Dr. Agarwal’s Health Care Limited (NSE: AGARWALEYE) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Adil Agarwal — Chief Executive Officer and Whole-Time Director
Aashna Dharia — Head, Investor Relations
Yashwanth Venkat — Chief Financial Officer
Aashna Dharia — Head Investor Relations
Rahul Agarwal — Chief Operating Officer
Vandana Jain — Chief Strategy Officer
Analysts:
Unidentified Participant
Alankar Garude — Analyst
Tushar Manudhane — Analyst
Avnish burman — Analyst
Amit Kada — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Dr. Agarwal’s Healthcare Q1FY26 earnings conference call hosted by. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation. Conclude should you need assistance during the conference call please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Ashna Dhariya head of investor relations from Dr. Agarwal’s Healthcare Limited. Thank you. And over to you ma’.
Am.
Aashna Dharia — Head, Investor Relations
Thank you. Manav. A very good evening ladies and gentlemen. Welcome to Dr. Agarwal’s Healthcare Q1FY26 earnings call. From the management side we have Dr. Adil Agarwal CEO, Mr. Ashar Agarwal, Chief Business Officer. Mr. Rahul Agarwal, Chief Operating Officer, Ms. Vanna Jain, Chief Strategy Officer and Mr. Yashwant Venkat, Chief Financial Officer. We have released our financial results, press release and investor presentation all of which are available on our website and the exchanges as well. Before we continue we want to remind everyone that this call is being recorded and the transcript will be made available on our website afterwards.
Additionally, please be aware today’s discussion may include certain forward looking statements which should be considered in the light of the risk our business faces. Please refer to the detailed statement on page two of the investor presentation. It is now my pleasure to hand over the call to Dr. Adil a chief Executive Officer who will share his opening remarks and insights. Dr. Adil, over to you.
Adil Agarwal — Chief Executive Officer and Whole-Time Director
Thank you Ashna. Good evening to all of you and a warm welcome to the Q1FY26 earnings call of Dr. Agarwal Healthcare Limited. Let me begin by providing you all an update on the quarter one performance. The new fiscal year commenced with record breaking results. We crossed the milestone of 500 crores in total income for the quarter and delivered over 100% year on year. Increase in profit after tax of 38 crores for quarter one FY26 total income stood at 501 crores up 22.3% year on year while revenue from operations rose 20.8% to 487 crores. The quarter delivered a robust India’s EBITDA of 141 crores growing 28.9% year on year with margins at 28.2% and improvement of 140 basis points.
PAT more than doubled to 38 crores with the PAT margin expanding by 315 basis points to 7.6%. Next, I would like to share our footprint and network growth update during the quarter ending June 2025 we served over 7 lakh patients and performed nearly 79,000 surgeries through our network of over 249 facilities comprising 29 hubs and 220 spokes in India. Now we have a total network of 230 facilities across 14 states and five union territories covering 136 cities. Our presence is well diversified now with 32% of our facilities in tier one cities, 61% in other cities and 8% located internationally.
We expanded our footprint by commissioning 13 new greenfield facilities, further strengthening our reach and capacity. These included one tertiary center in Delhi, seven secondary centers in Mangalore, Hennur Road in Bangalore, Vishakhapatnam, Sambalpur in Orissa, Red Hills in Chennai, Lucknow and Kolhapur, along with five primary centers in Andhra Pradesh in E Road, in Tamil Nadu, in Kerala in Telangana and one in Tanzania. Of these two facilities, one is Red Hills in Chennai and second Bhavani in E Road were opened. Who was previously the former Chief and HOD of the RP center of Ophthalmic Sciences at Ames, New Delhi.
He is the first Indian ophthalmologist to have performed a live surgery at our Delhi facility. Now is equipped with cutting edge technologies including the Exammer Laser Smile for refractive surgery, the Alcon Takeo machine for cataract, the Zeiss Artivo 800 Opody microscope amongst others. In the last month the center recorded over thousand patient visits underscoring the strong demand for the brand in this particular market. This launch marks a strategic step in our organic expansion plans in North India with plans now underway to establish our presence in Gurgaon and other parts of the Delhi NCR region in Uttar Pradesh.
Following our acquisition in Varanasi last year, we are now focused on strengthening our brand equity to drive future organic growth and have recently expanded our presence with a new state of the art facility in Lucknow as well as now moving on to a few highlights. On the clinical front, there has been a significant focus around the firm to ensure we strive for clinical excellence while we continue to scale. This is reflected in an increase in the following specialized surgical procedures in Q1FY26. The contribution from high end cataract surgeries increased to 25.5% out of the total cataract procedures, up 230 basis points year on year from 23.3% in the same quarter last year.
