Krishna Institute of Medical Sciences saw revenue surge 40% year-on-year to ₹1,344 crore in Q2 FY27. However, net profit grew a mere 3.6% as rapid expansion drove up depreciation and interest costs, compressing margins.
For KIMS Hospitals, the September quarter was a story of scale arriving before profit. The hospital chain’s aggressive expansion filled beds and lifted revenue sharply, but the costs of building that future are being paid for now.
Revenue rose 40% year-on-year to ₹1,344 crore. Net profit, however, inched up just 3.6% to ₹74.6 crore. The net profit margin contracted 200 basis points from a year ago to 5.5%.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
Metric
CurrentQ2 FY27
PreviousQ1 FY27
Same quarter LYQ2 FY26
Revenue (₹ Cr)
1,344.4YoY +40%
1,179.5
960.7
Profit (₹ Cr)
74.6YoY +3.6%
37.4
72.0
Net Profit Margin (%)
5.5YoY -27%
3.2
7.5
Why the Profit Engine Stalled
Strong patient volume drove the top line. Inpatient count rose 27% and outpatient visits grew 23%, reports Investywise. But total expenses surged 46%, far outpacing revenue growth.
Depreciation soared 83% and interest cost jumped 46% year-on-year. These are the signatures of a capital-intensive build-out. New units in Bengaluru, Maharashtra and Kerala are ramping up, dragging on group profitability.
The One-Off That Flattered the Print
Reported profit was supported by a non-recurring item. A ₹13.2 crore exceptional gain from valuing call options under management agreements lifted the bottom line, according to analysis by Scanx.trade. Excluding this, core profit before tax actually fell 4.5%.
The quality of earnings is thus mixed. Growth is real, but current profitability leans on a valuation gain rather than pure operating leverage.
The Path to Better Margins
Management’s focus is on stabilizing new hospitals. It expects losses from new units to halve this fiscal year, notes a report from DSIJ. Key triggers are the ramp-up of the large Kondapur facility and debt reduction from a recent fundraise.
Interest costs should ease. The company used QIP proceeds to repay ₹1,100 crore of debt in July, with the full benefit flowing from this quarter onward. The balance sheet, however, remains leveraged with a debt-to-equity of 1.44.
Key Points
Revenue growth of 40% YoY was powered by a 27% rise in inpatient volumes.
Profit growth lagged at 3.6% as depreciation and interest costs surged due to expansion.
A ₹13.2 crore exceptional gain supported the reported profit number.
The focus is now on ramping up new units to stem losses and improve operating leverage.
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Hexa Perspective
The quarter confirms KIMS is deep in an investment cycle. Revenue momentum is robust, but the payoff in earnings is deferred. The next few quarters will test if occupancy gains in new hospitals can outrun their fixed costs.
Success hinges on execution in key new clusters like Kondapur. If those units ramp as guided, margins should recover. Until then, earnings will remain under pressure despite the impressive top-line story.
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Frequently asked questions
What were KIMS Hospitals' Q2 FY27 results?
Krishna Institute of Medical Sciences reported Q2 FY27 revenue of ₹1,344.4 crore, a 40% year-on-year increase. Net profit was ₹74.6 crore, up 3.6% from the same quarter last year. The net profit margin contracted to 5.5% from 7.5% a year ago.
Why did KIMS's profit growth lag behind its revenue growth in Q2 FY27?
KIMS's profit growth of 3.6% lagged its 40% revenue surge because total expenses jumped 46% year-on-year. Key costs like depreciation (up 83%) and interest (up 46%) rose sharply due to the ongoing ramp-up of newly built hospitals across its network.
What was KIMS's net profit margin in Q2 FY27?
KIMS's net profit margin was 5.5% for the September 2026 quarter (Q2 FY27). This represents a contraction of 200 basis points from the 7.5% margin reported in the same quarter the previous year, pressured by expansion-related costs.
Did KIMS have any exceptional gains in Q2 FY27?
Yes, KIMS reported an exceptional gain of ₹13.2 crore in Q2 FY27 related to the valuation of call options under hospital management agreements. Analysis by Scanx.trade notes that without this one-off item, the core profit before tax would have declined year-on-year.
What is KIMS management's outlook for new hospitals?
Management expects losses from new hospital units to fall to below ₹60 crore in FY27 from ₹120 crore in FY26, as per a DSIJ report. The focus is on ramping up occupancy at recently commissioned facilities like Kondapur to achieve EBITDA break-even.
How did KIMS reduce its debt in Q2 FY27?
KIMS utilized proceeds from a Qualified Institutional Placement (QIP) to repay ₹1,100 crore of debt in early July 2026. Management stated in its Q1 earnings call that the full benefit of reduced interest costs would be visible from the Q2 FY27 quarter onward.
What were KIMS's operational metrics for Q2 FY27?
According to Investywise, KIMS's inpatient volume grew 27% year-on-year to 81,668 in Q2 FY27. Outpatient volume rose 23.3% to 731,010. Average revenue per operating bed increased 14.9% to ₹48,277.
What is KIMS's current debt-to-equity ratio?
KIMS's debt-to-equity ratio stands at 1.44, as per the latest financials. This indicates a leveraged balance sheet, which is typical for a hospital chain funding significant capacity expansion through debt.
KIMS Q2 net profit rises 12% to ₹75 crore, revenue jumps 40% but margin declines
KIMS reported a consolidated net profit of ₹75 crore in Q2 FY27, an 11.9% increase year-on-year as per CNBC-TV18. Revenue from operations jumped 39.9% to ₹1,344 crore. However, the EBITDA margin declined to 19.4% from 21.2% a year ago.
KIMS Hospitals reports 39.9% revenue growth for Q2 FY27
KIMS Hospitals reported a 39.9% year-on-year increase in total revenue to ₹1,363 crore for Q2 FY27, according to Investywise. EBITDA for the quarter grew 34% to ₹278.9 crore, resulting in an EBITDA margin of 20.5%.
Krishna Institute of Medical Sciences Reports 39.9% Q2 Growth
Krishna Institute of Medical Sciences reported Q2 FY27 total income of ₹1,363 crore, a 39.9% year-on-year growth. EBITDA increased 34% to ₹278.9 crore. The results were driven by a 27% rise in inpatient volume and a 23% increase in outpatient volume.
KIMS Q2FY27 Results: Revenue up 40% YoY to ₹1,344 crore, PAT rises 3.6%
For Q2 FY27, KIMS's revenue from operations was ₹1,344 crore, up 40% year-on-year. Profit after tax attributable to owners rose 3.6% to ₹75 crore. The results highlighted margin pressure as total expenses grew 46%, faster than revenue.
