Krishna Institute of Medical Sciences Limited (NSE: KIMS) Q3 2026 Earnings Call dated Feb. 07, 2026
Corporate Participants:
Bhaskara Rao Bollineni — Founder and Managing Director
Sachin Ashok Salvi — Chief Financial Officer
Abhinay Bollineni — Chief Executive Officer
Sreenath Reddy — Director Business Strategy and M&A
Analysts:
Rahul Jiwani — Analyst
Amey — Analyst
Damayanti Kerai — Analyst
Chirag Gupta — Analyst
Karan Vora — Analyst
Kunal Randeria — Analyst
Anshul Agrawal — Analyst
Alankar Garude — Analyst
Vedant Nilekar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Kim’s Hospital Q3FY26 earnings conference call hosted by IIFL Capital. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Jiwani from IIFL Capital. Thank you. And over to you sir.
Rahul Jiwani — Analyst
Yeah. Hi. Good morning everyone. This is Rahul from IFL Capital. I welcome you all to the third quarter earnings conference call of Kim’s Hospitals. From Kim’s, we have with us today Dr. Bhaskar Rao Bolineni, founder and managing director. Dr. Rabine Bolineni executive director and CEO Mr. Sachin Salvi, CFO Dr. Nitish Shetty, CEO for Kim’s Bangalore cluster and Mr. Srinath Reddy, director Business Strategy and M and A. Over to you sir for your opening comments.
Bhaskara Rao Bollineni — Founder and Managing Director
Good morning to all of you. A hearty and warm welcome to all of you. This happens to be the first meeting in the new year and I take this opportunity to extend greetings for a healthy and happy year ahead for all of you. Last week the union budget was presented which is a quiet budget devoid of any frills or fanfare but conveys a clear resolve for fiscal consolidation. The health sector received a 7% hike over a previous year with a major push to mental health and making cancer and rare disease treatment more affordable. Primary focus was given to creating a skilled health care workforce to cater to the growing disease burden.
That way the hospitals will get more skilled people in new coming areas. Overall it is a good budget though it would have been better with increased allocations to healthcare sector. Now let us move to financials and operation results for the quarter three 25 26. I am happy to share that this is a record breaking quarter with highest ever revenue crossing the thousand crore mark. Though Q3 is a traditionally weak quarter, I would say that we have raced fast with growing results despite the usual initial pressures associated with the new units. Because of our new inherent strength and enhancement network Q3FY26 highlights total revenue of INR 1003 crore.
A growth of 29.2% on year on year and 3.9% on quarter. On quarter basis, the EBITDA 204 crores, a marginal decline of 0.4% on year on year and 2% on a quarter on quarter basis. The decline in EBITDA was mainly on account of EBITDA erosion caused by the newer units that commenced operations over the last 9 to 12 months. EBITDA margin stood at 20.4% versus 25.9% in quarter 3. 25 and 21.6% in Q2FY26 PAT at INR52 crores in Q3FY26 against INR93 crore and INR72 crore in Q3FY25 and Q2FY26 respectively. A consolidated EPS for Q3FY26 of INR 1.3, a decline of 39.9% on year on year basis and 20.1% quarter on quarter respectively.
Cash and Cash equivalents Includes cash bank balance deposits with maturity less than 12 months and investments in mutual funds at INR 206crores as on 31st December 2025 Q3FY26 Financial Highlights Consolidated Consolidated Revenue from Operations INR 998 crore A growth of 29.2% on year on year and 3.9% on quarter on quarter basis Consolidated EBITDA Pre India’s INR 193 crore A decline of 2.2% on year on year, and of 3.7% on quarter on quarter basis Consolidated EBITDA Pre India and excluding other income of INR 188 crores a growth of 4.6% and a decline of 4.3% on year on year and quarter on quarter basis respectively.
Operational Highlights Consolidated Q3 Financial Year 26 Highlights Average revenue per operating bed grew by 20.5% and 10.3% on year on year and quarter on quarter basis respectively. Average revenue per patient grew by 13.9% and 9% on year on year and quarter on quarter basis respectively. IP volume 61,139 grew by 13.2% year on year and declined 4.9% quarter on quarter basis. OPU volumes 5 lakhs 85,499 an increase of 24.5% year on year and a decline of 1.2% quarter on quarter. Other Developments Kimchi entered into an agreement with Andhra Mahaila Sabha for its land to construct and operate a hospital at Chennai for 26 years.
