Earnings + Strategic Update (Merger Progress)

Aster DM Healthcare Delivers Strong Q4 FY26; Revenue Up 18% YoY, EBITDA Growth Continues

NSE

asterdm

BSE

540975

Aster DM Healthcare reported strong Q4 FY26 results with 18% YoY revenue growth and 31% YoY EBITDA growth (ex-Kasaragod), supported by higher patient volumes, specialty mix improvement, and operational efficiency. The merger with Quality Care India Ltd (QCIL) is progressing toward completion

PRICE-SENSITIVE TRIGGER

Event: Q4 & FY26 Financial Results Announcement

Type: Earnings + Strategic Update (Merger Progress)

Impact: Positive

Immediate Effect: Improved margins and strong volume growth enhance earnings visibility, while merger progress adds long-term re-rating potential.

Key Metrics:

Key Metrics (Standalone – Q4 FY26):

Revenue: ₹1,182 crore (+18% YoY)
Operating EBITDA (ex-Kasaragod): ₹253 crore (+31% YoY)
EBITDA Margin: 21.7% (vs 19.3% YoY)
Normalised PAT: ₹153 crore (+45% YoY)

Combined (Aster + QCIL Proforma):

Revenue: ₹2,361 crore (+18% YoY)
Operating EBITDA: ₹517 crore (+25% YoY)
EBITDA Margin: 21.9%

Highlight:

EBITDA Growth: +31% YoY (Standalone) — strong operating leverage

What Happened ?

Aster DM Healthcare announced its Q4 FY26 results, reporting strong growth across hospitals, clinics, and labs segments.

The company also highlighted:

Strong patient volume growth
Margin expansion across clusters
Significant progress in merger with Quality Care India Ltd

key highlights

Core Business Performance:

ARPP (Average Revenue Per Patient) increased by 9% YoY
Total patient volume grew 15% YoY
IP volume growth: +7% YoY
OP volume growth: +15% YoY
Strong growth in cardiac (+25%) and oncology (+23%) segments

Labs & Specialty Growth:

Aster Labs revenue grew 18% YoY
EBITDA surged 181% YoY
Margin improved to 14.7% (vs 6.2% YoY)

Cluster-wise Performance:

Kerala revenue growth: +21% YoY
Andhra & Telangana revenue growth: +30% YoY
Kerala EBITDA growth: +27% YoY
Karnataka & Maharashtra EBITDA growth: +25% YoY
Andhra & Telangana EBITDA growth: +113% YoY

Merger Update (Key Strategic Trigger):

Preferential allotment completed (~3.6% stake to Blackstone & TPG)
CCI approval received
Stock exchanges issued no-objection
Shareholders & creditors approved merger (96.68% votes in favor)
Final approval pending NCLT
Expected completion: Q1 FY27

Note:

Post-merger entity will have >10,600 beds with strong expansion pipeline

Risk Analysis

Key Risks

Merger completion subject to regulatory approvals (NCLT)
Integration risks post-merger
Healthcare cost inflation
Dependence on occupancy and ARPP growth
Regional concentration risk (Kerala heavy exposure)

Worst Case Scenario

Delay in merger or integration challenges could impact valuation upside and operational synergies

Risk Level: Medium

Company Commentary

Strong execution led to consistent revenue growth
EBITDA growth driven by operating leverage and cost discipline
Merger progressing with strong shareholder support
Aim to build a top-tier integrated healthcare platform in India
Capacity expansion to >15,500 beds in near term

Official Exchange Filing: Aster DM Healthcare Limited