Aster DM Healthcare Limited (ASTERDM)
Small CapPharma stocks · Small cap · NSE
Aster DM Healthcare is an integrated healthcare provider in India with 20 hospitals and 5,449 beds across 5 states. It also operates clinics, labs, and pharmacies. The company is merging with Quality Care India (QCIL) to form a combined entity with 10,623 beds across 9 states and 28 cities, aiming to be a top 3 hospital chain in India.
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 supportive, 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 30 Jun 2026
Bad · 25/100PAT -69% YoY · Rev +22% YoY · margin expansion · +11% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,311 Cr | +21.6% | +10.9% |
| EBITDA | ₹256 Cr | +26.7% | +14.3% |
| Operating margin | 20.0% | +100 bps | +100 bps |
| PAT | ₹29 Cr | -69.2% | -81.2% |
| PAT margin | 2.2% | -651 bps | -1082 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Aster DM Healthcare reported robust FY26 results with 12% YoY revenue growth and 17% YoY operating EBITDA growth. The proposed merger with Quality Care India (QCIL) is on track for Q1FY27 completion, creating a combined entity with proforma FY26 revenue of INR 9,273 Cr and operating EBITDA of INR 2,013 Cr, positioning it as a top 3 hospital chain in India.
The merger with QCIL is a transformative step, creating substantial scale and diversification across India. Strong standalone performance in FY26, coupled with identified synergies and growth potential from brownfield/greenfield expansion, supports the thesis. Successful execution of merger integration and synergy realization are critical for value creation.
Aster Revenue by Specialty (FY26)
Latest issuer-disclosed distribution across 10 reported categories.
Scale from Merger
Merged entity to be one of the top 3 hospital chains in India with 10,623 beds, enhancing market position.
Brownfield & Greenfield Expansion
Planned addition of 4,445 beds, bringing total capacity to 15,068 beds, with 56% brownfield expansion.
Niche Specialties Focus
Focusing on niche specialties to drive better Average Revenue Per Occupied Bed (ARPOB).
Technology & Digital Adoption
Leveraging technology and digital mediums for superior patient outcomes and broader reach.
Merged Entity Bed Expansion
Total addition of 4,445 beds, increasing combined capacity to 15,068 beds. 56% brownfield, 44% greenfield.
Aster India Bed Expansion
Further addition of 2,728 beds, bringing Aster's total capacity to 8,177 beds. FY27: 688 beds, FY28: 760 beds, FY29: 480 beds, FY30+: 800 beds.
Merger Synergies
Identified synergies from revenue, procurement, and corporate functions expected to yield 10-15% EBITDA upside.
Marquee Investor Backing
Blackstone, a global alternative asset manager, is a key investor in the merged entity, lending credibility.
Improved Case Mix
ARPOB growth driven by improving case mix and optimized payor mix, enhancing revenue per patient.
Nurses' Strike Impact
Kerala cluster experienced temporary minor impact on revenue growth in Q4FY26 due to a Nurses' Strike.
Macroeconomic Headwinds
MVT business revenue growth occurred despite prevailing macroeconomic headwinds.
Merger Integration & Audit
Proforma numbers are indicative and subject to audit adjustments; actual results may differ due to accounting harmonization.
Competitive Landscape
Becoming a top 3 hospital chain implies intense competition in the Indian healthcare market.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
Annual (YoY) comparison is crucial for assessing overall business growth and profitability trends, especially for a healthcare provider. Quarterly (QoQ) comparison is relevant for tracking sequential momentum, operational efficiency, and the ramp-up of new facilities or integration progress post-merger.
Hospital Revenue Growth (Aster)
Hospital Revenue FY26: INR 4,500 Cr, up 13% YoY.
MVT Business Revenue Growth (Kerala Cluster)
MVT business revenue increased 51% YoY in Q4FY26 despite macro economic headwinds.
Merger Approvals
Shareholders', CCI, and stock exchange approvals received; NCLT approval pending.
Operating EBITDA Margin (Aster FY26)
Operating EBITDA Margin: 20.4% (FY26).
Merger Completion Timeline
Expected completion of the merger in Q1FY27, with NCLT approval as the final step.
Integration Planning Progress
Making progress across multiple key areas of integration planning for the combined entity.
Prudent Capital Investment
Strategy involves prudent investment in brownfield and greenfield projects, alongside opportunistic inorganic growth.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Merger Finalization | NCLT approval pending. | Watch for NCLT approval and effective date of merger in Q1FY27. |
| Synergy Realization | 10-15% EBITDA upside potential identified. | Monitor progress on synergy capture and its impact on combined EBITDA margins. |
| Bed Capacity Ramp-up | 4,445 beds to be added to reach 15,068 total capacity. | Track commissioning timelines and utilization rates of new and expanded bed capacities. |
| Occupancy & ARPOB | 61% (Aster FY26), 62% (Merged Entity FY26 Proforma) occupancy. | Observe sustained improvement in occupancy and ARPOB across existing and new facilities. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
55NeutralSMA20 -3.5% / mo · MACD + · sector +2.2pp vs Nifty (3M)
Technical chart
ASTERDMdaily · 1Y · AUTO+19.9%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 50. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~3.6% over last month) — short-term momentum negative.
- RSI(14) at 50 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 12% off 52W high · 51% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 7.3% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +4.2%.
Valuation & score drivers
U-Score 32 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 32 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 8/15 to the score.
- Growth contributes 11/25 to the score.
Main drags
- Fair-value margin of safety is negative at -183.9%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 4/20; verify the latest quarterly trend.
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: +3 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 78th percentile of the scored universe and 69th percentile within Pharma. Main check: financial discipline is weak at 56/100.
High Trust Lite: Promoter pledge is zero. Key concern: Revenue CAGR is 16% but EPS CAGR is -1%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 69th pctile, median 70 · Small: 80th pctile, median 66
149 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy 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
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 13.3%.
- ▸FCF yield is positive at 0.5%.
- ▸7 years of positive FCF.
Trust risks
- ▸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.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 190.00
- P/B
- 8.90
- EV/EBITDA
- 59.52
- Market Cap
- 68492.00Cr
Profitability
- ROE
- 10.70%
- ROCE
- 11.40%
- ROA
- 4.47%
- Dividend Y
- 0.38%
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
- 7.46×
- Altman Z
- 7.88
- Book Value
- 88.30
Cash Flow
- FCF Yield
- 0.54%
- FCF Positive Y
- 7/5
- OCF
- 656.00 Cr
- EPS TTM
- 6.15
Shareholding
- Promoter Hold
- 53.72%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 72%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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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.