/** blogpostTitle: HCG FY26: Profitable growth, deleveraging, and a sharper oncology focus blogpostSlug: hcg-fy26-results blogpostCoverImageUrl: null blogpostCoverImageDescription: An ultra realistic corporate finance scene showing a clean dashboard on a laptop with three key charts derived from the document: a revenue growth line rising from FY25 to FY26, an EBITDA margin bar comparison for FY25 vs FY26, and a net debt bar chart dropping from Mar 2025 to Mar 2026. In the background, a modern hospital corridor and a subtle radiation therapy machine silhouette to reflect oncology operations. Neutral lighting, professional office setting, no logos, no text labels. blogpostShortTitle: HCG FY26 results and growth plan */

HCG FY26: Profitable growth, deleveraging, and a sharper oncology focus

HealthCare Global Enterprises Limited closed FY26 with a clear message to investors: growth will continue, but it will be profitable and capital efficient. The company reported consolidated revenue from operations (including government grants) of INR 2,545.4 crore for FY26, up 15% year on year. Adjusted EBITDA rose 19% to INR 471.1 crore and the adjusted EBITDA margin improved to 18.5%.

The March quarter also showed operating leverage. Q4FY26 revenue was INR 652.3 crore, up 11% year on year, while adjusted EBITDA grew 17% to INR 125.2 crore. Adjusted EBITDA margin expanded to 19.2% in the quarter. Adjusted PAT for Q4FY26 was INR 34.1 crore (post Ind AS, normalized for exceptional items as disclosed), versus INR 7.4 crore in Q4FY25.

A key nuance in management commentary was that Q4 growth was held back by two deliberate or external factors. First, management said it consciously pared down low-margin business. Second, it cited disruption in medical value travel flows due to the Middle East conflict. Despite these, the company maintained that medium-term revenue growth should normalize close to about 15%.

Network performance: broad-based growth with region-level levers

HCG’s FY26 performance was not dependent on a single hospital. The company highlighted broad-based growth across clusters.

In South, Q4FY26 revenue was INR 260.7 crore, up 9% year on year, with FY26 revenue of INR 995.0 crore. Volumes in the cluster grew 6% year on year in Q4, but management noted softer international patient contribution.

The West cluster remained the largest contributor. Q4FY26 revenue was INR 286.5 crore, up 13% year on year, and FY26 revenue was INR 1,133.0 crore, up 14% year on year. Management also stated that in Q4, the cash plus TPA mix improved by over 2% year on year.

East delivered steady growth with some case-mix volatility. Q4FY26 revenue was INR 69.9 crore, up 8% year on year, and FY26 revenue was INR 283.0 crore, up 11% year on year. ARPP in the quarter dipped 4% year on year, with the investor presentation attributing it to clinical transitions in Kolkata that impacted the case mix. Management said a new doctor team is expected to be onboarded in Kolkata in Q1 FY27.

International business in Kenya continued to scale, even though it is still a smaller part of the portfolio. Revenue for Kenya was INR 19.6 crore in Q4FY26, up 39% year on year, and INR 74.0 crore for FY26, up 71% year on year.

Financial summary: FY26 and Q4 snapshot

Note: Adjusted PAT is normalized for disclosed exceptional items in FY26 and Q4FY26 as per the investor presentation.

Mix and monetization: where revenue comes from

HCG provided a modality mix and payor mix for FY26 (excluding fertility, and with payor mix excluding fertility and international business).

By specialty or modality, medical oncology is the largest contributor at 38% of revenue, followed by surgical oncology at 21% and OP oncology services at 16%. Radiation oncology contributes 14% and non-oncology specialties 11%.

On payors, the company disclosed a mix of 65% from cash, TPA and corporate, 33% from government schemes, and 2% from medical value travel. Management also indicated it is working on optimizing payor mix, with recent quarters seeing a favorable move of around 100 basis points.

A key metric used by the company to frame future runway is “center utilization,” which management clarified is a blended indicator and not the same as bed occupancy. It includes utilization across chemo beds, operating theatres, and radiation assets. FY26 utilization was disclosed at 58% overall, with South at 68%, West at 50%, and East at 57%. In management’s framing, that supports the argument that meaningful growth can still come from the existing network.

Capital allocation: capex, deleveraging, and headroom

FY26 capex was INR 288.5 crore, up from INR 219.7 crore in FY25. The largest spend was in South (INR 180.4 crore), which includes investments such as the North Bangalore facility.

Balance sheet strengthening was a major highlight. The company completed a rights issue to raise INR 425 crore, which it said was oversubscribed by 1.3 times. Net debt excluding leases reduced to INR 338.7 crore as of March 31, 2026, from INR 631.7 crore as of March 31, 2025. Net debt including leases reduced to INR 1,163.6 crore from INR 1,466.7 crore.

Management also discussed leverage guardrails on the concall. It stated an internal ceiling of around 2.5x net debt to EBITDA, with current levels around 1.4x. It also guided that interest cost should reduce after debt repayment, and disclosed an average interest cost of about 8%.

Growth projects: North Bangalore, Whitefield rethink, and 200+ brownfield beds

HCG commenced operations at its North Bangalore facility in FY26. The investor presentation described it as a comprehensive oncology center with a 110-bed installed capacity, 5 operating theatres, a PET-CT facility, and 2 radiation units including MR-LINAC. Management added on the call that MR-LINAC is on a pay-per-use basis to keep the model asset-light.

For Whitefield, the company disclosed that it is evaluating an alternate location. The capex table shows INR 13.7 crore incurred to date, but management said the current infrastructure is smaller than specifications. It is looking for an asset that can support about 120 to 130 beds, reflecting a larger opportunity in the Whitefield market.

The most specific near-term growth plan is brownfield expansion. The company reiterated a 200+ bed addition over the next 24 months. On the call, management provided a city-level breakup: 75 beds in Cuttack, 30 in Ranchi, 50 in Vizag, and 20-plus in Bhavnagar. It also disclosed a unit economics estimate of about INR 45 lakh per bed, implying roughly INR 90 to 100 crore of capex for the 200 beds.

Over a longer horizon, management stated it plans to add about 1,000 beds by FY30, with 400 expected via greenfield expansion and 600 via brownfield expansion.

Portfolio focus: Milann exit to sharpen oncology strategy

The company announced a divestment of Milann, its fertility business, to Invigya Healthcare Fund I. The transaction values Milann at an enterprise value of INR 63.2 crore. The equity consideration is INR 37.6 crore, payable in two tranches: 75% upfront on closing and 25% within 18 months. The transaction is expected to close within Q1 FY27.

Management said Milann’s footprint declined from 9 centers to 6 and the business operated at low EBITDA margins, marginally above break-even on a post-rent basis. It stated that reviving and scaling Milann would require management bandwidth and capital that are not aligned to HCG’s current focus on oncology.

Closing takeaways

HCG’s FY26 narrative is centered on profitable growth, improving return metrics, and a more focused portfolio. Revenue growth of 15% came alongside margin expansion, while the balance sheet deleveraged after the rights issue and cash generation.

The near-term playbook is clear in the documents: increase utilization across the existing network, expand capacity via brownfield additions in specific centers, and strengthen differentiation through clinical capabilities and technology such as MR-LINAC. With Milann classified as held for sale and expected to be divested in Q1 FY27, the company is positioning itself as a more concentrated oncology platform with greater capital allocation clarity.