Credit Rating- Revision

16 September 2026 BSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Mumbai 400001, Bandra (East), Mumbai 400051, Maharashtra, India Maharashtra, India Scrip Code: 540975 Scrip Symbol: ASTERDM Dear Sir/ Madam, Subject: Intimation of revision in Credit Rating of a Material Subsidiary Ref: Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) Pursuant to the aforementioned regulation read with SEBI Master Circular dated 30 January 2026, we would like to inform you that ICRA Limited (“ICRA”) has revised the credit ratings of KIMS Healthcare Management Limited, a Material Subsidiary of the Company, as under: Particulars Previous Current Rated Rating Action Rated Amount Amount (Rs. crore) (Rs. crore) Long-term – Fund- 19.00 19.00 [ICRA]AA(Stable); based – Cash Credit upgraded from [ICRA]AA-; Stable outlook assigned; removed from Rating Watch with Developing Implications Long-term – Fund- 75.00 75.00 [ICRA]AA(Stable); based – Term Load upgraded from [ICRA]AA-; Stable outlook assigned; removed from Rating Watch with Developing Implications Short-term – Fund- 12.00 12.00 [ICRA]A1+; based – Others reaffirmed and removed from Rating Watch with Developing Implications Long-term/Short- 104.00 104.00 [ICRA]AA(Stable)/[ICRA]A1+; term – Unallocated long-term rating upgraded from [ICRA]AA-; short- term rating reaffirmed; Stable outlook assigned; ratings removed from Rating Watch with Developing Implications Total 210.00 210.00 A copy of the Credit Rating letter is enclosed for the reference. We request you to kindly take the above information on record. Thanking you, For Aster DM Quality Care Limited (Formerly Aster DM Healthcare Limited) Hemish Purushottam Company Secretary and Compliance Officer M. No.: A24331 Aster DM Quality Care Limited (Formerly Aster DM Healthcare Ltd.) Registered Office: No 7-1-450/20, Plot No-04, Mythri Vihar, Sanjeev CIN: L85110TS2008PLC207383 Reddy Nagar, Ameerpet, Hyderabad, Telangana, India, 500038 Telephone: +91 96060 61833 E-mail: cs@asterqualitycare.com Corporate Office: Brigade Deccan Heights 20th & 12th Floor, Website: www.asterqualitycare.com #42, 5th Mile, Tumkur Rd, Yeshwanthpur Industrial Area, Phase 1, Yeshwanthpur, Bengaluru-560022 September 15, 2026 KIMS Healthcare Management Limited: Long-term rating upgraded to [ICRA]AA (Stable) and Stable Outlook assigned; short-term rating reaffirmed; ratings removed from Rating Watch with Developing Implications Summary of rating action Previous rated Current rated Financial Instrument* amount amount Rating action Sector (Rs. crore) (Rs. crore) Regulator# [ICRA]AA(Stable); upgraded from [ICRA]AA-; Long-term – Fund-based - Cash 19.00 19.00 Stable outlook assigned; removed from Rating RBI Credit Watch with Developing Implications [ICRA]AA(Stable); upgraded from [ICRA]AA-; Long-term – Fund-based - Term 75.00 75.00 Stable outlook assigned; removed from Rating RBI Loan Watch with Developing Implications Short-term – Non-fund Based - [ICRA]A1+; reaffirmed and removed from Rating 12.00 12.00 RBI Others Watch with Developing Implications [ICRA]AA(Stable)/[ICRA]A1+; long-term rating upgraded from [ICRA]AA-; short-term rating Long-term/Short-term – 104.00 104.00 reaffirmed; Stable outlook assigned; ratings RBI Unallocated removed from Rating Watch with Developing Implications Total 210.00 210.00 *Instrument details are provided in Annexure I #SEBI’s grievance redressal/dispute resolution and SEBI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments, which fall under the regulatory purview of Financial Sector Regulators other than SEBI. Rationale For arriving at the ratings, ICRA has taken consolidated view of KIMS Healthcare Management Limited (KHML) and its wholly- owned subsidiary, KIMS Nagercoil Institute of Medical Sciences Private Limited (KNIMSPL). ICRA has considered the consolidated financials of KHML, given the operational and financial linkages between the entities and their common management. ICRA had earlier placed KHML’s ratings on Watch with Developing Implications, given the proposed merger of its erstwhile parent, Quality Care India Limited (QCIL) with Aster DM Healthcare Limited (ADMHL). The merger has since been successfully completed and the ADMHL has been renamed to Aster DM Quality Care Limited (ADMQCL), a significantly larger and more diversified healthcare service provider. KHML’s ratings upgrade factors in the improved credit profile of its parent, ADMQCL, marked by significant strengthening of the merged entity’s business and financial risk profile, underpinned by its larger scale of operations, enhanced geographic diversification, and the complementary operating strengths of ADMHL and QCIL. KHML is strategically important to ADMQCL, given its strong brand position in the Kerala and Tamil Nadu markets and its established presence with bed capacity of 1,560 as on March 31, 2026. ICRA also notes that KHML is likely to be supported by ADMQCL, if required. It is expected to benefit from operational synergies with the parent, which are likely to be enhanced by the large scale of operations. KHML’s flagship hospital in Trivandrum has a strong brand recall, attracting patients from nearby districts in Kerala and Tamil Nadu. Continued healthy occupancy at the flagship hospital, improved footfalls at other hospitals, bed additions, and healthy growth in average revenue per occupied bed day (ARPOB) have resulted in a healthy uptick in revenue at a compounded annual growth rate (CAGR) of around 25% in the five-year period ending in FY2026. Moreover, the company’s revenue recorded a www.icra.in 1 Sensitivity Label : Public Page | strong growth of around 23% in FY2026 on the back of steady occupancy and improved ARPOB across its network, driven by healthy case mix and price rationalisation after investment from ADMQCL. ICRA expects the company to achieve a healthy double-digit revenue growth in FY2027 on the back of expected improvement in ARPOB and healthy occupancy levels. Its operating margin improved materially by 400bps to 30.2% in FY2026 from 26.2% in FY2025, aided by operating leverage from increased scale and cost optimisation initiatives. The strong ramp-up in the recently commenced Nagercoil facility also supported the margin expansion. ICRA expects the company’s OPM to remain healthy and stable at 30–33% in the near to medium term. Improved earnings led to further strengthening of KHML’s debt metrics with Total debt/OPBITDA improving to 0.4 times in FY2026 (0.5 times in FY2025), interest-coverage to 23.4 times in FY2026 (18.7 times in FY2025) and DSCR to 8.3 times in FY2026 (from 6.0 times in FY2025). The company’s debt metrics are estimated to remain strong going forward as well. The ratings are, however, constrained by the company’s continued revenue concentration in its Trivandrum facility, which accounted for around 68-72% of its consolidated revenues and about 74-78% of the OPBITDA in FY2026. The company also remains exposed to competitive intensity in the healthcare sector, particularly in Kerala, risks associated with attracting and retaining qualified medical professionals, and regulatory risks arising from any changes in healthcare pricing policies. Nevertheless, ICRA expects the gradual scaling up of newer facilities, including the Nagercoil hospital, to support diversification of the revenue profile over the medium term while maintaining healthy profitability and credit metrics. The Stable outlook on the long-term ratings reflects ICRA's expectation that KNIMSPL will see healthy growth in earnings, supported by robust demand and its established position in its target markets. Key rating drivers and their description Credit strengths Strong brand reputation in Trivandrum – KHML’s flagship hospital at Trivandrum has a strong br [Showing first 8,000 characters — download PDF for full document]