Aster DM Quality Care doubled its bottom line in the second quarter. The healthcare operator reported a 138% jump in consolidated net profit to ₹262 crore for the quarter ended September 30, up from ₹110 crore a year earlier, powered by high-complexity surgical volumes and wider operating leverage. Revenue surged 136% to ₹2,829 crore compared to ₹1,197 crore in the corresponding period last year. Yet, equity investors banked quick gains. Shares of Aster DM Quality Care slipped 0.9% to end at ₹713.15 on the National Stock Exchange on Friday, pausing after a 17.4% advance so far this year.
Operating leverage drove profitability across the hospital network. Earnings before interest, tax, depreciation, and amortisation (EBITDA) leaped 165% to ₹664 crore from ₹250 crore. Operating margins widened 260 basis points to 23.5%, according to regulatory filings. Emerging hospital clusters turned profitable faster through higher bed utilisation, lower material costs, and an improved payor mix. Patient footfall expanded 12% year-on-year, led by oncology, neurosciences, gastroenterology, and orthopaedics.
| Metric | Q2 FY27 | Q2 FY26 | YoY Change |
|---|---|---|---|
| Revenue | ₹2,829 Cr | ₹1,197 Cr | +136.3% |
| EBITDA | ₹664 Cr | ₹250 Cr | +165.6% |
| EBITDA Margin | 23.5% | 20.9% | +260 bps |
| Net Profit | ₹262 Cr | ₹110 Cr | +138.2% |
| Total Bed Capacity | >15,000 | — | +4,230 beds added |
The quarter marked the group's first 100 days operating as an integrated network, following the combination that took effect on July 1, 2026. The transaction added 4,230 beds, pushing total capacity beyond 15,000 beds. But consolidation carried immediate administrative friction. The company recorded non-recurring merger expenses of ₹18.95 crore in the quarter for advisory and integration fees. For the six months ended September 30, transaction costs reached ₹133.33 crore, classified as exceptional items on the balance sheet.
"We have completed our first 100 days as a combined entity after beginning operations as an integrated platform on July 1," said Dr Azad Moopen, Executive Chairman of Aster DM Healthcare. Clinical accreditations followed the corporate integration. CARE Hospitals at HITEC City in Hyderabad secured Joint Commission International accreditation, while MIMS Kasargod received National Accreditation Board for Hospitals and Healthcare Providers certification within a year of launching operations.
The network is now directing cash flows toward capital expenditure. The Aster Trivandrum hospital project is moving toward final commissioning, alongside fresh investments in surgical infrastructure and specialized clinical talent. Despite Friday's mild profit-taking, the counter has climbed 4% over the past month.