Krishna Institute of Medical Sciences (KIMS) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached INR 9,649 million, up 23.3% year-over-year and 9.8% quarter-on-quarter.

• EBITDA for Q2 was INR 2,082 million, down 6.7% year-over-year but up 4.3% sequentially; margin at 21.6%.

• PAT declined to INR 720 million, a 40.3% drop year-over-year and 15.3% sequentially, mainly due to ramp-up costs from new hospitals not yet at break-even.

• Operational expansion continued with new bed additions and ramp-up in multiple regions, with strong growth in both inpatient and outpatient volumes.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 ended 30 September 2025, along with the merger of two wholly-owned subsidiaries.

Financial highlights

• Consolidated revenue from operations for Q2 FY26 was INR 9,607 million, up 23.6% year-over-year and 10.2% quarter-on-quarter.

• EBITDA margin dropped to 21.6% from 28.5% in Q2 FY25.

• EPS for Q2 FY26 was INR 1.67, down 37.7% year-over-year and 14.7% quarter-on-quarter.

• Consolidated net profit for Q2 FY26 was INR 720 million, compared to INR 1,207 million in Q2 FY25.

• Cash and equivalents stood at INR 120 crore as of September 30, 2025.

Outlook and guidance

• Management expects margin expansion from Q1 next year as new hospitals reach EBITDA break-even.

• ARPOB is expected to rise from INR 42,000-43,000 to INR 50,000 over the next eight quarters as new markets scale.

• Andhra Pradesh cluster is expected to sustain 25%-28% EBITDA margins.

• Expansion plans include adding over 2,100 beds through greenfield projects and O&M opportunities, with new facilities in Bangalore, Ongole, Anantapur, Kondapur, and Rajahmundry scheduled to commence operations between Q3 FY26 and Q4 FY27.

• Several units are expected to break even in the next two months, with ongoing consultant onboarding and specialty ramp-up.