Dr. Agarwal's Health Care Limited (AHCL) and Dr. Agarwal's Eye Hospital Limited (AEHL) have announced a significant merger, set to reshape the landscape of eye care services in India. The Boards of Directors of both companies approved the scheme of amalgamation on August 27, subject to necessary regulatory approvals.

Merger Details

Under the approved scheme, AHCL will issue 23 equity shares for every 2 shares held by eligible shareholders of AEHL. This merger will see AEHL being absorbed into AHCL as a going concern, consolidating the operations of these two prominent eye care service providers.

Financial Snapshot

As of March 31, AHCL reported a standalone turnover of ₹1,043.89 crore and a net worth of ₹1,933.64 crore. In comparison, AEHL's standalone figures stood at ₹397.15 crore in turnover and ₹209.61 crore in net worth for the same period.

Strategic Moves

Alongside the merger announcement, AHCL's Board approved the acquisition of additional AEHL shares worth ₹70.00 crore through a preferential issue. This move will increase AHCL's stake in AEHL from 71.90% to 72.67%, further consolidating its position.

Rationale and Benefits

Dr. Adil Agarwal, CEO of Dr. Agarwal's Health Care Limited, emphasized the strategic importance of the merger, stating, "This long-awaited step towards building a simpler and more efficient group structure reflects our commitment to creating significant value for our stakeholders in the long term."

The merger is expected to yield several benefits:

• Operational and financial efficiencies through streamlined functions and agile decision-making
• Unified capital allocation for stronger growth and a more robust balance sheet
• Simplified legal, regulatory, and governance framework
• Enhanced shareholder value, with the transaction expected to be EPS accretive from the first year of implementation

Market Position

AHCL, incorporated in 2010, is India's largest eye care service chain by revenue from operations. The company serves patients across 230 facilities in 14 states and 5 UTs in India, and 19 facilities in 9 countries in Africa. AEHL, established in 1994, operates 63 facilities with a team of over 230 doctors, primarily in Tamil Nadu.

Leadership Changes

In conjunction with the merger announcement, AHCL's Board approved the appointment of Mr. Ankur Nand Thadani as a Non-Executive Director, effective September 24, subject to shareholder approval. Simultaneously, Mr. Ved Prakash Kalanoria will cease to be a Nominee Director on the same date.

Conclusion

This strategic merger between Dr. Agarwal's Health Care Limited and Dr. Agarwal's Eye Hospital Limited marks a significant consolidation in the Indian eye care sector. As the companies move forward with the regulatory approval process, the eye care industry will be watching closely to see how this union reshapes the competitive landscape and enhances service delivery to patients across the country.

Dr. Agarwal's Health Care Limited , a leading eye care services provider, has reported strong financial results for the first quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

• Total income reached INR 501.00 crores, up 22.3% year-over-year
• Revenue from operations rose 20.8% to INR 487.00 crores
• EBITDA grew 28.9% to INR 141.00 crores, with margins improving 140 basis points to 28.2%
• Profit after tax more than doubled to INR 38.00 crores, with margins expanding 315 basis points to 7.6%

Operational Performance

The company served over 7 lakh patients and performed 78,882 surgeries during the quarter, marking a 16% increase year-over-year. Dr. Agarwal's expanded its network with 13 new facilities, including a strategic entry into the Delhi market.

Surgical Advancements

High-end cataract surgeries increased to 25.5% of total cataract procedures, up from 23.3% in the same quarter last year. Notably, robotic cataract surgeries grew by 72% year-on-year, reaching 1,160 procedures.

Expansion and Market Penetration

Dr. Adil Agarwal, CEO of Dr. Agarwal's Health Care Limited, highlighted the company's expansion efforts: "We marked a significant milestone with our strategic entry into the Delhi market by opening a state-of-the-art 3-story tertiary facility spread across 10,000 square feet. This launch is a strategic step in our organic expansion plans in North India."

The company's network now comprises 249 facilities, including 29 hubs and 220 spokes across 14 states and 5 union territories in India, covering 136 cities.

Future Outlook

Dr. Agarwal's Health Care Limited plans to open 42 new facilities in the next three quarters, focusing on strengthening its presence in key markets. The company expects its Return on Capital Employed (ROCE) to increase by 1-1.5% in FY26 from 16% in March 2025.

Market Segment Performance

Conclusion

Dr. Agarwal's Health Care Limited's strong Q1 FY26 performance underscores its robust growth strategy and operational efficiency. With continued expansion plans and focus on high-end procedures, the company is well-positioned for sustained growth in the eye care services sector.