Dr. Agarwal's Eye Hospital Limited (DAEHL) has taken a significant step towards consolidating its operations with its parent company, Dr. Agarwal's Health Care Limited (AHCL). The Board of Directors of DAEHL has approved a merger scheme and a preferential share allotment, which are set to reshape the company's structure and ownership.

Merger Scheme Details

The approved scheme of amalgamation involves the merger of DAEHL into AHCL through absorption. Under this arrangement, AHCL will issue 23 equity shares for every 2 shares held by DAEHL shareholders, excluding AHCL itself. This merger is subject to various regulatory approvals, including those from stock exchanges, the Securities and Exchange Board of India (SEBI), shareholders, creditors, and the National Company Law Tribunal.

Preferential Share Allotment

In addition to the merger, DAEHL's Board has approved the issuance of 1,32,827 equity shares to AHCL through a preferential allotment. These shares, with a face value of ₹10 each, will be issued at a price of ₹5,270 per share. This move is expected to increase AHCL's stake in DAEHL from 71.90% to 72.67%.

Financial Snapshot

To provide context on the scale of this merger, here's a brief financial overview of both companies:

*Excluding non-controlling interest of ₹60.23 Crores

Rationale and Expected Benefits

The merger aims to achieve several strategic objectives:

1. Operational and Financial Efficiencies: Integration of operations is expected to lead to more efficient management and economies of scale.
2. Integrated Capital Allocation: A unified capital structure should allow for more efficient allocation of resources and strategic investments.
3. Simplified Governance: The merger will consolidate administrative functions and streamline the corporate structure.
4. Shareholder Value Creation: The companies anticipate accretion in earnings per share from the first year of implementation, potentially benefiting all stakeholders.

Timeline and Approvals

The merger intention was previously disclosed in AHCL's IPO prospectus when it listed. DAEHL has scheduled its 31st Annual General Meeting for September 24, where these matters will likely be discussed further.

Market Implications

This merger represents a significant consolidation in the eye care hospital business in India. As both DAEHL and AHCL operate in the same sector, the combined entity is poised to leverage their shared expertise and resources more effectively.

The proposed changes are subject to necessary statutory and regulatory approvals. Investors and stakeholders will be watching closely as this transaction progresses through the various stages of approval and implementation.

Dr. Agarwal's Eye Hospital , a leading eye care provider, has announced robust financial results for the first quarter of the fiscal year, showcasing significant growth in both revenue and profitability.

Financial Highlights

The company reported a substantial increase in its net profit for Q1, rising to ₹17.26 crore from ₹14.11 crore in the same period last year, marking an impressive 22.32% year-over-year growth. This strong performance was underpinned by a notable increase in revenue, which climbed to ₹116.92 crore, up from ₹100.02 crore in the corresponding quarter of the previous year.

Detailed Financial Performance

A closer look at the financial results reveals:

Operational Performance

The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) for Q1 FY2026 stood at ₹37.93 crore, indicating strong operational efficiency and profitability.

Management Commentary

Dr. Amar Agarwal, Chairman and Managing Director of Dr. Agarwal's Eye Hospital Limited, commented on the results, stating, "We are pleased to report a strong start to the fiscal year with significant growth in both our top and bottom lines. Our focus on providing high-quality eye care services continues to drive our performance, and we remain committed to expanding our reach and enhancing patient care."

Board Meeting and Auditor's Review

The unaudited financial results for the quarter ended June 30, 2025, were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on August 12, 2025. The results have also been subjected to a limited review by the company's statutory auditors, Deloitte Haskins & Sells.

Future Outlook

While specific forward-looking statements were not provided, the company's strong Q1 performance suggests a positive trajectory for the remainder of the fiscal year. Dr. Agarwal's Eye Hospital continues to focus on its core business of eye care-related sales and services, operating in a single segment.

As the company maintains its growth momentum, investors and stakeholders will be keenly watching for sustained performance in the coming quarters.