Overall, our robotic cataract surgeries, what we call STEMTO cataract surgeries, grew by a robust 72% year on year from 674 surgeries to 1160 surgeries. As shared in our previous earnings call, we have installed new robotic cataract surgery machines at our Bangalore and Hyderabad facilities which are now cumulatively performing an average of about 110 surgeries a month. Our lenticular procedures, what we call a smile, also increased from 1173 to 1257, reflecting a 7.1% year on year growth. Retinal surgeries totaled 2,969 in Q1FY26, up 23.5% from last year. Corneal transplants also increased to 242 procedures in in the first quarter of FY26.
Further, we continue to invest in specialized equipment and techniques to strengthen both diagnostic capabilities and surgical outcomes in our existing centers. We have upgraded our facility with advanced equipment. For instance, we have installed a new FEMTO cataract robotic machine in Velacheri, Chennai. We have launched a new TECO cataract machine in Tirupur and in Hyderabad and a new retinal machine in our upcoming center in Aurangabad. Shifting to some notable developments on publications, training and clinical research over the last three decades our doctors have contributed to more than 300 publications in leading international medical journals, underscoring our commitment to advancing ophthalmic seash.
During the quarter we also focused a lot on capability building and nearly 90 doctors underwent training across a range of areas. On the clinical research front, we currently have 20 active studies underway. This quarter we successfully conducted a phase 3 clinical trial in patients with wet age related macular degeneration, a common eye condition that can cause blurred or distorted central vision. Now moving on to some business updates, let me first begin with our region wide performance. Our south region continues to be our largest market contributing to 65% of the total group revenues. This region delivered 350 crores of revenue representing a strong year on year growth of 23.9%.
We have now 159 facilities across the southern states and this includes eight new additions in the southern markets of Tamil Nadu and Telangana. We are focused on sustaining our market leadership while further strengthening that particular region through adoption of the latest technology in Karnataka and Andhra Pradesh. We are strengthening our presence in both these markets by expanding significantly into high potential underserved markets through strategic facility openings. If you look at the west region, that contributes to about 15% of the overall group revenues and that region delivered 73 crores of revenue up 19%. Year on year.
This region operates 41 facilities and we added one new facility. In this quarter patient volumes grew by 18% to over 1.05 lakh while surgeries performed were up 13.7% to 11,691 procedures. In Mumbai, we are leveraging the strong brand equity from our recent acquisitions to drive organic growth through focus on adding new additional greenfield facilities in the rest of Maharashtra. Outside of Mumbai, we are targeting high potential tier 2 micro markets by capitalizing on our brand strength and operational expertise and have recently launched a facility in Kolhapur and have one coming up in Aurangabad very soon.
In Gujarat, again our focus is on expanding into new urban markets and we set up a new facility in Udna. In Surat, north accounts for 7.8% of revenues and this region reported 38 crores of revenue this quarter up 13.4% year on year. In Delhi NCR we are focused on organic band building while pursuing gradual regional expansion with plans to open up a facility in Gurgaon very soon. In Punjab, we are consolidating our leadership position following the thinned ICARE acquisition. East contributes to about 2.6% of total revenues with 13 crores of revenue done in Q1 up 14.9% year on year.
Overall, all regions have posted very positive growth with the south leading in both absolute size and year on year momentum while north, west and east continue to build scale moving on to our same store sales growth, our mature centers are those that have been open for more than three years. As of June 2025 we operate 116 mature facilities. Revenue from these mature facilities has increased 19.4% reaching 354 crores in the quarter 1 FY26 contributing to 73% of the total group revenues. Revenue from mature facilities in India has grown by 21.1% to 309 crores. Moving on to our vintage performance in Q1 FY26.
Facilities operational or acquired prior to FY22 contributed to 340 crores in revenue, registering a growth of 15%. Facilities opened in FY23 generated 60 crores growing at 13.7% while those launched in FY24 delivered 40 crores in revenue achieving a strong growth rate of 23.3%. Our third business update revolves around a case study which we have done in Telangana. This is a topic that always comes up in conversations where we talk about our organic growth strategy. We would like to highlight a case study on our expansion journey in Telangana. Our Telangana journey is a testament to steady and strategically planned growth.
We began in FY 2011 with three greenfield centers generating about 10 crores in annual revenue. In phase two, we tripled our network expansion from network from three to eight facilities and grew revenue sevenfold to 70 crores driven by strong brand presence and enhanced clinical capabilities. We are now in phase 3 and have rapidly expanded to 18 centers extending into the suburbs of Hyderabad and tier 2 cities like Warangal and Isamabad. We have more than doubled our network to 18 facilities and have almost double revenues from 70 crores to nearly 130 crores reflecting an accelerated scale up and deeper market penetration.
