1. At a Glance
Kovai Medical Center & Hospital Ltd (KMCH) is that rare hospital stock which actually behaves like a hospital business and not like a real-estate developer in a lab coat. Market cap sits at ₹5,890 Cr, current price around ₹5,384, and the stock is quietly correcting ~13% in the last 3 months while fundamentals keep jogging on the treadmill.
Q3 FY26 numbers?
Revenue ₹407 Cr (+14.6% YoY), PAT ₹65 Cr (+12.5% YoY), operating margin a very comfortable 28%, and EPS of ₹59.42 for the quarter. Debt is down to ₹399 Cr from ₹550 Cr in FY22, CRISIL is smiling with AA-/Stable, and promoters are chilling at 56.5% holding with zero pledge.
Meanwhile, management has approved ₹600 Cr of new hospitals (Sulur + Children’s hospital), launched a Neurosciences block, and is still finding time to buy land in Chennai. Stock price yawns. Investors panic. Business keeps compounding. Classic.
2. Introduction
KMCH is not trying to be Apollo. It’s not chasing pan-India branding with billboards on highways. This is a regional healthcare monopoly behaving like a private equity case study that accidentally got listed.
Founded in Coimbatore, KMCH built scale the boring way—beds, doctors, specialties, occupancy, cash flows. No glamour. No flashy acquisitions abroad. Just steady execution in Tamil Nadu, where patients actually pay bills on time.
What’s interesting is how education quietly entered the party. The medical college started in 2019 now contributes 7% of revenue, runs at 100% seat occupancy, and prints predictable cash flows with average fees of ₹14 lakh per annum. Hospitals save lives; colleges mint money. KMCH does both.
But markets hate boredom. Stock returns have gone flat recently despite improving KPIs. So the real question:
is this a mature compounder taking a coffee break, or is the market smelling margin pressure ahead?
3. Business Model – WTF Do They Even Do?
KMCH runs a multi-specialty hospital network with 2,250 operational beds across Coimbatore, Sulur, Erode, and Kovilpalayam. Healthcare contributes 93% of FY25 revenue. Education does the remaining 7%, but punches above its weight in predictability.
Specialties are not random:
- Neurology + Cardiology = 23% of revenue
- Strong leadership in cancer care, including cardio-oncology and pediatric oncology
- High-end surgeries, robotic orthopaedics, and advanced cardiac mapping
This isn’t a “let’s add dermatology because margins are good” hospital. This is acuity-driven medicine with pricing power.
Education arm?
750 medical seats, fully occupied, supported by ICU beds, OTs, CT, MRI, cath labs—the works. Basically, students pay to learn inside KMCH’s own hospitals. Vertical integration, desi edition.
Question for you: how many hospital chains get both patients and future doctors under the same roof?
4. Financials Overview (Q3 FY26)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 407 | 355 | 392 | 14.6% | 3.8% |
| EBITDA (₹ Cr) | 116 | 103 | 107 | 12.6% | 8.4% |
| PAT (₹ Cr) | 65 | 58 | 59 | 12.5% | 10.2% |
| EPS (₹) | 59.42 | 52.82 | 53.79 | 12.5% | 10.5% |
Annualised EPS (Q3 rule):
Average of Q1–Q3 FY26 EPS ≈ (52.30 +
