HealthCare Global Enterprises Ltd

Financial Performance

• Q1 FY27 revenue at INR 6,951 million, up ~13% YoY.
• North Bangalore hospital contributed INR 67 million in Q1 FY27.
• EBITDA for the quarter was INR 1,223 million, excluding North Bangalore losses and one-offs.
• Adjusted EBITDA rose 20% YoY to INR 1,339 million; EBITDA margin 19.4%.

Operational Update

• 16 of 25 centers delivered their highest quarterly revenues, excluding North Bangalore.
• Volume growth was 11% YoY; ARPP grew 2%; non-institutional revenue +17% YoY.
• Non-institutional share rose from 67% to 69%.
• South cluster revenue grew ~16% YoY; East cluster +22%; West +9%.

Capex and Capacity

• 121 operational beds added in the quarter across clusters.
• Planned bed additions: 65 in FY27, 520 in FY28–FY29, 230 in FY30.
• About 60% expansion through brownfield; 3 greenfield projects in pipeline.
• MR-LINAC commissioned in North Bangalore; two robotics added at Nashik and Bangalore CoE.

Greenfield and New Projects

• 180 beds from two greenfield projects: Whitefield (South) and Maharashtra (West); end-FY28 and FY29 operable.
• Three greenfield projects in pipeline.

Financing and Cash Flow

• Right issue proceeds used for debt repayment of INR 170 crore.
• Vizag hospital stake raised to 85% from 51%; INR 150 crore deployed.
• General corporate purposes utilized: INR 50 crore and INR 95 crore.
• Interest cost declined due to right-issue proceeds; expected to moderate versus last year.
• Operating cash flow before working capital changes ~ INR 125 crore; net cash from operations ~ INR 70 crore.

Guidance and Outlook

• Mid-teens revenue growth expected from existing centers plus new ones; margins to improve.
• Long-term EBITDA margin aspiration: 21–22% in 2 years; 24–25% in 4–5 years.
• North Bangalore to break-even monthly this year; occupancy ramp expected.
• Marketing spend around 2.9% of revenue; targeting 2.5–2.6% in the longer term.
• Two greenfield projects add beds in Whitefield and Maharashtra; 3 greenfield projects in pipeline.

Meeting Details

• Date: August 12, 2026; Time: 3:00 p.m. onwards.
• Type: Group meetings; Mode: physical, in Bangalore.
• Event/organiser: Ambit Capital (host).
• Place: Bangalore.
• Purpose: discussions based on publicly available information.

Participants

• Key company participants: officials from the company (roles not specified).

Meeting Details

• Date: August 07, 2026 (time not specified).
• Type: earnings call with analysts/investors; mode not specified.
• Organizer: HealthCare Global Enterprises Limited.
• Purpose: discuss unaudited results for quarter ended June 30, 2026 (standalone and consolidated).
• Recording: audio recording available on the company website.

Participants

• Key participant: Company Secretary & Compliance Officer.

Financial Highlights

• Q1 FY27 revenue from operations Rs 6,951 Mn, up 13% YoY.
• Adjusted EBITDA Rs 1,339 Mn, up 20% YoY; margin 19.4%.
• Adjusted PAT Rs 138 Mn, up 190% YoY; margin 2.0%.
• North Bangalore hospital contributed Rs 67 Mn in Q1 FY27.
• International revenue Rs 208 Mn, up ~9% YoY.
• Fertility business divested in June 2026; revenue Rs 169 Mn, EBITDA Rs 23 Mn.

Key Developments & Capacity Expansion

• North Bangalore Hebbal hospital commissioned May 2026; 56 beds operational in first phase.
• MR Linac commissioned July 2026 at North Bangalore.
• Total 121 beds added across the network in the quarter.
• Rajkot hospital now a Comprehensive Cancer Care centre after new LINAC.
• Two high-end robotic systems added; Nashik and Bangalore CoE replacements.

Outlook & Strategic Focus

• North Bangalore expected to contribute as empanelment progresses.
• Management focused on capacity expansion and investments in innovation.
• Emphasis on high-potential markets and sustainable, profitable growth.

Business Overview

• Largest Pan-India oncology-focused hospital chain; 26 hospitals in India and Kenya.
• Strategic exit from Milann; Fertility divested in June 2026.
• North Bengaluru hospital expansion: 56 beds operational May 2026; MR-Linac commissioned July 2026.
• Rights issue completed; balance sheet strengthened and financial flexibility enhanced.
• Bed pipeline target: 1,000 beds by FY30, ~60% brownfield expansion.
• Payor mix shifting toward cash and TPA; ARPP affected by case-mix changes.

