Are Healthcare Global Enterprises Ltd latest results good or bad?

Healthcare Global Enterprises Ltd's latest financial results for the quarter ended September 2025 present a mixed picture. The company reported consolidated net sales of ₹646.85 crores, reflecting a year-on-year growth of 16.86%, which is an improvement from the previous year's growth rate of 13.68%. This performance indicates a strong revenue trajectory, driven by increased patient footfall and enhanced service offerings across its network of cancer care centres. However, the consolidated net profit for the same period was ₹16.27 crores, which represents a decline of 9.56% compared to the previous year, contrasting sharply with the profit growth of 32.57% seen in the same quarter of the prior year. This decline raises concerns about the company's profitability despite the revenue growth. The operating margin, excluding other income, improved to 19.11%, up from 18.51% in the previous year, indicating some operational efficiency gains. Yet, the profit after tax margin of 3.20% remains below historical averages, reflecting the impact of elevated interest costs and depreciation charges, which have constrained bottom-line growth. Additionally, the company's balance sheet reveals significant leverage, with a debt-to-equity ratio of 1.61 times, which may limit financial flexibility and raise concerns among investors. The recent drastic reduction in promoter holding from 88% to 5.52% also introduces uncertainty regarding corporate governance and future direction. In summary, while Healthcare Global has demonstrated strong revenue growth and some operational improvements, the decline in net profit, high leverage, and changes in shareholding dynamics suggest that the company faces considerable challenges ahead. The company saw an adjustment in its evaluation, reflecting these complexities in its financial performance.