Moving on to our fourth business update. Our planned facility opens domestically for each quarter of the current year. Over the next three quarters of this financial year we are targeting to launch another 42 new facilities which will comprise 23 centers in the south, nine in the west, five in the north and five in the east. That’s a business update from my side. Now I would like to hand over the call to our CFO Mr. Yashant Venkar could take a deeper dive into our financial performance.
Yashwanth Venkat — Chief Financial Officer
Thank you Dr. Adil. I’ll begin with the operational update. Surgical services continue to be the main revenue driver contributing 65.6% to the group revenue. Diagnosis consultations and other non surgical treatments contributed 13% and the sale of optical products and pharmacy Items accounted for 21.4%. In Q1FY26 we performed 78,882 surgeries marking a 16% year on year growth. Cataract surgeries remain the largest contributor accounting for approximately 73.4% of total surgeries followed by refractive surgeries that are of 4.7%. Volumes for cataract and refractive surgeries grew 14.2% year on year while other surgeries on a blended basis recorded a growth of 22.8%.
Our payer mix for the quarter stood at 61.7% from cash, 29.1% from insurance and DPAs and 9% from government schemes. Domestic payer mix for the quarter stood at 72.5% from cash, 22% from insurance and TPS and 5.5% from government schemes. Moving on to the Financial section. I will start with the revenue split. The group’s revenue from operations grew by 20.8% year on year reaching 487.26 crores in Q1FY26 compared to 403.49 crores in Q1FY25. Revenue from operations in India stood at 440.4 crores reflecting 21.4% growth year on year despite disruptions from the Pahalgam attack and Operations Indoor which briefly impacted our operations in the northern region, particularly in Punjab and Jammu and Kashmir.
This growth was supported by a mix of volume growth of 9%, value growth of 5.6% and balance from the contribution of new Centers opened in FY25 and FY26. Revenue from our Africa operations grew by 15.7% year on year in Q1 FY26 while their contribution to overall revenue declined from 10.1% in FY25 to 9.65%. Gross margins, finance cost and higher profitability versus the same quarter last year from 66 to percent in Q1 FY25. The share of profit after tax attributable to owners has expanded to 79% in Q1FY26, signaling improved profit distribution. AHCL standalone has delivered a positive pack of INR 10 crores in Q1FY26 as compared to a loss of INR 8.5 crores in Q1FY25.
Thank you all. We’ll open the floor to questions.
Questions and Answers:
operator
Sir, should we begin the question and answer session? Yes, thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on their Touchstone telephone. If you wish to withdraw yourself from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We have our first question from the line of Alankar Garude from Kotex Institutional Equities. Please go ahead.
Alankar Garude
In the past we have spoken about refractive being a strong growth driver for the company. However, if we look at growth in refractive surgeries in this quarter, it seems quite low at 3% year on year. Can you help us understand the reasons for this relatively slower growth in refractive compared to the other surgeries? Yeah, nice to hear from you. Yes.
Yashwanth Venkat
In terms of refractive surgical contribution over the last three years, it has grown up by about 0.4 to 0.5% every year. But there is a Certain amount of seasonality as far as refractive surgeries are concerned. The strongest months as far as refractive surgeries are concerned are one, July 2nd will be December. So it may not be fair to look at retractive surgeries growth on a yoyoi for Q1 Alargar.
Alankar Garude
But then Yashwant, when you look at yoy, the seasonality which you mentioned gets captured. Right. So still not able to understand why just 3% year on year growth in refractive surgeries.
Rahul Agarwal
Hi Ananka, this is Rahul. So you know, while you’re right, the seasonality gets captured but you know, these are also the months where, you know, we don’t push from our side with any offers or campaigns. So we don’t expect jumps coming in these quarters, the quarters where we also go aggressive, you know, when there are more patients available in the entire pool, when they’re actually looking for surgeries other quarter two and quarter three, those are the two quarters where we get the maximum impact. So from our side also we really do not push in these other quarters.
Alankar Garude
Fair enough. So would it be fair to understand and Rahul, that broadly, if you look at the full year growth in refractive surgery should broadly mirror the overall surgery growth or maybe even grow higher?
Rahul Agarwal
I would say overall, yes, it should mirror whatever the overall surgical growth is in line with the overall growth is what.
Alankar Garude
Understood. And maybe one follow up question here. Apart from insurance coverage, are there any other key reasons to explain the relatively lower refractive contribution for eye care players in India compared to some of the global peers?
