Gujarat Kidney Q2 revenue rises 195%, EBITDA margin falls

Gujarat Kidney and Super Speciality Limited reported revenue from operations of Rs 38.09 crore in Q2 FY27, up 194.6% from Rs 12.93 crore a year earlier, but EBITDA margin declined to 26.8% from 39.6%. For the quarter ended 30 September 2026, Gujarat Kidney’s revenue growth outpaced growth in EBITDA and profit after tax.

Why did Gujarat Kidney’s Q2 revenue rise 195%?

Gujarat Kidney’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 total income increased 197.1% to Rs 38.68 crore. Revenue also rose 11.1% sequentially from Rs 34.29 crore in Q1 FY27, with other income of Rs 59 lakh compared with Rs 9 lakh a year earlier.

The presentation links the larger revenue base to scale-led growth and consolidation of a newly acquired business in H1 FY27, although it does not quantify the acquired business’s contribution to revenue. Gujarat Kidney reported 11 multispeciality hospitals, 10 pharmacies and 690 operational beds across nine central Gujarat cities, and said it deployed Rs 16.69 crore towards acquisitions during H1 FY27.

How did Gujarat Kidney’s Q2 profitability change?

Gujarat Kidney’s EBITDA rose 99.4% year-on-year to Rs 10.22 crore in Q2 FY27, but EBITDA margin declined by 1,281 basis points to 26.8% from 39.6%. A basis point is one-hundredth of a percentage point. Profit after tax, or PAT, increased 129.4% to Rs 6.60 crore, while PAT margin fell to 17.3% from 22.2%.

The sequential comparison moved in the other direction. EBITDA margin rose from 24.4% in Q1 FY27 to 26.8% in Q2 FY27, while PAT margin rose from 15.5% to 17.3%. EBITDA increased 22.0% from Rs 8.38 crore in Q1 and PAT increased 24.0% from Rs 5.32 crore, as Q2 revenue grew faster than total expenditure.

What costs reduced Gujarat Kidney’s year-on-year margin?

Gujarat Kidney’s employee cost increased 249.0% year-on-year to Rs 7.77 crore in Q2 FY27, exceeding the 194.6% revenue increase, while other expenses rose 258.8% to Rs 15.35 crore. Total expenditure consequently increased 255.4% to Rs 23.12 crore from Rs 6.50 crore in Q2 FY26.

Gross profit increased 186.7% to Rs 33.34 crore, but gross margin declined to 87.5% from 89.9% as raw-material costs increased 265.4% to Rs 4.75 crore. Interest expense rose to Rs 66 lakh from Rs 28 lakh and depreciation increased to Rs 1.52 crore from Rs 90 lakh, while tax expense rose 75.6% to Rs 2.03 crore.

Gujarat Kidney reported some sequential cost leverage in Q2 FY27. Other expenses fell 5.7% from Rs 16.29 crore in Q1 FY27 to Rs 15.35 crore despite the 11.1% rise in revenue, while total expenditure rose 7.2%. The company attributed the 240-basis-point sequential EBITDA-margin increase to operating leverage, even as employee cost rose 47.0% from Q1 as it invested in clinical talent.

How did Gujarat Kidney perform in H1 FY27?

Gujarat Kidney generated H1 FY27 revenue from operations of Rs 72.38 crore, up 156.8% from Rs 28.19 crore in H1 FY26, and equal to 88% of FY26 revenue of Rs 82.01 crore. H1 EBITDA increased 35% to Rs 18.59 crore from Rs 13.75 crore, while PAT rose 44.0% to Rs 11.92 crore from Rs 8.28 crore.

The difference between revenue and earnings growth was reflected in H1 expenses, which rose 246.3% to Rs 58.07 crore. Other expenses increased 325.2% to Rs 31.64 crore, employee-benefit expense rose 203.0% to Rs 13.06 crore, and costs of medical consumables, drugs and surgical items increased 237.9% to Rs 9.10 crore.

Clinical volumes were also higher in the first half. Gujarat Kidney reported 11,040 inpatient department admissions and 78,643 outpatient department visits in H1 FY27, equivalent to 83% and 82% of FY26 full-year volumes, respectively. Bed occupancy was about 55% and average length of stay was about six days, while the presentation reported 4,432 procedures in its operating highlights.

What does Gujarat Kidney’s balance sheet show after acquisitions?

Gujarat Kidney reported total equity of Rs 263.64 crore at 30 September 2026, compared with Rs 252.51 crore at 31 March 2026, while total assets increased to Rs 326.72 crore from Rs 297.64 crore. Goodwill rose to Rs 107.42 crore from Rs 90.73 crore over the six months, and non-controlling interests increased to Rs 6.23 crore from Rs 2.22 crore.

Management described the balance sheet as net cash, reporting cash and bank balances of Rs 32.18 crore against borrowings of Rs 17.29 crore, excluding lease liabilities, for net cash of Rs 14.88 crore. Current borrowings increased to Rs 16.10 crore from Rs 13.93 crore, while non-current borrowings declined to Rs 1.20 crore from Rs 1.79 crore.

Operating cash flow was positive at Rs 42 lakh in H1 FY27, compared with negative Rs 7.36 crore in H1 FY26, alongside Rs 6.23 crore invested in property, plant and equipment. Property, plant and equipment stood at Rs 31.93 crore at 30 September 2026, up from Rs 26.97 crore at 31 March 2026, while right-of-use assets declined to Rs 10.10 crore from Rs 10.81 crore.

Conclusion

Gujarat Kidney’s Q2 FY27 results show that consolidation and network expansion produced a substantially larger revenue base, with revenue rising 194.6% to Rs 38.09 crore. However, EBITDA growth of 99.4% and PAT growth of 129.4% trailed revenue growth as employee, raw-material and other expenses increased faster than sales, leaving both EBITDA and PAT margins below Q2 FY26 levels.

The next reported periods will indicate whether Gujarat Kidney can sustain the Q2 sequential EBITDA-margin increase from 24.4% to 26.8% while continuing its stated inorganic expansion. Management’s disclosed metrics to watch include the integration of newly acquired businesses, goodwill of Rs 107.42 crore, about 55% bed occupancy and the continuation of positive operating cash flow after Rs 42 lakh in H1 FY27.