ICRA cited the company’s expanding operational scale, robust financial profile, and strategic growth plans as key factors behind the upgrade.
Aster’s established footprint in South India, supported by the promoter’s extensive sector experience, has driven consistent improvement in both revenue and profitability.In FY25, the healthcare provider’s revenue rose 11.9%, aided by growth in inpatient volumes and improvement in ARPOB (average revenue per occupied bed). Operating EBITDA margins climbed to 19.5% in FY25 and 20% in Q1 FY26, reflecting cost efficiencies and operational leverage.
The rating agency also noted that proceeds from the segregation of Aster’s GCC business bolstered liquidity, enabling dividend payouts and funding for future expansion.
Also Read: This smallcap hospital stock hits all-time high, jumps over 10%; here’s whyThe ongoing merger with Quality Care India Ltd (QCIL) will create Aster DM Quality Care Ltd, expected to become one of India’s top three hospital chains.
ICRA maintained a positive outlook, adding that further upgrades could follow upon successful merger completion and sustained operating performance. Aster plans to add 2,600 beds over the next few years through brownfield and greenfield projects, strengthening its presence across key regions.
The stock has gained 9% in the past four sessions and 63% over the past year, outperforming the Sensex. It remains firmly above all key moving averages, signalling continued bullish momentum.
The stock was trading at ₹695.5, up 5.12% on the NSE as of 2:58 pm.
