Healthcare major Apollo Hospitals expects to complete the demerger of its omnichannel pharmacy distribution and digital health subsidiary, Apollo HealthCo, and list the new entity by December 2026, creating a ₹25,000-crore omnichannel healthcare business.
Apollo Hospitals Group CFO A Krishnan said the National Company Law Tribunal (NCLT) has directed a shareholders’ meeting to be convened on June 24, 2026, for approval of the demerger scheme. “Once we get the shareholder approval of AHLL, we will go back to NCLT and that process should take 3-4 months. Hopefully by the end of December or early Q4FY27 is when Apollo HealthCo should get demerged and listed,” Krishnan said during the company’s fourth-quarter earnings call on Thursday.
Apollo HealthCo is the second largest revenue vertical for Apollo Hospitals after its core healthcare services (hospital) business.
Restructuring Path
HealthCo houses the group’s online and offline pharmacy distribution operations and digital health platform Apollo 24/7.
In June 2025, Apollo Hospitals’ board approved a composite scheme to spin off Apollo HealthCo into a separate listed entity. Under the scheme, Apollo HealthCo will first be demerged from Apollo Hospitals into a newly formed entity, following which Apollo Hospitals’ wholesale pharma distribution arm, Keimed Private Ltd, will be merged with the new company. “When it (Apollo HealthCo) gets listed we should be in a position to see ₹25,000 crore of annualised revenue by that quarter,” Krishnan said.
Apollo Hospitals reported consolidated revenue of ₹25,229 crore in FY26, crossing the ₹25,000-crore annual revenue mark for the first time. The hospitals business contributed about 50% of revenue, while Apollo HealthCo accounted for 43%. The healthcare services business reported a profit after tax of ₹1,628 crore, while Apollo HealthCo posted its first full-year profit at ₹324 crore.
Unlocking Value
On Wednesday, Apollo announced that its standalone mother-and-child and fertility businesses “Apollo Cradle” and “Apollo Fertility”, operating under Apollo Health & Lifestyle Ltd (AHLL), will be sold to Cloudnine Hospitals. The proposed transaction values the businesses at ₹1,550 crore through a combination of cash and a 9.9% equity stake in the combined entity.
Apollo Hospitals MD Suneeta Reddy said valuation was among the key aspects behind the transaction. “To get a valuation of ₹1,550 Crores at an Ebitda multiple of 35 in this market is something you cannot ignore,” she said during the earnings call. AHLL will continue to house other brands including Apollo Clinics, Apollo Diagnostics and Apollo Sugar. “AHLL is a ₹1,865 crore business for this year. Apollo Cradle and Apollo Fertility contributed ₹450 crore of revenues, which is what got transferred and combined into Cloudnine. All other businesses will continue with Apollo,” Krishnan clarified.