Dr Agarwals Health Care Ltd Q1 FY27 Earnings Analysis

- Growth expected to sustain at a similar pace as FY '26, driven by deeper penetration of existing micro markets and expansion into new geographies. (Page 7, 8) - Accelerated adoption of innovative surgical procedures and advanced technologies to enhance service offerings. (Page 7, 8) - FY '27 facility addition plan includes commissioning 60 new facilities (40 surgical centers, 20 clinics), mostly organic growth. (Page 17, 18) - North region (including Delhi NCR) expected to see highest ever addition of 16 facilities, with rapid build-out in micro markets including Noida, Ghaziabad, and key towns in Haryana. (Page 7) - Mumbai region to be a key focus area for aggressive scaling in FY '27 due to strong traction of recent facilities. (Page 6) - Refractive surgeries expected to grow long term, supported by potential insurance partnerships and premiumization of procedures. (Page 18) - Overall volume growth in FY '26 was ~7%, value (realization) growth also ~7%, indicating balanced growth. (Page 16, 14) - OPD growth, premiumization, and price hikes expected to contribute to sustained revenue growth. (Page 16)

- Expectation of sustaining growth pace similar to FY '26, underpinned by: - Deeper penetration in existing micro markets - Expansion into new geographies including strong focus on North India (Delhi, Gurgaon) - Accelerated adoption of innovative surgical procedures and advanced technologies - EBITDA margins expected to remain stable despite aggressive greenfield expansion, reflecting operating leverage - Mature facilities showing sustainable growth with 14% same-store sales growth (SSSG) split evenly between volume and value (7% each), with continued premiumization and price hikes contributing to margin improvement - New branches currently incurring losses (~INR 30 crores in FY '26) but losses per branch expected to reduce from FY '27 onward as brand presence strengthens - Continuous reduction in finance costs due to loan repayments and lower interest on deferred acquisition payments - Overall, profitability expected to improve driven by operational efficiencies, network scale, and premium offerings supporting EPS growth.

- For FY '27, Dr. Agarwal's Healthcare Limited plans a total capex of approximately INR 380 to 400 crores. - This includes the addition of 60 new facilities: 40 surgical centers and 20 clinics. - Capex also covers the establishment of a new CMS (Centralized Medical Services) facility. - The new CMS facility expected to commission by October 1, 2026, pending approvals. - Acquisition-related payments for FY '27 are expected to be around INR 60-65 crores. - The company focuses on organic growth but remains open to partnerships if aligned strategically and financially. - Additional capex will involve costs related to real estate acquisition and compliance for new centers. - The corporate office rental expense is ongoing and part of operational investment.

- There is no explicit mention of any current or planned new fundraising through debt or equity in the excerpts. - The company has been systematically repaying loans using IPO proceeds (INR 195 crores repaid across FY '25 and H1 FY '26). - Finance costs have improved due to repayments and reduced interest on deferred acquisition-related payments. - CapEx plans for FY '27 include INR 380-400 crores for new facilities and CMS facility, funded presumably through internal cash flows and existing resources. - Acquisition-related payments scheduled for INR 60-65 crores in FY '27. - No mention of any new debt or equity issuance or capital raising plans in the near term.

- For acquisition-related payments pending post FY '26: - FY '27 expected payout: ~INR 65 crores - FY '28, '29, and small payments in '30 combined: ~INR 60-66 crores - No specific mention of a traditional "order book" as the company operates in healthcare services, not manufacturing. - The company is focused on organic growth with plans to open 40 surgical centers and 20 clinics in FY '27. - They continue to explore partnerships if aligned and reasonably priced, but these are not included in the current pipeline. - Project completion update: New facility in Chennai targeted for launch by October 1, 2026. - Merger-related approvals progressing, with shareholders' meetings set for July 2, 2026, and final merger completion expected by Q3 FY '27 (around end of the calendar year).