Krishna Institute of Medical Sciences (KIMS) Q2 24/25 earnings summary

Executive summary

• Gross revenue reached INR 782 crore in Q2 FY25, up 19.4% year-over-year and 12.9% quarter-on-quarter, with EBITDA at INR 223 crore, growing 23.8% year-over-year and 21.2% quarter-on-quarter; PAT reached INR 121 crore, and EPS rose 16.7% YoY and 24.0% QoQ.

• EBITDA margin improved to 28.5% from 27.5% in Q2 FY24 and 26.6% in Q1 FY25; excluding other income, margin was 28.1%.

• Expansion into Kerala, Maharashtra, and other cities, with new hospitals in Kannur, Thrissur, Nashik, Guntur, and acquisition of KIMS NRI Hospital in Vizag.

• Asset-light and O&M models are being used for expansion, minimizing CapEx and maintaining a net debt to EBITDA ratio around 2.

• Strategic focus on Tier 2 and Tier 3 cities, leveraging local talent and partnerships with doctors for ownership and operational efficiency.

Financial highlights

• Operating revenue for Q2 FY25 was INR 7,773 million, up 19.1% YoY and 12.9% QoQ; ARPOB grew by 22.9% YoY to INR 38,263, with a marginal 0.5% sequential decline.

• Inpatient volume rose 9.1% YoY and 12.2% QoQ; outpatient volume increased 12.2% and 12.5%, respectively.

• EBITDA margin improved to 28.7% on operating revenue; PAT margin stood at 15.4% for Q2 FY25.

• Sunshine Hospital achieved 30% EBITDA margin post-move to new facility; Nagpur maintained 25-30% margin, with one-time renovation costs impacting the quarter.

• Guidance for full-year EBITDA margin remains at 27-28%.

Outlook and guidance

• Kerala cluster targets 3,000 beds over 5-6 years, with 750 beds already planned and potential for 500 more in the next year.

• Asset-light expansion in Kerala and Karnataka to continue, with minimal CapEx and focus on O&M contracts.

• CapEx for FY25 expected to be INR 500-600 crore, with most major spending on Bangalore and Thane projects completed by year-end.

• New hospitals expected to have an initial EBITDA drag of INR 30-40 crore, assuming 25-30% occupancy in the first year.

• Expansion plans include new hospitals in Bangalore, Mumbai (Thane), Srikakulam, Ongole, Anantapur, and Kondapur, with significant capex and incremental bed additions expected by FY25–FY27.