Aster DM Quality Q1 FY27 Results (NSE: ASTERDM)
Signal: Growth reaccelerated
The read
Revenue growth accelerated to 21.6% YoY (vs 18.2% in Q4FY26) and EBITDA margin expanded to 23%, but the bottom line is heavily distorted by one-time merger costs of ~₹114 Cr (132% of PBT). The underlying operations are healthy, but the reported PAT of ₹16.06 Cr is not representative of run-rate earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,310.68 Cr | 21.6% | -71.8% |
| EBIT | ₹232.06 Cr | 30.9% | |
| Net profit | ₹16.06 Cr | -81.2% | |
| EPS | ₹0.31 | -81.4% | |
| EBIT margin | 23% |
P&L walk
Revenue grew 21.6% YoY to ₹1,310.68 Cr, driven by volume/occupancy; EBITDA margin expanded to 23% (from ~22.3% implied prior year) on operating leverage. EBIT grew 30.9% YoY to ₹232.06 Cr. However, finance cost of ₹145.59 Cr and exceptional items of ~₹114 Cr (merger costs) dragged PBT, resulting in PAT of only ₹16.06 Cr (-81.2% YoY). EPS fell in line with PAT.
Key positives
- Revenue grew 21.6% YoY to ₹1,310.68 Cr, accelerating from 18.2% in Q4FY26
- EBITDA margin expanded to 23% YoY (from ~22.3% implied prior year), indicating operating leverage
- EBITDA grew 25.3% YoY, outpacing revenue growth
Key concerns
- PAT collapsed 81.2% YoY to ₹16.06 Cr due to exceptional merger costs of ~₹114 Cr
- Standalone PAT negative at -₹14.30 Cr, dragged by similar exceptional items
- QoQ revenue decline of 71.8% appears anomalous and may reflect a restated comparative base
Earnings quality: includes other income and an exceptional item
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