KIMS Hospitals reported a record-breaking Q3 FY26 with total revenue crossing the INR1,003 crore mark, growing 2.2% YoY. However, consolidated EBITDA saw a marginal decline to INR204 crores, impacted by initial losses from newer units operationalized in the last 9 to 12 months. Management expressed confidence in new assets reaching EBITDA break-even by Q1 FY27 and shared strategic updates on expansion, including entering the Chennai market.
KIMS Hospitals Q3 FY26 Performance Overview
KIMS Hospitals announced its results for the third quarter of FY26, marking a record-breaking quarter with total revenue crossing the INR1,000 crores mark. Management noted that this performance was achieved despite typical Q3 pressures and the initial headwinds from newly commissioned units.
Key Financial Highlights (Standalone)
- Total revenue reached INR1,003 crores, showing growth of 2.2% YoY and 3.9% QoQ.
- EBITDA stood at INR204 crores, a marginal decline of 0.4% YoY and 2% QoQ.
- The decline in EBITDA was primarily attributed to erosion caused by newer units commencing operations over the last 9 to 12 months.
- EBITDA margin settled at 20.4%, compared to 25.9% in Q3 FY25 and 21.6% in Q2 FY26.
- PAT was INR52 crores in Q3 FY26 (against INR93 crores in Q3 FY25).
- Consolidated EPS was INR1.3 for the quarter.
Consolidated Financial Metrics
The consolidated results reflected stronger underlying growth:
- Consolidated revenue from operations was INR998 crores, a significant growth of 29.2% YoY.
- Consolidated EBITDA (Pre-INDAS, excluding other income) was INR188 crores, growing 4.6% YoY.
Operational Performance Drivers
Operational metrics demonstrated robust underlying demand:
- Average Revenue Per Operating Bed (ARPOB) grew by 20.5% YoY.
- Average Revenue Per Patient (ARPP) grew by 13.9% YoY.
- Inpatient Volume (IP) grew by 13.2% YoY, reaching 61,139 cases.
- Outpatient Volume (OP) increased by 24.5% YoY to 5,85,499 volumes.
Developments and Expansion Strategy
New Unit Stabilization
Management provided updates on the ramp-up trajectory for recently launched assets:
- Thane and Bangalore (Mahadevapura): Expected to achieve EBITDA break-even by Q1 FY27.
- Electronic City (Bangalore): Expected to reach EBITDA neutral or positive by Q3 FY27.
- Telangana Occupancy: While current reported occupancy is 52.5% due to renovations, the actual utilized occupancy on operational beds is near 80%-85%. The renovation of 200-250 beds in Secunderabad is expected to complete in the second half of FY27.
Geographic Expansion
The company confirmed its strategic entry into a new geography:
- KIMS has entered an agreement to construct and operate a hospital in Chennai for 26 years, marking the consolidation of the South India story.
- The company has 25 hospitals across 5 states and launched 7 new hospitals in 2025.
- Management remains focused on fully operationalizing current commissioned hospitals before finalizing new large-scale deals in markets like Mumbai, although exploration continues.
Debt Position
Regarding the balance sheet:
- Consolidated net debt as of December 31, 2025, stood at approximately INR2,850 crores.
- Management indicated that debt numbers have likely peaked out with current expansion plans, as much of the planned CAPEX is complete.
- The company anticipates cash inflows of nearly INR600 crores from creditors, suggesting debt should start moderating quarter-on-quarter moving forward.
Clinical Achievements
The call highlighted several significant clinical milestones achieved in 2025:
- Over 500 robotic surgeries performed, including 100+ robotic Whipple surgeries.
- Over 120 Liver transplants and over 430 renal transplants were completed across the group.
- KIMS Usha Lakshmi Breast unit achieved 2 Guinness World Records for the largest breast cancer awareness program.
- Successful launch of advanced treatments, including India’s first Tulsa Pro for prostate cancer and India’s second MRgFUS for tremor treatment.
Source: BSE
