Aster DM Quality Care (ASTERDM) investor relations material

Executive summary

• The merger of Aster DM Healthcare and Quality Care, effective July 1, 2026, created a unified healthcare platform with 39 hospitals and over 10,800 beds, executed with strong cultural integration and zero operational friction.

• The combined entity is now a top 3 hospital chain in India, aiming to deliver high-quality, accessible care across the country.

• Strategic priorities include scaling super-specialty care, expanding into Tier 2 and Tier 3 cities, and driving patient-centric innovation through digital health and advanced clinical protocols.

• The merger was backed by Blackstone and is expected to unlock significant operational and clinical synergies, with a focus on long-term value creation and standardized best practices.

• Unaudited consolidated and standalone financial results for the quarter ended June 30, 2026, were reviewed and approved, with auditors expressing an unmodified review conclusion.

Financial highlights

• Q1 FY 2027 pro forma revenue rose 20% year-on-year to INR 2,597 crore; EBITDA grew 30% to INR 576 crore, with EBITDA margin expanding 170 bps to 22.2%.

• Mature units contributed 73% of revenue, growing 19% year-on-year; emerging units saw up to 95% revenue growth and 240% EBITDA growth, with margins more than doubling to 12.4%.

• Aster DM platform revenue increased 22% year-over-year to INR 1,311 crore; normalized PAT (excluding exceptional merger costs) up 39% to INR 125 crore.

• Quality Care revenue grew 19% year-over-year to INR 1,287 crore; operating EBITDA up 32% to INR 299 crore, margin at 23.2%.

• Net debt at combined level is INR 1,162 crore as of June 30, 2026.

Outlook and guidance

• Management maintains guidance of achieving 24%-25% EBITDA margin within two to three years post-merger, targeting FY 2028-2029.

• Synergy realization is expected to deliver 10%-15% incremental EBITDA (INR 150-200 crore) over FY 2024 pro forma base through cost optimization, IT integration, and operational efficiencies.

• Brownfield expansion will add over 4,170 beds in the next 3-4 years, targeting a total capacity of 15,077 beds by FY30, with 53% of expansion via brownfield projects.

• Medical Value Travel (MVT) is targeted to reach double-digit revenue contribution in the next few years, with growth rates expected to exceed 50% annually.

• The company continues to invest in subsidiaries and associates, indicating ongoing expansion and strategic growth.