Dr Agarwal's Hea

Dr. Agarwal's Health Care Limited achieved a significant milestone in H1 FY26, surpassing INR1,000 crores in total income for the first time, reaching INR1,007 crores, a 20.2% year-on-year increase. Revenue from operations also grew by 20.2% to INR986 crores. This robust top-line growth was accompanied by strong profitability, with IndAS EBITDA rising 24.9% to INR285 crores, and margins expanding by 100 basis points to 28.3%. PAT saw an even more impressive surge of 88.4% year-on-year to INR75 crores, with PAT margins improving by 270 basis points to 7.2%.

For the second quarter of FY26, the company reported a total income of INR507 crores, an 18.2% increase year-on-year, and revenue from operations grew 19.7% to INR499 crores. Q2 IndAS EBITDA stood at INR144 crores, reflecting a 21.2% year-on-year growth, with margins improving by 70 basis points to 28.4%. PAT for Q2 grew 71% year-on-year to INR36 crores, with PAT margins expanding by 220 basis points to 7.2%. Management attributed these margin improvements to cost efficiencies, particularly improved gross margins (from 77.1% to ~79%) and controlled doctor/employee costs.

In H1 FY26, Dr. Agarwal's Health Care served over 14.3 lakh patients and performed nearly 157,000 surgeries across its network of 258 facilities (29 hubs and 229 spokes). The company expanded its footprint by commissioning 24 new Greenfield facilities, with 11 added in Q2 alone. The network now comprises 239 facilities across 14 states and 5 union territories in India, covering 141 cities. The presence is well-diversified, with 31% of facilities in Tier 1 cities, 62% in other cities, and 7% internationally, demonstrating a balanced growth strategy.

The company continues to emphasize specialized surgical procedures and advanced technology. In H1 FY26, high-end cataract surgeries accounted for 25.8% of total cataract procedures, with total cataract procedures increasing 41.7% year-on-year to 29,697. Robotic cataract surgeries (Femto Cataract) grew robustly by 69% year-on-year to 2,616 procedures. Lenticular (SMILE) surgeries increased 11.5% to 2,668, and retinal surgeries rose 23% to 6,205. Management noted that premiumization, contributing 4.5-5% growth this quarter, is a key driver for revenue per surgery and is expected to continue.

The Southern region remains the largest contributor, delivering INR635 crores in revenue (64% of total) with a strong 22.2% year-on-year growth. The West region contributed INR150 crores (15.2% of total), growing 16.6% year-on-year, despite some impact from festivities and rains. The North region, contributing 7.3% of total revenue, grew 14.2% year-on-year, experiencing a softer H1 due to unseasonal rains and early festivities, but is expected to improve in H2. The company plans significant expansion in the Delhi-NCR market over the next 12 months, reinforcing its confidence in the region's potential.

Mature facilities (operational for over 3 years) contributed 75% of total group revenues, growing 13.4% to INR734 crores in H1 FY26. Facilities operational prior to FY22 grew 13.9% to INR685 crores, underpinning strong same-store sales growth. The company plans to launch another 30 facilities in the next two quarters of FY26, with a focus on the South (17 facilities), West (6), North (4), and East (4). Management highlighted the successful relocation and upgrade of the Whitefield facility in Bangalore, which saw a significant improvement in performance, with average monthly revenue of INR2.1 crores and 2,700 OPD visits.

The company has been proactive in managing its debt, repaying INR195 crores in loans from IPO proceeds, which included INR128 crores in Q4 FY25 and the balance in H1 FY26. This debt reduction has contributed to lower finance costs and improved profitability. For FY26, the company's capital expenditure guidance remains at INR310 crores, with an additional INR70 crores allocated for flagship projects, indicating continued investment in growth and infrastructure.