Aster DM Healthcare (ASTERDM) Q3 25/26 earnings summary

Executive summary

• The combined pro forma platform of Aster and Quality Care achieved 15% year-on-year revenue growth to INR 2,366 crore in Q3 FY 2026, with 9% growth in patient volumes and 22% growth in operating EBITDA to INR 503 crore, reflecting operational leverage and cost management.

• The merger process with Quality Care is progressing, with all key regulatory approvals received, NCLT application filed, and completion expected in Q1 FY 2027.

• Capacity expansion continues, with 560+ beds added in the past year, taking combined capacity to over 10,620 beds and a pipeline to reach 14,710+ beds.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved with an unmodified auditor's opinion.

• Board approved the ESOP Scheme 2026, subject to shareholder approval, and several internal corporate actions including capital restructuring and statutory register relocation.

Financial highlights

• Combined proforma Q3FY26 revenue: INR 2,366 crore (+15% YoY); operating EBITDA: INR 503 crore (+22% YoY); EBITDA margin: 21.3%.

• Aster standalone Q3FY26 revenue: INR 1,186 crore (+13% YoY); operating EBITDA: INR 224 crore (+11% YoY); margin: 18.9%.

• QCIL Q3FY26 revenue: INR 1,181 crore (+17% YoY); operating EBITDA: INR 279 crore (+32% YoY); margin: 23.7%.

• Consolidated revenue from operations for the quarter was INR 1,185.76 crore; nine-month revenue was INR 3,460.84 crore.

• Oncology revenues grew 27% YoY, now contributing 11% of Q3 revenue; medical value travel segment grew 41% YoY, with Kerala MVT revenues up 64%.

• Normalized PAT (excluding labor code provisions) grew 22% YoY.

• For the nine months ended Dec 2025, India revenues increased 10% to INR 3,451 crore, with operating EBITDA up 17% to INR 715 crore (margin 20.7%).

• Discontinued operations (GCC business) reported a loss of INR 76.89 crore for the quarter.

Outlook and guidance

• The combined entity targets 24%-25% EBITDA margins within three years, supported by synergy realization and capacity expansion.

• Merger integration expected to deliver 10-15% near-term EBITDA upside through synergies in procurement, talent, and operational efficiencies.

• New greenfield projects in Trivandrum and Hyderabad are expected to ramp up without significant margin dilution, leveraging existing network benefits.

• Oncology is expected to reach high teens as a percentage of revenue in 4-5 years, driving growth and case mix improvement.

• The company is monitoring regulatory changes, including the implementation of new labor codes, and will adjust financials as further guidance is received.