Krishna Institute of Medical Sciences (KIMS) Q3 25/26 earnings summary

Executive summary

• Achieved record Q3 FY26 revenue, with 29.2% year-over-year growth to ₹9,977 million, despite Q3 being a seasonally weak quarter.

• EBITDA remained stable at ₹2,041 million with a 20.4% margin, but PAT declined 43.9% year-over-year to ₹519 million due to higher finance costs and depreciation.

• Bed capacity expanded to 6,464, with operational beds at 4,825 and occupancy at 49.0% in Q3 FY26.

• Expansion continued with new hospitals in Maharashtra, Kerala, Karnataka, and seven new launches in 2025, bringing the network to 25 hospitals across five states.

• Board approved up to ₹100 crore further investment in Sarvejana Healthcare (Sunshine Hospital), a key subsidiary showing strong turnover growth.

Financial highlights

• Q3 FY26 total revenue: ₹10,029 million, up 26.9% year-over-year and 3.9% sequentially.

• EBITDA at ₹2,041 million, margin at 20.4% (down from 25.9% last year); PAT at ₹519 million, down from ₹925 million in Q3 FY25.

• Basic and diluted EPS for Q3 FY26: ₹1.3, down 39.9% year-over-year.

• Cash and equivalents stood at INR 206 crore as of December 31, 2025; net debt at INR 2,850 crore.

• ARPOB rose 20.5% year-over-year to ₹46,341 in Q3 FY26.

Outlook and guidance

• Focus on ramping up new hospitals and achieving break-even in Thane and Mahadevapura by Q1 FY27, and Electronic City by Q3 FY27.

• Over 2,000 beds to be added through greenfield projects, acquisitions, and O&M opportunities.

• Debt levels expected to moderate as major CapEx is completed; CapEx for FY27 projected at INR 500-600 crore, with only maintenance CapEx planned for FY28.

• No material financial impact expected from new Indian labour codes effective November 2025; further evaluation as rules are notified.