Aashna Dharia
Yeah, just once again, Dr. Vandana is going to take that.
Vandana Jain
Hi Alankar. So I think first of all you’re right, compared to the other global players in India, the uptake of refractive surgery has been lower because most of the time the payments that happen are out of pocket. Secondly, the incidence of myopia itself, actually now it has begun to increase. But in certain developed markets like the us, Europe or even China for that matter, China, the incidence of myopia actually started increasing much, much earlier, which now we are seeing the trend in Indian market also. So going forward we do believe that in India also we are going to see a similar uptick of reproductive surgery going forward.
However, that that trend we are not noticing immediately right now. And lastly, as you know, as Rahul mentioned, that because overall the technology, you know, this technology which has now come into India, there is, there is now a greater adoption by more and more players. But still when you compare it to the west or to China, the number of machines or even if you look at the density of machines, India is much lower compared to the west or to China.
Alankar Garude
Got it. No, that’s, that’s really helpful. The second question is, unlike Maharashtra, wherein acquisitions have played a big role for the company, growth in Telangana has been more organic. As you pointed out in your opening remarks. How would you contrast your journey across Telangana and Maharashtra? The reason for asking this question is basically to help us understand the difference in scale up timelines across organic and acquired facilities. Maybe these two examples of these two states could be useful.
Aashna Dharia
So Telangana, you went through a phase of struggle for the first four to five years. It takes that much time to build your brand. Alanka, we were also growing as an organization at that point. Now you have a fairly established presence in Telangana. You’ve been operational in that market for over 13, 14 years. And it takes, it takes a while for the brand to get established. And once the brand gets established now when you put out organic centers, greenfield centers in your own brand, automatically you get walk ins which is what is actually helping you provide those kind of results.
Which is what has helped you actually double your revenue from 70 crores to almost 130 crores in Telangana. Maharashtra, again, we are following that thought process. But Maharashtra is a slightly more complicated market because there are a lot more established players in Maharashtra. We also entered Maharashtra only in 2019. So there’s an eight year gap between when we enter Telangana and Maharashtra. Now we are starting to see traction in the Maharashtra region as well. Which is why we have opened five new greenfield centers in Mumbai alone. So we have set up a center in Badlapur, in Kalyan, in Virar, in Dumbivali and one more in Vashi.
And we are seeing good traction in these markets because over the last five to six years, as we have gone about building our brand, the brand is slowly getting established in some of these markets. And now you’re starting to see some of that traction actually help you scale up some of these centers. So we believe if we continue on this organic path which we have done in Telangana, similarly in Mumbai and Maharashtra, you will start to see the similar kind of results in this particular region.
Alankar Garude
Understood. And one final question. What was the same store sales growth for the secondary and tertiary sectors in this quarter?
Yashwanth Venkat
We’ll just give you the number right now. So I’ll give an overall same store sales growth. It was to the tune of around 14. Yeah.
Alankar Garude
But then that doesn’t become comparable. If you can provide it for secondary and tertiary separately, that would really help.
Rahul Agarwal
We don’t have that that data right now, Anaka. But what we have is our mature fit centers and which is. And fundamentally which will it will represent your secondary and tertiary centers because the primary center contribution is much better anyways. So this 14, 15% is pretty much representative of your secondary and tertiary facilities. There won’t be too much difference between that and even if you take out the impact of the primary centers.
Alankar Garude
Got it. And between secondary and.
operator
Sorry to interrupt you. Anankar. Can we please request you to rejoin the queue?
Alankar Garude
Yeah, yeah, sure. Thank you.
operator
Thank you. We have our next question from the line of Tushar Manudane from Motilal Oswal Financial Services. Please go ahead.
Tushar Manudhane
Thanks for the opportunity, sir. So just on surgery side like total surgery where I see 16% growth in terms of number of surgeries while the revenue has grown by 21% and within surgery also as the earlier question, the refractory was bit soft for this quarter. So what explains this revenue growth being higher than the number of surgeries Growth?
Rahul Agarwal
Sure. So Tushar, overall the growth, we can look at it as a volume growth and price growth and part of it would be from the new greenfields that comes in. Right. So I would just break it up for you. Overall from a volume perspective we had a 9% growth and I’m largely focusing on the domestic market on this we had a 9% volume growth which was led largely by the OPD growth that we got. Second was on the value growth which is a combination of our price hike as well as the premiumization that we drove. So that would be to the tune of almost 5.5 to 6% and finally another 6.5% sorry, 8% which came in from Greenpeace. So that is the entire combination of around 23% overall growth that we grow for domestic business.
