HealthCare Global Enterprises (HCG) Q3 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly revenue of INR 559 crore in Q3 FY25, up 19% year-over-year, with robust growth in both metros and non-metros and a focus on advanced technology and patient-centric care.

• Oncology business grew 24% post-MG Hospital Visakhapatnam acquisition; emerging centers saw 25% growth, and the group now operates 22 cancer care centers and 4 multi-specialty hospitals.

• KKR acquired a majority stake from CVC, with CVC now a public shareholder and Dr. Ajaikumar remaining as promoter; board approved unaudited results and revised governance terms.

• Focus remains on precision oncology, research, academic excellence, and digital transformation, with continued expansion and restructuring.

• Board approved and completed major acquisitions, including 51% in Vizag Hospital and Cancer Research Centre, with further stake commitments.

Financial highlights

• Q3 FY25 consolidated revenue: INR 559 crore (+19% YoY); nine months revenue: INR 1,638 crore (+15% YoY); adjusted EBITDA for Q3: INR 92.3 crore (+15% YoY), margin at 16.5%; PAT growth of 23%.

• Digital channel revenues grew 114% YoY for 9MFY25, now contributing 14% of topline.

• Core HCG centers (excluding Milann) saw 21% revenue and 15% EBITDA growth YoY, with 20% EBITDA margin.

• MG Hospital contributed INR 25 crore revenue at 24% margin in Q3; one-time M&A cost of Rs 25 mn for the acquisition.

• Standalone net loss for Q3 FY25: Rs (3,733) lakhs, with an exceptional impairment of Rs 3,482 lakhs on investment in HCG NCHRI Oncology LLP.

Outlook and guidance

• Confident of robust Q4 FY25 growth in both revenue and EBITDA, with margin expansion of 1-1.5% expected next year as seasonality fades and new centers ramp up.

• Plans for brownfield and greenfield expansion, aiming for 45%+ market share in Bangalore and asset-light growth.

• Established centers expected to sustain 13-14% growth, outpacing market rate; emerging centers to ramp up profitability.

• International patient business expected to normalize, maintaining 3.5-4% revenue contribution.

• Restated SHA with Aastha Oncology and HCG Medi-Surge Hospitals to impact future governance and exit terms.