Bengaluru, July 31, 2025: Aster DM Healthcare, one of the leading integrated healthcare service providers in India, today announced its financial results for the quarter ended June 30, 2025, alongside major expansion moves that underscore the company’s commitment to strengthening its presence in South India.
Commenting on the performance for Q1 FY26, Dr. Azad Moopen, Founder and Chairman, Aster DM Healthcare, said: “Aster DM Healthcare has delivered a strong start to FY26, recording an 8% year-on-year growth in revenue, reaching INR 1,078 crores. Operating EBITDA expanded by 21%, while Profit After Tax (PAT) grew by 22%, reflecting a positive trajectory in performance. Operational metrics also demonstrated positive movement by 4% year-on-year reduction in Average Length of Stay (ALOS) to 3.1 days in Q1 FY26. Additionally, Average Revenue Per Occupied Bed (ARPOB) rose 14% year-on-year to INR 50,200 in Q1 FY26—underscoring enhanced efficiency and case mix improvements.
The announcement of the new hospital in Bengaluru and the additional stake hike in Aster Ramesh Hospitals marks a significant milestone in Aster’s India growth journey.
In line with our long-term strategy, we are making steady progress on the proposed merger with Quality Care India Ltd. (QCIL), a move that will establish the combined entity as one of the most comprehensive and integrated healthcare networks in the country. Both Aster and QCIL have delivered strong financial performance this quarter, with their respective performances complementing each other and reinforcing the significant potential for seamless integration.
With these initiatives, we remain well-positioned for sustained growth and are confident that our commitment to operational excellence, clinical innovation, and strategic expansions will allow us to redefine healthcare delivery in India”.
India Performance Highlights
Overall Business
- Overall Operating EBITDA margin of 20.0% in Q1 FY26 (17.7% in Q1 FY25)
- ALOS has improved to 3.1 days in Q1 FY26 from 3.2 days in Q1 FY25
- ARPOB rose 14% YoY to INR 50,200 in Q1 FY26 from INR 44,200 in Q1 FY25
New expansion plan announced in Bengaluru
- Announced a ₹580 crore investment to set up its fifth hospital in Bengaluru—a 500-bed, state-of-the-art facility at Yeshwanthpur location —expanding citywide capacity to 2,580 beds and reinforcing the position among the top three healthcare providers in the region.
Acquired Additional stake in Aster Ramesh Hospitals
- Acquired an additional 13% stake in Aster Ramesh Hospitals, increasing the total shareholding from 57.49% to 70.49%.
Core Business – Hospital and Clinics
- Core hospital business delivered Operating EBITDA margin of 22.6% in Q1 FY26 (20.8% in Q1 FY25)
- Matured hospital Op. EBITDA margins at 24.5% in Q1 FY26 (23.2% in Q1 FY25) and ROCE at 34.6%
Cluster Performance
- Kerala cluster revenue grew by 5% YoY as compared with 4% de-growth in Q4FY25 YoY, driven by 6% QoQ increase In-patient volumes.
- Karnataka & Maharashtra cluster revenue grew by 13% YoY and Op. EBITDA grew by 23% YoY in Q1 FY26
Other Business- Labs & Pharmacy
- Aster Labs revenue grew by 14.0% YoY in Q1 FY26: continuing to deliver positive EBITDA margin at 7.6% in Q1FY26
Expansion Plan
- Further plan to add in total 2600+ beds to reach ~7800 beds capacity
Recognition
- Aster’s leadership – Dr. Azad Moopen, Founder and Chairman was honoured with ‘Healthcare Leader of the Year’ award and Ms. Alisha Moopen, Deputy MD, was awarded ‘Women Entrepreneur of the Year’ award at FE Healthcare Awards 2025.
- Aster Medcity, Aster CMI, RV, and Whitefield were honoured at the FE Healthcare Summit & Awards for their exceptional commitment to patient care. Aster CMI now ranks first in Oncology, and Aster Medcity, Kochi, leads in Cardiology in the latest Times of India Critical Care Survey — reflecting the trust patients place in our care and the commitment of our teams.
- Aster DM Healthcare has been awarded Excellence in Mergers & Acquisitions by Business World.
- Aster Digital Health the ‘Most Impactful Digital Transformation in Healthcare’ award at the Elets Technomedia Healthcare Innovation Awards 2025
Update on Merger
Post receipt of the shareholders’ approval, CCI approval and stock exchange approval, the Company has completed the Preferential allotment of ~3.6% stake to Blackstone and TPG in the Company in lieu of initial acquisition of 5.0% stake in Quality Care by the Company. The shares issued under the preferential allotment are now listed on the stock exchanges (BSE and NSE).
Company has received the CCI approval for the merger and the scheme is currently pending for no-objection letter from the Stock Exchanges/ SEBI and once received, the Company will approach National Company Law Tribunal (NCLT) shortly thereafter.
The closing of the transaction is pending the fulfilment of regulatory and compliance requirements, including the receipt of no-objection letters from the stock exchanges and approval from the NCLT. The transaction is expected to be completed by Q4 FY26.
QCIL Q1 FY26 Performance
QCIL has posted a strong performance in Q1 FY26, reporting a 16% year-on-year increase in revenue to INR 1,079 crore. Operating EBITDA grew by 19% to INR 227 crore, supported by a healthy operating EBITDA margin of 21.1%, underscoring the company’s continued focus on operational excellence and sustainable growth.
Combined Proforma Performance for Q1 FY26
The combined entity (Aster and QCIL), with over 10,350 beds across 38 hospitals in 27 cities, delivered strong proforma results this quarter—revenue up 12% to INR 2,157 crore and operating EBITDA up 20% to INR 442 crore, with healthy EBITDA margin and ROCE above 20%, reflecting the platform’s strength and synergy potential.