The construction is expected to be completed within two years at KIM’s Madhyapura Bangalore 25 transplants were performed just within three months it started functioning at Thane. 100 plus life saving pediatric cardiac procedures were done within first five months. It’s a great achievement for the new unit. We organized an event on the occasion of World Cancer Day 4th February where good number of cancer conquerors, their families and doctors participated. The chief guest was Padma Viborshan awardee and famous senior actor Sri Saranji. I don’t intend to burden you with endless list of our clinical achievements. The point of note is that excellent medical care and latest technology is now available at Tide 2 and Tide 3 centers wherever Kimsi is there.
Even organ transplants are taking place at these small towns which was unheard of before. There have been a galore of accomplishments during the year 2025. I will give brief highlights. We now have 25 hospitals across five states. In 2025 we launched seven hospitals. Bangalore, Mahadeopura and Electronic City two in Guntur, Pollam in Kerala, Thane and Sangli in Maharashtra. 100 lung transplants were done in 2025 under the leadership Dr. Sandeep Attawar and his team. Over 430 liver renal transplants across the globe led by Dr. Umar Vayasar Rao and Satyriddy and his team. Over 120 liver transplants across the group done in this year under the leadership of Dr.
Venu Gopal and Sachin Daga and Chandan and other group team members. Over 100 organ donations are achieved by impressing the patient attenders to donate their kith and kins for their body so that at least 800 people got benefited out of this entire credit goes to our coordinator Manga Devi and Dr. Mr. Ajwik. Over 500 robotic surgeries done across and over 100 robotic pupil surgeries done which is a great achievement by Kim Sikandraban, Kim Socal Ashmi Breast Unit got two Guinness Book of World Record for largest breast cancer awareness program. Launch of India’s first Tulsa Pro for prostate cancer care treatment without operations.
Launch of India’s second magnetic resonance guided focused ultrasound for tremor treatment which is a very very successful. Launch of South India’s first Gamma knife for brain tumors for metastasis and other things. Finally I would like to say that the new units have started stabilizing and real growth on their part can be seen from coming financial year. We have more expansion in the offering and I would able to let you know in the next quarter. Thank you for your continued trust and support. I conclude now wishing you and your families best of everything in the new year.
operator
Should we begin with the Question and answer session now
Bhaskara Rao Bollineni — Founder and Managing Director
please.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ameya from JM Financial. Please go ahead.
Amey
Yeah, thank you for taking my question. So first question is on the newer assets. Is it possible for the management to provide the occupancy number for Thane as well as two Bangalore assets and also the trajectory for the EBITDA losses for these three units in the coming quarters, especially for quarter four and FY27. Thank you so much.
Abhinay Bollineni
It may be difficult to give you. A specific details on occupancy of each of the asset because all three assets are growing. But I think between Thane and Mahadevapuram in Bangalore, towards the end of Q1 next financial year we should become EBITDA positive or EBITDA neutral. Electronic city might take a little longer because we commissioned it only in the month of December. So I think by end of Q3 electronic city also should turn a bit neutral or positive.
Amey
Sure. And for Bangalore particularly or the Karnataka cluster, the RPOps are upwards of 76,000 for this quarter. Should we consider some normalization in these rpobs because this is just the first few quarters of the hospitals getting started or you think these RPOps are maintainable going ahead?
Abhinay Bollineni
Srinath, you want to take that? So I think you should probably discount it a little because we have done a significant amount of transplant work in this quarter and since the hospital is new, the base is still low. We should probably think of it similar to what it is in the Telangana cluster, around 70, 75,000. Nagpur. Yeah.
Sreenath Reddy
To add to Dr. Abhinay, see these are initial, initial periods but. But we strongly believe that these trends should more or less continue. There could be some small rationalization but the trend should continue.
Amey
Sure. And the second question I have on the Andhra and Telangana cluster, the IPU volumes growth has been for Telangana it’s in low single digit and for I believe Andhra it is declined despite bed addition and only operating at 50% kind of occupancy. Is there anything to read into this or you expect the performance to improve?
Abhinay Bollineni
Well, I think if you look at Telangana growth it has been on a. Year on year basis it’s been 20% on a quarter. On quarter last year, same quarter on the volume growth also from last year first nine months or last year to the first nine months of this year there has been a 5% growth in volume and revenue has grown higher. But at a mature cluster to grow at 5% is healthy enough. As far as Andhra in quarter three we had. We had a strike with the state government. So we had not taken advocacy scheme for almost a month. And that’s why you see a significant dip in volume.
