Kovai Medical Center & Hospital Ltd

Special Resolution: Re-designation and remuneration

• Special resolution to redesignate Dr. Arun N Palaniswami as Joint Managing Director with revised remuneration.
• Resignation/appointment terms: remaining tenure from 7 August 2026.
• Remuneration package: salary Rs 11 Lakh monthly; 2% commission; perquisites; other benefits.
• Overall remuneration ceiling governed by Companies Act; subject to board and Nomination/Remuneration Committee approvals.
• Promoter status and independence: Dr Arun Palaniswami is promoter; not independent.
• Record date: 14 August 2026.
• E-voting window: 21 Aug to 19 Sep 2026; EVEN 140950.
• Outcome: Pending; result to be announced within two working days after voting.

Transaction details

• Nature and type: Transmission of equity shares via inheritance.
• Acquirer: promoter group; Transferor: promoter group member.
• Pre-transaction acquirer holding: 10,000 shares, 0.09%.
• Post-transaction acquirer holding: 12,69,725 shares, 11.60%.
• Pre-transaction transferor holding: 12,59,725 shares, 11.51%.
• Post-transaction transferor holding: 0 shares, 0.00%.
• Mode of acquisition: Inheritance.
• Salient feature: equity shares transmitted through inheritance.
• Public shareholding: unaffected by this transfer.
• Total voting capital: unchanged at 1,09,42,262 shares.
• Change in promoter group: acquirer gains 11.60% stake; transferor exits.

Financial performance

• Standalone unaudited results for quarter ended 30.06.2026.
• Revenue from operations ₹43,090.85 lakh; total income ₹43,864.92 lakh.
• Total expenses ₹34,711.14 lakh; medicines/consumables ₹12,344.36 lakh.
• PBT ₹9,153.78 lakh; tax ₹2,245.20 lakh; PAT ₹6,908.58 lakh.
• Total comprehensive income ₹6,899.62 lakh; EPS ₹63.14.
• Healthcare segment revenue ₹40,491.54 lakh; Education ₹2,639.21 lakh; sub-total ₹43,130.75 lakh.
• Healthcare segment PBT ₹9,387.41 lakh; Education ₹1,094.21 lakh; sub-total ₹10,481.62 lakh.
• No subsidiary; consolidation not applicable.
• Q3 FY2026 balancing figures; limited review.

Auditor remarks & notes

• Board approved unaudited results on 07.08.2026.
• Independent Auditor's Review: no material misstatement.
• Figures regrouped to conform to current period presentation.
• Company has no subsidiary; consolidation not applicable.

CSR Committee Reconstitution

• CSR Committee reconstituted, effective 07 August 2026.
• Chairman: Dr. Nalla G Palaniswami.
• Members: Dr. Arun N Palaniswami, Mrs. V. Bhuvaneshwari, Mr. P. Ammasaikutti, Mr. M. Rathinasamy.

Re-designation of Joint Managing Director

• Dr. Arun N. Palaniswami re-designated as Joint Managing Director, effective 07 Aug 2026.
• Term: remaining tenure; liable to retire by rotation; shareholder approval required.
• Reason: valuable contributions and continued leadership; growth under his guidance.
• Profile: 20+ years in hospital industry; US physician; Quality Control Director at KMCH for 8 years.
• Relationships: Son of Dr Nalla G Palaniswami; brother of Dr Mohan S Gounder and Dr Purani P Palaniswami.
• Not a break in service due to re-designation.

Financials

• FY25-26 revenue from operations ₹1,58,563.68 L; total income ₹1,61,388.41 L; up 15.65%.
• EBITDA ₹46,710.23 L; EBITDA margin ~29%; PAT ₹24,446.00 L; PAT margin ~15%.
• Total comprehensive income ₹24,404.52 L; EPS ₹223.41; net worth ₹1,31,926.52 L.
• Dividend recommended ₹15 per equity share; cash outflow ₹1,641.34 L; subject to members’ approval.
• Additions to CWIP ₹29,372.62 L; CWIP at year-end ₹13,496.02 L.
• Investment in equipment during 2025-26 ₹11,845.14 L.
• Net debt ₹5,786.88 L; cash & bank balances ₹34,487.85 L; net debt–equity 4.39%.
• Current tax ₹7,962.54 L; deferred tax ₹205.36 L; total tax ₹8,123.14 L; effective rate 25.08%.
• Healthcare segment revenue ₹1,47,024.61 L; Education ₹11,539.07 L; Healthcare PAT ₹33,761.06 L; Education PAT ₹5,165.98 L.
• NABH accreditation maintained; ~98.56% demat of shares; dividend policy disclosed on KMCH site.

