Krishna Institu. Q2 FY27 Results (NSE: KIMS)
Signal: Margin pressure
The read
The operating inflection is volume and pricing-led growth with a sequential margin recovery: revenue from operations rose 39.9% YoY to ₹1,344.4 crore, IP/OP volumes grew 27.0%/23.3% and ARPOB rose 14.9%, lifting EBITDA 34.0% to ₹278.9 crore and margin to 20.5% from 20.1% QoQ; however, margin remains 120bps below Q2FY26 and PAT growth is only 5.6% because depreciation rose 82.6%, interest rose 45.6% and a ₹13.2 crore exceptional item was recorded.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,344.4 Cr | 39.9% | 14.0% |
| EBIT | ₹158.2 Cr | +11.3% | |
| Net profit | ₹76 Cr | +5.6% | |
| EPS | ₹1.8 | +8.5% | |
| EBIT margin | 20.5% |
P&L walk
Revenue from operations increased 39.9% YoY to ₹1,344.4 crore on IP volume growth of 27.0%, OP volume growth of 23.3% and ARPOB growth of 14.9%; reported EBITDA rose 34.0% to ₹278.9 crore, but the 20.5% margin remained 120bps below Q2FY26 as depreciation grew 82.6% and finance cost rose 45.6%, limiting PAT growth to 5.6% at ₹76 crore.
Key positives
- Revenue from operations reached ₹1,344.4 crore, up 39.9% YoY and 14.0% QoQ, with IP volume up 27.0% and OP volume up 23.3%.
- ARPOB increased 14.9% YoY to ₹48,277 and ARPP increased 9.9% to ₹1,65,577, confirming that growth came from both patient volumes and higher realisation.
- Reported EBITDA rose 34.0% YoY to ₹278.9 crore and the margin recovered 40bps QoQ to 20.5% after the recent sequential decline.
- Cash and cash equivalents stood at ₹420 crore, providing disclosed liquidity alongside the expansion plan.
Key concerns
- EBITDA margin of 20.5% remained 120bps below Q2FY26 despite 39.9% revenue growth, indicating that scale-up has not yet restored last year's profitability.
- Depreciation rose 82.6% YoY to ₹120.7 crore and interest rose 45.6% to ₹65.5 crore, causing PAT growth of only 5.6% versus revenue growth of 39.9%.
- Reported EBITDA growth of 34.0% lagged total-income growth of 41.3%, while pre-Ind AS EBITDA excluding other income grew only 17.9% YoY to ₹231.6 crore.
- The ₹13.2 crore exceptional item reduced the quality of the reported ₹76 crore PAT.
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