HCG Q4 FY26 Revenue Up 11.3% YoY

The document is a regulatory filing containing the transcript of an Earnings Conference Call held with Analysts/Investors on May 20, 2026, to discuss the Audited Financial Results (Standalone & Consolidated) for the quarter and year ended March 31, 2026.

The call was moderated by Mr. Anoop Poojari from CDR India. Management participants included Dr. Manish Mattoo, Executive Director and CEO of the company, and Mr. Ravi Gothwal, Head of Investor Relations.

The transcript was submitted to the National Stock Exchange of India Limited and BSE Limited on May 26, 2026, in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It is also available on the company's investor relations website.

The call included a disclaimer that some statements made may be forward-looking in nature, as included in the earnings presentation shared earlier.

Financial Performance:

Q4 FY26 Revenue: INR652 crore, reflecting 11.3% year-on-year growth.
Full Year FY26 Revenue: INR2,545 crore, representing 15% year-on-year growth.
Excluding the fertility business (Milann), full-year revenue grew 15%, supported by 12% growth in patient volumes and a 3% improvement in average revenue per patient.
Adjusted EBITDA for Q4 FY26 stood at INR125 crore, up 17% year-on-year.
Q4 Adjusted EBITDA Margin: 19.2%, expanding by 90 basis points YoY.
Full Year Adjusted EBITDA: INR471.1 crore, up 19% year-on-year.
Full Year Adjusted EBITDA Margin: 18.5%, improving by 70 bps YoY.
Pre-tax ROCE improved to 14%.
Net Debt reduced to 1.4x.
FY26 Operating Cash Flow conversion was 75% (87% when adjusted for an ESOPs settlement).

Strategic & Operational Updates:

Milann Divestment: The board approved the sale of the fertility business, Milann, to Inviga Healthcare Fund. The transaction values Milann at an enterprise valuation of INR63 crore. The equity consideration for 100% of the business is INR37.6 crore, with 75% received upfront at closing and the balance 25% over 18 months. The transaction is expected to close within Q1 of FY27.
New Facility: Commenced operations at the North Bangalore facility, a comprehensive oncology center.
Expansion Plan: A brownfield expansion plan to add 200+ beds over the next 24 months was detailed:
Cuttack: 75 beds
Ranchi: 30 beds
Vizag: 50 beds
Bhavnagar: 20+ beds
Long-term Bed Target: The company plans to add 1,000 beds by FY30 (400 via Greenfield, 600 via Brownfield).
Management Strengthening: Appointed Sanjeev Kumar Saxena as Chief Financial Officer and Ravi Gothwal as Head of Investor Relations.
Rights Issue: Successfully completed a rights issue of INR425 crore.

Cluster-wise Performance (FY26):

South Cluster: Contributed ~39% of revenues, grew ~13% for the full year.
West Cluster: Largest contributor at ~45% of revenues, grew ~14% for the full year.
East Cluster: Contributed ~11% of revenues, grew ~11% for the full year.
International (Kenya): Revenue grew 39% YoY for Q4 and 71% for the full year.

Growth Levers & Outlook:

Management guided for medium-term revenue growth projections of ~15%.
Growth levers identified include: the launch of North Bangalore, the Whitefield project (seeking an alternate location for a 120-130 bed facility), brownfield expansions, clinical talent addition (23 oncologists added in Q4), doubling Day-Care centers from 5 to 8-10 over 24 months, sales acceleration, and ORC outreach.
Margin expansion is expected to continue, driven by operating leverage, better utilization, payor mix optimization, and disciplined cost management.

The document is an attached transcript of the earnings call, filed as a regulatory disclosure.
The transcript contains detailed financial data and strategic updates as presented during the call.
The company clarified that the Q4 revenue growth of 11.3% was impacted by a conscious paring down of low-margin business and softer medical value travel due to the Middle East conflict, but the medium-term growth estimate remains at 15%.