So this quarter number is an aberration.
Sanjeev Gupta
Yes, we will reactivate.
Neha Manpuria
Okay. So only thing that has changed is the insurance bit.
Sanjeev Gupta
Yeah, that’s the one which has a bigger impact. And there are some businesses wherein our revenue gets recognized at the end of the year because some of them are back ended. That will also come into play as we go along.
Neha Manpuria
Understood. Okay, that’s helpful.
Krishnan Akhileswaran
Just typing one number. You know, I think, I think Marie said, you know, wanted to say 7 crore of insurance impact into Q3. Not exactly 17 crore out of 29 crore. Just as a correction.
Neha Manpuria
Okay, got it. And my second question is in the cluster numbers that we are giving, you know, other than probably AP Telangana and Chennai cluster, we’ve seen the, you know, IP volumes pretty much moderate in most other clusters year on year. So you know, just wanting any color as to, you know, why we are seeing this trend. Whether I see it in northwest or east cluster, there seems to be a moderation in the IP volume trends.
Madhu Sasidhar
Yeah. So I think you are seeing different phases of optimization. Especially in our best market, we’ve undertaken a lot of work to improve the quality of revenue. So I think volume by itself may not be the right indicator. More holistic, look into it especially at the quality of revenue and the average revenue per patient. So especially our Navi Mumbai unit has been performing very well on that basis. Especially with higher specialty care.
Neha Manpuria
All right. Okay, got it. Thank you so much.
operator
Thank you. Next question is from the line of Karan Bora from Goldman Sachs. Please go ahead.
Karan BoRA
Thank you for taking my question. My first question is with respect to the bed expansion. So I think we’ve mentioned, you know, other than Gurgaon, all the other green fields or the largest units will come up by Q1. But just wanted to get a sense on, you know like how many beds will be operationalized in Q1 and how will the ramp up look like. I guess you will not operationalize all the, all the beds. Right. So on at a hospital level, how the ramp up could look like over the next six to nine months or even one year that will be helpful for each hospital.
Krishnan Akhileswaran
So we will come back again by Q4 on this. But broadly if you look at it sooner is around Calcutta is 225 beds. Half of that should get operationalized in Q1. Hyderaba
Karan BoRA
By Q1.
Krishnan Akhileswaran
That’s right. So roughly around 50% of these beds. Right? 1500 beds. If you look at it in these, you know we have Jubilee Hills expansion and second Rabad which will come a bit later, which will be during the year. But of these four new hospitals almost 40 to 50% will get operationalized by Q1.
Karan BoRA
Got it, got it. And like when we operationalize the remaining half in Q1 FY28 or somewhere around that time, will there be any more startup losses or fixed cost or elevations which we need to keep in mind?
Krishnan Akhileswaran
It will be there. So we will have to look at it as in a phased manner. So we will see that Q1 should have. So when we are saying that 150 crores there will be quarters, you know, which will have some higher losses also. Right. That could be a quarter where you know there is a 50 crore loss which is coming in. But otherwise you know we should look at overall at one point crores for the next year is how we would look at it. So it’s difficult to guide now quarter by quarter, you know we will definitely as the operationalize these, give you a broad guidance.
But you can, you know we have said that this, this is something that we are hoping that can be defrayed by the overall volume and revenue growth in the, in the, in the existing hospital.
Karan BoRA
Okay, got it. And my second question is with respect to the RPOP growth. So I, I understand that we’ve moved away from rpop but just if we back calculate RPAP growth healthy at around mid teen levels. So just wanted to get a sense that you know what is driving this growth. And in the opening remarks there was a mention of 5% price growth but in the PPT it’s mentioned 3% price growth. So what is that mismatch? If you can just tie it down whether it’s 3 or 5.
Krishnan Akhileswaran
Sure. 3% was the tariff increase that we had taken during the year. Whereas 5% is the effective price realization that we have done in this year because there were some insurance contracts which got reset also, you know, during the year. So the tariff, what has been presented in the PPT is more the tariff increase which was done in this year. So this is, that is the difference between the two numbers. Your other point on arpp, of course we don’t give rpop. You can compute the rpop of course. But because you know, we don’t do rpop because the reason is again, you know, we have op, we have radiation therapy, we have other stuff also.
