1. At a Glance
Healthcare Global Enterprises Ltd (HCG) is one of those companies that sounds heroic on paper—cancer care, fertility, pan-India hospitals, international presence—and then quietly hands you a quarterly loss while trading at a valuation that screams Apollo dreams, penny stock patience.
As of early February, HCG is sitting at a market cap of roughly ₹8,022 crore with the stock wobbling around ₹569, down ~25% over three months. Quarterly revenue came in at ₹633 crore, up a respectable 13.3% YoY, but PAT for the quarter decided to go underground at –₹7.9 crore. Yes, loss. Again.
The kicker? The stock is still valued at ~295x trailing earnings, ROCE is stuck at ~8.6%, ROE is barely 5%, and debt has ballooned to ₹1,768 crore. This is a company running cancer hospitals, not a biotech moonshot—yet the valuation thinks it’s curing mortality itself.
Latest results are Quarterly Results, so EPS logic is locked. Q3 FY26 EPS is –₹0.67. Annualising that would be financial malpractice, so we won’t.
This is a story of scale, capex hunger, promoter change, and a balance sheet that looks like it’s been through chemo itself. Curious already? Good. Let’s go deeper.
2. Introduction
Healthcare Global Enterprises Ltd is not a new kid on the block. It’s been around long enough to see multiple healthcare cycles, funding booms, hospital IPO manias, and private equity mood swings. The company operates under two main brands—HCG for cancer care and Milann for fertility—and positions itself as a specialty healthcare network rather than a generalist hospital chain.
On paper, the narrative is clean: oncology is a high-entry-barrier, capital-intensive business with strong long-term demand tailwinds. Fertility is discretionary but fast-growing. Put them together and you get a “premium healthcare platform.”
In reality, HCG has been running a marathon with ankle weights. Revenue growth has been steady—~16% CAGR over 5 years—but profitability has been erratic. Interest costs are heavy, depreciation keeps climbing thanks to continuous capex, and every expansion seems to arrive before the previous one has fully healed.
FY25 ended with PAT of ₹49 crore, which looked like a comeback. FY26 Q3 said, “Relax, not so fast.” Losses returned, interest costs hit ~₹45 crore per quarter, and depreciation crossed ₹60 crore.
Then came the
promoter shake-up. Aceso exited, Hector Asia Holdings II Pte. Ltd. took control with ~54.6% stake, the CEO changed, CFO resigned, interim CFO appointed, board reshuffled. Basically, corporate governance musical chairs.
So the question is simple:
Is HCG a long-term oncology compounder temporarily sick, or a permanently stressed hospital chain living on hope, capex, and valuation optimism?
3. Business Model – WTF Do They Even Do?
Let’s simplify this without an MBA PowerPoint.
HCG runs cancer hospitals. Not general hospitals with a cancer wing—full-stack oncology centers with chemo, radiation (LINAC), surgeries, diagnostics, and inpatient care. It also runs fertility centers under the Milann brand, focused on IVF.
Cancer Care
As of September 2025, HCG operates:
- 22 cancer centers (including one in Kenya)
- 4 multispecialty hospitals
- ~2,600+ beds
Revenue drivers in H1 FY26:
- Chemo sessions: 43%
- Inpatient occupancy: 23%
- OPD: 18%
- LINAC (radiation): 16%
This tells you something important—HCG is not over-dependent on one procedure. Chemo is recurring, inpatient gives volume stability, LINAC is high-ticket but capex-heavy.
Occupancy metrics Q2 FY26:
- AOR: 70.3%
- ARPOB: ₹44,355
That’s decent, not spectacular. Good hospitals run higher occupancy, but oncology has complexity constraints.
Fertility (Milann)
Milann operates 7 fertility centers (5 in Bengaluru, 1 Chandigarh, others).
H1 FY26 stats:
- ~2,901 new registrations
- ~549 IVF cycles
This is still a small contributor, but fertility margins can be attractive once scaled.
So yes, HCG knows what it’s doing operationally. The problem is not demand. The problem is how much it costs to serve that demand.
4. Financials Overview
Quarterly
