# 1. Financial Performance ## A. Key Figures * **Total Income:** ₹1,007 Cr H1 FY26 (+2%) · ₹507 Cr Q2 FY26 (+2%) * **Revenue from Operations:** ₹986 Cr H1 FY26 (+2%) · ₹499 Cr Q2 FY26 (+7%) * **PAT:** ₹75 Cr H1 FY26 (+4%, +270 bps margin) · ₹36 Cr Q2 FY26 (+71%, +220 bps margin) * **EBITDA:** ₹285 Cr H1 FY26 (+9%, +100 bps margin) · ₹144 Cr Q2 FY26 (+2%, +70 bps margin) ## B. Revenue Growth * **Mature Facility Momentum:** Revenue from mature facilities (pre-FY22) grew **9%**, contributing **75% of group revenue**, with same-store sales showing **~5% blended H1 growth**. * **Volume & Realization Drivers:** Top-line expansion fueled by **strong double-digit volume growth** and **mid-single-digit pricing/premiumization gains**, despite a shift toward higher-volume, lower-ARPU cataract procedures. * **New Center Ramp-Up:** Facilities launched in FY23 and FY24 delivered **robust growth**, with FY23 centers up **7%** and FY24 centers showing early traction at **3%**, indicating healthy maturation trajectory. ## C. Profit Margins * **Margin Expansion Accelerates:** Significant EBITDA and PAT margin improvements across H1 and Q2, driven by **cost efficiencies** and **operating leverage**, with standalone AHCL turning profitable. * **Subsidiary Outperformance:** Acquired clinics and subsidiaries achieved **gross margins near 79%** and **PBT margins expanding to 7%**, reflecting successful integration and disciplined cost management. * **Store-Level Margin Trajectory:** Secondary facilities on track to reach **30–32% operating margins by Year 5**, with established markets outperforming newer regions due to brand maturity. ## D. Cash Flow * **Deleveraging Completed:** Full repayment of **₹195 Cr loans** using IPO proceeds has eliminated legacy finance costs, boosting bottom-line growth. * **Capital Efficiency Maintained:** Despite expansion and tech investments, **D&A held stable at 9–5% of revenue**, supporting margin resilience. --- # 2. Facility & Network Expansion ## A. Key Figures * **Greenfield Facilities Launched:** **24** in H1 FY'26 (**13 in Q1, 11 in Q2**) * **Facility Mix:** **6 secondary**, **5 primary** centers opened · **123 mature centers** (≥3 years) * **Metro/Tier 2-3 Presence:** **31% metro**, **61–62% Tier 2/3** * **Expansion Pipeline:** **30 new facilities** planned over next two quarters (**17 South, 6 West, 4 North, 4 East**) ## B. Greenfield Launches * **Accelerated Rollout:** Robust pace of **24 new greenfield facilities** in H1 underscores aggressive expansion momentum and operational execution capability. * **Whitefield Success Story:** Relocated and upgraded Bangalore tertiary facility delivering **over 20% growth**, now generating **₹1 Cr monthly revenue** with strong clinical throughput. * **Breakeven Trajectory:** Greenfield secondaries reach store-level breakeven in **12–15 months**, with core markets achieving it in **6–7 months**, indicating scalable unit economics. ## C. Facility Mix * **Mature Center Strength:** 123 established centers provide stable base for same-store sales growth and operational leverage. * **Tier 2/3 Strategic Advantage:** Dominant footprint in Tier 2/3 cities enhances **community trust via local ophthalmologist hiring** and supports **lower rental costs and improved efficiency**. * **Revenue Diversification:** Growth at flagship facilities like Whitefield driven by **specialized staffing, expanded services, and digital marketing**. ## D. Regional Rollout * **Delhi-NCR Momentum:** Strong month-on-month volume and revenue ramp in Delhi prompting plans for **rapid regional expansion over next 12 months**. * **Regional Focus Intensifies:** Expansion underway in high-potential markets across **Karnataka, Andhra Pradesh, Maharashtra (Mumbai/Pune micro-markets), and Gujarat**, where Surat centers show strong adoption. * **Technology-Led Growth in Gujarat:** Plans to accelerate deployment of **advanced technologies** alongside facility additions to capture market share. --- # 3. Surgery Volume & Mix ## A. Key Figures * **Surgery Volume:** **137,244** total surgeries (+6%) · **157,000** total procedures * Cataract & Refractive Growth: +14.2% YoY · **Other Surgeries:** +21.4% blended * **High-End Cataract Procedures:** **29,697** (8% of cataract mix) (+7%) * **SMILE Surgeries:** **2,668** (+5%) · **Retinal Surgeries:** **6,205** (+23%) * Surgical services 65.6%, diagnosis/consultations 13.6%, optical/pharmacy 20.8% ## B. Cataract Procedures * **Volume Momentum:** Cataract and refractive surgeries show steady growth, driven by strong uptake in **Femto and high-end cataract procedures**. * **Premiumization Trend:** Revenue per surgery rising on **5%–5% growth** from premium cataract offerings, expected to persist. * **Network Scale:** Operations span **258 facilities** (29 hubs, 229 spokes), supporting broad patient access and procedural volume. ## C. Other Surgical Volumes * **Retinal Growth Standout:** Other surgeries up 4% blended, with retinal procedures showing **robust double-digit momentum** (+23%). * **SMILE Adoption Rising:** Lenticular (SMILE) volumes