Operations & Segments

• Inpatients: 1,20,897; inpatient revenue ₹1,05,824.86 L; Outpatients: 13,95,050; outpatient revenue ₹41,051.23 L.
• Education revenues ₹11,539.07 L; KMCH IHSR students 955; AHS courses 808.
• Bed capacity 2,035; operating beds 1,850; bed occupancy 63.41%.
• Average revenue per occupied bed ₹24,714; inpatient revenue growth 15.02%; outpatients up 12.50%.
• Total operating revenue ₹1,58,563.68 L; cost of medicines & diet ₹44,807.90 L; employee costs ₹30,648.45 L.
• Segment: Healthcare revenue ₹1,47,024.61 L; Education ₹11,539.07 L; PAT by segment ₹33,761.06 L and ₹5,165.98 L.
• Cash flow and liquidity supported by strong balance sheet and NABH accreditation.

Strategic Developments & Investments

• 300-bed Pediatric Hospital project approved; work may commence in Q2-2026.
• KMCH IHSR graduation MBBS 2019–25; MD/MS launched across 10 disciplines for 2025–26.
• Thadagam Rural Medical Center opened Sept 2025; consultations ₹30; free diagnostics.
• Institute of Neuro Sciences & OPD Block inaugurated Jan 15, 2026; ₹120 Cr capex; AI radiology hub.
• Tamil Nadu’s first Varian ETHOS AI-powered Adaptive Radiotherapy system; ₹47 Cr investment.
• 1,000 robotic knee replacements using CORI system milestone; TN first retrievable leadless pacemaker.
• ECMO runs 75 in 2025; ECMO on Wheels ambulance service launched.
• Two national firsts: epilepsy surgery on pregnant woman; living donor liver transplant on ECMO.
• Symbia Pro.Specta SPECT/CT installed; first in TN, 4th in India; 32-slice CT.
• KMCH hosted CAHOCON 2026 international conference; expanding education & diagnostics.

Dividend & Capital Allocation

• Dividend ₹15 per share (150%); cash outflow ₹1,641.34 L; subject to AGM approval.
• CSR: 2% of average net profit ₹446.86 L; spent ₹41.86 L; unspent ₹404.99 L transferred to CSR accounts.
• CSR policy disclosed on KMCH website; no material transfer to reserves.
• Capital expenditure on equipment ₹11,845.14 L during 2025–26.
• Equity share capital ₹1,094.23 L; fully paid; 1,094.23 L at year-end.

Governance & Compliance

• Board size 13 directors; 7 independent; 3 executive; two independent directors reappointed for five years.
• Five Board meetings held in 2025-26; dates: 28-05-2025, 08-08-2025, 07-11-2025, 06-02-2026, 06-03-2026.
• Audit Committee comprises 4 independent directors; Nomination & Remuneration Committee, 4 members.
• Stakeholders Relationship Committee active; CSR & Risk Management committees in place.
• Related party transactions at arm’s length; RPT policy on website; MD/CFO certification given.
• Secretarial audit by KSR & Co; non-disqualification certificate issued; annual governance certificate.
• Unclaimed dividend transfers to IEPF; detailed disclosures on company website.

ESG & CSR

• NABH accreditation reaffirmed; strong emphasis on safety and quality.
• Energy: 10.25 MW solar plant supplies ~63% of electricity; saves 41% on electricity costs.
• Water: 674,143 KL consumed; 163,906 KL discharged; ZLD via treated effluent reuse.
• Waste: total 864.80 MT; 48.4 MT recycled; 18.5 MT reused; 0.0 MT other recovered.
• GHG: Scope 1 = 30.40 MT CO2e; Scope 2 = 52.60 MT CO2e; intensity 0.0052 per turnover.
• Employee training: BoD & KMP 100% trained; 157 employees & 72 workers covered in HR topics.
• CSR: CSR liabilities Rs 404.99 L unspent; CSR 2025-26 projects focus on health, education & sanitation.

Risks & Audit

• CARO 2020 observations: lease registrations and immovable property registrations under process.
• Internal controls are adequate; independent audit confirms robust governance and compliance.
• Contingent liabilities include LC for capital equipment and disputed statutory dues.
• Cybersecurity & data privacy policy in place; ongoing focus on reducing data breach risk.
• Market risks include competition, cost-reimbursement gaps, and workforce attrition.

Outlook

• Continue capacity expansion and technology investments to enhance clinical outcomes.
• Host CAHOCON 2026; strengthen educational initiatives via KMCH IHSR & Postgraduate Institute.
• Maintain NABH standards; advance AI, robotic, and ECMO capabilities across districts.
• AGM scheduled 26 August 2026; remote e-voting 23–25 August; record date 19 August 2026.