Dr Agarwals Eye Hospital H1 PAT rises 50.1% to Rs 112 crore

Dr Agarwals Eye Hospital reported consolidated H1 FY27 profit after tax of Rs 112 crore, up 50.1% year on year, as its PAT margin rose 130 basis points to 8.7% from 7.4%. Total income increased 27.6% to Rs 1,286 crore, while EBITDA margin was nearly unchanged at 28.2%.

How much profit did Dr Agarwals report in H1 FY27?

Dr Agarwals reported profit after tax, or PAT, of Rs 112 crore in H1 FY27, compared with Rs 75 crore in H1 FY26. The increase of Rs 37 crore exceeded the 27.6% growth in total income, which rose by Rs 279 crore to Rs 1,286 crore from Rs 1,007 crore. PAT margin increased to 8.7% from 7.4%, a 130-basis-point change; one basis point equals one-hundredth of a percentage point.

Revenue from operations increased 28.7% to Rs 1,269 crore from Rs 986 crore, accounting for the increase in total income. Other income declined 24.2% to Rs 16 crore from Rs 21 crore, reducing its share of total income to 1.3% from 2.1%. Thus, operating revenue growth offset the reduction in other income during the half year.

Why did Dr Agarwals’ PAT increase faster than total income?

Dr Agarwals’ PAT grew faster than total income because finance cost fell in absolute terms and both finance cost and depreciation represented smaller portions of income, despite a nearly flat EBITDA margin. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 27.0% to Rs 362 crore from Rs 285 crore. Its EBITDA margin was 28.2%, compared with 28.3% in H1 FY26.

Finance cost declined 1.9% to Rs 46 crore from Rs 47 crore, and its common-size ratio fell to 3.6% of total income from 4.7%. Depreciation and amortisation expense increased 23.1% to Rs 161 crore from Rs 131 crore, but declined as a share of income to 12.5% from 13.0%. These movements contributed to profit before tax increasing 44.5% to Rs 155 crore, with its margin rising to 12.1% from 10.6%.

What changed in Dr Agarwals’ H1 FY27 cost structure?

Dr Agarwals recorded a 50-basis-point increase in gross margin and a 70-basis-point increase in the operating-expense ratio, leaving the EBITDA margin 10 basis points lower. Cost of goods sold rose 24.6% to Rs 271 crore, slower than revenue growth, and gross margin rose to 78.9% from 78.4%. Operating expenses increased 29.3% to Rs 648 crore and represented 50.4% of total income, compared with 49.7% a year earlier.

The presentation defines its Ind AS EBITDA as profit before tax plus depreciation, amortisation and impairment expense plus finance costs, including other income. Employee stock option plan, or ESOP, expense was Rs 4 crore in H1 FY27 against Rs 3 crore in H1 FY26. On the presentation’s IGAAP measure, calculated as Ind AS EBITDA including other income less payment of lease liability, EBITDA increased 27.1% to Rs 284 crore from Rs 224 crore, while the margin was 22.1% versus 22.2%.

Did Dr Agarwals sustain the profitability trend in Q2 FY27?

Dr Agarwals reported Q2 FY27 PAT of Rs 57 crore, up 55.8% from Rs 36 crore in Q2 FY26, and its quarterly PAT margin rose to 8.5% from 7.2%. Total income increased 31.3% to Rs 665 crore from Rs 507 crore. The 134-basis-point quarterly PAT-margin expansion was slightly greater than the 130-basis-point improvement reported for H1 FY27.

Quarterly EBITDA increased 28.8% to Rs 186 crore from Rs 144 crore, but EBITDA margin declined to 27.9% from 28.4%. Finance cost was unchanged at Rs 23 crore, reducing its income share to 3.5% from 4.5%, while depreciation and amortisation increased to Rs 83 crore from Rs 68 crore but fell to 12.4% of income from 13.4%. Profit before tax consequently rose 48.9% to Rs 80 crore and tax increased 34.2% to Rs 23 crore.

How did Dr Agarwals’ payor mix change in H1 FY27?

Dr Agarwals’ cash payor share increased to 63.2% in H1 FY27 from 61.9% in H1 FY26, while insurance and third-party administrator, or TPA, share declined to 27.9% from 29.6%. Government payors accounted for 8.9%, compared with 8.5% in the preceding-year period. The figures describe healthcare-service payment sources rather than consolidated revenue from operations.

The presentation states that the payor-mix totals exclude revenue from Elistar Life Sciences Private Limited for the periods ended September 30, 2026 and September 30, 2025. This means the 63.2% cash share cannot be directly applied to the Rs 1,269 crore of consolidated H1 FY27 revenue from operations. The reported shift nonetheless shows a 1.3-percentage-point increase in cash share and a 1.7-percentage-point decrease in insurance and TPA share.

Conclusion

Dr Agarwals translated 27.6% growth in H1 FY27 total income into 50.1% growth in PAT, lifting profit to Rs 112 crore and PAT margin to 8.7%. The difference came below the EBITDA line: EBITDA margin was 28.2% versus 28.3%, while finance cost and depreciation each declined as a proportion of income.

The presentation does not disclose an earnings target, formal profitability guidance or a scheduled future result date. The next disclosures to watch are the cash and debt position after Q2 FY27, when gross debt was Rs 201 crore and net debt was Rs 29 crore, compared with net cash of Rs 124 crore at Q4 FY26.