When private equity giant KKR acquired a 54% controlling stake in HealthCare Global Enterprises (HCG) in 2025 for around $400 million (₹3,465 crore) at ₹445 per share, it inherited India's largest cancer hospital chain but an asset that had not lived up to its potential. According to reports from Moneycontrol, KKR roped in Dr Manish Mattoo in June 2025, a physician with over two decades of healthcare leadership experience across Apollo Hospitals, Fortis Healthcare and Medtronic India, to run the company. The stock was trading at ₹706 on August 17, showing strong performance since the acquisition.
Under new management, HCG has implemented significant financial restructuring measures. The company divested its fertility business Milann and completed a rights issue that helped repay debt taken for earlier acquisitions. According to Axis Direct reports, HCG used ₹170 crore from rights issue proceeds to reduce borrowings, improving financial flexibility for future growth. The debt-to-equity ratio has dropped from 2 in FY25 to 1.3 in FY26, demonstrating substantial improvement in the company's financial position.
The sharper focus on oncology is driving significant profitability improvements. In the June quarter, HCG's adjusted EBITDA margin expanded to 19.4% from 18.2% in the year-ago period, while adjusted EBITDA rose 20%. As reported by Moneycontrol, Mattoo noted that margins have improved from roughly 17.2%-17.3% when he took over a year ago to around 19.2%-19.4%, representing an increase of about 200 basis points. The improvement has come despite highly regulated oncology care and increasing price controls on some therapies. Rather than relying on pricing, the company has focused on operational fixes, including improving conversion of patients coming into the system.
HCG has significantly expanded its service offerings and clinical capabilities. The company has added advanced equipment such as surgical robots, digital PET scanners and MR-LINAC systems, while strengthening programmes in bone marrow transplants, precision diagnostics and cell therapies. According to Moneycontrol reports, HCG has recruited around 20 oncologists in recent months. The company's outpatient-to-inpatient conversion rate has risen to about 20% from 12%-13% earlier, while the share of cash and insurance patients has increased to nearly 69% from about 66%. The strategy reflects a broader shift underway at HCG, with the focus now on building a more balanced cancer-care platform spanning surgery, medical oncology, diagnostics and radiation therapy.
HCG is targeting ambitious growth targets under KKR's backing. The company is aiming for 21-22% EBITDA margins over the next two years and eventually 24-25% as benefits of richer payor mix, higher clinical complexity, new hospital ramp-up and operating leverage flow through. According to Moneycontrol, HCG recently opened a new cancer hospital in North Bengaluru and plans multiple projects over the next few years, targeting around 1,000 additional beds by FY30 with nearly 60% coming through brownfield expansion. Patient volumes rose 11% YoY in the June quarter, helping revenue grow 13% to ₹695 crore. Sixteen of HCG's 25 centres delivered their highest-ever quarterly revenues during the period. Unlike the previous ownership period, when expansion was relatively conservative, KKR is backing both capacity additions and selective acquisitions, with Mattoo stating the company will pursue value-accretive opportunities that align with their values and help expand their presence.
