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Aster DM revenues grew ~22% YoY to ₹ 1311 crore

ICICIdirect Research 06 Aug 2026 DISCLAIMER

News: Aster DM revenues grew ~22% YoY to ₹ 1311 crore aided by ~10% growth in Average Revenue Per Patient (IP) to ₹ 130352 and 16% growth in the total patient volumes. Occupancies improved by 350 bps YoY to 62% led by higher IP volume growth. EBITDA grew ~27% YoY to ₹ 264 crore, driven by operating leverage and disciplined cost management. Overall company margins stood at ~20% (up 93 bps YoY). Adjusted PAT was up 39% with margins of 9.5%. (Adjusting for one-time merger related costs of ₹114.4 crore)

View: More than standalone numbers of Aster DM, the focus will be on the integration of the with Quality Care hospitals, The deal values the combined entity at 21x FY26E EV of Rs 42200 crore assuming 20% EBITDA growth in two years (led by procurement synergies; case mix optimisation and brownfield bed capacity addition). On combined proforma numbers, consolidated revenues grew 20% YoY to ₹ 2597 crore driven by 13% YoY growth in patient volumes and 10% YoY growth in Average Revenue Per Patient to ₹1,36,802. The merged entity delivered a growth of 30% YoY growth in EBITDA to ₹ 576 crore with a margin expansion of 170 bps YoY to 22.2%. The margin improvement in this quarter is devoid of the synergistic benefits as envisaged from the merger and the management continues to expect combined margins of 23-25% in a timeframe of 3-4 years post-merger. Aster DM Quality Care have merged and created one of the top 3 Hospital Chains in India with 10,560+ beds. This merger will make Aster DM Quality Care (the combined entity) one of the top 3 hospitals in India in terms of combined Revenues (₹ 9273 crore) and combined number of beds (10620+). 

Impact: Positive

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