Operational Highlights

• Q1 FY27 revenue 6,951 Mn, up 13% YoY; volume growth 11%, ARPP up modestly.
• North Bangalore centre contributed INR 67 Mn revenue in Q1 FY27.
• Total 121 operational beds added: 56 North Bangalore, 26 Ranchi, 19 Borivali, 8 Nashik, 5 Hubli, 7 Kenya.
• Rajkot upgrade: new LINAC; robotics expansion at Nashik and Bangalore CoE.
• International revenue INR 208 Mn; up 9% YoY.
• Fertility divestment revenue INR 169 Mn and EBITDA INR 23 Mn in Q1 FY27.

Financial Performance

• Total revenues from operations INR 6,951.0 Mn; YoY growth 13.4%.
• Adjusted EBITDA INR 1,338.7 Mn; margin 19.4%; excludes North Bangalore losses and EPCG provision.
• Reported EBITDA INR 1,222.6 Mn; margin 17.6%.
• PAT INR 137.7 Mn; PAT margin 2.0%.
• North Bangalore losses INR 70.2 Mn; one-time costs INR 45.9 Mn; ESOPs not in Q1 FY27.
• Tax and NCI: INR 112.6 Mn; PAT after tax.

Capital Structure & Liquidity

• Rights issue completed; strengthened balance sheet and financial flexibility.
• No disclosed debt or liquidity details in this chunk; ongoing capex funded by rights issue.

Strategic Priorities & Outlook

• Brownfield share ~60%; 188 beds in FY27; two greenfield projects in pipeline.
• FY27 capex ~INR 1,500 Mn; FY28-29 ~INR 3,000 Mn; FY30 ~INR 1,000 Mn.
• FY27 adds 188 beds; FY28-29 adds ~520 beds; FY30 adds ~230 beds.
• Two greenfield projects in pipeline; additional beds at Suchirayu, Jaipur, Nagpur, HCC Ahmedabad.

Risks & Mitigation

• ARPP sensitive to case-mix changes and government schemes; mitigated by cost optimization and productivity.
• North Bangalore start-up losses affect reported EBITDA; offset by growth elsewhere.

Governance & Leadership

• Management team strengthened; leadership fully onboarded; governance framework enhanced.
• Milann exit completed; focus sharpened on core oncology; strategic leadership in place.

Issue Overview

• Type: rights issue; securities: equity shares.
• Total issue size reported; no undersubscription; net proceeds unchanged.
• Main objects: pre-payment of borrowings; Vizag stake acquisition; general corporate purposes; issue-related expenses.

Utilisation of Proceeds

• Utilisation aligned with offer document disclosures.
• No material deviation; expenses revised with 0.26 crore reallocated to GCP.
• Pre-payment of borrowings: Fully utilised in Q1 FY27.
• Vizag stake acquisition: Fully utilised in Q1 FY27.
• General corporate purposes: Fully utilised; portion from Monitoring Account.
• Issue related expenses: Utilised; reimbursements from CC/MA accounts.
• Unutilised funds: Nil.

Governance and Compliance

• All statutory approvals obtained.
• No material events affecting viability reported.
• No other material information identified.

General Corporate Purpose (GCP)

• GCP utilised about 95.83 crore in Q1 FY27.
• Board approval for GCP allocation not explicitly indicated.

Deviation status and fund utilisation

• Purpose: confirm no deviation or variation in utilisation of Rights Issue proceeds.
• Mode of fund raising: Rights Issue.
• Date of raising funds: not specified in this summary.
• Amount raised: amount disclosed in filing; not shown here.
• Deviation: No.
• Shareholder approval: Not applicable.
• Monitoring agency: applicable; name not disclosed.
• Audit Committee comments: No comments.
• Auditors comments: No comments.
• Status of fund utilisation: No deviation; utilisation aligned with stated objects.
• Objects table: no material deviation; original vs modified allocations align.

Cost Auditor Re-appointment

• Re-appointment of Rao Murthy & Associates as Cost Auditor for FY 2026-27, effective Aug 6, 2026.
• Bengaluru-based firm established 1994, led by N. Ramaskanda and K.R. Murali Krishna.