Aster DM Healthcare (ASTERDM) Q4 24/25 earnings summary

Executive summary

• Achieved 12% revenue growth in FY25, reaching INR 4,138 crore, with strong double-digit growth in key clusters and improved clinical protocols reducing ALOS by 6%.

• Operating EBITDA grew 30% to INR 806 crore, with margin expansion to 19.5% (up 270 bps YoY), reflecting operational excellence and cost discipline.

• Normalized PAT (excluding NCI and one-offs) rose 49% to INR 357 crore, aided by operational leverage and GCC business restructuring.

• Strategic merger with Quality Care India Limited (QCIL) completed, increasing equity base and expanding operations; full integration expected by Q4 FY26.

• Board approved audited results for FY25, with unmodified auditor opinions and a final dividend of INR 1 per share recommended.

Financial highlights

• FY25 revenue: INR 4,138 crore (+12% YoY); Q4 FY25 revenue: INR 1,000 crore (+2% YoY); operating EBITDA: INR 806 crore (+30% YoY); margin: 19.5%.

• Karnataka and Maharashtra cluster revenue grew 28% YoY to INR 1,408 crore, EBITDA margin at 28.8%.

• Kerala cluster revenue up 5% YoY to INR 2,108 crore, EBITDA margin improved to 23.4%.

• Andhra and Telangana cluster revenue up 15% YoY to INR 473 crore, EBITDA margin at 12.7%.

• Lab business turned around to positive EBITDA, with 12% revenue growth.

Outlook and guidance

• Plans to add over 2,100 new beds, targeting ~7,300 total capacity by FY27, funded through internal accruals and cash reserves.

• Targeting mid-teens growth in Kerala, with volume growth expected at 7-8% going forward.

• Aims for 23-24% group EBITDA margin over next 3-4 years, with hospital segment potentially higher.

• Integration with QCIL expected to deliver 10-15% near-term EBITDA synergies.

• Board approved incorporation of three new wholly owned subsidiaries to support future growth.