But otherwise January things have bounced back and the revenues are as per how it was in Q2.
Amey
Sure. So Telangana, what optimal occupancy should we assume going ahead at annual
Abhinay Bollineni
Telangana we. Should get to 75, 80%. There are little constraints in Telangana because some beds we have now shut down because of renovation. Once those beds come into operation, which will happen end of next year, that should contribute to growth. And the new Kondapur facility, the Kundapur facility today is probably running at 90, 95% occupancy. It should get commissioned in the next three, four months. Once that gets commissioned, there will be more volume growth in the Telanganatla.
Amey
Sure. Thank you so much. I will join back. Thank you.
operator
Thank you. The next question is from the line of Damyanty from hsbc. Please go ahead.
Damayanti Kerai
Hi, good morning and thank you for the opportunity. My question is on Maharashtra cluster unit. So first for both Nakshik and Thane unit can you update whether like what is the status on NABH accreditation? The second point is the discussion which you are having with the insurance impanel went. What is the update? And since last quarter have you signed any impanelement either in Nasik or Thane? And also just want to understand each NABH accreditation must before you really get impanelement with all the key insurance players. Thank you.
Abhinay Bollineni
NABH in NASIC entry level is completed. NABH in Thane is in pipeline. It will still take some more time but both of them for both units or any other unit. NABH is not a prerequisite for empowerment with insurance company. There has been some progress in both units on insurance. But the top five companies that we wanted to do out of which were done, three more are to be done. We’re almost in the last leg of closure on all three for both Nasik and Thane. It should be done by before the end of this quarter. Quarter four.
Damayanti Kerai
Okay. And just want to understand, I believe your discussion or negotiation with insurance companies took a little longer than what we anticipated. So any point where you really had to negotiate, you know Negotiate not with the insurance companies. And what are the key pushback coming from them before they agree for signing the deal?
Abhinay Bollineni
I think it is, you know we. Always want a better price. We want something higher than what is already being offered and they obviously want to lower the price as much as they can. So that is something that’s a bilateral discussion between the hospital land insurance company.
Damayanti Kerai
Okay. And you said of the top five insurance companies two are already done. Like you have closed the contract. Is it that Nashik unit or. Okay. And then second question I had on the overall RPOB and ARPP trend, you did mention there was component of transplant in new Bangalore unit etc. But when we look at the trends it seems exceptionally strong than what we had seen in last few quarters. So is transplant only the moving factor here or something else has changed? And how should we look the trend in coming?
Abhinay Bollineni
Are you referring to the group rpob?
Damayanti Kerai
Yes, the consolidated RPOB and ARPP numbers I think.
Abhinay Bollineni
See Thane and Bangalore both are high. RPOP markets and both of the all three hospitals got commissioned only in the last six, nine months. So definitely the incremental revenue that’s coming in from Thane and Bangalore, the RPOP will be higher which will pull the overall group RPAP and Telangana which also if you see Telangana was at 65,000 last quarter, has now moved to 70,000 this quarter. So there is growth in three regions, Bombay, Hyderabad and Bangalore. All three of them being high RPOC which is pulling the overall company up.
Damayanti Kerai
Okay, so maybe not at say 20% level or so, but we can assume better trend than what we saw in 1q2q or any quantitative indication will be helpful.
Abhinay Bollineni
Difficult to quantify because these are all different states and each state is growing differently. So I think what we are delivering we should get to, we should be sustainably growing.
Damayanti Kerai
Okay, and my last question is if I look at your Telangana cluster, I guess your growth number for revenue in last two quarters they were somewhere in high single digit to low double digit. So will that be the range to look for forward or as you mentioned there is headroom to grow better compared to what we saw in last two quarters.
Abhinay Bollineni
I think we’ve always been indicating that. Telangana is a very mature market with significant bed capacity and bed capacity by Kim’s and other hospitals. As and when we add new hospitals we might see this high single digit move up to a double digit number. But otherwise just having mature hospitals to grow at a double digit number from that cluster will be difficult. But this year because we Are adding Kondapur, we’re adding Kompali. And subsequent years, we’re adding few more facilities. We might see double digit growth for the next three, four years. But again moving forward after that it will be difficult to deliver double digit growth only from Telangana.
