Healthcare Global Enterprises delivered a robust start to FY27, reporting consolidated revenue of ₹6,951 million in Q1FY27, a 13% year-on-year increase driven by an 11% surge in patient volumes. The company’s adjusted EBITDA grew 20% to ₹1,339 million, expanding margins to 19.4% from 18.2% in Q1FY26, while profit after tax (PAT) surged 190% to ₹138 million. This performance highlights the strength of its integrated oncology model and the successful ramp-up of new capacity, particularly the North Bengaluru facility which commenced operations in May 2026.

The Board of Directors approved the unaudited financial results on August 06, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results reflect broad-based growth across its South, West, and East clusters, supported by an improved payor mix where non-institutional revenue grew 17% YoY, increasing its contribution from 67% to 69%. Notably, the company divested its fertility business in June 2026, which contributed ₹169 million in revenue and ₹23 million in EBITDA during the quarter.

Financial Performance Highlights

Revenue growth was primarily volume-led, with average revenue per patient (ARPP) increasing by 2% to ₹85,943. Reported EBITDA stood at ₹1,223 million, impacted by startup losses of ₹70 million from the new North Bengaluru center and an EPCG-related provision of ₹46 million. Excluding these one-time items, adjusted EBITDA margins improved by 120 basis points year-on-year. International business revenue also grew 9% YoY to ₹208 million, driven by stronger inflows for radiation oncology and PET cases.

Regional Growth Dynamics

The West cluster remained the largest revenue contributor at 43% (₹3,010 million), growing 9% YoY on strong patient inflows in Maharashtra, though growth was moderated in Gujarat due to case-mix shifts toward medical oncology. The South cluster delivered 16% YoY growth to ₹2,765 million, led by the Bengaluru Center of Excellence and the new North Bengaluru facility. The East cluster showed the highest growth rate at 22% YoY to ₹799 million, driven by a 25% surge in patient volumes, although ARPP declined slightly due to higher participation from state government schemes.

Strategic Expansion and Capacity Additions

Healthcare Global Enterprises added 121 operational beds in Q1FY27, bringing total operational beds to 2,855. Key additions included 56 beds at North Bengaluru, 26 at Ranchi, and smaller increments across Borivali, Nashik, Hubli, and Kenya. The company commissioned an MR-LINAC at North Bengaluru in July 2026, enhancing its adaptive radiation therapy capabilities. Additionally, Rajkot was upgraded to a Comprehensive Cancer Care Centre with a new LINAC, and robotic surgery capabilities were strengthened at Nashik and Bengaluru.

What the Numbers Show

The divergence between reported and adjusted EBITDA highlights the transitional costs associated with aggressive capacity expansion. While startup losses at North Bengaluru pressured reported margins, the underlying operational efficiency is evident in the 20% growth in adjusted EBITDA versus only 13% revenue growth. This suggests successful operating leverage as fixed costs are spread over a larger patient base. Furthermore, the shift in payor mix towards cash and TPA (now 66% combined vs 63% in FY25) supports the margin expansion narrative, indicating a strategic move away from lower-margin government schemes in key markets.

Healthcare Global Enterprises has re-appointed M/s. Rao Murthy & Associates as its Cost Auditor for the financial year 2026-27. The Board of Directors approved the re-appointment during a meeting held on August 06, 2026, ensuring continuity in statutory cost auditing services for the healthcare provider.

The appointment was made pursuant to Regulation 30(2) and (6) read with Schedule III Part A Para A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also referenced SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026, issued on July 11, 2023, and last updated on January 30, 2026, in its disclosure to the National Stock Exchange of India Limited and BSE Limited.

Auditor Profile

M/s. Rao Murthy & Associates is a Bengaluru-based firm established in 1994 and registered with the Institute of Cost Accountants of India under Firm Registration No. 000065. The firm is led by Mr. N. Ramaskanda (M. No. 9750) and Mr. K.R. Murali Krishna (M. No. 21622), who bring extensive experience in cost and management accounting to their roles.

With over three decades of professional service, the firm has handled various statutory assignments including cost audits, maintenance of cost records, and certifications under applicable regulations. It also provides consultancy services such as cost structure analysis, profitability studies, business planning, MIS development, and transfer pricing advisory. The firm caters to sectors including manufacturing, IT, education, and BPO.

Regulatory Compliance

The company confirmed that there are no relationships between directors and the appointed auditor that require disclosure under BSE Circular Ref no. LIST/COMP/14/2018-19 or the National Stock Exchange of India Circular Ref no. NSE/CML/2018/24 dated June 20, 2018. The detailed information regarding the re-appointment has been made available on the company's website.

The Board meeting commenced at 11.30 a.m. and concluded at 06.50 p.m. IST. Sunu Manuel, Company Secretary & Compliance Officer, signed the disclosure document on behalf of HealthCare Global Enterprises Limited.