What Do Dr Agarwal’s Q2 Results Reveal About Its Profit Growth Momentum?
About the Company
Dr Agarwal’s Eye Hospital is one of India’s largest integrated eye care chains, operating across multiple states and international markets. The company provides a comprehensive range of ophthalmic services and has maintained steady growth in revenue and margins through clinical expansion, operational efficiency, and brand trust.
Q2FY26 Financial Performance
| Metric | Q2FY26 | YoY Change | QoQ Change |
|---|---|---|---|
| Consolidated Net Profit | ₹29.6 Cr | ▲ 79% | ▼ 1% |
| Revenue | ₹498 Cr | ▲ 20% | ▲ 2% |
| EBITDA | ₹136 Cr | ▲ 27% | ▲ 7% |
| EBITDA Margin | 27.3% | 25.67% | 26.23% |
Dr Agarwal’s delivered robust YoY performance, reflecting operational efficiency and improved patient footfalls. However, slight sequential softness in profit indicates near-term margin stabilization due to clinic expansion costs.
Peer Comparison and Valuation Metrics
| Company | P/E Ratio | ROE (%) | EBITDA Margin (%) |
|---|---|---|---|
| Dr Agarwal’s | 38.5x | 17.4% | 27.3% |
| Apollo Hospitals | 44.1x | 14.8% | 22.5% |
| Narayana Hrudayalaya | 41.7x | 16.1% | 24.9% |
Valuation remains reasonable compared to leading peers, supported by stronger return metrics and superior EBITDA margins, making Dr Agarwal’s an attractive niche healthcare play.
SWOT Analysis
| Strengths | Weaknesses |
|---|---|
| Strong brand presence in ophthalmology; efficient management and expanding clinic network. | Moderate revenue dependency on few states; higher capex in near-term for expansion. |
| Opportunities | Threats |
| Rising demand for eye care in Tier-II & Tier-III cities; potential for franchise model scalability. | Intensifying competition and margin pressure from regional hospitals. |
Investment View
Dr Agarwal’s has consistently delivered operational excellence with strong profit growth and rising margins. The stock holds potential for long-term investors focusing on the healthcare theme. Near-term gains may be moderate as the company reinvests in network expansion.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes that Dr Agarwal’s strong Q2 growth demonstrates a balance between profitability and reinvestment. The healthcare expansion story remains intact with room for valuation re-rating over the long term.
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Related Queries on Dr Agarwal’s Profit Growth and Margin Outlook
- How Does Dr Agarwal’s Performance Compare to Other Healthcare Chains?
- What Are the Long-Term Growth Drivers for Dr Agarwal’s?
- Should Investors Hold Dr Agarwal’s for Sustainable Profit Growth?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
