Aster DM Healthcare (ASTERDM IN) – Q4FY26 Result Update – Strong growth across clusters – BUY
Published on 04 May 2026
ASTER DM Healthcare’s (ASTERDM) Q4 consolidated EBITDA grew 26% YoY to Rs2.34bn, 12% above our estimates; aided by strong performance across clusters. The QCIL ramp up has been on track with 23% YoY EBIDTA growth for Q4 and 24% YoY for FY26. ASTERDM’s board has recently approved merger with Quality Care (QCIL), making it the third largest healthcare chain by revenue and bed capacity in India. We remain positive on ATSERDM given the rising visibility on post-merger synergies, occupancy improvement, margin expansion and upcoming bed additions. Our FY27E EBITDA stands increased by 3% for combined entity while FY28E broadly remain unchanged. We estimate combined entity post Ind As EBITDA to grow at 22%+ CAGR over FY26-28E to Rs29bn. The combined entity is trading at 26x EV/EBITDA on FY28E (adjusted for minority stake and rental). We maintain our ‘BUY’ rating with revised TP of Rs800/share, valuing 30x EV/EBITDA for the combined entity on FY28E.
