Krishna Institute of Medical Sciences Ltd

O&M and Call Option for Arete Hospitals with AHPL

• Enter into exclusive O&M with AHPL for Arete Hospitals.
• Initial term of 5 years, extendable for a further 5 years on exclusivity.
• AHPL acquired Arete Hospitals via BTA dated 03 July 2026.
• KIMS to provide medical services at Arete under O&M terms.
• KIMS has an option, not obligation, to acquire the business.
• KIMS to receive 9% of Arete's net revenue.
• Net Revenue equals gross billed revenue minus concessions and discounts.
• Arete Hospitals capacity is approximately 250 beds.
• Hospital located at Gachibowli, Hyderabad.
• Agreement executed on 20 August 2026.

Allotment Details

• 77,02,182 warrants allotted on a preferential basis to three allottees.
• Aggregate warrant subscription received: Rs 1,499,999,944.50 (25% of issue price).
• Finance & Investment Committee approved allotment on 19 Aug 2026 at 18:45 IST.
• Warrants convertible into equity within 18 months from allotment.
• Balance 75% of issue price due at exercise.
• Promoter/promoter group post-issue shareholding: 33.71%.
• No change in paid-up capital as warrants are yet to convert.
• Company to list equity shares on exchanges after exercise.

Financial Performance

• Quarter 1 FY27 consolidated revenue 1,180 crore, up 35.3% YoY.
• Quarter 1 FY27 EBITDA pre-Ind AS 222 crore, up 14.6% YoY.
• EBITDA margin 20.1% in Q1 FY27; 20.27% Q1 FY26; 19.9% Q4 FY26.
• PAT INR 37 crore in Q1 FY27; Q1 FY26 INR 85 crore; Q4 FY26 INR 33 crore.
• Cash and equivalents INR 505 crore as of 30 Jun 2026.
• QIP raised INR 1,500 crore; INR 1,100 crore utilized to reduce debt.
• Promoter preferential allotment INR 600 crore; 25% upfront; balance in 18 months.
• Debt reduced from INR 3,250 crore (Mar 31, 2026) to around INR 2,400 crore by early July.
• Kondapur hospital commissioned; first patient admitted June 20; July revenue grew 40%.

Growth and Capex

• Palakkad Kerala unit opened; Bengaluru Mahadevapura break-even achieved.
• Electronic City expected break-even in 1-2 quarters.
• CAPEX last quarter ~INR 60-75 crore; Rajahmundry capex ~60-75 crore this year.
• Next nine months CAPEX ~INR 100-125 crore across three assets; Kondapur largely done.
• O&M agreements with Golden Lane and Sarvottam; 300-bed near Kondapur; revenue potential INR 90-95 crore/month.
• Empanelment progress: 50% of insurers empanelled; remaining 50% pursued; most by Aug-Sep.
• Debt-equity target 2.5:1; internal accruals for growth CAPEX.

Operations and Margin Trajectory

• Telangana occupancy around 50-52%; Kondapur beds added late; 70% ramp target in 3-4 years.
• Nashik break-even; Thane margins around 10% in June; improvement expected.
• Mahadevapura break-even achieved; Electronic City expected break-even by year-end or 1-2 quarters.
• Bengaluru ARPOB around INR 80,000–85,000; ARPP similar; empanelments will normalize.
• Kerala margins targeted at 20–22% over 2-3 years; current single-digit.
• ARPOB growth guidance: 4–5% sustainable; management cautions progress.

Outlook and Q&A Highlights

• No formal FY27 guidance yet; focus on stabilizing current hospitals.
• Kondapur revenue potential around INR 1,200 crore annually (~INR 100 crore/month).
• Other expansion plans depend on empanelments; potential greenfield/brownfield in core markets.
• Old Kondapur rentals ~INR 90 lakhs/month; annual ~INR 12 crore; additional costs ~INR 3–4 crore.
• O&M deals yield top-line share; P&L impact material only after ramp-up.
• Common empanelment progress; industry updates expected in coming months.

Regulatory approvals for promoter warrants

• BSE/NSE in-principle approvals for issue/allotment of 7,702,182 warrants to promoters, convertible into Rs 2 shares.
• Preferential issue to promoter group; listing application to be filed promptly after allotment.
• Conditions include filing listing application, regulatory approvals, SEBI LODR/Companies Act compliance, and fee payments.
• Undertaking from allottees to avoid intraday trading until allotment; non-compliance may impact listing.
• Exchange may withdraw in-principle approval if information is incomplete or misleading; approvals dated August 7, 2026.

Meeting Details

• Date and time: Tuesday, 4 Aug 2026, 10:00 IST
• Meeting type and mode: conference call, virtual
• Organizer: hosted by IIFL Capital
• Company participants: Founder & MD; Executive Director & CEO; CFO
• Purpose: discuss business strategy and outlook post Q1FY27 results

Meeting Details

• Board meeting scheduled for August 3, 2026; time and venue not disclosed.
• To consider unaudited standalone and consolidated quarterly results for quarter ended June 30, 2026.

Key Agenda Items

• Consider and approve unaudited standalone and consolidated financial results for quarter ended June 30, 2026.

Other Notes

• Trading window closure details are not appended in this summary.