KMC Speciality Hospitals (India) Ltd Q2FY26 — 33% Revenue Surge, 179% Profit Jump, and a 5 Crore Court Bill That Didn’t Kill the Pulse

1.At a Glance

If you thought hospitals only deal with heartbeats, think again—KMC Speciality Hospitals (India) Ltdjust made its investors’ hearts race faster than an ICU monitor. The Trichy-based super-specialty hospital (part of theKauvery Hospitals Group) clocked₹74.9 crore revenuein Q2FY26, up a solid33.2% YoY, withPAT jumping 179%to₹10.8 crore. The stock’s trading around₹80.8, giving it amarket cap of ₹1,318 crore,P/E of 43.4x, andROCE of 17.4%— numbers clean enough to pass an ECG test.

Borrowings have crept up to₹89 crore(from ₹50 crore in FY23), mainly for the new 200-bed facility under its “Maa Cauvery” project. Meanwhile, the Supreme Court ordered KMC to pay ₹5 crore + 9% interest over a property dispute — but the hospital didn’t skip a financial beat. With azero pledge,75% promoter holding, and anOPM of 26%, KMC is literally a clean-sheet in a messy hospital sector.

As theBhagavad Gitareminds us: “You have a right to perform your prescribed duties, but you are not entitled to the fruits of your actions.”KMC’s management clearly disagrees — their fruits are showing up handsomely in the quarterly results. 🍎💉

2.Introduction

Welcome toTrichy’s most profitable healing center, where beds are full, doctors are busy, and the financials look healthier than most patients. KMC Speciality Hospitals (India) Ltd—part of the Kauvery empire—has quietly become one of South India’s hospital success stories. While others in the healthcare game need massive corporate backing or celebrity endorsements, KMC simply relies onscalpel precision and spreadsheets that sing.

From neurology to neonatology, from transplants to tax payments, KMC seems to have mastered both kinds of surgeries—medical and financial. FY25 numbers show a29.7% sales growth,17% profit growth, and anearnings yield of 3.8%. And unlike many peers, it actually earns these numbers from patient bills, not just accounting thrills.

But let’s not get too romantic. It’s not all divine healing. Debt has doubled in two years, interest costs are now visible in the P&L, and the company had a courtroom detour that could make even a neurosurgeon nervous. Still, when youraverage revenue per occupied bed is ₹27,589, you can afford a few legal stents.

3.Business Model – WTF Do They Even Do?

KMC Speciality Hospitals is theTrichy jewel in the Kauvery crown. It operates a250-bed multi-specialty hospitalwith services spanning from brain surgery to baby delivery—because why focus on one body part when you can bill for all?

The Kauvery Group, its holding parent, has2,250 beds across 12 locations, handling10 lakh OPD and 1 lakh IPD patients yearly. KMC’s role in this empire? A high-efficiency revenue engine catering primarily to Tier-2 and Tier-3 patients who preferKauvery care over Chennai chaos.

Theirrevenue mix screams diversity:

• Mother & Child Care – 26%(babies and billings both growing fast)
• Neuro Science – 17%(brains = profits)
• Gastro Science – 12%(where biryani meets biology)
• Critical Care – 9%
• General Medicine – 8%
• Others spread across orthopaedics, renal science, haematology, and plastic surgery.

And here’s the kicker:67% of the revenue is cash-based,22% via TPA/corporates, andonly 11% through government schemes—making KMC one of the few hospitals that can say, “We’re not living off Ayushman Bharat reimbursements.”

This hospital doesn’t just cure patients—it cures financial mediocrity.

4.Financials Overview

Annualised EPS:₹0.66 × 4 =₹2.64→P/E = 30.6x(on annualised basis)

Commentary:That’s not growth—it’s a post-surgery miracle. The hospital’s profit margin looks healthier than a yoga instructor after detox. OPM of28%, NPM around14%,