Tushar Manudhane
Okay. I was referring specifically for surgery’s revenue, not the overall revenue. And considering the surgery is volume.
Rahul Agarwal
So okay, from, from the surgical perspective itself, the 16% growth that we are. Talking about that contributes to the 16%. Part of the growth. The remaining comes from the value growth that we drive in those 16% overall growth. So basically how we are driving the premiumization, if I’m answering your question right. Is that you have high end lenses. Which contribute to higher value per surgery that comes in. For example, last year we had our yield per patient on cataract was around 38k. That has now moved to around 40k. So that is, you know, the value increase that we are getting. Similarly what Adil spoke about initially was the femto cataracts. So femtocatrites by itself adds to added around. We did around 1160 odd surgeries this year compared to 60674 last year. That’s an added additional value in our high end surgeries over and above the regular lens cost that we get. So that contributes around 26 point.
That contributed around 26.2% in the overall high end numbers that we got for the quarter. Did I answer your question? No.
Tushar Manudhane
Yeah, yeah, very much, very much. This yield per patient for cataract, where do we see or envisage numbers, say by end of this year, probably next year, given that we are moving towards high end lenses or sort of convincing patients to go to the high end lenses.
Yashwanth Venkat
I’ll just give you the trajectory that we have had so far. We did 32k in FY22 and now in FY26 Q1 we reached 40. So that’s been the trajectory around 2000 kind of a growth every year is what we have been able to achieve. We don’t see a reason why it should change as we move forward.
Tushar Manudhane
And the second one from my side is about the consultation revenue, while relatively smaller proportion, but that has grown at 14% while we had a very healthy growth on the surgery side. But consultation probably gives more sort of a forward looking indication in terms of conversion to surgeries. So that piece is bit soft despite addition of new centers as well as sort of healthy growth at the organic level as well. So if you could just elaborate on that aspect as well.
Yashwanth Venkat
Perfect. So largely I would not say that you should look at consultation revenue as a proxy to, you know, the volume growth and how, you know, your surgical numbers would pan out. I think new OPD growth would be. A better benchmark to look at how. The new OPD and overall OPD is growing for us. That would be a better way to look at, you know, how many new surgical advisors will happen and how many surgeries will happen. So I would say consultation may not be because, you know, we have various agreements across India with different companies and those kind of things where we might even go down or up on different consultations that we do.
Tushar Manudhane
So if you could just give some indication about the new OPD growth quarter for last year, how much it was.
Rahul Agarwal
Just on the patient served, I can tell you that we had a growth of 18.6% from 5,94,000. We moved up to 7 lakh 5,000.
Tushar Manudhane
All right, thank you so much. Thank you.
operator
Thank you. A reminder to all participants, if you wish to ask any questions. You may press Star and one. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. We have our next question from the lineup. Avnish barman from Vairakya. Please go ahead.
Avnish burman
Hi, good evening. Thanks for taking my question. I just have a couple. On the subcore, the 17% revenue growth in the subcore 217cr. Can you also divide this by into the volume and the pricing and the new center edition, please?
Aashna Dharia
Sure. So our overall patient volumes, which is our total OPD volumes, increased by about 16% at the, at the subcore level, we saw a total volume growth of about 16. 16% increase from about 1.4 lakhs toward 1.6 lakhs. Okay. Yeah, yeah.
Avnish burman
So does that mean that the pricing growth and the new center growth was flat this quarter?
Avnish burman
No, that’s not. That’s not what it means. Both, both volume and the pricing have pretty much have pretty much increased at a steady state, which is what is driving this growth at the other sub subsidy level as well.
Adil Agarwal
In terms of number of. I think your question was on the number of facilities in the subco, we have opened two facilities this quarter or just to throw some light, we had 50 facilities at the end of FY24. Currently in the subcore, we have 63 facilities marking a 1.3x growth over the last 15 months. In terms of the number of facilities as well in the subcommittee.
Avnish burman
Yeah, so that I saw in the presentation, my question was that the revenue growth has been 17% and you’re saying if the volume growth is 16%. So I mean, usually it’s a combination of volume, price and new center addition. So if almost all the growth has come from volume, does that mean that pricing growth in this quarter was just 1%? I mean, that was the question.
Rahul Agarwal
Oh, that’s the question. Okay, so I will just break it up and tell you. So approximately your existing centers which from last quarter have grown at about 14.8%. Okay. Your centers which have opened in FY26 have contributed to about 2% and about 0.1% has come from the two centers which Yashwood mentioned, which is contributing to about 0.1%. This is what is driving your 17% growth from 100 crores in Q1 FY25 to 117 crores in Q1 FY26.
