Apollo Hospitals Enterprise Ltd. plans to double its investment in artificial intelligence (AI) capabilities over the next two to three years, CEO Madhu Sasidhar said, following stronger-than-expected first-quarter profits driven by higher patient volumes.
Expanding AI in Healthcare Operations
The hospital chain already employs AI tools for diagnostics, including reading X-rays, interpreting scan reports, and assisting in endoscopy procedures. Recently, Apollo developed technology that can analyze existing scan reports to predict the risk of liver fibrosis. “We are also bringing some other new generation agentic AI-type tools,” Sasidhar said.
Earlier this year, Apollo partnered with Microsoft to develop AI-based healthcare solutions, some of which are currently in early testing stages. Sasidhar did not disclose the size of the company’s current AI investment.
Growing Trend in AI Adoption Among Indian Hospitals
Many large private hospital chains in India, following trends in Western healthcare systems, are increasing their AI capabilities to enhance diagnosis, improve decision-making for medical procedures, and streamline clinical workflows.
Expansion of Physical Infrastructure
In addition to its AI focus, Apollo is increasing its bed count to capture a larger share of the market. The company aims to add 4,370 beds over the next three to four years through acquisitions, new hospital projects, and expansion of existing facilities. Currently, Apollo operates more than 10,000 beds.
Strong Financial Performance in Q1
As reported by Reuters, Apollo’s consolidated net profit rose 41.8% year-on-year to ₹4.33 billion ($49.4 million) for the April–June quarter, surpassing analysts’ expectations of ₹3.86 billion, according to LSEG data. Quarterly revenue increased 15% to ₹58.42 billion, beating estimates of ₹57.44 billion.
While overall occupancy rates dipped compared to last year, in-patient volumes grew by 3%, and average revenue per in-patient rose by 9%. The company projects double-digit revenue growth for the current financial year.