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

Executive summary

• The combined Aster and Quality Care platform delivered 15% year-on-year revenue growth to INR 2,366 crore in Q3FY26, with 9% growth in patient volumes and 22% year-on-year EBITDA growth to INR 503 crore, reflecting operational leverage and cost management.

• The merger process with Quality Care is progressing, with all major regulatory approvals received, NCLT application filed, and completion expected in Q1 FY27.

• Over 560 beds were added in the last year, taking total capacity to 10,620+ beds, with a pipeline to reach 14,710 beds through greenfield and brownfield expansion.

• 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 pro forma Q3FY26 revenue was INR 2,366 crore (+15% YoY), operating EBITDA INR 503 crore (+22% YoY), and EBITDA margin 21.3%.

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

• Quality Care Q3FY26 revenue was INR 1,181 crore (+17% YoY), operating EBITDA INR 279 crore (+32% YoY), and 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.

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

Outlook and guidance

• Combined entity targets 24%-25% EBITDA margin within three years, supported by synergy benefits and capacity expansion.

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

• Over 4,000 additional beds planned, with Quality Care investing INR 2,000 crore to add 1,700+ beds in 3-4 years, focusing on Tier 2 markets.

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

• Ongoing merger process with Quality Care India Limited, with NCLT meetings scheduled for February–March 2026.