Aster DM Quality Q1 FY27 Results (NSE: ASTERDM)
Signal: Growth reaccelerated
The read
The operating trajectory remains strong, with consolidated revenue of ₹1310.68 Cr up 21.6% YoY and EBITDA of ₹301.35 Cr at a 23% margin, but the earnings trajectory has sharply diverged: PAT fell to ₹16.06 Cr from ₹94 Cr because exceptional items overwhelmed operating profit. The merger creates scale, but statutory reported earnings are currently less clean than the proforma operating narrative.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,310.68 Cr | +21.6% | N/A |
| EBIT | ₹232.06 Cr | N/A | |
| Net profit | ₹16.06 Cr | -82.9% | |
| EPS | ₹0.31 | -81.2% | |
| EBIT margin | 23% |
P&L walk
Consolidated revenue of ₹1310.68 Cr grew 21.6% YoY, and EBITDA of ₹301.35 Cr translated to a 23% margin, but PAT of ₹16.06 Cr was sharply below the prior-year ₹94 Cr as exceptional items materially depressed reported earnings.
Segments
The consolidated result materially exceeds standalone performance: consolidated PAT was ₹16.06 Cr versus a standalone loss of ₹14.30 Cr, indicating that subsidiaries and consolidation adjustments contributed approximately ₹30.36 Cr to reported group PAT.
Key positives
- Consolidated revenue was ₹1310.68 Cr, up 21.6% YoY, while the combined proforma entity reported revenue of INR 2,597 Cr, up 20% YoY.
- Combined proforma operating EBITDA rose 30% YoY to INR 576 Cr and margin expanded 170bps to 22.2%, indicating early operating benefits from the enlarged platform.
- Aster DM patient volume grew 16% YoY and ARPP IP increased 10% YoY to INR 1,30,352, showing both volume and realisation support.
- Quality Care delivered 19% revenue growth, 32% operating EBITDA growth and margin expansion from 21.1% to 23.2%.
- Kasargod Hospital achieved monthly EBITDA break-even within its ninth month of operations, reducing the drag from a new unit.
Key concerns
- Consolidated PAT fell 82.9% YoY to ₹16.06 Cr despite 21.6% revenue growth, making reported earnings materially weaker than operating EBITDA.
- Standalone PAT was a ₹14.30 Cr loss versus consolidated PAT of ₹16.06 Cr, highlighting a material subsidiary/consolidation dependence in group earnings.
- The filing's combined proforma figures are subject to finalisation, audit adjustments and harmonisation of accounting policies, limiting direct comparability with statutory consolidated results.
- Consolidated EPS fell 81.2% YoY to ₹0.31, so the strong operating growth has not yet translated into per-share earnings.
Earnings quality: includes other income and an exceptional item
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