Healthcare Global Enterprises Reports 16% Revenue Growth in Latest Financial Update

Healthcare Global Enterprises posted a 16 percent year-on-year increase in revenue to ₹732 crore, alongside an expansion in EBITDA margins. The company also reported growth in Average Revenue Per Patient and outlined its future operational targets.

NEW DELHI — Healthcare Global Enterprises has released its financial and operational performance indicators, showing steady top-line growth and margin expansion across its operating clusters.

During the period under review, the company delivered revenues of ₹732 crore, marking a 16 percent increase compared to the previous year. According to the reported data, top-line growth in Gujarat experienced a slight tempering due to strategic rationalisation involving lower-realisation institutional contracts, a move aimed at improving overall margins.

The company registered an EBITDA margin of 19.7 percent, expanding 50 basis points from 19.2 percent. This resulted in an EBITDA of ₹143 crore, reflecting a 17 percent growth. For the first half of the year, Adjusted PAT reached ₹29 crore, representing a 30 percent increase. Operational losses narrowed to ₹6.1 crore at the ramping north Bengaluru facility.

Key operating metrics showed positive movement, with the Average Revenue Per Patient (ARPP) increasing by 7 percent. This improvement was supported by payor-mix gains, which saw the non-institutional mix rise by over 300 basis points to 69 percent, further aided by the adoption of high-complexity oncology treatments.

Looking ahead, management has provided guidance pointing toward mid-teens revenue growth and high-teens EBITDA expansion. The North Bengaluru facility, which currently maintains an EBITDA loss of ₹6.1 crore, is slated to achieve monthly breakeven by Q4-FY27. Additionally, the network added 146 operational beds during H1FY27.

The company noted that its margin trajectory has remained resilient despite recent price caps on oncology drugs, supported by gains in the non-institutional mix and ongoing operating efficiencies. Furthermore, the utilisation of rights issue proceeds funded a strategic buyout in Visakhapatnam and enabled ₹170 crore of planned debt reduction.

Market analysts currently evaluate the stock with an EV/EBITDA of 15.5x for FY29E, compared to the earlier 17.5x for FY28E, with a target price set at ₹820 per share, up from ₹785 per share. Analysts have maintained a Buy recommendation on the stock based on these financial outcomes.

"Healthcare Global Enterprises has demonstrated steady financial discipline by balancing top-line growth with margin expansion. The deliberate shift toward a non-institutional payor mix and the focus on high-complexity treatments highlight how strategic operational adjustments can offset external pressures like drug price caps. As the company works toward reducing debt and achieving operational breakeven at its newer facilities, its methodical approach serves as a notable example of sustainable healthcare management in a competitive market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes