Target: ₹920CMP: ₹870.30Aster DM Healthcare’s Q1 consolidated EBITDA grew 28 per cent year on year to ₹270 crore, 8 per cent above our estimates; aided by strong performance across clusters. During the quarter, newly-commercialised greenfield unit in Kasargod reported EBITDA breakeven vs loss of ₹8 crorew in Q4FY26.The Quality Care (QCIL) ramp-up has been on track with 32 per cent EBITDA growth for Q1. Aster completed its merger with QCIL, effective Q2FY27, making it the third-largest healthcare chain by revenue and bed capacity in India.Aster’s consolidated revenue improved 22 per cent to ₹1,310 crore; 6 per cent above our estimates. Occupancy improved 300 bps to 62 per cent led by higher IP volume growth. Total patients’ volumes increased 16 per cent to 1.03 million. ALOS improved 4 per cent to 3 days. Net cash stood at ₹510 crore, as of Q1FY27. For combined entity, net debt stood at ₹1,160 crore.We remain positive on Aster given the rising visibility on post-merger synergies, occupancy improvement, margin expansion and upcoming bed additions. Our FY27E and FY28E EBITDA stands increased 3-5 per cent for the combined entity. We estimate combined entity post-Ind As EBITDA to grow at 24 per cent+ CAGR over FY26-28E to ₹3,100 crore. The combined entity is trading at 30x EV/EBITDA on FY28E (adjusted for minority stake and rental). We maintain our ‘Buy’ rating with revised TP of ₹920, valuing 32x EV/EBITDA for the combined entity on FY28E.Published on August 7, 2026