KIMS margin falls 5.63 points as profit drops 68.80% YoY
Revenue rose 34.85% YoY, but faster cost growth, higher interest and a higher tax rate cut consolidated net profit to Rs 33.1 cr.
Filed 15 May 2026, 19:11 IST · after market close · Krishna Institute of Medical Sciences Ltd (KIMS)
Key takeaways
- KIMS' consolidated revenue grew +34.85% YoY, but expenses rose +44.95%, narrowing operating margin by 5.63 percentage points to 19.22%.
- Consolidated net profit fell -68.80% YoY as interest expense rose +155.06%, depreciation increased +61.60% and the tax rate climbed 18.78 percentage points.
- The stock fell -5.88% after the results, a larger move than its 1.81% median absolute reaction to the past eight results.
Price around the results
Revenue growth was absorbed by faster cost growth
Consolidated revenue increased +34.85% YoY and +7.71% QoQ, but expenses grew faster at +44.95% YoY and +8.68% QoQ. Operating profit therefore rose only +4.29% YoY and +3.82% QoQ, while operating margin narrowed by 5.63 percentage points YoY and 0.72 percentage points QoQ. Sequentially, the margin pressure persisted even as revenue reached Rs 1,074.6 cr.
Higher finance costs and tax rate drove the profit decline
Interest expense rose +155.06% YoY and +19.89% QoQ, while depreciation increased +61.60% YoY and +8.01% QoQ. The tax rate rose to 39.60%, up 18.78 percentage points YoY and 15.26 percentage points QoQ, further reducing profit after tax. Other income fell -90.85% YoY to Rs 1.4 cr and represented only 2.55% of pre-tax profit, so earnings received little support from non-operating income.
Operating margin is below peers after four consecutive declines
The 19.22% operating margin was 4.16 percentage points below the 23.38% median for 48 Healthcare peers that had reported the quarter. KIMS ranked 11th from the bottom on this measure. Margin has declined for four straight quarters, from 24.85% in Q4FY25 to 19.22% in Q4FY26.
Management links its strategy to regional expansion
Management said regional market leadership would be pursued through focused expansion in target geographies and faster development of new businesses. The company also said it had introduced an AI-based financial counselling tool to help patients assess surgery costs.
The initial market reaction was unusually negative
The stock fell -5.88% on the first reaction day and underperformed the market by 5.91%. That was notably weaker than the 1.81% median absolute move across its past eight result reactions. The reaction was -0.64% after five sessions, before turning +2.62% after 15 sessions and +9.11% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,075 cr | ₹998 cr | +7.71% | +34.85% |
| Other income | ₹1 cr | ₹5 cr | -73.08% | -90.85% |
| Expenses | ₹868 cr | ₹799 cr | +8.68% | +44.95% |
| Operating profit | ₹207 cr | ₹199 cr | +3.82% | +4.29% |
| Operating margin (%) | 19.22% | 19.94% | — | — |
| Interest | ₹68 cr | ₹57 cr | +19.89% | +155.06% |
| Depreciation | ₹85 cr | ₹79 cr | +8.01% | +61.60% |
| Profit before tax | ₹55 cr | ₹69 cr | -20.12% | -59.10% |
| Tax | ₹22 cr | ₹17 cr | +29.94% | -22.22% |
| Net profit | ₹33 cr | ₹52 cr | -36.22% | -68.80% |
| EPS (₹) | ₹1.06 | ₹1.33 | -20.30% | -58.27% |
Operating margin of 19.22% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.88% | -5.91% |
| Next session | -2.70% | — |
| 5 sessions | -0.64% | -2.28% |
| 15 sessions | +2.62% | — |
| 30 sessions | +9.11% | — |
Volume on the results session was 0.78× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- KIMS says regional market leadership will come from focused expansion in target geographies and accelerating new business growth.
New initiatives
- KIMS has introduced an AI financial counselling tool to help patients with surgery costings.
What to watch
- Whether expense growth falls below the +7.71% sequential revenue growth rate after rising +8.68% in Q4FY26.
- Whether the tax rate moves below 39.60% and interest expense below Rs 68.1 cr.