Aster DM Quality Care (ASTERDM) Q2 26/27 earnings summary

Executive summary

• First full quarter following the merger; 2.2 million patients served, up 12% YoY, with continuity of care maintained across the network.

• Record Q2 revenue of INR 2,829.20 crore, operating EBITDA of INR 678 crore and operating EBITDA margin of 24.0%.

• Integration delivered INR 16.6 crore of Q2 synergies, with an annualized run rate of INR 65 crore.

Financial highlights

• Q2 revenue rose 19% YoY to INR 2,829 crore and operating EBITDA grew 25% to INR 678 crore; margin expanded 111 bps to 24.0% on a comparable basis.

• Q2 normalized PAT after NCI increased 34% YoY to INR 281 crore, with a 9.9% margin; consolidated net profit was INR 322.38 crore.

• H1 combined revenue grew 20% YoY to INR 5,429 crore and operating EBITDA increased 27% to INR 1,255 crore; normalized PAT rose 27% to INR 457 crore.

• H1 consolidated reported revenue was INR 4,139.88 crore, PBT INR 497.43 crore and net profit INR 351.66 crore; prior periods were not restated after the merger.

• Q2 gross margin was 78.3%, up from 77.6% YoY; PBT was INR 446 crore, up 19%.

Outlook and guidance

• Synergy potential is INR 200 crore; run rate targeted within four quarters, with full potential expected by the sixth or seventh quarter.

• Operating EBITDA margin target is 24%–25% within two to three years, including synergies, greenfield turnarounds and brownfield expansion.

• Planned capacity additions of 4,230 beds are expected to take capacity from 10,840 to 15,070; 47% are brownfield and 53% greenfield.

• The 454-bed Aster Trivandrum Hospital is part of FY27 expansion and progressing to plan.