Aashka Hospitals - Aashka Hospitals

📊 BSE: 543346 🏢 Hospital 📅 Last Updated: 11/13/2025 15:25

💰 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The company carries a 'CRISIL D' (Issuer Not Cooperating) rating, which was withdrawn in March 2025.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.

Logistics & Distribution

Not applicable as a service-based hospital entity.

📈 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.