Apollo Hospitals said the merger of its Cradle business with Cloudnine at a 35x EBITDA multiple highlights the strong embedded asset value within the company’s healthcare portfolio, according to management commentary during the Q4 FY26 concall.
The company stated that the transaction not only unlocks value from its mother-and-child care business but also enables sharper strategic focus on high-acuity healthcare services and primary diagnostics.
Apollo Hospitals will retain a 9.9% stake and a board seat in the merged entity, allowing it to continue participating in the fast-growing mother-and-child care segment while reducing operational intensity in the vertical.
Management indicated that the transaction strengthens capital allocation efficiency and supports Apollo’s broader strategy of focusing on complex healthcare delivery, premium tertiary care, and diagnostics-led expansion.
The commentary came alongside Apollo Hospitals’ strong Q4 FY26 earnings performance. The company reported consolidated revenue from operations of Rs 6,606 crore, up 18.10% year-on-year, while consolidated PAT rose 35.60% to Rs 529 crore.
Investor sentiment remained strong following the update, with Apollo Hospitals shares rising to a fresh 52-week high during Thursday’s trading session.
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