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Informist, Saturday, Aug. 1, 2026

MUMBAI – Krishna Institute of Medical Sciences Ltd. is expected to report strong topline growth for the June quarter, led by robust growth in average revenue per patient and the ramp-up of new hospitals, according to brokerages tracking the company. However, the company's net profit is expected to decline sharply as elevated debt levels increase interest costs.

The company is expected to post a consolidated net profit of INR 579 million for the June quarter, down more than 26% on year but up more than 8% sequentially, according to the average of estimates from seven brokerages. The highest estimate for the company's net profit is INR 703 million from Emkay Global Financial Services Ltd. and the lowest is INR 373 million from JM Financial Institutional Securities Pvt. Ltd.

The healthcare provider's consolidated net revenue is expected to rise 30% to INR 11.34 billion on a year-on-year basis and also up more than 5% sequentially, according to the estimates. The highest estimate for Krishna Institute's net revenue is INR 11.7 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 10.7 billion from Axis Securities Ltd.

Krishna Institute is expected to deliver strong revenue growth in the June quarter led by the ramp-up of newer clusters and broad-based improvement in operations, Emkay Global said. The hospital's chain's revenue from occupied beds is likely to rise 17% on year, and its average revenue per occupied bed is expected to grow 10% on year, the brokerage added.

The company's revenue growth is expected to gradually fall as its focus shifts to margin improvement for the next 12 to 24 months, Axis Securities said. Insurance empanelment is the primary constraint slowing down new unit revenue ramp-ups, the brokerage added.

The company's net profit is expected to decline as high debt is expected to drive a 75% rise in interest cost, Emkay Global said. However, following the INR 15 billion qualified institutional placement in June, the company is expected to deleverage over the next few quarters, it added. The company's total borrowings were INR 32.4 billion at the end of March 2026, up 69% from INR 19.19 billion reported in March 2025.

The company's earnings before interest, tax, depreciation, and amortisation are expected at INR 2.18 billion, up 9% on year and up slightly on a sequential basis, according to the average of six estimates. The highest estimate for the company's EBITDA is INR 2.25 billion from Kotak Securities Ltd. and the lowest is INR 2.10 billion from IDBI Capital Market Services Ltd.

The company's EBITDA growth is expected to remain constrained by initial losses from new units in Nashik and Bengaluru which will partially offset leverage from mature hospitals, according to brokerages. However, these new units are expected to contribute to the company's revenue in the long term, Axis Securities said. "Overall, we believe near-term margin pressure is visible in hospitals dragged by new assets, but earnings visibility is clear with growth and capex (capital expenditure)," the brokerage added.

Krishna Institute's EBITDA margin is expected to contract by 225-230 basis points on year to 19.8% from 22.1%, according to brokerages. Sequentially, the margin is expected to expand by 60-65 bps, driven by narrowing losses at the Thane and Bengaluru units to INR 250-INR 290 million in the June quarter from INR 450 million in the previous quarter, they added.

Hospital companies are expected to post strong revenue growth, driven by higher patient volumes at established facilities and increasing occupancy at the new hospitals, Kotak said. However, these new additions are likely to continue weighing on the company's profitability, but their losses are expected to narrow on a sequential basis, it added.

Krishna Institute is a corporate healthcare group with hospitals in Telangana, Andhra Pradesh, Maharashtra, Karnataka, and Kerala. Headquartered in Secunderabad, Telangana, the company delivers medical services across more than 40 specialties.

The company will detail its earnings for the June quarter Monday. Investors will watch for insurance empanelment and occupancy ramp-up of new hospitals, timeline for EBITDA breakeven of new hospitals, debt repayment, and future bed capacity addition. All seven brokerage reports on the company available with Informist have a "buy" recommendation on the stock with an average target price of INR 839, which is 4% higher than the closing price Friday.

Friday, shares of the company closed at INR 804.70, down slightly from Thursday. The stock is up 12% since the company announced its March quarter earnings on May 15.

Following are the June quarter earnings estimates for Krishna Institute of Medical Sciences Ltd. from seven brokerages in descending order of net profit, in INR million:

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Reported by Krupa Biju

Edited by Pankaj Aher

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