Damayanti Kerai
Got it. My last question is actually a clarification. Did you mention for Telangana you are looking to reach occupancy of 75, 80%. And if yes by when it will.
Abhinay Bollineni
Eventually get there maybe another three, four years on the current occupancy. But as we keep adding more beds, occupancy will percentage will fall down by absolute numbers it will consist.
Damayanti Kerai
Okay, thank you. Thank you for your answers. I’ll get back in the queue.
operator
Thank you. The next question is from the line of Chirag Gupta from Allegro Capital. Please go ahead.
Chirag Gupta
Hi, thanks for taking my call. I just wanted to know the net. Debt position. As of December 31st.
Sachin Ashok Salvi
So Chirag, it is about 2850 or 4 at a consolidate level as on. 31St of December 2023.
Chirag Gupta
Okay. Yeah, thanks a lot.
operator
Thank you. A reminder to all participants, anyone who wishes to ask a question may press star and one on their touchstone telephone. The next question is from the line of Karan Vora from Goldman Sachs. Please go ahead.
Karan Vora
Thank you for taking my question. So my first question is an extension of previous participants question with respect to top five insurer empanelment. So can you highlight how many of the top five have been empanelled for Kerala cluster and what’s the progress on Bangalore? I know it’s early days for Bangalore but still just getting some sense. And what are the targets of reaching those top five insurer impanelement if they have not already been for Kerala.
Abhinay Bollineni
So on Kerala I think Kannur, we are done with most of the impairments. Kolam might take another two quarters before the top five are fully done. Bangalore should take another six months to nine months before the imperilment.
Karan Vora
Okay, got it. And Kolam, how many are already on board?
Abhinay Bollineni
Top five. None. Maybe one I think, I’m not sure.
Karan Vora
Okay. Okay. And kannur, all top 5 are done. Got it. And the second question is with respect to Bangalore. So in the previous presentations, previous quarters presentations, the kind of capex per capex we have given for Bangalore, it seems like these are asset light, you know, expansion. So any, any rental number which you have, which you are calling out or as a percentage of sales is also fine. Which we might be paying to to the owners of those land or proper.
Abhinay Bollineni
The total rent that we have the Commitment is around 2 and a half crores per month for both the assets put together. Half of the Mahadevampuram asset is owned by the company. The remaining half we pay these electronic cities on the revenue share model. But I think the fixed Commitment is towards 2 and a half crores a month.
Karan Vora
Okay. And sorry, you mentioned electronic cities half owned, right?
Abhinay Bollineni
Correct.
Karan Vora
Okay.
Abhinay Bollineni
Is half owned electronic cities on revenue share.
Karan Vora
Okay, got it. And the revenue share will be over and about the 2 and a half crore per month or fixed rentals.
Abhinay Bollineni
It is part of it.
Karan Vora
Okay. Okay, got it. And the last question is with respect to R Pop. So whatever R Pops with, I think for Bangalore we’ve already mentioned that there could be some moderation. But for other geographies, whatever R Pop we see in Q3, should that be considered as the new base of RPub?
Abhinay Bollineni
Yeah. For Karnataka and Maharashtra you should still give it more time before it stabilizes. But other clusters. Yeah, you should more or less take that.
Karan Vora
Okay, got it. Thank you.
operator
Thank you. The next question is from the line of Kunal Randaria from Access Capital. Please go ahead.
Kunal Randeria
Hi. Good morning. So it’s on your pay mix. So your Aurogi SRI contribution has gone down. Obviously that is because incremental revenues are largely coming out of an outside of Telangana market. So as they expand in other states, are you also getting impaneled for those state schemes?
Abhinay Bollineni
No, we only are impending state schemes in Andhra, not in other states.
Kunal Randeria
Okay. It’s only in Andhra. Okay. So. So your institutional bed contribution, revenue contribution should keep coming down over the years.
Abhinay Bollineni
Correct? From state government skills. Sure, sure.
Kunal Randeria
That’s very helpful. Secondly, again, you know on rpob, I’m not sure if it’s covered earlier or not. But in the last couple of quarters Andhra cluster seem very sharp. RPOB as well as ARPP growth. But there has been some moderation as far as the volumes are concerned. IP volume. So just want to understand what is happening over here.
