Aster DM Healthcare Ltd

- There is no specific mention of any immediate new fundraising through debt or equity in the transcript. - Funding for new projects, such as the Yeswanthpur hospital in Bangalore, will be through a mix of internal and external funds. - The company has strong cash flows from operations, converting more than 80-85%, and expects internal accruals to cover most funding needs. - At the combined level of Aster and QCIL, net debt is near zero as of FY24, indicating a strong balance sheet. - No material increase in debt is expected; any debt on QCIL is significantly lower than their EBITDA. - Capex for expansions (like the 2,600 new beds) will be around INR 2,500 crores over 3-4 years, with INR 400-500 crores already spent. - Therefore, future funding will largely rely on internal resources with selective external funding as needed, not highlighting any major new equity or debt raise.

- Aster is adding approximately 2,600 beds over the next 3-4 years, requiring about INR 2,500 crores in project CAPEX, with INR 400-500 crores already spent as of June 30; the remaining INR 2,000 crores to be spent over the next years. - For the current FY26, cumulative CAPEX including projects is estimated between INR 800 to 900 crores. - New projects like the Yeswanthpur hospital in Bangalore are greenfield developments funded through a mix of internal accruals and external funds, with CAPEX spread over roughly 20 months. - Brownfield expansions are EBITDA accretive with minimal margin dilution and faster payback compared to greenfield expansions, which have a payback of about 9-10 years. - QCIL also has a pipeline of about 1,200 beds that are being added or expanded. - Overall, the group targets around 14,000 beds over 2-3 years combining Aster and QCIL expansions.

- Aster DM Healthcare expects 7-8% growth in both volumes and ARPOB (Average Revenue Per Occupied Bed) for FY26. - Recent quarters saw subdued volume growth due to leadership changes and seasonal effects, but an 8% volume growth was achieved in Q1 FY26, improving from 2% in Q4 FY25. - The company anticipates returning to double-digit growth in volumes and revenue within a couple of quarters. - Over a longer 3-4 year horizon, a 7-8% sustainable ARPOB growth is targeted, supported by specialty mix changes and oncology growth. - New hospital expansions and bed additions (2,600 beds by Aster and 1,200 beds by QCIL in pipeline) are expected to drive future revenue growth. - OPD (Outpatient Department) business is growing fast (12% volume growth) and expected to contribute favorably to ARPOB and overall revenue growth. - The company aims to continue ramping up new units rapidly, with some showing top-line growth of 25% quarter-over-quarter.

- Revenue growth is expected to return to double-digit figures within a couple of quarters, following a subdued performance in recent quarters due to leadership changes and specific decisions (Page 21). - Mid-term growth (3-4 years horizon) is projected at mid-teen levels, split roughly equally between volume growth (7-8%) and ARPOB (Average Revenue Per Occupied Bed) growth (7-8%) (Page 12). - ARPOB growth drivers include price increases, case mix improvements (notably oncology), and efficient ALOS (Average Length of Stay) management, supporting sustainable margin expansion (Pages 15-17). - Brownfield expansions are EBITDA and margin accretive with minimal payback period impact; greenfield payback period estimated around 9-10 years, with capex around INR 1-1.1 crore per bed (Pages 12-13). - Andhra & Telangana cluster EBITDA margins dip expected to normalize to 12-13% in coming quarters after initial clinical talent onboarding costs (Page 23). - Optimizations and synergies post-merger (e.g., insourcing, revenue cycle management) are expected to drive further profitability improvements (Page 17).

- For Aster DM Healthcare, the project capex for adding approximately 2,600 beds is about INR 2,500 crores. - Out of this, INR 400 to 500 crores have already been incurred as of 30th June. - The remaining INR 2,000 crores is expected to be spent over the next 3-4 years. - For QCIL, cumulative CAPEX outlay including upcoming projects is expected to be about INR 800 to 900 crores this year. - Yearly operational CAPEX is roughly 5% of the topline, consistent with prior years. - Brownfield expansions, such as adding 100 beds in Kerala clusters, have a positive impact on EBITDA and margins with immediate accretion. - Greenfield projects like the new Bangalore hospital have a CAPEX timeline of around 20 months to 1.5-2 years.