Krishna Institute of Medical Sciences Limited reported a 28.2% year-on-year increase in consolidated revenue to ₹39,308 million for FY26, offset by a 41.7% decline in profit after tax (PAT) to ₹2,420 million. The earnings contraction stems from significant initial gestation costs associated with aggressive network expansion across new geographies, including simultaneous launches in Mumbai and Bengaluru. Despite the dip in profitability, operational volumes remained robust, with inpatient (IP) and outpatient (OP) volumes growing by 15.4% and 25.4% respectively.

The filing, submitted pursuant to Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, highlights that EBITDA grew modestly by 1.6% to ₹8,282 million, resulting in a group EBITDA margin of 21.1%. Management attributes the temporary strain on profitability to the ramp-up phase of newly commissioned facilities, viewing these investments as necessary precursors to long-term shareholder value creation. The company also raised ₹1,500 crore through an oversubscribed Qualified Institutional Placement (QIP), with ₹1,100 crore already utilized for debt reduction.

Operational Performance and Expansion

The healthcare group expanded its footprint significantly during FY26, launching units in Mumbai, Bengaluru, Sangli, Kollam, and Guntur, alongside subsequent openings in Kompally and Palakkad. This expansion contributed to a total bed capacity of 6,464, of which 4,852 were operational. Occupancy across operational beds remained stable at 50.5%. Average revenue per occupied bed (ARPOB) increased by 14.0% to ₹44,644, supported by higher specialty intensity and improved payor mix. Average length of stay (ALOS) improved to 3.57 days from 3.66 days in FY25.

Cluster-Wise Performance

Mature clusters in Telangana and Andhra Pradesh delivered stable operating performance. The Telangana cluster generated EBITDA of ₹6,820 million on revenue of ₹22,420 million, while Andhra Pradesh reported EBITDA of ₹2,337 million on revenue of ₹9,496 million. In contrast, newer markets are in early operating cycles. The Maharashtra cluster, comprising Nagpur, Nashik, and Thane, reached EBITDA breakeven as occupancy improved to 52.1% from 33.0% in FY25. Karnataka operations are expected to achieve EBITDA positivity by late 2026 and early 2027.

What the Numbers Show

A notable divergence exists between top-line growth and bottom-line performance. While revenue surged nearly 28%, PAT fell by over 40%, indicating that margin compression is currently absorbing the benefits of volume growth. Finance costs more than doubled to ₹2,025 million from ₹903 million in FY25, reflecting increased leverage ahead of the QIP proceeds deployment. Additionally, depreciation and amortization expenses rose sharply to ₹2,832 million from ₹1,772 million, underscoring the capital-intensive nature of the recent expansion. The company’s strategy relies on occupancy ramp-up in new hospitals to drive future margin recovery.

Strategic Initiatives and Governance

Beyond financial metrics, the company highlighted advancements in clinical technology, including the introduction of the region’s first US-based Medtronic Spine Robot and AI-driven Early Warning Systems. Academically, KIMS achieved recognition for completing over 10,000 brain tumour surgeries. On the governance front, the Board approved a preferential allotment of ₹600 crore to promoters, with 25% infused initially and the balance within 18 months. The company did not declare a dividend for FY26, prioritizing capital allocation for expansion and debt reduction.

Krishna Institute of Medical Sciences will convene its 24th Annual General Meeting (AGM) on Thursday, August 27, 2026, at 4:00 PM IST via Video Conferencing/Other Audio Visual Means (VC/OAVM). The meeting aims to adopt the audited financial statements for FY26, re-appoint a retiring director, and seek shareholder approval for significant financial powers, including loan and guarantee limits up to ₹650 crore.

The notice, issued pursuant to Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, outlines both ordinary and special business items. The ordinary business includes the consideration of standalone and consolidated financial statements for the year ended March 31, 2026, along with the reports of the Board of Directors and Auditors. Additionally, shareholders will vote on the re-appointment of Ms. Dandamudi Anitha (DIN: 00025480) as a Director, who retires by rotation.

Key Resolutions for Approval

The AGM agenda features three critical resolutions requiring shareholder consent:

Under Item 3, the Board seeks to ratify the remuneration of ₹6.00 Lakhs, excluding applicable taxes, payable to M/s. Sagar & Associates for conducting the cost audit for FY27. This appointment was recommended by the Audit Committee.

Financial Powers and Compliance

Items 4 and 5 involve special resolutions to expand the company’s financial flexibility. Under Section 185 of the Companies Act, 2013, the Board seeks approval to provide loans, guarantees, or securities to subsidiaries, associates, or joint ventures where directors have an interest, up to ₹650 crore over and above Section 186 limits. Similarly, under Section 186, the Board seeks approval for loans, guarantees, or investments in other bodies corporate up to ₹650 crore over the statutory limit of 60% of paid-up capital, free reserves, and securities premium, or 100% of free reserves and securities premium, whichever is higher.

The explanatory statement clarifies that these funds are intended for principal business activities, working capital requirements, and capital expenditure for new projects within the KIMS group. The Audit Committee will monitor these transactions periodically to ensure compliance with arm’s length principles and regulatory requirements. No directors or key managerial personnel have a financial interest in these resolutions.

Voting and Participation Details

Shareholders holding shares as of the record date, August 20, 2026, are eligible to vote. Remote e-voting will be available from August 24, 2026, at 9:00 AM IST to August 26, 2026, at 5:00 PM IST, facilitated by MUFG Intime India Private Limited. Members who vote remotely may still attend the AGM via VC/OAVM but cannot vote again during the meeting. Physical attendance is dispensed with as per Ministry of Corporate Affairs circulars.