Operational Performance Highlights

  • Patient Volume: Served 2.2 million patients in Q2 FY27, representing 12% year-on-year growth
  • Bed Capacity: Operational bed base expanded by 4% year-on-year to 10,840 beds, primarily driven by additions at Kasaragod and Whitefield Block D
  • Occupancy: Occupied beds grew 8% year-on-year, with occupancy improving by 335 basis points to 68%
  • Clinical Complexity: Significant growth in complex care procedures - robotic surgeries up 39%, kidney transplants up 31%, joint replacements up 29%
  • Doctor Recruitment: Onboarded 100+ doctors in the first half of FY27
  • Technology Investment: Added significant medical equipment in Q2 including one LINAC, one digital PET-CT, three robots, two cath labs, and one MRI
  • Quality Recognition: CARE HITEC City received JCI accreditation; Aster MIMS Kasaragod received NABH accreditation; Company named Healthcare Brand of the Year at ET Healthcare Awards 2026

Financial Performance (Combined Basis)

Q2 FY27 Performance:

  • Revenue: ₹2,829 crore, up 19% year-on-year
  • Operating EBITDA: ₹678 crore, up 25% year-on-year
  • Operating EBITDA Margin: 24.0%, expanded by 111 basis points
  • Normalized PAT (after non-controlling interest): ₹281 crore, up 34% year-on-year
  • Normalized PAT Margin: 9.9% (vs 8.8% in Q2 FY26)
  • ROCE: 23%, improved by 152 basis points

H1 FY27 Performance:

  • Revenue: ₹5,429 crore, up 20% year-on-year
  • Operating EBITDA: ₹1,255 crore, up 27% year-on-year
  • Operating EBITDA Margin: 23.1% (vs 21.8% in H1 FY26)
  • Normalized PAT (after non-controlling interest): ₹457 crore, up 27% year-on-year
  • Normalized PAT Margin: 8.4% (vs 7.9% in H1 FY26)

Hospital Segment Performance (H1 FY27)

  • Mature Hospitals (64% of operational beds): Contributed 73% of hospital revenue and 83% of total operating EBITDA. Delivered 18% revenue growth led by 11% growth in total patient volume.
  • Focus Hospitals (15% of operational beds): Contributed 15% of total revenue. Achieved 7% increase in total patient volume and 13% year-on-year revenue growth.
  • Emerging Hospitals (10% of operational beds): Contributed 6% of revenue. Grew 53% in total patient volumes leading to 62% year-on-year revenue growth, largely led by Kasaragod and Nagercoil.
  • Underperforming Hospitals (11% of operational beds): Total patient volume grew 7%. Revenue grew 24% while operating EBITDA more than doubled.

Merger Synergies

  • Realized ₹16.6 crore in synergies in Q2 FY27
  • Annualized run-rate of approximately ₹65 crore achieved
  • Total synergy potential estimated at ₹200 crore across multiple levers including clinical programs, material costs, indirect costs, talent sharing, and renewable energy
  • Management expects to achieve full synergy run-rate within 3-4 quarters and complete realization within 6-7 quarters
  • Synergy levers include: business KPIs, material cost optimization, international medical tourism, quality and accreditation, F&B insourcing, IT integration, clinical collaboration, talent sharing, indirect cost reduction, and renewable energy

Expansion and Capital Allocation

  • Current Capacity: 10,840 operational beds
  • Expansion Pipeline: 4,230 additional beds planned, taking total capacity to over 15,000 beds
  • Expansion Mix: 47% brownfield, 53% greenfield
  • FY27 Project: 454-bed Aster Trivandrum Hospital progressing well on timelines
  • Capex Investment: Over ₹400 crore invested in H1 FY27, majority for ongoing projects and balance for medical equipment
  • Over ₹1,200 crore invested in last 18 months across project, growth and refresh capex
  • Over ₹600 crore invested in medical technology over last 18 months

Balance Sheet Position

  • Gross Debt: ₹3,959 crore as of 30 September 2026
  • Cash & Investments: ₹2,240 crore
  • Net Debt: ₹1,719 crore
  • Net Debt to EBITDA (ex-lease liabilities): 0.87 times
  • Net Debt to EBITDA (incl-lease liabilities): 1.72 times (both ratios on trailing twelve-month basis)

Management Commentary and Guidance

  • Integration Success: Successful first 100 days post-merger with no disruption to clinical services
  • Talent Retention: Retained top-tier talent with no attrition among top 20 people and better-than-expected retention in top 100
  • Margin Guidance: Targeting 24-25% operating EBITDA margin in 2-3 years post-merger
  • Growth Strategy: Focus on deepening presence in established markets through brownfield expansion while adding new greenfield facilities
  • Clinical Strategy: Strengthening Centers of Excellence and sharing expertise across network, including recent launches of ARISE Robotic Spine Institute at Aster CMI, CARE Cancer Institute in Raipur, and Foetal Medicine Centre at Aster Medcity

Conference Call Participants

Management Team:

  • Ms. Alisha Moopen - Executive Director
  • Mr. Varun Khanna - MD & Group CEO
  • Mr. Sunil Kumar M R - Group Chief Financial Officer

Moderator:

  • Mr. Puneet Maheshwari - Lead - Investor Relations

Analysts Participating:

  • Tausif Shaikh (BNP Paribas)
  • Damayanti Kerai (HSBC Securities and Capital Markets Limited)
  • Kunal Randeria (Axis Capital)
  • Shubh Kalra
  • Dhvani
  • Dr. Bino Pathiparampil