Merger between Aster DM, QCIL unlocks operational advantages: Azad Moopen

The merger between Aster DM Healthcare and Quality Care India unlocks clear operational and strategic advantages that will drive growth and better patient care across the combined network

With the merger of Aster DM Healthcare and Quality Care India (QCIL), Azad Moopen, founder and chairman of Aster DM Healthcare, shared his vision for the newly formed Aster DM Quality Care. In an email interview with Aneeka Chatterjee, he discussed the operational and strategic gains driving the deal, Blackstone’s involvement, immediate priorities, and how Aster aims to lead India’s super-specialty care segment. From hospital expansions to digital health investments, Moopen outlines the path towards making quality healthcare more accessible across India. Edited excerpts:

 

What immediate synergies do you expect from the Aster, Quality Care merger?

 

The merger between Aster DM Healthcare and Quality Care India unlocks clear operational and strategic advantages that will drive growth, operational efficiency, and better patient care across the combined network.

 

By integrating our extensive hospital portfolios — Aster DM, CARE Hospitals, KIMSHEALTH, and Evercare — the merged entity, Aster DM Quality Care, will benefit from scale across multiple functions.

 

One of the immediate synergies is in procurement and supply chain management. Pooling the purchasing power of 38 hospitals allows us to secure better terms from suppliers, cut costs, and manage inventory more effectively.

 

On the financial front, the merger strengthens our balance sheet and cash flow, allowing us to accelerate expansion. We plan to grow bed capacity to about 13,300 by 2026–27 (FY27), expanding further into Tier-II and Tier-III cities. The merger is expected to conclude by the fourth quarter of FY26, with the benefits expected to start accruing early in FY27.

 

How does Blackstone’s involvement position you for your long-term vision?

 

Blackstone’s financial backing gives us a clear edge. Their investment strengthens our ability to build best-in-class infrastructure and adopt new technologies, both of which directly improve patient care and experience.

 

This partnership will also help us scale innovation and broaden access to quality healthcare. We’re looking to deploy technology and explore new financing models to reinforce primary care and expand insurance access, making healthcare more inclusive.

 

What are your priorities in the next two years on the back of the merger?

 

Following the merger of Aster DM Healthcare and QCIL, our focus will be on unlocking value from our combined scale and capabilities. With 38 hospitals across 27 cities and over 10,150 beds, we aim to widen access and optimise operations.

 

By integrating resources and streamlining systems, we expect to reduce procurement and insurance costs and bring more efficiency to corporate services. These improvements should lift our earnings before interest, tax, depreciation, and amortisation margin by 200–300 basis points.

 

We plan to grow both organically and through targeted acquisitions, adding 3,500 beds by 2027. Of these, Aster will contribute about 2,000 beds, and QCIL the rest.

 

What are your investment plans in the upcoming quarters?

 

Aster has earmarked ₹1,400 crore for expansion, of which ₹350–400 crore has already been deployed. In Bengaluru, we’re adding 350 beds to Aster CMI Hospital and 159 beds to Aster Whitefield, and we plan to set up a 300-bed, state-of-the-art women and children’s hospital in Hyderabad.

 

In Kerala, over the next three years, we’re scaling up infrastructure through two greenfield projects: the 264-bed Aster Kasargod and the 454-bed Aster Capital in Thiruvananthapuram. We’re also adding 100 beds to our flagship Aster Medcity.