Dr Agarwals Eye Hospital Ltd Management Discussions

Company Overview

About Dr Agarwals

Founded in 1957, and registered in 1994 as a Company, Dr Agarwals Eye Hospital is a leading chain of eye hospitals with predominant presence in Tamil Nadu. Under the able leadership of Dr Amar Agarwal, the company has been a pioneer and leader in the Ophthalmology market with an established market position and healthy brand recall in the eye care segment. It offers comprehensive services in the eye-care segment including Cataract, Glaucoma, Laser Correction, Cornea and Refractive, Retina, and Squint among others.

Indian Healthcare Industry

Indian Healthcare Delivery Market Poised for Robust Growth in the Medium Term

Indias healthcare delivery industry is projected to grow from 7.0 lakh crore in FY2025 to 11.2-12.2 lakh crore by FY2030, at a CAGR of 10-12%. Growth is driven by strong fundamentals, rising awareness and affordability, and increased government focus. Structural factors such as lifestyle-related ailments, medical tourism, higher incomes and changing demographics further fuel demand.

Segmentation of the Indian Healthcare Delivery Market by Single Specialty and Multi specialty Hospitals

Indias healthcare delivery market comprises singlespecialty and multi-specialty hospitals. Multi-specialty accounts for 55-65% of the private and trust-based market, while the share of single-specialty is ~35-45%. In FY2026, the market of single-speciality health care hospitals was valued at 2.6-3.5 lakh crore.

Multi-Specialty Hospitals:

• Offer a wide range of medical specialties under one roof, enabling integrated and holistic care

• Designed to manage complex, multi-system conditions and comorbidities efficiently

• Benefit from economies of scalein infrastructure, diagnostics, and staffing

• Attract a larger, more diverse patient base due to breadth of services

• Enable internal referrals and cross-specialty collaboration, improving patient retention

• Support round-the-clock emergency and critical care services

Growth drivers for multi-hospitals facilities include coordinated care, advanced infrastructure, and strong referral networks, enabling long-term, sustainable expansion.

Single Specialty Hospitals:

• Focus exclusively on a specific illness or type of ailment

• Infrastructure, operations and budgets are tailored to the needs of that condition

• Require lower capital expenditure (capex), making them capex-light, scalable and replicable

• Offer specialised expertise and superior clinical protocols for high-quality outcomes

• Invest in dedicated medical equipment not typically found in general hospitals

• Preferred by patients for focused care and consistent quality

• More agility in decision-making with fewer management complexities

• Better positioned to adopt advanced technologies

Growth drivers for single specialty hospitals include a patient-centric model, clinical focus, cost efficiency, and scalability through standardised protocols and streamlined operations. Strong brand equity, network expansion, and investment in advanced technology further enhance their ability to deliver consistent, high-quality care.

*Assessment of the healthcare delivery sector in India with focus on eye care specialty dated May 2026 by CRISIL Market Intelligence & Analytics, a division of CRISIL Limited

A. Indian Eyecare Industry

Large Addressable Eye Care Market with Huge Untapped Potential

a. Indias eye care industry is projected to reach a market size of 74,000-84,000 crore by FY2030, growing at a CAGR of 12-14% from FY2025. While eye care currently represents 7% of Indian healthcare delivery market, it remains one of the fastest-growing segments due to rising demand and significant untapped potential.

According to IAPB, India has the worlds highest number of visually impaired people, with nearly one in every five affected. The high prevalence of eye disorders drives a growing need for medical intervention, making eye care an integral part of the domestic health care system.

Eye Care is a Critical Healthcare Need in India Today: India has the Highest Number of People with Vision Loss Globally

• 1 in 5 people in India affected by vision loss.

• 1.5 instead of 8.7 eye care professionals required per 100k population.

• Persistent cataract backlog driving unmet demand.

• Nearly half of the population has refractive disorders.

• Cataract causes c.62.6% of blindness in India.

b. Key Growth Drivers

• Demographics and Income: Ageing population, rising diabetes prevalence and increasing screen time driving higher incidence of eye disorders.

• Improving Affordability: Rising incomes and expanding health insurance penetration supporting greater access to quality eye care.

• Government Initiatives:Continued supportthrough NPCB&VI, Ayushman Bharat and ABDM improving accessibility and healthcare infrastructure.

• Organized Eye Care Expansion: Increasing preference for branded providers, standardized clinical protocols and expansion into Tier II & III cities.

• Technology & Premiumization: Growing adoption of advanced diagnostics, premium procedures and digital health solutions.

• Untapped Opportunity: Large cataract backlog and underpenetrated markets provide significant longterm growth potential.

c. Segmentation of the Eyecare Industry

Surgical Interventions:

• Cataract Surgery

• Retina Surgery

• Refractive Surgery

• Glaucoma and Cornea-Based Surgery

Non-Surgical Services

• Routine check-ups and screenings

• Early identification of key eye disorders that may require surgery

• Post-surgical recovery through regular monitoring and follow-up care

Indian Eye Care Market Split By Value - FY2026E

d. Market Structure

Indias eye care market comprises a mix of organised eye care service chains and standalone hospitals and clinics. Split of Indias eyecare market (in value) by eyecare service chains and standalone eye hospitals/ clinics (FY2026E)

Headroom for Further Growth for Organised EyeCareService Chains ic a FcagmentedMgoket

Split of Indian Eye Care Market (Service Delivery) (FY2026E)

47,000-50,000 crore

Standalone Centres / Hospital Eye Care Market: 84.5-86.5%

Organised Eye Care Service Chains: 13.5-15.5%

Market share of Dr. Agarwals: 26-27%

Eye Care Service Chains Positioned to Grab Market Share

• Higher Brand Equity Fostering Patient Trust.

