The upcoming initial public offering (IPO) of Dr. Agarwal’s Health, India’s largest eye care services provider, has generated significant buzz in the investment community. With a robust track record of growth, a scalable business model, and strong operational efficiency, this IPO presents a compelling opportunity for investors eyeing the healthcare sector. Here’s a detailed Dr Agarwals Health IPO Review, business model, and market potential, designed to help investors make an informed decision.
Table of Contents
#1 Dr Agarwals Health IPO Review: Market Leadership in Eye Care Services
Dr. Agarwal’s Health holds the largest market share—approximately 25% of the organized eye care services market in India FY 2024. Their revenue for FY 2024 was nearly 1.7 times that of the second-largest competitor, highlighting their significant leadership in the field. As of 30 September 2024, Dr Agarwal operates 209 facilities, including 193 in India and 16 internationally. These facilities are distributed across 117 cities in 14 Indian states, four union territories, and nine African countries. This extensive presence ensures accessibility and brand visibility in both metro and non-metro regions.
The company serves as a trusted name, treating over 2.13 million patients annually, including 2,20,523 surgeries in FY 2024. In H1 FY 2025 alone, the company performed 1.15 million patients served and 1,40,787 surgeries, emphasizing its scalability. Its diversified offerings range from cataract and refractive surgeries to non-surgical treatments and retail products such as optical lenses and eye care pharmaceuticals.
#2 Dr Agarwals Health IPO Analysis: Strong Market Potential and International Expansion
India’s eye care market was valued at INR 37,800 crore in FY 2024 and is projected to grow at a CAGR of 12%-14%, reaching INR 55,000–65,000 crore by FY 2028. Additionally, the organized eye care service chain market in India accounts for just 13%-15% of the total market, leaving significant headroom for growth.
Dr. Agarwal’s commenced operations in Africa in 2012 and now operates 16 facilities across nine countries, providing specialized services for cataracts, glaucoma, diabetic retinopathy, and other ailments. This international footprint provides additional avenues for growth beyond India.
#3 Dr Agarwals Health IPO Review: Offer Details
Dr. Agarwal’s Health IPO is set to open for subscription from January 29 to January 31, 2025, with trading expected to kick off on February 5, 2025. This IPO includes an Offer for Sale (OFS) of 6,78,42,284 shares and a Fresh Issue worth INR 300 crore, bringing the total issue size to a range of INR 2,891.57 – 3,027.26 crore. Additionally, 11,29,574 shares are reserved for shareholders. Investors can place bids in lots of 35 shares, with each lot priced at INR 14,070. Retail investors are allocated a 35% reservation, and the IPO will be listed on both the BSE and NSE.
#4 Dr Agarwals Health IPO Analysis: Robust Financial Growth
Dr. Agarwal’s has consistently demonstrated strong financial performance:
Revenue from operations grew to INR 1,332.15 crore in FY 2024, reflecting a 30.86% increase from INR 1,017.98 crore in FY 2023. EBITDA surged to INR 406.55 crore in FY 2024, with a CAGR of over 42% from FY 2022 to FY 2024. Operating profit margins also improved, with EBITDA for H1 FY 2025 reaching INR 228.47 crore, up 28.13% from H1 FY 2024. The company’s asset-light hub-and-spoke model supports its rapid expansion with minimal upfront investment, driving efficiencies and improving profitability.
| FY2022 | FY2023 | FY2024 | H1 FY 2025 | |
| Revenue | 696.08 | 1,017.98 | 1,332.15 | 820.06 |
| Expenses | 657.02 | 947.90 | 1,235.88 | 777.59 |
| Net income | 37.69 | 94.10 | 83.06 | 28.56 |
| Margin (%) | 5.41 | 9.24 | 6.23 | 3.48 |
| ROCE (%) | 15.02 | 15.18 | 14.61 | 8.30 |
| EBITDA (%) | 27.99 | 27.52 | 29.54 | 27.27 |
#5 Dr Agarwals Health IPO Review: Scalable Hub-and-Spoke Model
Dr. Agarwal’s operates on a “hub-and-spoke” structure, featuring:
- 28 hubs (tertiary facilities and centers of excellence) with super-specialty surgical capabilities.
