Synopsis: Aster DM Healthcare Limited reported a Rs 17.68 crore revenue loss between March 8 and March 13, 2026, due to a nurse strike across its Kerala hospitals. The disruption affected patient occupancy and staffing. The company warned losses could have risen to about Rs 23 crore if the strike had continued for longer.
Shares of Aster DM Healthcare Limited came under pressure after the company disclosed revenue losses due to a nurse strike in Kerala. The strike disrupted operations across several hospitals in the state, affecting occupancy levels and staffing. The temporary disruption highlighted how labour issues can significantly impact hospital operations and financial performance.
With a market cap of Rs 33,000 crore, the shares of Aster DM Healthcare Ltd crashed about 5% in today’s trading session and reached a low of Rs 637. When compared to its previous day’s closing price of Rs 667.65. The shares are trading at a PE of 91.8, whereas their industry’s PE is at 42.7, and they have given a return of about 380% in the last 5 years.
Nurse strike disrupts operations across Kerala hospitals
A nurse strike has been affecting the operations of several hospitals owned by Aster DM Healthcare Limited in the state of Kerala. The strike started on March 9, 2026, organised by the United Nurses Association, who demanded changes in the wage structure. Since the company has seven hospitals in Kerala, the nurse strike affected the number of patients, causing the hospitals to run with skeletal staff for several days.
To cope with the situation, the company implemented a contingency plan, which included the transfer of nurses from hospitals in other states, such as Karnataka, to continue critical care services. However, the Kerala Private Hospital Association moved the Kerala High Court, which ordered the nurses to call off the strike until March 19, 2026, and referred the issue to mediation to find a solution. After the intervention by the court, some nurses returned to work, and the hospitals slowly returned to normal.
Loss from the Strike
As a result of the strike, the company suffered a loss of revenue of Rs 17.68 crore between March 8 and March 13, 2026. Had the matter dragged on until March 19, the company estimated that the total possible loss could have been approximately Rs 23.01 crore, including an additional possible loss of Rs 5.32 crore.
When contrasted with the profitability figures, the effect is quite pronounced. The company posted a net profit of Rs 64 crore in Q3 FY25, which means that the loss of Rs 17.68 crore is approximately 27-28% of the net profit posted during that quarter. In Q3 FY26, the company posted a net profit of Rs 59 crore, which means that the loss due to the strike is approximately 30% of the net profit posted during that quarter.
These numbers bring out the point that labour strikes can have a significant effect on hospital chains in the short term. Even a single strike can result in postponed surgeries, reduced occupancy, and reduced services, which has a direct effect on the bottom line.
Financials
The revenue from operations for the company stood at Rs 1,186 crore in Q3 FY26 compared to the Q3 FY25 revenue of Rs 1,050 crore, up by about 13 per cent YoY. However, the net profit stood at Rs 59 crore in Q3 FY26, down compared to the Rs 64 crore profit in Q3 FY25.
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