Aster DM Healthcare Limited

The combined proforma entity of Aster DM Healthcare and Quality Care India Limited delivered a strong Q3 FY26, with revenue growing 15% year-on-year to INR 2,366 crore. This growth was underpinned by a 9% increase in total patient volumes and an 8% rise in Inpatient ARPP. The CONGO mix also improved by 150 basis points to 54.4%. Operating EBITDA for the combined platform surged 22% year-on-year to INR 503 crore, resulting in a healthy operating EBITDA margin of 21% and a Return on Capital Employed (ROCE) of 21%.

Aster's standalone operations reported a 13% year-on-year revenue increase to INR 1,186 crore, supported by 10% growth in total patient volumes and a 9% improvement in Inpatient ARPP. Operating EBITDA grew 11% year-on-year to INR 224 crore, with a margin of 18.9%. The Kerala cluster was a key performer, with revenues up 20% year-on-year to INR 629 crore and an operating EBITDA margin of 25.4% (excluding Kasargod). Oncology revenues demonstrated significant strength, growing 27% year-on-year and now contributing 11% to overall revenue.

Quality Care India Limited (QCIL) delivered a strong Q3 FY26, with revenue increasing 17.3% year-on-year to INR 1,181 crore. The company's post-Ind AS EBITDA grew by an impressive 32.0% year-on-year to INR 279 crore, leading to a substantial 265 basis points expansion in its post-Ind AS EBITDA margin, reaching 23.7%. This performance was attributed to an 8% increase in IP and OP volumes, an improved CONGO-T share of 57.6%, and a favorable payor mix with 80.1% from cash and insurance business.

Aster Labs achieved a significant turnaround, with its EBITDA margins improving from -7.6% in FY24 to +12.2% in YTD FY26, driven by a 35% year-on-year growth in external business. The wholesale pharmacy segment also moved into positive territory, reporting EBITDA margins of 2.2% in Q3 FY26 and achieving a positive ROCE for the first time. Overall, the company's Return on Capital Employed (ROCE) saw a notable improvement, increasing by over 260 basis points from 19.5% to 22.1%.

Aster DM Healthcare expanded its capacity by adding over 320 beds in the past year, bringing its total to 5,451 beds, including the new Kasargod hospital which is ramping up well and expected to break even next quarter. The company plans to add over 2,300 more beds in the coming years, targeting a total capacity of over 7,800 beds. The proposed merger with Quality Care India Limited is advancing, with the NCLT application filed on December 11, 2025, and shareholders' meetings scheduled for February-March 2026, with completion anticipated in Q1 FY27.

The K&M cluster experienced a relatively softer performance during the quarter, with revenue growing 7% year-on-year to INR 383 crore and operating EBITDA up 5% year-on-year. This was primarily due to temporary volume moderation from seasonality, scheme rationalization, and clinician movements, resulting in a 9% year-on-year decline in inpatient volumes. Management is actively implementing proactive hiring and retention initiatives to strengthen clinical depth and execution capabilities, expecting improved performance and accelerated growth in the coming quarters^⏳.

As of 9M FY26, Aster's total capital expenditure amounted to INR 406 crore, with approximately 50% allocated to expansion projects. The company maintains a robust liquidity position, holding cash and cash equivalents of INR 1,255 crore, while its gross debt remains moderate at INR 631 crore. This disciplined approach to capital allocation and strong financial health provide a solid foundation for future growth and strategic initiatives.