- 165 spokes, including primary and secondary facilities, ensuring accessibility and geographic reach.
This model not only enhances efficiency by centralizing resources but also enables deeper penetration into metro and non-metro cities.
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#6 Dr Agarwals Health IPO Analysis: End-to-End Eye Care Services
The company offers a comprehensive range of eye care services, including:
- Cataract surgeries: Advanced options such as robotic cataract surgery and glued intraocular lens procedures.
- Refractive surgeries: Laser-assisted techniques like LASIK and SMILE treatments.
- Other surgeries: Corneal transplants, glaucoma treatments, and retinal procedures.
- Non-surgical treatments: Retinal laser therapy, dry eye treatments, and diagnostic services.
Dr. Agarwal’s Health also generates revenue through the sale of optical products (glasses, lenses) and pharmaceuticals, which contributed significantly to the company’s growth.
#7 Dr Agarwals Health IPO Review: Comparison with Listed Peers
Dr. Agarwal’s Health Care primarily operates in the eye care specialty space, a segment with few listed competitors. The company’s closest peer in the Indian market is Narayana Hrudayalaya Limited, which has a diversified portfolio spanning multiple healthcare specialties.
From a financial perspective, Dr. Agarwal’s Health Care reported revenue growth of approximately 18% CAGR over the past three years. Its EBITDA margins, standing at 25% as of FY 2024, are competitive within the healthcare sector, surpassing some of its listed peers. Additionally, the company’s Return on Equity (RoE) for FY 2024 is around 16%, reflecting effective capital deployment compared to industry averages.
#8 Dr Agarwals Health IPO Analysis: Strengths
- Market Leadership in Eye Care: Dr. Agarwal’s Health Care is a recognized name in eye care services, with a network of over 150 centers in India and a growing presence in Africa. Its trusted brand name and advanced medical infrastructure position it as a market leader in this niche segment.
- Expanding International Presence: The company has strategically ventured into international markets such as Mozambique, Ghana, and Kenya. These regions offer untapped potential and higher profitability due to lower competition.
- Robust Financials and Growth Trajectory: With revenues touching INR 950 crore in FY2024, the company has demonstrated steady growth. Its profitability is backed by efficient cost structures, rising patient footfall, and a focus on high-margin surgeries and procedures.
- Cutting-Edge Technology and Skilled Workforce: Dr. Agarwal’s Health employs state-of-the-art technology for procedures like cataracts, LASIK, and retinal surgeries. Coupled with a highly skilled team of doctors and medical staff, the company has a strong competitive advantage.
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#9 Dr Agarwals Health IPO Review: Risks and Threats
- Dependency on Key Markets: A large portion of the company’s revenue is derived from its Indian operations, making it susceptible to regulatory changes or competitive pressures within the country.
- Intense Competition: Although it dominates the eye care niche, the company faces competition from both organized and unorganized players, which could impact its pricing power and margins.
- Regulatory Risks: The healthcare sector is tightly regulated, and any adverse policy changes or compliance issues could impact operations.
- High Debt Levels: The company has a net debt of approximately INR 400 crore as of September 2024. While the IPO proceeds will be used to pare down some of this debt, the leverage remains a factor to watch.
#10 Why Investors Should Watch Dr Agarwals Health IPO?
Dr Agarwal’s Eye Hospital combines market leadership, comprehensive service offerings, and a scalable business model, positioning it as a compelling investment opportunity. Dr. Agarwal’s Health IPO presents an exciting opportunity for investors looking to capitalize on India’s growing healthcare sector. As the largest and most trusted eye care chain in the country, the company’s strong financial performance, scalable business model, and leadership position make it a compelling choice. With the Indian eye care industry poised for rapid growth and the company’s demonstrated ability to capitalize on emerging opportunities, the IPO offers a promising entry point for investors seeking long-term value.
