HCG Enterprises Reports Q2 FY2026 Results, Approves Employee Stock Option Allotment

Healthcare Global Enterprises Limited (HCG), a leading provider of specialized oncology services in India, has announced its unaudited financial results for the quarter and six months ended September 30, 2025, along with key corporate actions.

Financial Performance

For the quarter ended September 30, 2025, HCG reported:

Metric	Q2 FY2026	Q2 FY2025	YoY Change
Revenue from operations	64,516.00	55,247.00	16.8% increase
Profit before tax	1,982.00	2,765.00	28.3% decrease
Profit after tax	2,066.00	2,068.00	Marginal decrease

The company's consolidated revenue from operations for Q2 FY2026 stood at ₹64,516 lakhs, marking a 16.8% increase from the corresponding quarter of the previous year. However, profit before tax decreased by 28.3% to ₹1,982 lakhs, while profit after tax remained relatively stable at ₹2,066 lakhs.

Employee Stock Option Allotment

The Board of Directors approved the issue and allotment of 7,537 equity shares of ₹10 each upon exercise of Employee Stock Options under the Employee Stock Option Scheme, 2021.

Board Meeting Details

The Board meeting, held on November 12, 2025, commenced at 10:30 a.m. and concluded at 5:30 p.m. During this meeting, the Board considered and approved the unaudited financial results for both standalone and consolidated operations.

Auditor's Review

BSR & Co. LLP, the statutory auditors, conducted a limited review of the financial results and issued an unmodified opinion. The review report notes that the acquisition of the oncology hospital business from HCG NCHRI Oncology LLP, completed in the previous financial year, has been accounted for in accordance with the requirements of Appendix C to Ind AS 103.

Strategic Investments

The Board has approved an investment of up to ₹700 lakhs (in equivalent USD) in equity shares of Cancer Care Kenya Limited, a step-down subsidiary of the company. This investment is subject to applicable regulatory approvals and is based on the fair value determined by an independent valuer.

Market Impact

While the company has shown strong revenue growth, the decrease in profit before tax may raise questions among investors about operational efficiency and cost management. The investment in the Kenyan subsidiary signals HCG's continued focus on international expansion in the oncology care sector.

HCG's commitment to employee ownership through the ESOP allotment may be viewed positively by the market as a strategy to align employee interests with company performance.

Healthcare Global Enterprises Limited (HCG), a leading provider of specialized oncology services in India, has announced its plans to expand its footprint in the African healthcare market. The company's Board of Directors has approved an investment of up to Rs. 700 lakhs (approximately $840,000) in Cancer Care Kenya Limited, a step-down subsidiary of HCG.

Investment Details

The investment, which is subject to applicable regulatory approvals and completion of necessary formalities, will be made in equity shares of Cancer Care Kenya Limited. The decision was made during the Board meeting held on November 12, 2023, and is based on the fair value of Cancer Care Kenya's shares as determined by an independent valuer.

Strategic Expansion

This move appears to be part of HCG's strategy to strengthen its presence in the African healthcare sector. Cancer Care Kenya Limited, which operates in Nairobi, Kenya, provides radiation and chemotherapy services, including a 15-bedded Day Care Centre.

Financial Performance of Cancer Care Kenya

Cancer Care Kenya has shown significant growth in recent years. For the financial year ended March 31, 2023, the company reported:

Metric	Amount (INR)	Amount (Kenyan Shillings)
Revenue	42.53 Crore	637.69 Million (approx.)
Profit After Tax	10.83 Crore	162.49 Million (approx.)

The company's revenue has shown substantial growth over the past three years:

Financial Year	Revenue (INR)
FY 2022-23	425,307,493
FY 2021-22	178,287,018
FY 2020-21	90,734,034

Market Implications

This investment may signal HCG's confidence in the growth potential of the African healthcare market, particularly in oncology services. It also reflects the company's commitment to expanding its international presence and diversifying its revenue streams.

Regulatory Compliance

The investment is structured in compliance with applicable regulations, including those set by the Securities and Exchange Board of India (SEBI). HCG has stated that the proposed investment is subject to necessary regulatory approvals, indicating the company's adherence to cross-border investment norms.

Multi-Year Growth Strategy

In addition to its investment in Cancer Care Kenya, Healthcare Global Enterprises has outlined a comprehensive multi-year growth strategy. The strategy focuses on:

Oncology Expansion: The company plans to invest in new cancer centers across Tier-1 and Tier-2 cities, broadening its reach and service offerings.
Clinical Excellence: HCG aims to maintain and enhance its reputation for providing high-quality oncology care.
Regional Network Deepening: The strategy includes strengthening HCG's presence in existing markets while expanding into new regions.
Margin Improvement: The company expects strong margins, supported by high-occupancy hospitals and operational efficiency measures.
Precision Oncology: HCG is emphasizing the development and implementation of precision oncology techniques to improve treatment outcomes.
Digital Health Platforms: The company plans to leverage digital health technologies to enhance patient care and operational efficiency.

This multi-faceted approach demonstrates HCG's commitment to long-term growth and its ambition to strengthen its position as a leader in oncology services both in India and internationally.

As Healthcare Global Enterprises continues to expand its operations, the investment in Cancer Care Kenya, coupled with its comprehensive growth strategy, could potentially enhance its position in the growing African healthcare market and contribute to its long-term growth in specialized oncology services.