And a lot of daycare procedures also now come in. ERPP has gone up which is a combination of, as we said, higher complexity cases that we have seen across and the Congo T growth and surgical growth. This is what has increased the ARPP at a broad level. Pricing realization in that has been 5%. The balance has been case mixed.
Karan BoRA
Got it. Just one last thing. If I can squeeze in so Apollo 247 or the digital piece overall break even. EBITDA break even. Is there any target? Not the cash, but even after including ESOPs.
Krishnan Akhileswaran
Sanjeev, you want to give them a color of ESOPs for the next year.
Sanjeev Gupta
I think better would be that, you know, when we, you know, meet again seven in the Q4 earnings call. We have a better understanding about all this as we get into Europe. But I think one point clearly that, you know, the ESOP cost maximum is getting consumed until this year and after that we have a very less cost on the ESOP specifically. But overall question about including esop, I think I would request just to wait for quarter. We are into the middle of annual operating exercise planning exercise and we’ll get a better position to tell next time.
Karan BoRA
Okay, got it. Thanks Anode.
Sanjeev Gupta
Thank you.
operator
Thank you. Next question is from the line of Binu Pathiparampil from Ilara Capital. Please go ahead.
Bino Pathiparampil
Hi, good afternoon. Congrats on a great quarter. Just following up from the previous question. The price increase and realization increase that you are talking about, did that kick in in K3 or was it already there in Q2 and Q1?
Krishnan Akhileswaran
It was there in Q2 also.
Sanjeev Gupta
Mostly Q3. So if I look at the kind of growth you delivered in Q1 and Q2 versus Q3, there is a big step jump. And from your competitors, we haven’t heard about a great season or anything in the healthcare side. So can I assume a significant part of that is coming from this realization improvement.
Krishnan Akhileswaran
No. See you have to remember that you know some of our competitors are in various different geographies. You know, please appreciate that we are a Pan India player. Inpatient volume growth in Q2 we saw 2% volume growth. Whereas inpatient volume growth in Q3 is 4.5% versus last year. So there will be various different reasons on on the way that our numbers can go versus you know, people like more north centric or somewhere else. You know, because each of the competitors, not many players are as Pan India as we are. So you have to keep that in your mind.
Of course we have got the benefit of of the price realization from Q2 onwards and which has moved into Q3. But the more important point that you should also consider is the fact that there has been a higher complexity of cases also that we are focused on in the Congo T specialties and we should be able to sustain as we move forward.
Bino Pathiparampil
Got it. Second in AHL we have seen quite a few number of additions in the number. Sorry. Quite a few additions in the number of senders. Are these mostly on the diagnostic side or is it all across?
Mayank Vaswani
Hi. Yeah, so most of these additions are on the diagnostic side and we also launched two new clinics, one in Chennai and one in Hyderabad. Otherwise most of these additions are on diagnostics.
Bino Pathiparampil
Okay, and when you say diagnostic, are these like full fledged labs or just collection centers?
Mayank Vaswani
No, these are obviously we have expanded into new lab, new geographies also. But most of these are the infrastructure that they create in the existing geographies. So we open the collection center and our company owned outlets. So that is what you can see as expansion.
Bino Pathiparampil
Understood. Okay. And finally an update on what’s happening on the health co side regarding the corporate action about demerger etc. How is the progress on the team IT side in terms of accumulation of the different pieces of business that were separate etc would be great.
Madhu Sasidhar
Please. We have obtained Competition Commission approval and SEBI approval. We have filed with nclt. NCLT started it has listed and started the hearing and we. We are wait for the next step.
Sanjeev Gupta
And Cumad was supposed to you know, buy out some of the some of the associates which were holding part of shares in different entities. How is that progressing? Is that all progressing on time?
Madhu Sasidhar
Keymate has progressing on time and Keymate has streamlined their entire subsidiary network and they are 100% subsidiaries of Keymate which is going to get. I mean Keymate is going to merge into ahl.
