Kovai Medical Center and Hospital Limited has corrected an inadvertent arithmetical error in its tax expense for the quarter ended March 31, 2026, resulting in a revised net profit of ₹633.53 crore. The company filed a corrigendum with BSE Limited on May 25, 2026, under Regulation 33, adjusting the total tax expense for Q4FY26 from ₹2,459.20 lakh to ₹2,092.48 lakh. The correction stems from a discrepancy between the tax amount for the full financial year and the cumulative amount reported for the nine months ended December 31, 2025. The audited financial results for the full year ended March 31, 2026, remain unchanged.

The revised financial statement indicates a Profit Before Tax (PBT) of ₹842.78 crore for the quarter ended March 31, 2026. Following the tax adjustment, the Profit for the period from continuing operations stands at ₹633.53 crore, compared to the previously reported figures. The basic and diluted earnings per share (EPS) for the quarter have been updated to ₹57.90. Total revenue from operations for Q4FY26 was reported at ₹4,131.99 crore.

For the financial year ended March 31, 2026, the company maintains its previously reported figures. Revenue from operations stood at ₹15,841.52 crore, and net profit for the year was ₹2,444.60 crore. The basic and diluted EPS for the full year remained at ₹223.41. The Board of Directors has recommended a final dividend of 150%, or ₹15 per equity share, for FY26, subject to shareholder approval.

Financial Performance

Kovai Medical Center and Hospital Limited's Board of Directors, at their meeting held on 11th May, 2026, approved the transfer of its Allied Health Sciences (AHS) Courses division on a slump sale basis to Dr NGP Research and Educational Trust, a public charitable trust engaged in running educational institutions including medical and allied health science courses. The board meeting commenced at 05:00 PM and concluded at 05:45 PM. The proposed transaction is subject to requisite consents, permissions, and approvals as may be required under applicable laws.

Transaction Overview

The slump sale involves the transfer of the company's permission for conducting AHS courses, along with identified assets, liabilities, students, employees, contracts, and related operational elements, on a going concern basis and on an as-is-where-is basis. The transaction is classified as a related party transaction and is being conducted on an arm's length basis, supported by an independent valuation report. The proposed sale is outside any Scheme of Arrangement and does not attract the threshold limits prescribed under Section 180(1)(a) of the Companies Act, 2013 read with Regulation 37A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key transaction details are summarised below:

AHS Division Financial Contribution

The AHS Courses division forms part of Kovai Medical Center and Hospital's Education Services segment. The company operates in two segments — Healthcare Services and Education Services. The financial contribution of the AHS division for the financial year ended 31.03.2025 (last audited) is presented below:

For context, the company's total net worth for FY 31.03.2025 (last audited) stood at Rs. 1,08,532.05 lakhs, and total turnover for the same period was Rs. 1,37,111.30 lakhs.

Buyer Profile and Promoter Interest

Dr NGP Research and Educational Trust is a public charitable trust established in the year 1990, presently running educational institutions in the fields of Health Sciences, Arts & Science, Engineering & Technology, Teacher Education, and a CBSE-affiliated school. The Trust's net worth for FY 31.03.2025 (last audited) is Rs. 29,031.57 lakhs, and its total income for the same period is Rs. 18,408.24 lakhs.

The following Promoter/Promoter Group directors of Kovai Medical Center and Hospital are interested as trustees of Dr NGP Research and Educational Trust:

• Dr. Nalla G Palaniswami (DIN: 00013536) — Managing Director
• Dr. Thavamani Devi Palaniswami (DIN: 00012135) — Joint Managing Director
• Dr. Arun N Palaniswami (DIN: 02706099) — Executive Director
• Dr. Purani P Palaniswami (DIN: 02707233) — Director
• Dr. Mohan S Gounder (DIN: 02479218) — Director

Rationale for the Divestiture

The proposed transaction is driven by enhanced regulatory requirements introduced under the National Commission for Allied and Healthcare Professions Act, 2021, which mandates additional investment in infrastructure and resources for conducting AHS courses. In line with its strategic focus on core medical education programmes and medical care activities with higher resource efficiency and returns, Kovai Medical Center and Hospital has decided to transfer the AHS Courses division to Dr NGP Research and Educational Trust. The Trust, being an established public charitable institution with experience in running educational institutions including medical and health sciences education, is considered well-positioned to continue such courses. The company has stated that the proposed transaction is in the best interests of the company and the students pursuing AHS courses, and there will be no change in the shareholding pattern of the company as a result of this transaction.