Aster DM Healthcare (ASTERDM) Q2 25/26 earnings summary

Executive summary

• Delivered double-digit year-on-year growth in revenue and operating EBITDA for Q2 FY26, led by strong recovery in Kerala, robust international revenue, and improved case mix, with 20 consecutive quarters of revenue growth.

• The merger with Quality Care India Limited (QCL) is advancing, with all key regulatory approvals received and expected completion in Q1 FY27, creating a leading healthcare platform with 38 hospitals and 10,360 beds.

• Unaudited standalone and consolidated financial results for the quarter and six months ended 30 September 2025 were approved, with the statutory auditor issuing an unmodified opinion.

• Recognized for leadership, innovation, and clinical excellence, with multiple awards for individuals and institutions.

• Board changes included the resignation of a Non-Executive Director and induction of a new member, with committee reassignments.

Financial highlights

• Q2 FY26 consolidated revenue grew 10% YoY to INR 1,197 crore; operating EBITDA increased 13% YoY to INR 263 crore, with margin expanding to 22% from 20% in Q1 FY26.

• Normalized PAT rose 14% YoY to INR 110 crore; consolidated net profit for Q2 FY26 was INR 121.31 crore.

• H1 FY26 India revenues up 9% YoY to INR 2,275 crore; operating EBITDA up 17% to INR 478 crore.

• QCL revenue grew 15.1% YoY to INR 1,193 crore; post-index EBITDA up 21.6% YoY to INR 287 crore, margin at 24.1%.

• Basic EPS (consolidated) for Q2 FY26 was INR 2.13, up from INR 1.94 in Q2 FY25.

Outlook and guidance

• Targeting 24%-25% EBITDA margin for the merged entity in the next 2-3 years, driven by synergies and operational efficiencies.

• ARPP for IP expected to grow 7%-8% annually over the next 2-3 years.

• Expansion plans include adding over 2,300 beds in Aster and 1,700 beds in QCL over the next 3-4 years, with a focus on Tier 2 markets.

• Merger integration planning underway, with identified synergies expected to deliver 10-15% near-term EBITDA upside.

• The Board deferred approval of the new Employee Stock Option Scheme (ESOS 2025) to a future meeting.