Krishna Institute of Medical Sciences
Krishna Institute of Medical Sciences
Healthcare ServicesKey Fundamentals
SmallcapHospitalsHealthcare ServicesTapetide Score
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Key Insights
Strengths
2- Company is expected to give good quarter
- Company's median sales growth is 21.9% of last 10 years
Weaknesses
4- Stock is trading at 13.7 times its book value
- Though the company is reporting repeated profits, it is not paying out dividend
- Promoter holding has decreased over last quarter: -1.62%
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
Krishna Institute of Medical Sciences (KIMS) trades at a market cap of ~₹32,156 crore with a P/E of ~167x, reflecting rich valuations relative to its current earnings. FY25 revenue reached ~₹3,067 crore (up 22% YoY) and PAT was ~₹415 crore (up 23.5% YoY), but TTM profit has declined 43% suggesting recent-quarter earnings pressure, likely driven by aggressive expansion costs across new facilities in Thane, Bangalore, Nashik, and Vizag.
- FY25 revenue grew 22% YoY to ₹3,067 crore, and FY26 full-year revenue surged 28.6% to ₹3,931 crore, demonstrating accelerating top-line momentum
- Compounded sales CAGR of 21–24% over 3, 5, and 10-year periods indicates a durable, consistent revenue growth track record with a 10-year median sales growth of 21.9%
- FY25 EBITDA grew 24.7% YoY to ₹815 crore, showing operating leverage and the ability to scale margins alongside revenue
- KIMS is targeting an addition of ~2,000 beds in FY26 with new units in Thane (300 beds), Bangalore, Nashik, and Vizag (~600 beds), significantly expanding addressable capacity
- Q4 FY26 revenue grew 35.3% YoY to ₹1,084 crore, indicating strong sequential ramp-up in newer facilities
- Thane facility already at 30–35% occupancy and Bangalore expected to reach 30% within a quarter of launch, suggesting faster-than-expected ramp-up at greenfield units
- Management projects 20–25% annual revenue and EBITDA growth through FY28, underpinned by increasing complex surgeries and multi-city expansion
- Company is expected to deliver a good upcoming quarter per market consensus, supported by the seasonal uptick and maturing new units
- P/E ratio of ~167x is extremely elevated for a hospital chain, implying the stock prices in several years of flawless execution with limited margin of safety
- TTM compounded profit growth is -43%, indicating a sharp recent decline in earnings despite strong revenue, likely due to new-unit losses and interest costs
- Stock trades at ~13.8x book value (P/B 8.66 per screener data, 13.8x per qualitative assessment), well above hospital sector averages, leaving little room for disappointment
- Promoter holding decreased by 1.62% in the most recent quarter, signaling potential dilution or reduced insider confidence
- New-unit bed occupancy stands at just 48% across recently added facilities in Nashik and Vizag, with initial losses expected to continue until FY27 before the burn rate is eliminated
- Despite reporting repeated profits, the company pays zero dividend (0% yield), offering no income return to shareholders while retaining all earnings for expansion
- Company may be capitalizing interest costs, which could flatter reported profits and mask the true cost of its debt-funded expansion
- 3-year compounded profit CAGR is -9%, diverging sharply from the 21% sales CAGR over the same period, highlighting significant margin compression during the expansion phase
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Net profit drops 47% in Q1 Sep 3
Consolidated net profit fell to ₹37-41.5 crore in Q1 FY27 from ₹78.6-85 crore in Q1 FY26, impacted by elevated finance and operational costs from newly opened hospital units.
- EBITDA margin contracts sharply Sep 3
EBITDA margin contracted to 18.9-20.1% in Q1 FY27 from 22.1-22.7% in Q1 FY26 due to expansion gestation costs, with FY26 occupancy at a cyclical low of 51%.
- Elevated debt despite reduction Aug 20
Total debt stands at approximately ₹2,400 crore as of July 2026, down from ₹3,250 crore in March 2026 after using ₹1,125 crore of QIP proceeds for deleveraging.
- Stock down 6% in one month Sep 3
KIMS shares declined 6% over the prior month as of Sep 3, trimming year-to-date gains to 25%, reflecting near-term concerns over margin pressure.
- Revenue surges 35% YoY in Q1 Sep 3
Consolidated operating revenue grew 35.3% YoY to ₹1,179.5 crore in Q1 FY27, with total revenue reaching ₹1,196 crore, driven by strong patient volumes.
