Healthcare service provider Aster DM Healthcare is targetting pan-India as well as micro market leadership, with an eye on ‘top one or top two’ positions in cities where it operates, and said the merger with Blackstone-controlled Quality Care India (QCIL) is moving into its final stages.
The company has a clear timeline and synergy targets for the integration, with approvals from the Competition Commission of India (CCI) in place and a share swap arrangement completed, the final step is a nod from the National Company Law Tribunal (NCLT), which is expected by the fourth quarter of FY26.
The merger is set to create one of India's largest healthcare networks, positioning the combined entity as a formidable player. "The goal is micro market leadership," Alisha Moopen, Deputy Managing Director of Aster DM Healthcare said in a recent interview. "We do believe that over the course of the next five to 10 years, becoming a Pan-India leader makes sense for us".
The combined platform will boast a significant footprint of over 10,350 beds across 38 hospitals in 27 Indian cities. The scale of the new entity is reflected in the strong financials for the June quarter of the fiscal year 2026. The merged enterprise reported revenue of Rs 2,157 crore and an operating EBITDA of Rs 442 crore for the quarter, with a robust EBITDA margin and a Return on Capital Employed (ROCE) both above 20%.
Post-merger, Aster anticipates a 10-15% improvement in EBITDA over two years, fuelled by synergies in procurement and operational efficiencies. "Once we are able to kind of consolidate the purchases and stuff, we should be able to see a 10-15% improvement on our margins," Moopen said, highlighting benefits from consolidating the procurement of capital equipment, operational expenses, and technology investments. This is expected to lift the operating margin to a target of "22, 23%," up from the current 20%, she said.
The strategic rationale for the merger is rooted in its complementary nature. "One of the beauties of the merger that we've got is, at least from a geographic perspective, it was very complementary," Moopen said, highlighting there are no geographic overlaps between the two entities. This allows the new company to focus on leveraging scale to attract top clinical talent and consolidate its presence in South and Central India.
While awaiting final merger approvals, Aster is not standing still. The company recently announced a Rs 580 crore investment for a new 500-bed hospital in Yeshwanthpur, Bengaluru, its fifth in the city. This expansion is part of a broader plan to add approximately 4,000 beds across the combined network over the next three years, in order to cement its leadership in key markets.
Moopen emphasized that the merger is a significant accelerator for Aster's growth ambitions. "On our own, those 5000 beds of ours to taking it to 10,000 beds would have taken us like more than 20 years," she said. "If you are able to find complementary sort of assets where values are aligned, it may, you know, so that was the case with quality care."
Aster DM Healthcare and Blackstone-owned hospital platform Quality Care India (QCIL) had in November last year announced a merger, with the new entity to be named Aster DM Quality Care, valued at over Rs 42,000 crore. Blackstone will be the largest shareholder in the merged entity with about 30.7% stake, Aster promoters will have around 24% and TPG which was an earlier investor in QCIL will hold 10.22% and the rest will be held by public and other shareholders.
Prior to the deal with QCIL, Aster separated its Gulf business, and sold 65% stake to Fajr Capital-led consortium.
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