HCGNSEDecember 11, 2025

Healthcare Global Enterprises Limited

12,700words
106turns
15analyst exchanges
1executives
Management on call
Manish Mattoo
EXECUTIVE DIRECTOR & CEO
Key numbers — 40 extracted
0.9%
d approach and well-defined treatment protocols enable industry-leading gross mortality rate of 0.9%, which is one-half to one-third of other multispecialty peers. The thesis is simple: Specialist f
rs,
cess to some very interesting markets, which are growing quite well of late. If I look back 15 years, HCG's journey can be broken up into three phases. In the first phase, which was from 2010 to 2015,
27%
few markets outside the state through our doctor partner model. This phase saw a revenue CAGR of 27% and an EBITDA CAGR of 30%. The next phase was from 2015 to 2020, which saw us expanding rapidly i
30%
tate through our doctor partner model. This phase saw a revenue CAGR of 27% and an EBITDA CAGR of 30%. The next phase was from 2015 to 2020, which saw us expanding rapidly into eight new cities, eigh
16%
ift from a doctor-operated model to a fully-owned model. And this phase gave us a revenue CAGR of 16% and an EBITDA CAGR of 14%. The last five years, from FY2020 to FY2025, have r
14%
model to a fully-owned model. And this phase gave us a revenue CAGR of 16% and an EBITDA CAGR of 14%. The last five years, from FY2020 to FY2025, have really been about consolida
15 %
tion, capital preservation, and operational efficiency. But this phase also saw a revenue CAGR of 15 % and an EBITDA CAGR of 18%, but throughout these phases, what has been important is the expansio
18%
and operational efficiency. But this phase also saw a revenue CAGR of 15 % and an EBITDA CAGR of 18%, but throughout these phases, what has been important is the expansion of the capacity. Our platf
15%
e at 2,500 plus beds. Our revenue increased 15- fold in this same time frame and grew at a CAGR of 15% and EBITDA grew at 16-fold at a CAGR of 18%. But while we were expanding across these years, one
10%
ee on the left-hand side of slide #8, our cancer coverage by the National Cancer Registry is only 10%, whereas in China it is about 40% and US is about 90%. What that means is a large portion of popu
40%
#8, our cancer coverage by the National Cancer Registry is only 10%, whereas in China it is about 40% and US is about 90%. What that means is a large portion of population is beyond the formal cancer
90%
e by the National Cancer Registry is only 10%, whereas in China it is about 40% and US is about 90%. What that means is a large portion of population is beyond the formal cancer care ecosystem and
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Guidance — 20 items
Manish Mattoo
opening
“This phase saw a revenue CAGR of 27% and an EBITDA CAGR of 30%.”
Manish Mattoo
opening
“And this phase gave us a revenue CAGR of 16% and an EBITDA CAGR of 14%.”
Manish Mattoo
opening
“But this phase also saw a revenue CAGR of 15 % and an EBITDA CAGR of 18%, but throughout these phases, what has been important is the expansion of the capacity.”
Manish Mattoo
opening
“Our revenue increased 15- fold in this same time frame and grew at a CAGR of 15% and EBITDA grew at 16-fold at a CAGR of 18%.”
Manish Mattoo
opening
“We are going to have a reported incidence of 4 million cases likely, but the real incidence will be around 6 million, which is a huge number.”
Manish Mattoo
opening
“And that is the currency going forward that hospitals will have to build.”
Manish Mattoo
opening
“In FY2025, we achieved a revenue of over Rs.2,200 crore at a CAGR of 15%.”
Manish Mattoo
opening
“Our EBITDA in the same time frame of FY20-25 actually doubled to Rs.396 crore and grew at a CAGR of 18% really through a sharper focus on operational efficiency, on cost discipline, and also the improving maturity of our network.”
Manish Mattoo
opening
“And going forward as well, we expect to maintain a similar trajectory in the coming quarters.”
Manish Mattoo
opening
“On an overall basis we will show you EBITDA margins for profitability and ROCE for capital efficiency and I will be discussing these metrics with you every quarter.”
Risks & concerns — 6 flagged
Another challenge that we are facing is lack of early detection.
— Manish Mattoo
And we can see cancer is a fast-growing speciality in this country, probably the fastest, growing at a 13% to 14% growth per annum, out of which 9% to 10% is driven by volume alone, because of factors like aging, demographic change, rise in risk factors, and so on and so forth, as well as affordability.
— Manish Mattoo
As I had mentioned earlier, it is one half to one third of multi-specialty peer and it is something very difficult to replicate.
— Manish Mattoo
Even our histopathology today is organ specific and that is something very, very difficult to replicate.
— Manish Mattoo
One of HCG's strongest clinical differentiators has been the Tumour Board platform, the Tumour Board program, which we have been running consistently for the last 17 years, which ensures that every patient, every complex case, every challenging, rare, difficult case undergoes a multi-specialist review.
— Manish Mattoo
Firstly on some centres, as someone alluded to earlier, some centres, especially, for example, the South Bombay Centre, have been a drag on the profitability metrics.
