Aster DM Quality Care Reports 20% Q1 FY27 Revenue Growth After Landmark Merger

On a combined proforma basis, Aster DM Quality Care reported revenue of INR 2,597 crore for Q1 FY27, reflecting a 20% year-on-year increase. Operating EBITDA rose 30% year-on-year to INR 576 crore, while operating EBITDA excluding the Kasargod Hospital increased 31% year-on-year. The operating EBITDA margin improved to 22.2%, up 170 basis points year-on-year, while the operating EBITDA margin excluding Kasargod stood at 22.4%, an increase of 190 basis points year-on-year. The Kasargod Hospital achieved monthly EBITDA break-even within the ninth month of operations, and the company's Return on Capital Employed (ROCE) stood at 22.9%, up 246 basis points year-on-year. The merger became effective on July 1, 2026.

Commenting on the merger, Dr. Azad Moopen, Executive Chairman, said, "The coming together of Aster DM Quality Care marks a defining milestone in our nearly four-decade journey of building world-class healthcare institutions. We aspire to create one of India's leading integrated healthcare platforms, bringing together Aster, CARE, KIMS India, and Evercare into a unified network with over 10,800 beds across 28 cities, positioning Aster Quality Care among the top three hospital chains in India. Over the coming years, we expect to expand this network to more than 15,000 beds."

He added, "As we embark on this new chapter, our philosophy is simple: greater scale, greater clinical excellence, and greater impact. By combining exceptional medical talent with advanced technology, artificial intelligence, robotics, research, and innovation, we will redefine the future of healthcare delivery."

Dr. Moopen further said, "Above all, our commitment remains to provide world-class, compassionate, and affordable healthcare, while advancing medical education, research, and innovation. Our purpose is to touch and improve millions of lives across India and beyond – 'We'll Treat You Well'."

Commenting on the company's quarterly performance, Varun Khanna, Managing Director & Group CEO, said, "The recent merger and formation of Aster DM Quality Care marks a significant moment for the companies, our patients, our doctors and clinical staff, and for the industry overall. In this new chapter we are committed to keeping our core and value system unchanged, with continued focus on patient care, enabling doctors and hospital operations through technology, and best-in-class clinical outcomes."

He said Aster DM Quality Care, on a combined proforma basis, achieved revenue of INR 2,597 crore, representing 20% year-on-year growth, while operating EBITDA increased 30% to INR 576 crore, resulting in an EBITDA margin expansion of 170 basis points to 22.2%. The company served 2 million people across its outpatient and inpatient services during Q1 FY27, a 13% increase compared with the previous year.

"Our focus in the coming quarters is on disciplined execution - enhancing patient care, unlocking the full potential of our combined platform, and driving long-term value through operational excellence," Khanna added.

Aster DM Healthcare, on a standalone basis, reported revenue of INR 1,311 crore for Q1 FY27, up 22% year-on-year. Operating EBITDA excluding Kasargod increased 30% year-on-year to INR 279 crore, while operating EBITDA margins excluding Kasargod improved to 21.7% from 20.0% in Q1 FY26. Normalised profit after tax excluding Kasargod rose 46% year-on-year to INR 131 crore. Average Revenue Per Paying Inpatient (ARPP IP) increased 10% year-on-year to INR 1,30,352, while total patient volume grew 16% year-on-year. Matured hospitals recorded revenue growth of 19% year-on-year, and emerging hospitals registered revenue growth of 95% year-on-year during the quarter.

Quality Care reported revenue of INR 1,287 crore for Q1 FY27, reflecting 19% year-on-year growth. Operating EBITDA increased 32% year-on-year to INR 299 crore, while operating EBITDA margins improved to 23.2% from 21.1% in Q1 FY26. Average Revenue Per Paying Inpatient rose 9% year-on-year to INR 1,44,064, and total patient volume increased 10% year-on-year. Matured hospitals posted revenue growth of 18% year-on-year, while emerging units recorded revenue growth of 47% year-on-year.

Aster DM Quality Care Limited was formed through the merger of Aster DM Healthcare Limited and Quality Care India Limited. The merged entity brings together four healthcare brands—Aster DM Healthcare, CARE Hospitals, Evercare and KIMSHEALTH—creating a healthcare platform with a network of 39 hospitals across 28 cities and more than 10,890 beds. The company has a strong presence across South and Central India and provides primary, secondary, tertiary and quaternary healthcare services, supported by centres of excellence in oncology, cardiac sciences, neurosciences, gastro sciences, orthopedics, nephrology, organ transplantation, mother and child care, and critical care.

The company stated that certain statements contained in the announcement are forward-looking statements subject to risks and uncertainties, including government actions, political and economic developments, technological risks and other factors that could cause actual results to differ materially. It also noted that the Quality Care figures are indicative and subject to statutory audit adjustments, while the proforma financial numbers for the merged entity remain subject to finalisation and audit. The company added that actual financial impact may differ because of factors including the harmonisation of accounting policies and practices.