Aster DM Healthcare Limited – Investor Presentation Summary

Key Operational Highlights

  • Total bed capacity of merged entity: 10,623 beds as of March 2026
  • Occupancy rate: 62% for merged entity in FY26
  • ARPP IP: INR 127,074 for merged entity in FY26
  • Total physicians/doctors: 7,410+ across merged entity
  • Total employees: 29,405+ (excluding outsourced employees & doctors)
  • Patient volumes grew 12% YoY in Q4 FY26 to 1.93 million
  • Key drivers: New bed additions, improved case mix, operational efficiencies

Segment-wise Performance

  • Kerala Cluster (Q4 FY26): Revenue INR 604 Cr (21% YoY growth), Operating EBITDA INR 142 Cr (27% YoY growth), EBITDA margin 23.5%
  • Karnataka & Maharashtra Cluster (Q4 FY26): Revenue INR 394 Cr (11% YoY growth), Operating EBITDA INR 97 Cr (25% YoY growth), EBITDA margin 24.5%
  • Andhra & Telangana Cluster (Q4 FY26): Revenue INR 151 Cr (30% YoY growth), Operating EBITDA INR 28 Cr (113% YoY growth), EBITDA margin 18.3%
  • Significant changes driven by: Volume growth, MVT business expansion, scheme rationalization, and new facility contributions

Financial Highlights

Standalone Aster DM India Business (FY26):

  • Revenue: INR 4,643 Cr
  • Operating EBITDA: INR 947 Cr
  • Operating EBITDA Margin: 20.4%
  • RoCE: 21.3%
  • Net Debt: INR (626) Cr (net cash position)

Merged Entity Proforma (FY26):

  • Revenue: INR 9,273 Cr
  • Operating EBITDA: INR 2,013 Cr
  • Operating EBITDA Margin: 21.7%
  • RoCE: 21.1%
  • Net Debt: INR 763 Cr

Q4 FY26 Performance:

  • Combined proforma revenue growth: 18% YoY to INR 2,361 Cr
  • Combined proforma operating EBITDA growth: 25% YoY to INR 517 Cr
  • EBITDA margin: 21.9% (22.4% ex-Kasargod)
  • Drivers: Operational leverage, cost management, volume growth

Geographical Revenue Split

  • Domestic vs Export: Not explicitly specified in presentation
  • Regional breakdown shows presence across 9 states and 28 cities in India
  • Major clusters: Kerala, Karnataka, Maharashtra, Andhra & Telangana
  • International presence: Bangladesh operations with 620+ beds across 2 cities

Balance Sheet Snapshot

As of March 31, 2026 (Standalone Aster DM):

  • Shareholders' Equity: INR 518 Cr
  • Minority Interest: INR 258 Cr
  • Gross Debt: INR 701 Cr
  • Lease Liabilities: INR 1,518 Cr
  • Cash & Investments: INR 1,327 Cr
  • Net Debt/Equity ratio: 0.2x (excluding Affinity)
  • Net Debt/EBITDA ratio: 1.0x

Capex & Cash Flow Health

  • Capital Expenditure: Planned addition of 2,728 beds (964 brownfield, 1,764 greenfield)
  • Total future bed capacity target: 8,177 beds for Aster India business
  • Current projects: Aster Capital, Aster W&C Hyderabad, Aster Sarjapur in construction phase; Aster CMI, Aster Medcity (PMR block), MIMS Calicut, MIMS Kannur and Aster Yeshwanthpur in design phase
  • Investment rationale: Capacity expansion, market penetration, operational synergies

Strategic & R&D Initiatives

  • Digital Transformation: Aster Health App with 500K+ downloads, 24/7 Teleradiology business model
  • Medical Technology: Implementation of advanced robotic surgical systems including Ion bronchoscopy platform, da Vinci surgical system, Cuvis Joint robotic system
  • Synergy Potential: Identified 10-15% EBITDA upside potential from operational synergies
  • Strategic Rationale: Create one of India's top 3 hospital chains, diversified geographic presence, enhanced clinical capabilities

Industry Trends & Business Environment

  • Healthcare sector growth in non-metro markets
  • Increasing adoption of digital healthcare solutions
  • Growing demand for specialized tertiary/quaternary care
  • Impact on Company: Expansion into emerging cities, focus on phygital healthcare ecosystem

Management Commentary & Growth Outlook

  • Strategic Outlook: Dr. Azad Moopen continues as Executive Chairman; Varun Khanna as MD & Group CEO; Sunil Kumar as Group CFO of merged entity
  • Merger Benefits: Cash-neutral transaction, expected EPS accretive from first full year of operations
  • Governance: Equal board representation between Aster promoters and Blackstone, 50% independent directors
  • Expected Completion: Q1 FY27 subject to necessary approvals
  • Risks: Harmonization of accounting policies, finalization of merged accounts, regulatory approvals

ESG Updates

  • CSR activities mentioned regarding profits from sale of GCC business
  • NABH accreditation for all India hospitals, JCI accreditation for Dhaka hospital

Digital Transformation

  • Centralized teleradiology network serving external hospitals and international clients
  • Digital "hub-and-spoke" model for radiology interpretation
  • Aster Digital India received "Innovation – New Initiatives Award" at 24th Data Center Summit