HealthCare Global Enterprises (HCG) Q4 25/26 earnings summary

Executive summary

• FY 2026 marked a year of profitable, broad-based growth with a sharpened focus on oncology, supported by audited standalone and consolidated financial results and unmodified audit opinions.

• Strategic milestones included the launch of the North Bangalore oncology center, clinical innovations, and strengthening of the management team.

• Divestment of the Milann fertility business (BACC Healthcare Private Limited) was approved and completed to focus capital and management on core oncology operations.

• Rights issue completed, raising significant capital to strengthen the balance sheet and enable future investments.

• ROCE improved to 14% in FY26, reflecting higher utilization and disciplined capital allocation.

Financial highlights

• FY26 consolidated revenue was INR 2,545 crore (INR 25,454 Mn), up 15% YoY; Q4 FY26 revenue reached INR 652 crore (INR 6,523 Mn), up 11% YoY.

• Adjusted EBITDA for FY26 was INR 471.1 crore (INR 4,711 Mn), up 19% YoY, with margin expansion to 18.5%.

• Q4 FY26 Adjusted EBITDA was INR 125 crore (INR 1,252 Mn), up 17% YoY; Adjusted PAT for FY26 increased 25% YoY to INR 557 Mn, normalized for exceptional items.

• Net debt reduced to 1.4x EBITDA (INR 3,387 Mn), with strong operating cash flow conversion at 75%.

• Standalone and consolidated equity and cash balances increased significantly due to the rights issue.

Outlook and guidance

• Medium-term revenue growth guidance remains at 15%, with margin expansion expected through payer mix optimization and cost discipline.

• Growth will be driven by brownfield expansions, new centers, clinical talent additions, and digital initiatives.

• 1,000 new beds targeted by FY 2030, with 200+ beds planned in the next 24 months across key markets.

• Continued focus on core hospital and diagnostic services, with ongoing investments in subsidiaries.