Dr Agarwal's Hea

Dr. Agarwal's Healthcare Limited achieved a landmark year in FY26, crossing INR 2,000 crores in revenue for the first time, with total income reaching INR 2,125 crores, a 20.9% YoY increase. Revenue from operations grew 21.6% to INR 2,080 crores. The company delivered a robust Ind AS EBITDA of INR 614 crores, marking a 22.2% YoY growth and improving margins by 31 basis points to 28.9%. Profit After Tax (PAT) saw a significant increase of 52.4% YoY to INR 168 crores, with PAT margin expanding by 164 basis points to 7.9% for the year. The company also reached a total doctor strength of over 1,000 across its network.

The company continued its aggressive greenfield expansion strategy, commissioning 19 new facilities in Q4 FY26, including 7 surgical centers and 12 primary facilities. For the full year FY26, the company launched one new facility every week, adding its footprint across 26 new cities. Since FY23, Dr. Agarwal's has added 148 new greenfield facilities, representing a 5.7x growth in annual additions. The total network now stands at 269 facilities in India and 19 in Africa, spread across 14 states and five union territories covering 155 cities. For FY27, the company plans to commission 60 new facilities, comprising 40 surgical centers and 20 clinics, with a significant focus on the North and West regions.

In FY26, the company served over 30 lakh patients and performed over 3.23 lakh surgeries. High-end cataract surgeries accounted for 26.3% of the 62,800 total cataract procedures, with robotic Femto Cataracts growing robustly by 87% YoY, crossing 5,900 procedures. Retinal surgeries increased by 23% from last year, reaching 12,800 procedures. Surgical services remained the main revenue driver, contributing 67% to the group's revenue. The company also performed over 1,150 corneal transplants during the year. However, refractive procedures experienced some 'softness' compared to cataract growth, though high-end Lenticular Procedures grew 19% YoY.

The company's sustained focus on operational efficiency and disciplined execution contributed to its strong performance. Mature facilities (opened prior to FY22) contributed INR 1,375 crores in revenue, reflecting a strong 14% same-store sales growth and accounting for 66% of group revenues. This growth was driven by approximately 7% volume growth (5.5% from OPD, rest from conversions) and 7% value growth (5% from premiumization, 1.5% from price hike). Management expects this growth trajectory to be sustainable. The company's new software, Neo, an AI-ready hospital management system, currently manages 20,000 patients daily and is built to scale beyond 5,000 branches and 2 million patients.

Progress on the proposed merger of Dr. Agarwal's Healthcare Limited and Dr. Agarwal's Eye Hospital Limited continues, with NCLT Chennai bench allowing the joint first motion application and directing shareholder meetings on July 2, 2026. The merger is expected to conclude by Q3 FY27. In terms of capital allocation, the company plans an overall CapEx outflow of INR 380-400 crores for FY27, primarily for new facilities and a new CMS facility. Acquisition-related payments are projected to be INR 60-65 crores in FY27 and INR 60 crores for FY28-30. The company has systematically repaid INR 195 crores in loans from IPO proceeds, contributing to a reduction in finance costs.

The Southern region remains the largest market, contributing 61% of group revenues with INR 1,273 crores, growing 22.6% YoY. The West region contributed 16% of revenues (INR 341 crores, up 19% YoY), and the North region 9% (INR 191 crores, up 20.7% YoY). The company expects growth to sustain at a similar pace in FY27, underpinned by deeper penetration, expansion into new geographies, and adoption of innovative surgical procedures. EBITDA margins are expected to remain stable despite aggressive greenfield expansion, reflecting underlying operating leverage. The company's expansion strategy in FY27 will see the North and West regions more than double their facility additions compared to FY26.