Healthcare Global Enterprises Ltd (HCG) Q1 FY27 Results Analysis: Revenue Growth Misses 15% Target, EBITDA Margin Expansion Minimal

Healthcare Global Enterprises Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 693.39 Cr (+13.34% YoY) and PAT growth of +189.89% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Consolidated revenue growth of 13.34% missed the 15%+ guidance, while standalone growth met the target. EBITDA margin expansion was minimal, raising concerns about achieving the annual 100 bps target. Strong PAT growth was partly driven by one-time gains and lower finance costs.

Key Investment Insights

Key Positives

• Standalone revenue grew 15.13% YoY, meeting the 15%+ guidance
• PAT-owners grew 189.89% YoY to Rs.13.77 Cr
• Finance costs declined 12.32% YoY, reflecting deleveraging
• Normalized PAT-owners (excluding one-time gain) grew 148.8% YoY
• Subsidiary contribution to PAT-owners increased to 59.5% from 27.4% YoY

Risk Factors

• Consolidated revenue growth of 13.34% YoY missed the 15%+ guidance
• EBITDA margin expanded only 4 bps YoY, below the 100 bps annual target
• Medical consultancy charges grew 18.38% YoY, outpacing revenue by ~500 bps
• Other expenses grew 17.16% YoY, also outpacing revenue