Aashka Hospitals Ltd (543346)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Aashka Hospitals' revenue was ₹12.6 Cr (+22.3% year on year, +20.4% on the previous half-year), and net profit ₹2.6 Cr (+55.2% year on year); the operating margin was 24.9%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹12.6 | +22.3% | +20.4% |
| Operating profit | ₹3.1 | from loss | +48.3% |
| Net profit | ₹2.6 | +55.2% | +228.2% |
| EPS (₹) | 1.09 | +53.5% | +230.3% |
| Operating margin | 24.9% | — | — |
📢 Recent Corporate Announcements
Aashka Hospitals Limited submitted its Annual Report for FY 2025-26 along with the notice for its 14th Annual General Meeting scheduled for September 24, 2026. For FY26, revenue from operations stood at Rs 23.01 Cr (INR 2,301.03 Lakhs) compared to Rs 22.65 Cr in FY25, while net profit came in at Rs 3.34 Cr (INR 333.89 Lakhs) vs Rs 3.27 Cr. The company operates a 150-bed multi-specialty hospital in Gandhinagar, including 65 ICU beds. The Board has not recommended any dividend for FY26.
- FY26 Revenue from Operations stood at Rs 23.01 Cr (INR 2,301.03 Lakhs) vs Rs 22.65 Cr in FY25
- FY26 Profit After Tax reported at Rs 3.34 Cr (INR 333.89 Lakhs) vs Rs 3.27 Cr in FY25
- 14th AGM scheduled for September 24, 2026, at the Gandhinagar registered office
- Facility configuration details 150 beds, including 65 ICU beds and 6 operating theaters
- No dividend recommended for FY 2025-26
Aashka Hospitals Ltd has issued the notice for its 14th Annual General Meeting scheduled for September 24, 2026. Key special business items include the re-appointment of Chairman & MD Mr. Bipinchandra Dineshbhai Shah for a 3-year term with compensation up to ₹20 lakh per month (₹10 lakh basic + up to ₹10 lakh perquisites). Shareholders will also vote to approve an increase in borrowing limits under Section 180(1)(c) up to ₹25 crore and authorization for loans/investments under Section 186 up to ₹50 crore.
- 14th AGM scheduled for September 24, 2026, with remote e-voting from September 21 to September 23, 2026.
- Proposed re-appointment of CMD Mr. Bipinchandra Dineshbhai Shah for 3 years (Sept 20, 2026 to Sept 19, 2029) at basic salary of ₹10 lakh/month plus allowances up to ₹10 lakh/month.
- Seeking shareholder approval to raise borrowing limits under Section 180(1)(c) up to ₹25 crore.
- Proposed limit of up to ₹50 crore under Section 186 for loans, guarantees, and securities.
Aashka Hospitals announced the outcomes of its board meeting held on August 27, 2026. The board approved the FY26 Board's Report and authorized the notice convening the 14th Annual General Meeting. Mr. Bipinchandra D. Shah was re-appointed as Chairman and Managing Director for a further term of 3 years. Additionally, the company decided not to proceed with incorporating the previously proposed subsidiary, Aashka – Rhythm Hospitals Private Limited.
- Re-appointment of Mr. Bipinchandra D. Shah as CMD for a 3-year term
- Cancellation of proposed incorporation of subsidiary Aashka – Rhythm Hospitals Private Limited
- Approved Notice and convening of the 14th Annual General Meeting
- Board meeting conducted on 27 August 2026 between 15:30 and 16:50 hours
Aashka Hospitals has signed a Memorandum of Understanding (MoU) on August 7, 2026, to acquire a 70% controlling stake in a new entity formed by restructuring four businesses: Rhythm Medical Stores, Rhythm Multispeciality Hospital, Cardioplus Heart Care, and Rhythm Medical & Heart Hospital. Aashka will gain majority board control and voting rights in the consolidated entity. The acquisition price is yet to be determined through a formal valuation process. This move represents a significant inorganic expansion for Aashka, which currently operates with a TTM revenue of Rs 46 Cr and a 'CRISIL D' credit rating.
- Acquisition of a 70% controlling stake in a newly restructured entity comprising four healthcare businesses.
- Consolidation includes Rhythm Medical Stores, Rhythm Multispeciality Hospital, Cardioplus Heart Care, and Rhythm Medical & Heart Hospital.
- Aashka Hospitals will hold 70% of total voting rights and capital in the new entity.
- MoU signed on August 7, 2026, granting Aashka the right to appoint the majority of the Board of Directors.
- Transaction price to be determined via valuation at the time of the final agreement.
Aashka Hospitals Ltd has approved the incorporation of a new subsidiary, Aashka – Rhythm Hospitals Private Limited, in which it will hold a 70% stake. The initial investment is a nominal ₹70,000 for 7,000 equity shares at a face value of ₹10 each. While the current financial commitment is negligible compared to the company's TTM revenue of ₹46 Cr, this move establishes a corporate structure for future healthcare activities. Investors should note that the subsidiary is yet to be incorporated and its specific operational scale remains undisclosed.
- Acquisition of a 70% controlling stake in the proposed subsidiary Aashka – Rhythm Hospitals Private Limited
- Initial cash consideration of ₹70,000 for 7,000 equity shares
- Subsidiary to be engaged in the business of hospitals and healthcare activities
- Board approval finalized on July 28, 2026, with no regulatory approvals required for incorporation
Aashka Hospitals Ltd has approved the incorporation of a new subsidiary, Aashka – Rhythm Hospitals Private Limited. The company will hold a 70% stake by subscribing to 7,000 equity shares at a face value of ₹10 each, totaling a nominal cash investment of ₹70,000. This new entity will operate in the hospital and healthcare sector, aligning with the parent company's core business. While the initial investment is immaterial relative to the company's ₹178 Cr market cap, it establishes a vehicle for potential future projects.
