Synopsis: Dr. Agarwal’s Health Care continues to strengthen its eye-care franchise through network expansion, rising patient volumes, premium procedures, and strong execution, positioning the company for sustained growth and improving profitability.
The shares of this small cap company majorly engaged in delivering exceptional eye care to individuals across the globe were in focus after the brokerage sees 37 percent upside potential
With the market capitalization of Rs. 14,053 Crores, the shares of Dr Agarwals Health Care Ltd were trading at around Rs.443 per share which is 22 percent discount from its 52 week high of Rs. 568 per share and is trading at a P/E of 106 whereas industry P/E of 45.6
Brokerage View
Motilal Oswal has reiterated its BUY rating on Dr. Agarwal’s Health Care with a target price of ₹610, implying an upside potential of around 37% from the current market price of ₹443. The brokerage expects growth to be supported by continued facility additions, increasing adoption of premium surgical procedures, expansion of the specialist doctor base, faster ramp-up of new centres, and strong brand positioning across key markets. It forecasts revenue, EBITDA and PAT CAGR of 22%, 23% and 40%, respectively, over FY26-28
Expansion Strategy Continues to Drive Growth
Dr. Agarwal’s continued focus on expanding its footprint remains a key growth pillar. The company operated 288 facilities at the end of FY26 after adding 57 new centres during the year and plans to add another 60 facilities in FY27. This expansion strategy is helping the company increase patient reach while strengthening its presence across existing and new markets. The business served nearly 3 million patients during FY26, reflecting a 24% year-on-year increase, highlighting strong demand for its services.
Strong Surgical Volumes and Premiumisation Trend
The company performed 323,000 surgeries in FY26, registering a 14.5% year-on-year growth. A major highlight has been the rising contribution of premium procedures, particularly Femto-assisted cataract surgeries, which grew 87% year-on-year. This trend supported an increase in average revenue per surgery to ₹42,900, up 8.5% from the previous year. The growing preference for advanced eye-care treatments is helping improve revenue quality while supporting profitability.
Healthy Financial Performance and Margins
The company delivered a strong operating performance in FY26 with 22% revenue growth, 26% EBITDA growth, and 60% growth in profit after tax. EBITDA margins remained healthy at around 26–27%, reflecting the benefits of scale and operating efficiency. The company also demonstrated strong cash generation, with operating cash flow equivalent to nearly 91% of EBITDA, indicating the quality and sustainability of earnings.
Established Leadership with Scalable Operations
Dr. Agarwal’s extensive network is supported by a team of 968 doctors, enabling the company to cater to a large and growing patient base. The business continues to benefit from its hub-and-spoke operating model, which allows efficient deployment of specialists and infrastructure across locations. South India remains its strongest market, contributing 61% of revenue and 64% of surgeries, while expansion into other regions provides additional growth opportunities.
Outlook Remains Encouraging
The company’s outlook is supported by multiple growth drivers, including continued centre additions, rising surgical volumes, increasing adoption of premium procedures, and healthy same-store sales growth of 14%. With a strong balance between expansion and profitability, Dr. Agarwal’s Health Care appears well positioned to sustain growth momentum over the next few years while strengthening its leadership in the organized eye-care market.
Conclusion
Dr. Agarwal’s Health Care continues to strengthen its position in the organized eye-care market through a balanced strategy of expansion, premium service offerings, and operational excellence. The company is benefiting from growing patient demand, increasing acceptance of advanced surgical procedures, and strong execution across its network. Its scalable business model, experienced medical team, and focus on improving treatment quality support long-term growth. Continued geographic expansion, healthy profitability, and strong cash generation provide confidence in the company’s ability to sustain growth momentum and enhance shareholder value over the coming years.
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