Apollo Hospitals To Add 2,000 Beds Despite ₹100 Crore Middle East Cost Impact

Apollo Hospitals Enterprise Ltd. expects a ₹100 crore impact from the ongoing geopolitical situation in the Middle East, even as the healthcare major moves ahead with capacity expansion and a planned restructuring of its digital and pharmacy business.

Dr. Sunita Reddy, Managing Director of Apollo Hospitals Enterprise Ltd., said that the company is currently absorbing higher costs linked to inflation and supply-chain disruptions arising from the situation in the region.

The expected impact comes at a time when companies across sectors are closely monitoring rising costs and supply-chain risks stemming from developments in West Asia.

On 3 June, Apollo Hospitals’ shares closed at ₹8,290.50 on the National Stock Exchange, up 2.48% for the day.

Expansion Plans Remain On Track

Despite the additional cost burden, Apollo Hospitals has not altered its growth plans. The company intends to add another 2,000 beds across its hospital network as it expands healthcare services in multiple formats.

Reddy said Apollo is widening its focus beyond conventional hospital-based treatment. The company is increasing investments in smaller nursing homes, personal home-care services and community healthcare offerings. According to her, healthcare delivery is gradually moving closer to patients rather than remaining concentrated within large hospital facilities.

Apollo is bringing together its digital tools, insurance offerings and artificial intelligence-led systems across different parts of the business. Reddy said the company is using these technologies to support treatment delivery and streamline day-to-day operations.

Healthcare Delivery Expands Beyond Large Hospitals

The company is widening its presence beyond traditional hospital infrastructure. Alongside its core hospital business, Apollo is investing in nursing homes, home-care services and local healthcare centres.

Over the past few years, the group has added services across several areas of healthcare as patient needs and treatment preferences continue to evolve. Reddy said more patients now prefer receiving care closer to home whenever possible.

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HealthCo Demerger Timeline Unchanged

On the corporate restructuring front, Apollo remains on track with the proposed demerger of Apollo HealthCo. Reddy said the transaction is expected to be completed before the end of the calendar year 2026. The company continues to target a stock market listing of the business in 2027.

Apollo HealthCo houses the group's pharmacy distribution, digital health and omnichannel healthcare operations. The business is regarded as a key growth driver within the Apollo ecosystem, bringing together the company's physical pharmacy network and digital healthcare platforms under one structure.

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