Summary
Dr. Agarwal’s Health Care Limited - Q3 FY26 Earnings Call Summary Wednesday, February 04, 2026, 11:00 AM
Event Participants
Executives 6 Dr. Adil Agarwal (CEO), Dr. Ashar Agarwal (CBO), Rahul Agarwal (COO), Dr. Vandana Jain (CSO), Yashwanth Venkat (CFO), Aashna Dharia (Head, IR)
Analysts 7 Amar Ahil, Ananya Khanna, Binay Singh, Dishant Jain, Kartick Bane, Nikhil, Sucrit D. Patil
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income (9M FY26) | ₹1,548 crores | +20.8% YoY; driven by network expansion and surgery volumes |
| Revenue from Ops (Q3 FY26) | ₹530 crores | +23% YoY; balanced 13% contribution from volume and value growth |
| IndAS EBITDA (Q3 FY26) | ₹155 crores | +21.3% YoY; stable margins despite unseasonal rains and festive impact |
| EBITDA Margin (Q3 FY26) | 28.4% | -40 bps YoY; maintained through operational efficiency despite aggressive expansion |
| Profit After Tax (Q3 FY26) | ₹44 crores | +55% YoY; margin expanded +171 bps to 8.1% |
| Total Surgeries (9M FY26) | 2,38,283 count | +11.6% YoY; cataract remains largest contributor at 72.7% |
| Patient Walk-ins (Daily) | 10,000 count | +25% YoY; increased from 8,000 in previous fiscal year |
| Capex (9M FY26) | ₹275 crores | Part of the ₹310 crore commitment for the full financial year |
Geographic & Segment Commentary
- South Region: Largest contributor at 63% of group revenue (₹950 crores for 9M), representing 22.4% YoY growth. The network comprises 172 facilities with 12 new additions this year across Tamil Nadu, Karnataka, Andhra, and Kerala.
- West Region: Contributes 16% of revenue (₹244 crores for 9M), growing 18.4% YoY. Management is focused on deepening presence in Maharashtra (46 facilities total) and scaling new centers in Gujarat (Surat, Ahmedabad, Vadodara).
- North Region: Contributes 8.3% of revenue (₹126 crores for 9M), up 19.7% YoY. Operations in Delhi NCR have shown strong traction, with 24 total facilities and recent launches in Gurgaon, Preet Vihar, and Rajouri Garden.
Company-Specific & Strategic Commentary
- Premiumization & Robotic Surgeries: High-end cataract surgeries grew 43.5% YoY, with robotic Femto cataract procedures rising 83% to 4,400 units. Robotic systems are now live in Velachery, Delhi, Gurgaon, and Vashi.
- Network Expansion: The company added 38 new facilities in 9M FY26 (23 surgical, 15 primary). Plans are in place to add 16 more in Q4, targeting an annual network growth of 20%.
- Clinical Excellence: Clinicians contributed to over 340 publications; 50 doctors underwent advanced specialty training this quarter to maintain technical leadership.
- Structural Merger: Filed for NOC from stock exchanges for the group merger; NCLT meetings for shareholders are expected 2-3 months after NOC receipt, with completion targeted by Q3/Q4 FY27.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Network Growth | 55-60 facilities per year | Strategy to increase network size by ~20% annually through organic expansion |
| Facility Breakeven | 12 months (Blended) | Core markets breakeven in 6-7 months; new regions (Delhi/North) take 15-18 months |
| FY26 Outlook | On track for annual guidance | Sustained operational efficiency across the first three quarters supports original fiscal targets |
Risks & Constraints
| Risk | Context |
|---|---|
| Regional Concentration | South India contributes 63% of revenue; underperformance or local macro disruptions there could significantly impact Group financials. |
| Expansion Gestation | New market entries like Delhi and Ethiopia involve higher pre-operating losses and longer breakeven periods (15-18 months). |
| Labor Costs | Doctor and employee costs rose 140 bps to 33.4% of revenue; management is monitoring new Labor Codes for potential incremental impacts. |
Q&A Highlights
Surgery Trends
- Question: Why is cataract growth slowing while refractive is rising? (Binay Singh)
- Answer: Corrected that cataract value grew strongly at 18.5% (13.7% volume), while refractive has been slower due to broader industry trends this year. (Rahul Agarwal)
New Market Profitability
- Question: What are the breakeven expectations for the new Delhi facilities? (Ananya Khanna)
- Answer: Newer regions typically take 15 to 18 months to breakeven compared to 6-7 months in core South markets. (Rahul Agarwal)
Financial Performance Drivers
- Question: How do you maintain 28%+ margins despite adding 37 centers in nine months? (Sucrit D. Patil)
- Answer: Profitability is protected by high same-store sales growth (13.5%) and faster ramp-ups of new centers. (Dr. Adil Agarwal)
Subsidiary Performance (Thind Eye Hospital)
- Question: Why are Thind margins higher than other subsidiaries? (Nikhil)
- Answer: Thind operates primarily out of a single high-volume facility in Jalandhar with minimal regional/corporate overhead, leading to higher margins. (Rahul Agarwal)
Unit Economics
- Question: What is the Capex requirement for the different facility types? (Dishant Jain)
- Answer: Surgical secondary centers cost ₹5.5-6 crores, tertiary centers ₹11-12 crores, and primary centers ~₹35 lakhs. (Dr. Adil Agarwal)
Key Takeaway
Dr. Agarwal’s delivered a resilient Q3 FY26, with revenue from operations growing 23% YoY to ₹530 crores and PAT surging 55% to ₹44 crores. The performance was characterized by a healthy 13% same-store sales growth and a significant shift toward premiumization, with robotic cataract surgeries increasing 83% YoY. Strategically, the company is executing an aggressive “20% annual footprint growth” plan, having added 38 facilities in the first nine months, while successfully maintaining EBITDA margins at 28.4%. Management remains focused on deepening penetration in the North and West regions, particularly Delhi NCR and Maharashtra. Looking ahead, the company is well-positioned to meet its FY26 guidance, supported by the integration of robotic surgical systems and the planned merger of group entities by FY27. Operations are expected to remain robust as newer facilities reach maturity.
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