HCG Q2 FY27 revenue rose 16% as EBITDA margin expanded to 19.7%

HealthCare Global Enterprises Limited (HCG) reported Q2 FY27 revenue of Rs 731.8 crore, up 15.8% year-on-year, as patient volumes rose 9% and average revenue per patient increased 7%. Adjusted EBITDA rose 17.2% to Rs 142.5 crore, lifting the adjusted EBITDA margin by 51 basis points to 19.7%.

How did HCG perform in Q2 FY27?

HCG’s consolidated revenue from operations reached Rs 731.8 crore in Q2 FY27, compared with Rs 632.1 crore in Q2 FY26, an increase of 15.8%. For H1 FY27, revenue was Rs 1,410 crore, up 14.6% from Rs 1,230.3 crore in H1 FY26. The reported figures exclude the fertility business following its divestment effective 30 June 2026.

Adjusted EBITDA, or earnings before interest, tax, depreciation and amortisation, increased to Rs 142.5 crore from Rs 121.5 crore in the comparable quarter. The resulting 19.7% margin was 51 basis points higher than Q2 FY26’s 19.2%; one basis point equals one-hundredth of a percentage point. In H1 FY27, adjusted EBITDA rose 18.3% to Rs 274 crore and the margin reached 19.7%, versus 18.8% a year earlier.

Profit before tax before extraordinary items increased 48.1% to Rs 30.1 crore from Rs 20.3 crore. Adjusted profit after tax, however, declined 9.3% to Rs 19.2 crore from Rs 21.2 crore. HCG said the year-earlier quarter included a favourable one-time deferred-tax adjustment relating to brought-forward losses and unabsorbed depreciation at Baroda, which affected the comparison.

What drove HCG’s revenue growth and margin increase?

HCG said the 15.8% revenue increase came from a 9% rise in patient volumes and a 7% increase in average revenue per patient, or ARPP. Management attributed ARPP growth to a favourable payor mix and higher contribution from advanced oncology treatments. The quarter’s growth therefore combined higher patient activity with greater revenue per patient.

HCG reported that robotic surgeries increased 37% year-on-year in Q2 FY27, alongside other high-end therapies. Management said the revenue mix was also supported by its non-institutional business, whose share increased 325 basis points year-on-year to 69%. HCG linked the overall margin movement to operational efficiencies, a better revenue mix and higher-complexity oncology care.

International business provided another growth component, with revenue rising approximately 54% year-on-year to Rs 30.2 crore in Q2 FY27. HCG attributed that increase to higher patient volumes in radiation oncology and medical oncology. Although the source does not provide a prior-year international revenue figure, the disclosed growth rate was above consolidated revenue growth of 15.8%.

What capacity and clinical capabilities did HCG add?

HCG added 25 operational beds in Q2 FY27, taking its H1 FY27 additions to 146 beds. The quarterly additions comprised 13 beds in Kenya, seven in Kolkata and five in Nagpur. Management said its priorities include improving asset utilisation, accelerating the ramp-up of newer facilities, enhancing network productivity and executing strategic capacity expansions.

HCG operationalised an adaptive radiation therapy system known as MR-LINAC at North Bengaluru, a linear accelerator, or LINAC, in Africa, and a cardiac robotic surgery system at HMS Ahmedabad. North Bengaluru’s Q2 FY27 loss of Rs 6.1 crore was excluded from adjusted EBITDA, while the H1 FY27 North Bengaluru loss excluded was Rs 13.1 crore. HCG also excluded employee stock option plan costs of Rs 3 crore in Q2 FY27 from adjusted EBITDA.

HCG disclosed several clinical additions during the quarter. HCC Ahmedabad performed its first chimeric antigen receptor T-cell, or CAR-T, therapy; KR introduced robotic breast surgery and two nuclear-medicine tracers; Rajkot added robotic spine surgery; and Baroda introduced transoral robotic surgery. A 1,212-gene liquid-biopsy panel was launched at KR as part of HCG’s precision-diagnostics offering.

What do HCG’s first-half results show?

HCG’s H1 FY27 revenue of Rs 1,410 crore was Rs 179.7 crore above H1 FY26 revenue of Rs 1,230.3 crore, while adjusted EBITDA rose Rs 42.4 crore to Rs 274 crore. The first-half adjusted EBITDA margin expanded 84 basis points to 19.7%, a larger improvement than the 51-basis-point increase recorded in Q2 alone.

Adjusted profit after tax for H1 FY27 increased 29.2% to Rs 35.8 crore from Rs 27.7 crore, unlike the Q2 year-on-year decline. Profit before tax before extraordinary items rose 68.4% to Rs 55.3 crore from Rs 32.8 crore. HCG separately noted an extraordinary item of Rs 11.6 crore, with a post-tax impact of Rs 9.9 crore, in the adjustment used to calculate adjusted profit after tax.

Management’s stated priorities include the ramp-up of newer facilities, productivity, asset utilisation and capacity expansion following the 146 beds added in H1 FY27. Dr. Manish Mattoo, HCG’s chief executive officer, said the company remained focused on sustainable and profitable growth while broadening access to advanced cancer care.

Conclusion

HCG’s Q2 FY27 performance combined a 9% increase in patient volumes, 7% ARPP growth and a 37% rise in robotic surgeries with a 51-basis-point improvement in adjusted EBITDA margin. The comparison with H1 FY26 also showed faster adjusted EBITDA growth of 18.3% than revenue growth of 14.6%, while adjusted profit after tax rose 29.2% for the half year despite the Q2 comparison being affected by a prior-year tax adjustment.

The next disclosed execution points are the ramp-up and utilisation of the 146 beds added in H1 FY27, including 25 beds added in Q2, and productivity from the MR-LINAC, Africa LINAC and robotic-surgery systems. Management has identified newer-facility ramp-up, asset utilisation, network productivity and strategic capacity expansions as continuing priorities, while North Bengaluru losses excluded from adjusted EBITDA remain a disclosed factor to monitor.