Aster DM Quality Care Ltd (ASTERDM) Q2 FY27 Results Analysis: EBIT Margin Expands 180 bps, Revenue Tops Q1 Run-Rate
Aster DM Quality Care Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,829.20 Cr (+136.32% YoY) and PAT growth of +165.75% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,829.20 Cr (+136.32% YoY) |
| PAT (Q2) | Rs. 322.38 Cr (+165.75% YoY) |
| EBITDA margin | 23.45% (+258 bps YoY) |
| EPS (Q2) | Rs. 3.19 (+49.77% YoY) |
Quarter Snapshot
First full post-merger quarter delivered revenue of Rs.2,829.20 Cr, 8.94% above the Q1 proforma run-rate, with segment EBIT margin up 180 bps YoY to 19.32% and pre-exceptional EBITDA margin of 23.45% tracking ahead of the 22% marker toward the 24-25% FY2028-29 target. Cost ratios improved across the board and cash conversion was healthy (CFO/PAT 1.80x), while the NCI profit share of 18.72% exceeded the guided 10-15% band and net debt of Rs.3,182.87 Cr reflects the enlarged perimeter. No prior guidance number was explicitly exceeded in the filing, so results are best characterized as on-track execution rather than a guidance beat.
Key Numbers, Quarter by Quarter
| Metric | FY24P | FY25P | FY26P |
|---|---|---|---|
| Merged occupancy % | 65 | 63 | 62 |
| Merged ARPOB (Rs. '000) | 39.1 | 43.5 | 49.5 |
| Merged beds | 9,752 | 10,250 | 10,623 |
Key Investment Insights
Key Positives
- Revenue of Rs.2,829.20 Cr was 8.94% above the Q1 FY27 combined-proforma run-rate of Rs.2,597 Cr, indicating growth beyond the merger perimeter step-up
- Segment EBIT margin expanded to 19.32% from 17.52% YoY (+180 bps) and 17.89% QoQ (+143 bps)
- Statutory pre-exceptional EBITDA margin of 23.45% vs 20.87% a year ago, above the 22% marker on the path to 24-25% by FY2028-29
- Employee cost ratio fell to 16.46% of revenue from 18.48% in Q1 and 17.70% YoY; all major cost lines improved as a share of revenue
- 'Others' segment (Labs & Pharmacies) swung from a -19.50% margin a year ago to +11.52%
- H1 CFO of Rs.631.26 Cr was 1.80x consolidated PAT; H1 free cash flow of Rs.193.93 Cr
- Merger-related exceptionals tapered from Rs.114.38 Cr in Q1 to Rs.18.95 Cr in Q2
Risk Factors
- Hospitals & Clinics segment EBIT margin of 19.64% was 29 bps below the year-ago 19.93%
- NCI share of quarterly profit at 18.72% is above the 10-15% band management had guided to on prior calls
- Finance costs of Rs.118.98 Cr (vs Rs.30.76 Cr YoY) and net debt of Rs.3,182.87 Cr ex-leases reflect a meaningfully more leveraged post-merger perimeter
- Residual merger and consulting costs inside operating expense lines remain unquantified, so reported cost-ratio improvements could be marginally flattered
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.