Apollo Hospitals targets new regions including Iraq, Oman, and Southeast Asia as revenue hit from Bangladesh slump triggers diversification strategy.
Apollo Hospitals, one of India’s leading private healthcare providers, has announced strategic expansion plans across Iraq, Oman, Southeast Asia, and Africa, as patient inflow from Bangladesh—a key international market—remains subdued. The announcement came after a sharp 28.2% decline in medical visa issuance from Bangladesh in 2024, significantly affecting Apollo’s patient volumes and revenues in key hubs like Chennai and Kolkata. Managing Director Suneeta Reddy confirmed that the company is actively working to diversify patient sourcing and build partnerships, including a new collaboration with hospitals in Indonesia.
For traders and investors, this move signals Apollo’s effort to offset geopolitical headwinds and preserve its leadership in India’s medical tourism sector, which commands higher margins and foreign revenue contributions.
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Market Reaction and Technical Outlook
While Apollo Hospitals stock (NSE: APOLLOHOSP) traded flat in early Monday sessions, analysts expect upside momentum if patient volumes rebound in the second half of FY25. The stock has shown resilience, holding above its 50-day moving average (₹6,050) and trading near its 200-DMA support at ₹5,940. The Relative Strength Index (RSI) stands neutral around 52, indicating potential for fresh entry points if volume trends pick up.
Option chain data shows bullish open interest build-up at the ₹6,200 strike, suggesting traders are positioning for a breakout on positive recovery cues from Bangladesh or execution of new international patient channels.
Brokerages remain selectively optimistic, with ICICI Securities maintaining a ‘Buy’ rating, citing long-term tailwinds from India’s cost advantage in tertiary care and Apollo’s specialty portfolio expansion in oncology, cardiology, and neurosciences.
Broader Sector and Index Impact
The international patient slowdown has impacted other listed hospital chains including Fortis Healthcare and Max Healthcare, both of which derive a significant portion of revenue from medical tourism. While the Nifty Healthcare index has underperformed broader markets in recent weeks, sector rotation could favor hospital stocks if international volumes stabilize.
FII flows into Indian healthcare remain muted in Q1 FY25, but selective buying has been observed in Apollo and Max during block deals. Nifty 50 continues to hover near record highs, providing support to defensive healthcare plays amid global uncertainty.
Trading Sentiment and Watchlist Ahead
With international patient business contributing 15–20% premium margins, traders should closely monitor any visa policy shifts, diplomatic updates with Bangladesh, and Apollo’s execution timelines in new markets. Reddy expects Bangladesh inflows to normalize by end-2025, making H2 earnings crucial for margin recovery.
Short-term watchlist includes:
Apollo Hospitals (₹6,050) – Watch for breakout above ₹6,200 on delivery volume surge
Fortis Healthcare (₹395) – Key support at ₹380; rebound possible on sector-wide patient uptick
Max Healthcare (₹660) – Momentum above ₹675 could signal strength in institutional flow recovery
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