Q3 2026 Aster DM Healthcare Ltd Earnings Call Transcript
Key Points
- Aster DM Healthcare Ltd (BOM:540975) reported a 15% year-on-year revenue growth on a combined pro forma basis with Quality Care, reaching INR2,366 crore.
- The company achieved a 22% year-on-year increase in operating EBITDA, translating to a margin of 21%.
- Aster DM Healthcare Ltd (BOM:540975) added 560 beds over the past year, increasing its capacity to over 10,620 beds across 28 cities.
- The Kerala cluster showed strong performance with a 20% year-on-year revenue growth and operating EBITDA margins of 25.4%.
- Aster DM Healthcare Ltd (BOM:540975) plans to add over 4,000 additional beds, aiming for a total capacity of 14,710 beds through a mix of greenfield and brownfield expansions.
- The merger with Quality Care is still subject to shareholder and NCLT approvals, creating uncertainty about the timeline.
- The Karnataka and Maharashtra cluster experienced softer performance due to temporary volume moderation and clinician movements.
- The company faced a one-time exceptional expense related to the implementation of a new labor code, impacting PAT by INR27.9 crore.
- There was a dip in occupancy rates in the Karnataka cluster, dropping to 55% from 60% previously.
- The addition of new capacity, such as the Kasaragod Hospital, impacted reported margins, reflecting the challenges of integrating new facilities.
Good morning, everyone. I welcome you to the Aster DM Healthcare Earnings Conference Call for the third quarter of FY26. Today with us, we have the 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; and 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 in 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 the process to get merged with Aster DM Healthcare. It is to be noted that the merger is subject to further regulatory approvals. (Event Instructions)
We will start the call with the opening remarks by management, followed by an interactive Q&A session. Certain forward-looking statements in this meeting involve risks and uncertainties.
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