Dr Agarwal's Eye Q1 FY27 Results (NSE: DRAGARWQ)
Signal: Margin expansion
The read
Q1FY27 marks a strong inflection: revenue growth accelerated to +22.3% YoY (vs ~20% in FY26) and EBITDA margin expanded 420bps YoY to 31.6% on operating leverage and cost discipline, delivering PAT growth of 35.5%. The only caution is that share dilution from the preferential issue caused EPS growth (31.7%) to modestly lag PAT growth. The amalgamation with the holding company is progressing through NCLT approval – a key catalyst to watch.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹142.97 Cr | 22.3% | 19.1% |
| EBIT | ₹30.96 Cr | 33.5% | |
| Net profit | ₹23.38 Cr | 35.5% | |
| EPS | ₹48.38 | 31.7% | |
| EBIT margin | 21.6% |
P&L walk
Standalone-only filer – no consolidated statement. Revenue growth accelerated on higher surgical volumes and retail consumables; EBITDA margin expanded sharply on operating leverage (employee cost + D&A grew far slower than revenue) and a favorable sales mix.
Segments
Company operates in a single segment: 'Eye Care related sales and services'. No segment disclosures.
Key positives
- Revenue increased 22.3% YoY to ₹142.97 Cr, the highest quarterly revenue on record.
- EBITDA grew 41.0% YoY to ₹45.22 Cr, with margin expansion of 420bps to 31.6% – the highest in at least 5 quarters.
- Employee cost grew only 14.7% YoY, well below revenue growth – clear operating leverage.
- Effective tax rate stable at ~24.5%, supporting PAT growth of 35.5%.
- Other income more than doubled to ₹1.96 Cr (from ₹0.80 Cr YoY), adding 0.5% to PAT.
Key concerns
- Finance costs rose 30% YoY to ₹2.77 Cr; debt servicing may increase if the company continues to leverage.
- EPS growth (31.7%) lags PAT growth (35.5%) due to share dilution from preferential allotment – future dilution risk remains if further equity is raised.
- No balance sheet or cash flow data attached – cannot assess working capital or capex cycle from this quarterly release.
Research and educational content only. Not investment advice.