- Investec initiates with ₹1,000 target Sep 3
Investec initiated coverage with a buy rating and ₹1,000 target (32.7% upside), projecting 25% sales CAGR and 33% EBITDA CAGR over FY26-29. 19 of 20 analysts have buy ratings.
- Asset-light O&M expansion accelerates Sep 10
KIMS signed two O&M deals in August-September 2026: a 183-bed hospital in Kakinada and a 250-bed Arete Hospital in Hyderabad, both at 9% net revenue fee with 5+5 year terms and zero upfront capex.
- Promoter warrants raise ₹150 crore upfront Aug 20
KIMS allotted 77.02 lakh convertible warrants at ₹779 each to promoters, receiving ₹150 crore upfront (25% of ₹600 crore total). Promoter stake rises from 32.50% to 33.71% on full conversion.
- Call option on Hyderabad hospital Aug 20
KIMS secured a call option to acquire the Arete Hospital business in Gachibowli, Hyderabad, providing future acquisition flexibility without current commitment.
- AGM approves FY26 financials Aug 27
KIMS held its 24th AGM on August 27, 2026, approving FY26 financial statements and reappointing director Ms. Dandamudi Anitha.
- Denies Renova acquisition reports Aug 27
KIMS denied reports of a $52 million stake acquisition in Renova Hospitals, stating no agreement or MOU has been entered into.
- Investor meet hosted Sep 10 Sep 7
KIMS hosted an institutional investor meeting on September 10, 2026, at its Mahadevpura facility, organized by Emkay Global.
TL;DR: KIMS is delivering strong top-line momentum with 35% revenue growth but profitability is under pressure as net profit dropped 47% and EBITDA margins contracted to ~19-20% due to new hospital gestation costs. The strategic pivot toward asset-light O&M deals (Kakinada, Hyderabad) and promoter capital infusion signal management's focus on capital-efficient growth and deleveraging. Investec's bullish initiation and near-unanimous analyst buy ratings reflect confidence in the FY26-29 recovery trajectory. The key inflection point will be whether occupancy (currently 51%) and margins recover as new capacity matures over the next 2-3 quarters.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 606 | 652 | 606 | 634 | 688 | 777 | 772 | 797 | 872 | 961 | 998 | 1,075 | 1,180 |
| Expenses | 449 | 475 | 459 | 475 | 509 | 559 | 585 | 599 | 679 | 757 | 799 | 868 | 956 |
| Operating Profit | 157 | 177 | 147 | 159 | 179 | 218 | 187 | 198 | 193 | 204 | 199 | 206 | 223 |
| OPM % | 26% | 27% | 24% | 25% | 26% | 28% | 24% | 25% | 22% | 21% | 20% | 19% | 19% |
| Other Income | 3 | 3 | 3 | 4 | 5 | 5 | 18 | 15 | 7 | 4 | 5 | 1 | 17 |
| Interest | 9 | 9 | 12 | 16 | 18 | 20 | 26 | 27 | 33 | 45 | 57 | 68 | 83 |
| Depreciation | 32 | 33 | 35 | 46 | 39 | 41 | 45 | 53 | 53 | 66 | 79 | 85 | 101 |
| PBT | 119 | 139 | 102 | 100 | 127 | 162 | 135 | 134 | 114 | 97 | 69 | 55 | 57 |
| Tax % | 27% | 27% | 25% | 28% | 25% | 26% | 31% | 21% | 25% | 26% | 24% | 40% | 34% |
| Net Profit | 87 | 101 | 77 | 72 | 95 | 121 | 92 | 106 | 85 | 72 | 52 | 33 | 37 |
| EPS in Rs | 2.02 | 2.3 | 1.8 | 1.64 | 2.16 | 2.68 | 2.22 | 2.54 | 1.96 | 1.67 | 1.33 | 1.06 | 0.99 |
Profit & Loss
| Particulars | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 512 | 567 | 664 | 918 | 1,123 | 1,330 | 1,651 | 2,198 | 2,498 | 3,035 | 3,905 | 4,212 |
| Expenses | 403 | 450 | 593 | 833 | 872 | 953 | 1,126 | 1,587 | 1,850 | 2,242 | 3,090 | 3,380 |
| Operating Profit | 109 | 118 | 71 | 85 | 251 | 377 | 524 | 611 | 648 | 793 | 815 | 833 |
