Kovai Medical Q1 FY27 Results (NSE: KOVAI)
Signal: Steady quarter
The read
The trajectory remains positive: revenue grew 15.3% YoY and PAT 20.7%, with healthcare PBIT growing 22.9%; the key monitor is whether the modest 70bps gross-margin compression from higher consumables costs persists.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4.31 Cr | +15.3% | +4.3% |
| EBIT | ₹1 Cr | N/A | |
| Net profit | ₹0.69 Cr | +20.7% | |
| EPS | ₹63.14 | +20.7% | |
| EBIT margin | 30.4% |
P&L walk
Revenue increased 15.3% YoY and 4.3% QoQ, while PAT grew faster at 20.7% YoY; gross margin compressed modestly as medicines and consumables grew 18.3% YoY, but EBITDA margin remained 30.4%.
Segments
Healthcare drove the group, with revenue up 18.0% YoY to ₹40,491.54 lakh and PBIT up 22.9% to ₹9,387.41 lakh, while education revenue fell 14.5% and PBIT fell 30.9%.
Key positives
- Healthcare revenue increased 18.0% YoY to ₹40,491.54 lakh and healthcare PBIT increased 22.9% to ₹9,387.41 lakh, outpacing consolidated revenue growth of 15.3%.
- PAT grew 20.7% YoY to ₹69.09 Cr, ahead of revenue growth, while EPS tracked PAT at 20.7% YoY.
- Employee benefits expense grew 11.2% YoY versus revenue growth of 15.3%, indicating favorable personnel-cost intensity in the quarter.
- Finance costs declined 12.6% YoY to ₹801.58 lakh despite the sequential increase of 41.0%.
Key concerns
- Education revenue declined 14.5% YoY to ₹2,639.21 lakh and education PBIT declined 30.9% to ₹1,094.21 lakh.
- Gross margin compressed approximately 70bps YoY as medicines, hospital consumables and dietary costs grew 18.3% versus revenue growth of 15.3%.
- Depreciation increased 22.4% YoY to ₹3,172.69 lakh, faster than revenue growth, raising the need to monitor returns from the expanding asset base.
Research and educational content only. Not investment advice.