Abhinay Bollineni
Even volume growth are growing very healthy. It’s just that last quarter we had a strike with the state government on Arugastri payment. Because of which almost for 45 days, 45, 60 days we had one month. Arugasti was completely banned in all hospitals. And 15 days before and 15 days later it took time for us to scale down and ramp up. So that disruption cost decline in volume. But otherwise we don’t see any issue in volume growth or revenue growth in arp.
Kunal Randeria
Got it, sir. And the reason for ARPP or ABAP growth, I mean is the case Mix changing very heavily or just the payer mix.
Abhinay Bollineni
Even the case mix is some hospitals.
Abhinay Bollineni
We have started encore services like in Ongoal. In Vizag we have started Onco services. Transplant is picking up in a big way in Andhra. So it’s a little bit of everything. Case mix, pricing and payer mix.
Kunal Randeria
Sure. Just one more if I can. So I noticed in this time down in the presentation there is no slight expansion plans. So should I presume that what was there last time is the same thing?
Abhinay Bollineni
Yeah, you should assume the same thing.
Kunal Randeria
Okay.
Abhinay Bollineni
We have no new hospitals in addition to what we have already announced.
Kunal Randeria
Right sir? Right. So Chennai is the only one that you would have announced. So other than that there’s nothing much coming. Thank you.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on their touchstone telephone. The next question is from the line of Anshul Agarwal from MK Global. Please go ahead.
Anshul Agrawal
Hi. Thank you for the opportunity. Few clarifications in the net debt number. That you have mentioned does that include all the payments made to our partners for bringing down the minority stake to 9%? So.
Sachin Ashok Salvi
Yes. So it is a net debt position as on 31st of December 2025 it includes all the debts which we have raised for for the expansion for minority we do not get any. We have not raised any debt. But of course it is out of the internal sources. So to fund the internal sources you have to result in working capital requirement.
Anshul Agrawal
So that’s exactly what I want you to understand. There are no payments due to get that minority stake to 9% which are. Not already been paid.
Sachin Ashok Salvi
Yes,
Anshul Agrawal
perfect. Second question sir that I had was is there any update on the new units that were going to be commissioned in ap? I thought in the last slide I think we mentioned Ongoal was supposed to get 50 incremental beds added in Q3 which in the AP cluster doesn’t seem to have shown up. And Anantapur is expected to be commissioned in the current quarter. Could you help us with an Update on these 2?
Abhinay Bollineni
50 beds got commissioned. That’s what I just mentioned. 3, 4 a week ago Anantpur towards the end of March we should commission the cancer center and add an incremental 75 beds off the 250 beds that we are supposed to add. Rajmandari were again stated towards the end of Q4. Kondapur 2 end of Q1 we are stated to start and Kompalli also from March we will start commission. The hospital.
Anshul Agrawal
Also just wanted to Check. There’s a dip in occupancy and profitability in the Kerala cluster. I understand seasonal trends etc. But given that we are in the ramp up phase in these two hospitals, any particular reason to call out for this dip in occupancy and profitability in the Kerala cluster?
Abhinay Bollineni
One of the hospital at Kerala. Both the hospitals are doing extremely well. In one of the hospital we had some one time expenditure which we had to write off in the last quarter. But otherwise both hospitals are doing extremely well. Kollam is ramping up. Sorry, Kannur is ramping up quite well. In fact December Jan have been even more promising than the results of Q3. Kolam is just 67 months old. It should break even in the next 12 quarters.
Anshul Agrawal
Got it. Just one last question from my end. In the previous con calls we had mentioned that because of the ramp up we are seeing at least on a monthly run rate basis expectation is around break even somewhere in the month of January. Are the trends suggesting the same or should we wait for end of Q1 27 for Thane to break even? The trends are suggesting that towards the.
Abhinay Bollineni
End of Q4 we should break even. But just to be on the safer side we have also indicated end of Q1 but right now things are going quite positive. There are some incremental costs that we are incurring on a month on month basis. But it’s going better than planned.
Anshul Agrawal
Correct? Just one last question. If I can squeeze in for the Bangalore cluster, is Q3 an apt indicator for the overall cost for both hospitals? Or are there certain costs cost that you would think would sort of crop up in Q3 with the electronic city hospital? Or is it a full quarter of costs that have come up in the Bangalore cluster in the current quarter?
Sreenath Reddy
Yeah, I can answer that. The electronic city, the cost what you are seeing is only for one month, right? Because we just started in the month of December. But for the Mahade unit, the full cost. Yeah. Year on year there could be some smile minor increase in overall cost to the extent of 7 to 8%. But having said that most of the costs have been factored in electronic city per se. The cost what you see is just one month.
