Aster DM Healthcare Reports Strong Q2FY26 Performance and Merger Progress
Aster DM Healthcare reported strong Q2FY26 financials with 10% YoY revenue and 13% operating EBITDA growth. The Kerala cluster showed significant recovery, and a new hospital commenced operations. The merger with Quality Care is progressing, expected to complete by Q1FY27.
The announcement details strong financial performance, strategic expansion through new hospital commencements, and critical progress in the merger, which will significantly increase bed capacity and market presence. These factors are highly influential on the company's future prospects and valuation.
The company reported strong double-digit growth in revenue and operating EBITDA, significant recovery in the Kerala cluster, successful commencement of a new hospital, and positive progress in the merger with Quality Care. These indicate a robust operational and strategic outlook.
Aster DM Healthcare Limited has released its investor presentation for the quarter and half year ended September 30, 2025, highlighting robust financial and operational performance, alongside significant merger developments: * Financial Highlights (Q2FY26): * Revenue from Operations grew 10% year-on-year (YoY) to ₹1,197 crore (₹11.97 billion), and 11% quarter-on-quarter (QoQ). * Operating EBITDA increased 13% YoY to ₹263 crore (₹2.63 billion), and 22% QoQ, with margins expanding to 22.0% from 21.4% YoY and 20.0% QoQ. * Normalised Profit After Tax (Post-Non-Controlling Interest) rose 14% YoY to ₹110 crore (₹1.10 billion), and 23% QoQ. * Operational Highlights: * Average Revenue Per Patient (ARPP) In-patient (IP) rose 10% YoY to ₹1,18,552. * Total patient volume grew 15% QoQ, with IP volume up 12% QoQ and Out-patient (OP) volume up 15% QoQ. * Overall occupancy improved to 64% from 59% in Q1FY26. * Oncology revenue grew 26% YoY, increasing its contribution to 11% in Q2FY26 from 9% in Q2FY25. * Kerala Cluster Recovery: * The Kerala cluster achieved its highest-ever quarterly revenue of ₹620 crore, marking an 11% YoY and 12% QoQ increase, driven by growth in Medical Value Travel (MVT) and Oncology revenue. * Operating EBITDA for the Kerala cluster grew 19% YoY, with margins expanding to 26.8%. * Aster MIMS Kasargod, a new 264-bed multispecialty hospital built with a ₹190 crore investment, commenced operations on October 2, 2025. * Quality Care (QCIL) Performance (Unaudited): * QCIL reported 15% YoY revenue growth to ₹1,193 crore (₹11.93 billion) and 22% YoY operating EBITDA growth to ₹287 crore (₹2.87 billion). * Operating EBITDA margin stood at 24.1% in Q2FY26. * Merged Entity Proforma (Q2FY26): * The proforma combined entity would have reported revenue of ₹2,390 crore (₹23.90 billion) and operating EBITDA of ₹550 crore (₹5.50 billion), with a 23.0% operating EBITDA margin. * Total merged bed capacity is projected to exceed 10,360 beds. * Merger Update: * The company received No-Objection Letters from both BSE and NSE for the merger with Quality Care. * The Share Swap has been completed, resulting in Aster owning a 5.0% stake in Quality Care. * Aster will now approach the National Company Law Tribunal (NCLT) for final approval. * The expected timeline for the completion of the merger is Q1FY27. * Expansion & ESG: * Added over 200 beds in the last year, bringing total capacity to 5,199 beds as of September 30, 2025. * Planned addition of 2,300+ beds, targeting over 7,800 capacity, with Aster Whitefield and Ramesh Ongole expected to commence in H2 FY26. * Commissioned an 8.5 MW solar park in Kasargod, Kerala, projected to reduce 11.5K tonnes of CO₂e annually.
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Aster DM Healthcare Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Aster DM Healthcare Limited. Read the original for the full detail.