Reporting from DUBAI: Aster DM Healthcare may be preparing for another acquisition in India, with its latest quarterly filing showing an ‘exceptional professional fees’ tied to a proposed transaction that has not yet been announced.
Doesn’t this suggest Aster Healthcare Group is currently working on yet another acquisition in India?
“The company has not disclosed details, but the classification of these expenses as exceptional suggests that a new deal is under evaluation alongside the ongoing merger process already in motion,” a financial analyst told businessbenchmark.news in Dubai.
The hint of another acquisition comes within weeks of Aster DM Healthcare stepping up its control in Andhra Pradesh. The company increased its stake in Dr Ramesh Cardiac and Multispeciality Hospital from 57.49 per cent to 70.48 per cent during the quarter, investing aboutRs62.9 crore for the additional holding.
The move gives Aster firmer operational control in a key market and fits into its broader consolidation strategy.
This push for scale follows the separation of Aster’s GCC and India businesses, which has left the India operations with a cleaner structure and stronger liquidity. The India entity is now positioned to pursue selective acquisitions and greenfield expansion without heavy reliance on debt.
Strong financials
The latest financials reflect this strengthened position. Aster reported over Rs1,000 crore in bank balances and maintained a conservative borrowing profile, with repayments exceeding fresh long-term borrowings.
Consolidated borrowings stood at around Rs639 crore, moderate relative to its cash position. Finance costs for the six months were Rs62 crore, underscoring the company’s limited dependence on new leverage even as it builds capacity.
Expansion projects are underway across southern India. The company has incorporated Aster DM Super-Specialty Hospital (Sarjapur) and Aster DM Super-Specialty Hospital (Yeshwanthpur) as wholly owned subsidiaries and has signed a lease for the upcoming Yeshwanthpur multispecialty facility.
These units are now moving into the establishment phase, although the company has not yet disclosed commissioning timelines.
Q2 profit at Rs110cr
For the quarter ended September 30, 2025, Aster posted consolidated revenue of about Rs1,197 crore, driven mainly by its hospitals division. Profit after tax (PAT) or net profit from continuing operations stood at Rs110 crore for Q2 and Rs195.52 crore for the half-year, supported by volume growth and an improved case mix.
Meanwhile, the proposed merger with Quality Care India continues to advance through regulatory channels. Aster has received no-objection letters from both the BSE and NSE, which are valid for six months and subject to compliance with specified conditions. The deal remains in the approval stage.
With strong liquidity, active expansion, and a possible new acquisition under evaluation, Aster appears to be entering a fresh phase of consolidation and capacity building in its India business.
