Krishna Institute of Medical Sciences reported a robust 23.3% year-on-year growth in revenue for Q2 FY26, reaching INR 965.00 crores. However, the company faced margin pressure due to the ramp-up of newly commissioned hospitals, resulting in a 6.7% decline in EBITDA to INR 208.00 crores and a significant drop in PAT to INR 72.00 crores from INR 121.00 crores in the previous year.

Financial Performance

The company's EBITDA margin contracted to 21.6% in Q2 FY26 from 28.5% in Q2 FY25, primarily due to losses from newly commissioned hospitals. The consolidated EPS for Q2 FY26 stood at INR 1.67, marking a 37.7% year-on-year decline.

Operational Highlights

• IP volume grew by 15.3% year-on-year to 64,288
• OP volume increased by 25.1% year-on-year to 5,92,725
• Average revenue per operating bed rose by 9.8% year-on-year
• Average revenue per patient improved by 7.3% year-on-year

New Hospital Ramp-up

Krishna Institute of Medical Sciences has recently commissioned several new hospitals, including facilities in Thane, Bangalore, and Nashik. The management expects these new facilities to achieve EBITDA breakeven within 12 months of commissioning. Notably:

• Thane hospital is nearing breakeven, with October revenue reaching INR 12.50-13.00 crores against a fixed cost of INR 12.00-12.50 crores per month
• Mahadevapura hospital in Bangalore is showing promising performance, having completed its first liver transplant within 45 days of opening

CGHS Price Hike Impact

The company anticipates a 20% price hike benefit from the Central Government Health Scheme (CGHS), which is expected to positively impact margins from Q4 FY26. This price increase is estimated to contribute an additional INR 10.00-12.00 crores to EBITDA in the next financial year.

Insurance Empanelment Progress

Krishna Institute of Medical Sciences is actively working on insurance empanelments for its new facilities:

• Nashik: 2 out of the top 5 insurance companies empanelled
• Thane: 1 out of the top 5 insurance companies empanelled
• The company aims to complete empanelment with the top 5 insurance companies across new hospitals by Q4 FY26

Future Outlook

Dr. Abhinay Bollineni, Executive Director and CEO, expressed confidence in the ramp-up trajectory of new hospitals and the positive impact of the CGHS price hike. The company maintains its focus on affordable healthcare across markets while expanding its bed capacity and specialty offerings.

Krishna Institute of Medical Sciences continues to invest in advanced medical technologies and is expanding its presence in key markets. The management remains optimistic about achieving sustainable growth and improving profitability as new hospitals stabilize and mature markets continue to perform well.

Krishna Institute of Medical Sciences Limited (KIMS Hospitals) has reported a robust 23.3% year-on-year growth in consolidated revenue for the second quarter of fiscal year 2026, reaching INR 9,649.00 million. However, the hospital chain faced margin pressure during the same period, with EBITDA declining by 6.7% year-on-year to INR 2,082.00 million.

Financial Highlights

• Revenue Growth: Consolidated revenue increased from INR 7,823.00 million in Q2FY25 to INR 9,649.00 million in Q2FY26, marking a 23.3% year-on-year growth.
• EBITDA Performance: EBITDA declined to INR 2,082.00 million from INR 2,231.00 million in the previous year, with margins compressing to 21.6% from 28.5%.
• Profit After Tax: PAT dropped to INR 720.00 million in Q2FY26 from INR 1,207.00 million in Q2FY25, a decrease of 40.3%.

Operational Performance

KIMS Hospitals demonstrated strong operational growth across key metrics:

• Inpatient Volume: Grew by 15.3% year-on-year to 64,288 in Q2FY26.
• Outpatient Volume: Increased by 25.1% year-on-year to 592,725 in Q2FY26.
• Average Revenue Per Occupied Bed (ARPOB): Rose by 9.8% year-on-year to INR 42,016.00.
• Average Revenue Per Patient (ARPP): Improved by 7.3% year-on-year to INR 150,624.00.

Expansion and Capacity

The hospital chain has significantly expanded its capacity:

• Total Bed Capacity: Increased to 6,114 beds as of Q2FY26, up from 4,610 beds in Q2FY25.
• Operational Beds: Grew to 4,695 in Q2FY26 from 3,813 in Q2FY25.

Regional Performance

KIMS Hospitals' performance varied across regions:

Expansion Plans

KIMS Hospitals has outlined expansion plans:

• Bangalore: A new 361-bed facility (Project-2) with an investment of INR 180-200 crore, expected to be operational by Q3 FY26.
• Ongole: Adding 50 beds and a Cancer Centre with an investment of INR 40-50 crore, planned for Q3 FY26.
• Anantapur: Expanding by 250 beds with a Cancer Centre and Mother & Child facility, investing INR 90-110 crore, targeted for Q4 FY26.
• Kondapur: A significant expansion of 550 beds with an investment of INR 300-350 crore, scheduled for Q1 FY27.
• Rajahmundry: A new 350-bed facility with an investment of INR 300-350 crore, planned for Q4 FY27.

Conclusion

KIMS Hospitals has demonstrated strong top-line growth and operational improvements in Q2FY26, driven by increased patient volumes and expansion of its hospital network. However, the company faces challenges in maintaining profitability margins amidst its expansion strategy. The planned additions in bed capacity and new facilities across various locations indicate KIMS Hospitals' commitment to long-term growth and its aim to strengthen its position in the Indian healthcare market.