Aster DM Healthcare Limited has announced a significant change in its senior management. Dr. Harsha Rajaram, the CEO of Aster Digital Health, has resigned from his position, citing personal commitments.

Resignation Details

According to a regulatory filing by Aster DM Healthcare, Dr. Rajaram's resignation will be effective from the close of business hours on September 30, 2025. The company disclosed this information in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Impact on Digital Health Initiative

Dr. Rajaram played a crucial role in leading Aster's digital transformation efforts. In his resignation letter, he expressed gratitude for the opportunity to lead the digital initiatives and highlighted the progress made during his tenure:

"As I step away, I believe I leave behind a committed team and a strong digital foundation that can serve as a launchpad for Aster's future in phygital healthcare," Dr. Rajaram stated.

Leadership Acknowledgments

In his parting message, Dr. Rajaram specifically acknowledged the support and mentorship he received from key figures in the organization:

• Dr. Azad Moopen, for his trust and the opportunity to report directly to him
• Ms. Alisha Moopen, for her passionate engagement with digital initiatives in the GCC region and her mentorship

Transition Period

Dr. Rajaram has committed to ensuring a smooth transition, stating that he will "extend all support the organisation may require during this period." This commitment underscores the importance of maintaining continuity in Aster's digital health strategies.

Looking Ahead

While Aster DM Healthcare has not yet announced a successor for the CEO position at Aster Digital Health, the company is likely to build upon the digital foundation established under Dr. Rajaram's leadership. The healthcare sector continues to see rapid digital transformation, and Aster's future moves in this space will be closely watched by industry observers.

Aster DM Healthcare Limited, with its corporate office in Bengaluru, Karnataka, operates an extensive network of healthcare facilities across India and the GCC region. The company's focus on digital health initiatives remains a key part of its strategy to enhance healthcare delivery and patient experience.

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.