KIMS plans ₹1,500 cr QIP as profit slides 69% on expansion drag
Revenue grew 35% to ₹1,084 cr, but new units in Bangalore, Thane, and Nasik burned ₹32 cr in EBITDA this quarter.
— 1 earlier story on Krishna Institute of Medical Sciences Ltd →What's new
- Board approved a ₹1,500 cr QIP to trim a debt pile exceeding ₹3,000 cr.
- New hospitals contributed ₹224 cr in revenue but posted an aggregate EBITDA loss of ₹32 cr.
- Management targets break-even for new units within 12-18 months, pending insurance approvals.
Why this matters
The company is in an aggressive growth phase where revenue gains are currently eclipsed by the high cost of new hospital ramp-ups. The QIP is a necessary move to reset a balance sheet carrying over ₹3,000 crore in debt as the firm builds out its footprint across five states.
What we're watching
- Timeline and pricing of the ₹1,500 cr QIP.
- Progress on insurance empanelment for the Bangalore, Thane, and Nasik units.
- Whether EBITDA margins can recover from their current 19.9% level.
The full read
Krishna Institute of Medical Sciences (KIMS) finished Q4 FY26 with a stark disconnect between top-line growth and bottom-line health. While revenue climbed 35% to ₹1,084 crore, profit plunged 69% to ₹33 crore as the company absorbed an EBITDA loss of ₹32 crore from its recently opened hospitals in Bangalore, Thane, and Nasik. These new units represent a significant drag on margins, which slipped to 19.9% this quarter. To clear the runway for expansion into Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, and Telangana, KIMS is tapping the market for a ₹1,500 crore QIP. The priority is to deleverage a balance sheet burdened by over ₹3,000 crore in debt. Management expects the new hospitals to turn profitable within 12-18 months, though success hinges entirely on securing insurance empanelment. Until those approvals land, the high overheads of the expansion strategy will continue to weigh on the company's profitability.
Krishna Institute of Medical Sciences Ltd
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on KIMS →- 22 May 2026 · 2:40 PM IST KIMS plans ₹1,500 cr QIP as profit slides 69% on expansion drag
- 28d ago KIMS promoters inject ₹600 cr via warrants to retire debt, fund expansion