KIMS Hospitals Q2 revenue rises 41.3% as H1 PAT falls 28%

KIMS Hospitals reported total revenue of Rs 1,363 crore in the second quarter of financial year 2027 (Q2 FY27), up 41.3% year on year, while first-half profit after tax (PAT) fell 28.0% to Rs 113.1 crore as earnings before interest, tax, depreciation and amortisation (EBITDA) margin declined to 20.3% from 22.1%.

What drove KIMS revenue growth in Q2 FY27?

KIMS grew Q2 FY27 revenue through higher patient volumes, higher revenue measures and a larger operating-bed base. Operating revenue rose 39.9% year on year to Rs 1,344.4 crore from Rs 960.7 crore in Q2 FY26, while other income increased to Rs 18.6 crore from Rs 4.2 crore. Total revenue therefore reached Rs 1,363 crore, compared with Rs 964.9 crore a year earlier.

Inpatient, or IP, volume increased 27.0% to 81,668 in Q2 FY27, while outpatient, or OP, volume rose 23.3% to 731,010. Average revenue per occupied bed, or ARPOB, rose 14.9% to Rs 48,277, and average revenue per patient, or ARPP, increased 9.9% to Rs 1,65,577. These volume and revenue-per-patient measures rose alongside total revenue growth of 41.3%.

KIMS had 5,605 operational beds in Q2 FY27, compared with 4,560 in Q2 FY26, and occupied beds increased to 3,045 from 2,510. Occupancy, calculated by KIMS as occupied beds divided by operational beds, was 54.3%, versus 55.0% a year earlier. The 535 increase in occupied beds did not fully match the 1,045 increase in operational beds, resulting in the 0.7-percentage-point occupancy decline.

Why did KIMS first-half profit fall despite revenue growth?

KIMS reported that first-half EBITDA increased but profit before tax (PBT) and PAT declined, while the presentation does not provide a cost or finance-item bridge below EBITDA. In H1 FY27, total revenue increased 38.8% to Rs 2,558.9 crore and EBITDA rose 27.2% to Rs 518.7 crore. PBT fell 22.5% to Rs 163.2 crore and PAT declined 28.0% to Rs 113.1 crore.

The reported margin measures show that EBITDA rose more slowly than revenue in H1 FY27. EBITDA margin decreased 1.8 percentage points to 20.3% from 22.1%, PBT margin fell to 6.4% from 11.4%, and PAT margin declined to 4.4% from 8.5%. Thus, revenue increased by Rs 715.3 crore, whereas PAT was Rs 43.9 crore lower than in H1 FY26.

The notes state that PBT and PAT include a net fair-value call-option amount of Rs 13.2 crore in Q2 FY27, compared with a Rs 30 lakh loss in Q2 FY26. They also include share of profit from an associate, net of tax, of Rs 1 crore in Q1 FY27 and Rs 70 lakh in Q2 FY27. The presentation does not separately quantify how these items affected the H1 change in PBT or PAT.

How did KIMS activity and capacity change in H1 FY27?

KIMS expanded capacity and treated more patients in H1 FY27, although group occupancy was lower than in H1 FY26. Bed capacity increased to 7,459 from 6,114 and operational beds rose to 5,605 from 4,560. Occupied beds averaged 2,903, up from 2,394, but occupancy slipped to 51.8% from 52.5%.

IP volume increased 26.8% to 154,161 in H1 FY27 and OP volume increased 25.7% to 1,389,627. ARPOB rose 12.4% to Rs 47,768, while ARPP increased 8.5% to Rs 1,64,635. Average length of stay, or ALOS, decreased to 3.45 days from 3.57 days as total revenue grew 38.8%.

The regional data show differing utilisation trends. Andhra Pradesh occupancy rose to 59.6% in H1 FY27 from 57.6% in H1 FY26, with occupied beds increasing to 1,163 from 1,044. Telangana occupancy fell to 46.8% from 57.6% as operational beds rose to 2,009 from 1,559, while Maharashtra occupancy increased to 58.1% from 46.0%.

How did KIMS Q2 earnings compare with Q1 and last year?

KIMS improved sequentially in Q2 FY27, but quarterly EBITDA, PBT and PAT margins remained below Q2 FY26 levels. Total revenue increased 14.0% quarter on quarter from Rs 1,195.9 crore in Q1 FY27 to Rs 1,363 crore, while EBITDA rose 16.3% from Rs 239.8 crore to Rs 278.9 crore. EBITDA margin improved to 20.5% from 20.1% in Q1 FY27 but was below 21.6% in Q2 FY26.

PBT rose 88.3% sequentially to Rs 106.6 crore from Rs 56.6 crore, and PAT increased 102.4% to Rs 75.7 crore from Rs 37.4 crore. Compared with Q2 FY26, PBT rose 10.1% and PAT rose 5.1%, below the 41.3% rise in total revenue. PBT margin was 7.8% versus 10.0%, while PAT margin was 5.6% versus 7.5% a year earlier.

Basic and diluted earnings per share were both Rs 1.81 in Q2 FY27, compared with Rs 1.04 in Q1 FY27 and Rs 1.67 in Q2 FY26. For H1 FY27, both basic and diluted earnings per share were Rs 2.86, down from Rs 3.64 in H1 FY26. That 21.4% decline in first-half per-share earnings accompanied the 28.0% fall in PAT.

What does KIMS report before Ind AS 116?

KIMS reported higher EBITDA before Indian Accounting Standard 116, or Ind AS 116, in Q2 and H1 FY27, but its growth was below total-revenue growth. The Ind AS 116 amount was Rs 28.7 crore in Q2 FY27, up from Rs 17.7 crore in Q1 FY27 and Rs 7.5 crore in Q2 FY26. In H1 FY27, the amount was Rs 46.4 crore, compared with Rs 13.4 crore in H1 FY26.

On KIMS's EBITDA pre-Ind AS measure, Q2 FY27 EBITDA was Rs 250.2 crore, up 24.6% from Rs 200.7 crore in Q2 FY26. H1 FY27 EBITDA before Ind AS 116 was Rs 472.3 crore, a 19.7% increase from Rs 394.5 crore. Both rates were below the corresponding total-revenue increases of 41.3% in Q2 and 38.8% in H1.

Regional EBITDA figures also differed materially in H1 FY27. Telangana generated EBITDA of Rs 373.4 crore on revenue of Rs 1,325.3 crore, for a 28.2% margin, while Andhra Pradesh reported Rs 111.6 crore on Rs 551.7 crore, or 20.2%. Maharashtra reported Rs 40.3 crore of EBITDA after a Rs 16.1 crore loss in H1 FY26, whereas Karnataka's EBITDA loss narrowed to Rs 24.6 crore from Rs 25.2 crore.

Conclusion

KIMS combined higher Q2 and first-half revenue with a lower first-half PAT outcome. Revenue rose 38.8% to Rs 2,558.9 crore in H1 FY27, supported by 26.8% IP-volume growth, 25.7% OP-volume growth and a 12.4% increase in ARPOB. However, EBITDA margin fell to 20.3%, and PBT and PAT declined to Rs 163.2 crore and Rs 113.1 crore, respectively.

The next reported issue to watch is the utilisation and earnings effect of KIMS's expansion plan. Management has identified adding more than 700 beds through greenfield projects, acquisitions and operations-and-maintenance opportunities, after capacity reached 7,459 beds and operational beds reached 5,605 in H1 FY27. Future disclosures on occupancy, EBITDA margin and PBT will show how the larger base is developing.