Bino Pathiparampil
Great. Thank you very much.
operator
Thank you. Ladies and gentlemen, we request you to restrict to two questions at a time please. You may join back the queue for follow up questions. Next question is from the line of Damayanti K. Rai from hsbc. Please go ahead.
Damayanti Kerai
Hi, thank you for the opportunity. My first question is on your hospital business. So not specific to you but just want to understand your negotiation with the health insurance companies. Like how is it going because we heard some of your peers had some issues. So from your hospital either for existing as well for some of the new hospitals, how things are progressing on contracting or onboarding of health insurance.
Sanjeev Gupta
So we have a good relationship with all the insurance companies, you know, across we have always been maintaining that and we have a single central relationships with them as well. And as of now, you know, basis. Yes, there has been some delays in getting certain insurance approvals in some of the markets and which is why you know even last quarter we saw some of that contract getting pushed out for you know, for renewal. But with that said I think we are on course and we are seeing that we are fine going forward.
Damayanti Kerai
Okay. And these contracts are generally for two to three years or you are moving for some annual contract license.
Sanjeev Gupta
We would prefer annual but as of now it is still two years.
Damayanti Kerai
It’s generally two years from that. And when do you start this implement process for the new hospitals, say four hospitals coming next year. So when do you start your negotiations to panel the company stay negotiations much.
Mayank Vaswani
Before we we operationalize the hospital. To give you an example, some of the hospitals that Christian spoke about, some of the agreements have been in place or there has been an agreement by both parties on the terms. So we started much before operationalization, if that answers your question.
Damayanti Kerai
Yes, thank you. My second question is again on 247 actually I’m not still very clear. So you mentioned the majority of changes happen on the pharmacy post GST changes. But when we look at other metrics say doctors consultation number or doctors and platform diagnostic samples, all of these numbers change compared to what we saw in the September number. So actually if you can help us understand what all changes were there when you’re booking the GMB. And if you can just clarify, you mentioned 75 crore kind of number we should adjust in the 2Q numbers. Right? Some clarification will be great. Thank you.
Sanjeev Gupta
Mari, let me just take this question. I think what what we’re trying to say is very simple point that you know when you compare numbers across previous year on the overall GMV side there are two factors which has undergone change. One is the GST and secondly one of the channels that we closed so obviously when you compare GME to GME this factor has to be taken into consideration while seeing growth things. So this is one change that has happened. Now as far as you also checked, I think you asked this question also that you know total revenue for Q3 versus Q3FY25 versus Q3FY26, you are seeing a little lesser growth or 15% growth.
I think the answer there lies with the Amazon channel which is part of the sales for Q3FY25 which is not part of the sales in Q3FY26. And if I minus that out you will see a growth of 32% on the overall revenue versus 15% which is now mathematically can be calculated. So this is just I would say a small correction because of the GSP came in somewhere in Q2 21st of September as I said. So we had to change the numbers for Q3 for comparative purposes and somewhere in April, somewhere in June end we closed the Amazon channel and hence you know those numbers from Q2 had to undergo change.
So this is just a change in the change in the numbers constituting to these two things to arrive at a better growth factors on the diagnostic and the consultation side. There is no change. The business remains as it is. Whatever commission dates are there between the entities, those related party agreements are still good to go. There is absolutely no change. And I think you also touched upon IPOP gmv. I think ipop. IPOP is one last. In the last earnings call we did, Madhi did mention this that the new arrangement with the hospital is more of a flat fee that we get on a quarterly basis and it’s like a booking or ensuring the tech platform for the entire Apollo ecosystem.
And that is where the commercials are between both the organizations. I think they should helpful but should be helpful in case you still think that you’ve got some doubt. Maybe separately we can connect and then you know we can discuss about this. Thank you.
Damayanti Kerai
Sure. So just like in terms of annual gmb any target we are looking for say month this quarter we did around 425 crore. So will this be the run rate to look ahead or you think we can see much better numbers going ahead? Thank you. That’s my last question.
