Agarwal's Health Care Strategic Expansion Robust Future

Ashwin Thakker

— 2 min read

Key Facts on Outlook:

  • Q1 FY26 Total Income: INR 501 crores (up 22.3% YoY).
  • Q1 FY26 PAT: INR 38 crores (more than doubled YoY), PAT margin 7.6%.
  • EBITDA Margin: 28.2% (up 140 basis points YoY).
  • Planned Expansion: Targeting 42 new facilities in next 3 quarters of FY26.
  • FY26 Capex: Confirmed at INR 310 crores.
  • ROCE Outlook: Expected 1-1.5% increase for FY26 (from ~16% consol. March ’25).
  • Long-term Guidance: Consistent PAT margin improvement and ROCE growth over 2-3 years.

Dr. Agarwal's Health Care kicked off FY26 with remarkable Q1 performance, achieving INR 501 crores in total income, a 22.3% year-on-year jump. The company's future strategy focuses on aggressive network expansion and sustained margin growth, signaling a robust outlook for the coming quarters and years.

Strategic Network Expansion

Dr. Agarwal's Health Care is set for significant geographical expansion in FY26. Following the commissioning of 13 new greenfield facilities in Q1 FY26, the company plans to launch an additional 42 new facilities across India over the next three quarters. These include 23 centers in the South, 9 in the West, and 5 each in the North and East. This aggressive build-out is supported by a confirmed capital expenditure of INR 310 crores for the fiscal year. The strategic entry into the Delhi market with a state-of-the-art facility is performing positively, paving the way for further expansion in the Delhi NCR region, including Gurgaon.

Enhancing Profitability and Operational Efficiency

The company projects consistent improvement in profitability metrics. Dr. Agarwal's Health Care expects PAT margins to improve steadily over the next 2-3 years, translating into a better Return on Capital Employed (ROCE) profile. For the current fiscal year, ROCE is anticipated to increase by 1% to 1.5% from its consolidated March 2025 level of approximately 16%. This financial growth is supported by a focus on high-end surgical procedures. For instance, Femto cataract surgeries grew 72% year-on-year, contributing to higher revenue per patient. The company also anticipates growth in refractive surgeries to align with overall surgical growth, driven by increasing myopia incidence.

Dr. Agarwal's Health Care's Q1 FY26 results underscore a clear strategy: expand reach while enhancing financial returns. With robust facility expansion plans, disciplined capital allocation, and a focus on high-value surgical segments, the company is poised for sustained growth. The management's forward commentary highlights confidence in long-term margin and ROCE improvement, building on strong organic growth momentum across key markets.

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