Aster DM Healthcare Sees Strong Revenue & EBITDA Growth In H1 FY25

Aster DM Healthcare, one of India’s leading integrated healthcare service providers, reported robust financial performance for the first half (H1) of FY25, with significant improvements in both revenue and profitability. The company’s revenues surged by 18 per cent year-on-year (YoY) to Rs 2,088 crores, driven by strong operational growth and expanded services, the company informed in a press statement on Thursday.

During the same period, operating EBITDA saw an impressive 44 per cent YoY increase, reaching Rs 410 crores, reflecting improved efficiencies and enhanced capacity utilisation.

In the second quarter (Q2) of FY25, Aster DM Healthcare’s revenues rose by 16 per cent to Rs 1,086 crores compared to Rs 934 crores in Q2 FY24. The company also reported a 48 per cent YoY increase in operating EBITDA for the quarter, amounting to Rs 233 crores. This growth in profitability was complemented by a notable improvement in operating margins, which rose to 21.4 per cent in Q2 FY25 from 16.8 per cent in the same quarter last year.

Commenting on the performance, Dr. Azad Moopen, Founder and Chairman of Aster DM Healthcare, expressed satisfaction with the company’s growth trajectory. He attributed the financial gains to the company’s strategic focus on operational excellence and capacity enhancement. "Our India business achieved 18 per cent YoY growth in H1 FY25, driven by increased occupancy and higher ARPOB (Average Revenue Per Occupied Bed). Operating EBITDA grew by 44 per cent YoY, and net profits rose by 88 per cent YoY to Rs 171 crores in H1 FY25," Dr. Moopen said.

Aster DM Healthcare’s core hospital business delivered an operating EBITDA margin of 22.4 per cent in H1 FY25, up from 19.1 per cent in the previous year, demonstrating the company’s ability to optimize costs while maintaining high service standards. Matured hospitals, operational for over six years, achieved operating EBITDA margins of 25 per cent, with a return on capital employed (ROCE) of 32 per cent, further solidifying Aster’s position in India’s healthcare market. The company also reported improvements in key operational metrics, including a reduction in the average length of stay (ALOS) to 3.2 days from 3.4 days in H1 FY24, and an improved payor mix, with insurance accounting for 30 per cent of its business, up 300 basis points.

Aster Whitefield Hospital in Bangalore was a standout performer, with occupancy levels reaching 67 per cent and ARPOB at approximately Rs 70,000 in H1 FY25. The diagnostics segment, Aster Labs, also showed strong performance with a 17 per cent YoY growth in revenue in Q2 FY25, and its EBITDA margin improved to 11 per cent, up from 3.4 per cent in Q1 FY25.