Madhu Sasidhar
We can expect a consistent growth of around say 30% on the GMV for this financial year. And once we are done with the numbers we’ll come back for the next year plan.
Damayanti Kerai
Thank you. All the best.
operator
Thank you. Next question is from the line of Tushar Manudane from Motilal Oswal Financial Services. Please go ahead.
Tushar Manudhane
Thanks for the opportunity. On the base hospital, if I exclude the new hospitals at the metros, we are already at 70% of occupancy, non metro 62 ROC of 31. So you know, if you could just elaborate in terms of what is further scope for these hospitals to sort of drive Edita going forward, maybe through combo or patient mix or let’s say the payer mix. That’s my first question.
Mayank Vaswani
Yeah. So I think even in Q3 of last year we had resources available. Bit like the occupancy at our metro units is fairly high. There are several levers that we are depending on. One is I think there is a little bit more opportunity on length of stay production through operational excellence. A lot of investment in digital technologies that is helping us with that. The second is there is still some volatility, I think day to day, week wise and seasonal volatility. And we are looking at ways in which we can minimize that volatility. And the third is of course a consistent focus on case mix and especially in flagship hospitals, making sure that there is an intentional shift to high complexity.
Tushar Manudhane
Any broad number, if you could share like the seasonality impact for the quarter or let’s say for the nine months how much it has been.
Mayank Vaswani
Yeah, it’s very hard to tell because as you know it varies from year to year. Right. And it especially shows up on the medical cases. Some years we have a bad dengue year and that skews the occupancy number. So that is the unpredictable part of our business.
Mayank Vaswani
But there is a lot that we. Can predict which is usually on the elective and semi elective cases, the surgical cases and the high complexity cases like falling dog and transplant, where we made a lot of commitment and a lot of investments. Transplant as an example, this quarter compared to last quarter is about a 50% increase in revenue at the group level.
Tushar Manudhane
Got it. And just secondly, on the overall combined Keymate offline online, we are at a quarterly run rate of 50 billion rupees and the target is to reach 250 analyzed by Q4FY27, which is effectively 60, 62. If I go by earlier quarter numbers, we are sort of growing at 4%. Then you know what could be. While we’ve explained them in detail in terms of the online pharmacy or the health score, but any other factors which will drive this numbers to 62 billion by 3,4f27.
Krishnan Akhileswaran
Sanjeev?
Sanjeev Gupta
I think, I think all the business lines, whether it is the front end or Teammate or online. As you rightly said, online pharmacy is growing by about 30%. We are seeing decent growth in the other business lines. Also I think where we stand today at Q3 analyzed number we are roughly at 20,000 crores and we’ve got 5 more quarters to hit the run rate of about 25,000 crore which is roughly about 25% from now to there 5 quarters. Also I think if we continue to see the business with a growth trajectory of about 20, 22% annually, we should be able to meet this number easily. At this stage we do not see any, any challenge coming our way with respect to hitting the top line number. Thank you.
Tushar Manudhane
Thank you,
operator
thank you. Next question is from the line of Lavanya from UBS. Please go ahead. Lavanya, your line is unmuted. Please go ahead with your question.
Lavanya
Hi, could you hear me now? Yes, please go ahead. Yeah, thank you for the opportunity. So I just wanted to check how sustainable you see the hospital margins given the new hospitals being operational over next couple of quarters.
Madhu Sasidhar
So I think we will continue to be able to maintain margins. We are carefully balancing the EBIT deterioration in our new hospitals with how we are managing our existing hospitals. Also I think for the new hospitals we are very, very focused on quickly ramping up to profitability by both making sure that our recruitment and our human capital costs are aligned with occupancy numbers.
Lavanya
Just a question in this actually here, even in this quarter we have some new operational beds. But still if I see console employee cost, it has been on sequential basis. Any specific reason there?
Krishnan Akhileswaran
So in Q2 there were you know, two one offs which are there also, you know. So if you look at Q2 there was a six week leave encashment provision that was required under the accounting standard. That was a 12 crore number. And there was also an additional cost of PLVP or performance linked variable pay that we have in Q Q2 because July is when we do the, you know, we do the increment. So this was there in Q2 and that’s not there in Q3. Otherwise it’s, it’s aligned with the numbers.
