HCG Q2 revenue rises 16% as cash and TPA mix lifts ARPP

HealthCare Global Enterprises Limited reported Q2 FY27 revenue of Rs 731.8 crore, up 16% year on year, as patient volumes rose 9% to 82,405 and average revenue per patient, or ARPP, increased 7% to Rs 88,805. HCG attributed the ARPP gain to a favourable payor mix and higher contribution from advanced therapies.

Why did HCG’s Q2 FY27 revenue rise 16%?

HCG’s Q2 FY27 revenue rose 16% because volume growth of 9% and ARPP growth of 7% both contributed to the Rs 731.8 crore result. Revenue increased from Rs 632.1 crore in Q2 FY26, while patient volumes rose from 75,928 to 82,405. HCG said growth was broad based across its three operating regions.

The company said the ARPP increase reflected a favourable payor mix and increased use of high-end therapies. Robotic surgeries grew 37% year on year in Q2 FY27, alongside other advanced treatments. The presentation does not quantify how much of the 7% ARPP increase came separately from payor categories, robotic surgery or other therapies.

Adjusted earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 17% to Rs 142.5 crore, and its margin improved to 19.7% from 19.2% a year earlier. These reported comparisons exclude the fertility business following its divestment effective June 30, 2026. HCG’s adjusted EBITDA excludes Rs 6.1 crore of North Bangalore losses and Rs 3 crore of employee stock option plan, or ESOP, expense in Q2 FY27.

How did HCG’s payor mix change in H1 FY27?

HCG increased the share of cash and third-party administrator, or TPA, business while reducing government business in H1 FY27. Cash represented 41% of payor mix, up from 39% in H1 FY26, while TPA increased to 18% from 17%. Government business declined to 31% from 34%, in line with HCG’s stated strategy of increasing cash and TPA business.

Cash and TPA together accounted for 59% of H1 FY27 payor mix, compared with 56% a year earlier. Corporate payors remained at 8%, and medical value travel remained at 2% in both periods. The 3-percentage-point reduction in government share was the largest change among the listed categories.

The payor mix data exclude fertility and international business, so they do not cover every HCG revenue stream. HCG also reported that non-institutional mix rose 325 basis points year on year to 69% in Q2 FY27. One basis point equals one-hundredth of a percentage point, and the company linked this mix movement to the quarter’s ARPP improvement.

Which HCG regions drove Q2 FY27 growth?

HCG’s East region posted the fastest Q2 FY27 revenue growth at 23%, while South recorded the largest ARPP increase at 14%. East revenue reached Rs 92.8 crore, compared with Rs 75.3 crore in Q2 FY26, as volumes rose 18% to 13,038. HCG said growth was broad based in the region and led by Ranchi.

South revenue increased 18% to Rs 294.1 crore, supported by ARPP of Rs 88,837 and volumes of 33,104. ARPP rose from Rs 78,203, while volume growth was 4%, showing that revenue per patient was the larger contributor to regional growth. HCG attributed South’s performance to Bangalore CoE and the ramp-up of the North Bangalore facility.

West remained the largest regional contributor, with Q2 FY27 revenue of Rs 314.7 crore, although its growth rate of 10% trailed South and East. West volumes rose 7% to 33,144 and ARPP increased 3% to Rs 94,938. HCG said Maharashtra performed strongly, while Gujarat growth moderated following institutional-mix rationalisation and lower use of high-value, lower-margin therapies moderated ARPP growth.

What changed in HCG’s specialty mix and capacity?

HCG’s medical oncology share increased to 40% in H1 FY27 from 39% in H1 FY26, while non-oncology declined to 11% from 12%. Radiation oncology remained at 14%, surgical oncology at 20%, and outpatient plus other services at 15%. The latter category includes outpatient consultations, diagnostics, pharmacy and inpatient supportive-care treatment.

HCG added 25 operational beds in Q2 FY27, taking additions in H1 FY27 to 146 beds and total operational beds to 2,880. The quarterly increase comprised 13 beds in Kenya, seven in Kolkata and five in Nagpur. The presentation does not disclose a total operating-bed figure for the comparable prior-year quarter.

The company 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. HCG also performed its first CAR-T cell therapy at Ahmedabad, launched a 1,212-gene liquid-biopsy panel, and introduced two nuclear-medicine tracers at KR. The presentation does not disclose individual revenue contributions from these additions.

How did HCG perform in the first half of FY27?

HCG’s H1 FY27 revenue rose 15% to Rs 1,410 crore, as volumes increased 10% to 161,319 and ARPP rose 4% to Rs 87,405. In H1 FY26, revenue was Rs 1,230.3 crore, volumes were 147,023 and ARPP was Rs 83,681. The first-half ARPP increase was below Q2’s 7% rise, while H1 volume growth was above the quarter’s 9% growth.

Adjusted EBITDA increased 18% to Rs 274 crore in H1 FY27, and the margin rose to 19.7% from 18.8% in H1 FY26. The H1 FY27 adjustment excludes Rs 13.1 crore of North Bangalore losses, Rs 4.6 crore of Export Promotion Capital Goods, or EPCG, related provision, and Q2 ESOP expense of Rs 2.98 crore. The H1 FY26 adjustment included Rs 11.4 crore under Ind AS and Rs 2.56 crore of merger and acquisition-related costs.

Operational EBITDA in Q2 FY27 was Rs 136.4 crore, up 12% year on year, after including the North Bangalore start-up loss but excluding ESOP expense. Profit before tax was Rs 30.1 crore, up 48%, before an extraordinary item of Rs 11.6 crore. Adjusted profit after tax was Rs 19.2 crore, down 9%, which HCG said primarily reflected a favourable one-time deferred-tax adjustment at Baroda in Q2 FY26.

Conclusion

HCG’s Q2 FY27 performance combined higher patient activity with increased revenue per patient: revenue rose 16%, above the 9% increase in volumes, while ARPP grew 7%. The H1 shift toward cash and TPA business, together with advanced-therapy activity, provides the company-stated context for the ARPP change. South’s 14% ARPP growth and East’s 18% volume growth exceeded West’s 3% ARPP and 7% volume gains.

The next disclosed operating matter to watch is the ramp-up of North Bangalore, which recorded a Rs 6.1 crore loss in Q2 FY27 and Rs 13.1 crore in H1 FY27 while supporting South-region growth. HCG also added 146 beds in H1 FY27 and deployed MR-LINAC and other clinical capabilities, but the presentation gives no separate financial contribution, utilisation target or future capacity target for those additions.