Aster DM Healthcare (ASTERDM) Q1 25/26 earnings summary

Executive summary

• Q1 FY 2026 achieved 8% YoY revenue growth to INR 1,078 crore and 21% YoY operating EBITDA growth to INR 215 crore, with margin improving by 230 bps to 20%.

• Kerala cluster rebounded with 5% YoY revenue growth and 6% sequential volume increase; Karnataka & Maharashtra cluster revenue grew 13% YoY.

• Oncology revenue rose 16% YoY, now contributing 11% of total revenue.

• The merger with QCIL is progressing, with regulatory approvals and share swaps completed, aiming to create a 10,350+ bed network across 38 hospitals.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2025, with an unmodified auditor's opinion.

Financial highlights

• Q1 FY 2026 consolidated revenue reached INR 1,078 crore, up 8% YoY; operating EBITDA grew 21% to INR 215 crore, with margins expanding to 20%.

• Normalized PAT rose 22% YoY to INR 90 crore, excluding one-time merger costs; consolidated profit for the period was INR 93.56 crore.

• ARPOB increased 14% YoY, crossing INR 50,000 per bed; ALOS reduced by 4% to 3.1 days.

• Cash and cash equivalents stood at INR 1,455 crore; ROCE improved from 16.5% to 20.7%.

• Non-recurring expense of INR 4.39 crore for merger and proposed acquisition recognized as an exceptional item.

Outlook and guidance

• Confident in sustaining growth and profitability, with plans to add 2,600+ beds, targeting over 7,800 beds in the near term and 14,000 beds at group level in 2–3 years.

• Merger with Quality Care expected to close in Q4 FY26, with identified EBITDA synergies of 10–15% near-term upside.

• Capacity at Aster Whitefield Hospital to increase from 347 to 506 beds following asset transfer.