KOCHI: Aster DM Healthcare, which is undergoing a transformation from a regional hospital chain into a national healthcare powerhouse, is planning to add 2,600 new beds over the next two to three years, taking its total capacity to nearly 14,000 beds.
Backed by a planned investment of Rs2,500 crore over three to four years, Aster has already deployed Rs500 crore as of June 30, 2025. The remaining Rs2,000 crore will be spent progressively to ramp up capacity across key locations.
The Aster expansion signals the group’s confidence in a post-GCC-separation India play, where Aster is doubling down on organic growth and cost optimisation, despite capex-heavy growth ambitions.
Q1 performance
In the quarter ended June 30, 2025, Aster DM reported a 22 per cent year-on-year jump in net profit at Rs90 crore, compared with Rs74 crore a year ago. Revenue rose to Rs1,078 crore, up from Rs1,002 crore, driven by improving ARPOB (Average Revenue Per Occupied Bed), better occupancy, and cost efficiencies.
Aster is eyeing around 7,800 beds in India by FY27, up from 5,197 beds currently, and is expected to commission more than 300 beds within FY25 alone. New hospitals in Bengaluru and Kannur are already operational, with more brownfield and greenfield sites in the pipeline.
Capex & strong balance sheet
The company maintains a lean balance sheet post its GCC business separation. Of the Rs2,500 crore capex earmarked, Rs323 crore was already spent in FY25 and about Rs500 crore as of June 30.
Management has clarified that much of the upcoming expansion is being funded through internal accruals and does not require aggressive leveraging.
After fully divesting its Gulf operations in April 2024 through a $907 million transaction with the Fajr Capital consortium, Aster now operates as a focused India-centric healthcare platform. The separation allows more transparent financials and dedicated regional strategies.
Analysts expect the merged entity (post-Aster–QCIL consolidation) to deliver sales and EBITDA CAGR of over 21 per cent through FY28, with EBITDA margins projected to stabilise above 21 percent. The company is also doubling down on robotic oncology, cancer grids, and digital health platforms, giving it an edge in high-margin segments.
