Aster DM Q1 Profit Rises 22%; Plans Bengaluru Expansion

31 Jul 2025 , 02:33 PM

Aster DM Healthcare Ltd., a key player in India’s integrated healthcare sector, posted a robust financial performance for the first quarter of FY26. This is backed by steady revenue growth and operational gains. The company also announced a significant expansion move in Bengaluru. It is reinforcing its focus on scaling up operations in South India.

For the quarter ended June 30, 2025, Aster reported a consolidated revenue of ₹1,078 crore. This is up 8% from ₹1,002 crore in the same period last year. Operating EBITDA rose sharply by 21% year-on-year to ₹215 crore. EBITDA margins expanded to 20%. This is compared to 17.7% in the corresponding quarter of FY25. Post minority interest, net profit (PAT) came in at ₹90 crore. This marks a 22% annual increase.

₹580 Crore Hospital in Yeswanthpur

As part of its long-term domestic strategy, Aster is investing ₹580 crore to build a 500-bed advanced facility at Yeswanthpur in Bengaluru. Once completed, this will raise the company’s total bed capacity in the city to 2,580, placing it firmly among the top healthcare providers in the region.

The company also deepened its hold in the Andhra Pradesh market by acquiring an additional 13% stake in Aster Ramesh Hospitals, raising its total shareholding to 70.49%.

QCIL Merger Progresses

Meanwhile, Aster continues to make progress on its proposed merger with Quality Care India Ltd. (QCIL). With shareholder, CCI, and stock exchange approvals already in place, the company recently allotted around 3.6% equity to private equity firms Blackstone and TPG under its merger framework. This forms part of the agreement through which Aster is acquiring a 5% stake in QCIL.

Final regulatory clearances from SEBI and stock exchanges are currently awaited. The company plans to approach the National Company Law Tribunal (NCLT) once these are secured, with the deal expected to close by the fourth quarter of FY26.

Business Highlights

• Aster’s core hospital business delivered an EBITDA margin of 22.6% in Q1, while mature hospitals posted a margin of 24.5%. Return on Capital Employed (ROCE) stood at a healthy 34.6%.

• In Kerala, revenue grew by 5% year-on-year. This is a bounce back from a 4% dip in the previous quarter. Inpatient volumes rose 6% sequentially.

• The Karnataka and Maharashtra clusters saw a 13% increase in revenue. It saw a 23% rise in operating EBITDA, highlighting strong regional performance.

• The diagnostics segment, Aster Labs, posted a 14% year-on-year growth in revenue. It maintains a 7.6% EBITDA margin.

With expansion plans underway and a merger that will create one of India’s largest hospital networks, Aster DM Healthcare appears well-positioned to capitalise on its integrated model and deepen its reach across key markets.

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