Q2 2026 Aster DM Healthcare Ltd Earnings Call Transcript
Key Points
- Aster DM Healthcare Ltd (BOM:540975) reported a consistent year-on-year revenue growth for 20 consecutive quarters, with a 20% revenue CAGR and a 38% CAGR in operating EBITDA over the last five years.
- The company achieved a robust 23% operating EBITDA margin and a ROCE exceeding 22% in Q2 FY26, reflecting strong financial performance.
- Kerala cluster delivered its highest-ever quarterly revenue of INR620 crores, with a 24% increase over INR499 crores in Q4 FY25, supported by a 13% sequential increase in inpatient volumes.
- The merger with Quality Care India Limited is progressing smoothly, with approvals from BSE, NSE, and the Competition Commission of India, positioning the combined entity as a leading healthcare provider in India.
- Aster DM Healthcare Ltd (BOM:540975) is expanding its capacity with the addition of over 2,300 beds through greenfield and brownfield projects, enhancing its presence in Tier 2 markets and improving access to quality care.
- The company faced softer seasonal infections, impacting revenue growth, although underlying business momentum remained strong.
- Material costs increased by 80 bps due to strong growth in oncology specialties, impacting overall profitability.
- The Andhra and Telangana cluster reported lower profitability compared to other regions, indicating room for improvement.
- The GST rate reduction on healthcare consumables led to a 1.1% impact on top-line revenue and a 35-40 bps impact on EBITDA margins.
- The company is facing challenges in maintaining high growth rates in mature units, requiring continuous focus on operational excellence and strategic initiatives.
Good afternoon, everyone. I welcome you to Aster DM Healthcare earnings conference call for the second quarter of FY26. Today with us, we have senior management of Aster DM Healthcare, namely Ms. Alisha Moopen, Deputy Managing Director; Mr. TJ Wilson, Non-Executive Director; Mr. Ramesh Kumar, Chief Operating Officer; Mr. Sunil Kumar, Chief Financial Officer; Mr. Hitesh Dhaddha, Chief Investor Relations and M&A Officer.
We are also delighted to have Mr. Varun Khanna, Group MD of Quality Care. Mr. Khanna is here solely on the capacity of a representative of Quality Care to give insights into the business and future plans of Quality Care. The entity, which is in process to get merged with Aster DM Healthcare. It is to be noted that the merger is subject to further regulatory approvals.
(Operator Instructions)
We will start the call with the opening remarks by the management, followed by interactive Q&A session. Certain forward-looking statements in this meeting involve risks and uncertainties. Aster DM assumes no responsibility for actions based on these statements and
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