HealthCare Global Enterprises (HCG IN) – Q3FY26 Result Update – At inflection point – BUY
Published on 10 Feb 2026
HealthCare Global Enterprises’ (HCG) Q3 consolidated adjusted EBITDA for ESOP and one off cost grew by 20% YoY. Mgmt guided 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 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 16x EV/EBITDA adjusted for rentals and minority. Recommend ‘BUY’ rating with a TP of Rs850/share valuing at 22x on FY28E EV/EBITDA.