— Rajas Joshi
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Q&A — 15 exchanges
Q
Thank you for the opportunity and thank you for the presentation, sir. First question would be, you have laid out a strategy, but if you could speak more about the future outlook for the business, what kind of revenue growth do you expect over the medium-to-long term? If you can speak more about that, please.
Manish Mattoo
Yes, sure, Gaurav. Thank you for the question. See, over the last five years, we have consistently delivered revenue growth of over 15% per annum, and that has outpaced the broader industry trajectory. Looking ahead, we aim to sustain if not exceed this momentum and continue to grow faster than the overall market that is a key direction that we are going in and this will be driven by a couple of factors first, we want to realise the full potential of our existing network. There is the brownfield expansion in play in our existing markets and high potential markets. And we aim to improve our cas
Q
Thank you for the opportunity. Manish, if you can just highlight that if you see a lot of multi- speciality hospitals are also stepping up the investments in the Oncology. So how are we positioned against them and what will be our value proposition?
Manish Mattoo
Thanks, Param. Again, a very relevant question. See, I think as I alluded to in my presentation as well, cancer is a very complex disease to handle and it requires a super-speciality focus, which we have delivered and shown that clinical outcomes that we deliver are far superior to multi-speciality hospitals. Now, it is incumbent on us to actually deliver this message to patients over and over again and reinforce on this, which we see happening today. We get a lot of patients for second opinions, third opinions that come to our centres because they believe that what we deliver is definitely su
Q
Hi, good evening. Thank you for the detailed presentation. Sir a few questions. First is on the payor mix. Like over the next three to four years, how do you plan to optimize the payor mix currently as like in FY2025, your institutional mix was 34%. So can we expect that to reduce? And within this, how much is CGHS?
Manish Mattoo
Gaurav, thanks for that question. In that institutional business, CGHS is in the range of 12% to 13% from the institutional business. And as far as optimizing the payor mix is concerned, as I had mentioned, it will be driven by a couple of factors. One is the kind of infrastructure that we are upgrading it to. Second how are you focusing on optimizing and enhancing patient experience significantly? Cancer patients have special needs. How we understand those needs and deliver on improving their experience through multiple cycles that they come to the hospital for? Third is, how do we activate o
Q
So, the mortality rate is actually calculated as the number of deaths inside the hospital over the total number of discharges that we have in that hospital in that specific time frame. So that is how it is calculated. And it is a standard metric that is calculated across all hospitals.
Management
Q
So, from time to time, we undertake an exercise to understand where we are, in terms of pricing vis-à-vis our competitors, and currently also we have undertaken that exercise which should get over in the next couple of weeks, which will give us our positioning in each market, and then the opportunities that lie in front of us but it is a very scientific exercise, and we want to rely on data coming from proper due diligence. So we will take an appropriate call on that once we have that research and we want to do that exercise annually and not just every two, three years.
Management
Q
I think many of our doctors are on a retainer fixed model. And I think that is the preferred model that we have in our system, people who are full timers with us. But of course, different markets have different nuances, like the Western cluster, many of the doctors prefer to be on a fee for service model, which is a reality and constraint of that market, and we have to align to that but in many of our centres, the model is a fixed retainer model and unless there is a necessity and need, we do not intend to change that going forward. And multimodality suits a full-time model. Since we have a mu
Management
Q
Yes, good evening. And thank you for the opportunity, sir. So just, what explains the fact that some of the multi-specialty hospitals have seen their revenue growth to be slightly faster than your growth? Is it to do with the case mix? There may be some higher end surgeries, a lot of patients in metros prefer to go there and maybe follow up chemo or prefer to come to a city. Is it something like that? Or what can you attribute it to?
Manish Mattoo
I think the 15% revenue growth that we have delivered at a network level, I would say is marginally higher than industry. There may be one odd player who is probably delivered a higher revenue growth because of the certain markets that they are present in. That could be one of the factors responsible. Sure. You in the presentation mentioned the number of centres that you have, right? Yes. But can you share because I am sure not all centres would be having all the services on offer because it would be very expensive, to have doctors across all modalities in one centre. Right. So, perhaps that c
Q
Yes, thank you. Firstly on some centres, as someone alluded to earlier, some centres, especially, for example, the South Bombay Centre, have been a drag on the profitability metrics. So, given how some cities like Mumbai, the treatment protocol is different, what would be your strategy going ahead for these specific cities and these specific centres to be precise?
Manish Mattoo
Thank you for your question. See as I had mentioned earlier as response to another question earlier also, we will refrain from giving central level guidance going forward but however, to quickly answer your question. South Mumbai has historically faced some challenges in ramping up as compared to our other centres, but if you look at the overall Bombay cluster today, HCG is now among the top oncology players in that market. But at a network level, we are working through several initiatives to improve the performance of our centres, as I had mentioned, by augmenting the clinical talent, by intr
Q
Sir, most of my questions are answered. Just trying to understand, sir, what kind of realisation growth exactly we can expect in upcoming years? What kind of the inpatient volume growth that we can look for the existing centres in the upcoming years?
