KIMS Q2 FY26 earnings call.
A source-linked concall view: reported numbers, management language, guidance, commitments and risks that should carry forward.
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Revenue
₹961 Cr
verified against source
Revenue YoY
23.6%
reported change
EBITDA
₹208 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
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What the record says.
KIMS reported Q2 FY26 consolidated revenue from operations of INR 961 crore, up 23.6% YoY driven by volume growth of 15.3% in IP and 25.1% in OP. However, EBITDA declined 8.6% YoY to INR 208 crore with margins compressing 690bps to 21.6% due to losses from 4-5 newly commissioned hospitals yet to reach breakeven. PAT fell 40.3% to INR 72 crore. Management reaffirmed confidence in breaking even all new hospitals within 12 months of commissioning, with Thane expected to turn profitable in ~2 months and full CGHS rate increase benefit (~20% on affected business) flowing through from Q4. The company's strategy focuses on premium technology acquisitions and maintaining affordability positioning across new micro-markets. Key risks include insurance empanelment delays particularly in Nashik affecting doctor recruitment, and margin pressure persisting for 2-3 quarters until newer hospitals ramp up.
Colored figures show movement against the previous available record.
Guidance to track
- Thane hospital currently generating INR 12.5-13 crore monthly revenue on 130 operational beds; fixed costs of INR 12 crore monthly with break-even expected at ~INR 15 crore revenue, and October revenues already at INR 12.5-13 crore.
- Management reaffirmed commitment that all hospitals commissioned so far will become EBITDA neutral within first 12 months of start, except one Bangalore facility (PES) which may slip by one quarter due to delayed licensing.
- Andhra Pradesh cluster, including Srikakulum ramp-up, is expected to sustain EBITDA margins in the 25-28% range on the back of strong revenue growth in high teens-mid teens.
- CGHS rate increase of ~20% on affected business (10% of AP/Telangana/Nagpur cluster revenues) will have full impact from Q4, contributing estimated INR 1.5 crore monthly revenue growth with 60% EBITDA conversion (~90 lakhs monthly incremental EBITDA).
Risks flagged
- Nashik (commissioned January 2025) is still incurring losses primarily because the 172B license required for CGHS business (35-40% of local hospital market) has not been obtained. This is also preventing doctor onboarding as specialists are reluctant to join without corporate/payer access. Management expects license in 'next few months'.
- Thane currently has only one insurance empanelment; target is top-5 insurers by Q4. Nashik just completed 2 of 5 empanelments. This delays revenue ramp in insurance-heavy markets (Nashik, Thane, Bangalore) as cash patients alone represent only 30% of typical hospital revenues.
- The flagship Telangana hospital has ~300 beds currently non-functional due to ongoing rehabilitation. Coupled with occupancy in low-50s and mature cluster dynamics, management guides only high single-digit growth for this largest cluster until Kundapur commissioning in Q1 FY27.
- Analyst raised concerns about presence of Manipal, Narayana, Jupiter and other established players in Bangalore. Management acknowledges competition but emphasizes focus on currently underserved micro-markets where Mahadevara and Electronic City facilities are being positioned at affordable pricing. Actual market acceptance remains to be validated.
Key quotes
- We have commissioned almost four-five new hospitals which are yet to break even and because of which the revenue ramp up in those hospitals are happening but haven't reached a bit break even. So that is why there's a drag on the EBITDA.
- Most of these hospitals got commissioned in the last 10 months. And the first year typically goes in kind of reaching a break even point and then it'll take time for them to reach a double digit margin. So definitely the delta is there but it will take a good number of quarters before we are able to bring it to a corporate level margin.
- Unlike what is happening in Thane and in Bangalore, 35-40% of the hospital business in this cluster comes from CGHS and related parties. For empanelment of CGHS and related parties you need something called a 172B license which typically takes time even historically in AP and Telangana it has taken us at least 9 months to one year after the hospital gets commissioned.
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