Krishna Institute of Medical Sciences Limited hosted a conference call with analysts and investors on Tuesday, August 4, 2026, at 10:00 AM IST, following the declaration of its Q1FY27 financial results. The discussion covered the company's business strategy, future outlook, and key operational updates across its hospital network. Management shared updates on ARPOB growth guidance, new hospital units, near-term growth drivers, EBITDA margin trajectory, occupancy targets for its Telangana facilities, and long-term revenue potential for its Kondapur facility.

ARPOB Growth Guidance

During the Q1FY27 concall, management confirmed its guidance for Average Revenue Per Occupied Bed (ARPOB) growth, a key metric that reflects the revenue efficiency of occupied hospital beds. The company reaffirmed a 4%-5% growth trajectory for ARPOB, while explicitly characterising higher estimates of 6%-7% as too aggressive.

Kondapur Hospital Revenue Potential

Management highlighted the long-term revenue potential of its Kondapur hospital during the Q1FY27 concall. The company expects the Kondapur Hospital to reach its full potential of approximately ₹1,200 crore in annual revenue over the next 4 to 5 years, underscoring management's confidence in the facility's scale and demand outlook.

Telangana Occupancy Outlook

Management outlined occupancy targets for its hospitals in Telangana, including facilities with new beds at Kondapur and the renovated Secunderabad facility. The company aims to achieve approximately 70% occupancy across these Telangana hospitals within 3 to 4 years, reflecting confidence in sustained demand growth as new capacity is absorbed and operational efficiencies improve.

EBITDA Margin Outlook

Management provided forward-looking margin guidance during the Q1FY27 earnings call, outlining a phased improvement in profitability over the near to medium term.

The company expects EBITDA margins to remain below 10% in FY27, reflecting the near-term impact of new facility ramp-ups and associated costs. Margins are projected to recover to mid-teens in FY28, before stabilising at 20%-22% over the coming 2-3 years as new units mature and operational efficiencies improve.

Concall Highlights

Management also provided key updates on the performance and trajectory of its newly launched and upcoming hospital facilities during the Q1FY27 earnings call.

The new hospital unit's strong start, recording almost 40% growth in its first month of operations, reflects healthy early-stage demand. The Thrissur Hospital is expected to open within 3 to 4 months, adding further capacity to the company's expanding network.

Conference Call Details

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was submitted to the Bombay Stock Exchange Ltd and the National Stock Exchange on July 28, 2026. The call was hosted by IIFL Capital, which circulated the invitation details to market participants.

Key Management Participants

Key management personnel who participated in the conference call are listed below. Their presence ensured that both strategic and financial aspects of the Q1FY27 performance were addressed comprehensively.

Dial-In Details

The conference call was accessible via toll-free numbers for both domestic and international participants. The access details are provided below.

A Diamond Pass registration was also available for enhanced access. For further information regarding the conference call, investors could contact Rahul Jeewani, Naman Bagrecha, Aman Goyal, or Vighnesh Indure at IIFL Capital. The company secretary and compliance officer, Dr. Nagajayanthi J. R., signed the disclosure document, confirming the accuracy of the intimation.

Krishna Institute of Medical Sciences reported a 35.3% year-on-year surge in consolidated revenue from operations to ₹1,180 crore for the quarter ended June 30, 2026 (Q1FY27), driven by robust patient volume growth and the integration of new hospital assets. Consolidated net profit attributable to owners declined to ₹41.50 crore from ₹78.60 crore in the same period last year, reflecting higher operational costs from ongoing expansion. EBITDA stood at ₹220 crore, with EBITDA margin contracting to 18.94% from 22.10% year-on-year. The Board of Directors approved the unaudited financial results on August 3, 2026.

Financial Performance Highlights

The company's total income reached ₹1,196 crore, marking a 36.1% increase year-on-year and a 10.3% rise quarter-on-quarter. Profit before tax (PBT) fell 50.2% year-on-year to ₹57 crore, impacted by statutory adjustments related to new Labour Codes and fair valuation losses on call options. Basic earnings per share (EPS) degrew by 47.2% to ₹1.04. The following table summarises key financial metrics across comparable periods:

Operational Growth and Volume Metrics

Patient volumes were the primary driver of top-line growth. Inpatient (IP) admissions rose 26.6% year-on-year to 72,493, while outpatient (OP) visits increased 28.5% to 658,617. Average Revenue Per Occupied Bed (ARPOB) increased 9.7% year-on-year to ₹47,200. Average Revenue Per Patient (ARPP) rose 6.8% year-on-year to ₹1,63,573, though it declined 3.8% quarter-on-quarter. The group's bed capacity expanded to over 8,300 beds across 26 hospitals, with plans to add more than 1,300 beds in upcoming projects.

New O&M and Strategic Agreements

Krishna Institute of Medical Sciences signed Operations & Management (O&M) and Call Option Agreements with Golden Lan and Sarwottam Healthcare, marking further steps in its asset-light expansion strategy. These agreements are consistent with the group's approach of managing hospital facilities under O&M arrangements while retaining the option to acquire ownership stakes at a future date. The addition of these partnerships is expected to broaden the group's geographic footprint and contribute to revenue ramp-up over time.

Regional Performance and Clinical Milestones

Telangana remained the largest revenue contributor. Newer markets showed early traction: Kerala units generated revenue with an EBITDA margin of 9.7%, while Maharashtra units posted an EBITDA margin of 7.5%. Karnataka units continued to face headwinds. Clinically, KIMS Secunderabad completed 10,000 brain tumour surgeries. KIMS Kingsway Nagpur performed its first allogeneic bone marrow transplant and the first robotic Perceval plus valve implantation in Asia Pacific. KIMS Saveera Anantapur achieved the region's first Transcatheter Aortic Valve Replacement (TAVR).

What the Numbers Show

The divergence between robust revenue growth and declining net profit highlights the capital-intensive nature of KIMS' expansion strategy. While EBITDA growth confirms operational activity in core units, the bottom line is pressured by initial setup costs, higher finance expenses, EBITDA margin compression, and non-controlling interest impacts in newly acquired facilities. The ramp-up of O&M units, including the newly signed agreements with Golden Lan and Sarwottam Healthcare, suggests improving returns on recent investments as occupancy rates stabilise.