ASTERDM
Small CapAster DM Healthcare Limited
Pharma
Aster DM Healthcare is an Indian healthcare provider. The company is in the process of merging with Quality Care (QCIL) to create a pan-India platform. It operates hospitals, clinics, and labs, focusing on high-acuity care and disciplined capacity expansion.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +18% YoY · PAT +79% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,182 Cr | +18.2% | -0.3% |
| EBITDA | ₹224 Cr | +23.1% | +10.9% |
| Operating margin | 19.0% | +100 bps | +200 bps |
| PAT | ₹154 Cr | +79.1% | +161.0% |
| PAT margin | 13.0% | +443 bps | +806 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Combined proforma FY26 revenue grew 14% YoY to INR 9,273 Cr, with Operating EBITDA up 21% to INR 2,013 Cr, driven by strong patient volumes and improved case mix. Aster India's Q4 FY26 revenue rose 18% YoY to INR 1,182 Cr, with Operating EBITDA up 26% to INR 244 Cr.
The proposed merger with Quality Care is progressing well, awaiting NCLT approval, and management highlights significant proforma operating leverage and capital efficiency. Aster India's standalone performance shows robust growth in volumes, ARPP IP, and profitability, despite some macro headwinds and temporary issues like the nurses' strike.
Higher-Acuity Care Shift
Continued shift towards higher-acuity care, particularly in DBS and robotic procedures, which saw a very meaningful increase during the quarter.
Medical Value Travel (MVT)
MVT segment maintained strong momentum, growing 41% year-on-year on the back of increased international patient footfall.
Ancillary Businesses Scaling
Labs continued to scale steadily, with revenues increasing 18% year-on-year and operating EBITDA growing 181%.
Strategic Capacity Expansion
Pipeline includes 4,445 additional beds, taking total capacity beyond 15,000 beds through greenfield and brownfield expansions.
Combined Bed Capacity Added (FY26)
Over the past year, we have added 373 beds, taking the combined capacity to 10,620+ beds across 28 cities.
Aster India Bed Capacity Added (FY26)
Over the past year, we added 290 beds, taking Aster’s total capacity to 5,449 beds as of March 31, 2026.
Aster Whitefield Block D
Launched 159 beds at Block D in Aster Whitefield in April 2026—a dedicated women and childcare facility.
Ramesh Ongole Expansion
Operationalized 75 beds at Ramesh Ongole in April 2026, further augmenting our presence in the region.
Strong Patient Volumes
Combined proforma performance supported by very strong patient volumes, improving case mix.
Operating Leverage
Operating EBITDA has outpaced the revenue growth, increasing by 25% to INR 517 crores, translating into margins of 21.9%.
Favorable Payor Mix
Combined platform's payor mix of cash and insurance at 83%.
Clinical Talent Acquisition
Onboarded 100+ doctors/clinical teams in FY26, aiding performance in volumes and specialized procedures.
Macro Headwinds
Despite macro headwinds, we delivered strong double-digit growth across our core hospitals, clinics, and labs businesses.
Middle East MVT Softness
Stronger inflows from Maldives helping offset macro-related softness from the middle east.
Nurses' Strike Impact
Kerala cluster reported revenues of INR 604 crores, reflecting a healthy 21% year-on-year growth, despite the nurse strike during the quarter, the impact of which was limited.
Competition Intensity
Competition intensity is very high, especially in the north of Bangalore, leading to attrition of one or two teams.
Regulatory Approval for Merger
The merger is subject to further regulatory approvals, with the matter currently before the NCLT for final approval.
Low-Yield Scheme De-empanelment
De-empanelment of low-yielding government schemes at Aster Aadhar impacted IP volumes in K&M cluster.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The management consistently presents both quarterly and full-year results with year-on-year comparisons, indicating that long-term growth trends and seasonal variations are key to understanding performance.
Combined Proforma Revenue Growth (FY26)
Combined platform delivered revenue of INR 9,273 crores, growing 14% year-on-year.
Combined Proforma Operating EBITDA Growth (FY26)
Operating EBITDA growing at 21% to INR 2,013 crores.
Aster India Revenue Growth (Q4 FY26)
Revenue from operations stood at INR 1,182 crores, reflecting an 18% year-on-year increase.
Aster India Operating EBITDA Growth (Q4 FY26)
Operating EBITDA for the quarter stood at INR 244 crores, growing 26% year-on-year.
Merger Completion Timeline
Based on current timelines, we expect the process to be completed within this quarter (May-July 2026).
Focus on Execution & Efficiency
Our focus remains firmly on execution excellence, capital efficiency, and attracting high-quality medical talent.
CONGO Mix Improvement Target
We think we can definitely take it up to 60% and then 65% as well.
Synergy Realization Post-Merger
Synergies are going to start after the merged entity, that's something which we're already working on, and I think we will hit the ground from day one.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| NCLT Merger Approval | Matter is currently before the NCLT for final approval; next hearing expected in May. | Receipt of the NCLT order and effective completion of the merger process. |
| CONGO Mix Contribution | Blended level now, 55% CONGO contribution. | Progress towards the target of 60-65% CONGO contribution to revenue. |
| New Bed Operationalization | 159 beds at Aster Whitefield Block D and 75 beds at Ramesh Ongole operationalized in April 2026. | Ramp-up and profitability contribution from newly operationalized beds. |
| Synergy Realization | QCIL has realized INR 85 crores in pre-merger synergies. | Explicit reporting of synergies realized from the Aster-QCIL merger post-completion. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
55NeutralSMA20 +18.4% / mo · near 52W high
Technical chart
ASTERDMweekly · 1Y+38.7%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 70.
- SMA20 rising (~15.6% over last month) — short-term momentum positive.
- RSI(14) at 70 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- Within 3% of 52-week high — testing resistance.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Growth contributes 11/25 to the score.
- Cash flow contributes 4/10 to the score.
Main drags
- Promoter pledge is 40.7%.
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -151.9%.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 46th percentile of the scored universe and 35th percentile within Pharma. Main check: promoter alignment is weak at 35/100.
Healthy Trust Lite: FCF yield is positive at 0.9%. Key concern: Promoters have pledged 40.7% of holding.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Pharma: 35th pctile, median 70 · Small: 51st pctile, median 65
162 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸FCF yield is positive at 0.9%.
- ▸7 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸OPM spread across recent quarters is 4%.
Trust risks
- ▸Promoters have pledged 40.7% of holding.
- ▸Revenue CAGR is 16% but EPS CAGR is -1%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 97.30
- P/B
- 8.67
- EV/EBITDA
- 37.18
- Market Cap
- 39717.00Cr
Profitability
- ROE
- 10.70%
- ROCE
- 11.40%
- ROA
- 5.26%
- Dividend Y
- 0.65%
Growth (CAGR)
- Revenue 5Y
- -12.00%
- EPS 5Y
- 23.00%
- Revenue 3Y
- 16.00%
- EPS 3Y
- -1.00%
Balance Sheet
- Debt/Equity
- 0.49
- Interest Coverage
- 7.02×
- Altman Z
- 7.83
- Book Value
- 88.30
Cash Flow
- FCF Yield
- 0.93%
- FCF Positive Y
- 7/5
- OCF
- 656.00 Cr
- EPS TTM
- 7.49
Shareholding
- Promoter Hold
- 40.39%
- Promoter Pledge
- 40.70%
- Momentum 52W
- 93%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.