Aster DM Healthcare Reports Strong Q1 Results with 8% Revenue Growth and 21% EBITDA Expansion
Aster DM Healthcare reported robust quarterly results with 8% revenue growth to INR 1,078.00 crores and 21% EBITDA expansion to INR 215.00 crores. Normalized PAT increased 22% to INR 90.00 crores. The Kerala cluster showed recovery with 5% revenue growth. The company added over 300 beds, bringing total capacity to 5,197 beds, and announced a new 500-bed hospital in Bangalore. The proposed merger with Quality Care India Limited progressed with shareholder approvals and Competition Commission clearance. Management expressed confidence in sustaining growth momentum through focus on high-value specialties, operational efficiencies, expansion, and digital initiatives.

*this image is generated using AI for illustrative purposes only.
Aster DM Healthcare delivered robust quarterly results with revenue growing 8% year-on-year to INR 1,078.00 crores and operating EBITDA expanding 21% to INR 215.00 crores, achieving a 20% margin. Normalized PAT increased 22% to INR 90.00 crores.
The Kerala cluster showed recovery with 5% revenue growth after previous quarter's 4% decline, driven by 6% sequential increase in patient volumes and 12% jump in medical value travel revenues. ARPOB registered strong 14% year-on-year growth, supported by reduced average length of stay and higher oncology contributions.
Key Highlights
- Hospital and clinics segment EBITDA margin improved to 22.6% from 20.8% last year
- Mature hospitals (>7 years old) delivered 24.5% EBITDA margin and 35% ROCE
- Aster Labs showed turnaround with EBITDA margins improving from 3.4% to 7.6%
- Pharmacy business achieved EBITDA break-even after exiting certain loss-making segments
Expansion Plans
The company added over 300 beds, bringing total capacity to 5,197 beds, with plans to add another 2,600 beds. A new 500-bed hospital was announced in Yeswanthpur, Bangalore, which will take Aster's capacity in the city to over 2,580 beds.
Merger Update
The proposed merger with Quality Care India Limited (QCIL) progressed with shareholder approvals and Competition Commission clearance. QCIL reported 16% revenue growth to INR 1,079.00 crores with 19% EBITDA growth. The combined entity would operate over 10,350 beds across 38 hospitals in 27 cities.
Outlook
Management expressed confidence in sustaining growth momentum and enhancing profitability, driven by:
- Continued focus on high-value specialties like oncology
- Operational efficiencies and cost optimization
- Expansion in key markets like Bangalore
- Digital initiatives to improve patient experience
The company maintained strong liquidity with INR 1,455.00 crores in cash and cash equivalents while gross debt remained at INR 643.00 crores. ROCE improved significantly from 16.5% to 20.7%.
Aster DM Healthcare appears well-positioned for sustained growth as it expands capacity, improves operational metrics, and progresses towards the transformative merger with QCIL.
Historical Stock Returns for Aster DM Healthcare
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-2.38% | -2.51% | -6.60% | +25.52% | +45.88% | +337.25% |