Financial Performance Highlights
Kovai Medical Center and Hospital Limited reported strong financial results for FY 2025-26 with revenue from operations growing 16% to ₹1,58,563.68 lakhs from ₹1,37,111.30 lakhs in the previous year. Profit after tax increased 17% to ₹24,446.00 lakhs (from ₹20,894.62 lakhs), while profit before tax stood at ₹32,569.14 lakhs. The company achieved an EBITDA margin of 29% and PAT margin of 15%, with basic/diluted earnings per share of ₹223.41 (up from ₹190.95).
Dividend Recommendation and Capital Structure
The Board recommended a final dividend of ₹15 per equity share (150% of face value) for FY26, subject to shareholders' approval at the upcoming AGM. This would result in a cash outflow of ₹1,641.34 lakhs. The company maintained a strong financial position with net debt-to-equity ratio improving to 4.39% from 13.27% in FY25, supported by total cash of ₹34,487.85 lakhs against total borrowings of ₹40,274.72 lakhs.
AGM Details and Corporate Governance
The 40th Annual General Meeting is scheduled for 26 August 2026 through Video Conference, with business including adoption of financial statements, dividend declaration, and reappointment of Dr. M.C. Thirumoorthi as director. The record date for e-voting is fixed as 19 August 2026, with remote e-voting available from 23-25 August 2026 through NSDL platform. The company has complied with all SEBI corporate governance requirements and maintained CRISIL ratings of 'CRISIL AA- (Stable)' for long-term facilities and 'CRISIL A1+' for short-term facilities.
Operational Performance and Investments
The healthcare segment contributed ₹1,47,024.61 lakhs to revenue, while education contributed ₹11,539.07 lakhs. Operational metrics showed significant improvement: inpatients increased 14.85% to 1,20,897, outpatients grew 12.50% to 13,95,050, bed occupancy rate improved to 63.41% from 60.44%, and average revenue per occupied bed reached ₹24,714. The company invested ₹11,845.14 lakhs in equipment and inaugurated a ₹120 crore Institute of Neuro Sciences facility in January 2026, with a 300-bed Paediatric Hospital project approved for Q2 2026.
Financial Position and Ratios
The company maintained a current ratio of 1.29, debt equity ratio of 0.31, and return on equity of 20.33%. Employee benefits expense increased to ₹30,648.45 lakhs (from ₹25,118.15 lakhs) with total employee strength of 6,885. Finance costs decreased to ₹3,201.69 lakhs, while tax expense was ₹8,123.14 lakhs. Segment assets totaled ₹2,06,608.12 lakhs, with healthcare comprising ₹1,75,157.62 lakhs and education ₹25,494.18 lakhs.
Compliance and Additional Disclosures
The company transferred unpaid dividend for FY 2017-18 to IEPF and paid a ₹25,000 penalty for historical compliance violation. CSR obligation was ₹446.86 lakhs with ₹41.86 lakhs spent during the year. Contingent liabilities included disputed statutory liabilities of ₹814.87 lakhs and claims not acknowledged as debt of ₹879.31 lakhs. All related party transactions were conducted at arm's length and in ordinary course of business.