Aster DM Healthcare Sees 45% Jump in Q4 Profit to Rs 153 Crore on Strong Volumes and Margin Expansion

Aster DM Healthcare Reports 45 Percent Year-on-Year Jump in Normalised Net Profit

Aster DM Healthcare posted a 45 percent year-on-year jump in normalised net profit to Rs 153 crore for the March quarter, thanks to strong patient volume growth, operating leverage across its hospitals network, and disciplined cost management.

The company's revenue for the quarter rose 18 percent to Rs 1,182 crore, supported by higher throughput in both inpatient and outpatient segments. Despite absorbing the impact of newly commissioned capacity at its Kasargod facility, Aster DM Healthcare was able to maintain a strong revenue growth.

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The improvement in operating EBITDA (excluding Kasargod) was driven by a rebound in patient volumes and a richer specialty mix. Total patient volumes increased 15 percent year on year, with inpatient volumes rising 7 percent and outpatient volumes up 15 percent during the quarter. Average revenue per inpatient grew 9 percent to Rs 1.25 lakh, aiding revenue growth amid a challenging macro environment.

Specialty care continued to outperform, with cardiac and oncology revenues growing 25 percent and 23 percent year on year, contributing 15 percent and 11 percent of overall revenue respectively. Medical value travel (MVT) revenues jumped 41 percent, led by strong growth in the Kerala cluster.

Aster's diagnostics business also showed sharp improvement. Labs revenue rose 18 percent year on year, while operating EBITDA surged 181 percent, driven by operating leverage and improved efficiency, with margins expanding to 14.7 percent from 6.2 percent a year earlier.

Core hospitals and clinics reported an operating EBITDA margin of 23.1 percent, rising to 24.3 percent excluding Kasargod, while matured hospitals delivered margins of 26.2 percent, up from 22.9 percent in the same quarter last year. Key assets such as Aster Medcity and Aster MIMS Calicut reported double-digit revenue growth alongside strong margin expansion.

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The results come as Aster moves closer to completing its merger with Quality Care India Ltd (QCIL). On a combined proforma basis, the two entities reported 18 percent revenue growth to Rs 2,361 crore and a 25 percent rise in operating EBITDA to Rs 517 crore, with margins of 21.9 percent. The merger has received 96.68 percent shareholder approval and is expected to close in Q1 FY27, subject to regulatory clearances.

Aster Chairman Dr. Azad Moopen announced that the combined platform would have over 10,623 beds across 28 cities, with a pipeline of around 4,445 additional beds, providing visibility to exceed 15,500 beds in the near term.