Dr Agarwal’s Q1 revenue rises 26% as broker targets climb

Dr Agarwal’s Health Care reported Q1 FY27 revenue of ₹614 crore and PAT of ₹55 crore, up 26% and 44.6% year on year. Same-store sales grew 16% as the eye-care chain continued centre expansion; Morgan Stanley and Jefferies raised their target prices.

— Source publishedWed, 5 Aug, 2026, 10:51 IST·First seen Wed, 5 Aug, 2026, 10:57 IST·Source The Hindu BusinessLine

What happened

Dr Agarwal’s Health Care posted strong Q1 FY27 growth, with revenue up 26% and PAT up 44.6%, alongside its largest-ever quarterly eye-care-centre expansion.

Key facts

  • Shares rose 5.5% to ₹515.80 after reaching ₹520.90 intraday
  • PAT rose 44.6% YoY to ₹55 crore
  • Revenue from operations rose 26% YoY to ₹614 crore
  • EBITDA rose 25.2% to ₹177 crore
  • EBITDA margin was 28.5%
  • Same-store sales growth was 16%
  • Morgan Stanley target price: ₹576, raised from ₹555
  • Jefferies target price: ₹600, raised from ₹510

Why this matters

The combination of robust same-store growth and expanding centres strengthens Dr Agarwal’s case for selectively adding high-potential eye-care markets, whether through greenfield clinics or acquisitions.

What to watch

  • Same-store sales growth staying at or above the mid-teens for the next two quarters.
  • Revenue per patient, surgery volumes and premium-procedure mix versus pure footfall growth.
  • EBITDA/PAT margin progression as new centres mature and pre-opening costs rise.
  • Net centre additions, new-centre break-even timelines and share of revenue from recently opened locations.
  • Doctor attrition, specialist hiring costs and capacity utilisation at key hubs.
  • Further analyst earnings revisions, target-price changes and valuation relative to other healthcare-service operators.
  • Any evidence of pricing competition or demand softness in elective eye-care procedures.
  • Accelerate centre openings in underpenetrated tier-2 and tier-3 markets while increasing density in established urban clusters.
  • Prioritise high-margin cataract, refractive and premium intraocular-lens procedures to sustain PAT growth ahead of revenue.
  • Use stronger investor sentiment and improved broker targets to support potential capital-raising, acquisition or expansion financing options.
  • Increase doctor recruitment, retention and clinical capacity ahead of new-centre ramp-up, making talent availability a key execution constraint.
  • Competitors in organised eye care may respond with faster expansion, local acquisitions and promotional pricing in high-growth catchments.