Aster DM Quality Care (ASTERDM) Q1 26/27 earnings summary

Executive summary

• The merger of Aster DM Healthcare and Quality Care, effective July 1, 2026, created a top 3 hospital chain in India with 39 hospitals, 10,559 operational beds, 45 hospital staff, and 7,000+ doctors, executed with zero operational friction and strong cultural integration.

• Strategic priorities include scaling super-specialty care, expanding access to tier 2/3 markets, and driving patient-centric innovation through digital health platforms.

• The combined entity is positioned for long-term value creation, leveraging operational and clinical synergies, diversification, and Blackstone backing.

• Unaudited consolidated and standalone financial results for the quarter ended 30 June 2026 were reviewed and approved, with auditors expressing an unmodified review conclusion.

Financial highlights

• Q1 FY 2027 pro forma revenue rose 20% year-on-year to INR 2,597 crore; EBITDA grew 30% to INR 576 crore, with margin up 170 bps to 22.2%.

• Over 2 million patients treated in Q1, up 13% year-on-year; blended occupancy increased 510 bps to 64%.

• Medical Value Travel (MVT) grew 62% year-on-year, driven by new geographies and international patient inflows.

• Mature units contributed 73% of revenue, growing 19% year-on-year; emerging units saw up to 95% revenue growth and 240% EBITDA growth.

• Normalised PAT (excl. exceptional costs) up 39% to INR 125 crore in Q1FY27.

• Consolidated revenue from operations for the quarter was INR 1,310.68 crores, up from INR 1,077.87 crores year-over-year.

• Exceptional items related to merger costs amounted to INR 114.38 crores (consolidated).

Outlook and guidance

• Targeting EBITDA margin of 24%-25% within 2-3 years post-merger, with synergy realization expected to add 10%-15% incremental EBITDA based on FY 2024 pro forma.

• Expansion plan to add 4,179 beds over 3-4 years, reaching 15,077 beds, with 53% of expansion as brownfield for faster returns and lower risk.

• MVT share targeted to reach double digits over the next few years, with continued >50% growth rates.

• The company continues to invest in subsidiaries and associates, indicating ongoing expansion and strategic growth.