Dr. Agarwal's Eye Hospital Limited has received a crucial regulatory approval from BSE Limited for its proposed amalgamation scheme with Dr. Agarwal's Health Care Limited. The company announced receipt of an observation letter conveying "no adverse observations" from BSE Limited on February 17, 2026, marking a significant milestone in the merger process.

BSE Approval Details

The BSE approval came with comprehensive compliance requirements that must be fulfilled throughout the amalgamation process:

The scheme involves the amalgamation of Dr. Agarwal's Eye Hospital Limited as the transferor company with Dr. Agarwal's Health Care Limited as the transferee company, along with their respective shareholders and creditors under Sections 230 to 232 of the Companies Act, 2013.

SEBI Compliance Requirements

SEBI has outlined 17 specific compliance conditions that must be met, including adherence to Regulation 11 of SEBI LODR Regulations, 2015. Key requirements include:

• Disclosure of all ongoing adjudication and recovery proceedings against the company, promoters, and directors
• Ensuring financial statements used are not older than 6 months from the date of exchange approval
• Mandatory demat form for proposed equity shares
• Comprehensive disclosure requirements covering rationale, synergies, and impact analysis

Detailed Disclosure Mandates

The regulatory framework requires extensive disclosures to enable informed shareholder decision-making:

Next Steps and Timeline

The observation letter remains valid for six months from February 17, 2026, within which the scheme must be submitted to the National Company Law Tribunal. The scheme continues to require necessary statutory and regulatory approvals, including approvals from respective shareholders and creditors of both companies and the jurisdictional NCLT.

The company has made the observation letter accessible on its website at the designated scheme section, ensuring transparency for all stakeholders. BSE Limited has reserved rights to withdraw its approval if submitted information is found incomplete, incorrect, or misleading at any stage of the process.

Dr. Agarwal's Health Care Limited has delivered exceptional financial performance for Q3FY26, with consolidated net profit surging 51% year-on-year to ₹337m compared to ₹223m in the corresponding quarter last year. The healthcare services company reported consolidated revenue of ₹5.3b versus ₹4.3b in the same period last year, marking robust operational growth.

Strong Quarterly Financial Performance

The company's Q3FY26 results demonstrate strong operational efficiency and profitability improvements. EBITDA reached ₹1.4b compared to ₹1.1b in the same quarter last year, with EBITDA margins expanding to 27.17% from 26.5% year-on-year, indicating improved operational leverage and cost management.

Nine Months Performance Highlights

For the nine months ended December 31, 2025, the company demonstrated exceptional growth momentum. Total income soared by 20.8% year-on-year to INR 1,548 Cr, while revenue from operations grew by 21.2% to INR 1,516 Cr. The company's profitability showed remarkable improvement with profit after tax growing by 74.3% to INR 118 Cr.

Operational Expansion and Network Growth

As of December 31, 2025, the company's network expanded to 272 facilities, with 14 new centers added during Q3FY26 comprising 9 secondary and 5 primary facilities. During the nine months period, 38 new centers were added including 1 tertiary, 22 secondary and 15 primary facilities. The company performed 81,002 surgeries in Q3FY26, showing an 11.2% year-on-year growth, while nine months surgeries reached 238,283, representing an 11.6% increase.

Board Meeting Decisions and Corporate Actions

The Board of Directors met on February 03, 2026, to approve several significant decisions beyond the quarterly results. The board approved the incorporation of a wholly owned subsidiary in Ethiopia through Orbit Healthcare Services (Mauritius) Limited, with an investment of 200,000 USD. Additionally, the board approved shifting the registered office from Buhari Towers to 6th Floor, Menon Eternity, 1st Main Road, Austin Nagar, Alwarpet, Chennai 600 018, effective February 05, 2026.

Management Commentary

Dr. Adil Agarwal, CEO, commented on the strong performance: "The Company delivered a strong performance in Q3 FY26, marked by robust growth across revenues and profitability, reflecting sustained execution momentum. Revenue from Operations grew by 23.0% YoY to ₹530 Cr, driven by healthy patient volumes, strong traction across mature centres, and improving contribution from newer facilities."

The company remains focused on accelerating organic growth through aggressive greenfield expansion while maintaining high standards of patient safety and clinical quality. With 900+ doctors serving over 22 lakh patients during the nine months period, the company continues to strengthen its position as India's largest eye care service chain by revenue.