HCG Reports Strong Q4, Divests Fertility Business to Boost Oncology Focus

HealthCare Global Enterprises (HCG) has reported its financial results for the fourth quarter and full fiscal year 2026. The company posted Q4 FY26 revenue of ₹652 crore and FY26 revenue totaling ₹2,545 crore.

HCG's adjusted EBITDA for the fourth quarter reached ₹125 crore, with an improved EBITDA margin of 19.2%, a year-on-year increase of 90 basis points. For the entire fiscal year 2026, adjusted EBITDA grew by 19% to ₹471.1 crore. The company's EBITDA margin for FY26 was 18.5%, up 70 basis points from the previous year. These performance improvements were attributed to greater operating leverage, enhanced center utilization, and effective cost management.

Strategic Divestment and Financial Health

HCG also announced a significant strategic decision to divest its fertility business, Milann, to Inviga Healthcare Fund for an enterprise valuation of ₹63 crore. The equity consideration for this sale is ₹37.6 crore. This divestment is part of HCG's plan to sharpen its focus on its core oncology business, which is considered a higher-margin segment.

The company recently concluded a ₹425 crore rights issue, which has been used to reduce its debt. This has resulted in a notable improvement in its balance sheet, with the net debt to EBITDA ratio decreasing to 1.4x.

Future Growth and Expansion

With the Milann divestment, HCG will operate exclusively as an oncology-focused healthcare provider. The proceeds from the sale are expected to further bolster the company's financial standing. HCG has ambitious plans for capacity expansion, intending to add over 200 beds within the next 24 months. The company has set a long-term goal of reaching 1,000 beds by FY30.

Key Considerations for Investors

Investors will be watching the execution of HCG's aggressive capacity expansion plans closely. Potential short-term impacts from external factors, such as disruptions to medical travel, also remain a point of attention. The successful ramp-up of new facilities, including the North Bangalore facility equipped with MR-Linac technology, will be critical for future growth.

Key Financial Metrics:

• Q4 FY26 Revenue: ₹652 crore
• FY26 Revenue: ₹2,545 crore
• FY26 Adjusted EBITDA: ₹471.1 crore
• Net Debt to EBITDA: 1.4x
• Milann Enterprise Valuation: ₹63 crore
• Rights Issue Proceeds: ₹425 crore