Aster DM Healthcare Q3 FY26: Revenue up 13% YoY

Results snapshot for the December quarter

Aster DM Healthcare announced its financial results for the quarter ended December 31, 2025 (Q3 FY26), reporting steady year-on-year growth in revenue and profitability. The company said revenue rose 13% YoY to INR 1,186 crore for Q3 FY26. Excluding the newly commissioned Kasaragod facility, operating EBITDA grew 17% YoY to INR 237 crore. The operating EBITDA margin (ex-Kasaragod) improved to 20.2% from 19.3% in Q3 FY25, indicating better operating leverage.

Key Q3 FY26 financial metrics (standalone India business)

Alongside revenue and EBITDA growth, Aster reported improvement in bottom-line performance on a normalised basis. Normalised PAT (ex-Kasaragod) increased 22% YoY to INR 98 crore in Q3 FY26. Management highlighted that margin expansion was supported by cost management and operating leverage, with Kasaragod treated separately given its commissioning phase. These figures reflect performance for the quarter in which the company continued to report growth across patient volumes and case mix.

Proforma combined numbers with Quality Care India (QCIL)

Aster also disclosed proforma performance for the combined platform of Aster + Quality Care India Limited (QCIL) as the merger process advances. On this proforma basis, Q3 FY26 revenue grew 15% YoY to INR 2,366 crore. Operating EBITDA increased 22% YoY to INR 503 crore, with an operating EBITDA margin of 21%. Dr. Azad Moopen, Founder and Chairman, said the combined performance remained largely consistent through the first three quarters of FY26, supported by strong patient volumes and an improving case mix.

Merger progress and next procedural steps

The update on the merger included a key timeline linked to the NCLT process. The company stated that post the NCLT order, a shareholders’ meeting is to be convened between February 27 and March 13, 2026. Management indicated confidence on shareholder approval as part of the regulatory process. The company positioned the merger as a step towards building a scaled, integrated healthcare platform.

Volume and mix indicators highlighted for India operations

Aster’s India performance highlights pointed to growth supported by both volumes and pricing mix. ARPP IP rose 9% YoY to INR 1,22,294 in Q3 FY26, which the company attributed to an improved specialty mix. CONGO mix increased by 240 bps to 52% in Q3 FY26. Total patient volume grew 10% YoY, with inpatient (IP) volume up 5% YoY and outpatient (OP) volume up 11% YoY during the quarter.

Operational efficiency: ALOS and hospital throughput

The company also flagged improvements in operating metrics that typically influence throughput and efficiency in hospitals. ALOS improved 4% YoY to 3.1 days in Q3 FY26, aided by increased robotics surgeries and efficient hospital operations. Such changes can support capacity utilisation by enabling faster bed turnover, subject to case mix. Aster linked these operational improvements to better hospital processes during the quarter.

Specialty growth: MVT and oncology trends

Aster reported specialty-led growth in key clinical areas. MVT revenue increased 41% YoY in Q3 FY26, as per the company’s India performance highlights. Oncology revenue grew 27% YoY, and its contribution increased to 11% in Q3 FY26 from 10% in Q3 FY25. These mix shifts are relevant because higher-acuity specialties often have different margin profiles and resource requirements.

Cluster-wise performance: Kerala and Andhra-Telangana

Kerala remained an important growth driver in the quarter. Kerala total patient volume increased 15% YoY, delivering 20% YoY revenue growth, and Kerala MVT revenue grew 64% YoY during Q3 FY26. Kerala Cluster operating EBITDA grew 18% YoY, and 28% ex-Kasaragod, while margins were reported at 22.9% (25.4% ex-Kasaragod) in Q3 FY26 compared with 23.5% in Q3 FY25. In Andhra and Telangana, revenue grew 13% YoY, supported by a 9% YoY increase in total patient volume.

Diagnostics and labs: margin improvement signals

Aster’s labs business was cited as another contributor to performance. The company stated Aster Labs revenue grew 17% YoY in Q3 FY26, while operating EBITDA grew 31% YoY. Margins in the labs segment improved to 10.5% in Q3 FY26 from 9.4% in Q3 FY25. The combination of revenue growth and margin expansion suggests better operating leverage in the diagnostics business during the quarter.

Key numbers table

What the update means for investors tracking the stock

For equity investors, the release provides two lenses: reported quarterly performance and the proforma view of the combined platform with QCIL. The reported business showed revenue growth and margin expansion (ex-Kasaragod), with normalised PAT also growing year-on-year. On the merger, the company offered a specific next-step window for the shareholders’ meeting following the NCLT order. Investors typically watch whether integration timelines and approvals remain on schedule alongside quarterly operating trends in patient volumes and case mix.

Conclusion

Aster DM Healthcare’s Q3 FY26 update showed 13% YoY revenue growth to INR 1,186 crore and an operating EBITDA margin (ex-Kasaragod) of 20.2%, alongside a 22% rise in normalised PAT (ex-Kasaragod) to INR 98 crore. The proforma combined platform with QCIL reported revenue of INR 2,366 crore and operating EBITDA of INR 503 crore for the quarter. The next procedural milestone cited by the company is the shareholders’ meeting expected to be convened between February 27 and March 13, 2026, following the NCLT order.