KIMS

Expands Aggressively, Margins to Normalize

Krishna Institute of Medical Sciences (

) represents a structurally defensive play in healthcare, combining scalable operating models, strong clinical capabilities, and expansion-led visibility. The company is in the midst of an aggressive capacity build-out, which has temporarily weighed on margins but sets up significant operating leverage over the next 2–3 years. As new hospitals mature and occupancy improves, profitability is expected to normalize, making KIMS a compelling medium-term growth story. Financial Performance (Q3FY26) - Consolidated revenue: ₹998 crore (+29% YoY). - EBITDA margin: 20% vs. ~25% last year, reflecting expansion drag. - In-patient volumes: +13% YoY; Out-patient volumes: +25% YoY. - ARPOB: ₹46,341 (+20.5% YoY), supported by complex procedures and entry into high-income urban markets. - Occupancy: ~49–51%, expected to rise as new hospitals ramp up. Operating Leverage Potential - Nashik unit reached breakeven within 13 months, EBITDA-positive since Jan 2026. - Thane and Bengaluru (Mahadevapura) guided to turn EBITDA-positive by Q1FY27. - Bengaluru (Electronic City), commissioned Dec 2025, expected to breakeven by Q3FY27. - High-ARPOB markets (Mumbai, Bengaluru, Thane) to drive consolidated ARPOB higher. - Near-term margins: 20–22%, expected to normalize as occupancy and case mix improve. Expansion Pipeline - Current capacity: 6,464 beds (+33% YoY). - Planned additions: ~2,000 beds by FY29 (+32%). - Key projects: - Andhra Pradesh (Ongole, Anantapur, Rajahmundry): 650 beds. - Telangana (Kondapur II, Kompally O&M): 750 beds. - Kerala (Thrissur O&M): 350 beds. - Chennai super-specialty (asset-light): 300 beds. Valuation & Outlook - KIMS is leveraging high-value specialties, technology integration, and premium markets to sustain growth. - Structural demand tailwinds—low hospital bed penetration, rising incomes, and insurance growth—support long-term expansion.