HealthCare Global Enterprises announced its audited annual financial results for the year ended March 31, 2026. The company reported a total income of INR 257,040 Mn for FY26, reflecting a 14% increase compared to INR 225,766 Mn in the previous fiscal year. The net profit for the period attributable to equity shareholders stood at INR 1,376 Mn, while the Adjusted Profit After Tax (PAT) for the full year surged to INR 557 Mn, a 25% increase from INR 444 Mn in FY25.

Operational and Financial Performance

The company's operational metrics showed robust expansion during the fiscal year. Volumes reached 294,912, a 12% increase from the prior year, while Average Realization Per Payor (ARPP) grew to INR 84,261. Adjusted EBITDA for the year stood at INR 4,711 Mn, a 19% year-over-year increase, with the margin expanding by 68 basis points to 18.5%. The West region emerged as a key growth driver, delivering 14% revenue growth, followed by the South and East regions with 13% and 11% growth respectively.

Q4 FY26 Highlights

In the fourth quarter, HealthCare Global Enterprises recorded total income of INR 66,540 Mn. The net profit attributable to equity shareholders for the quarter was INR 217 Mn. Adjusted EBITDA for the quarter increased by 17% to INR 1,252 Mn, with the margin expanding to 19.2% from 18.3% in the same period last year. The Adjusted PAT for the quarter surged to INR 341 Mn from INR 74 Mn in Q4 FY25. The company also recorded an exceptional item of INR 319 Mn in the current quarter.

Strategic Developments

The Board approved the divestment of the company's non-core fertility business, Milann, to Inviga Healthcare Fund I. The transaction values Milann at an enterprise valuation of INR 632 Mn, with an equity consideration of INR 376 Mn payable in two tranches. The deal is expected to close in Q1 FY27, allowing the company to focus capital allocation on its core oncology platform.

Capital Allocation and Expansion

The company completed a rights issue to raise INR 4,250 Mn, which was oversubscribed 1.3 times. Capital expenditure for FY26 totaled INR 2,885 Mn, with significant investments directed towards the North Bangalore facility, which commenced operations bringing MR-LINAC technology to the region. Net debt as of March 31, 2026, stood at INR 3,387 Mn, a significant reduction from INR 6,317 Mn in the previous year, resulting in a net debt to EBITDA ratio of 0.98x.

Future Outlook

Management highlighted the company's path to improving profitability and return on capital, driven by the movement of centres into higher revenue buckets. The growing cohort of centres generating INR 50-100 Mn per month provides a strong foundation for future margin expansion. Additionally, brownfield expansion of over 200 beds is planned over the next 24 months across key locations including Bangalore, Cuttack, Ranchi, Vizag, and Bhavnagar.

HealthCare Global Enterprises Limited has approved the divestment of its entire equity shareholding in BACC Health Care Private Limited to Inviga Healthcare Fund I and its nominee. The Board of Directors and Audit Committee granted approval during meetings held on May 19, 2026. The transaction is valued at INR 37,64,44,788 and is expected to be completed within 4-5 weeks from the date of the announcement, subject to the terms of the Share Purchase Agreement (SPA). BACC is engaged in fertility and reproductive healthcare services, which the company identified as a non-core business activity.

Transaction Details

The proposed transaction is a related party transaction, as the buyer, Inviga Healthcare Fund I, is controlled by Dr. B.S. Ajaikumar, the Promoter and Non-Executive Chairman of the company. The deal was approved following a competitive process. The company stated that the transaction is being undertaken on an arm's length basis, with the consideration based on a valuation report by an independent third-party valuer.

Financial Impact of BACC

For the financial year 2025-26, BACC reported revenue from operations of INR 60.45 crore, which accounted for 4.45% of the company's standalone revenue. The net worth of BACC as of March 31, 2026, stood at INR 17.53 crore, representing 1.09% of the company's standalone net worth. The divestment is expected to facilitate greater operational focus, allowing the company to reinvest capital in high-growth areas such as cancer services.

BACC Financial Metrics (FY 2025-26)

The following table summarises BACC's key financial metrics relative to HCG's standalone figures:

Payment Structure

The consideration of INR 37,64,44,788 will be paid in two tranches. An aggregate amount of INR 28,23,33,591 is payable on the date of closing. The remaining deferred consideration of INR 9,41,11,197 will be paid within 18 months of the signing of the SPA.