Aster DM Healthcare Limited Earnings Summary — Q1 FY2027
Aster DM Reports Standalone Net Loss Amid Merger Costs; Quality Care Amalgamation Becomes Effective
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 10.9% sequentially in Q1 FY2027.
- Revenue of ₹1,311 Cr is 21.6% higher year-on-year.
- Revenue has compounded at 14.1% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹16 Cr is 81.2% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -94.4% annualised across the period.
- Operating margin stands at 19.5% in Q1 FY2027.
- Operating margin expanded by 82 bps year-on-year.
- Over the last two years operating margin has expanded by 348 bps.
- PBT margin is 6.0%.
- Expense growth of 20.4% remained below revenue growth of 21.6%.
- Operating profit of ₹256 Cr is 26.9% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 60/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,311 | 1,182 | 1,186 | 1,197 | 1,078 | 1,000 | 1,050 | 1,086 | 1,002 | 974 |
| Expenses | Stable | 1,055 | 958 | 983 | 961 | 876 | 818 | 864 | 869 | 841 | 817 |
| Operating Profit | Improving | 256 | 224 | 203 | 236 | 202 | 182 | 186 | 217 | 161 | 156 |
| Operating Margin | Stable | 19.5% | 18.9% | 17.1% | 19.7% | 18.7% | 18.2% | 17.7% | 20.0% | 16.1% | 16.1% |
| Other Income | Accelerating | -77 | 37 | -0 | 28 | 29 | 5 | 9 | 35 | 5,120 | -40 |
| Interest | Stable | 31 | 30 | 31 | 31 | 31 | 32 | 31 | 31 | 29 | 30 |
| Depreciation | Stable | 69 | 67 | 68 | 66 | 63 | 64 | 62 | 62 | 60 | 58 |
| Profit Before Tax | Volatile | 78 | 163 | 103 | 167 | 136 | 91 | 102 | 159 | 5,191 | 28 |
| Tax | Volatile | 49 | 10 | 44 | 46 | 43 | 5 | 37 | 53 | 39 | 31 |
| Net Profit | Volatile | 16 | 140 | 52 | 110 | 86 | 79 | 57 | 97 | 5,145 | -24 |
| Net Margin | Volatile | 1.2% | 11.8% | 4.4% | 9.2% | 7.9% | 7.9% | 5.4% | 8.9% | 513.6% | -2.5% |
Key Takeaways
- Standalone revenue grew 18.4% YoY to ₹725.73 Cr, reflecting steady growth in the India-focused healthcare business.
- Reported a net loss of ₹14.30 Cr for the quarter, primarily driven by ₹109.79 Cr in exceptional costs related to merger activities.
- The Scheme of Amalgamation with Quality Care India Limited (CARE Hospitals) became effective on July 1, 2026, officially renaming the entity to Aster DM Quality Care Limited.
- Employee benefit expenses saw a significant increase of 32.7% YoY, rising to ₹121.39 Cr from ₹91.48 Cr in the prior year.
- Professional fees to consultant doctors, a key operating cost, increased by 21.5% YoY to ₹165.48 Cr.
- The company made strategic investments during the quarter, including ₹45.09 Cr in its Sarjapur subsidiary and ₹25.00 Cr in associate Alfaone Medicals.
Management Guidance
Management is focused on the post-merger integration with Quality Care to establish a top-tier Indian hospital chain with over 10,000 beds, prioritizing premiumization and capital efficiency in the domestic market.
Sentiment Shift
Stable
While bottom-line numbers were hit by one-time merger expenses, the operational revenue growth and the completion of the structural pivot to 'New Aster' align with long-term strategic goals.
Outlook
The outlook is centered on realizing synergies from the Quality Care merger. The transition to a pure-play India healthcare entity is expected to drive higher margins and improved capital allocation once one-time integration costs subside.
From the Annual Report (Key Quotes)
“The Scheme became effective on 01 July 2026... the name of the Company has been changed from 'Aster DM Healthcare Limited' to 'Aster DM Quality Care Limited'.”
“During the quarter ended 30 June 2026, the Company has incurred expenses amounting to INR 109.79 crores towards professional fees and such other costs relating to the merger.”
Official Quarterly Documents
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This summary is AI-generated from Aster DM Healthcare Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.