Healthcare Global Enterprises Ltd (HCG) Q2FY26 — India’s Cancer King With a Fertility Side Hustle and a P/E That Needs Chemotherapy

1. At a Glance

₹10,442 crore market cap. ₹741 stock price. 8.54% three-month return. P/E ratio that makes even AI say“Doctor, ye overvaluation ka case hai!”Healthcare Global Enterprises Ltd (HCG) isn’t your regular hospital chain—it’sIndia’s largest private cancer-care network, running more radiation machines than Bollywood runs sequels. Under its “Milann” brand, it also does fertility treatments, because apparently curing cancer wasn’t hard enough—they decided to help make babies too.

Q2FY26 results: revenue ₹647 crore (+16.9% YoY), PAT ₹16.3 crore (–9.6% QoQ), and an operating profit of ₹123 crore with margins steady around 19%. The stock has rallied 57% in one year—clearly, someone believes healthcare miracles are profitable again.

As theBhagavad Gitasays,“Karmanye vadhikaraste, ma phaleshu kadachana”—you have the right to perform your duty, not to the fruits of action. HCG is definitely performing its duty: scanning, radiating, cutting, and billing—with the fruits (profits) still in recovery mode.

2. Introduction

Picture this: a company saving lives and still getting roasted for low returns. That’s HCG for you. India’s go-to name for advanced cancer care and fertility services, this Bengaluru-based network runs 22 cancer hospitals, 4 multispecialty facilities, and 7 fertility centers, including one in Kenya—because nothing says “global enterprise” like chemo abroad.

For over two decades, HCG has positioned itself as the “Tata Oncology” of India: clean branding, futuristic treatment, robotic surgeries, and a leadership team that seems to change faster than hospital gowns. Recently, Hector Asia Holdings swooped in like a private equity surgeon and took 51% control, replacing top brass and re-engineering governance.

Financially, the company’s story is like a patient who’s survived multiple surgeries—weak margins, chronic debt, occasional flare-ups—but somehow keeps walking out of the ICU looking stronger every quarter. With ₹1,768 crore debt, a current ratio of 0.44, and an interest coverage of 1.24, this is not a stock—it’s an adrenaline drip.

And yet, the brand’s trust quotient among patients is sky-high. After all, in India, hope and healthcare both sell at a premium.

3. Business Model – WTF Do They Even Do?

HCG is basically a two-headed medical monster—one head saves lives (cancer care), and the other creates them (fertility).

Cancer Care (HCG Brand):HCG operates 22 comprehensive cancer centers with nearly 1,944 beds. Their operations cover oncology treatments—radiation therapy, chemotherapy, surgical oncology, and robotic surgeries. Their secret sauce? They own and operate most of their infrastructure, ensuring full control over treatment quality (and billing, of course).

Fertility (Milann Brand):Milann runs IVF and reproductive services, with 5 centers in Bengaluru and a few being “pruned” in Delhi (management speak for “yeh center band karo, bhai”). The fertility vertical is smaller but profitable, contributing ~10–12% of consolidated revenues, and more importantly, narrative appeal—because “hope creation” sounds better than “margin compression.”

Revenue mix (H1FY24): OPD 18%, Chemo sessions 41%, LINAC (radiation) 17%, and In-patient 24%.Basically, HCG makes most of its money by injecting, irradiating, and hospitalizing people—in that order.

The business thrives on a doctor-driven model with high CapEx intensity (₹636 crore in H1FY24 alone) for robotic surgery systems, linear accelerators, and radiation centers. It’s an asset-heavy model, but as the CFOs say—“radiation is expensive, returns are slow, but karma points are infinite.”

4. Financials Overview

Annualized EPS = ₹1.15 × 4 = ₹4.6P/E = 741 / 4.6 =161×(though screener shows 295×—even their calculator fainted).

Commentary:Revenue’s growing faster than the Indian oncology market, but profits are allergic to gravity. Margins hover near 19%, stable but thin compared to Max Healthcare’s 26%. Still, when your EBITDA’s healthy and PAT keeps vanishing, it’s less “doctor’s negligence” and more “finance department fatigue.”

5. Valuation Discussion – Fair Value Range (Educational Purpose Only)

Let’s be gentle—valuing