Health.Global Q1 FY27 Results (NSE: HCG)
Signal: Margin expansion
The read
The operating trajectory improved after the recent margin volatility: revenue growth remained positive at 13% YoY, volume growth of 11% exceeded ARPP growth of 2%, and adjusted EBITDA margin expanded 121bps YoY to 19.4%; however, statutory PAT of ₹13.77 Cr is low-quality because other income of ₹12.13 Cr equalled 50.3% of PBT, while adjusted EBITDA excludes ₹7 Cr of North Bangalore losses.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹695.1 Cr | +13% | +7% |
| EBIT | ₹63.97 Cr | N/A | |
| Net profit | ₹13.77 Cr | N/A | |
| EPS | ₹0.92 | +187.5% | |
| EBIT margin | 19.4% |
P&L walk
Consolidated revenue reached ₹695.1 Cr, +13% YoY and +7% QoQ, led by 11% volume growth; adjusted EBITDA grew 20% to ₹133.9 Cr and margin expanded to 19.4%, while statutory PAT was ₹13.77 Cr and is not directly comparable with adjusted PAT because other income contributed 50.3% of PBT.
Segments
No formal segment-results table is disclosed; operational momentum is broad-based, with 16 of 25 centres excluding North Bangalore recording highest-ever quarterly revenue and North Bangalore contributing ₹6.7 Cr despite opening in May 2026.
Key positives
- Revenue of ₹695.1 Cr grew 13% YoY, supported by 11% volume growth and 17% growth in non-institutional revenue.
- Adjusted EBITDA grew 20% YoY to ₹133.9 Cr versus 13% revenue growth, and adjusted EBITDA margin expanded 121bps YoY to 19.4%.
- Capacity expanded by 121 operational beds during the quarter, including 56 beds at North Bangalore and 26 at Ranchi.
- Non-institutional revenue contribution increased from 67% to 69%, while ARPP rose 2% YoY on favourable payor mix.
Key concerns
- Statutory PAT was only ₹13.77 Cr while other income was ₹12.13 Cr, equal to 50.3% of consolidated PBT, making earnings quality dependent on non-operating income.
- Adjusted EBITDA excludes ₹7 Cr of North Bangalore loss, so the reported 19.4% margin overstates current consolidated operating profitability until the new hospital ramps up.
- ARPP growth of 2% trailed volume growth of 11%, and management noted that lower high-value, low-margin therapy contribution affected case mix.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.