Summary
Krishna Institute of Medical Sciences Limited - Q3 FY26 Earnings Call Summary Monday, February 09, 2026, 09:30 AM IST
Event Participants
Executives 5 Dr. Abhinay Bollineni (CEO), Dr. Bhaskar Rao Bollineni (Founder & MD), Dr. Nitish Shetty (CEO, Bangalore Cluster), Mr. Sachin Salvi (CFO), Mr. Sreenath Reddy (Director, Strategy & M&A)
Analysts 8 Alankar Garude (Kotak), Ameya (JM Financial), Anshul Agrawal (Emkay Global), Chirag Gupta (Allegro Capital), Damayanti (HSBC), Karan Vora (Goldman Sachs), Kunal Randeria (Axis Capital), Vedant Nilekar (ICICI Securities)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue | ₹1,003 crores | +29.2% YoY; Highest-ever quarterly revenue crossing the ₹1,000 Cr mark. |
| EBITDA | ₹204 crores | -0.4% YoY; Impacted by initial losses from newer units launched in the last 12 months. |
| EBITDA Margin | 20.4% | -550 bps YoY; Decline attributed to gestation costs of new hospitals in Thane and Bangalore. |
| PAT | ₹52 crores | -44% YoY; Sharp decline due to higher depreciation and interest costs from new expansions. |
| ARPOB | ₹76,000 - ₹84,000 | +20.5% YoY; Driven by high-intensity transplant work and entry into higher-pricing markets (Thane/Bangalore). |
| IP Volumes | 61,139 | +13.2% YoY; Offset by a temporary dip in Andhra due to a state government strike. |
| Net Debt | ₹2,850 crores | Reflects peak debt for current expansion phase; includes funding for minority stake buyouts. |
| Cash & Equivalents | ₹206 crores | Total liquidity available as of Dec 31, 2025. |
Geographic & Segment Commentary
- Telangana Cluster: Revenue grew 20% YoY, though occupancy appears lower (52.5%) due to 250 beds under renovation at Secunderabad. Maturity in this market is balanced by the upcoming Kondapur expansion, shifting from 250 to 850 beds.
- Andhra Pradesh Cluster: Performance was impacted by a one-month strike regarding the Aarogyasri scheme; however, volumes bounced back in January. Strategic focus is shifting toward high-value oncology and transplant services in Vizag and Ongole.
- Maharashtra Cluster: Nashik achieved EBITDA breakeven in January 2026 (Month 13) after reaching ₹8.5 crores monthly revenue. Thane is performing ahead of schedule with 100+ cardiac procedures done within 5 months and is expected to breakeven by Q1 FY27.
- Karnataka (Bangalore) Cluster: Strong initial traction with 25 transplants performed in the first 3 months at Mahadevapura. ARPOBs are significantly higher than the group average, though expected to normalize around ₹70,000-₹75,000 as volumes scale.
Company-Specific & Strategic Commentary
- Network Expansion: Launched 7 hospitals in 2025 (Bangalore, Guntur, Kerala, and Maharashtra), taking the total count to 25 hospitals across 5 states.
- Chennai Entry: Signed a 26-year agreement with Andrea Saba for land to operate a new hospital; construction is expected to take 2 years.
- Clinical Excellence: Achieved 100 heart/lung, 430 renal, and 120 liver transplants in 2025; launched India’s first Tulsa Pro for prostate cancer.
- Asset Philosophy: Management reaffirmed a preference for owning land and buildings (Asset-Heavy) to avoid high rental costs in markets like Mumbai.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Breakeven (Thane/Bangalore) | Q1 FY27 | Management expects these units to turn EBITDA positive for the quarter by June 2026. |
| Revenue Growth | Double top-line in 3 years | MD stated the company is tracking “better than promised” on its multi-year growth trajectory. |
| Debt Trajectory | Moderating from Q4 FY26 | Current debt has “peaked out” as major capex for the 3-year plan is now complete. |
| Capex | ₹500 - ₹600 crores (FY27) | Targeted toward completion of existing projects like Kondapur and Chennai commencement. |
Risks & Constraints
| Risk | Context |
|---|---|
| Margin Dilution | The rapid addition of 7 units has compressed margins from ~26% to ~20%; recovery depends on the speed of doctor onboarding and insurance empanelment. |
| Receivables Risk | Approximately ₹600 crores is tied up in government receivables (Aarogyasri/ECHS), contributing to higher working capital debt. |
| Empanelment Delays | Top 5 insurance empanelments in new markets (Thane/Kollam) are still in progress, temporarily limiting patient volumes. |
Q&A Highlights
Breakeven Timelines
- Question: What is the trajectory for EBITDA losses in the new Bangalore and Thane units? (Ameya)
- Answer: Thane and Mahadevapura should be EBITDA neutral/positive by end of Q1 FY27. Electronic City was commissioned in December and may take until Q3 FY27. (Abhinay Bollineni)
Telangana Occupancy
- Question: Why is Telangana’s occupancy only at 52% despite being a mature market? (Rahul Jeewani)
- Answer: We have ~250 beds under renovation in Secunderabad which remain in the census count but are unavailable. Active beds are running at 80-85% occupancy. (Abhinay Bollineni)
Strategic Rationale for Chennai
- Question: What drove the decision to enter the competitive Chennai market? (Alankar Garude)
- Answer: Chennai is the “missing link” in South India. There is a large Telugu-speaking population, and the KIMS brand already has strong goodwill among doctors and patients who currently travel to AP for care. (Abhinay Bollineni)
Debt and Capex
- Question: Have debt levels peaked for the current expansion? (Rahul Jeewani)
- Answer: Yes, for the current plan, debt has peaked. We expect debt to start coming down quarter-on-quarter as new units scale and ₹600 crores in government receivables are collected. (Bhaskar Rao Bollineni)
Key Takeaway
KIMS delivered a landmark quarter, crossing ₹1,000 crores in revenue for the first time, representing 29.2% YoY growth. While aggressive expansion into Maharashtra and Karnataka has temporarily compressed EBITDA margins to 20.4% and impacted PAT, the operational metrics remain robust with ARPOB increasing 20.5% YoY. Strategic focus is now shifting from aggressive capex to operationalizing 2025’s heavy hospital launches, with Nashik already hitting breakeven in January 2026 and Thane/Bangalore expected to follow by Q1 FY27. Management has signalled that debt has peaked at ₹2,850 crores and is expected to moderate as internal accruals and government receivable collections improve. KIMS remains on track to double its top-line within three years, supported by a significant bed capacity increase in the high-demand Kondapur (Telangana) market and the newly announced entry into Chennai.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: