Kovai Medical Center and Hospital Limited submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange on July 27, 2026. The filing, made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, outlines the company’s environmental, social, and governance performance. Healthcare facilities generated 92.72% of the entity’s turnover, with medical education facilities contributing the remaining 7.28%. The report provides a comprehensive view of the hospital’s operational footprint, workforce composition, and sustainability initiatives across its locations in Coimbatore, Erode, and Kovilpalayam.

The company’s paid-up share capital stands at ₹ 10,94,22,620. For the reporting period, CSR applicability was confirmed under Section 135 of the Companies Act, 2013, with a disclosed turnover of ₹ 1,58,563.68 lakh and net worth of ₹ 1,31,926.52 lakh. The Board of Directors assesses business responsibility performance annually, though no specific committee is dedicated solely to sustainability decision-making. Policies covering all nine National Guidelines on Responsible Business Conduct (NGRBC) principles have been approved by the Board and extended to value chain partners.

Workforce Composition and Welfare

As of March 31, 2026, the entity employed 5,527 permanent employees and 1,358 permanent workers. Women constitute a significant majority of the permanent employee base, accounting for 4,443 individuals or 80.39% of the total. Among permanent workers, males comprised 51.47% (699 individuals), while females accounted for 48.53% (659 individuals). The turnover rate for permanent employees in FY2025-26 was 3.39%, up from 2.21% in the previous year.

The company reported spending 0.28% of total revenue on employee and worker well-being measures in FY2025-26, compared to 0.27% in FY2024-25. All permanent employees and workers received training on skill upgradation and health and safety measures, achieving 100% coverage. Additionally, 100% of eligible staff underwent performance and career development reviews.

Environmental Metrics and Resource Usage

Total energy consumption rose to 73,599.97 units in FY2025-26 from 70,040.86 units in the prior year. Renewable sources accounted for 71,756.37 units, while non-renewable sources contributed 1,843.60 units. Water withdrawal increased significantly to 676,586 kiloliters from 597,522 kiloliters, primarily driven by third-party water usage from the TWAD Board. The company implemented a Zero Liquid Discharge policy, reusing treated wastewater for landscaping, HVAC applications, and flushing.

Greenhouse gas emissions showed a decline in Scope 1 emissions, which fell to 30.40 metric tonnes of CO2 equivalent from 39.30 metric tonnes. Scope 2 emissions decreased to 52.60 metric tonnes from 58.62 metric tonnes. Total waste generated increased to 864.80 metric tonnes, largely due to biomedical waste rising to 748 metric tonnes from 674.2 metric tonnes.

Governance and Stakeholder Engagement

The company reported no complaints regarding sexual harassment, discrimination, child labor, or forced labor. Two shareholder complaints were filed during the year, both of which were resolved with none pending at year-end. A penalty of ₹ 25,000 was paid by the Managing Director to the Registrar of Companies, Coimbatore, for a violation under Section 301(1) of the Companies Act, 1956, relating to the period 2013-14. No appeals were preferred against this action.

Related party transactions constituted 9,769.70% of purchases and 28.26% of sales in FY2025-26. The company maintains an anti-corruption policy aligned with its Code of Conduct and Ethics. No disciplinary actions for bribery or corruption were taken against directors, key managerial personnel, employees, or workers. The entity also confirmed accessibility of its premises for differently-abled employees and visitors in compliance with the Rights of Persons with Disabilities Act, 2016.

kovai medical center hospital reported a 17% year-on-year increase in net profit after tax (PAT) to ₹2,444.60 crore for the financial year ended March 31, 2026, driven by robust growth in patient volumes and higher average revenue per occupied bed. Operating income rose 15.65% to ₹1,58,563.68 lakh from ₹1,37,111.30 lakh in the previous year, while earnings before interest, tax, depreciation, and amortization (EBITDA) grew to ₹4,671.02 crore. The Board of Directors has recommended a final dividend of ₹15 per equity share, representing a 150% payout on the face value, subject to approval by shareholders at the 40th Annual General Meeting scheduled for August 26, 2026.

The company’s financial performance reflects sustained expansion across its healthcare and education segments. Inpatient revenues increased by 15.02% to ₹10,582.49 crore, supported by a rise in bed occupancy rates from 60.44% to 63.41%. Outpatient revenues grew by 14.94% to ₹4,105.12 crore. The education segment, operated through the KMCH Institute of Health Sciences and Research, contributed ₹1,153.91 crore, marking a 24.68% increase over the prior year. These gains were partially offset by higher employee benefit expenses, which rose to ₹3,064.85 crore, and increased costs for medicines and hospital consumables, which reached ₹4,480.79 crore.

Financial Highlights

Operational and Strategic Developments

During FY26, the hospital expanded its infrastructure with a capital expenditure of ₹1,184.51 crore on advanced medical technology. Key additions included Tamil Nadu’s first Varian ETHOS AI-powered Adaptive Radiation Therapy system and the Symbia Pro.Specta SPECT/CT scanner. The institution also inaugurated a new Institute of Neuro Sciences & OPD Block, representing a ₹120 crore investment. Clinically, the orthopedic team performed its 1,000th robotic-assisted knee replacement, and the critical care unit recorded 75 ECMO runs, the highest in the state. The Board approved the construction of a 300-bed Paediatric Hospital at the main center, with work expected to commence in the second quarter of 2026.

What the Numbers Show

The divergence between revenue growth and expense inflation highlights a margin compression risk despite top-line expansion. While operating income grew by 15.65%, employee benefit expenses surged by 22.02% to ₹3,064.85 crore, and consultant charges rose by 15.54% to ₹2,211.11 crore. This suggests that labor costs are outpacing revenue generation, potentially pressuring future profitability if occupancy rates do not continue to accelerate. Additionally, the net debt-to-equity ratio improved significantly to 4.39% from 13.27% in the previous year, indicating strengthened balance sheet resilience through internal cash flow generation rather than external leverage.

Corporate Governance and AGM Details

The 40th Annual General Meeting will be held via Video Conference/Other Audio Visual Means on August 26, 2026. Key agenda items include the adoption of audited financial statements for FY26, the declaration of dividends, and the reappointment of Dr. M.C. Thirumoorthi as a director liable to retire by rotation. The register of members will remain closed from August 20 to August 26, 2026. The record date for dividend entitlement is August 19, 2026. Statutory auditor M/s VKS Aiyer & Co issued an unmodified opinion on the financial statements, though they noted negative observations regarding non-registration of certain lease agreements and immovable property titles, which are currently sub judice or pending resolution.