HealthCare Global Enterprises: A Strong Q3 and 9M FY26 Performance Driven by Strategic Execution

HealthCare Global Enterprises Limited (HCG), India's largest oncology-focused hospital chain, has reported a robust financial and operational performance for the third quarter and nine months ended December 31, 2025 (Q3 & 9M FY26). The company delivered a consolidated revenue of INR 633.1 crore in Q3 FY26, marking a 13% year-on-year (YoY) growth. For the nine-month period, revenue reached INR 1893.1 crore, reflecting a strong 16% YoY increase. This performance underscores HCG's continued focus on strengthening its core oncology platform and driving consistency across clinical and financial outcomes.

The company's Adjusted EBITDA for Q3 FY26 grew by an impressive 20% YoY to INR 110.8 crore, with Adjusted EBITDA margins expanding to 17.5% from 16.5% in Q3 FY25. This margin expansion was primarily driven by operating leverage as the utilization of hospitals improved. For the 9M FY26 period, Adjusted EBITDA stood at INR 346 crore, also a 20% YoY growth, with margins at 18.3%. Despite a seasonally softer quarter for the healthcare services industry, HCG's resilient demand for oncology care across its network, supported by healthy patient volume growth of 8% YoY (excluding fertility business), contributed significantly to these positive results.

Regional Performance and Strategic Expansions

HCG's growth was broad-based across its three key clusters. The South cluster, despite temporary disruptions in Andhra Pradesh related to a state-sponsored scheme, delivered a 9% YoY revenue growth, driven by strong momentum in Bangalore's Centre of Excellence (COE) and Vizag. The West cluster showed robust performance with a 17% YoY revenue growth, supported by strong patient inflows across hospitals in Gujarat and Maharashtra. The East cluster also reported a 13% YoY revenue growth, primarily from Cuttack and Ranchi, alongside the ramp-up of operations in Kolkata.

Strategic expansions are well underway to further bolster HCG's network. The North Bangalore Greenfield Hospital, with a planned capacity of over 120 beds, is expected to commence operations by the end of Q4 FY26. This facility will be the first in Bangalore to offer MR-LINAC technology, creating a strong clinical and technology-led differentiation. Additionally, HCG plans to add about 20 beds to its existing Bangalore COE and 60 beds to its Cuttack Hospital, with the latter expected to be operationalized by the end of FY27. These brownfield and greenfield expansions are part of a calibrated approach to grow in high-potential markets.

Digital Leadership and Clinical Excellence

HCG's digital engine continues to be a significant growth driver. Digital revenue grew 26% YoY in Q3 FY26, despite a meaningful reduction in paid media spend. The company's own channels have strengthened materially, with the website contributing 67% of overall digital contribution and the mobile app scaling 4.5x to contribute 13% to digital revenues. Campaign efficiency improved sharply, with campaign-led revenue growing 38% YoY. This demonstrates HCG's ability to efficiently convert trust, built on clinical excellence, into high-quality patient volumes.

Clinical excellence remains a cornerstone of HCG's strategy. The company operates a comprehensive cancer care model, managing high-complexity cases at scale. Recent achievements include treating a tumor encircling the optic nerve with Cyberknife, achieving complete response in a rare breast cancer subtype, and K. R. Hospital receiving NABH accreditation for its ethics committee. HCG also launched a green radiation oncology initiative to reduce energy consumption and carbon footprint, while exploring new applications of radiation therapy.

Outlook and Management Confidence

Management expressed confidence in sustained growth, maintaining a guidance of 15%+ revenue growth. The company anticipates ROCE to trend higher over time as incremental growth is achieved with relatively limited capital deployment, allowing fixed costs to be absorbed more efficiently. The aspiration for Adjusted EBITDA margins is to reach 23-24% plus in the next three to four years. HCG's disciplined capital allocation, focus on optimizing the existing network, and faster ramp-up of newer centers provide a clear pathway to sustained improvement in returns. The company's strategic clarity and execution prowess position it well to capitalize on the growing demand for high-quality cancer care in India.