The company’s latest ICRA upgrade to [ICRA]A+ and the opening of a new 264-bed hospital in Kasaragod come as it accelerates its expansion plans and merger progress with Quality Care India.
Aster DM Healthcare shares rose over 1% in early trade on Thursday, extending their gains after the company reported Tuesday that it had opened its new 264-bed hospital in Kasaragod, Kerala. The stock has rallied 11% in the last five trading sessions.
The company has set up Aster MIMS Kasaragod, the eighth hospital in the state, at an investment of ₹190 crore and built over 2.1 lakh sq ft. The hospital houses 31 medical specialties and is designed to provide advanced and affordable care for residents across the region.
The development comes as the Union Health Ministry rolls out a major revision of rates for about 2,000 medical procedures under the Central Government Health Services (CGHS), effective Oct. 13.
The new system introduces tiered rates based on hospital accreditation and capacity, with higher payments for hospitals accredited by NABH and NABL, as well as those in super-specialty categories.
ICRA Upgrade Underscores Aster’s Financial Strength
SEBI-registered analyst Mayank Singh Chandel said Aster DM Healthcare’s fundamentals have gained traction following the latest ICRA ratings upgrade on Oct.3.
The credit agency raised Aster’s long-term rating to [ICRA]A+ from [ICRA]A and short-term rating to [ICRA]A1+ from [ICRA]A1, reflecting the company’s improving financial profile and operational scale.
As per ICRA, Aster reported an 11.9% increase in revenue in FY25, backed by robust patient volumes, improved case mix and cost discipline. The company’s operating profit margin increased to 18.7% in FY2025 and 19.2% in the first quarter of FY26, and the adjusted margin (excluding non-operating items) was even higher at 19.5% and 20%, respectively.
Chandel noted that Aster’s balance sheet has strengthened considerably since the sale of its GCC business, which generated ₹7,767.7 crore and resulted in a gain of ₹5,148.1 crore in FY2025.
The company used part of the proceeds to issue a special dividend of ₹5,894.3 crore, while still retaining ₹1,380.5 crore in cash and liquid investments as of March 31, 2025.
He pointed out that the upgrade reflects not only solid earnings but also Aster’s growing presence across South India, particularly in Kerala, which currently accounts for about 53% of the company’s revenues.
Merger And Expansion To Boost Scale
Chandel said Aster’s ongoing merger with Quality Care India Ltd (QCIL), the operator of CARE Hospitals, KIMSHEALTH, and Evercare, could be a defining milestone for the company. Once completed, the merger would position Aster DM Quality Care among India’s top three hospital chains.
He added that the combined entity is expected to benefit from greater geographical reach, shared backend systems, and strong cost synergies through joint procurement and vendor management.
Aster currently operates 19 hospitals, 10 clinics, 203 pharmacies, and 259 labs in five Indian states. It is also in the process of an aggressive expansion plan and will add 2,600 new beds by FY29, with a ₹2,500-crore investment, of which ₹400 crore has been spent so far.
Technical View
On the charts, Chandel noted that Aster has been in a strong uptrend, having hit a new all-time high in July before entering a sideways consolidation phase. He said the stock recently broke out of that range with high volumes, confirming a renewed wave of buying interest.
He added that the broader healthcare sector is also consolidating near its peak, and if the sector itself breaks out, it could lend further upside momentum to Aster DM Healthcare.
Trading Call
Chandel maintained a positive trading bias with a stop-loss at ₹640, saying the uptrend remains intact as long as the stock holds above that level.
He summed up the setup with a message: “In the market, patience pays. Aster waited quietly for its moment, and when the signal turned green, it didn’t crawl—it sprinted.”
What Is The Retail Mood?
On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.
Aster’s stock has risen 35.3% so far in 2025.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<