Lavanya
Okay, okay, got that. Just on a physical pharmacy, how do you see growth in terms of unsustainable basis like store Edition plus same store growth overall. Like how do you see it? 18, 20% or what’s the level that you expect in terms of physical pharmacy growth?
Mayank Vaswani
We are currently at about 20, 20.5% on the total network on the same. Store growth. And store adherence will continue to be in the range of 600 per annum.
Lavanya
Okay. We should maintain this kind of run rate going ahead in near to medium term. Is that the right assumption?
Sanjeev Gupta
Yes. I’m putting down.
Lavanya
And 18% of the same store. How should one should look at it like what should drive 18 to 20%.
Mayank Vaswani
16% same store growth against 20.5% overall growth.
Lavanya
Okay. Key drivers for the 16% is increasing private label or how should one see it?
Mayank Vaswani
So what private label then we are even, you know, doing the reference store, changing the model, changing the inventory, particularly you know, with the dynamically all those things adds to that growth.
Lavanya
Okay. Okay, got it, Got it. Thank you. Thank you so much. All the best.
operator
Thank you. Next question is from Vivek Agrawal from Citigroup. Please go ahead.
Vivek Agrawal
Hi, thanks for the opportunity. One question on hospital ARPP growth. 10% growth in nine months looks quite impressive. So just want to understand how sustainable it is. It is. So can you maintain this 10% kind of growth or there’s a possibility that it can come down. Thank you.
Sanjeev Gupta
So, you know, see we have been always guiding, saying that, you know, we would like to achieve more volume growth and we would continue to focus on getting the volume, volume growth to a higher number and then the combination of volume plus the case mix focus which Dr. Madhu already said. So that’s the mix that you would get to. So maybe, you know, this is a very dynamic number in the industry, right. As we focus on a certain clinical programs in a quarter and then, you know, depending on how the clinical programs ramp up, you will see the arpps, you know, come up accordingly. So as we would like to believe that, you know, when it is a 12, 13% organic growth that we look at of 14%, we would like to be half on the volume and the balance half on combination of mix and pricing.
Vivek Agrawal
Thank you. Just one question again on margin trajectory next year as you are guiding for 150 crore kind of loss in the new units. Just want to understand, do you have levers in the existing network that can mitigate the impact of losses in the new units or are you seeing a significant dip as far as the margins, the hospital business margins cumulatively in the next year? Thank you.
Suneeta Reddy
I think the lever that we have is asset utilization. So as we look at our assets and occupancy and even in spite of bringing down the allos, we have a headroom for lifting volume and asset utilization by another 8%. We will focus on this as we go forward into the new year. The second, of course we have not done any significant cost cutting which we Hope will bring us another 82 basis points. With this we hope to minimize the losses coming from new hospitals.
Vivek Agrawal
Understood, ma’. Am. So just one more thing. What kind of a margin expansion that is possible? Let’s say in the existing business.
Sanjeev Gupta
At. Least 100 basis point is the margin expansion which is possible in the existing business.
Vivek Agrawal
Thank you. Just last question from my side. It is on talent retention. We are seeing that hospitals in India are expanding capacities. It looks like that Apollo can become a hunting ground for big doctors. And very recently have seen one of the star oncologists in Delhi has been posed by one of your peers. So just trying to understand how you are tackling this issue.
Suneeta Reddy
Well, I think the reverse is also happening. So I think we should be aware that Apollo will continue to attract the best talent because number one, you know, I think we’ve created a platform that invests not only in technology but in terms of reach, in terms of market and market share. We will continue to lead with market share and I think this is what doctors want. Our system are strongly embedded. So the clinical outcomes at Apollo continue to be the best in class and in terms of innovation, research and you know, collaborations with other hospitals, this will continue to drive very high end procedures. I think this is what doctors would like to see. Madhu, you want to add to them?
