Krishna Institute of Medical Sciences Ltd. share price target

Krishna Institute of Medical Sciences (KIMS)’s Q2FY26 revenue was in line with our expectation. That said, EBITDA loss at Maharashtra of INR 96mn (-100bps) and Karnataka of INR 255mn (-265bps) coupled with lower margin at Kerala cluster dragged EBITDA margins to a low of 21.2%.

We maintain our BUY rating on the stock.

BUY with a target price of Rs 792, implying an upside of ~10% from the CMP.

Well planned expansion based on proven track record incorporated in the year 2000 and is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of patients treated and treatments offered. The hospital operates in five geographic clusters- i) Andhra Pradesh; ii)...

*over or under performance to benchmark index In Q1FY25, inpatient volume was up 15.3% YoY and 6.22% QoQ, while outpatient KIMS ramped up its capacity to 5,499 beds in Q1FY26. However, occupancy...

Krishna Institute of Medical Sciences (KIMS) reported EBITDA growth of 7.4% YoY, below our estimates impacted by higher losses from new units. Our FY26E EBITDA stands reduced by 5%, however FY27E EBITDA broadly remains unchanged as new units are likely to ramp up. The company is on track to commercialize greenfield expansions at Bengaluru markets by Q2FY26. New leadership team hiring across Karnataka and Kerala provides comfort for faster ramp-up in these clusters. Given its lean cost structure and partnership...

We maintain our BUY rating on the stock with a target price of Rs 830/share,

Given its lean cost structure and partnership with local doctors/ leadership outside Andhra Pradesh (AP) and Telangana, the management remains confident of achieving faster breakeven and +25% OPM across Maharashtra,...

KIMS demonstrated strong financial performance, with key parameters such as average revenue per occupied bed (ARPOB) and average revenue per patient (ARPP) growing on a YoY basis. A spate of initiatives, expansions and new equipment were launched during the year. The company is confident about its future prospects and expects to benefit from its commitment to quality services and expertise. With new units poised to contribute to the company's performance, KIMS...

Krishna Institute of Medical Sciences’ (KIMS) delivered robust performance in Q4FY25 with revenue/EBITDA/PAT surging 26%/29%/49%, respectively. Existing clusters of AP/ Telangana grew 19%/23% while EBITDA growth was much faster at 37%/34% YoY, respectively.

YoY, adj for one offs; was in line with our estimates. Our FY26E/FY27E EBITDA broadly remain unchanged. The company is on track to commercialize greenfield expansions across Thane and Bengaluru markets by H1FY26. New leadership team hiring across Karnataka and Kerala provides comfort for faster ramp-up in these clusters. Given its lean cost structure and partnership...

Commissioned 200-bed multispecialty hospital in Guntur (Q3FY25) under O&M model.

? Krishna Institute of Medical Sciences (KIMS) reported a robust 29.7% y-o-y increase in total income to Rs 790.2 crore in 3Q FY25.
? Calculated blended occupancy rate (basis total bed capacity) was 50.7% in 3Q FY25, compared to 56.8% in 2Q FY25.

We maintain our BUY rating on the stock with a target price of Rs 710/share

Capacity expansion to drive growth

Krishna Institute of Medical Sciences’ (KIMS) Q3FY25 revenue was in-line while EBITDA and PAT were dragged by seasonality and its new Nashik hospitals. KIMS’ hospitals in Telangana/Andhra Pradesh grew a robust 26.1%/27.8% YoY. In Q3FY25, it commenced operations at its 325-bed hospital in Nashik (EBITDA loss of INR 50mn in Q3FY25), which is likely to break even by Q3FY26.

KIMS’s Q3FY25 revenues were ahead of Street/our estimates, while profitability lagged owing to certain write-offs in Maharashtra and AP clusters, and losses in the Nashik hospital.

Krishna Institute of Medical Sciences (KIMS) reported a robust 19.4% y-o-y increase in Total Income during 2QFY25, reaching Rs 782.3 crore.
Calculated blended occupancy rate (basis total bed capacity) was 49.7% in 2Q FY25, compared to 47.8% in 1Q FY25.