Avnish burman
Okay, thank you. The second question is on like, again, if you look at the subco and if you see the mature facility revenue growth like you disclosed for the whole core, how is the mature facility Revenue growth here and that. If also you can divide broadly into volume and price.
Rahul Agarwal
In terms of same store sales growth in SAP Co it is at about 14.8%. The rest is contributed from FY25 and FY26 facilities in terms of volume and value. Good for the SAP co. We don’t have the numbers right now. Probably we can revert later.
Avnish burman
Okay, thank you. I’ll get back into queue.
Rahul Agarwal
Thank you.
operator
Thank you. A reminder to all participants, if you have any questions to ask, you may press Star and one. Anyone who wishes to ask a question may press Star and one. We have a follow up question from the line of Alankar Garude from Kotak Institutional Equities. Please go ahead.
Alankar Garude
Yeah, thank you for the opportunity again, sir. On this secondary and tertiary same show sales growth. You, you broadly mentioned same show sales growth is around 14, 15%. Would the broader growth rates be similar across secondary and tertiary?
Yashwanth Venkat
Yes, absolutely. Okay, great.
Alankar Garude
And just two bookkeeping questions. What was the rental payout in this quarter? And secondly, what was the share of minority in this quarter.
Yashwanth Venkat
In terms of Overall minority on Pact contribution, close to 79% is PAC attributable to owners and 21% is minority. Whereas if you take Q1 of last year it was close to about 65 and 35. It has moved up to 1721. The rental payout for Q1 is close to about 30 crores.
Alankar Garude
Got it. And Yashwant, if you can help us with the minority share of EBITDA as well. You spoke about Pat, but EBITDA as well would be helpful.
Yashwanth Venkat
Yeah, minority share of ebitda close to 87.5%. EBITDA attributable to owners. This is 12 and a half percent.
Alankar Garude
Got it. Very helpful, thank you. And all the best.
operator
Thank you. A reminder to all participants, if you wish to ask any question, you may press star and 1. We have a next question from line of Shreyanshtabu, an individual investor. Please go ahead. Thank you. We have our next question from line of Shreyansh Tabu, an individual investor. Please go ahead.
Unidentified Participant
Hello. Hello.
Rahul Agarwal
Hello.
Unidentified Participant
Yeah, hello. Yeah, yeah, yeah. So I was just. I’m an individual investor. So I’m just going through the, you know, the new hospital that’s coming up in the eye, the listed I entity. Just understanding why is there been such a delay in this? Because it’s been there in the last couple of reports. Is there any particular reason?
Yashwanth Venkat
We have. We’ve had a six to nine month delay predominantly because the facility was affected by floods. 1 1/2 years ago. So I don’t know if you remember, in December 2020. Yeah. So at that point we faced a significant amount of delay in the particular process because at that point, and there are videos all over where the site had effectively caved in because of rampant floods in Chennai. So we faced certain flooding of our basements and everything. So we were put back by about six to nine months, which is why there has been a delay in the project.
And. But right now it’s good to know that, you know, things are back on track and we are hoping to get everything up and running by Q4FY26.
Unidentified Participant
That’s great. That’s great. So the next. The last part of my question, two questions but like they go hand in hand, is generally, you know, the model that is there is of a lease model, but this time it’s our own model, thereby entailing a higher investment. So would this mean that this would be a more margin accretive or any other reason of that?
Aashna Dharia
What do you mean by more margin accretive?
Unidentified Participant
Would it be a higher margin accretive than the existing businesses going forward? This particular hospital, if you stand alone, and why is it moved to a old model compared to a lease model, which is generally the case.
Yashwanth Venkat
The original. So this was the original facility which belonged to the. To the company. When we were doing the construction. When we were doing the construction of this main flagship facility, we had actually moved out to a rental facility. So we are currently operating out of a rental facility. And now that we are moving back to this particular facility, we will not be. The rent will only be paid for the land, but the building is being constructed by the company, so that rental outflow will be a little lesser. So from our perspective, the margins will be a little higher in this particular facility.
Fair, fair, fair.
Unidentified Participant
But that’ll be. That’ll be good. And the subsidiary, like, how many more centers do you think will be opening this year? Like in the balance period?
Aashna Dharia
We don’t have anything right now in the pipeline, in the. In the subsidiary. But that said, we are looking at three to four potential openings in Tamil Nadu. Those sites are being looked at once we have clarity. I think by Q2, we’ll be able to give you a better picture in terms of where the centers will be coming up with Tamil Nadu.
