Krishna Institute of Medical Sciences (KIMS) Hospitals is expecting a 50% revenue jump in the financial year ending March 2026 on the back of expansion plans and better average revenue per occupied bed (ARPOB), the institute's Chairman and Managing Director Dr. B Bhaskar Rao told NDTV Profit on Friday.
“In 2025-26, with what we are doing, maybe there will be a 50% jump (in revenues) if all the hospitals do a good job,” he said.
Detailing the expansion plans of the company, Rao said that two hospitals in Thane and Bengaluru are set to be operational in the first quarter of the fiscal 2025-26.
“As far as expansion is concerned, both Thane and Bengaluru are going to come in the first quarter of next financial year,” he stated.
Rao further explained why the ARPOBs of KIMS Hospitals have increased from around Rs 31,000 in the last four quarters to around Rs 38,000-40,000 now.
“In the last couple of years, we have been aiming for complex procedures and transplants in a big way. We have done 100 heart and lung transplants this year. That can generate a high-end ARPOB,” he said.
The top executive highlighted that the revenue per occupied bed is expected to rise in the future. He explained that this growth will be driven by the organisation's ability to handle more complex procedures and the addition of departments such as oncology, which will contribute to higher revenues.
“The organisation keeps growing, and more and more experienced consultants have come. They are tasked to do more and more complex procedures. So the ARPOBs will increase,” he said.
“Apart from that, we also added oncology in one or two areas and mother and child (department) in three or four areas. Moving forward, these two things will come. That also pushes the ARPOB a little higher than what is existing today,” Rao added.
He stated that adding beds in Tier 1 cities will further boost the ARPOBs.
“Moving forward in the coming year, we are adding 1,000 beds in metros like Bengaluru and Thane. Those markets themselves usually generate high ARPOBs,” Rao mentioned.
Shares of Krishna Institute of Medical Sciences Ltd. closed 2.46% higher at Rs 629 apiece on the NSE on Friday. On the other hand, benchmark Nifty 50 closed 0.76% lower at 24,004.75 points.
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