• Standardised Level of Operations Ensuring Consistent, High-quality Patient Care Across Centres.

• Widespread Network Presence & Asset-Light Scalability.

• Comprehensive Set of Treatments & Digital Innovation.

e. Overview of eye care delivery structure in India

Primary Eye care Facilities:

• Initial point of contact for early detection of conditions like cataract and refractive errors

• Services include eye examinations, diagnosis, treatment for maintaining healthy vision, and more

• Refer complex cases to secondary and tertiary care facilities for further treatment

Secondary Eye & care Facilities:

• Are handled by ophthalmologists and offer cataract, simple glaucoma surgeries, and other minor surgical procedures

• Offer other non-surgical treatments and refer complex cases to tertiary care facilities

Tertiary Eye care Facilities:

• Manage the full spectrum of eye-related diseases.

• Conduct research and provide training to secondary eyecare facilities

f. Key Entry Barriers for the Eye care Industry

The Indian eye care industry poses high entry barriers due to capital-intensive infrastructure, limited specialist talent, entrenched brand loyalty, and complex regulatory compliance

Key Entry Barriers for Eye Care Service Chains

• High Quality Talent and Institutional Capabilities to Continuously Upskill and Train Manpower

• 1.5 Ophthalmologists in India against a requirement of c8.7 for every 100k people

• Need Strong Operational Expertise to Design Standard Operating Procedures

• Ensuring consistent patient experience and clinical outcomes through robust quality control systems.

• Need to Upgrade Technology in Line with Evolving Industry Trends, which may lead to Higher Capex - Cataract, SMILE, LASIK, Corneal Transplant

B. Indias Eyewear Market*

The Indian optical eyewear market is projected to grow at a CAGR of 9-11% between FY2025 and FY2030, driven by rising prevalence of refractive disorders, increasing awareness of eye health, improving affordability and expanding access to optical products across urban and rural markets. The market is expected to have reached 370-400 Bn in FY26 and expectedto reach a size 500-600 Bn by FY30. Nearly half of the Indian population has refractive disorders, supporting sustained demand for spectacles and contact lenses.

Key Performance Indicators

Financial Performance and Operational Performance

The company saw a robust growth in FY26. The top line consistently grew at 18.50% from 402.24 Cr to 476.69 Cr. The revenue growth along with consistent cost control measures, has reflected down on to EBITDA with 22.3% growth from 123.59 Cr to Rs. 151.13 Cr. In the capital markets, the company saw a significant increase in market capitalization with the share pricing reaching north of 5,119.2 per share as on 26th May 2026 (with an increase of 19.1% to last year price).

The company has also been committed in consolidating its presence in Tamil Nadu by exploring the accessibility to the remote areas. Our network grew to 63 facilities this year, up from 61 last year.

SWOT Analysis

Strengths

The company has been able to continue its momentum by achieving growth in both revenue and EBITDA, while increasing the profit margin as well. The experience of promoters who possess an ideal blend of clinical expertise and managerial proficiency helps the management navigate the any headwinds in operations side with ease. The companys long-standing accomplishments in the field of ophthalmology has helped to create a favourable position in market to reach and attract a larger patient population.

Weakness

The companys operations are dependent upon the ophthalmologists, given the scare availability of merely 27,000 ophthalmologists and 42,000+ eye care practitioners (includes optometrists, ophthalmic assistants and refractionists) in India, which is significantly lower compared to the countrys vast population, highlights the operational difficulty posed to the company. The companys reliance on a few regions due to clustering of branches has made the performance of branches dependent on economic, social and political well-being of that region.

Opportunities

The individuals are highly health conscious, especially in the aftermath of the COVID outbreak. This will stimuli for new opportunities in the eye care segment. The development of new state-of-the-art technology with the combination of a seasoned team of doctors enables to delivery exemplary eye-care services. The company is actively learning experiences through the success and challenges of the

peers, further have been proactive in mitigating those risks from leveraging its knowledge from the above. The above factors complement the companys future prospectus in the field of ophthalmology foreseeing a broader growth in the healthcare industry.

Threats

The region-specific operation model of the company faces immense pressure from competition with limited scope for expansion. The uncertainty of global economy amid ongoing conflicts have led to the hard geo-economic policies among the developed countries, lingering the concerns about their potential impact on the overall business landscape.

Human Resource

In the service industry, human resources play a crucial role, the performance of which has a significant impact in the overall performance of the company. The company has developed a team of experienced human resource professionals handling the talent acquisitions and retentions in line the primary vision of the company. The details regarding developments in Human Resources is dealt in the "Particulars of Employees" forming part of the of the Directors Report.

Internal Control Systems and Their Adequacy

The organization has consistently adhered to the internal controls which is designed and updated as required effectively throughout the operations of the company to ensure accurate accounting, monitoring operations, safeguarding assets against unauthorized use or losses, complying with regulations, and ensuring the reliability of financial reporting. These controls have been thoughtfully implemented to provide the necessary safeguards and reasonable assurance.

Cautionary Statement

The goals, aspirations, or projections of the company may be considered forward-looking within the context of the securities laws and regulations that are now in effect. It is possible that the actual results will be significantly different from those represented in the statement. The global and domestic business climate, changes in government rules and tax laws, economic developments inside the country, and other factors such as litigation and the like are important elements that could influence the operations of the company