Aster DM Quality Care (ASTERDM IN) – Q1FY27 Result Update – Strong quarter; Merger synergies yet to reflect – BUY
Published on 07 Aug 2026
ASTER DM Healthcare’s (ASTERDM) Q1 consolidated EBITDA grew 28% YoY to Rs2.7bn, 8% above our estimates; aided by strong performance across clusters. The QCIL ramp up has been on track with 32% YoY EBITDA growth for Q1. ASTERDM completed its merger with Quality Care (QCIL), effective from Q2FY27, 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 and FY28E EBITDA stands increased by 3-5% for combined entity. We estimate combined entity post Ind As EBITDA to grow at 24%+ CAGR over FY26-28E to Rs31bn. The combined entity is trading at 30x EV/EBITDA on FY28E (adjusted for minority stake and rental). We maintain our ‘BUY’ rating with revised TP of Rs920/share, valuing 32x EV/EBITDA for the combined entity on FY28E.
