KIMS - Krishna Institute of Medical Sciences Limited Share Price

The management of KIMS Hospitals provided an outlook for the upcoming financial years, noting a challenging macroeconomic environment influenced by global conflicts. However, they expressed optimism about the company's growth trajectory, highlighting a stable performance in the recent quarter.

For Q4 FY '26, total revenue reached INR 1,084 crore, reflecting a year-on-year growth of 35.3% and a quarter-on-quarter growth of 8.1%. The EBITDA for the quarter was INR 216 crore, a growth of 6.8% year-on-year and 5.9% quarter-on-quarter, resulting in an EBITDA margin of 19.9%. The profit after tax (PAT) decreased to INR 33 crore from INR 106 crore in Q4 FY '25 and INR 52 crore in Q3 FY '26.

On an annual basis for FY '26, KIMS Hospitals reported total revenue of INR 3,931 crore (up 28.2% year-on-year), with an EBITDA of INR 828 crore (growth of 1.6%). However, PAT fell to INR 242 crore from INR 415 crore in FY '25. The company completed over 10,000 successful brain tumor surgeries and opened several new facilities, contributing to overall top-line growth.

Management emphasized that expansions strain profits initially but are expected to yield positive results as new units mature. They anticipate EBITDA margins will stabilize in the coming year. The company is also planning a QIP of INR 1,500 crore to reduce debt and fund future expansions. Key operational highlights included a significant expansion in patient volumes, with inpatient volumes growing by 17.9% year-on-year.

In terms of forward-looking points, management aims for continued growth through new hospitals and indicated that they are exploring acquisition opportunities, particularly in the Karnataka and Kerala markets. Despite the economic challenges, they reaffirmed the commitment to achieving sustainable growth in top-line and profitability metrics in the next few years.

Here are the major questions asked during the Q&A session of the earnings transcript along with detailed responses:

1. Question: "Is there any changes in plans for bed addition in Andhra Pradesh and Telangana, particularly with the lack of numbers?" Answer: "The change is simply due to our planning for a Qualified Institutional Placement (QIP) soon. We're streamlining our communication to align with regulations. Our earlier plan to add beds remains intact, and we will update the presentation next quarter."

2. Question: "In 2026, many new assets were opened. What is their contribution to revenue and EBITDA?" Answer: "For Q4, our mature units generated about INR 862 crore in revenue, whereas new units contributed INR 224 crore. The mature units maintained an EBITDA of about 30%, while newer ones had an EBITDA erosion of INR 32 crore."

3. Question: "When can we expect the newer units to return to previous EBITDA numbers?" Answer: "We should evaluate performance on a cluster basis. As we add capacity and achieve growth, EBITDA will improve, but initial expansions cause temporary pressure. Our guidance emphasizes quarter-on-quarter growth."

4. Question: "Can you provide details on losses from new units like Nashik, Thane, and Karnataka?" Answer: "Nashik reported a INR 1 crore loss, Thane INR 5 crore, and Karnataka is experiencing initial losses with PES around INR 6-7 crore. As the ramp-up continues, we expect these numbers to improve by year-end."

5. Question: "What progress has been made in insurance empanelments for new hospitals?" Answer: "We underestimated the time required for insurance empanelments. Although we have had delays, we expect quick ramp-up as negotiations with insurers are progressing."

6. Question: "Why is the planned INR 1,500 crore QIP necessary if debt was previously stated to have peaked?" Answer: "While debt has peaked at over INR 3,000 crore, we aim to reduce it significantly with this QIP, allowing us to focus on cash flow adequacy for future greenfield expansions."

7. Question: "What are the expected EBITDA margins for the Kondapur expansion?" Answer: "The new 800-bed hospital at Kondapur will have occupancy reaching 400-500 beds in Phase 1 within a month. Initial CAPEX is nearly complete, with some remaining around INR 50-75 crore for future expansions."

8. Question: "What are the overall growth expectations for the Telangana cluster?" Answer: "We're expecting a healthy 10-12% EBITDA growth in the Telangana cluster this fiscal year, supported by recent expansions and improvements in operational efficiency."

This condensed summary captures the essence of the key questions and their respective detailed answers within the 500-character limit.