Dr. Agarwal's Health Care: A Clear Vision for Growth in H1 FY26

Dr. Agarwal's Health Care Limited, a prominent player in the Indian eye care services industry, has reported a robust financial performance for the first half of fiscal year 2026 (H1 FY26). The company achieved a significant milestone, surpassing the INR 1,000 crore mark in total income for the first time, reaching INR 1,007 crores. This represents a strong year-on-year growth of 20.2%. Profit After Tax (PAT) also saw an impressive surge, climbing 88.4% year-on-year to an all-time high of INR 75 crores, with PAT margins expanding by 270 basis points to 7.2%. The company's IndAS EBITDA for H1 FY26 stood at INR 285 crores, reflecting a 24.9% year-on-year growth and an improvement in margins by 100 basis points to 28.3%.

Driving Growth Through Specialized Services and Strategic Expansion

The company's revenue mix highlights the critical role of surgical services, which contributed 66.5% to the overall revenue from operations in H1 FY26. This growth was significantly bolstered by the increasing adoption of specialized procedures. Robotic Femto Cataract surgeries witnessed a remarkable 69% year-on-year growth, with 2,616 procedures performed. Lenticular Procedures, including SMILE surgeries, also saw a healthy 11.5% year-on-year increase, totaling 2,668 surgeries. Retinal surgeries grew by 23% to 6,205, and corneal transplants rose by 15.8% to 578 procedures. This focus on high-end, technology-driven treatments underscores the company's commitment to clinical excellence and premiumization.

Dr. Agarwal's Health Care's strategic expansion is equally noteworthy. The company operates a diversified network of 258 eye care facilities, including 239 in India across 14 states and 5 Union Territories, and 19 facilities in nine countries across Africa. In H1 FY26, the company commissioned 24 new Greenfield facilities, further strengthening its reach. The management noted that 31% of its facilities are in Tier 1 cities, while 62% are in other cities, demonstrating a balanced approach to market penetration.

Operational Excellence and Future Outlook

The company's operational highlights for H1 FY26 include serving 1,435,024 patients and performing 157,281 surgeries, representing a 24.4% and 14.6% year-on-year growth, respectively. The doctor count increased to 881, and paramedics to 1,988, ensuring adequate clinical support for the expanding network. The South region continues to be the largest market, contributing 64.3% of domestic revenue with a 22.2% YoY growth, followed by the West (15.2% contribution, 16.6% YoY growth), North (7.3% contribution, 14.2% YoY growth), and East (2.8% contribution, 15.2% YoY growth).

A key strategic initiative highlighted was the relocation and upgrade of the Whitefield facility in Bangalore. This facility was transformed from a secondary to a tertiary center, operating in a larger 20,000 sq ft space. Post-relocation, it has shown significantly improved performance, with an average of 2,700 OPD visits, 212 surgeries, and INR 2.1 crores in revenue per month. This success demonstrates the effectiveness of strategic facility optimization and expansion.

Looking ahead, the management maintains a positive outlook. They expect to be in line with their annual guidance for the year and plan to launch another 30 domestic facilities in Q3 and Q4 FY26. The capex guidance remains at INR 310 crores, plus INR 70 crores for flagship projects. The company anticipates continued premiumization growth of 4.5% to 5% in surgeries and expects overall margins to remain similar to H1 FY26 levels, driven by ongoing expansion and new Greenfield facilities. The focus on clinical excellence, advanced technology, and strategic market penetration positions Dr. Agarwal's Health Care for sustained growth and profitability.