HealthCare Global Enterprises (HCG) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly results in Q2 FY25, with consolidated revenue of INR 553.5 crores (Rs 5,378 mn), up 14–15% year-over-year, and H1 FY25 revenue of INR 107.9 crores (Rs 10,490 mn), also up 14–15% year-over-year.

• Adjusted EBITDA reached INR 104.2 crores, up 21% year-over-year, with margins improving to 18.8% from 17.8% in Q2 FY24.

• Oncology business grew 20% after adjusting for the exited MSR Bangalore center; digital initiatives now contribute 13.5–14% of total revenue, up from 4% two years ago.

• Expansion through acquisitions and brownfield projects, including new centers in Ahmedabad and Visakhapatnam, and plans to add over 900 beds in three years.

• 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: INR 553.5 crores (Rs 5,378 mn), up 14–15% year-over-year; H1 FY25: INR 107.9 crores (Rs 10,490 mn), up 14–15%.

• Adjusted EBITDA: INR 104.2 crores, up 21% year-over-year; margin at 18.8% (Q2 FY25) vs 17.8% (Q2 FY24).

• PAT for Q2 FY25: INR 18.2–18.3 crores (Rs 276 mn); adjusted for one-time items: INR 15.3–15.4 crores.

• Digital revenues increased 4.7x from Q2 FY23 to Q2 FY25, now contributing 13.5–14% of topline.

• ARPOB grew 7.4% to INR 45,188; established centers at INR 43,394 (+7%), emerging centers at INR 72,652 (+10%).

Outlook and guidance

• Expect continued double-digit revenue growth and margin expansion, aiming for 20% EBITDA margin by Q4 FY25.

• International business expected to recover by Q4 FY25 after a 17% decline due to geopolitical issues.

• Digital revenue targeted to reach 25% of total revenue in 3–5 years.

• CapEx guidance for FY25 is INR 250–300 crores.

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