Revenue surged, but KIMS profit fell 56% YoY
Costs grew faster than revenue, while interest and depreciation rose sharply; other income supplied 30.74% of pre-tax profit.
Filed 03 Aug 2026, 18:06 IST · after market close · Krishna Institute of Medical Sciences Ltd (KIMS)
Key takeaways
- Revenue grew +35.33% YoY, but net profit fell -56.00% as costs, interest and depreciation rose faster.
- Operating margin narrowed 3.16 percentage points YoY to 18.94%, leaving it 3.60 percentage points below the healthcare peer median.
- Other income contributed 30.74% of pre-tax profit, while the tax rate rose 8.68 percentage points YoY.
Price around the results
Revenue growth did not convert into earnings
KIMS reported consolidated revenue growth of +35.33% YoY, but operating profit rose only +15.99% and net profit fell -56.00% to Rs 37.4 cr. The pressure below operating profit came from interest, which increased +155.83% YoY, and depreciation, which rose +88.76%. On a sequential basis, revenue grew +9.76% and net profit increased +12.99%.
Costs and financing narrowed the margin
Expenses grew +40.81% YoY against revenue growth of +35.33%, reducing operating margin by 3.16 percentage points to 18.94%. Sequentially, expenses also grew faster than revenue, at +10.14% versus +9.76%, and operating margin declined another 0.28 percentage points. The tax rate was 8.68 percentage points higher YoY, although it fell 5.68 percentage points sequentially; other income accounted for 30.74% of pre-tax profit.
Operating margin has fallen for six straight quarters
Operating margin has declined in each of the six reported quarters from 24.85% in Q4FY25 to 18.94% in Q1FY27. Among 30 healthcare peers that have reported the quarter, KIMS was 3.60 percentage points below the 22.54% median and ranked eighth from the bottom. This makes the continuing margin erosion more significant than the quarter's revenue growth alone.
Expansion added capacity and higher-value services
Management said the company is pursuing regional expansion to build a leading presence in its target geographies and grow new business. The company said it added 208 beds at Palakkad and completed operating-theatre modernisation, PET-CT installation and Biplane Cath Lab commissioning during the quarter. It also said Vizag launched robotic surgery, aesthetic medicine and IVF services, while the group completed 24 organ transplants and more than 100 robotic surgeries.
No immediate market reaction after the filing
The company filed its consolidated results after market close on 03 Aug 2026. After its previous eight results, the stock rose five times and fell three times, with a median absolute move of 1.81%; the current filing has no reported post-results reaction yet.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,180 cr | ₹1,075 cr | +9.76% | +35.33% |
| Other income | ₹17 cr | ₹1 cr | +1142.86% | +145.07% |
| Expenses | ₹956 cr | ₹868 cr | +10.14% | +40.81% |
| Operating profit | ₹223 cr | ₹207 cr | +8.18% | +15.99% |
| Operating margin (%) | 18.94% | 19.22% | — | — |
| Interest | ₹83 cr | ₹68 cr | +22.47% | +155.83% |
| Depreciation | ₹101 cr | ₹85 cr | +18.59% | +88.76% |
| Profit before tax | ₹57 cr | ₹55 cr | +3.28% | -50.22% |
| Tax | ₹19 cr | ₹22 cr | -11.52% | -33.10% |
| Net profit | ₹37 cr | ₹33 cr | +12.99% | -56.00% |
| EPS (₹) | ₹1.04 | ₹1.06 | -1.89% | -46.94% |
Operating margin of 18.94% compares with a Healthcare sector median of 22.54% across 30 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company completed 24 organ transplants, including renal, liver, lung and heart transplants during the quarter.
- The company completed more than 100 robotic surgeries, including advanced orthopaedic procedures, during the quarter.
Guidance & outlook
- The company is focused on regional expansion to establish a dominant presence in target geographies and accelerate new business growth.
Expansion
- The company added 208 beds in Palakkad during Q1 FY27.
- The company completed major infrastructure upgrades, including operating theatre modernization, PET-CT installation and Biplane Cath Lab commissioning.
New initiatives
- The company launched robotic surgery, aesthetic medicine and IVF services at its Vizag unit.
Competition
- The company describes its regional market strategy as focused on establishing a dominant presence in target geographies.
What to watch
- Whether operating margin holds above 18.94% after six consecutive quarterly declines.
- Whether expense growth moves below revenue growth after +10.14% versus +9.76% sequentially.
- Whether interest growth moderates from +155.83% YoY.