Gujarat Kidney and Super Speciality Limited Q2 revenue rose 195%

Gujarat Kidney and Super Speciality Limited reported Q2 FY27 revenue from operations of Rs 38.09 crore, up 194.6% year-on-year, while earnings before interest, tax, depreciation and amortisation (EBITDA) margin increased to 26.8% from 24.4% in Q1 FY27. The Company attributed the sequential margin improvement to higher revenue and lower other expenses.

How much did the Company’s Q2 FY27 revenue and profit grow?

The Company’s Q2 FY27 revenue from operations rose 194.6% year-on-year to Rs 38.09 crore from Rs 12.93 crore in Q2 FY26, while profit after tax (PAT) increased 129.4% to Rs 6.60 crore from Rs 2.88 crore. Revenue growth therefore exceeded PAT growth during the quarter ended 30 September 2026.

EBITDA increased 99.4% to Rs 10.22 crore in Q2 FY27 from Rs 5.12 crore a year earlier. However, EBITDA margin was 26.8%, compared with 39.6% in Q2 FY26, a decline of 1,281 basis points. A basis point is one-hundredth of a percentage point. Gross profit margin also declined to 87.5% from 89.9%.

Below EBITDA, interest expense increased to Rs 66 lakh from Rs 28 lakh and depreciation rose to Rs 1.52 crore from Rs 90 lakh. Profit before tax still rose 114.0% to Rs 8.62 crore, while tax expense increased 75.6% to Rs 2.03 crore.

Why did the Company’s EBITDA margin improve sequentially?

The Company’s EBITDA margin improved by 239 basis points sequentially because Q2 FY27 revenue rose 11.1% while other expenses declined 5.7%. Revenue from operations reached Rs 38.09 crore from Rs 34.29 crore in Q1 FY27, and EBITDA increased 22.0% from Rs 8.38 crore.

Other expenses fell to Rs 15.35 crore in Q2 FY27 from Rs 16.29 crore in Q1 FY27, even as total income increased 10.6% to Rs 38.68 crore. Total expenditure rose 7.2% to Rs 23.12 crore, below the 11.1% increase in revenue from operations, producing the reported operating-margin expansion.

Employee cost was the offset to lower other expenses, increasing 47.0% sequentially to Rs 7.77 crore from Rs 5.29 crore. The Company said this reflected investment in clinical talent as the network scales. Raw-material costs rose 9.5% to Rs 4.75 crore, while gross profit margin increased 18 basis points from 87.3%.

How did the Company’s first-half profit compare with sales growth?

The Company’s H1 FY27 revenue from operations grew 156.8% to Rs 72.38 crore, but PAT rose 44.0% to Rs 11.92 crore as expenses increased faster than income. H1 denotes the six months ended 30 September 2026, and the Company said H1 revenue represented 88% of FY26 revenue of Rs 82.01 crore.

Total income increased 160.4% to Rs 73.66 crore from Rs 28.29 crore in H1 FY26, while total expenses climbed 246.3% to Rs 58.07 crore from Rs 16.77 crore. Other expenses rose 325.2% to Rs 31.64 crore, employee benefits expense rose 203.0% to Rs 13.06 crore, and consumables, drugs and surgical-items costs increased 237.9% to Rs 9.10 crore.

EBITDA rose 35.2% to Rs 18.59 crore in H1 FY27 from Rs 13.75 crore in H1 FY26. Finance costs increased 186.5% to Rs 1.32 crore and depreciation and amortisation increased 58.7% to Rs 2.96 crore, while profit before tax rose 35.3% to Rs 15.59 crore.

What did the Company disclose about acquisitions and patient volumes?

The Company deployed Rs 16.69 crore towards acquisitions in H1 FY27, and goodwill rose to Rs 107.42 crore at 30 September 2026 from Rs 90.73 crore at 31 March 2026. Newly acquired businesses were consolidated during the period, while non-controlling interest increased to Rs 6.23 crore from Rs 2.22 crore.

The Company recorded 11,040 inpatient department, or IPD, admissions and 78,643 outpatient department, or OPD, visits in H1 FY27. Those volumes were 83% and 82%, respectively, of FY26 full-year volumes. Bed occupancy was about 55%, and average length of stay was about six days.

The network reported 11 multispeciality hospitals, 10 pharmacies and 690 operational beds out of 700 total beds. It operates across nine cities in central Gujarat and combines multispeciality hospitals with in-house diagnostics and pharmacies, offering secondary and tertiary care including renal sciences, urology, cardiology and oncology.

What was the Company’s cash and borrowing position?

The Company reported net cash of Rs 14.88 crore at 30 September 2026, calculated from cash and bank balances of Rs 32.18 crore and borrowings of Rs 17.29 crore, excluding lease liabilities. Total equity, described by the Company as net worth, was Rs 263.64 crore, compared with Rs 252.51 crore at 31 March 2026.

Operating cash flow was positive at Rs 42 lakh in H1 FY27, compared with an outflow of Rs 7.36 crore in H1 FY26. The Company invested Rs 6.23 crore in property, plant and equipment during H1, and property, plant and equipment increased to Rs 31.93 crore at 30 September 2026 from Rs 26.97 crore at 31 March 2026.

Cash and cash equivalents stood at Rs 12.11 crore and bank balances at Rs 20.07 crore at 30 September 2026. Current borrowings rose to Rs 16.10 crore from Rs 13.93 crore at 31 March, while non-current borrowings declined to Rs 1.20 crore from Rs 1.79 crore; lease liabilities totalled Rs 12.97 crore.

Conclusion

The Company’s Q2 FY27 results combine 194.6% year-on-year revenue growth with a sequential EBITDA-margin recovery to 26.8%, as revenue rose 11.1% from Q1 and other expenses declined 5.7%. The H1 comparison shows that expenses grew faster than revenue, limiting PAT growth to 44.0% despite a 156.8% increase in revenue from operations.

The next results will show how the Rs 16.69 crore H1 acquisition deployment and consolidation of newly acquired businesses affect patient utilisation and costs. The Company reported H1 FY27 IPD admissions of 11,040, OPD visits of 78,643 and occupancy of about 55%, while employee cost reached Rs 7.77 crore in Q2 FY27.