KIMS shares plunge 7% in 2 days on Q1 show; Here's what analysts suggest

Krishna Institute of Medical Sciences share price: Shares of hospital chain Krishna Institute of Medical Sciences (KIMS) extended losses on Friday, falling nearly 5 per cent to hit an intraday low of ₹707.65 on the NSE.

 

In the last two trading sessions, the stock has tanked over 6 per cent after the company reported a decline in profit and Ebitda margin for the June 2025 quarter (Q1FY26), missing market estimates. The stock has tumbled around 11 per cent from its 52-week high of ₹798.4 touched on July 24, 2025.

 

At 12:15 PM, Krishna Institute stock was trading 3.75 per cent lower at ₹715.2 per share, compared to the previous day's close of ₹743.05 on the NSE. In comparison, NSE Nifty50 was down 0.71 per cent at 24,421.2 levels. The market capitalisation of the company stood at ₹28,612 crore. 

 

Krishna Institute of Medical Sciences Q1 results

Krishna Institute reported a 26.6 per cent year-on-year (Y-o-Y) jump in consolidated revenue from operations at ₹871.6 crore in Q1FY26, compared to ₹688.4 crore in the year-ago period. Earnings before interest, tax and depreciation (Ebitda) rose 8.5 per cent to ₹199.7 crore, against ₹184 crore in the same quarter last year. However, the company's net profit fell 10.5 per cent Y-o-Y to ₹85 crore from ₹95 crore last year. Ebitda margin slipped to 21.4 per cent from ₹25 per cent in the year-ago period. 

 

The company's average revenue per occupied bed (ARPOB) grew 11.8 per cent Y-o-Y to ₹43,011 from ₹38,458 in the year-ago period. Average revenue per patient (ARPP) jumped 9.8 per cent to ₹1,53,094 from ₹1,39,398.

Analysts on Krishna Institute of Medical Sciences Q1 results 

According to analysts at Axis Securities, KIMS delivered a strong topline, driven primarily by higher ARPOB growth and additions of new units in the Andhra Pradesh and Maharashtra cluster over the year. Growth in ARPOB was supported by new units, an improved case mix, and revised pricing through TPA negotiations. 

 

However, analysts believe that KIMS is well-positioned for sustained growth, supported by strategic expansions, a favourable case mix, and rising ARPOB. Although occupancy has seen a temporary dip, the company’s emphasis on high-value specialities, operational efficiencies, and regional expansion is expected to underpin long-term profitability. 

 

"In the near term, the Nashik Hospital is anticipated to break even by Q3FY26, while the Bangalore facilities are on track to commence operations by H1FY26. The newly commissioned hospitals in Guntur and Kollam are expected to contribute to top-line growth; however, initial ramp-up costs could impact margins. Management has guided for a consolidated Ebitda margin of 22 per cent to 25 per cent for FY26," the brokerage said in a note. 

 

Axis Securities has maintained a 'Buy' rating on the stock with a target price of ₹830 per share, with a valuation of 25x EV/Ebitda for H1FY28E. 

According to JM Financial, KIMS reported a healthy operational performance. The ARPOB rose by nearly 12 per cent year-on-year, even though the average length of stay (ALOS) remained steady at 3.6 days. Occupancy levels fell by 770 basis points to 48.8 per cent, but the overall number of occupied bed days (OBD) still increased by 14 per cent. This was supported by a 32 per cent rise in operational bed additions. Patient volumes stayed strong, with inpatient (IP) volumes rising by 15 per cent and outpatient (OP) volumes up by 19 per cent. 

 

The brokerage firm noted that while FY26 may be a low-margin year due to the initial phase of expansion, margins are expected to recover in FY27. This recovery will be led by the ramp-up of five new hospitals launched during the year. Looking ahead, JM Financial expects Krishna Institute to remain one of the fastest-growing hospital chains in India, with estimated revenue and Ebitda compound annual growth rates (CAGRs) of 30 per cent and 32 per cent, respectively, over FY25–FY28.

 

JM Financial has maintained a 'Buy' rating on the stock with a June 2026 target price of ₹834.