Dr Agarwal's Hea

Dr. Agarwal's Health Care Limited delivered a robust financial performance in FY25, with total income growing 27.6% year-on-year to INR1,757 crores. Revenue from operations increased by 28.4% to INR1,711 crores. EBITDA for the year stood at INR502 crores, reflecting a 23.6% growth and a margin of 28.6%. Profit after tax (PAT) grew 16% to INR110 crores, with a PAT margin of 6.3%.

The company reported strong Q4 FY25 results, with total income up 28.9% to INR476 crores and revenue from operations growing 31.9% to INR460 crores. EBITDA for the quarter was INR145 crores, a 13.9% growth, translating to a 30.8% margin. However, EBITDA margins were impacted by increased IPO expenses, marketing costs, and a decline in other income of INR8.4 crores. PAT grew 3% to INR43 crores, yielding an 8.9% margin.

In FY25, Dr. Agarwal's expanded its network by adding 59 facilities, comprising 32 primary, 25 secondary, and 2 large tertiary centers, bringing the total to over 236 facilities across India and Africa. For FY26, the company targets launching 55-60 new facilities, with 25-30 being surgical and the remainder clinics. Approximately 70% of this expansion will be in core geographies like Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, and Maharashtra.

Revenue growth was significantly driven by the premiumization of surgeries, increased surgical volumes, and improved surgical conversions. The company has invested in advanced technology, installing femto-cataract machines in key cities and planning to add SMILE technology. In FY25, cataract surgeries constituted about 73% of total surgeries, while refractive surgeries accounted for approximately 6%.

The company plans a capex of approximately INR310 crores for FY26. This includes INR180-200 crores for new greenfield projects, INR50 crores for renovation and relocation, and INR40-45 crores for new technology and growth capex for existing facilities. Additionally, INR70-80 crores will be spent on a new flagship facility, demonstrating a strong commitment to capacity and capability expansion.

The CFO to EBITDA ratio declined from 85% in FY24 to 72% in FY25, primarily due to increased inventory (3% impact), receivables (2% impact), and higher vendor payments (1% impact). The FY25 payer mix was 64% cash, 26% insurance/TPA, and 10% government. The increase in cash component was attributed to growth in non-insured procedures like femto cataracts and refractive surgeries, and a cautious approach to government business due to payment delays.

While mature facilities in India showed a healthy growth of approximately 15%, the overall average revenue per mature facility growth was impacted by headwinds in Africa. African facilities experienced flat to negative growth and currency impacts. The company also noted that the inclusion of primary care facilities, which have a slower revenue ramp-up, into the mature bucket contributed to the observed dip in average growth.