Detailed Narrative
Strong Combined Proforma Performance and Merger Progress
The combined proforma performance of Aster DM Healthcare and Quality Care demonstrated robust growth in Q4 FY26, with revenue increasing 18% YoY to INR 2,361 crores and Operating EBITDA growing 25% YoY to INR 517 crores, achieving a margin of 21.9%. For the full year FY26, combined revenue reached INR 9,273 crores (up 14% YoY) and Operating EBITDA was INR 2,013 crores (up 21% YoY), with margins at 21.7%. The merger with Quality Care received overwhelming shareholder and creditor approval and is now awaiting final NCLT approval, expected to be completed within the current quarter.
Aster Standalone Performance Driven by Volume and Mix
Aster's standalone operations (excluding Kasargod) reported a 17% YoY revenue growth to INR 1,166 crores in Q4 FY26 and a 12% YoY growth to INR 4,617 crores for FY26. Operating EBITDA (ex-Kasargod) grew 31% YoY to INR 253 crores in Q4 FY26, with margins at 21.7%. This performance was supported by a 15% increase in total patient volumes, a 9% improvement in ARPP IP, and a strategic shift towards higher-acuity care, evidenced by 25% YoY growth in cardiology revenues and 23% YoY growth in oncology revenues.
QCIL's Operational Excellence and Milestone EBITDA
Quality Care (QCIL) delivered an 18% YoY revenue growth to INR 1,178 crores in Q4 FY26, with EBITDA growing 23% YoY to INR 272 crores, achieving a 23.1% margin. For FY26, QCIL's EBITDA reached INR 1,066 crores, marking the first time it breached the INR 1,000 crores mark, representing a 24.1% YoY growth. This was driven by a 10% increase in IP volumes, 9% increase in OP footfalls, and a 20% growth in CONGO-T revenue, which now constitutes 58% of total revenue.
Cluster-wise Performance and Strategic Focus (Aster)
The Kerala cluster showed resilience with 21% YoY revenue growth and 35% YoY EBITDA growth (ex-Kasargod) to 25.6% margins, despite a nurse strike. The Karnataka & Maharashtra cluster grew revenue by 11% YoY, with ARPP IP increasing 21% and EBITDA growing 25% YoY to 24.5% margins, driven by higher-value procedures. The Andhra Pradesh & Telangana cluster demonstrated significant operating leverage, with revenue growing 30% YoY and Operating EBITDA more than doubling (113% YoY) to 18.3% margins.
Capacity Expansion and Future Capex Plans
Aster added 290 beds in FY26, taking its total capacity to 5,449 beds, with a pipeline to add ~2,500 more beds over the coming years at a cost of INR 2,700 crores. QCIL plans to add ~1,700 beds (1,500 brownfield, 200 greenfield) over the next 3-4 years with an estimated investment of INR 2,000 crores. The blended per-bed capex for QCIL is INR 1-1.1 crores, with greenfield at INR 1.5-1.6 crores and brownfield at INR 0.8-1.1 crores, reflecting a disciplined approach to capital allocation.
Clinical Talent Acquisition and Technology Integration
Both Aster and QCIL emphasized strategies for attracting and retaining clinical talent, focusing on vision, high-end procedures, and a strong clinical ecosystem. QCIL highlighted its use of AI in patient safety, operations, and clinical care, including AI-enabled CDSS, call center support, EMR pre-population, and an AI-enabled radiotherapy platform. This focus on technology aims to enhance metrics and improve efficiency.