The company reported a consolidated net profit of ₹16.1 crore for the quarter ended June 30, 2026, compared with ₹85.5 crore in the corresponding period last year, marking an 81.2% year-on-year decline.
The decline came even as the company’s core business remained strong. Revenue from operations rose 21.6% year-on-year to ₹1,311 crore from ₹1,078 crore a year earlier, supported by higher patient footfalls and improved performance across its hospital network.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 27.5% to ₹264.3 crore from ₹207.4 crore in the year-ago period. EBITDA margin improved to 20.2% from 19.2%, reflecting better operating efficiency.
The company said it incurred ₹114.38 crore of exceptional expenses during the quarter towards professional fees and other costs related to its merger with Quality Care India. These one-time costs weighed on the bottom line despite the improvement in operating performance.
Patient volumes support growth
Aster DM Healthcare said total patient volumes increased 16% year-on-year during the quarter, reflecting continued demand for healthcare services.
Revenue from mature hospitals, which are established facilities with relatively stable operations, grew 19% during the quarter. Emerging hospitals, which are newer facilities in the process of scaling up operations, reported a stronger 95% increase in revenue.
The company said its Kasargod Hospital achieved monthly EBITDA break-even within the ninth month of operations, indicating faster progress towards profitability for the newer facility.
Growth across hospitals was supported by rising patient demand, improving utilisation levels and the company’s focus on expanding its healthcare network.
Merger creates larger healthcare platform
Commenting on the quarterly performance, Managing Director and Group CEO Varun Khanna said the merger and formation of Aster DM Quality Care, following the combination of Aster DM Healthcare and Quality Care India, marked an important milestone for the company.
On a combined proforma basis, the merged entity reported revenue of ₹2,597 crore, up 20% year-on-year during the quarter. Operating EBITDA rose 30% to ₹576 crore, while EBITDA margin expanded by 170 basis points to 22.2%.
Khanna said the combined platform served around 2 million outpatient and inpatient visits during the quarter, representing a 13% increase from a year ago.
The company said the merger is aimed at creating a larger healthcare network by combining complementary hospital assets and capabilities. Going forward, it will focus on integrating operations, improving efficiencies and strengthening patient care across the expanded platform.
Focus on operational integration
Aster DM Healthcare said integrating the combined healthcare platform will be a key priority in the coming quarters. The company expects operational synergies, better resource utilisation and a wider hospital network to support future growth.
The healthcare sector continues to benefit from rising healthcare awareness, higher insurance penetration and increasing preference for organised hospital chains. At the same time, companies face challenges such as rising operating costs, investments required for new facilities and the time taken for newer hospitals to reach optimal utilisation.
For Aster DM Healthcare, the performance of emerging hospitals and the successful integration of the merged entity will remain key drivers of future growth.
Shares of Aster DM Quality Care Ltd. ended 0.2% lower at ₹833 on Wednesday, ahead of the company’s June-quarter earnings announcement.
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