Krishna Institute of Medical Sciences (KIMS Hospitals), a leading healthcare provider in South India, has reported a robust 23.3% year-on-year growth in total revenue for the second quarter of fiscal year 2026. The company's financial results, released on November 7, 2025, showcase its continued expansion and operational performance across multiple states.

Financial Highlights

• Total revenue reached INR 9,649.00 million in Q2 FY26, up 23.3% year-on-year and 9.8% quarter-on-quarter.
• EBITDA stood at INR 2,082.00 million, with a margin of 21.6%.
• Profit After Tax (PAT) was INR 720.00 million for the quarter.

Operational Performance

KIMS Hospitals demonstrated strong operational metrics:

• Inpatient (IP) volume increased by 15.3% year-on-year to 64,288.
• Outpatient (OP) volume grew by 25.1% to 592,725.
• Average Revenue Per Operating Bed (ARPOB) improved by 9.8% to INR 42,016.00.

Expansion and Growth Initiatives

Dr. Abhinay Bollineni, CEO of KIMS Hospitals, commented on the quarter's performance: "Q2 FY26 has been a busy quarter for us. We have seen patient footfalls steadily increasing at all our centers. I am particularly pleased that our newly opened unit at Thane has seen very good traction and completed 1000 surgeries in less than 6 months of operations. Our Bangalore unit at Mahadevpura also went live this quarter."

The company's expansion strategy includes:

1. Increasing bed capacity from 5,179 in FY25 to 6,114 in Q2 FY26.
2. Launching new hospitals in Hyderabad, Bengaluru, and Kerala.
3. Targeting 18-20% annual growth through specialty diversification and digital health initiatives.

Regional Performance

The negative EBITDA margins in Maharashtra and Karnataka are likely due to the ramp-up phase of new hospitals in these regions.

Strategic Developments

KIMS Hospitals is focusing on:

1. Operational efficiency and clinical excellence to achieve sustainable margin growth.
2. Strengthening its position in tertiary and quaternary healthcare services.
3. Expanding its network to 25 hospitals with over 8,000 beds across five states.

Outlook

Dr. B. Bhaskar Rao, CMD of KIMS Hospitals, expressed optimism about the company's future: "I am optimistic that the remaining half of FY26 will help us achieve our targets set."

As KIMS Hospitals continues its expansion across South India, the company remains committed to providing affordable, high-quality healthcare services while driving growth through strategic initiatives and operational improvements.

Krishna Institute of Medical Sciences Limited (KIMS), a leading healthcare provider, has released its unaudited financial results for the quarter and half-year ended September 30, 2025, showing a mixed performance with revenue growth but a decline in profitability.

Financial Highlights

Quarterly Performance

Half-Year Performance

Consolidated Results

Corporate Developments

The Board of Directors has approved the merger of two wholly-owned subsidiaries - KIMS Hospitals Private Limited and Chalasani Hospitals Private Limited - with Krishna Institute of Medical Sciences Limited. This strategic move is expected to streamline operations and potentially create synergies within the organization.

Performance Analysis

While KIMS has shown strong revenue growth both on a standalone and consolidated basis, the decline in net profit suggests potential challenges in managing costs or maintaining operational efficiency during this growth phase. The company's ability to balance expansion with profitability will be crucial for long-term success.

Investor Considerations

Investors and analysts may want to focus on the following aspects:

1. Revenue Growth: The increase in revenue indicates a positive trend in the company's market position and growth strategy.
2. Profit Margins: The decline in net profit despite revenue growth warrants attention and may require further explanation from management regarding cost structures and efficiency measures.
3. Merger Impact: The approved merger of wholly-owned subsidiaries could potentially lead to operational synergies and cost optimizations in the future.

As KIMS continues to navigate the dynamic healthcare sector, stakeholders will be watching closely to see how the company addresses the challenge of improving profitability while maintaining its growth momentum.

The detailed financial results are available on the company's website and the stock exchanges where KIMS shares are listed.