Mayank Vaswani
I think Ms. Sunita is absolutely right and I will just share our experience in recruiting. The new markets that we have opened hospitals in like Pune or existing markets where we have new hospitals is that we’ve had a very good brand recognition and brand affinity with the doctors in the community that have made it easy for us to recruit. I think that you will see the sporadic cases of doctors leaving and sometimes it’s for personal reasons. That has nothing to do with the hospitals that we operate in. So I don’t see that in the next year as being a problem either retention or approval.
Vivek Agrawal
Thank you. That’s from my side.
operator
Thank you. Next question is from the line of Madhav Marda from fil. Please go ahead.
Madhav Marda
Hi, good afternoon. Thank you so much for your time. Once again, so just on the margins again if you look at Our reported margins, 24.8% I think you said 15 crores of cost is already there for the new units. So base type of margin seem to be 25.3% approximately quarter three. You’re saying that that 25.3 has scoped to go up by 100 basis points. So base upload can be above 26% next year. Is that how we should read It.
Mayank Vaswani
Yes.
Madhav Marda
Okay. And then so basically the impact of the losses from the new unit, the 150 crore should come on this 26%. Right. Basically on that we should assume the drag.
Sanjeev Gupta
That’s correct.
Madhav Marda
Okay, understood. Okay. And so just second question is on the hospital business growth. Given the timeline for the expansions that we have of the new beds coming in, how should we think about hospital business revenue growth next year on the base network and then how much revenue can we add from the newer beds which are coming in? Thank you.
Sanjeev Gupta
We wouldn’t want to guide specifically around that. Right. Because it is forward looking. So as you know that we are looking at, we continue to look at seeing how we can at least be at the 13, 14% growth on the existing hospitals. But we’ll see how the year starts and how we progress and then we should, the additional bed should clearly add another three.
Madhav Marda
Thank you.
operator
Thank you. Next question is from the line of Avnish Berman from Vikarya Change llp, please go ahead.
Avnish Burman
Yeah, hi, good afternoon. Thanks for taking my question. I just have a couple of questions. On Keymed we saw some good margin expansion this quarter on a QOQ and a YOY basis. Can you just articulate what were the key reasons for that.
Suneeta Reddy
Sanjeev?
Sanjeev Gupta
So I think you know, what you saw was the abrasion in Q2 and as well as in Q1 where the overall EBITDA percentage was low because of the restructuring and the, you know, necessary legal cost associated with them. I think so now those are removed. And this is what we discussed in the last earning call also that you know, in Q3 you would see we becoming to a position of 3.1 upwards and 3.3 is what we have in Q3 but it is more as an aberration that got cleared in Q3 then and plus the business efficiencies.
Avnish Burman
Okay. And because of the GST change that. Happened in September, did we see some kind of revenue push up, push out from the 2Q to 3Q? Because I’m guessing the retailers would be reducing inventories in two Q and then building again in Q3. Does that happen or on a quarter wise basis it was just normal Q2 and Q3 operations in revenue? No, we didn’t see any such impact.
Mayank Vaswani
We have seen very good improvement in the FMCG and pharma slightly plus or minus stays at the same level. But FMCG consumption is very good and we have seen good growth on that.
Avnish Burman
Okay, understood. Thanks. I’ll get back in the queue.
operator
Thank you. Next question is from the line of Kunal Dmesha from Macquarie. Please go ahead.
Kunal Dmesha
Hi. Thank you for the opportunity. So just one on the potential losses from the new units. You suggested that the first month from JTU Hospital is around 15 crores and we are guiding for a full year losses of 150. So is it more conservative number because the annualized losses itself would be more like 118, I’m sure. Like it would improve in the existing units but the 150 number, is it more conservative on the side given we are also opening a green field in Gurugram which would definitely take some more time. Right. Versus the brown field that we are doing.
operator
Can you mute your line please? There’s some background disturbance.
Sanjeev Gupta
We have two quarters of Pune to ramp up from here on before some of the other hospitals come on stream also. So that’s one that should kind of benefit us as we move into the next year. And then you will start see the, see some of the other hospitals coming in. And so it’s going to be like three quarters of next year when you know you will be seeing the other new hospitals coming in. So that’s what we are looking at. And but I think broadly as of now we would like to keep it at 150 crores.
