KIMS newer clusters turn EBITDA-positive as occupancy rises

KIMS Hospitals moved its Maharashtra and Kerala clusters to earnings before interest, tax, depreciation and amortisation (EBITDA)-positive results in H1 FY27, reporting Rs 40.3 crore and Rs 18 crore respectively after prior-year losses. Q2 FY27 occupancy rose to 62.6% in Maharashtra and 48.1% in Kerala as both clusters added patients and revenue.

How did KIMS’s Maharashtra and Kerala clusters perform in H1 FY27?

KIMS’s Maharashtra and Kerala clusters both changed from negative EBITDA in H1 FY26 to positive EBITDA in H1 FY27. Maharashtra revenue increased to Rs 329.4 crore from Rs 194.9 crore, while EBITDA changed from a Rs 16.1 crore loss to Rs 40.3 crore. Kerala revenue increased to Rs 160.9 crore from Rs 76.5 crore, and EBITDA changed from a Rs 1.7 crore loss to Rs 18 crore.

The margin movement accompanied the revenue growth in both regions. Maharashtra’s EBITDA margin changed to 12.2% in H1 FY27 from negative 8.3% a year earlier, while Kerala’s changed to 11.2% from negative 2.2%. The cluster data cover Nagpur, Nashik and Thane in Maharashtra, and Kannur, Kollam and Palakkad in Kerala, rather than only the recently ramped hospitals.

KIMS also reported positive cluster EBITDA in Q2 FY27. Maharashtra generated Rs 179 crore of revenue and Rs 29 crore of EBITDA, compared with revenue of Rs 111.8 crore and a Rs 9.6 crore EBITDA loss in Q2 FY26. Kerala generated Rs 83.3 crore of revenue and Rs 10.5 crore of EBITDA, compared with Rs 42.5 crore of revenue and Rs 70 lakh of EBITDA a year earlier.

Which KIMS hospitals became EBITDA-positive during the ramp-up?

KIMS reported positive Q2 FY27 EBITDA at Nashik, Thane, Kollam and Palakkad. Nashik recorded Rs 2.19 crore of EBITDA on Rs 26.84 crore of revenue, Thane reported Rs 2.97 crore on Rs 64.54 crore, Kollam generated Rs 1.85 crore on Rs 22.71 crore, and Palakkad recorded Rs 3.06 crore on Rs 25.94 crore.

Nashik’s EBITDA changed from a Rs 6.47 crore loss in Q2 FY26 to positive Rs 1.08 crore in Q1 FY27 and Rs 2.19 crore in Q2 FY27. Thane’s path took an additional quarter: its EBITDA loss narrowed from Rs 15 crore in Q2 FY26 to Rs 7.99 crore in Q1 FY27 before turning positive in Q2 FY27. Thane revenue rose from Rs 29.81 crore to Rs 64.54 crore over the year-on-year comparison.

Kollam changed from a Rs 2.11 crore EBITDA loss in Q2 FY26 to positive EBITDA in both disclosed FY27 quarters. Palakkad’s disclosure starts in Q1 FY27, when it generated Rs 20.31 crore of revenue and Rs 70 lakh of EBITDA; revenue then increased to Rs 25.94 crore and EBITDA to Rs 3.06 crore in Q2 FY27. Kannur was already EBITDA-positive in Q2 FY26 and reported Q2 FY27 EBITDA of Rs 5.61 crore on Rs 34.7 crore of revenue.

What operating measures accompanied KIMS’s cluster turnaround?

KIMS’s Maharashtra turnaround coincided with higher occupancy and inpatient activity despite additional operational beds. Operational beds increased to 695 in Q2 FY27 from 637 in Q2 FY26, while occupied beds rose to 435 from 314. Occupancy, defined by KIMS as occupied beds divided by operational beds, therefore increased to 62.6% from 49.3%, and inpatient volume rose to 10,536 from 7,552.

Maharashtra’s outpatient volume was 76,712 in Q2 FY27, compared with 78,390 a year earlier. However, average revenue per occupied bed increased to Rs 44,595 from Rs 38,323, while average revenue per patient rose to Rs 1,69,479 from Rs 1,46,759. Average length of stay moved to 3.80 days from 3.83 days.

Kerala added 208 operational beds, reaching 609 in Q2 FY27 from 401 in Q2 FY26. Occupied beds increased to 293 from 169, lifting occupancy to 48.1% from 42.1% even with the expanded capacity. Inpatient volume increased to 8,425 from 4,729 and outpatient volume to 1,09,157 from 56,469.

Kerala’s average revenue per occupied bed increased to Rs 30,470 in Q2 FY27 from Rs 27,027 in Q2 FY26. Average revenue per patient increased to Rs 97,513 from Rs 88,708, while average length of stay declined to 3.20 days from 3.28 days. These measures accompanied Q2 EBITDA of Rs 10.5 crore, compared with Rs 70 lakh a year earlier.

How material are KIMS’s Maharashtra and Kerala clusters to group results?

KIMS reported that Maharashtra accounted for 12.9% of group H1 FY27 revenue and 7.8% of group EBITDA, while Kerala accounted for 6.3% of revenue and 3.5% of EBITDA. Together, the clusters represented 19.2% of group revenue and 11.3% of group EBITDA based on KIMS’s stated mix percentages. Telangana remained the largest contributor, with 51.8% of revenue and 72% of EBITDA.

At group level, KIMS reported H1 FY27 revenue of Rs 2,558.9 crore, up from Rs 1,843.6 crore in H1 FY26. Group EBITDA increased to Rs 518.7 crore from Rs 407.9 crore, but the EBITDA margin moved to 20.3% from 22.1%. The newer Maharashtra and Kerala clusters therefore contributed positive EBITDA during a period when the group margin was lower year on year.

KIMS disclosed different accreditation positions across the ramp-up units. The National Accreditation Board for Hospitals and Healthcare Providers (NABH) status is listed as in pipeline for Kannur, Kollam and Nashik, while Palakkad and Thane are NABH-accredited. The disclosed clinical additions include a first swap kidney transplant in North Maharashtra at Nashik, a renal transplant at Palakkad, and Linear EBUS-TBNA, a real-time ultrasound-guided needle aspiration procedure, at Kollam.

Conclusion

KIMS’s H1 FY27 disclosures show that Maharashtra and Kerala both crossed into positive cluster EBITDA after losses in H1 FY26. The change was supported by higher revenue, occupied beds and occupancy, while Nashik, Thane, Kollam and Palakkad each reported positive EBITDA in Q2 FY27. Kannur remained positive through the reported periods.

The next issue to watch is whether the units retain positive EBITDA as Maharashtra operates 695 beds and Kerala operates 609 beds. KIMS also lists NABH accreditation as in pipeline for Kannur, Kollam and Nashik, while the hospitals continue adding transplant, respiratory and specialised clinical services disclosed in the presentation.