Anshul Agrawal
Great. Thank you so much.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star N1 on the Touchstone telephone. The next question is from the line of Rahul Jivani from IIFL Capital. Please go ahead.
Rahul Jiwani
Yeah. Hi sir. Dr. Abhinay, you indicated about Telangana being a mature market and a competitive market. But if we look at our occupancies, our occupancies are still, let’s say for first nine months on an operating bed basis hovering somewhere around 50 to 53%. So with the scope which we have in terms of driving occupancy improvement shouldn’t our IP volume growth be slightly faster within the Telangana cluster? Because first nine months the IP volume growth has been only let’s say low to mid single digits. So just your thoughts in terms of how you see these dynamics playing out with respect to occupancies in Telangana and the potential for IP volume growth.
Abhinay Bollineni
Rahul, if you actually look at the Telangana occupancy. So occupied beds divided by the operational beds. Correct? Sure. These are around 50, 55%. Sorry, 52.5%. Now in this. See in second bed we don’t. We are renovating almost 200, 250 beds which will only get commissioned in the next financial year. So actually on the beds that are available we are running at 80, 85% occupancy. It’s just that those beds it shows in the census beds but they are under renovation. So that is one reason why we are not able to show more volume growth in the Sikinabed facility. As far as Kondapur is concerned it is already running at 95% 100 occupancy. And we are losing patients because of space constraints. Once we move to the new facility there will be significant volume growth in that hospital.
Sunshine are the other two assets. And they’ve been growing consistently on a year, on year basis. Since the bed capacity is spread over four facilities. Sunshine has been growing on a healthy basis on a year, on year basis, even on volume. These two facilities where there is more growth potential, we are limited with bed capacity which should get sorted by one next quarter and one maybe in the next 18 months.
Rahul Jiwani
Okay. Sure. Sure Dr. Mine. So basically 2nd Rabad and Kondapur. So when these 200 beds which you are renovating at 2nd Rabad, when would they come online?
Abhinay Bollineni
Towards the end of next year. So by end of second half of Next Financial.
Rahul Jiwani
You mean FY27. Sure, Dr. Abhinay. And with respect to the new units your presentation talks about the fact that the doctor onboarding at the thane hospital is 90% over. So can you also talk about in terms of let’s say the doctor onboarding for the two Bangalore hospitals in terms of where are we in terms of our targets for doctor additions in these two hospitals?
Abhinay Bollineni
Yeah, I’ll let Nitish also take that.
Sreenath Reddy
Yeah. Rahul. Yeah. Rahul. Most of the onboarding of the doctors in all specialties being done in both the hospitals. Probably very few people might be added in the future as the volume grows. But at this point of time all quaternary care specialities, tertiary care specialities, all doctors are on board. We have close to 200 doctors between two hospitals already on board. Sure. Dr. Anita. So, so 200 doctors. Hello.
Abhinay Bollineni
Sorry.
Sreenath Reddy
Good.
Rahul Jiwani
Yeah. So I was saying 200 doctors you have combined across both the hospitals as of now.
Sreenath Reddy
Yeah, that’s right. Close to 120 in Madhyapura, another 90 doctors in the electronic city.
Rahul Jiwani
Okay. And so. So so far the first Bangalore hospital, Mahadevapura. Now the costs or let’s say the the losses should keep coming down. But for electronic city given that we only had one month of contribution maybe for electronic city we might still see an increase in loss going into fourth quarter.
Sreenath Reddy
Not increasing the losses because the December month, January month, January has come down in.
As the revenue ramps up which we are confident of, the losses only should come down because all the Doctors, all the cost 6 costs have already been done. So it’s all a matter of the revenue ramping up. And the revenue ramp up in electronicity has been good. And we are confident that the losses only will come down and eventually lead to the breakeven like indicated by Dr. Abhinay. We are targeting somewhere in the second quarter of the financial year.
Rahul Jiwani
Sure, sure, sure. And Dr. Abhinay, you talked about Thane and Mahadevapura achieving break even in one Q on Electronic City in third quarter of fiscal 27.
So just to clarify, you mean breakeven for the quarter or let’s say break break even on run rate basis in these quarters.
Abhinay Bollineni
Towards the end of the. Quarter we will break even for that quarter.
