Aster DM Quality Care Limited has reported strong proforma performance highlights for Q1 FY27, following its merger. The company achieved robust revenue growth of 22% YoY, reaching INR 2,597 crore, driven by increased patient volumes and specialized treatments. Operating EBITDA saw a significant 30% YoY growth to INR 576 crore, with an improved EBITDA margin of 22.2%. Occupancy rates improved, and key metrics like ALOS and ROCE also showed positive trends, reflecting the successful integration and operational efficiencies of the merged entity.
Aster DM Quality Care Reports Robust Q1 FY27 Performance Post-Merger
Aster DM Quality Care Limited has announced its proforma performance highlights for the first quarter of Fiscal Year 2027 (Q1 FY27), marking a period of strong growth and improved operational efficiency following its merger. The company reported a significant 22% Year-on-Year (YoY) growth in Revenue, amounting to INR 2,597 crore. This growth was propelled by higher patient volumes, a strengthened specialty and payor mix, and the ramp-up of the Kasargod facility. Mature units, comprising approximately 77% of revenue, demonstrated an 19% YoY revenue growth, supported by increased patient volumes and an improved case mix in specialties like Oncology and Neurology.
Enhanced Profitability and Operational Efficiency
Operating EBITDA for Q1 FY27 exhibited a robust 29% YoY growth, reaching INR 576 crore. This substantial increase is attributed to a combination of strong revenue performance, effective operational leverage, and disciplined cost management. The EBITDA margin improved by 170 basis points to 22.2%, reflecting gains in efficiency, particularly in material consumption and better absorption of fixed costs. The company also noted a 350 bps improvement in occupancy, rising to 62%, driven by higher In-Patient (IP) volume growth. Average Length of Stay (ALOS) improved by 4% to 3.0 days, aided by an increase in robotic surgeries and streamlined hospital operations.
Key Financial and Operational Metrics
The merged entity’s proforma numbers for Q1 FY27 underscore its strengthened financial position. Revenue from operations stood at INR 2,597 crore, with a Gross Profit of INR 1,019 crore, a 23% YoY increase. Operating EBITDA reached INR 277 crore for the combined entity. Return on Capital Employed (ROCE) saw an improvement, reaching 22.9% for Q1 FY27. The company also reported operational growth, with 10,559 operational beds and a total patient volume of 2.01 million in Q1 FY27, a 13% increase YoY.
Strategic Growth Initiatives
The presentation highlighted the strategic rationale behind the merger, emphasizing scale, enhanced financial metrics, and synergies. Aster DM Quality Care aims to leverage its diversified platform and growth potential to create a larger healthcare ecosystem. Planned expansions across the Aster DM Quality Care network include the addition of 4,179 beds, bringing the total bed capacity to 15,077 beds by FY30 and beyond. This expansion includes both greenfield and brownfield projects, indicating a commitment to sustained growth and increased market accessibility for quality healthcare.
Source: BSE
