HCG expansion plan: 1,000 beds, 10 LINACs by 2031

What HCG announced and why it matters

Healthcare Global Enterprises (HCG), positioned as India’s largest cancer care provider, has set out a multi-year expansion blueprint that combines bed additions and fresh investments in radiation therapy equipment. The company has said it plans to add 1,000 beds and install 10 new Linear Accelerators (LINACs) over the next five years. Management commentary across interactions also points to a calibrated mix of brownfield additions at existing centres and greenfield entry into new cities. The plan matters for investors because it ties capacity creation to operating targets, including EBITDA margin and return on capital employed (ROCE) goals over the next 3-5 years.

Current network footprint and capacity base

HCG said it currently operates 22 comprehensive cancer centres, including one cancer care centre in Nairobi, Kenya. It also has four multi-specialty hospitals. The network’s India bed capacity has been cited at 1,944, with 1,702 beds operational. In management material, HCG also highlighted a longer-term network picture of 25 hospitals and 2,500+ beds capacity, indicating the direction of travel for scale.

The 1,000-bed expansion mix: brownfield plus greenfield

HCG’s stated bed addition target is about 1,000 beds, with roughly 700 beds planned through brownfield expansion and 200-400 beds through greenfield projects. Brownfield expansion has been described as focused on existing high-potential markets, including Ahmedabad, Vizag, Baroda, and Cuttack. For greenfield, management said it is evaluating options in 10 to 12 cities, naming Pune, Surat, Coimbatore, and other markets, and another disclosure referenced Pune, Surat, Varanasi, and Kanpur among identified locations.

Specific brownfield bed additions disclosed by management

In one set of project-level details, Dr. Manish Mathu said brownfield expansions would add 75 beds in Cuttack, 30 in Ganji, 50 in Waizai, and 20 in Bhavnarab. These add up to around 200 beds. Separately, management commentary referenced construction of 125 beds in North Bengaluru and Whitefield as progressing, and also noted that 250 beds of capacity were already in place but yet to be operationalised within a broader multi-year expansion plan.

Whitefield relocation and Bengaluru expansion priorities

Dr. Manish Mathu said the Whitefield facility is being relocated to address a larger market opportunity, with an aim of 120-130 beds. Alongside that, ongoing construction has been referenced for 125 beds in North Bengaluru and Whitefield. The direction indicates HCG is using Bengaluru as a key hub market while also resizing assets where it sees stronger demand potential.

LINAC additions and technology investment plan

HCG’s five-year plan includes adding 10 new LINACs. In another management update, CEO Raj Gore said HCG intends to add six LINACs to its own inventory within the next 1-2 years. The company has also framed its expansion as including continued investment in advanced technologies, alongside patient experience and digital transformation.

Capex, profitability targets, and operating triggers

HCG outlined a four-pillar strategy built around network optimisation, strategic expansion, operational efficiency, and enhanced patient experience. It has linked this to an aspiration of 21%-22% EBITDA margins and 20%+ ROCE over the next 3-5 years through a ₹600-700 crore capex investment. Founder and Chairman BS Ajaikumar also said the company aims to maintain around a 20% EBITDA margin despite medium-term expansion plans and that it generally considers further expansion when occupancy reaches 70-75%. On near-term trajectory, the company guided for +18.5% margins in Q4, with 100-200 bps margin expansion in FY26.

Near-term additions and growth expectations

For FY26, HCG said it plans to add 150 beds to its portfolio. Ajaikumar stated the full expansion plan is still being finalised, but it has already been budgeted for. On growth, the company expects overall revenue growth of around 15% over the next three years, and it has also communicated an intent to grow revenue above industry rates.

International patient strategy and hub-and-spoke approach

HCG is targeting a higher share of international patients, with management noting international patients are currently about 3% of sales. The company has pointed to relationships across Africa, the Middle East, and South East Asia as part of that effort. Separately, HCG has described a hub-and-spoke model for scaling cancer care, and in one project disclosure said it is developing a state-of-the-art hospital in Gurugram over three acres with around 200 beds, expected to be completed in six to eight months from the stated timeline. It also noted Bengaluru as its existing hub.

Inorganic growth: evaluations ongoing, no major update

HCG’s management has said it is exploring both organic and inorganic opportunities over the next 3-5 years. CEO Raj Gore told BT that the company is actively evaluating inorganic opportunities in cancer care that are value accretive, including the possibility of acquiring hospitals and partnering with smaller healthcare facilities to provide tertiary and quaternary care. However, another update in the provided material said that while evaluations for inorganic growth are ongoing, there are no major updates at this time.

Key figures at a glance

Brownfield project-level bed additions mentioned

Market impact and what investors will track

The expansion plan sets up a clear set of operational markers that investors typically monitor in hospital businesses: occupancy progression, ramp-up of new centres, and the pace of capex deployment against returns. HCG has explicitly tied expansion decisions to occupancy levels, citing 70-75% as a usual threshold for considering further capacity addition. The company’s international patient strategy could become more material if the current 3% of sales meaningfully rises, but HCG has not provided a quantified target in the disclosures shared. Another near-term datapoint will be whether FY26’s 150 planned bed additions and the 1-2 year plan for six LINACs proceed on the indicated timetable.

Conclusion

HCG’s stated roadmap combines scale-up in beds, faster access to LINAC capacity, and a margin and ROCE framework supported by ₹600-700 crore of planned capex over 3-5 years. Management has also flagged ongoing evaluation of greenfield sites across 10-12 cities and inorganic opportunities, though it has not shared a major acquisition update so far. The next set of checkpoints for the market will likely be execution on FY26’s planned bed additions, progress on Bengaluru and Whitefield projects, and the pace of LINAC commissioning.