Unidentified Participant
Fair enough, Fair enough. Fair enough. That’s really helpful. Thank you. Thank you so much.
operator
Thank you. We have our next question from Lino. Tushar Manudhani from Motilal Oswal. Financial Services. Please go ahead.
Tushar Manudhane
Thanks for the opportunity. So this is insurance share for the quarter moved up really well even if I compare year over year or even if I compare it to full year 25. So it will throw some light here.
Yashwanth Venkat
Overall we had a 2% jump on our insurance. Largely this was done in the TPA and the private insurance side. That’s again yes you’re right. That’s an area which works well for us. Our DSO is much lower in these areas than the government space. Our payments come in much faster. So that’s one area we are very happy when this part of the business does well. Of course this is driven by higher penetration of the the private insurance which really helps the overall business.
Tushar Manudhane
Yeah. But anything peculiar in this quarter that has happened to you know, sort of or you know because this like a step up of almost 2 percentage point for any particular reason region where the insurance.
Rahul Agarwal
No, I wouldn’t say this is. I think this is more market driven phenomena where more people are coming in with better coverages and you know higher more number of people have insurance. So I wouldn’t say this is anything to do with us as an organization. But this is more market driven.
Yashwanth Venkat
Also. Tushar, just an additional additional note. Slightly higher contribution from insurance and TPA came in from the Africa part of the business as well. But otherwise domestic like Rahul had mentioned is pretty much steady state.
Tushar Manudhane
Domestic payer makes it through. This is close to about 72 and a half percent from cash, 42% from insurance NPP and 5.5% from government schemes. Tushar, this has been the trend over the last few years wherein the contribution from government schemes has hovered between 5 to 7%. And just lastly sort of. So the Capex number remains steady right at 310 crores for full 26 considering the 54 facilities to be coming up.
Rahul Agarwal
Yes. Yes Tusha, no revision on that front.
Tushar Manudhane
Got it. Thank you. Thank you.
operator
Thank you. We have our next question from line of Amit Kadam from Canada Rebecca amc. Please go ahead.
Amit Kada
Yeah. Hi team. Good evening. So I just have a one question. Can you help me with the this quarter cash from operations generated is it around 105 crore? You’re talking about EBITDA. No, no cash flow operations for the quarter.
Adil Agarwal
Amit, I’ll get back to you on the exact numbers.
Amit Kada
Okay? Sure. That’s it. Thanks.
operator
Thank you. Next question is from line of Ankush margin from Sanctum. Well, please go ahead.
Unidentified Participant
Yeah sir, a very good set of numbers with the margin extensions also is there a brand is well recognized and the graphical expansion is quite visible now. But when we compare the ROIC as. Computer industry it’s at the lower level. Any number for the roic? How we how we should see this ROIC number over the next two, three years?
Yashwanth Venkat
Any number you want to put it. So as we continue to improve our margins, if you’ll notice our pat margins for this particular quarter have moved up to about close to about 8%. Right. We believe you will certainly see a consistent improvement in your pat margins over the next two to three years. As the pat margins improve over the next two to three years and your margins improve steadily, you’ll start to see your ROIC profile also change over the next couple of years. You will see steadily improvement in the mix over the next couple of years.
Sorry, go ahead.
Unidentified Participant
So over next two to three years. Any numbers that we are looking for. The ROIC.
Yashwanth Venkat
No on RO C in in March 25th in terms of numbers we were close to about 16% on a control basis this year you can expect about close to about one to one and a half percent increase.
Unidentified Participant
Okay sir, thank you sir. That’s from my side.
Yashwanth Venkat
Thank you.
operator
Next question is from line of Varun Hiremath Individual investor please go ahead.
Unidentified Participant
Good evening to the whole team and congratulations on a good set of numbers. I wanted to ask. Hi Abdul, how are you? I hope all is well. Congratulations on a good set of numbers. Again I just wanted to ask any update on the merger between the two companies?
Yashwanth Venkat
Right now as we had disclosed in the DRHP Garam, the merger of the listed sub with the Holdco is being is under consideration. Management is now evaluating this further along with advisors and we hope to provide more clarity in the next few weeks to come. We continue with the endeavor to complete the merger in outer limit of next the next three years. But we believe in the next one one and a half years we should be able to get this done.
Unidentified Participant
Okay, great. And I just wanted to ask. I. You know there was an investor before me who was asking some questions about the subsidiary. I just wanted to reconfirm. So there’s no other growth capex planned in the subsidiary except for the large hospital which is currently underway already. There’s nothing else. As of now we are looking at.
Yashwanth Venkat
Three to four more potential centers and we are looking at sites. We’re looking at sites in Chennai, we’re looking at a place called Tirupatul and some of these other markets. Just that we don’t have the properties finalized. We’re not able to commit on some of those locations but we’re looking at sites actively, both in the Chennai region and in the Tamil Nadu region for us to further expand in the subsidy level as well.
