Apollo HealthCo swings to Rs 32 Cr profit in Q3 FY25

Apollo HealthCo, the digital healthcare and omnichannel pharmacy arm of Apollo Hospitals, reported a positive profit after tax (PAT) of Rs 32 crore in the third quarter of FY25, reversing a Rs 28 crore loss recorded in Q3 FY24, according to BSE filings.

The company’s revenue grew by 15% year-on-year (YoY) to Rs 2,352 crore, driven by robust performance in its pharmacy distribution and digital health segments. HealthCo's earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 57 crore for the quarter. The gross merchandise value (GMV) of its Apollo 24/7 digital platform reached Rs 760 crore, reflecting an 11% YoY growth.

For the nine months ending December 2024 (YTD Dec FY25), Apollo Heathco’s revenue stood at Rs 6,717 crore, marking a 16% YoY increase from Rs 5,800 crore in the corresponding period of FY24. The EBITDA improved to Rs 131 crore, compared to a loss of Rs 93 crore in the previous year. The company also turned profitable at the net level, posting a PAT of Rs 38 crore, in contrast to a loss of Rs 178 crore in YTD Dec FY24.

Offline and digital segments continue to expand

Apollo HealthCo's offline pharmacy distribution revenue stood at Rs 2,079 crore in Q3 FY25, while its digital platform revenue reached Rs 274 crore. The company’s total revenue for the quarter was Rs 2,352 crore.

Apollo HealthCo continued its retail expansion, adding 132 new pharmacy stores, bringing the total store count to 6,360 outlets. The Apollo 24/7 platform also maintained steady growth, with an average daily order volume of 75,000 across pharmaceuticals, diagnostics, and consultations, up from 61,000 in Q3 FY24.

Earlier, Apollo HealthCo has provided guidance to reach breakeven in its digital business within 18-24 months after two years of significant cash burn. The operating costs of its digital division surged from Rs 25 crore ($2.9 million) in FY21 to Rs 658 crore ($78 million) in FY23.

Apollo HealthCo secured a $300 million investment from private equity firm Advent International in April 2024, valuing the company at $1.73 billion. Advent acquired a 12.1% stake in the combined entity. Apollo also merged the wholesale pharma unit Keimed with Apollo HealthCo.

The company also had leadership rejigs, in January 2024, Antony Jacob stepped down as CEO of Apollo 24/7 after three years and was replaced by Madhivanan Balakrishnan, a former IDFC Bank executive.

In terms of competitive landscape, PharmEasy is currently restructuring its business after a valuation markdown. Its founders are also on the way out.  While 1mg is expanding its physical presence. One of the biggest advantages of HealthCo is the retail network of over 6,000 drugstores. An important advantage over its online peers.