HCG
Micro CapHealthcare Global Enterprises Limited
Pharma
HCG is India's largest oncology-focused hospital chain, operating 25 hospitals across 19 cities/states with over 2,600 beds and 38 LINACs. It provides comprehensive cancer care, leveraging advanced technology and a patient-centric approach across medical, surgical, and radiation oncology.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 5/100PAT -40% YoY · Rev +11% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹652.3 Cr | +11.5% | +3.0% |
| EBITDA | ₹125.1 Cr | +18.4% | +14.2% |
| Operating margin | 19.2% | +112 bps | +186 bps |
| PAT | ₹4 Cr | -40.3% | NDF |
| PAT margin | 0.6% | -54 bps | +187 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
HCG reported strong FY26 results with 15% YoY revenue growth and 19% YoY Adjusted EBITDA growth, driven by volume expansion and margin improvement. Q4FY26 also showed robust performance, with revenue up 11% YoY and Adjusted EBITDA up 17% YoY.
HCG's strategic divestment of its fertility business and successful rights issue have strengthened its balance sheet and sharpened focus on core oncology. Continued growth across clusters, significant international business ramp-up, and planned brownfield expansions indicate a clear path for sustained profitable growth and improved capital efficiency.
FY26 Revenue Mix by Specialty (excl. Fertility)
Latest issuer-disclosed distribution across 5 reported categories.
Pan-India Network Expansion
Largest oncology-focused hospital chain with a deep network across metros and non-metros, leading positions in 16 of 19 cities.
Advanced Technology Adoption
Track record of being first to launch advanced technology in India, including MR-LINAC in North Bangalore facility in FY26.
International Business Scaling
International business (Kenya) continued to scale meaningfully, growing 71% YoY in FY26, supported by ramp-up in radiation oncology, PET and stronger patient inflows.
Operating Leverage from Existing Centers
Existing network continues to witness healthy ramp-up in utilization (HCG Overall 58% in FY26), with significant headroom for sustained future growth.
North Bangalore Facility
Commenced operations with 110 beds, 1st in Bangalore to offer MR-LINAC technology, strengthening advanced oncology capabilities.
Planned Brownfield Expansion
Additional brownfield expansion of 200+ beds planned in the next 24 months across Bangalore, Cuttack, Ranchi, Vizag and Bhavnagar.
Bangalore COE Bed Addition
Planned addition of ~25 beds at the Bangalore COE in FY27.
Ahmedabad Day Care Centre
Addition of day care centre in Ahmedabad to further strengthen clinical capabilities, access and throughput.
Strategic Divestment of Non-Core Assets
Agreed to divest 100% stake in Milann fertility business, expected to close in Q1 FY27, to unlock value and focus on core oncology.
Strengthened Balance Sheet
Rights issue completed, raising INR 4,250 Mn and oversubscribed by 1.3x, leading to de-leveraging (Net Debt/EBITDA 0.98x pre-Vizag payment).
Improved Payor Mix
West cluster saw Cash + TPA mix improve by 2% YoY during Q4FY26.
Softer Medical Value Tourism
South cluster's Q4FY26 growth was partially offset by softer medical value tourism.
Case Mix Impact in Kolkata
East cluster's ARPP moderated in Q4FY26 due to clinical transitions in Kolkata impacting case mix.
Execution Risk in New Expansions
Evaluating an alternate location for Whitefield hospital, which could delay planned comprehensive cancer services.
Doctor Team Onboarding Delays
East cluster's performance in FY27 relies on the expected onboarding of a new doctor team in Kolkata in Q1 FY27.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing the underlying growth trends and operational efficiency in a healthcare business, which can have seasonal variations. QoQ comparison is useful for tracking sequential momentum, especially in new facility ramp-ups and specific regional performance.
Revenue Growth (excl. Fertility)
FY26 revenue grew ~15% YoY to INR 24,850 Mn (excl. Fertility); Q4FY26 revenue grew ~11% YoY to INR 6,367 Mn (excl. Fertility).
Adjusted EBITDA Margin
FY26 Adjusted EBITDA margin expanded by ~68 bps YoY to 18.5%; Q4FY26 margin expanded to 19.2% from 18.3% in Q4FY25.
Volume Growth (excl. Fertility)
FY26 volume grew ~12% YoY to 294,912 (excl. Fertility); Q4FY26 volume grew ~9% YoY to 74,748 (excl. Fertility).
ARPP Growth (excl. Fertility)
FY26 ARPP improved ~3% YoY to INR 84,261 (excl. Fertility); Q4FY26 ARPP improved ~2% YoY to INR 82,169 (excl. Fertility).
Focus on Profitable Growth
Management emphasizes profitable growth with prudent capital allocation and driving operational and capital efficiency.
Optimize Existing Network
Strategic priority to build best-in-class talent, improve case mix, and scale international business.
Improve Network Efficiency
Focus on operating leverage to improve margins and develop asset-light adjacencies like day care and diagnostics.
Enhance Patient Experience
Invest in upgrading existing infrastructure, maintaining leadership in medical technology, and leveraging digital & tech.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Debt / EBITDA (Pre-Ind AS) | 1.43x (adjusted for Vizag payment) | Sustained reduction or prudent utilization of headroom for growth investments without significant re-leveraging. |
| Hospital Utilization (Overall) | 58% (FY26) | Continued ramp-up in utilization across existing and new centers to drive operating leverage and margin expansion. |
| International Business Growth | 71% YoY (FY26) | Sustained high growth rates and increasing contribution from Kenya operations. |
| New Doctor Onboarding in Kolkata | Expected in Q1 FY27 | Successful onboarding and positive impact on case mix and ARPP in the East cluster. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
51Neutrallabel neutral
Technical chart
HCGweekly · 3Y+35.8%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 53.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 53 — sideways, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 21% off 52W high · 24% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 13/25 to the score.
- Cash flow contributes 5/10 to the score.
- Balance sheet contributes 6/15 to the score.
Main drags
- Fair-value margin of safety is negative at -1553.7%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 53rd percentile of the scored universe and 41st percentile within Pharma. Main check: financial discipline is weak at 40/100.
Healthy Trust Lite: Promoter holding is 64.2%. Key concern: 4 recent quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Pharma: 41st pctile, median 70 · Micro: 36th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 64.2%.
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 1.8%.
- ▸FCF yield is positive at 1.8%.
Trust risks
- ▸4 recent quarters had PAT decline worse than 25% YoY.
- ▸Debt/equity is 1.30.
- ▸ROE is low at 2.6%.
- ▸Revenue CAGR is 15% but EPS CAGR is -1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 326.00
- P/B
- 7.04
- EV/EBITDA
- 15.66
- Market Cap
- 9381.00Cr
Profitability
- ROE
- 2.55%
- ROCE
- 8.31%
- ROA
- 0.59%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 20.00%
- EPS 5Y
- 18.00%
- Revenue 3Y
- 15.00%
- EPS 3Y
- -1.00%
Balance Sheet
- Debt/Equity
- 1.30
- Interest Coverage
- 2.63×
- Altman Z
- 3.76
- Book Value
- 89.20
Cash Flow
- FCF Yield
- 1.81%
- FCF Positive Y
- 5/5
- OCF
- 347.00 Cr
- EPS TTM
- 0.92
Shareholding
- Promoter Hold
- 64.21%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 40%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.