Aster DM Healthcare Reports Strong Q2 FY26 Performance with 10% Revenue Growth
Aster DM Healthcare Limited announced robust Q2 FY26 results, with revenue increasing 10% year-on-year to INR 1,197 crores. Operating EBITDA grew 13% to INR 263 crores, with margins expanding to 22%. Normalized PAT rose 14% to INR 110 crores. The company saw improvements across key operational metrics, including a 10% increase in Average Revenue Per Patient for inpatients. The Kerala cluster delivered its highest-ever quarterly revenue of INR 620 crore. Aster MIMS Kasaragod, a new 264-bed hospital, commenced operations in October 2025. The company's proposed merger with Quality Care India Limited is progressing, with completion expected by Q1 FY27.
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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
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue | 1,197.00 | 1,086.00 | 10% ↑ |
| Operating EBITDA | 263.00 | 233.00 | 13% ↑ |
| Operating EBITDA Margin | 22.00% | 21.40% | 60 bps ↑ |
| Normalised PAT (Post-NCI) | 110.00 | 97.00 | 14% ↑ |
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.
Historical Stock Returns for Aster DM Healthcare
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.29% | +0.50% | -5.17% | +16.59% | +58.25% | +296.42% |
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