Now Reading: Aster DM Healthcare Q1 EBITDA up 28%, broker maintains buy
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Aster DM Healthcare Q1 EBITDA up 28%, broker maintains buy
Aster DM Healthcare reported a 28% year-on-year rise in consolidated EBITDA for Q1FY27 to Rs 270 crore, beating estimates by 8%, thehindubusinessline.com reports citing a broker note. Revenue rose 22% to Rs…
The Story in Brief
Aster DM Healthcare reported a 28% year-on-year rise in consolidated EBITDA for Q1FY27 to Rs 270 crore, beating estimates by 8%, thehindubusinessline.com reports citing a broker note. Revenue rose 22% to Rs 1,310 crore, also 6% above estimates. Occupancy improved 300 basis points to 62%, while total patient volumes grew 16% to 1.03 million.
The newly-commercialised greenfield hospital in Kasargod achieved EBITDA breakeven in Q1, compared to a loss of Rs 8 crore in Q4FY26. Aster completed its merger with Quality Care India Ltd (QCIL) effective Q2FY27, making it the third-largest healthcare chain in India by revenue and bed capacity. The combined entity has net debt of Rs 1,160 crore. The broker maintains a 'Buy' rating with a revised target price of Rs 920.
The Indian Opinion
The broker note paints a rosy picture of Aster's merger synergies and margin expansion, but the real test for the combined entity will be delivering on that promised 24% plus EBITDA CAGR. Debt of Rs 1,160 crore is not trivial, and the stock's 30x forward EV/EBITDA multiple already prices in a lot of good news. Investors should watch occupancy trends across the merged network and whether the Kasargod breakeven can be replicated at other greenfield sites.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
