Kerala Ayurveda Limited plans three clinics by February 2027

Kerala Ayurveda Limited plans to open three clinics in San Jose, Eindhoven and India by February 2027, alongside two resort projects, after Global Health Services excluding the US increased 17.9% year on year to Rs 11.26 crore in Q2 FY27. KAL also targets Rs 150 crore of FY27 revenue from operations.

Where will KAL open its three clinics?

KAL plans clinics in San Jose, California, Eindhoven and India, with all three scheduled to open by February 2027. Eindhoven would be KAL's first clinic in Europe, extending its Global Health Services footprint beyond the markets identified in its Q2 FY27 results.

The San Jose location would add to KAL's California operations, where the US Academy and Wellness Center generated Rs 6.34 crore in Q2 FY27, down 10.4% from Rs 7.08 crore in Q2 FY26. KAL said Academy revenue declined 16.6% because of lower certification enrolments amid US macroeconomic conditions and a postponed India immersion.

The India flagship clinic follows growth at KAL's domestic clinics, which increased 18% in Q2 FY27 under the Clinic Growth Model. Global Health Services excluding the US generated Rs 20.45 crore in H1 FY27, up 13.3% from Rs 18.05 crore in H1 FY26, providing the reported context for the planned additions.

What resort projects and systems changes does KAL have planned?

KAL has two resorts in its pipeline: a second The Health Village property in Karwar, Karnataka, planned for November 2026, and an Ayurvedagram Bali resort planned over Q3. The announcement does not disclose the Bali resort's opening date, capacity, investment or revenue contribution.

The Karwar plan follows 36% year-on-year growth at The Health Village in Q2 FY27, which KAL attributed to higher capacity fill rates. Ayurvedagram grew 12% in the same quarter, but KAL did not provide separate sales targets for either the Karwar property or the Bali project.

KAL also began transitioning to ERP-Next from October 2026 to improve real-time visibility across finance, inventory and operations. The systems initiative comes after KAL cited working-capital challenges in H1 FY27 and stock-availability constraints in India Medical Sales, although the release gives no implementation cost or savings estimate.

Which businesses are supporting KAL's expansion plans?

KAL's Global E-Product, Global Health Services excluding the US, and India Medical Sales businesses grew in Q2 FY27, while its US Academy and Wellness Center declined. Revenue from operations rose 2.6% to Rs 35.75 crore from Rs 34.84 crore in Q2 FY26, as growth in three segments more than offset the US segment's fall.

Global E-Product revenue reached Rs 12.90 crore in H1 FY27, up 26.5% from Rs 10.20 crore in H1 FY26. KAL said India E-Product sales rose 12.7% in Q2 FY27 despite reduced marketing expenditure, after it shifted spending from paid search to lower-cost channels; US E-Product sales rose 27.2%, led by Amazon US.

India Medical Sales reported Rs 21.17 crore in H1 FY27, an 11.5% increase from Rs 18.99 crore a year earlier. KAL attributed its 13.4% Q2 FY27 growth to broad-based regional gains and institutional sales, despite stock availability challenges linked to working capital.

Can KAL meet its FY27 revenue and EBITDA targets?

KAL says it remains on track for Rs 150 crore of FY27 revenue from operations, 15% growth year on year, and monthly operating earnings before interest, tax, depreciation and amortisation, or EBITDA, breakeven during H2 FY27. These are management targets rather than reported results, and KAL also aims to halve its full-year adjusted EBITDA loss from the previous year.

Revenue from operations increased 8.7% to Rs 68.9 crore in H1 FY27 from Rs 63.5 crore in H1 FY26. Total income nevertheless fell 6.3% to Rs 69.9 crore because the prior-year first half included Rs 9.5 crore of one-time land-sale income and foreign-exchange benefits.

KAL's adjusted EBITDA loss narrowed to Rs 4.6 crore in H1 FY27 from Rs 8.5 crore in H1 FY26, an improvement of Rs 3.9 crore. In Q2 FY27, operating EBITDA loss narrowed sequentially by Rs 1.05 crore, while corporate staff costs fell Rs 97 lakh, or 7% quarter on quarter, after consolidation of roles.

Digital marketing spending declined Rs 27 lakh, or 17% sequentially, in Q2 FY27, and customer discounting fell Rs 7 lakh. KAL said these cost controls and margin measures were intended to offset pressures from delayed debt raising, higher input costs and international-travel postponements affecting wellness retreats.

What financing pressures and funding actions has KAL disclosed?

KAL reported a profit-before-tax loss of Rs 6.4 crore in Q2 FY27, with promoter-loan interest of Rs 2.58 crore contributing to its interest burden. The company converted Rs 12.5 crore of total promoter loans in October 2026, but the release does not state the balance of such loans after conversion.

KAL has also started engaging investors for a potential fund raise, with details to be shared later. The company did not disclose the proposed amount, instrument, timing, valuation or use of proceeds, while its announcement identified delayed debt-raising closure as one factor that had deferred capital-expenditure-led revenue projects.

The US Academy and Wellness Center remains a point of execution risk within the expansion programme. Its H1 FY27 revenue was Rs 13.69 crore, broadly unchanged from Rs 13.72 crore in H1 FY26, while Wellness Center Q2 FY27 growth slowed to 4.3% because of Vaidya availability amid H-1B disruptions.

Conclusion

KAL's disclosed plan combines three clinics across the US, Europe and India with a second The Health Village property in Karwar and an Ayurvedagram Bali resort. The planned footprint follows Q2 FY27 growth in Global Health Services excluding the US and India Medical Sales, while the US Academy and Wellness Center remained below its prior-year quarterly revenue.

The next disclosed milestones are the planned November 2026 opening of the Karwar resort, completion of the ERP-Next transition that began in October 2026, and the clinic openings targeted by February 2027. Management's FY27 objectives of Rs 150 crore in revenue from operations and monthly operating EBITDA breakeven in H2 FY27 remain dependent on execution, funding and the headwinds identified in the release.