Krishna Institute of Medical Sciences Targets 25-30% Revenue Growth Over Next Four Years

Krishna Institute of Medical Sciences Ltd. (KIMS) is targeting a 25-30% year-on-year revenue growth over the next three to four years, according to Chairman and Managing Director, Dr Bhaskar Rao. 

“There will definitely be a 25 to 30% revenue growth year-on-year in the next three to four years,” he told NDTV Profit in an interview on Friday.

The company aims to raise its Average Revenue Per Occupied Bed (ARPOB) from Rs 43,000 currently to Rs 55,000. On being asked how likely it is for the company to achieve the target in FY26, he said, “Fair chance”.

“The reason is 900 beds, which we are opening this year in Bangalore and Thane. It will take about two quarters, most probably if not the end of this year and the next financial year, about quarter one. There should be a good jump in ARPOBs,” the top executive said.

“Both Bengaluru and Thane-- they are a little high ARPOBs, almost like Telangana, even better than Telangana ARPOBs, whereas Andhra ARPOBs are very, very low,” he added.

Another factor for the confidence expressed by Dr Rao is the increasing influx of complex medical cases, which typically command higher ARPOBs, particularly in Tier 1 and Tier 2 cities.

“When you get a lot of complex cases, whether they're Tier 2 cities or Tier 1 cities, the ARPOBs will increase,” he said.

Addressing concerns about debt, Dr Rao clarified that the listed entity’s debt remains low, at approximately Rs 600-700 crore. The overall debt-to-Ebitda ratio for the company is less than 1:1, which Dr Rao described as a “non-alarming” position.

The blended debt-to-Ebitda ratio, including subsidiaries, is expected to hover around 2.5; he aims to bring it down to a more comfortable range of 1.5 to 2 or preferably less than 1.5.

Share of Krishna Institute of Medical Sciences closed 0.96% lower at Rs 739 apiece on the NSE, while the benchmark Nifty50 ended at 24,870.1, down 0.85%.