Aster DM healthcare ratings upgraded amid strong growth, strategic expansion

ICRA Limited has upgraded Aster DM Healthcare’s long-term and short-term credit ratings, citing increasing scale of operations, improved credit profile, and sustained growth prospects. The long-term fund-based term loan rating moved to [ICRA]A+ from [ICRA]A, remaining on Rating Watch with Positive Implications. Short-term fund-based working capital facilities and non-fund-based working capital facilities were upgraded to [ICRA]A1+ from [ICRA]A1, with the former removed from Rating Watch.

The upgrades follow Aster DM Healthcare’s robust financial performance, including 11.9% revenue growth in FY2025 and an improved operating profit margin of 18.7% in FY2025, up from 15.9% in FY2024. The company's total debt increased to INR2,017.8 crore, but significant net inflows from the sale of its GCC business improved Net Debt/OPBDITA to 0.8 times from 2.1 times.

Aster DM Healthcare plans to add approximately 2,600 beds by FY2029, with an estimated cumulative cash outflow of INR2,500 crore. This expansion, along with strong cash balances of INR1,380.5 crore and expected healthy cash flows, is anticipated to support continued liquidity despite ongoing capital expenditure.