Krishna Institute of Medical Sciences Ltd. (KIMS), a prominent healthcare provider, has unveiled ambitious growth plans for the coming years. Dr. Bhaskar Rao, the Chairman and Managing Director of KIMS, has outlined the company's strategy to achieve substantial revenue growth and improve key performance metrics.

Growth Targets and Expansion Plans

KIMS is setting its sights on an impressive 25-30% year-on-year revenue growth over the next three to four years. This aggressive target underscores the company's confidence in its business model and the growing demand for quality healthcare services.

A key component of this growth strategy is the planned increase in Average Revenue Per Occupied Bed (ARPOB). The company aims to boost its ARPOB from the current Rs 43,000.00 to Rs 55,000.00, representing a significant improvement in operational efficiency and service value.

To support these growth objectives, KIMS is expanding its bed capacity. The company is in the process of opening 900 new beds this year, with facilities planned in Bangalore and Thane. Management expects these new additions to contribute to higher ARPOBs within two quarters of becoming operational.

Financial Position and Debt Management

KIMS' current financial position shows a manageable debt level of approximately Rs 600.00-700.00 crore. The company's debt-to-EBITDA ratio stands at less than 1:1, indicating a healthy balance between debt and earnings.

However, when including subsidiaries, the blended debt-to-EBITDA ratio rises to around 2.5. The management has expressed its intention to optimize this ratio, aiming to reduce it to a range of 1.5-2, with a preference for bringing it below 1.5. This debt reduction strategy aligns with the company's overall goal of improving financial stability while pursuing aggressive growth.

Market Performance

Despite the positive outlook shared by the management, KIMS' stock performance on the day of the announcement was slightly negative. The company's shares closed 0.96% lower at Rs 739.00 on the National Stock Exchange (NSE).

Conclusion

KIMS' ambitious growth targets, coupled with its expansion plans and focus on improving key metrics like ARPOB, paint a picture of a company poised for significant development in the coming years. The healthcare provider's strategy to balance growth with prudent debt management will be crucial as it navigates the competitive healthcare landscape in India.

Krishna Institute of Medical Sciences (KIMS Hospitals), a leading healthcare provider in India, has reported robust growth in its first quarter of fiscal year 2026, while simultaneously pursuing ambitious expansion plans across multiple cities.

Financial Performance

KIMS Hospitals demonstrated strong financial performance in Q1 FY26:

• Total revenue reached ₹879.00 crore, marking a significant year-on-year growth of 26.80% and a quarter-on-quarter increase of 9.60%.
• EBITDA stood at ₹200.00 crore, showing an 8.50% year-on-year growth.
• The company's EBITDA margin was 22.70% for Q1 FY26.
• Profit After Tax (PAT) was reported at ₹85.00 crore.

Operational Highlights

The company also showed impressive operational metrics:

• Inpatient (IP) volume increased by 15.30% year-on-year to 57,275.
• Outpatient (OP) volume grew by 19.30% year-on-year to 5,02,492.
• Average Revenue Per Operating Bed (ARPOB) rose by 11.80% year-on-year to ₹43,011.
• Average Revenue Per Patient (ARPP) increased by 9.80% year-on-year to ₹1,53,094.

Expansion Initiatives

KIMS Hospitals is actively pursuing growth through several expansion projects:

Bengaluru

• Two new projects are underway, with 450 beds and 350 beds respectively, offering comprehensive specialties.
• These projects are expected to be operational by Q2 FY26.

Ongole

• Adding 50 beds and a Cancer Centre to the existing 350-bed facility.
• Expected investment of ₹40.00-50.00 crore.

Anantapur

• Expanding the current 250-bed hospital with an additional 250 beds.
• Introducing a Cancer Centre and Mother & Child care facilities.
• Project estimated at ₹90.00-110.00 crore, slated for completion by Q4 FY26.

Kondapur

• Significant expansion of 500 beds to the existing 200-bed facility.
• Projected investment of ₹300.00-350.00 crore.
• Expected completion by Q1 FY27.

Rajahmundry

• Establishing a new 350-bed multispecialty hospital.
• Investment of ₹300.00-350.00 crore.
• Set to be operational by Q4 FY27.

New Facility in Thane

KIMS Hospitals has recently opened a new 300+ bedded multispecialty hospital in Thane, Maharashtra. The facility boasts state-of-the-art medical technology, including:

• 10 operating theaters
• 70+ ICU beds
• 2 Cath Labs
• Advanced imaging equipment

Dr. B Bhaskar Rao, CMD of KIMS Hospitals, commented on the Q1 performance: "First quarter of FY 26 has started on a robust note with all engines performing optimally. Despite being a seasonally lean quarter, we have managed to grow on key parameters. Patient footfalls have seen a good uptick in all units especially in new ones like Thane. I am optimistic that we are on track to meet our targets for FY 26. Our 2 units of Bangalore will be commencing in Q2."

With its strong financial performance and aggressive expansion plans, KIMS Hospitals is positioning itself for continued growth in the Indian healthcare sector, focusing on providing affordable, quality care across multiple regions.