Apollo Hospitals Enterprise is preparing to sell its maternity and pediatric care division, Apollo Cradle and Children’s Hospital Ltd. (ACCHL), according to sources familiar with the matter. The company has appointed Allergo Capital to oversee the search for a potential buyer. The valuation of the unit is estimated to be between ₹1,000 crore and ₹2,000 crore.
ACCHL, a subsidiary of Apollo Speciality Hospitals, operates 13 facilities dedicated to maternity and child care in major Indian cities, including Delhi, Bengaluru, Chennai, Hyderabad, Amritsar, Gurugram, Noida, and Ghaziabad. The total bed capacity across these centers is 363.
Following the news, Apollo Hospitals’ shares rose by 1.14%, reaching ₹6,956.55.
The maternity and pediatric healthcare space is also home to key competitors such as Rainbow Children’s Medicare, Motherhood Hospitals, Cloudnine, and Kangaroo Care.
Earlier, on May 30, Apollo Hospitals reported a strong performance for the fourth quarter of the fiscal year. Net profit jumped 59.3% year-on-year to ₹411.5 crore, up from ₹258.4 crore during the same period last year. Revenue from operations climbed 13.1% to ₹5,592.2 crore, supported by increased patient volumes and better operational efficiency, which helped enhance margins.
Looking ahead, Apollo has ambitious expansion plans. The company aims to add over 1,500 beds by FY26, with projected low double-digit growth from existing facilities. Brokerage firm Nuvama anticipates hospital revenues to grow at a compound annual growth rate (CAGR) of around 16% between FY25 and FY27. Additionally, Apollo is planning to expand its capacity by another 2,400 beds over the next three to four years.
While a 140 basis point decline in margins is expected primarily in Q4 of FY26 Apollo’s management is working on strategies to offset the impact. These include cost-cutting measures and optimizing the payor and case mix. Nuvama has factored in an 80 basis point margin reduction for FY27, noting that successful execution will be critical to maintaining performance.
