Aster DM Healthcare Reports Strong Q3 FY26 Performance with 13% Revenue Growth
Aster DM Healthcare reported strong Q3 FY26 results with 13% revenue growth to INR 1,186 crore and 11% operating EBITDA growth to INR 224 crore. Combined with QCIL, the platform achieved 15% revenue growth to INR 2,366 crore. Kerala cluster led performance with 20% growth, while oncology revenues grew 27% year-on-year. The merger with QCIL progresses toward Q1 FY27 completion.
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Aster DM Healthcare Limited delivered a strong financial performance in Q3 FY26, demonstrating consistent growth across its healthcare platform while progressing toward its strategic merger with Quality Care India Limited (QCIL).
Financial Performance Highlights
The company reported revenue from operations of INR 1,186 crore for Q3 FY26, representing a 13% year-on-year increase. This growth was supported by a 10% increase in total patient volumes and a 9% improvement in inpatient average revenue per patient (ARPP).
| Financial Metric | Q3 FY26 | Q3 FY25 | Growth (%) |
|---|---|---|---|
| Revenue from Operations | INR 1,186 crore | - | +13% |
| Operating EBITDA | INR 224 crore | - | +11% |
| Operating EBITDA Margin | 18.9% | - | - |
| Patient Volumes | - | - | +10% |
| Inpatient ARPP | - | - | +9% |
Operating EBITDA stood at INR 224 crore, up 11% year-on-year, with margins maintained at 18.9%. The performance reflects the company's continued focus on operational efficiency and disciplined cost management despite the addition of new capacity.
Combined Platform Performance
On a combined proforma basis with QCIL, the platform delivered impressive results with revenue growth of 15% year-on-year to INR 2,366 crore. Operating EBITDA grew faster than revenue, increasing 22% year-on-year to INR 503 crore, translating into an operating EBITDA margin of 21% and return on capital employed (ROCE) of 21%.
| Combined Platform Metrics | Q3 FY26 Performance |
|---|---|
| Combined Revenue | INR 2,366 crore (+15% YoY) |
| Combined Operating EBITDA | INR 503 crore (+22% YoY) |
| Operating EBITDA Margin | 21% |
| ROCE | 21% |
| CONGO Mix | 54.4% (+150 bps) |
Cluster-wise Performance
The Kerala cluster emerged as the standout performer, delivering revenues of INR 629 crore with 20% year-on-year growth. Excluding the newly commissioned Kasargod hospital, revenues increased 19% year-on-year to INR 619 crore. The cluster benefited from strong Medical Value Travel (MVT) revenue growth of 64% year-on-year, driven by higher international patient footfall from Maldives, Oman, and other Middle Eastern markets.
The Karnataka & Maharashtra (K&M) cluster experienced a relatively softer performance with 7% revenue growth to INR 383 crore, primarily due to temporary volume moderation from seasonality and clinician movements. However, inpatient ARPP showed strong growth of 17% year-on-year.
Specialty Mix and Clinical Excellence
The company continued its strategic shift toward complex, high-value care. Oncology revenues grew 27% year-on-year, with contribution increasing to 11% in Q3 FY26 from 10% in the previous year. The CONGO (Cardiology, Oncology, Neurology, Gastroenterology, Orthopedics) mix increased meaningfully during the quarter, supporting improved case mix and pricing.
Capacity Expansion and New Facilities
A key development during the quarter was the commissioning of the Kasargod hospital, which marked an important expansion milestone. Since commissioning, the hospital has demonstrated steady ramp-up with outpatient footfall averaging around 400 patients per day and over 120 doctors onboarded.
Over the past year, Aster added more than 320 beds, taking total capacity to 5,451 beds as of December 31, 2025. The company plans to add over 2,300 beds in the coming years through a balanced mix of brownfield expansions and greenfield projects.
Merger Progress with QCIL
The proposed merger with Quality Care India Limited continued to advance through regulatory processes. Following receipt of Competition Commission of India (CCI) approval and no-objection letters from NSE and BSE, the company filed the merger application with the National Company Law Tribunal (NCLT) on December 11, 2025.
The shareholders' meeting to consider and approve the merger scheme is expected to be convened between February 27, 2026, and March 13, 2026. Based on current process timelines, the merger is expected to be completed in Q1 FY27.
Nine-Month Performance
For the nine months ended December 31, 2025, India revenues increased 10% to INR 3,451 crore, with operating EBITDA growing 17% to INR 715 crore, achieving a margin of 20.7%. Normalized profit after tax (post non-controlling interest) grew 19% to INR 298 crore.
Outlook and Strategic Focus
The company maintains its focus on execution excellence, capital efficiency, and building clinically strong and scalable operations. With the merger process progressing and consistent operational performance across clusters, Aster DM Healthcare is positioned to deliver accessible, high-quality healthcare at scale while creating sustainable long-term value for stakeholders.
Historical Stock Returns for Aster DM Healthcare
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.60% | +3.60% | -8.57% | -4.20% | +19.20% | +262.40% |
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