Aster DM Healthcare (ASTERDM) Q4 25/26 earnings summary

Executive summary

• The merger with Quality Care is nearing completion, pending final NCLT approval, with overwhelming shareholder and creditor support and all key regulatory clearances obtained; expected to complete in Q1FY27, creating one of India's largest hospital networks.

• Combined pro forma performance shows robust growth, operating leverage, and improved capital efficiency, with strong patient volumes, improved payor mix, and a shift to higher-acuity care.

• Both Aster and QCIL delivered double-digit revenue and EBITDA growth, supported by disciplined expansion, clinical excellence, and strategic focus on high-value segments.

• Consolidated revenue from operations for FY26 was INR 4,643.22 crores, up from INR 4,138.46 crores year-over-year.

• The group completed the separation of its GCC business, classifying it as discontinued operations.

Financial highlights

• Combined pro forma Q4 revenue grew 18% YoY to INR 2,361 crore; operating EBITDA up 25% to INR 517 crore, with margins at 21.9%.

• FY26 combined revenue reached INR 9,273 crore, up 14% YoY; operating EBITDA grew 21% to INR 2,013 crore, with margins at 21.7%.

• Standalone revenue for Q4FY26 was INR 1,182 crore (up 18% YoY); FY26 revenue at INR 4,643 crore (up 12% YoY).

• Normalized PAT for Aster India Q4 was INR 153 crore (+45% YoY); FY26 normalized PAT at INR 451 crore (+26% YoY).

• EBITDA for FY26 was INR 639.40 crore, up from INR 540.11 crore in FY25.

Outlook and guidance

• Capacity expansion plans include adding 4,445 beds by FY30, targeting a total capacity of 15,068 beds, with a focus on brownfield projects.

• Both entities expect continued revenue and margin growth, driven by clinical mix improvement, expansion, and post-merger synergies, with a targeted 10-15% near-term EBITDA upside.

• No significant margin dilution expected from new capacity additions; brownfield expansions are EBITDA accretive.

• The group continues to monitor regulatory changes, including new labour codes, and will adjust for future developments.

• Management expects continued growth in core healthcare operations post-GCC business separation.