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 FY26, 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 FY27.

• Capacity expansion continues, with 560+ beds added in the past year, taking total 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 was INR 2,366 crore (+15% YoY), operating EBITDA INR 503 crore (+22% YoY), and EBITDA margin 21.3%.

• Aster's standalone Q3FY26 revenue was INR 1,186 crore (+13% YoY), with operating EBITDA of INR 224 crore (+11% YoY) and margin of 18.9%.

• Quality Care reported Q3FY26 revenue of INR 1,181 crore (+17% YoY) and operating EBITDA of INR 279 crore (+32% YoY), with margin at 23.7%.

• Consolidated net profit for the quarter was INR 58.65 crore; nine-month net profit was INR 273.52 crore.

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

Outlook and guidance

• Management targets 24%-25% EBITDA margin for the merged entity within three years, driven by synergy realization and capacity expansion.

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

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