Dr. Agarwal's Health Care reported a robust financial performance for the year ended March 31, 2026, with Profit After Tax (PAT) growing 52.4% year-on-year to INR 168 Crores. The company achieved a significant operational milestone, with Revenue from Operations increasing 21.6% to INR 2,080 Crores, crossing the INR 2,000 Crore mark for the first time. EBITDA for the period rose 22.2% to INR 614 Crores, with margins expanding to 28.9%. Following the announcement, the company has made the audio recording of its analyst and earnings conference call held on May 21, 2026, available on its website.

Annual Financial Performance

The audited consolidated financial results highlight strong growth across key metrics. Total Income for the year stood at INR 2,125 Crores, a 20.9% increase compared to the previous year. The company maintained its operational efficiency, with EBITDA margins improving slightly from 28.6% in FY25 to 28.9% in FY26. Net profit margins also saw a significant rise, reaching 7.9% for the year.

Operational Expansion

During FY26, the company expanded its network significantly, adding 57 new centers to take its total facility count to 288 across 10 countries. This included 30 surgical centers, strengthening clinical capacity. The company performed 323,245 surgeries during the year, reflecting a 14.5% growth in patient volumes. The entry into the Delhi NCR region was a key highlight, with six facilities becoming operational within twelve months.

Q4 Performance Highlights

For the quarter ended March 31, 2026, the company reported a Revenue from Operations of INR 564 Crores, up 22.6% year-on-year. Net profit for the quarter stood at INR 50 Crores, growing 17.4% YoY. EBITDA for Q4 FY26 was INR 174 Crores, with margins at 30.2%. The company added 19 new centers during the quarter alone, comprising 7 secondary and 12 primary facilities.

Dr. Agarwal's Health Care Limited has disclosed the receipt of a Show Cause Notice (SCN) from the Office of the Assistant Commissioner, GST & Central Excise, Nungambakkam, Chennai. The notice, dated May 18, 2026, alleges specific discrepancies regarding the returns and statements filed by the company for the financial year 2023-24.

Details of the Discrepancies

The authorities have cited several issues in the SCN, including a difference in output turnover and short payment of tax under the Reverse Charge Mechanism (RCM). Other allegations involve exempted, nil-rated, or non-GST supplies, an excess claim of Input Tax Credit (ITC), and the claim of ineligible ITC. The notice also points to non-compliance with e-invoicing norms and penalties for late or improper reporting.

Financial Implications

As per the SCN, the company is required to show cause within 30 days of receipt as to why a GST demand of Rs. 20.50 Crores, including interest and penalty, should not be levied. In response to the disclosure, the company management stated that it is currently examining the notice and intends to take appropriate steps, including the submission of a reply within the stipulated time frame.

The company further clarified that it does not envisage any relevant impact on its financials, operations, or other activities as a result of this notice.