expanding steadily, reflecting growing demand for advanced refractive solutions. --- # 4. Geography & Market Mix ## A. Key Figures * Revenue: ₹635 Cr Southern region (+22.2%) · ₹150 Cr Western region (+16.6%) · ₹72 Cr Northern region (+14.2%) * Africa Revenue: +17.4% YoY, share of total revenue ~10% (down from 10.4%) * **India Q2 Revenue:** ₹445 Cr (+8% YoY) * **Telangana H1 Growth:** **42%** top-line (+44% EBITDA) * **Facilities:** **239** across India (141 cities, 14 states, 5 UTs) · **165** in South, **43** in West, **22** in North ## B. Southern Region * **Dominant Contributor:** Southern region remains the largest market, driving **two-thirds of group revenues** with stable growth and ongoing network expansion. * **Expansion Momentum:** Added **16 new facilities** in H1 across key Southern states, reinforcing leadership in scale and geographic penetration. * **Tier 2/3 Parity:** Unit economics in Tier 2 and Tier 3 cities are **on par with metro facilities**, validating the scalability of the decentralized model. ## C. North & West Regions * **West Shows Volume Strength:** Despite revenue disruption from rains and festivals, the West delivered **20% patient volume growth** and solid surgery growth, signaling strong demand capture. * **North Stabilizing:** Revenue growth remained modest amid operational headwinds, but **improving trends in Q2** and upcoming Delhi openings support H2 recovery outlook. * **Maharashtra Outpaces Region:** Regional growth significantly exceeded West average, with **16% H1 growth**, indicating strong local execution and integration momentum. ## D. Africa Business * **Revenue Share Surges:** Africa’s contribution to total revenue **expanded sharply to 10%**, despite modest 4% organic growth, highlighting structural shift in group mix. --- # 5. Technology & Clinical Advancement ## A. Key Figures * **Robotic Cataract Procedures:** **2,616** (Delhi: ~60/month) (+69% YoY) · **1,548** prior year base * **R&D Pipeline:** **16** ongoing clinical studies · **4** completed in Q2 FY’26 * **Training Output:** **~80** doctors trained in advanced specialties during the quarter ## B. Advanced Equipment * **Technology Parity:** Best-in-class equipment uniformly deployed across all facilities, including Tier 2/3 cities, ensuring metro-equivalent clinical outcomes and patient trust. * **Growth Enablers:** Strategic investments in Femto Cataract and high-end systems are driving consistent procedural growth and enabling **4%–5% annual revenue per surgery expansion**. * **Capacity Expansion:** Recent installations of VisuMax 500, Phaco systems, and LUMERA 300 enhance surgical precision and throughput in key centers. ## C. Robotic Surgeries * **Strong Adoption:** Robotic cataract procedures surged with **69% YoY growth**, now scaling rapidly across new sites including Delhi and Velachery. ## D. R&D Initiatives * **Scientific Leadership:** Sustained contribution to ophthalmic science through decades of publications in top-tier journals and active clinical research. * **Talent Development:** Continuous L&D programs ensure clinical teams remain at the forefront of surgical innovation and patient care standards. --- # 6. Risks & Operational Factors ## A. Key Figures * Performance Decline: 1.5% to 2% QoQ drop due to unseasonal rains * **Operational Disruption:** **3 to 4 week** facility refurbishment at Jalandhar unit ## B. Weather Disruptions * **Regional Divergence:** Strong growth in Telangana, Karnataka, and Andhra Pradesh offset by monsoon-driven softness in Tamil Nadu and heavy rains in the North. * **Resilient Execution:** Jalandhar unit maintained robust H1 growth despite **multi-week facility refurbishment**, signaling operational strength. * **Short-Term Weather Impact:** Unseasonal August rains caused a **modest sequential performance dip**, though recovery expected in H2. ## C. Competitive Pressures * **Tier 2/3 Strategy:** Focus on patient switching in locally competitive markets; no granular tactical updates provided. ## D. Regional Challenges * **North Under Pressure:** Performance weighed by intense competition, pricing headwinds, and adverse weather—historically a stronger H2 region. * **Brand Momentum:** Strong walk-in volumes in non-metros driven by **aggressive local marketing** and brand equity. --- # 7. Guidance & Outlook ## A. Key Figures * **Capex Guidance:** **₹310 Cr** for the year · **₹70 Cr** additional for flagship projects ## B. Future Expansion * **North India Focus:** Expansion plans accelerated in **Delhi-NCR, Punjab, and Uttar Pradesh** following strong performance of Delhi main hospital. * **Greenfield-Led Growth:** Growth strategy remains centered on new Greenfield launches, supporting geographic penetration and market share gains. ## C. Margin Expectations * **Stable Margins Expected:** EBITDA margins anticipated to hold **around 26%**, despite expansion-related pressures, reflecting operational discipline. * **H2 Strength Forecasted:** Absolute business performance expected to improve in H2 FY26 versus H1, driven by scale and utilization gains.