Manish Mattoo
Overall, we are looking at 4% to 5% realisation improvement every year. And the volume growth will be in the region of 9% to 10%. And that is what we are anticipating in the near to midterm. And sir this Rs.600 crore of capex plan, how could we see the funding about this Rs.600 crore capex and debt position in next three to four years? Net debt to EBITDA ratio is two-and-a-half times today and we are comfortable with that right now. And a lot of this capex funding is going to come from internal accruals, because we are mindful of this leverage ratio. We are able to fund our growth capex throug
Q
Yes. Hi. Thank you. I am referring to the slide that you had shared, slide number 38, which gives a cut off, the facilities in terms of revenue per month, right? So you show about Rs.10 centres which are less than Rs.5 crore a month and 11 centres which are between Rs.5 crore to Rs.10 crore a month. So what is the vintage of these two buckets and are there particular reasons that you identified that despite long vintage they are in this bucket? Is there a particular reason or is just that these are not matured? Because my impression was that not many new assets have been added in the portfolio
Manish Mattoo
The bucket which has centres doing more than Rs.10 crore per month are about 10 years plus vintage and the middle bucket that I mentioned are about six to seven years. What about the last bucket? It is less than five years that mostly but it is not just a function of vintage alone, it is also a function of size. So some of the centres may be old but may be smaller in size and hence delivering less than Rs.5 crore per month revenue. Ongole for example is an example which is an old centre but delivering less than it because of the size of the hospital. Okay, thank you for that answer. There is o
Q
Yes. So as far as capital is concerned, we have actually conserved capital in the last five years. Our net debt to EBITDA ratio, if you see, has come down quite significantly in the last five years. And to answer your next question, the split between brownfield and greenfield on those 1,000 beds, I think brownfield will add about 700 beds through that route. And in markets like Ahmedabad, Vizag, Baroda, Cuttack, so that is our brownfield expansion plan. And as far as greenfield expansion is concerned, in newer cities like Pune, Surat, Varanasi, Kanpur, to name a few, while it is just indicativ
Management
Q
Yes for our greenfield expansion will largely happen through our internal accruals so we are very clear about it. And as far as margin forecast is concerned, as I had mentioned earlier, that is the timeline of roughly three years that we have in mind to reach that number.
Management
Q
Well, I think culturally, both organizations are very similar, if you ask me, because the focus is on hiring of good clinical talent, developing clinical programs, high on ethics and integrity, and really focusing on clinical outcomes. And also, expansion at a pan India scale. These are similarities. Differences on account of the fact that Apollo is a multi-specialty chain vis-à- vis, HCG being a single speciality oncology-focused chain, there are some differences in terms of the variables at play in both these organizations in terms of scale and size. But other than that, if you ask me, not m
Management
Q
Yes, I think the big learning in my stint at Apollo was that how to deepen clinical programs, and how to make organizations attractive for clinicians to come on board. What kind of support do the clinicians need really, when they transition from a different organization to yours? How do you help promote them? How do you help them with technology, the right infrastructure in place? And how do you really scale up medical programs? That really was my learning. And that was the reason we were able to deliver what we were able to deliver in that three, four-year time frame that I was with Apollo. A
Management
Q
Thank you so much, everyone. I think it was a wonderful interaction and a very interesting and insightful set of questions. I really enjoyed presenting HCG's vision to you and I look forward to interacting with you in the future and really deliver on the numbers that we have spoken about, really excited about the path that HCG is taking now in partnership with KKR and I look forward to more such fruitful and engaging interactions. Thank you so much. Have a good evening. Disclaimer: This is a transcription and may contain transcription errors. The transcript has been edited for clarity. The Com
Management
Speaking time
Manish Mattoo
48
Moderator
16
Kunal Randeria
7
Rajas Joshi
7
Dheeresh Pathak
7
Gaurav Tinani
4
Param Desai
4
Sumit Gupta
4
Ritika Khandelwal
3
Rahul Agrawal
3
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Opening remarks
Manish Mattoo
Good evening, everyone, and thank you for joining in. I am Dr. Manish Mattoo, CEO of HCG. I welcome you all to HCG's Virtual Investor and Analyst Meet. Today, I would like to take the opportunity to walk you through HCG's journey as leaders in cancer care, how we are thinking about our value proposition, our clinical differentiation, our patient care and outcomes, and more importantly, what is our vision for the future. How are we thinking ahead to advance our mission, backed by a clear strategy to compound our EBITDA with a disciplined approach to capital allocation. Today, HCG is India's largest cancer-focused oncology platform, with deep presence across India in metros as well as non-metros. Backed by 20 years of experience, HCG has built one of the most extensive and talented pool of clinicians in the country. Our patient-centric approach backed by focused tumour board approach and well-defined treatment protocols enable industry-leading gross mortality rate of 0.9%, which is one-h
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