Krishna Institute of Medical Sciences (KIMS IN) – Q2FY26 Result Update – In expansion phase; profitability to improve from FY27 – BUY
Published on 10 Nov 2025
Krishna Institute of Medical Sciences (KIMS) reported EBITDA de-growth of 6.5% YoY, impacted by losses from new units. Our FY26E and FY27E EBITDA stands reduced by 7%, factoring in higher losses from new units. New leadership team hiring across Karnataka and Kerala provides comfort for faster ramp-up in these clusters. Given its lean cost structure and partnership with local doctors/ leadership outside Andhra Pradesh (AP) and Telangana, the management remains confident of achieving faster breakeven and +25% OPM across Maharashtra, Karnataka and Kerala clusters over the next 4-5 years. We expect 25% EBITDA CAGR over FY25-28E with healthy return ratios of ~20%. Maintain ‘Buy’ rating with TP of Rs840/share based on 30x Sep2027E EV/EBITDA as we roll forward. Delay in breakeven of new units will be a key risk to our call.
