Indian healthcare service provider Aster DM Healthcare has announced plans for an expansion in Bengaluru, Karnataka.
Aster is set to invest Rs5.8bn ($66.2m) for the establishment of a new 500-bed hospital in Yeswanthpur.
This development will increase the total bed capacity in the city to 2,580, positioning Aster DM Healthcare among the top three healthcare providers in the region.
The company has also acquired an additional 13% stake in Aster Ramesh Hospitals, raising its total ownership from 57.49% to 70.49%.
The company aims to enhance its overall capacity by adding more than 2,600 beds, targeting a total of approximately 7,800 beds in the future.
Following the approval from shareholders, the Competition Commission of India (CCI), and the stock exchange, Aster DM Healthcare has completed a preferential allotment of around 3.6% stake to Blackstone and TPG, in exchange for an initial 5% stake in Quality Care.
The merger has received CCI approval and is currently awaiting a no-objection letter from the stock exchanges and SEBI.
Once these approvals are secured, the company plans to approach the National Company Law Tribunal (NCLT) to finalise the transaction, which is anticipated to conclude by the fourth quarter of FY26.
Aster DM Healthcare founder and chairman Dr Azad Moopen said: “The announcement of the new hospital in Bengaluru and the additional stake hike in Aster Ramesh Hospitals marks a significant milestone in Aster’s India growth journey.
“In line with our long-term strategy, we are making steady progress on the proposed merger with Quality Care India Ltd. (QCIL), a move that will establish the combined entity as one of the most comprehensive and integrated healthcare networks in the country.”
In addition, the company has generated Rs10.78bn ($123.2m) in revenue for the quarter ending 30 June 2025 (Q1 FY26), an 8% increase compared with Q1 FY25.
Operating EBITDA also saw a rise of 21% year-on-year, reaching Rs2.15bn in Q1 FY26, up from Rs1.77bn in the previous year.
The operating EBITDA margins improved to 20.0% in Q1 FY26, compared to 17.7% in Q1 FY25, while the normalised profit after tax grew by 22% year-on-year to Rs900m from Rs740m in Q1 FY25.
Aster DM Healthcare currently operates 19 hospitals with a total of 5,197 beds, alongside ten clinics, 203 pharmacies, and 259 labs and patient experience centres across five states.
