Aster DM Quality Care: PAT ₹322 Cr as QCIL merger jumps scale; margins recover YoY

Aster DM Quality Care (formerly Aster DM Healthcare) reported consolidated revenue of ₹2,829.20 Cr and total PAT of ₹322.38 Cr (₹262.02 Cr attributable to shareholders, EPS ₹3.19 non-annualised) for Q2 FY27, up 136.3% and 165.8% YoY respectively, with revenue up 115.9% and PAT up over 10x QoQ. Neither comparison is like-for-like: the NCLT sanctioned the amalgamation of Quality Care India Ltd (QCIL) into the company effective 1 July 2026, and the Group's own notes state this period's figures 'are not comparable' with prior periods because this is the first quarter to fully consolidate QCIL's hospital network (50 entities now included, spanning KIMS, Malabar Institute, Ganga Care, Ramkrishna Care, United Ciigma and others) versus a much smaller base earlier. Stripped to the parent alone, standalone revenue rose a more modest 76.6% YoY to ₹1,204.21 Cr and standalone PAT was almost flat YoY (₹106.15 Cr vs ₹104.61 Cr, +1.5%) — the headline jump is scale from the merger, not underlying operating momentum.

Margins did genuinely recover sequentially: consolidated net margin was 11.2% this quarter versus just 2.2% in Q1 FY27 and 9.9% a year ago. The Q1 trough was an artifact of a one-off ₹114.38 Cr exceptional charge (merger-related professional fees and costs) that quarter; this quarter's equivalent charge was a much smaller ₹18.95 Cr. Adjusting for exceptional items on both sides (tax-effected), YoY PAT growth is still ~177.2% — barely different from the 165.8% reported, confirming the consolidation-scope effect, not the one-off item, is what's driving the number. By our calculation, EBITDA margin on revenue from operations is already close to 25% this quarter, near the top of management's own 24-25% long-term target — but that target was explicitly framed as a 2-3 year (FY28-29) destination built on ₹150-200 Cr of merger synergies starting FY27, so a margin this close to target in the very first consolidated quarter more likely reflects the blended margin of the newly added KIMS/Quality Care hospitals than confirmed synergy capture; it is too early to score this against guidance.

The stock went into the print at ₹712.15, up 4.7% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.

We could not find a Q2-specific Street consensus for PAT or revenue; Trendlyne's FY27 full-year consensus (11 analysts) implies roughly 230% profit growth and 120% revenue growth for the year, broadly consistent with a merger-driven step-up, so this print is not obviously a beat or miss against that trajectory. No separate management press release or MD&A commentary was available in our records for this filing, so this read rests on the regulatory financial statements alone.