- 70% controlling stake to be held by Aashka Hospitals Ltd in the proposed subsidiary
- ₹70,000 total initial cash consideration for the subscription of shares
- 7,000 equity shares to be issued at a face value of ₹10 each
- 100% of the subsidiary's business will be focused on hospital and healthcare activities
Financial Performance
Revenue Growth by Segment
The company operates in a single reportable segment (Healthcare/Hospital services). Revenue for H1 FY2025 was INR 12.36 Cr, representing a 14.44% growth compared to INR 10.8 Cr in H1 FY2024. Full-year FY2024 revenue was INR 12.07 Cr.
Geographic Revenue Split
100% of revenue is derived from Gandhinagar, Gujarat, where the multi-specialty hospital is located.
Profitability Margins
Operating Profit Margin (OPM) improved significantly to 36.22% in H1 FY2025 from 7.67% in H1 FY2024. Net Profit Margin (NPM) stood at 13.09% in H1 FY2025 compared to 3.93% in H1 FY2024 and -13.56% in FY2023.
EBITDA Margin
EBITDA margin (proxied by OPM) was 36.22% in H1 FY2025, a substantial increase from 30.08% in FY2024. This improvement is driven by better absorption of fixed costs like employee benefits (INR 2.16 Cr) and depreciation (INR 1.46 Cr) over a growing revenue base.
Capital Expenditure
Fixed assets stood at INR 41.94 Cr as of September 30, 2025, compared to INR 41.67 Cr as of March 31, 2025, indicating minor maintenance capex of approximately INR 0.27 Cr.
Credit Rating & Borrowing
The company carries a 'CRISIL D' (Issuer Not Cooperating) rating, which was withdrawn in March 2025. This rating indicates a history of default. Total bank loan facilities rated were INR 33.15 Cr.
Operational Drivers
Raw Materials
Medicines and surgical consumables (Stock-in-trade) represent the primary material cost, totaling INR 1.39 Cr in H1 FY2025, which is 11.2% of total revenue.
Import Sources
Not disclosed in available documents; typically sourced from domestic pharmaceutical distributors in Gujarat.
Capacity Expansion
The hospital was scheduled to commence operations in May 2015 as a multi-specialty unit. Current documents do not specify the number of beds or planned bed additions.
Raw Material Costs
Purchase of stock-in-trade was INR 1.39 Cr in H1 FY2025, up 14% from INR 1.22 Cr in H1 FY2024, tracking revenue growth closely.
Manufacturing Efficiency
Capacity utilization is not disclosed, but the jump in OPM from 7.67% to 36.22% suggests a significant increase in patient footfall and bed occupancy.
Strategic Growth
Expected Growth Rate
14%
Growth Strategy
Growth is being achieved through the stabilization of the multi-specialty hospital operations in Gandhinagar and increasing the volume of surgeries and OPD consultations. The company is focusing on improving operating leverage by maintaining fixed costs while increasing patient throughput.
Products & Services
Multi-specialty healthcare services including OPD (Outpatient), IPD (Inpatient), surgeries, diagnostic services, and pharmacy sales.
Brand Portfolio
Aashka Hospitals
Market Expansion
Focused on the Gandhinagar and Ahmedabad (Gujarat) healthcare market.
Strategic Alliances
Promoted by Mr. Bipin Shah, Dr. Kaushik Gajjar, Dr. Raj Raval, and Dr. Parag Thakkar.
External Factors
Industry Trends
The healthcare industry is shifting toward organized multi-specialty chains with higher insurance coverage. Aashka is positioned as a local multi-specialty provider but faces stiff competition from larger hospital chains in Ahmedabad.
Competitive Landscape
Competes with other private multi-specialty hospitals and government facilities in the Gandhinagar-Ahmedabad corridor.
Competitive Moat
The moat is limited to local brand recognition and the specialized expertise of the promoter doctors. The 'CRISIL D' rating is a significant competitive disadvantage for financial sustainability.
Macro Economic Sensitivity
Highly sensitive to healthcare spending and insurance penetration in Gujarat.
Consumer Behavior
Increasing preference for institutionalized healthcare over small clinics due to insurance availability.
Geopolitical Risks
Low, as operations are localized to Gandhinagar, Gujarat.
Regulatory & Governance
Industry Regulations
Subject to Clinical Establishments Act, NABH accreditation standards, and local health department regulations in Gujarat.
Environmental Compliance
Must comply with Biomedical Waste Management Rules; costs not separately disclosed.
Taxation Policy Impact
Tax expenses (MAT) for H1 FY2025 were INR 0.14 Cr, representing an effective tax rate of approximately 15.6% on PBT of INR 0.92 Cr.
Legal Contingencies
The company has a history of non-cooperation with credit rating agencies (CRISIL), leading to a default rating and subsequent withdrawal.
Risk Analysis
Key Uncertainties
The primary uncertainty is the recovery of trade receivables (INR 7.79 Cr), which could impact cash flow by over 50% of half-yearly turnover if delayed.
Geographic Concentration Risk
100% revenue concentration in Gandhinagar, Gujarat, making it vulnerable to local economic or regulatory changes.
Third Party Dependencies
High dependency on the promoter doctors for clinical reputation and patient referrals.
Technology Obsolescence Risk
Medical equipment requires periodic upgrades; limited access to capital due to 'D' rating may hinder technology adoption.
Credit & Counterparty Risk
High risk as evidenced by the 'CRISIL D' rating and the classification as 'non-cooperative' by rating agencies.
