Dr. Agarwal's Strong Vision for Future Growth and Profitability

Ashwin Thakker

— 2 min read

Key Facts on Outlook:

  • Targeting 42 new facilities across India in FY26 (23 South, 9 West, 5 North, 5 East).
  • Expect consistent improvement in PAT (Profit After Tax) margins over the next 2-3 years.
  • Return on Capital Employed (ROCE) projected to increase by 1-1.5% in FY26 to approximately 17-17.5% on a consolidated basis.
  • FY26 Capital Expenditure (Capex) remains steady at INR 310 crores.
  • New Delhi flagship facility expected to be fully operational by Q4 FY26.

Dr. Agarwal's Health Care Limited delivered record-breaking Q1 FY26 results, with total income crossing INR 500 crores and PAT surging over 100% year-on-year. This strong performance sets the stage for an ambitious forward-looking strategy focused on network expansion, enhanced profitability, and clinical excellence across its eye care services. The company remains committed to its growth trajectory.

Expanding Reach and Enhancing Value

Dr. Agarwal's is set to significantly expand its footprint, targeting the launch of

"another 42 new facilities"

across India in the next three quarters of FY26. This expansion includes 23 centers in the South, 9 in the West, and 5 each in the North and East, building on its existing 249-facility network. This organic growth, alongside strategic acquisitions, is key to boosting patient volumes. The company also emphasizes premiumization, with yield per patient for cataract surgeries increasing to approximately INR 40,000, driven by

"moving towards high-end lenses."

This strategy combines volume growth from new centers with value enhancement from specialized procedures, ensuring robust revenue expansion. The successful debut of its state-of-the-art Delhi facility marks a strategic step into North India, with plans for further expansion in the Delhi NCR region.

Sustained Profitability and Financial Strengthening

The company projects a

"consistent improvement in your PAT margins over the next 2 to 3 years,"

building on the Q1 FY26 PAT margin expansion to 7.6%. This optimism is underpinned by strategic cost efficiencies and the anticipated margin accretion from its new flagship Chennai facility, which will transition to a company-owned building, reducing rental outflow. Dr. Agarwal's also expects its Return on Capital Employed (ROCE) to increase by

"about 1% to 1.5% increase"

in FY26, reaching approximately 17-17.5% on a consolidated basis. With a steady capex of INR 310 crores for FY26, the company is investing in growth while prudently managing its financial health, further reinforced by significant loan repayments from IPO proceeds.

Dr. Agarwal's Health Care Limited outlines a clear path for sustained growth, anchored by aggressive facility expansion and a focus on high-value surgical procedures. The company's commitment to improving profitability and ROCE, coupled with strategic market penetration, positions it for continued financial strength. Investors can anticipate steady progress in network reach and enhanced returns as the company executes its well-defined strategy.

Read more