HealthCare Global Enterprises Reports Strong FY26 Performance and Strategic Divestment

HealthCare Global Enterprises (HCG) has announced robust financial results for the fiscal year ending March 31, 2026 (FY26), alongside a significant strategic move to divest its non-core fertility business.

Key Financial Highlights

For FY26, HCG reported a total revenue of ₹25,454.1 million, an impressive 15% increase compared to the previous year. The company's adjusted EBITDA also saw a strong performance, growing by 19% to ₹4,711.3 million. This growth was accompanied by an improvement in EBITDA margins by 68 basis points, reaching 18.5%. The Return on Capital Employed (ROCE) for the fiscal year stood at 14.0%.

Strategic Divestment of Milann

In a move to streamline its operations and concentrate on core services, HCG has agreed to divest its fertility business, Milann. The transaction values Milann at an enterprise valuation of ₹632 million, with an equity consideration of ₹376 million. This sale is anticipated to be finalized in the first quarter of FY27.

Focus on Oncology Services

The divestment of Milann underscores HCG's strategic decision to prioritize and expand its oncology and related healthcare services. This sharpens the company's focus, allowing for more efficient capital allocation and dedicated resources towards its main business segments. The reported revenue and EBITDA growth reflect the strength of its core operations.

Strategic Rationale and Future Outlook

HCG's strategy for FY26 has centered on achieving profitable growth and maintaining prudent capital management. Divesting Milann aligns with this objective, aiming to unlock value and redeploy capital more effectively into its oncology services. Following the divestment, HCG is expected to accelerate expansion plans and enhance its cancer care offerings.

Risks and Next Steps

While the company anticipates positive outcomes, future performance is subject to inherent risks and uncertainties. The accuracy of industry data used by HCG has not been independently verified. The completion of the Milann divestment, targeted for Q1 FY27, carries execution risk. Investors will be closely watching the successful closure of this sale, alongside the progress of HCG's planned brownfield expansion of over 200 beds in the next 24 months and the operational launch of its Whitefield hospital.