Aster DM Healthcare , a leading healthcare provider, has reported a robust financial performance for the second quarter of fiscal year 2026 (Q2FY26), with significant growth in revenue and profitability. The company's strategic focus on high-value care and operational efficiency has yielded positive results across its key markets.

Financial Highlights

Operational Performance

• Kerala Cluster: Achieved record quarterly revenue of ₹620.00 Crore, growing 11% YoY
• Karnataka & Maharashtra: Reported 10% YoY revenue growth
• Andhra Pradesh & Telangana: Revenue grew 8% YoY

Key Growth Drivers

1. Specialty Mix Improvement:

   • Oncology revenue grew by 26% YoY, now contributing 11% to total revenue
   • CONGO-T (Cardiology, Oncology, Neurosciences, Gastroenterology, and Orthopedics) specialties showed strong performance

2. Medical Value Travel (MVT):

   • MVT segment grew 60% QoQ and 26% YoY
   • Kerala cluster's MVT business grew by 67%, particularly from Maldives, Middle East, and North African countries

3. Operational Efficiency:

   • Average Length of Stay (ALOS) reduced to 3.1 days from 3.2-3.3 days
   • Enhanced cost control and clinical efficiency across the network

4. Payor Mix Optimization:

   • Increased focus on cash and insurance patients

Expansion and Future Outlook

Aster DM Healthcare continues to expand its footprint and enhance its capabilities:

• Added over 200 beds in the past year, bringing total capacity to 5,199 beds
• Commissioned a new 264-bed hospital in Kasaragod, Kerala on October 2, 2025
• Plans to add another 2,300+ beds through greenfield and brownfield projects in the coming years

The company is also progressing with its merger with Quality Care India Limited, which is expected to create a combined entity with 38 hospitals across 27 cities and over 10,360 beds.

Management Commentary

Alisha Moopen, Deputy Managing Director, stated, "Q2 FY26 has been a period of meaningful progress for Aster, marked by steady financial performance, recovery in a key market i.e. Kerala, and continued advancement of our long-term strategic priorities."

Ramesh Kumar, Chief Operating Officer, highlighted the strong performance of the Kerala cluster, noting, "The improvement was driven primarily by a richer specialty mix, and a 5% YoY increase in ARPP (IP), supported by higher contribution from complex procedures and MVT business growth."

Sunil Kumar, Chief Financial Officer, commented on the margin improvement, saying, "Despite lower incidence of vector-borne diseases - which typically carry higher margins - I'm pleased to share that our Operating EBITDA improved by 13% YoY."

Aster DM Healthcare's Q2 FY26 results demonstrate the company's resilience and ability to deliver consistent growth. With its focus on expanding high-value care services, operational efficiency, and strategic expansion, the company is well-positioned for sustainable growth in the coming quarters.

Aster DM Healthcare Limited , a leading integrated healthcare service provider in India, has announced its financial results for the second quarter of fiscal year 2026, demonstrating robust growth and operational improvements across its network.

Financial Highlights

The company reported a 10% year-on-year increase in revenue to INR 1,197.00 crores for Q2 FY26, despite lower incidence of seasonal illness compared to the previous year. Adjusting for this seasonal effect, the underlying revenue growth stood at 13%, reflecting the strength of Aster's core business operations.

Operating EBITDA grew by 13% year-on-year to INR 263.00 crores, with margins expanding to 22.00% from 21.40% in the same quarter last year. This improvement in profitability was driven by stronger cost efficiency and operating leverage across the network.

Operational Performance

• Average Revenue Per Patient (ARPP) for inpatients rose 10% year-on-year to INR 118,552, driven by improved specialty mix.
• The contribution from Complex, Oncology, Neuro, Gastro, and Ortho (CONGO) procedures increased by 240 basis points to 51% of total revenue.
• Total patient volume grew by 15% quarter-on-quarter, with inpatient volume up 12% and outpatient volume increasing by 15%.
• Occupancy rates improved to 64% in Q2 FY26 from 59% in Q1 FY26.

Cluster-wise Performance

Kerala Cluster

• Delivered its highest-ever quarterly revenue of INR 620 crore, with 12% quarter-on-quarter growth.
• Inpatient volumes grew by 13% quarter-on-quarter.
• Medical Value Travel (MVT) revenue surged by 67% quarter-on-quarter.
• Operating EBITDA grew by 19% year-on-year with margins expanding to 26.80%.

Karnataka & Maharashtra Cluster

• Revenue grew 10% year-on-year, supported by healthy growth in Aster Whitefield.
• Aster Whitefield revenue increased by 27% year-on-year.

Andhra & Telangana Cluster

• Revenue grew 8% year-on-year and 14% quarter-on-quarter.
• Operating EBITDA margin significantly improved to 13.20% from 7.90% in Q1 FY26.

Strategic Developments

• Aster MIMS Kasaragod, a 264-bed multispecialty hospital, commenced operations on October 2, 2025, strengthening the company's presence in northern Kerala.
• The company received no-objection letters from stock exchanges for its proposed merger with Quality Care India Limited, with the transaction expected to complete by Q1 FY27.

Dr. Azad Moopen, Founder Chairman and Managing Director of Aster DM Healthcare, commented on the results: "Aster DM Healthcare delivered a steady performance in Q2 FY26, with revenue increasing 10% year-on-year to ₹1,197 crore despite lower incidence of seasonal illness. The Kerala cluster demonstrated a strong turnaround in FY26, emerging from last year's softness with renewed momentum and discipline."

The company remains well-positioned to deliver sustainable, long-term growth across its key markets, supported by ongoing investments in digital health and efficiency-focused operating improvements.

About Aster DM Healthcare

Aster DM Healthcare Limited is one of the largest integrated healthcare service providers in India, with a strong presence across primary, secondary, tertiary, and quaternary healthcare through 19 hospitals, 10 clinics, and 283 labs and patient experience centers across 5 states in India.