Unidentified Participant
Okay, fine. And finally, I just wanted to ask, is there any particular reason why the subsidiary will only continue to look at Tamil Nadu as a market for expansion and not venture elsewhere?
Aashna Dharia
We believe this is. This is the most. This region has the highest potential and we are able to deliver the best particular margins. We believe we have a certain competitive advantage in this particular region, which is why we continue to focus on this particular particular market. If some opportunity comes about in other regions, we will consider. But right now, the thought process is that most of the expansion in Tamil Nadu will only happen in the subsidy level.
Unidentified Participant
Okay. All right. Okay. Thanks so much. Thank you. Best of luck.
operator
Thank you. We have our next question from the line of Ashish, an individual investor. Please go ahead.
Unidentified Participant
Hi, good evening. Sir. My question has been answered. Thank you so much.
Rahul Agarwal
Okay, thank you. We have a next question from the line of Sanket Gupta, an individual investor. Please go ahead. Sanket, are you there? A reminder to all participants, if you have a question, you may press star and 1. A reminder to all participants, if you have any further questions, you may press star and one on your touchtone phone. We have a next question from the line of Sanket Gupta, an individual investor. Please go ahead.
Unidentified Participant
Hello. Am I audible now?
Yashwanth Venkat
Yes, we can hear you. Okay.
Unidentified Participant
Thank you for the opportunity. I want a single question from me. Actually, I have seen the Google rating of all the Dr. Agarwal centers and the new center in Delhi. Generally the Google rating are around 4.8, 4.9 and approximately more than 3,000, 5,000 people rate these centers. I want any comments regarding how we achieve this great set of Google ratings.
Rahul Agarwal
Hi Sanket, this is Rahul. Thanks for the question. I think you’re absolutely right. In most of our centers, we get a lot of our patients who are happy with our services and they really are happy to recommend our services and give us good ratings. So I think that’s one thing that we are very proud of. And I think that’s something that really motivates the entire team when we get these kind of ratings. So thanks for really noticing it.
Unidentified Participant
And sir, one more question about if. If you see any competition in terms of the lens cart, like businesses where glasses and all this, how it is doing in your center.
Rahul Agarwal
Sankesh, See, there is a fundamental difference between us and Lenskart. Lenskart is fundamentally a eyewear retail company. We are fundamentally a healthcare services company which focuses on eye Care. So the business model is completely different. Our primary focus is on eye care. Patients walk in, they go through a rigorous checkup with all the. With all our optometrists and our doctors. And to provide an additional service is why we have retail operations within our hospitals where we sell glasses and lenses. So the business model is completely different. So I don’t think it’s possible to compare us with the Lenskart in terms of what they’re doing.
For example, many of the typical patient who walks into our hospital is typically a slightly older patient, whereas the demographic of a patient who walks into Lenskart is fundamentally a slightly younger patient. Right. Also, they focus a lot on a lot of eyeglasses and a lot of other stuff as well, which we don’t focus on. Our focus is only on prescription glasses. That’s something which we currently focus on.
Unidentified Participant
Okay. And one more question about the center, how it is performing in New Delhi, the new center, I don’t want to add exact numbers but how’s your expectations and performance?
Rahul Agarwal
Sure. So that’s a very relevant question because this is something which will open up our expansion into the entire Delhi NCR region. I’m happy to share with you all that we have all the requisite licenses in our Delhi facility. We got that at the end of June. July was when was our first full month of operations. Over 1,000 new patients have walked into our facilities across in our Delhi facility. And that is something which continues to grow. We have a very strong doctor team right now and we cover all specialties. We also have the best in class equipment at our Delhi facility in Southeast.
And so far the results have been extremely, extremely positive. So we are happy to see how things are progressing with our first expansion to the Delhi area.
Unidentified Participant
Okay, thank you Sank.
Rahul Agarwal
Thank you Sanket. Thank you very much.
operator
Thank you. A reminder to all participants, if you wish to ask any questions you may press star and one. Okay. Thank you everyone. Thank you everyone for your time, engagement and thoughtful questions today. Should you have any follow up queries, please feel free to contact our investor relations team. We look forward to speaking with you again next quarter and as usual, we truly appreciate your continued support. Thank you everyone for taking the time to get onto the. Thanks Manav. And thanks everyone.
Adil Agarwal
Thank you sir. On behalf of Dr. Agarwaz Healthcare Limited that concludes this conference. Thank you for joining us. And you may now disconnect your line.