Aster DM Healthcare Plans To Expand Bengaluru Hospital, Shares Up 2%

Aster CMI Hospital will expand by 300,000 sq. ft., increasing bed capacity to 850 and aims to add 1,700 beds across India by FY27.

Shares of Aster DM Healthcare traded 2% higher after the company announced on Monday morning to expand Aster CMI Hospital in Bengaluru. The shares were trading at 374.55 apiece on NSE at 11.05 am.

An expansion plan for the Aster CMI Hospital in Bengaluru has been revealed by integrated healthcare provider Aster DM Healthcare. The hospital will be able to accommodate 850 beds after the extension, adding 300,000 square feet to its existing infrastructure. With this expansion, the hospital will have 1,602 beds overall in the city, making it one of the biggest healthcare facilities in the region.

Upgrading the current facility will cost the company about ₹250 crore, and the enhanced infrastructure should be implemented by FY2027. Located in Hebbal, Bangalore, the 4.45 million sq. ft. Aster CMI Hospital is well known for its state-of-the-art facilities, offering a wide range of services from primary care to acute care Since its inception in 2016, it became one of India's leading specialist hospitals

The company plans to add over 1,700 beds by FY27, increasing its total number of beds in India to approximately 6,600 through organic growth. On the other hand, Aster is also looking into inorganic development opportunities to keep its place among the top three integrated healthcare providers in the country. In this development plan, brownfield and greenfield projects—like the proposed Aster Capital in Trivandrum and Aster MIMS Kasargod—are combined with the construction of additional beds at existing hospitals.

“We are running our existing clinic [Aster CMI] at full capacity, so we have decided to expand the program to meet the growing needs of patients,” said Dr Nitish Shetty, Aster DM Healthcare CEO, India, responded by mentioning the expansion. He stated that with this expansion, Aster CMI-Hospital continues to live up to its reputation of providing exceptional care to the people around it Aster CMI Hospital expansion will improve PAT and EBITDA as it costs less than fixed costs to make a new bed. So the hospital brand doesn’t expect any short-term margin erosion.