HCG Reports ₹695 Crore Revenue in Q1FY27, Profit Surges 20%
HCG's Q1FY27 revenue hit ₹695 crore, marking a 13% YoY increase, with profit rising 20%. Strategic expansions and service demand drive growth.
Healthcare Global Enterprises Limited (HCG), a prominent name in cancer treatment, has announced a robust financial performance for the first quarter of fiscal year 2027, ending June. The company reported a 13% year-on-year increase in revenue, reaching ₹695.1 crore, driven by strategic expansions and increased demand for oncology services.
Revenue Growth and New Operations
The North Bangalore hospital, which began operations in May 2026, contributed ₹6.7 crore to the quarterly revenue. Overall, HCG's adjusted EBITDA rose by 20% year-on-year to ₹133.9 crore, with EBITDA margins improving to 19.4% from 18.2% in the same period last year.
Dr. Manish Mattoo, Executive Director & CEO of HCG, highlighted the strong start to FY27, noting that 16 out of 25 centers recorded their highest-ever quarterly revenues, indicating broad-based growth across the network. The focus remains on enhancing high-complexity oncology care and expanding non-institutional business, which saw a 17% year-on-year revenue growth.
Operational Expansion and International Business
During the quarter, HCG commissioned a 120-plus bed hospital in Hebbal, North Bangalore, adding 56 beds. Additional expansions included 26 beds in Ranchi, 19 in Borivali, 8 in Nashik, 5 in Hubli, and 7 in Kenya, increasing the network's capacity significantly.
HCG's international business generated ₹20.8 crore in revenue, up approximately 9% year-on-year, bolstered by increased patient inflow for radiation oncology and PET cases. Meanwhile, the fertility business, divested in June 2026, contributed ₹16.9 crore in revenue with an EBITDA of ₹2.3 crore.
Strategic Focus and Future Outlook
HCG's strategic focus on a favorable payor mix and optimizing case mix contributed to a 2% year-on-year increase in average revenue per patient (ARPP). However, this was somewhat offset by a reduced contribution from high-value, low-margin therapies.
Looking ahead, HCG's commitment to expanding its oncology services and optimizing operational efficiencies is expected to sustain its growth trajectory. The company's strategic investments in infrastructure and service diversification are poised to meet the growing demand for specialized cancer care.