Rahul Jiwani
Okay, you will break even for the quarter. So Thane and Mahadeva Pura by 1QFY27 and electronic by 3Qfi. When you said break even for the quarter.
Abhinay Bollineni
Correct, correct. What we are indicating when we say. Doctor onboarding is completed, the doctor onboarding is a continuous process even in mature hospitals like in Telangana and Andhra. So what we have completed is for phase one of growth which is the first 24 months of growth. We will keep adding more doctors for more growth in the future. With all these hospitals and large format hospitals there are more than 300 beds in each location. So it will be an onboarding process before we onboard doctors. And that’s why cost keeps going up. Sometimes in between we find good doctors, we take them and the cost goes up.
Breakeven might get delayed here and there, but as long as the revenue is growing and the losses are diminishing, it’s in the right direction.
Rahul Jiwani
Sure. And given that all these three hospitals are growing, can you also talk about in terms of the operationalization plan for incremental bedside? These three hospitals, I think we have.
Abhinay Bollineni
Now enough capacity for us to break even. Our focus is to prioritize breakeven in all of these hospitals. We have enough capacity operationalized in all of these hospitals. All the capex for all the three hospitals are fully done. There is no incremental capex that we have to incur for more beds up to each of their capacities. It’s about adding more manpower which is not going to take more than 2, 3 months. As and when we see the occupancy ramp up happen and we feel there is pressure on the system to add more beds, we will operationalize the ramp.
Rahul Jiwani
Sure. And last question before I join back. So now obviously if we look at these four hospitals, Nasik, Thane and the two Bangalore ones, maybe in Thane and the two Bangalore hospitals we have seen a very good traction in terms of revenue ramp up. But Nasik, let’s say still continues to be slightly behind in terms of ramp up. So do you think that maybe, maybe a better strategy is to have or add hospitals largely in tier one markets where let’s say ramp up is relatively faster, easier as compared to let’s say some of these tier two, tier three markets like NASA.
And if you can also talk about where let’s say NASA hasn’t gone according to our plans. Thank you.
Abhinay Bollineni
So Nasik. Yes there is, you know it took us 13 months to achieve breakeven and in January we are ebitda positive in Nasic. Rahul. We’ve achieved almost 8 and a half crore revenue and we turned EBITDA positive. We got empowerment of ECHs in Nasic. We should start being able to take patients from next month. The only difference in tier 2 and a metro market is the opportunity size is the same. In fact there is more opportunity in tier 2 because of lesser competition. The ability to consolidate work there is much easier. But the only challenge is because the peer profile in tier two markets you have a mix of cash insurance and corporate insurance and corporate because they take time and it’s a very price sensitive market.
That is why the delayed ramp up. But otherwise fundamentally we don’t see any issue in Thane or Bangalore because these two are very high cash paying markets. Even though there’s insurance impairments are getting delayed. They are getting substituted by cash business. Which may not be the case in smaller towns like Nasic. But now last month breakeven at the 13th month of operations has given positive, more positive feedback in the entire system. Now with the impediment of corporates such as CGHS and ECHS in the next few months we don’t see any fundamental challenge in the growth story of Nasiq.
It was a little slow, likewise in Nagpur. But overall things in Nagpur have turned around significantly well in 24, 36 months. So Nasik, we don’t see any. We have similar confidence levels for Nasik.
Rahul Jiwani
Sure, Dr. Binay. So with respect to the ramp up which we have seen on Onco and transplants in these other three hospitals and the fact that for the Nashik market obviously we cannot do Onco. So has that also been a reason why Nasik has seen a slightly slower ramp up as compared to these other three hospitals?
Abhinay Bollineni
No, I wouldn’t say that. Because even in Thane we have not done any transplant work yet. It’s just that even the broad specialties we have just because of delayed impairments from insurance which is almost 30% of the business and being a price sensitive market and the remaining 30% of the business there is from public sector companies. And only 25, 30% of the business is from cash. And with only one payer to scale up in tier 2 markets is a challenge. Like in the case with Andhra and all our hospitals in Andhra. So if you actually look at just the cash to cash business of Kim’s in NASIC today versus the other competition in nasic we’re probably the largest in terms of cash as a payer in that market already in less than 12, 13 months.
Rahul Jiwani
Okay, sure. Understood. I will join back with you. Thank you.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star n1 on their touch tone telephone. The next question is from the line of Alankar Garude from Kotak. Please go ahead.
