Aster DM Healthcare shares hit record high as ICRA upgrades ratings

Aster DM Healthcare shares hit a record high on Wednesday following an upgrade by ICRA of its long-term rating to [ICRA]A+ and short-term to [ICRA]A1+. ICRA attributed the improvement to Aster’s expanding operational scale, robust financial profile, and clear strategic growth plans. The company’s strong presence in South India, supported by experienced promoters, has driven steady improvements in both revenue and profitability.

The rating agency also highlighted that proceeds from the segregation of Aster’s GCC business have strengthened liquidity, facilitating dividend payouts and funding for future expansion. Aster’s ongoing merger with Quality Care India Ltd (QCIL) will create Aster DM Quality Care Ltd, which is expected to become one of the top three hospital chains in India. ICRA maintained a positive outlook, noting that further upgrades could follow if the merger is completed successfully and strong operational performance continues. The company plans to add 2,600 beds in the coming years through a combination of brownfield and greenfield projects, aiming to reinforce its presence in key regions.

For the financial year ending FY25, Aster DM Healthcare reported a revenue increase of 11.9%, supported by higher inpatient volumes and an improved average revenue per occupied bed (ARPOB). The operating EBITDA margin reached 19.5% in FY25, rising further to 20% in the first quarter of FY26 on the back of cost efficiencies and operational leverage.

Later, Aster DM Healthcare stock ended at Rs 699.50, up 5.76% on the BSE, after gaining 9% in the past four sessions and 63% over one year, outperforming the Sensex and remaining above all key moving averages. Market cap of the firm stood at Rs 36,242 crore.

The rating upgrade and merger have underpinned this upward trend. ICRA stated, “Further upgrades could follow upon successful merger completion and sustained operating performance.” The bolstered liquidity from the GCC business transaction and ongoing capacity expansion are seen as supporting factors for the company’s growth and outlook in the sector.