Revenue rose 31.44% YoY, but operating margin fell again
Expenses grew 32.30% YoY, while a lower 28.84% tax rate helped net profit rise 55.80%.
Filed 05 Nov 2026, 20:49 IST · after market close · Dr Agarwals Health Care Ltd (AGARWALEYE)
Key takeaways
- Revenue grew 31.44% YoY, but operating margin fell 0.48 percentage points as expenses grew faster.
- Net profit rose 55.80% YoY, helped by the tax rate falling to 28.84% from 32.00%.
- Operating margin declined to 26.82% from 28.62% in Q4FY26, its second consecutive quarterly fall.
Price around the results
Growth remained strong, but costs outpaced revenue
In consolidated Q2FY27, revenue grew 31.44% YoY and 6.75% QoQ, while operating profit increased 29.14% YoY and 3.17% QoQ. Expenses grew faster than revenue in both comparisons, rising 32.30% YoY and 8.12% QoQ, which reduced operating margin by 0.48 percentage points YoY and 0.93 percentage points QoQ. The company told investors that a Q2 FY27 acquisition added two surgical facilities in Delhi NCR.
Margin has declined for two straight quarters
Operating margin fell from 28.62% in Q4FY26 to 27.75% in Q1FY27 and 26.82% in Q2FY27. Depreciation also increased 21.82% YoY and 5.57% QoQ, while interest was broadly stable YoY and fell 1.58% QoQ. The margin remained above the 21.66% median for the 81 Healthcare peers that had reported the same quarter, by 5.16 percentage points.
Lower tax rate supported reported profit growth
Net profit grew faster than revenue at 55.80% YoY, as the tax rate fell 3.16 percentage points to 28.84%; sequentially, the tax rate rose 2.06 percentage points and net profit increased 3.33%. Other income accounted for 12.20% of pre-tax profit, so part of the earnings outcome came from non-operating income. Management said it plans to expand to 65 total facilities in FY27E, including 55 surgical facilities, and plans a facility in Zambia and entry into Ethiopia alongside its India expansion.
No market reaction yet; past moves have been mixed
The consolidated results were filed after market close, so there was no immediate market reaction in the reported period. After the last seven results, the stock rose three times and fell four times, with a median absolute move of 1.64%. The recent history therefore points to a usually modest and mixed response rather than a consistent direction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹655 cr | ₹614 cr | +6.75% | +31.44% |
| Other income | ₹10 cr | ₹6 cr | +52.11% | +22.95% |
| Expenses | ₹480 cr | ₹444 cr | +8.12% | +32.30% |
| Operating profit | ₹176 cr | ₹170 cr | +3.17% | +29.14% |
| Operating margin (%) | 26.82% | 27.75% | — | — |
| Interest | ₹23 cr | ₹23 cr | -1.58% | +2.00% |
| Depreciation | ₹83 cr | ₹78 cr | +5.57% | +21.82% |
| Profit before tax | ₹80 cr | ₹75 cr | +6.32% | +48.88% |
| Tax | ₹23 cr | ₹20 cr | +14.51% | +34.19% |
| Net profit | ₹57 cr | ₹55 cr | +3.33% | +55.80% |
| EPS (₹) | ₹1.65 | ₹1.43 | +15.38% | +75.53% |
Operating margin of 26.82% compares with a Healthcare sector median of 21.66% across 81 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company plans to add a facility in Zambia and enter Ethiopia alongside its expansion in India.
Expansion
- The company plans 65 total facilities in FY27E, including 55 surgical facilities.
- An acquisition in Q2 FY27 added two surgical facilities in Delhi NCR.
- The company added more surgical facilities in the first half of FY27 than during all of FY26.
What to watch
- Whether operating margin stops declining from 28.62% in Q4FY26 to 26.82% in Q2FY27.
- Whether expense growth moves below the latest 32.30% YoY revenue-cost gap.
- Progress against management's stated 65 total facilities and 55 surgical facilities for FY27E.