Aster DM Healthcare Plans Rs 250 Cr Expansion For Aster CMI Hospital In Bengaluru

Aster DM Healthcare on Monday said it has plans for expanding its Aster CMI Hospital in Bengaluru. The hospital, a multispecialty institution, will see an investment of Rs 250 crore to expand its infrastructure by an additional 3 lakh square feet. 

This investment will increase the hospital’s bed capacity from 500 to 850 by FY2027. Aster said it anticipates additional infrastructure to positively impact the hospital’s EBITDA and PAT, with minimal fixed costs associated with operating the new beds. 

Aster DM Healthcare’s broader expansion strategy includes adding approximately 1,700 beds across India by FY2027, increasing its total bed capacity to over 6,600. The company said this will be achieved through a mix of brownfield and greenfield projects, including new facilities in Trivandrum and Kasargod and enhanced capacities at existing hospitals. 

In a statement, Dr. Azad Moopen, Founder Chairman, Aster DM Healthcare said, “The expansion of Aster CMI Hospital thus solidifies our unwavering commitment to the Indian business. The overall India business EBITDA for Aster DM Healthcare has grown at the rate of 35 per cent CAGR over the past 5 years, which is reflected in the performance of EBITDA margin as well. We expect the strong performance to continue in the future, which will be supported by operational leverage on account of brownfield expansion and implementing various cost optimization measures.”

The company is also exploring potential expansions in Maharashtra and Uttar Pradesh, with a total capital allocation of Rs 1,000 crore for these initiatives.