Revenue rose 25.97% YoY, but sequential margin eased
Costs grew faster than revenue sequentially, while a lower tax rate lifted net profit despite a 1.93% fall in pre-tax profit.
Filed 04 Aug 2026, 17:20 IST · after market close · Dr Agarwals Health Care Ltd (AGARWALEYE)
Key takeaways
- Consolidated revenue grew +25.97% YoY, while operating margin expanded 1.52 percentage points to 27.75%.
- Net profit rose +10.13% QoQ even as pre-tax profit fell -1.93%, helped by an 8.02 percentage-point reduction in the tax rate.
- Management said the company added 13 surgical facilities in Q1FY27, alongside 16.3% same-store sales growth at older facilities.
Price around the results
Facility additions supported revenue growth
This was consolidated revenue growth of +25.97% YoY and +8.85% QoQ, with operating profit rising faster than revenue on a year-on-year basis. Management said the company added 13 surgical facilities in Q1FY27, its highest-ever quarterly addition. The presentation also reported 16.3% same-store sales growth for facilities set up or acquired up to FY23.
Sequential cost growth pulled margin lower
Expenses grew +10.18% QoQ against revenue growth of +8.85%, so operating margin narrowed 0.87 percentage points to 27.75%. Year on year, revenue growth of +25.97% outpaced expense growth of +23.38%, widening margin by 1.52 percentage points. The margin had recovered from 26.23% in Q1FY26 to 28.62% in Q4FY26 before easing in Q1FY27.
Lower tax rate supported profit conversion
Net profit increased +10.13% QoQ even though pre-tax profit declined -1.93%, as the tax rate fell 8.02 percentage points to 26.78%. Other income contributed 8.53% of pre-tax profit and fell -53.92% QoQ, so the quarter's profit increase was not driven by a rise in that line. Year on year, the tax rate was also lower by 2.21 percentage points.
Margins remained above the healthcare peer median
The company's 27.75% operating margin was 4.8 percentage points above the 22.95% median for the 33 healthcare peers that had reported the same quarter. The results were filed after market close, so there is no current market reaction to assess. Across the six recent result sessions, the stock fell four times and rose twice, with a median absolute move of 1.64%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹614 cr | ₹564 cr | +8.85% | +25.97% |
| Other income | ₹6 cr | ₹14 cr | -53.92% | -52.13% |
| Expenses | ₹444 cr | ₹403 cr | +10.18% | +23.38% |
| Operating profit | ₹170 cr | ₹161 cr | +5.54% | +33.28% |
| Operating margin (%) | 27.75% | 28.62% | — | — |
| Interest | ₹23 cr | ₹22 cr | +5.84% | -5.38% |
| Depreciation | ₹78 cr | ₹77 cr | +2.13% | +24.40% |
| Profit before tax | ₹75 cr | ₹77 cr | -1.93% | +40.19% |
| Tax | ₹20 cr | ₹27 cr | -24.53% | +29.47% |
| Net profit | ₹55 cr | ₹50 cr | +10.13% | +44.56% |
| EPS (₹) | ₹1.43 | ₹1.25 | +14.40% | +50.53% |
Operating margin of 27.75% compares with a Healthcare sector median of 22.95% across 33 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Same-store sales growth was 16.3% for facilities set up or acquired up to FY23 in Q1 FY27.
Expansion
- The company added 13 surgical facilities in Q1 FY27, its highest-ever quarterly addition.
- Greenfield facilities growth is shown as 5.7x.
- The company has set up 222 facilities since FY22.
- Total facilities grew at a 28.1% CAGR from FY22 to Q1 FY27.
What to watch
- Whether operating margin holds above 27.75% after the sequential 0.87 percentage-point decline.
- Whether same-store sales growth remains near the reported 16.3% at older facilities.
- The pace of additions after management reported 13 new surgical facilities in Q1FY27.