KIMS Q2 revenue climbs 40% to Rs 1,344.4 crore year-on-year

Krishna Institute of Medical Sciences Limited reported consolidated revenue from operations of Rs 1,344.4 crore for the quarter ended 30 September 2026, a 40% increase from Rs 960.7 crore a year earlier. The higher revenue came alongside increases in employee, operating, finance and depreciation costs, while half-year investing cash outflow reached Rs 1,026.9 crore.

How much did KIMS revenue grow in Q2?

KIMS reported Q2 revenue from operations of Rs 1,344.4 crore, up from Rs 960.7 crore in the quarter ended 30 September 2025 and from Rs 1,179.5 crore in the preceding quarter ended 30 June 2026. The quarter-on-quarter increase was Rs 164.9 crore, while the year-on-year increase was Rs 383.7 crore.

Other income was Rs 15.6 crore in Q2, taking total income to Rs 1,360 crore, compared with Rs 964.9 crore in the corresponding prior-year quarter. For the half year ended 30 September 2026, revenue from operations rose to Rs 2,925.9 crore from Rs 1,832.3 crore, and total income increased to Rs 2,957.9 crore from Rs 1,843.6 crore.

KIMS operates in one reportable segment, medical and healthcare services, according to the filing. The consolidated results include the holding company, 13 subsidiaries and one associate, rather than representing the standalone parent company’s operations alone.

Which KIMS costs increased during the quarter?

KIMS recorded higher costs in its principal expense lines during Q2. Other expenses rose to Rs 574.6 crore from Rs 383 crore a year earlier, employee benefits expense increased to Rs 231.9 crore from Rs 174.5 crore, and purchases of medical consumables, drugs and surgical instruments rose to Rs 283.6 crore from Rs 203.5 crore.

Finance costs increased to Rs 60.5 crore in Q2 from Rs 45 crore in the prior-year quarter, while depreciation and amortisation rose to Rs 120.7 crore from Rs 66.1 crore. Property, plant and equipment stood at Rs 4,797.7 crore at 30 September 2026, compared with Rs 4,186.2 crore at 31 March 2026.

For the first half, employee benefits expense was Rs 444.5 crore against Rs 325.5 crore a year earlier, other expenses were Rs 1,073.4 crore against Rs 731 crore, finance costs were Rs 148.8 crore against Rs 77.6 crore, and depreciation and amortisation was Rs 221.5 crore against Rs 139.5 crore. These movements show that operating, financing and asset-related expenses all increased alongside revenue.

KIMS also reported a Rs 13.2 crore exceptional gain in Q2 and the first half from the valuation of call options. The call-option agreements relate to the potential acquisition of equity stakes in entities whose hospitals KIMS operates and manages; the group’s share of loss from its associate was Rs 0.4 crore in Q2.

What does KIMS cash flow show about investment spending?

KIMS used Rs 1,026.9 crore in investing activities in the half year ended 30 September 2026, compared with an outflow of Rs 716.5 crore in the prior-year half year. Purchases of property, plant and equipment, intangible assets, capital work-in-progress and capital advances accounted for Rs 654.1 crore of the current-period investing outflow.

Mutual-fund purchases totalled Rs 1,050.1 crore during the six months, while proceeds from mutual-fund sales were Rs 748.6 crore. KIMS also gave loans of Rs 124.7 crore and received loan repayments of Rs 48.3 crore, contributing to the net investing cash use.

Operating activities generated Rs 345 crore of cash in the half year, compared with Rs 284.6 crore a year earlier. Before working-capital changes, operating cash flow was Rs 497.9 crore, but increases in trade receivables of Rs 143.5 crore, inventories of Rs 22.4 crore and other assets of Rs 51.6 crore absorbed cash.

How did KIMS funding and borrowings change?

KIMS generated Rs 679.3 crore from financing activities in the half year ended 30 September 2026, compared with Rs 456.6 crore in the previous corresponding period. The cash-flow statement records Rs 1,475.6 crore of net proceeds from the issue of shares and Rs 150 crore of proceeds from share warrants.

On 19 August 2026, KIMS allotted 7,702,182 convertible warrants to promoters and promoter-group entities at Rs 779 per warrant. The stated issue size was Rs 600 crore, of which KIMS received 25%, or Rs 150 crore, upfront; the balance is receivable upon exercise, and the warrants are exercisable in one or more tranches within 18 months of allotment.

The group repaid Rs 1,071 crore of long-term borrowings during the first half and raised Rs 362.5 crore through long-term borrowings. Non-current borrowings fell to Rs 1,935.1 crore at 30 September 2026 from Rs 2,672.6 crore at 31 March 2026, while current borrowings increased to Rs 594.8 crore from Rs 571.4 crore.

KIMS disclosed that qualified institutional placement proceeds not used for the stated objects at 30 September 2026 were temporarily invested in mutual funds and held in a monitoring account. Its balance sheet showed current mutual-fund investments of Rs 322.4 crore at September-end, compared with Rs 15.1 crore at 31 March 2026.

What changed in the KIMS balance sheet and expansion activity?

KIMS total assets rose to Rs 8,912 crore at 30 September 2026 from Rs 7,758.7 crore at 31 March 2026. Non-current assets increased to Rs 7,435.1 crore from Rs 6,821.3 crore, while current assets rose to Rs 1,476.9 crore from Rs 937.4 crore.

Trade receivables increased to Rs 690.6 crore from Rs 554.2 crore, inventories rose to Rs 119.3 crore from Rs 96.9 crore, and non-current loans increased to Rs 87.6 crore from Rs 13.4 crore. Total equity increased to Rs 4,252.2 crore from Rs 2,558.5 crore over the same period.

Subsequent to the September quarter, KIMS acquired a 51% equity stake in a healthcare company for total cash consideration of Rs 79.5 crore. During the first half, it also entered an operations and management agreement with a medical-services entity, obtained control over hospital operations and accounted for the transaction as a business combination, with Rs 0.3 crore of acquisition-related costs included in other expenses.

Conclusion

KIMS expanded consolidated revenue by 40% year on year in Q2 and increased first-half operating cash generation to Rs 345 crore. At the same time, higher employee costs, other expenses, finance costs and depreciation accompanied the growth, while investment spending lifted the half-year cash outflow from investing activities to Rs 1,026.9 crore.

The next disclosed items to watch are the exercise of the Rs 600 crore warrant issue within 18 months of the 19 August 2026 allotment, the deployment of temporarily invested qualified institutional placement proceeds, and the integration of the 51% stake acquired after the September quarter.