Aster DM Healthcare Limited is moving closer to becoming one of India’s largest hospital operators through its proposed merger with Quality Care India Limited (QCIL). Once completed, the combined platform—expected to be named Aster DM Quality Care Limited—is projected to rank among the country’s top three hospital chains by scale.
The merged entity will operate a nationwide footprint spanning 28 cities, with a total bed capacity exceeding 10,625 beds. Expansion plans are already in place, which could take overall capacity to nearly 14,710 beds over time, strengthening its reach across key healthcare markets.
The proforma combined entity delivered strong operating performance in the third quarter of FY26 (Q3FY26). Revenue rose 15% year-on-year to INR 2,366 crore, supported by a 9% YoY increase in patient volumes to 1.97 million. Operating EBITDA grew faster than revenue, climbing 22% YoY to INR 503 crore, while EBITDA margins improved to 21%, up from 20% in the corresponding quarter last year—reflecting better operating efficiency.
For the first nine months of FY26, revenue stood at INR 6,913 crore, marking a 13% YoY increase. During the same period, operating EBITDA advanced 20% YoY to INR 1,496 crore, with margins holding firm at 21.6%.
Separately, Aster DM Healthcare’s standalone business also reported steady growth in Q3FY26. Revenue increased 13% YoY to INR 1,186 crore, while EBITDA rose 11% YoY to INR 224 crore, indicating consistent performance even ahead of the merger.
The transaction is designed to be cash neutral for shareholders and is expected to be EPS accretive from the first full year after completion. Management expects the merger to unlock both revenue and cost efficiencies, with potential EBITDA upside of 10–15% in the near term as synergies are realized. The involvement of global private equity major Blackstone adds financial strength and strategic backing to the combined platform.
As of Q3FY26, the merged entity reported net debt of INR 953 crore and delivered a Return on Capital Employed (RoCE) of 20.7%. Aster DM Healthcare’s standalone balance sheet shows higher investments in Property, Plant, and Equipment, along with a notable rise in lease liabilities under INDAS 116, reflecting accounting treatment for long-term leases.
While the growth opportunity is substantial, the success of the merger will depend on smooth integration and timely realization of planned synergies. Regulatory filings have been submitted to the National Company Law Tribunal (NCLT), and shareholder approvals are in progress. The transaction is targeted for completion in Q1FY27.
Looking ahead, the enlarged hospital chain plans a mix of brownfield and greenfield expansions, which will require disciplined capital deployment. Investors and industry observers will closely track how effectively the merged entity leverages its expanded scale to enhance profitability and compete in India’s increasingly crowded healthcare market.
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