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

Executive summary

• Achieved record Q3 FY26 revenue, surpassing INR 1,000 crore for the first time, with 29.2% year-over-year growth to ₹9,977 million and strong expansion in Maharashtra, Kerala, and Karnataka.

• 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.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended 31 December 2025 were approved, with unmodified review reports from auditors.

• Board approved an increase in investment limit up to ₹100 crore for acquiring additional shares in Sarvejana Healthcare (Sunshine Hospital), a material subsidiary.

Financial highlights

• Q3 FY26 total revenue: ₹10,029 million, up 29.2% year-over-year and 3.9% quarter-over-quarter.

• EBITDA was INR 204 crore (₹2,041 million), down 0.4% year-over-year; EBITDA margin at 20.4% vs. 25.9% last year.

• PAT at INR 52 crore (₹519 million), down from INR 93 crore (₹925 million) in Q3 FY25; EPS at INR 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.

• Standalone Q3 FY26 revenue: ₹4,419 million, up from ₹3,475 million in Q3 FY25; standalone net profit: ₹725 million.

Outlook and guidance

• Focus on ramping up new hospitals and achieving break-even in recently launched units, with over 2,000 beds to be added through greenfield projects, acquisitions, and O&M opportunities.

• Debt levels expected to moderate as major CapEx cycle concludes; future expansions may use alternative funding.

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

• Double-digit growth in Telangana expected for the next 3-4 years due to new facilities; mature clusters may see slower growth thereafter.

• Recent acquisitions expected to achieve break-even within 12 months, with ongoing operational improvements.