Aster DM Healthcare Q2 net profit rises 85%, EBITDA up 48%; stock jumps 11%

During the quarter, the company’s operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 48% YoY to ₹233 crore. The operating EBITDA margin expanded to 21.4% from 16.4% in the same period last year. Meanwhile, the net profit margin improved to 8.9% from 5.4% in the corresponding quarter last year.

During the first half of FY 25 (H1FY25), the company’s revenue from hospitals and clinics grew 20% YoY to ₹2,019 crore. However, revenue from the labs and pharmacies segment declined 7% YoY to ₹130 crore. Hospitals and clinics contribute 94% to the company’s revenue while labs and pharmacies account for 6%.

The hospital and clinics business saw its EBITDA rise by 41% YoY in H1FY25 to ₹453 crore. The net profit surged 64% YoY to ₹267 crore while the return on capital employed (RoCE) came in at 24%.

In H1FY25, the number of hospitals was unchanged at 19 while the total number of capacity beds increased slightly to 4,994. The total out patient volume stood higher by 14% YoY at 1.7 million in H1FY25.

The company reported that going ahead it is aiming to add an additional 1,800 beds to bring the total bed capacity up to 6,800 by FY27.

Azad Moopen, founder and chairman of Aster DM Healthcare, said, that the company’s growth was driven by increased occupancy and growth in average revenue per occupied bed (ARPOB). The company will also add more beds to meet the rise in demand while maintaining digital standards.

“As we expand, with plans to surpass ~6,800 beds by FY27, Aster DM Healthcare is well-positioned to meet the increasing demand for advanced healthcare in India,” he said.

Shares of the company have risen by nearly 11% since the beginning of the year. The stock has gained over 25% in the past year.