Financial Performance Summary

Krishna Institute of Medical Sciences Limited reported strong consolidated revenue growth of 28.2% to ₹39,308 million in FY26 (from ₹30,670 million in FY25), driven by significant expansion across its hospital network. However, profitability faced pressure with PAT declining 41.7% to ₹2,420 million due to heavy expansion costs and increased finance costs of ₹2,025 million. EBITDA reached ₹8,282 million with a margin of 21.1% (down from 26.6% in FY25). Standalone performance showed revenue of ₹17,581 million (22% growth) with PAT of ₹2,607 million (14% decline).

Operational Expansion & Capacity

KIMS expanded aggressively to 26 hospitals across 5 states (Telangana, Andhra Pradesh, Maharashtra, Kerala, Karnataka) with 8,600+ beds including planned capacity. Key new facilities commissioned included Bengaluru (Mahadevapura 450 beds, Electronic City 350 beds), Mumbai Thane (300 beds), Sangli O&M (350 beds), Kollam (320 beds), and Guntur units (300 beds). The company invested ₹22.3 billion in property, plant and equipment, with capital work-in-progress of ₹1,160 million and estimated capital commitments of ₹11,502 million.

Financial Structure & Fundraising

The company significantly increased borrowings to ₹32,440 million (from ₹19,109 million in FY25) with net debt-to-equity ratio at 141%. To strengthen its balance sheet, KIMS raised ₹1,500 crore through a successful QIP offering (oversubscribed) and ₹600 crore preferential allotment to promoters, utilizing ₹1,100 crore for debt reduction. The equity structure included 400,138,935 shares of ₹2 each after a 1:5 stock split, with promoters maintaining 34% holding.

Clinical Milestones & Technology Adoption

KIMS achieved significant clinical recognition including winning the ACR Knowledge Bowl 2025 in Chicago (first Indian team in 40 years), Dr. Raghu Ram's third Guinness World Records title for AI-enabled holographic breast health education, and Dr. Manas Panigrahi completing 10,000+ successful brain tumor surgeries. Technology adoption included region's first Medtronic Spine Robot, AI-driven Early Warning Systems, Total Laboratory Automation system, and advanced treatment platforms (Tulsa-Pro, MRgFUS, Gamma Knife, Da Vinci Robotic Systems).

Sustainability & ESG Performance

The company demonstrated commitment to sustainability with GHG emissions intensity of 19.53 MT CO2e/million USD and comprehensive waste management practices (298.075 metric tonnes waste generated). CSR expenditure totaled ₹106 million across initiatives including Srikakulam End Malnutrition Initiative (71% reduction in Severe Acute Malnutrition), Youth4Jobs skill development program, DRISTI AI-powered smart glasses for visually impaired, and 75+ free health camps.

Corporate Governance & Compliance

Board composition remained stable with Dr. Bhaskara Rao Bollineni as Chairman & MD and Dr. Abhinay Bollineni as Director & CEO. The company maintained full compliance with SEBI LODR regulations, received unmodified audit opinions from S.R. Batliboi & Associates LLP, and implemented robust risk management frameworks addressing geographic concentration, talent retention, regulatory changes, and cybersecurity.

Subsidiary Activities & Acquisitions

KIMS increased stakes in several subsidiaries: Sarvejana Healthcare (69.35% to 76.24% for ₹1,500 million), Arunodaya Hospital (67.66% to 70.67%), and acquired 100% of Chalasani Hospitals Private Limited for ₹1,112 million. The company entered into hospital operations & management agreements with 15-20 year terms and commenced operations from October 2024 and February 2025.

Regulatory Impact & Employee Benefits

The implementation of new Labour Codes resulted in a one-time impact of ₹74 million on employee benefit provisions. Gratuity obligation stood at ₹583 million with plan assets of ₹46 million. The workforce comprised 23,400+ employees with women representing 54.5% of permanent staff and average training hours of 40 per employee.

Contingent Liabilities & Commitments

Contingent liabilities included medical claims of ₹457 million, income tax matters in dispute (₹354 million), and GST disputes (₹7 million). Export obligation under EPCG scheme amounted to ₹643 million (6 times duty saved).

Outlook & Strategic Focus

KIMS continues its expansion strategy with future pipeline including Kondapur II campus, Palakkad and Chennai facilities, while maintaining debt-to-EBITDA below 1.0x target. The company focuses on geographic diversification, doctor equity participation models, and advanced technology adoption to drive long-term growth despite short-term profitability pressures.