Aster DM Healthcare (ASTERDM) Q3 24/25 earnings summary

Executive summary

• Announced a strategic merger with Blackstone-backed QCIL, creating one of India's top three hospital chains with 38 hospitals and over 10,000 beds across nine states, enhancing presence in South and Central India.

• Shareholders overwhelmingly approved the merger-related equity issuance, with 99.99% votes in favor and 92% participation; regulatory approvals are in progress, with completion targeted for Q3 FY26.

• Board approved unaudited standalone and consolidated results for the quarter and nine months ended 31 December 2024, with limited review by auditors and no modifications to their reports.

• Interim dividend of INR 4 per equity share declared for FY 2024-25, record date set as 10 February 2025.

• Completion of GCC business separation on 3 April 2024; GCC business classified as discontinued operations.

Financial highlights

• Nine months FY25 revenue grew 15% year-on-year to INR 3,138 crores, driven by 12% ARPOB growth and 4% increase in average occupied beds.

• Operating EBITDA rose 35% to INR 613 crores, with margins expanding to 19.5% from 16.6% a year ago.

• Adjusted net profit (excluding merger costs) increased 65% to INR 251 crores.

• Q3 FY25 India revenues up 11% year-on-year to INR 1,050 crores; operating EBITDA up 20% to INR 202 crores.

• Exceptional items include a non-recurring expense of INR 23.72 crores related to the merger and a gain of INR 372.70 crores from preference share redemption post-GCC business sale.

Outlook and guidance

• Plans to add approximately 1,700 beds by FY27, increasing total capacity to over 6,800 beds.

• Hospital and clinic segment margins expected to reach 24% by FY27; consolidated margins targeted at 21%.

• Strategic focus on brownfield and greenfield expansion, niche specialties, operational efficiency, and digital initiatives.

• Interim dividend of INR 4 per share reflects confidence in ongoing business performance.