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

Executive summary

• Delivered steady financial performance in Q2 FY26, with double-digit revenue and EBITDA growth, led by strong recovery in Kerala and improved case mix.

• Achieved 20% revenue CAGR and 38% operating EBITDA CAGR over five years, reflecting strong scale and profitability.

• Merger with Quality Care India Limited (QCL) progressing, with all key regulatory approvals received and integration underway; expected completion in Q1FY27.

• Recognized for leadership, innovation, and clinical excellence, with multiple awards for management, institutional, and digital transformation.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY26 were approved, with an unmodified auditor opinion.

Financial highlights

• Q2 FY26 consolidated revenue grew 10% YoY to INR 1,197 crore; underlying organic revenue growth at 13%.

• Operating EBITDA increased 13% YoY to INR 263 crore, with margin expanding to 22%.

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

• Kerala cluster delivered record revenue of INR 620 crore, up 24% sequentially and 11% YoY.

• Combined proforma revenue for merged entity: INR 2,390 crore, with operating EBITDA of INR 550 crore and margin of 23%.

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 growth expected at 7%-8% CAGR 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, focusing on both metro and Tier 2 markets.

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

• No explicit forward-looking financial guidance was provided in the statutory results.