1. At a Glance – The Headline That Makes You Sit Up
Krishna Institute of Medical Sciences Ltd (popularly called KIMS, because long names don’t work in hospital corridors) is currently sitting at a market cap of ~₹23,800 Cr, a stock price of ₹595, and a P/E north of 80x—which basically means the market thinks KIMS will keep adding beds faster than India adds engineering colleges.
Q3 FY26 numbers landed with drama. Revenue grew ~29% YoY to ~₹1,003 Cr, but PAT crashed ~40% YoY to ~₹52 Cr. EBITDA came in at ~₹204 Cr, margins cooled, interest costs ballooned, and depreciation reminded everyone that hospitals are not asset-light SaaS startups.
Occupancy? 51%.
Debt? ₹3,187 Cr.
Expansion pipeline? Exploding like a hospital land acquisition spreadsheet.
In short: KIMS is building hospitals like there’s no tomorrow—while profits are temporarily on oxygen support. Is this a calculated growth sprint or a capital misallocation marathon? Let’s scrub in.
2. Introduction – From Andhra Roots to Pan-India Ambitions
KIMS was incorporated in 1973, long before hospital chains became stock market darlings. Its DNA is deeply regional—Telangana and Andhra Pradesh contribute ~85% of revenues, and that’s where the brand equity is strongest. Tier-2 and Tier-3 cities are KIMS’ natural habitat: large catchment areas, limited competition, and patients who still prefer a “trusted local hospital” over a glossy metro chain.
But the story has evolved. KIMS no longer wants to be just the Andhra-Telangana champion. Over the last few years, it has been quietly (and sometimes not so quietly) expanding into Maharashtra, Karnataka, and Kerala, with Bengaluru becoming the new testing ground for its metro ambitions.
Healthcare investors love this sector for a simple reason:
People don’t stop getting sick during recessions.
But hospitals are also brutally capital intensive. Every new bed means land, construction, equipment, doctors, nurses, and years of ramp-up. And KIMS is currently in a phase where capex is front-loaded, but cash flows are lagging.
So the real
question isn’t “Is healthcare a good business?”
It’s: Is this pace of expansion financially comfortable?
3. Business Model – WTF Do They Even Do?
At its core, KIMS runs multi-specialty hospitals across primary, secondary, tertiary, and quaternary care.
Translation for non-medical folks:
- Primary & secondary care → bread-and-butter surgeries, diagnostics, OPDs.
- Tertiary & quaternary care → cardiac, neuro, oncology, transplants. Big bills. Bigger margins (eventually).
KIMS operates through:
- Owned hospitals
- Operations & Management (O&M) hospitals
- Lease-based models
This hybrid approach reduces upfront risk in some locations, while still allowing brand expansion. The portfolio spans 40+ specialties, with cardiac sciences, orthopaedics, neuro, mother & child, and gastro driving most revenues.
Revenue diversification is decent:
- Cash patients: 52%
- Insurance: 30%
- Corporate: 13%
- Government schemes (Aarogyasri): 5%
This mix is actually healthy—cash + insurance dominance means less receivable stress compared to government-heavy hospital models.
But here’s the catch:
Beds don’t fill themselves.
4. Financials Overview – Growth Is Loud, Profits Are Whispering
Quarterly Comparison Table (Q3 FY26 – Consolidated, ₹ Cr)
| Metric | Latest Qtr (Dec-25) | YoY Qtr (Dec-24) | Prev Qtr (Sep-25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 998 | 772 | 961 | +29% | +4% |
| EBITDA | 199 | 187 | 204 | +6% | -2% |
| PAT | 52 | 92 | 72 | -40% | -28% |
| EPS (₹) | 1.33 | 2.22 | 1.67 | -40% | -20% |
Witty summary:
Sales ran a marathon. Profits forgot their shoes.
Why the PAT pain?
- Interest cost jumped (₹57 Cr this quarter)
- Depreciation surged (₹79 Cr)
- New hospitals = low initial occupancy + high fixed costs
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