Krishna Institute of Medical Sciences (KIMS) Hospitals reported a stable performance for Q4 FY26, with total revenue reaching INR 1,084 crore, representing a 35.3% year-on-year growth. Despite pressure on margins due to significant capacity expansion and new hospital commissions, the company maintains a positive long-term outlook, bolstered by strong performance in mature units and a strategic shift toward debt reduction through a planned INR 1,500 crore QIP.
Financial Highlights for Q4 and FY26
For the fourth quarter ending March 2026, KIMS Hospitals posted a total revenue of INR 1,084 crore, reflecting a 35.3% increase year-on-year. The EBITDA for the quarter stood at INR 216 crore, a 6.8% rise from the previous year. For the full Financial Year 2026, the company achieved a total revenue of INR 3,931 crore, marking a 28.2% growth. The PAT for FY26 was reported at INR 242 crore.
Operational Expansion and New Units
The fiscal year 2026 was marked by an aggressive expansion phase. The company successfully commissioned new units in Hyderabad (Kompally), Maharashtra (Thane and Sangli), Bangalore (Mahadevapura and Electronic City), and Kerala (Kollam). While these new facilities have temporarily strained profit margins due to initial operational costs and a negative EBITDA impact of INR 128 crore for the year, management emphasized that these units are showing a clear path to profitability.
Strategic Debt Management
To optimize its capital structure, KIMS Hospitals has announced plans for a QIP worth INR 1,500 crore. Management aims to utilize this capital to retire a significant portion of its current debt, which has peaked at over INR 3,000 crore. The goal is to bring the net debt-to-EBITDA ratio down to a target range of 1:2, providing greater flexibility to fund future greenfield projects.
Operational Outlook and Insurance Empanelment
The company addressed challenges regarding insurance empanelment delays, which were attributed to sectoral confusion following the introduction of the GIC council. Management confirmed that these hurdles are being actively resolved for the new units in Thane, Bangalore, and Nashik. With the mature units continuing to generate robust EBITDA margins of approximately 29.5%, the company remains confident that as new facilities ramp up and insurance processes streamline, the overall growth trajectory will remain strong in the coming years.
Source: BSE
