HealthCare Global Enterprises (HCG IN) – Q4FY26 Result Update – Multiple levers for margin acceleration – BUY
Published on 21 May 2026
HealthCare Global Enterprises’ (HCG) Q4 consolidated EBITDA grew by 18% YoY to INR 1.25bn, in line with our estimates. Mgmt reiterated higher EBITDA growth than historical growth in coming years. HCG’s asset-light approach with a focus on partnerships has made its business model more capital efficient and scalable, in our view. We believe the recent strategic investment by KKR and exit from low margin fertility business will bring in more operational and financial efficiency. Currently, HCG enjoys ~14% PRE IND-AS margin, which is lower than its peers. We expect KKR to drive growth through bed expansion largely brownfield, better payor mix, focused marketing initiatives and scale up of margins. We expect ~23% EBITDA CAGR over FY26-28E. At CMP, the stock trades at attractive valuations of 19x EV/EBITDA adjusted for rentals and minority. Recommend ‘BUY’ rating with a TP of Rs820/share valuing at 22x on FY28E EV/EBITDA.
