Aster DM Healthcare Ltd Q4 FY26 Results Analysis: PAT Surges 77%, EBITDA Margin Expands 314 bps

Aster DM Healthcare Ltd's Q4 FY26 numbers came in strong, with revenue of Rs. 1,182.38 Cr (+18.20% YoY) and PAT growth of +77.39% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Aster DM Healthcare delivered strong Q4 FY26 results with 18.2% revenue growth and 77.4% PAT growth, driven by the Hospitals & Clinics segment. EBITDA margin expanded 314 bps YoY to 19.70%, and the company generated robust free cash flow of Rs.187 Cr. While the company met its revenue guidance at the lower end, the EBITDA margin target of 23-24% was missed, and the QCIL merger remains a key catalyst pending final NCLT approval.

Key Investment Insights

Key Positives

• Revenue grew 18.2% YoY to Rs.1,182.38 Cr in Q4 FY26
• PAT (owners, cont. ops) grew 77.4% YoY to Rs.140.17 Cr in Q4
• EBITDA margin expanded 314 bps YoY to 19.70% in Q4
• Hospitals & Clinics segment EBIT grew 40.9% YoY, with margin expansion of 281 bps to 17.9%
• Operating cash flow was Rs.655.92 Cr for FY26, with CFO to PAT ratio of 1.69x
• Free cash flow was positive at Rs.186.84 Cr for FY26

Risk Factors

• Post-IndAS EBITDA margin of 18.7% for FY26 missed management's guidance of 23-24%
• Wholesale Pharmacies segment revenue declined 23.3% YoY in Q4 and posted a small operating loss
• Effective tax rate varied widely quarter-to-quarter, with Q4 showing a very low rate of 5.98%
• Subsidiaries contributed 44% of revenue but only 31% of PAT, indicating lower profitability in subsidiaries