Revenue and operating profit rose, but tax and other income cut net profit
Consolidated operating margin improved 0.93 percentage points YoY, but negative other income and a 62.50% tax rate sharply reduced reported earnings.
Filed 05 Aug 2026, 17:25 IST · after market close · Aster DM Quality Care Ltd (ASTERDM)
Key takeaways
- Consolidated revenue rose +21.60% YoY and operating profit increased +27.47%, as costs grew more slowly than revenue.
- Net profit fell -68.70% YoY because other income turned negative at Rs 85.74 cr and the tax rate rose to 62.50%.
- Operating margin recovered to 20.17%, but remained 3.65 percentage points below the 23.82% median for 40 healthcare peers.
Price around the results
Operating growth did not flow through to reported profit
Aster DM Quality Care's consolidated revenue increased +21.60% YoY and +10.85% QoQ, while expenses rose +20.20% and +10.17%, respectively. This faster revenue growth lifted operating profit by +27.47% YoY and +13.65% QoQ. Profit before tax nevertheless declined -42.77% YoY and -52.20% QoQ because below-operating items more than offset the operating improvement.
Negative other income and higher tax drove the earnings decline
Other income was negative at Rs 85.74 cr and represented -109.81% of pre-tax profit, making it a major drag on reported earnings. The tax rate rose 31.07 percentage points YoY and 56.52 percentage points QoQ to 62.50%, compared with 31.43% a year earlier and 5.98% in the previous quarter. Interest also increased +1.43% YoY and +4.07% QoQ, while depreciation rose +9.60% YoY.
Margin recovered from Q3 but remains below the peer median
Operating margin expanded 0.93 percentage points YoY and 0.50 percentage points QoQ because revenue grew faster than expenses. The margin has recovered for a second consecutive quarter, from 17.82% in Q3FY26 to 19.67% in Q4FY26 and 20.17% in Q1FY27, though it remains below Q2FY26's 20.87%. Aster's 20.17% margin was 3.65 percentage points below the 23.82% median of 40 healthcare peers that had reported.
Management outlined bed additions and wider medical travel reach
Management said the company plans to add 4,179 beds, taking total capacity to 15,077 beds. The company also said it commissioned 159 beds at the Aster Women & Child block at Aster Whitefield in April 2026. Management said Medical Value Travel grew 62% with the addition of new geographies.
The market reaction is pending after the post-close filing
The results were filed after market close, so there is no current market reaction to assess. Historically, the stock rose after 7 of its last 8 results, with a median absolute move of 3.35%, providing context for the eventual response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,311 cr | ₹1,182 cr | +10.85% | +21.60% |
| Other income | ₹-86 cr | ₹28 cr | — | — |
| Expenses | ₹1,046 cr | ₹950 cr | +10.17% | +20.20% |
| Operating profit | ₹264 cr | ₹233 cr | +13.65% | +27.47% |
| Operating margin (%) | 20.17% | 19.67% | — | — |
| Interest | ₹31 cr | ₹30 cr | +4.07% | +1.43% |
| Depreciation | ₹69 cr | ₹67 cr | +3.05% | +9.60% |
| Profit before tax | ₹78 cr | ₹163 cr | -52.20% | -42.77% |
| Tax | ₹49 cr | ₹10 cr | +399.49% | +13.81% |
| Net profit | ₹29 cr | ₹154 cr | -80.94% | -68.70% |
| EPS (₹) | ₹0.31 | ₹2.72 | -88.60% | -81.44% |
Operating margin of 20.17% compares with a Healthcare sector median of 23.82% across 40 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company plans to add 4,179 beds, increasing total bed capacity to 15,077 beds.
- The company commissioned 159 beds at the Aster Women & Child block at Aster Whitefield in April 2026.
New initiatives
- Medical Value Travel has grown with support from the addition of new geographies.
What to watch
- Whether operating margin holds above 20.17% after its recovery from 17.82% in Q3FY26.
- Whether the tax rate moves down from 62.50% after rising 56.52 percentage points QoQ.
- Progress toward the planned 15,077-bed capacity and the contribution from Medical Value Travel's reported 62% growth.