HealthCare Global Enterprises (HCG) Q1 25/26 earnings summary

Executive summary

• Largest pan-India oncology hospital chain with 22 cancer care centers and leading positions in 16 of 18 cities.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2025 were approved by the Board and reviewed by auditors with unqualified opinions.

• Focused on digital and brand transformation, margin and ROCE expansion, and personalized patient-centric care.

• Strong clinical outcomes, globally comparable survival rates, and ultralow treatment costs.

• The company operates a single segment: setting up and managing hospitals and medical diagnostic services.

Financial highlights

• Q1FY26 consolidated revenue grew 17% year-over-year to Rs 6,132 mn; standalone revenue at Rs 32,593 lakhs, up from Rs 31,360 lakhs.

• Adjusted EBITDA margin improved by 56 bps to 18.2% in Q1FY26.

• Profit after tax (pre-Ind AS) declined 56% year-over-year to Rs 175 mn; consolidated net profit attributable to owners was Rs 475 lakhs, down from Rs 1,208 lakhs.

• FY25 revenue reached Rs 22,181 mn, 15% CAGR since FY20; FY25 EBITDA at Rs 3,873 mn, 18% CAGR.

• PAT margin for FY25 at 2.0%, EPS at 3.1; basic EPS (consolidated) for the quarter was Rs 0.34, compared to Rs 0.87 last year.

Outlook and guidance

• Continued focus on margin and ROCE expansion, with established centers operating at ~17% ROCE and overall at ~13%.

• An open offer for up to 26% of expanded voting share capital at Rs 504.41 per share is open until 1 August 2025.

• Emerging centers expected to improve ROCE as they mature, following the trajectory of established centers.

• Ongoing capex in North Bangalore and Whitefield to support future growth.