Aster DM Quality Care (ASTERDM IN) – Q2FY27 Result Update – Merger synergies on track – BUY
Published on 09 Nov 2026
ASTER DM Healthcare’s (ASTERDM) Q2 consolidated EBITDA grew 27% YoY to INR 6.6bn, 5% above our estimates; aided by strong performance across clusters. The QCIL ramp up has been on track with strong YoY EBITDA growth for H1. 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 ASTERDM given the rising visibility on post-merger synergies, occupancy improvement, margin expansion and upcoming bed additions. Our FY28E and FY29E EBITDA stands increased by 2-3% for combined entity. We estimate combined entity post IND AS EBITDA to grow at +24% CAGR over FY26-29E to +INR37bn. The combined entity is trading at 23x EV/EBITDA on Sept 2028E (adjusted for minority stake and rental). We maintain our ‘BUY’ rating with revised TP of Rs875/share, valuing 26x EV/EBITDA for the combined entity on Sept 2028E.
