Krishna Institute of Medical Sciences Ltd (KIMS) Q1 FY27 Results Analysis: PAT Collapses 47%, Revenue Surges 35%

Krishna Institute of Medical Sciences Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 1,179.50 Cr (+35.30% YoY) and PAT growth of -56.00% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Revenue grew 35.3% YoY to Rs.1,179.5 Cr, but PAT to owners collapsed 47.2% as new hospital ramp-up costs, high finance charges, and operating expense growth compressed EBITDA margin to 19.03% (down 307 bps YoY). The QIP of Rs.1,500 Cr raised in June provides a path to deleveraging, but margin recovery hinges on occupancy improvement at new facilities.

Key Investment Insights

Key Positives

• Revenue grew 35.3% YoY to Rs.1,179.5 Cr, the highest quarterly print in the sequence.
• EBITDA grew 16.5% YoY to Rs.224.4 Cr.
• QIP of Rs.1,500 Cr raised on 19 June 2026, with Rs.1,000 Cr earmarked for debt repayment, strengthening the balance sheet.
• Standalone PAT grew 13.1% YoY to Rs.66.5 Cr, with EBITDA margin of 24.44%.
• Auditor gave an unmodified (clean) review opinion on both standalone and consolidated results.

Risk Factors

• PAT to owners declined 47.2% YoY to Rs.41.5 Cr.
• EBITDA margin compressed 307 bps YoY to 19.03%.
• Finance costs rose 155.8% YoY to Rs.83.4 Cr, now 7.07% of revenue.
• New hospitals (subsidiaries) dragged PAT by Rs.25.0 Cr, compared to a positive contribution of Rs.19.8 Cr in Q1FY26.
• Employee costs grew 40.8% YoY and other expenses grew 45.0% YoY, both exceeding revenue growth.