Strong execution, stable margins despite greenfield drag

₹614 Cr vs ₹487 Cr YoY (+26.0%); vs ₹564 Cr implied QoQ base (+8.8%).

EBITDA ₹177 Cr (28.8% implied); OPM delivered 27.8%. Flat to slight compression, not expansion.

NPM delivered 8.9% in Q1 FY27. Exact match on level; expansion claim unverified vs Q1 FY26 baseline.

18 total greenfield facilities (16 surgical, 2 primary) opened in Q1 FY27.

Stated on call: 16.3% SSSG, 8% volume + 8% value breakdown. No external corroboration.

CFO explicit: 'green plot around INR20 crores at corporate EBITDA level.' Includes pre-operating losses.

18 facilities Q1 vs 10 in FY23; 'highest ever single quarter.' Plan confirmed 60 for FY27, but execution risk on compliance properties acknowledged.

High-end cataract 29.3% of 67K surgeries; Femto +33.4% YoY, SMILE +36.2%, retinal +30%. Realization ₹42K (from ₹28–30K four years ago).

₹20 Cr EBITDA loss on corporate level for FY26–FY27 centers. Prior call mentioned 'stable margins despite expansion'; now drag is concrete and multi-year.

Pre-FY23 facilities at 16.3% SSSG; management now calls 12–13% 'phenomenal' as aspiration, hinting saturation in mature South markets.

Premiumization 7.5%, price hike 0.5%, total value 8%. Volume 15% + value 8% + new centers = 26% total.

₹20 crores at corporate EBITDA level, includes FY26 and FY27 centers and pre-operating losses.

Acquisition liabilities ₹25 Cr paid; interest on lease liability ~₹18 Cr; deferred interest fell from ₹6.8 Cr to ₹3.6 Cr YoY.

Volume 8%, value 8%. OPD growth 6% (value) + 2% conversion. Newer cohorts have higher volume growth; mature facilities have balanced mix.

Delhi is largest driver (1 branch last year, 7 now). Punjab bounced back from Operation Sindoor/floods impact. Broad-based growth across all North branches.

Most (100 doctors added in 4 months) for new centers, especially Maharashtra and Delhi-NCR. Existing center additions minimal. Revenue will follow as centers mature.

Overall 16–17%, includes junior doctors and students. Senior doctors 2–3%, very low. Senior doctors rarely leave.

SSSG historically 16%, with 8% volume + 8% value. Realization has grown ₹28–30K→₹42K over 4 years. Femto adoption, insurance, disposable income support further growth, but pace may moderate. Not able to give a complete answer.

Femto adds ₹35K charge, license fee ₹10.5–11K. Gross margin will definitely go up on rupee basis and per-surgery basis.

Working on improving pace, benchmarked Q1. Pipeline strong, but ensuring right compliance properties first. Actively working on ramp-up acceleration.

Cohort up to FY26 growing ~16.5%, in line across Chennai, Bangalore. Endeavor is to continue similar pattern, but 12–13% is phenomenal; that's realistic aspiration.

COGS improved ~1%, gross margin up ~1%. Finance cost ₹24.7 Cr→₹23.5 Cr; deferred interest fell ₹6.8 Cr→₹3.6 Cr on ₹25 Cr acquisition payment.

In process of closing final items, expected mid-November 2026.

Q1: 18 done (16 surgical). Q2: 12 planned. H2: 30 planned. 30+ signed LOIs in pipeline. CFO confirmed 'remain confident on delivering on this full year plan.'

Q1 EBITDA 28.5%, OPM 27.8%. ₹20 Cr greenfield EBITDA loss is headwind, but underlying SSSG growth provides offset. Mature facility margin sustainability questioned by management itself (12–13% SSSG vs 16%+ target).

No specific capex number given. CEO mentioned 'few properties in pipeline' being readied, implying continued investment in facility fit-out and clinical onboarding.

₹20 Cr EBITDA loss on ~40–50 early-stage facilities (FY26–FY27 vintage). If ramp takes 3+ years instead of 2, or if mature-state realization is 10% below plan, losses extend.

Pre-FY23 mature facilities at 16.3% SSSG. Management now frames 12–13% as aspirational, suggesting saturation in dense South markets. Realization growth from ₹42K base becoming harder to sustain at 10% annual pace.

Merger expected mid-November 2026. Management mentioned 'closing some final items' but no detail on integration plan, capex, or synergy targets. Execution risk post-close.

Avg cataract realization grown ₹28–30K→₹42K over 4 years via premiumization (Femto, better lenses) and insurance growth. If insurance growth stalls or macro weakens, realization plateau accelerates.

100 doctors added in 4 months for new facilities; doctor cost 34% of revenue. Revenue benefit lags 2–3 quarters. If facility ramp delays or growth stalls, cost becomes permanent drag.