Apollo Hospitals Enterprises is planning to sell its maternity and infant care division, Apollo Cradle and Children’s Hospital Ltd (ACCHL), people familiar with the development told Economic Times. Per the report, Apollo has hired Allegro Capital to find a buyer for the asset, which is likely to be valued at Rs 1,000- Rs 1,200 crore.
ACCHL is a subsidiary of Apollo Specialty Hospitals and runs 13 maternity and child care centers across major cities, including Delhi, Bengaluru, Chennai, Hyderabad, Amritsar, Gurugram, Noida, and Ghaziabad, with a combined bed capacity of 363.
Shares of Apollo Hospitals went up by 1.14 per cent at 10:40 am on Monday to Rs 6,956.55.
Besides Apollo Cradle, the sector is largely dominated by players like Rainbow Children’s Medicare, Motherhood, Cloudnine Hospitals, and Kangaroo Care.
Earlier on May 30, Apollo Hospitals had reported its fiscal fourth quarter earnings with profit growth of 59.3 per cent on-year at Rs 411.5 crore in comparison to Rs 258.4 crore recorded during the year ago period. It posted revenue from operations at Rs 5,592.2 crore, up 13.1 per cent year-on-year. During the quarter in review, it said, higher patient volumes and improved operational efficiencies boosted margins.
Given the company’s plan for 1,500-plus beds in FY26, coupled with low-teens growth expectations from the existing beds, Nuvama bets on hospital revenue growth of approximately 16 per cent CAGR over FY25-27. In addition, an incremental 2,400 beds are planned over the next three–four years, which should keep the growth engine running. “While ~140bp margin impact is expected (largely in Q4FY26), management has plans in place to protect margin by undertaking cost control and improving payor and case mix. That said, execution would be key, and we have built in an 80bp margin impact in FY27,” the brokerage firm said.