KRM Ayurveda Limited FY26: Services-Led Shift Drives Margin Expansion

KRM Ayurveda Limited reported a sharp step-up in profitability in FY26, alongside a meaningful shift in its revenue mix toward healthcare services. For the year ended March 2026, revenue from operations stood at 101.69 crore, up 32.84% year on year. EBITDA rose faster at 31.19 crore, up 62.59%, lifting the EBITDA margin to 30.60%. Profit after tax reached 20.12 crore, up 79.42%, with PAT margin at 19.79%.

The company positions itself as an integrated Ayurveda-led healthcare platform, combining hospitals and clinics with tele-consultation, in-house product manufacturing, and D2C distribution. In FY26, that integration started to show up clearly in the financial mix. The presentation disclosed that services contributed 53.8% of revenue, while products contributed 46.2%. This is a notable change from FY25, when products were shown as 64.3% of revenue and services 35.7%. The management commentary on the call linked margin improvement to the expanding services mix, higher ticket sizes for hospital treatments, and lower marketing intensity for services.

FY26 performance and H2 momentum

The company’s H2 FY26 numbers showed stronger margins than the full year. For H2 FY26, revenue from operations was 53.33 crore, up 30.59% year on year. EBITDA for the half year was 17.87 crore, up 102.14%, and PAT was 11.90 crore, up 148.84%. H2 margins were higher, with EBITDA margin at 33.51% and PAT margin at 22.31%.

Management attributed the performance to operating leverage and what it described as improved revenue quality as services scaled. In the call, the accounts head also stated that H2 outperformed H1 sequentially, with revenue up 10.3%, EBITDA up 34.9%, and PAT up 44.7%. While the documents do not provide a detailed bridge between H1 and H2, the reported H2 margin improvement suggests a stronger contribution from higher-margin service activity.

What changed: services scaling and a broader footprint

KRM Ayurveda’s operations span hospitals, clinics, tele-consultation, and product sales. As of March 2026, the company disclosed a network of six hospitals and eight clinics with 223 beds. Hospital locations named in the presentation include Delhi, Gurugram, Jaipur (two hospitals), Udaipur, and Lucknow. It also listed specialty clinics in Bengaluru, Patna, Mumbai, Lucknow, and Noida.

Operational metrics disclosed include a 69% bed occupancy rate and an average revenue per occupied bed (ARPOB) of around 8,400 for FY26. On the call, management further clarified that older hospitals operate above 90% occupancy, while newer hospitals including Jaipur, Lucknow, and Udaipur are at about 35% to 40% occupancy. This split matters because it indicates that part of the existing base is still in the ramp-up phase.

The company also provided staffing indicators. The presentation cited 40 plus physicians and 71 plus therapists, while the call referenced 40 doctors and 71 trained therapists, with additional hiring planned. These disclosures support the operational claim of being more than a single-doctor or single-location model.

Strategy: telemedicine, clinics, beds, and a luxury format

The next phase of the company’s growth strategy is expansion-led and is repeatedly framed as ecosystem-driven. The presentation outlines three major growth themes: digital health expansion, expansion to more locations, and medical tourism. During the call, management added more granular direction on clinics, beds, and an upcoming luxury wellness hospital.

A key stated investment area is telemedicine. The presentation describes a 500-seated telemedicine marketing team and an enhanced platform with AI-driven patient management systems. In Q&A, management said the 500-seater telemedicine center is expected to become operational over the next one to one-and-a-half years. It also stated that once this setup becomes operational, it expects at least double the revenue from products and services from the backend versus current center capacity. The call framed telemedicine as the integrated acquisition and follow-up engine that drives both product and services conversion.

The second stated lever is clinic expansion. Management said it is planning to add 30 clinics in the current year and around 100 clinics over the next three years, describing them as super-specialty clinics operating with SOPs and protocol-driven systems. Locations mentioned include metros like Mumbai, Delhi, and Bangalore and state capitals such as Chandigarh, Dehradun, and Pune. It also referenced openings in Janakpuri and Dwarka and a specialty setup in Faridabad.

The third lever is bed expansion. In response to an investor question, management stated it is planning approximately 1,500 to 2,000 beds over the next three years on a pan-India basis. For the current year, it stated an intent to expand from about 235 beds to about 500 beds. It also said an additional 100 beds were finalized and that an agreement was completed for another 100-bed hospital in Gurugram, subject to government formalities.

A fourth initiative is a luxury wellness hospital format. Management said it is finalizing an initial 25-bed luxury facility in Delhi, with expansion capacity, aimed at patients seeking higher-end infrastructure. The reason cited was that the current network largely caters to middle-class and upper-middle-class patients, while the company receives queries from patients seeking a different infrastructure and higher ticket-size stays. Management said it is currently unable to serve these leads and wants to capture that segment.

Products: in-house manufacturing and planned launches

KRM Ayurveda also operates an Ayurvedic products manufacturing unit and sells through tele-consultation and physical centers. The presentation highlights a GMP and ISO-certified facility in Kundli, Haryana, and indicates that the company manufactures its own oils and medicines rather than using third-party purchases.

In the call, management stated it has around 80 products and 300 approved SKUs that it plans to launch gradually with new packaging and bundles. It also stated that 15 products in the food supplement category were expected to be launched in the next 15 to 20 days from the call date, and that an e-commerce platform launch was upcoming with around 20 products finalized.

Investors raised concerns about product growth, noting that product revenue appeared relatively stable while services expanded sharply. Management responded that product sales come through telemedicine and through the hospitals and clinics, and therefore product revenue is expected to rise as the physical footprint expands.

Key takeaways

KRM Ayurveda’s FY26 results show a clear services-led shift. Revenue rose 32.84% to 101.69 crore, while EBITDA and PAT grew faster, lifting margins to 30.60% and 19.79% respectively. The presentation explicitly frames this as a de-risking of revenue, with services at 53.8% and products at 46.2% in FY26.

The company’s forward narrative is expansion heavy. Management spoke about at least 50% revenue growth, plans to move to about 500 beds in the current year, a longer-term plan of 1,500 to 2,000 beds over three years, and a 500-seater telemedicine center to be built over the next one to one-and-a-half years. It also discussed a new luxury 25-bed facility in Delhi and a broader clinic rollout.

The documents also highlight areas investors will likely track. These include occupancy ramp-up in newer hospitals, execution on clinic and bed additions, working capital trends given a question on trade receivables, and how the product portfolio expansion translates into measurable product revenue growth.