HealthCare Global Enterprises (HCG) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly results in Q2 FY25, with consolidated revenue of INR 55,247 lakhs, up 14–15% year-over-year, and H1 FY25 revenue up to INR 107,716 lakhs.

• Adjusted EBITDA margin improved to 18.8% in Q2 FY25, with profit after tax rising 61% year-over-year to Rs 276 mn.

• Digital initiatives significantly boosted patient acquisition and revenue, with digital channel revenue rising to 13.5–14% of total revenue in Q2 FY25.

• The company expanded through acquisitions, including MG Hospital in Vizag, and operationalized new centers in Ahmedabad and other cities.

• Board approved major business transfers and acquisitions, including a controlling stake in Vizag Hospital and Cancer Research Centre Private Limited.

Financial highlights

• Q2 FY25 consolidated revenue was INR 55,247 lakhs, with HCG centers (excluding Milann) delivering 15% year-over-year growth.

• Adjusted EBITDA reached INR 104.2 crores, a 21% year-over-year increase, and ARPOB grew 7.4% to INR 45,188.

• OPD footfalls increased by 9%, accounting for 18% of revenue; chemotherapy sessions rose 14% year-over-year.

• Capacity utilization for Linac machines reached 70%, up from 55% in the previous quarter.

• CapEx for the quarter was INR 52 crores, with H1 FY25 CapEx at INR 137.2 crores and full-year guidance of INR 250–300 crores.

Outlook and guidance

• International revenue declined 17% due to geopolitical challenges, but normalization is expected by Q4 FY25.

• Margin expansion remains a focus, with adjusted EBITDA margin targeted to reach 20% by Q4.

• Digital revenue is expected to reach 25% of total revenue in the next 3–5 years.

• Asset-light expansion and improved utilization metrics are key levers for future capital efficiency.

• ETR is expected to remain below 28% for the full year.