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 top 3 hospital chain in India with 39 hospitals and over 10,800 beds, executed with strong cultural integration and zero operational friction.

• The combined entity demonstrates strong year-on-year revenue growth, operational leverage, and improved margins, driven by increased patient volumes, specialty mix, and digital health initiatives.

• Strategic priorities include scaling super-specialty care, expanding into Tier 2 and Tier 3 cities, and driving patient-centric innovation.

• The merger was sanctioned by NCLT and included a name change, with auditors expressing an unmodified review conclusion on the unaudited results.

• Backed by Blackstone, the merger aims for scale, enhanced metrics, synergies, diversification, and long-term value creation.

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 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.

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

• Normalised PAT (post NCI) for Aster grew 39% YoY to INR 125 crore in Q1 FY 2027.

• Exceptional merger-related costs impacted net profit, with consolidated net profit at INR 29.28 crore and standalone net loss at INR 14.30 crore.

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 based on FY 2024 pro forma, with significant benefits anticipated from scale and operational integration.

• Planned expansion to add over 4,170 beds, targeting 15,077 total beds by FY30, with 53% in existing and 47% in new facilities.

• Medical Value Travel (MVT) is targeted to reach double-digit revenue contribution, with growth rates above 50%.

• Ongoing investments in subsidiaries and associates support strategic growth.