Archive · 2 Jun 2025
HCG Eyes 20% Margin in FY26, Focusing on Outpatient Care
Imagine a hospital chain that specializes in cancer care called HCG.
They're aiming to make more money this year.
They have been doing well with cancer treatment and want to focus more on treating patients as outpatients.
They want more patients to come to them for treatment during the day.
The company is also adding new beds, but most of the growth will come from people coming in for treatment without staying overnight.
The average money made per patient bed is going up.
The company is also being acquired by another company, and the existing executives will keep their current ownership stake.
HCG expects a 20% operating margin in FY26, focusing on outpatient oncology.
Q4FY25 margins dipped to 17.8% from 18.4% a year ago.
HCG plans to add 900 beds this year, but anticipates most revenue growth from outpatient services.
ARPOB is around ₹45,000 and growing at 3.5–4% annually, with higher figures in urban areas.
KKR's acquisition is in progress; BS Ajaikumar will retain his stake.
- Who
- HealthCare Global Enterprises (HCG)
- What
- HCG is targeting a 20% margin in FY26 focusing on outpatient care.
- When
- Q4FY25 and FY26
- Where
- Mumbai, Ahmedabad, Bangalore, and other urban centers
- Why
- Due to the shift towards outpatient-focused oncology model and stronger revenue from urban centres.
- FY26 Margin Target
- At least 20%
- Q4FY25 Margin
- 17.8%
- ARPOB
- ₹45,000 (Growing 3.5-4% annually)
- Outpatient Revenue
- 65-70% of sales
- Mumbai ARPOB
- Over ₹70,000
- Planned Bed Additions
- Nearly 900