That’s what we would like to keep it for now. And this number of 15 crores is really for 3 months of Pune in terms of costs of Athena, the revenues have more been in the last one month or one, one and a half months but the cost of have been for three months. So, so you should, so that’s, that’s the way you should look at it. So now we’ll go with 150. We’ll see during the next year.
Kunal Dmesha
Second one on the GMV growth we suggested that we would be ending the year with 30% GME growth. So that means 4 would be 30% or we guided for the year 20. 30% of full year FY26. Yeah, this is on a full year FY basis we will obtain our 30.
Sanjeev Gupta
To 32% growth on the GMV basis.
Kunal Dmesha
And sir, the for nine months this number looks much lower. Right. In terms of. So you are adjusting the base for the GST impact and the Amazon impact for the.
Sanjeev Gupta
Correct. Because these, the Amazon business, the reason.
Sanjeev Gupta
Why we walked out was because it. Was a negative business for us. So while it is impacted as a GMV on the revenue side, it’s been much more beneficial. So that, that’s the new normal now.
operator
I’m sorry, you’re sounding muffled yes, please repeat the question.
Kunal Dmesha
Yeah, what was the full year number for Amazon last year for us to adjust the bill? Can you give the exact number please?
Sanjeev Gupta
It was roughly 160cr, 160c on a 3,000 crore GMV. Right? So yeah, roughly 5%. I think another important point that you need to keep in mind is that, but you know what we’re talking here about is the entire platform GNV to grow year on year this year growth as well as for the next year. And when we define platform gnv, while obviously we discussed about GST and measured impact in this platform gnv, we are not adding ipop GNV and itop. GMV is and that’s the reason you would see in the earnings call presentations. Also we have highlighted this separately because this is in the earlier year.
This used to be a variable pay model. From this year onwards it has converted into more of a fixed fees to us supporting the technology side of expenses that we are incurring for the group as a whole. So I think going forward our guidance would continue to be excluding IP rupee, you know, what is the growth that we’d be looking at. And I think Madhi in one of the questions did say that, you know, next year you can expect in the range of about 30% this year. Also if I, you know, just, you know, look at some numbers, you know, we should be in the range of about 28% growth, you know, for the, for the full year versus previous year, adjusted for the reasons that we just, you know, discussed.
Kunal Dmesha
Thank you. Basically ipop, GST and ML, these are the three impacts. Thank you.
operator
Thank you. Next question is from the line of Raunak Agarwal from I thought pms. Please go ahead.
Raunak Agarwal
Hello, Am I audible?
operator
Yes, please go ahead.
Raunak Agarwal
Yeah, thank you for the question, ma’. Am. So it’s a sort of broad overview for the hospital. So 50, 1500 beds will be coming in the next year out of which 50% will be operationalized. So what is the 50, 60, what’s the time period which we are looking for? Let’s say occupancy of 60, 70%.
Suneeta Reddy
On the overall all the beds or half of the beds. So, so we’ll open 750 beds next year in, sorry in the coming year and post that another 750. 750 beds in two years we should be breaking it. 1300 beds that we’re talking about.
Raunak Agarwal
So I’m asking like let’s say we are opening 750 beds, so what is the occupancy rate we are looking in the first year itself.
Suneeta Reddy
It will be around 40%.
Raunak Agarwal
Okay. Okay. Thank you.
operator
Thank you ladies and gentlemen. That was the last question for today. I now hand the conference over to management for closing comments. Over to you.
Suneeta Reddy
Thank you all for your presence. I’m sure that in the upcoming quarters we will continue to remain focused on phase capacity operationalization and the opening up of new beds in healthcare services and a continued ramp up of revenue and profitability in AHL and ahl. Disciplined execution leading to volume and value growth, sustained investments in clinical excellence and technology and market share gains across key markets will help us to sustain momentum over medium term. We are to committed committed to delivering consistent performance while creating enduring value for our patients, consumers, partners and all of our shareholders. So thank you all for your support.
operator
Thank you members of the management team on behalf of Apollo Hospitals Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.