Krishna Institute of Medical Sciences Ltd
(NSE:KIMS)
₹
805.5
+5.1 (+0.64%)
Market Cap: 321.95 Bil
Enterprise Value: 366.89 Bil
PE Ratio: 157.94
PB Ratio: 14.35
GF Score: 87/100 
Q1 2027 Krishna Institute of Medical Sciences Ltd Earnings Call Transcript
Aug 04, 2026 / 04:30AM GMT
Release Date Price:
₹795.9
(-3.01%)
Key Points
Positve
- Krishna Institute of Medical Sciences Ltd (BOM:543308) reported strong financial results with total revenue of INR 1,196 crore, a 36.1% year-on-year growth, and EBITDA of INR 240 crore, a 20.1% year-on-year growth.
- The company successfully raised INR 1,500 crore through a Qualified Institutional Placement (QIP), which was oversubscribed, and utilized INR 1,100 crore to reduce debt, strengthening its balance sheet.
- Promoters demonstrated strong commitment by making a preferential allotment of INR 600 crore, with 25% infused initially and the balance within 18 months.
- New hospital units are performing well, with Mahadevapura, Bangalore achieving break-even in less than seven months, and the new Kondapur facility showing a 40% growth in its first month, reaching INR 45 crore in revenue for July.
- The company is achieving clinical excellence, including the world's first surgical technique for thoracoabdominal aortic aneurysms and the first robotic implantation of a sutureless aortic valve in the Asia-Pacific region, enhancing its reputation.
- IP and OP volumes grew impressively by 26.6% and 28.5% year-on-year respectively, indicating strong demand across mature and new clusters.
- Management is confident of ramping up occupancy in the Telangana cluster to 70% over the next 3-4 years, despite new hospital additions, indicating significant growth potential.
- The company has made good progress on insurance empanelments for new units, with key empanelments expected to be completed by end of August or mid-September, which should drive further growth.
- Thane hospital showed a promising recovery with INR 21 crore revenue and 10% EBITDA margin in July, indicating a positive trajectory after a weak Q1.
- The company has a clear strategy to focus on stabilizing current hospitals before pursuing new greenfield opportunities in core geographies, ensuring sustainable growth.
Negative
- PAT declined significantly to INR 37 crore in Q1 FY27 from INR 85 crore in Q1 FY26, reflecting margin pressures and increased costs from new hospital ramp-ups.
- EBITDA margin slightly decreased to 20.1% from 20.27% year-on-year, indicating some operational cost pressures.
- The Kerala cluster is still in its growth phase with single-digit EBITDA margins, and it may take 2-3 years to stabilize at 20-22%, dragging overall profitability.
- The new Kondapur hospital incurred pre-operative costs of INR 1.5-2 crore per month, and the old facility remains operational, adding rental and operating costs as a drag for the next six months.
- Insurance empanelment delays, particularly in Maharashtra and Bangalore, have hindered ramp-up, with only 50% of insurance companies empaneled for new assets like Latur, Thane, Nashik, and Bangalore units.
- The Electronic City hospital in Bangalore is still a drag on earnings, with expectations of reaching break-even only towards the end of the year, impacting the Bangalore cluster's profitability.
- Average revenue per patient (ARPP) declined by 3.8% quarter-on-quarter, suggesting a seasonal or mix shift that could affect revenue quality.
- The company faces challenges in Maharashtra due to a different practice model (non-full-time) compared to South India, making it harder to align doctors and ramp up operations.
- Debt remains high at around INR 2,400 crore even after repayment, and interest cost reduction will only be visible from Q2 onwards, indicating continued financial burden.
- Management noted that ARPOB in Bangalore is inflated due to lower length of stay and may stabilize at lower levels (INR 80,000-85,000) once more empanelments occur, potentially reducing revenue per bed.
Operator
Ladies and gentlemen, good day and welcome to the KIMS Hospital Q1 FY27 earnings conference call hosted by IIFL Capital Services Limited. (Operator Instructions) Please note that this conference is being recorded.
I will now hand the conference over to Mr. Rahul Jivani from IIFL Capital Services Limited for opening remarks. Thank you, and over to you, Rahul.
Rahul Jivani;Bhaskara Bollineni
IIFL Capital Services Ltd - Analyst;Krishna Institute of Medical Sciences Ltd - Executive Chairman of the Board, Managing
Yeah, thanks Ryan. Hi, good morning everyone. This is Rahul from IIFL Capital. I welcome you all to the first quarter earnings conference call of KIMS Hospitals being hosted by IIFL.
From KIMS we have with us today Dr. Bhaskar Rao Bollineni, Founder and Managing Director; Dr. Abhinay Bollineni, Executive Director and CEO; Mr. Sachin Salvi, CFO; Dr. Nitish Shetty, CEO for KIMS Bangalore cluster; and Mr. Sreenath Reddy, Director of Business Strategy.
Over to you, sir, for your opening comments.
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