| OPM % | 21% | 21% | 11% | 9% | 22% | 28% | 32% | 28% | 26% | 26% | 21% | 20% |
| Other Income | 5 | 3 | 37 | 6 | 5 | 9 | 27 | 41 | 13 | 43 | 17 | 28 |
| Interest | 37 | 32 | 88 | 49 | 44 | 37 | 22 | 37 | 55 | 100 | 215 | 253 |
| Depreciation | 36 | 35 | 40 | 56 | 71 | 70 | 73 | 129 | 147 | 177 | 283 | 331 |
| PBT | 41 | 53 | -20 | -15 | 141 | 279 | 457 | 485 | 460 | 558 | 334 | 277 |
| Tax % | 32% | 37% | 126% | 223% | 18% | 26% | 25% | 25% | 27% | 26% | 28% | — |
| Net Profit | 28 | 33 | -46 | -49 | 115 | 205 | 344 | 366 | 336 | 415 | 242 | 194 |
| EPS in Rs | 0.76 | 0.91 | -1.32 | -1.28 | 3.2 | 5.19 | 8.32 | 8.41 | 7.75 | 9.61 | 6.03 | 5.05 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | — |
Balance Sheet
| Particulars | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 70 | 72 | 50 | 74 | 74 | 78 | 80 | 80 | 80 | 80 | 80 |
| Reserves | 193 | 255 | -209 | 466 | 524 | 786 | 1,307 | 1,590 | 1,748 | 2,058 | 2,167 |
| Borrowings | 256 | 280 | 753 | 336 | 369 | 316 | 257 | 678 | 1,355 | 2,562 | 4,253 |
| Other Liabilities | 146 | 167 | 359 | 237 | 228 | 253 | 260 | 553 | 636 | 990 | 1,190 |
| Total Liabilities | 665 | 774 | 954 | 1,114 | 1,194 | 1,433 | 1,904 | 2,901 | 3,820 | 5,689 | 7,691 |
| Fixed Assets | 515 | 518 | 755 | 863 | 916 | 931 | 1,005 | 1,766 | 2,434 | 3,348 | 5,710 |
| CWIP | 2 | 64 | 0 | 0 | 2 | 9 | 21 | 477 | 600 | 1,214 | 606 |
| Investments | 11 | 14 | 0 | 0 | 0 | 0 | 332 | 68 | 157 | 99 | 103 |
| Other Assets | 137 | 177 | 199 | 250 | 276 | 493 | 546 | 590 | 629 | 1,028 | 1,271 |
| Total Assets | 665 | 774 | 954 | 1,114 | 1,194 | 1,433 | 1,904 | 2,901 | 3,820 | 5,689 | 7,691 |
Cash Flow
| Particulars | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 95 | 82 | 106 | 134 | 202 | 356 | 324 | 432 | 521 | 582 | 511 |
| Investing | -41 | -100 | -64 | -110 | -125 | -354 | -412 | -416 | -753 | -1,116 | -1,452 |
| Financing | -65 | 24 | -39 | -27 | -44 | 10 | 61 | 20 | 217 | 543 | 940 |
| Net Cash Flow | -11 | 5 | 3 | -3 | 32 | 12 | -26 | 36 | -15 | 9 | -1 |
| Free Cash Flow | 61 | -18 | 49 | 57 | 150 | 262 | 154 | -140 | -125 | -380 | -902 |
| CFO/OP | 88 | 80 | 192 | 195 | 102 | 104 | 86 | 87 | 102 | 91 | 81 |
Ratios
| Particulars | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 47 | 59 | 59 | 49 | 43 | 30 | 28 | 42 | 43 | 48 | 52 |
| Inventory Days | 36 | 43 | 46 | 47 | 44 | 30 | 37 | — | — | — | — |
| Days Payable | 194 | 207 | 215 | 181 | 177 | 167 | 133 | — | — | — | — |
| Cash Conversion Cycle | -111 | -105 | -110 | -85 | -91 | -106 | -67 | 42 | 43 | 48 | 52 |
| Working Capital Days | 11 | 26 | -333 | -15 | -15 | -31 | -3 | 8 | -5 | -29 | -37 |
| ROCE % | — | 15% | 11% | 5% | 20% | 29% | 34% | 24% | 17% | 15% | 10% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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62 extracted metrics + investor summaries across FY05–FY27.
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Company Information
Krishna Medical Institution Ltd (KIMS) was Incorporated in the year 1973 and is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of patients treated and treatments offered. The company offers multidisciplinary healthcare services with primary, secondary, and tertiary care across 2-3 tier cities and an additional quaternary healthcare facility in tier-1 cities.
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