Dr Agarwal's Hea

Dr. Agarwal's Health Care Limited reported a strong Q3 and 9M FY26. For the nine months ended December 2025, total income reached ₹1,548 crores, a 20.8% year-on-year increase, with revenue from operations rising 21.2% to ₹1,516 crores. IndAS EBITDA for 9M FY26 was ₹440 crores, growing 23.6% YoY, and margins improved by 64 basis points to 28.4%. Profit after tax for the nine months grew 74.3% YoY to ₹118 crores, with PAT margins expanding to 7.6%. Q3 FY26 alone saw total income of ₹540 crores (up 21.9% YoY) and revenue from operations of ₹530 crores (up 23% YoY), delivering an EBITDA of ₹155 crores (up 21.3% YoY) with 28.4% margins.

The company continued its aggressive expansion, commissioning 14 new Greenfield facilities during Q3 FY26, including nine secondary centers. This brings the total network to 253 facilities across 14 states and five union territories, covering 148 cities. Management highlighted that the ramp-up of recently launched facilities has been faster than in earlier phases, supported by strengthening brand equity. The goal is to add 52 to 55 facilities by the end of the current fiscal year, with plans to launch another 16 centers in the next quarter, including 11 surgical centers. The company aims to increase its network size by about 20% annually, targeting 55-60 new facilities each year.

Dr. Agarwal's demonstrated strong growth in complex surgeries. For the nine months ended December 2025, high-end cataract surgeries constituted 43.5% of total cataract procedures, totaling 45,459 surgeries, an increase of 43.5% over the previous year. Robotic cataract surgeries (Femto cataract) saw a robust 83% year-on-year growth, rising from 2,616 to 4,400 procedures. Lenticular (SMILE) surgeries increased 17.7% YoY to 4,970, and retinal surgeries grew 23.2% to 9,437. The company also performed 792 corneal transplants during this period, emphasizing its investment in cutting-edge technology and advanced surgical capabilities.

The Southern region remains the largest market, contributing 63% of total group revenues with ₹950 crores, growing 22.4% YoY. The West region contributed 16% of revenues with ₹244 crores, up 18.4% YoY, while the North region contributed 8.3% with ₹126 crores, up 19.7% YoY. Operations in the Delhi NCR region have commenced strongly, with a secondary facility in Gurgaon launched in November 2025. Facilities operational prior to FY22 contributed ₹1,025 crores, growing 14.2% YoY, while FY23 and FY24 vintage centers generated ₹187 crores (14.3% growth) and ₹124 crores (18% growth) respectively, indicating strong ramp-up and same-store sales growth of over 13.5%.

Surgical services continue to be the primary revenue driver, contributing 67% to the group's total revenue. Diagnosis, consultations, and other non-surgical treatments accounted for 11.6%, while optical products and pharmacy items made up 21.5%. The payer mix for YTD December 2025 was 62.4% cash, 28.5% insurance and TPA, and 9.1% government schemes. Domestically, the mix was 70.9% cash, 22.9% insurance/TPA, and 6.3% government schemes. Gross margins remained stable year-on-year, with high-end cataract procedures increasing to 26.6% of total in YTD December 2025 from 24.6% in FY25.

The company has made significant capital expenditures, with approximately ₹275 crores spent YTD out of ₹310 crores committed. This includes ₹35 crores out of ₹70 crores committed for the Cathedral Road facility. Cumulative Greenfield losses for branches launched over the last three years amounted to ₹28.5 crores, though FY24 and FY25 vintage centers are now profitable. The company has also actively managed its debt, repaying ₹95 crores from IPO proceeds, ₹128 crores in Q4 FY25, and ₹67 crores in YTD December 2025, leading to lower finance costs and improved profitability.

The company has filed for a no-objection certificate from stock exchanges for the merger and expects to receive it shortly, followed by NCLT proceedings. The entire merger process is anticipated to be completed by Q3 or Q4 of 2027. The large facility in the subsidiary is expected to be completed with all licenses and approvals by Q2 FY2027. Management is also exploring the Ethiopian market, viewing it as a high-potential opportunity due to its steady patient base and respect for Indian doctors, with a feasibility study currently underway to determine CAPEX spend and projections.