Krishna Institute of Medical Sciences Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,344.40 Cr (+39.94% YoY) and PAT growth of +3.61% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,344.40 Cr (+39.94% YoY) |
| PAT (Q2) | Rs. 74.60 Cr (+3.61% YoY) |
| EBITDA margin | 20.46% (-112 bps YoY) |
| EPS (Q2) | Rs. 1.79 (+7.19% YoY) |
Revenue grew 39.94% YoY to Rs.1,344.4 Cr and company-basis EBITDA rose ~34% to Rs.278.9 Cr, but normalized PAT fell 9.63% YoY as gestation costs from new hospitals drove subsidiary losses of Rs.(17.9) Cr. The QIP-funded balance-sheet transformation (borrowings down Rs.714.1 Cr, D/E at 0.60x) and a second consecutive quarter of sequential margin expansion are the key positives, while the 27-30% margin target remains a stretch at the current 20.46%.
| Driver | What happened | Verdict |
|---|---|---|
| Revenue "should continue directionally upward" on volumes + capacity | RevOps +39.94% YoY, +13.98% QoQ | Played out |
| Finance cost down from Q2 — "the cleanest test" vs the Rs.83.4 Cr Q1 base | Rs.65.5 Cr, −21.46% QoQ (consol); −64.02% QoQ standalone | Played out |
| "Gestation drag is the dominant swing"; margins compressing | Margin 20.46%, −112 bps YoY but +41 bps QoQ; normalized PAT −9.63% YoY — YoY compression confirmed, sequential stabilization not anticipated | Partially |
| Employee/other cost growth above revenue (as in Q1: +40.8%/+45.0%) | Employee +32.89% (below revenue); other exp +48.48% (above) | Partially |
| Bangalore zero-loss FY27, Telangana +10–12% EBITDA, Thane breakeven, CGHS benefit | No cluster/facility/KPI disclosure in the filing | Not observable |
| Receivables/working-capital headwind from government-payer dues | Trade receivables Rs.690.6 Cr vs Rs.554.2 Cr at Mar-26 | Played out |
| Pre-registered one-time: Kondapur transition drag possibly >Rs.15–25 Cr | Not quantified anywhere in the filing — named here as an unquantified drag inside other expenses — flagged | Not observable |
Read our full results preview.
| What management said | What happened | Verdict |
|---|---|---|
| Finance cost reduction "from Q2 FY27 onwards" (Q1 FY27 earnings call, Aug 4, 2026) | Consol Rs.65.5 Cr, −21.5% QoQ; standalone Rs.11.8 Cr, −64.0% QoQ / −33.7% YoY — sequential; YoY still +45.6% | Met |
| Debt retirement ~Rs.1,000 Cr in FY27 (Q4 FY26 call, May 18, 2026) | Borrowings −Rs.714.1 Cr in H1 | On Track |
| Debt-to-equity ~2.5:1 (Q1 FY27 call) | 0.60x at Sep 30, 2026 — comfortably | Met |
| Debt-to-EBITDA below 1.0x (FY26 annual report) | 2.44x (Sep-26 borrowings ÷ annualized H1 EBITDA Rs.1,037.4 Cr) | Stretch |
| Consolidated EBITDA margin 27–30% over 2–3 yrs, expansion from Q1 FY27 (Q2 FY26 call, Nov 10, 2025) | 20.46%, +41 bps QoQ, −112 bps YoY — direction just turned | Too Early |
| FY27 capex Rs.500–600 Cr (Q3 FY26 call, Feb 9, 2026) | Rs.654.1 Cr in H1 alone | Met/Exceeded run-rate |
| "QIPO proceeds repaid secured loans, so that risk factor will be completely taken care of" (CFO, Q1 FY27 call) | Borrowings −Rs.714.1 Cr; standalone finance costs −64% QoQ | Confirmed |
| Cluster-on-cluster margin expansion "every quarter... including the mature ones" (Q4 FY26 call) | Consolidated margin +41 bps QoQ, −112 bps YoY; cluster split absent | Too Early |
| Margin expansion "from Q1 FY27 as most hospitals turn EBITDA positive" (Q2 FY26 call) | Q2 delivered only +41 bps QoQ to 20.46% vs 21.58% a year ago — two quarters in, margin is still below the year-ago level | Contradicted so far |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.