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.

Krishna Institute of Medical Sciences (KIMS) has outlined an ambitious growth strategy centered on expanding its healthcare network and optimizing operations across multiple states in India. The company is making significant strides in establishing new facilities and enhancing its existing services to strengthen its market position.

Expansion Plans and New Facilities

KIMS plans to establish a new 700+ bed facility in Bengaluru, marking a significant expansion into Karnataka. This move is part of a broader strategy to increase the company's presence in tier-2 cities across Andhra Pradesh and Telangana. The expansion plan includes:

• A new 361-bed facility in Bengaluru (KIMS PES) scheduled to commence operations
• A 50-bed expansion in Ongole, focusing on a new Cancer Centre
• A 250-bed expansion in Anantapur, including a Cancer Centre and Mother & Child facilities
• A 550-bed expansion of the Kondapur facility
• A new 350-bed facility in Rajahmundry

These expansions are expected to significantly increase KIMS' bed capacity and service offerings across multiple regions.

Financial Performance and Growth Targets

KIMS is targeting double-digit revenue growth through various strategies:

• Increasing Average Revenue Per Occupied Bed (ARPOB)
• Optimizing its specialty mix
• Enhancing operational leverage
• Retaining and attracting top medical talent
• Pursuing strategic acquisitions to strengthen its market leadership position

The company's recent financial performance shows:

While the company has shown strong revenue growth, there has been a decrease in EBITDA and PAT, which may be attributed to expansion costs and investments in new facilities.

Operational Highlights

KIMS has demonstrated impressive operational metrics:

• Increased IP volume by 15.3% YoY to 64,288
• OP volume grew by 25.1% YoY to 592,725
• ARPOB (Average Revenue Per Occupied Bed) improved by 9.8% YoY to ₹42,016

Strategic Initiatives

The company is focusing on several key areas to drive growth:

1. Tertiary Care Expansion: Launching advanced specialties such as Paediatric Cardiac Surgery, ECMO, and Liver Transplant in various locations.

2. Technology Investments: Implementing state-of-the-art medical technologies like robotic surgery systems, advanced imaging equipment, and specialized treatment facilities.

3. Talent Acquisition: Onboarding senior specialists in high-revenue departments and expanding clinical teams across multiple specialties.

4. Geographic Expansion: Strengthening presence in existing markets and entering new regions through greenfield projects and strategic partnerships.

5. Service Diversification: Introducing new services such as transplant programs, cancer care centers, and mother & child specialties to cater to a wider range of healthcare needs.

KIMS' expansion strategy and focus on enhancing its service offerings position the company for potential growth. However, investors should note that the current investments in expansion may impact short-term profitability as new facilities ramp up operations.

As KIMS continues to execute its growth plans, it will be crucial to monitor how effectively the company manages its expansion while maintaining quality of care and financial performance across its growing network of hospitals.