Alankar Garude
Hi. Good morning everyone. So on a like for like basis how would you compare your tariffs in Mahadev Kura and Electronic City with other similar hospitals in those respective micro markets?
Sreenath Reddy
Yeah. So between Electronic City and Madhyapura internally there is no change in the pricing. Both offer same pricing. In respect to competition we are slightly priced at least. At least. I would say that around 15% lower in the initial days. We may rationalize it in the coming few months. But yes, we will be slightly, at least for some more time will be slightly lower compared to competition.
Alankar Garude
Got it, sir. The second question was, can you take us through your thought process behind entering Chennai, which are the leading factors that drove this decision? And maybe a second question there would be, are you open to looking at further expansion in Tamil Nadu?
Abhinay Bollineni
So like we earlier mentioned, we have always felt there is a lot of micro markets within these larger cities which are underserved like in Bangalore, like in Bombay, we felt there were many micro markets underserved. And very clearly with the way things are ramping up, you know that the thought process of these being underserved has turned out to be true. Likewise in Chennai, we feel there are at least 2, 3 micro markets visibly underserved. Today we want to focus on being able to start new hospitals there and attract talent. And again, strategically, a lot of patients from Andhra go to Tamil Nadu for treatment.
A lot of the patients, people in Tamil Nadu, at least 20% of the population there are Telugu speaking. The brand is well established. The Dr. Culture among the Dr. Community there is a strong goodwill. And even now with Bangalore and Daniel success, that goodwill is even getting stronger. Because even outside the core markets, we’ve been able to do quite well. So given the size and the opportunity for consolidating one more state, that’s the reason why we looked at Chennai earlier. We looked at Chennai but we didn’t get the right land passes. Now that we got a very good land parcel, we said let’s start the story.
And that’s the only missing link in consolidating South India. So with Andhra, Telangana having such strong leadership position now with Karnataka, Bangalore both hospitals doing well and adding more facilities, Kerala doing well and adding more facilities, the only missing link in the south story would be Tamil Nadu. And that’s why we thought it’s. It makes logical sense for us to enter.
Alankar Garude
So does it mean, Dr. Abhinay, that apart from possibly looking at more expansion in Chennai, you would also be open to Tamil Nadu? The other cities in Tamil Nadu or would it be just Chennai for the next few years?
Abhinay Bollineni
I think we’re pretty open. We are not closing our mind on the other cities of Tamil Nadu. But at this point in time we have not looked at anything. We are only focusing on Chennai as a market.
Alankar Garude
Got it. And similarly, if you can comment about Karnataka State as well, we have two in Bangalore with more in the works. Any plans of looking at other markets in Karnataka?
Abhinay Bollineni
Nothing. I think at this point in time. We have enough on the table for Bangalore. We want to do a few more hospitals in Bangalore. We have a land. This is Already part of the company. We want to start work on that hospital too. We feel we can add more bed capacity in Bangalore. The kind of Dr. Traction we’ve got with these two facilities. We’re pretty confident that with more facilities and more micro markets being underserved, we should be adding more capacity here and expanding this after that then we could probably potentially look at other tier 2 markets in Karnataka.
Alankar Garude
Got it. And one final question from my side. In the past you also spoken about adding more hospitals in Mumbai. Can you share any update on your plans for Mumbai city?
Abhinay Bollineni
Mumbai city, we’re still exploring all the opportunities that are coming our way. Nothing concrete at this point in time but like we said, overall we believe there’s a large footprint that we can create in Bombay city. We are working towards achieving that over a period of time. But for the next 12 months, I think our focus is to first ensure all the hospitals that we’ve commissioned and we are going to commission in this financial year to ensure that they all break even and there is no drag on the system.
Alankar Garude
Got it. So basically any expansion plans, if at all in Mumbai are unlikely to be finalized at least for the next 12 months?
Abhinay Bollineni
I wouldn’t say that. But yeah, we’re definitely exploring opportunities. As and when something good comes up, we might take it up. But our priorities on commissioning the current, I mean operationalizing and commissioning the current hospital.
Alankar Garude
Fair enough. That’s helpful. Thank you. And all the best.
operator
Thank you. A reminder to all participants, anyone who wishes to ask a question may press star N1 on their touchstone telephone. The next question is from the line of Rahul Jiwani from IIFL Capital. Please go ahead.
Rahul Jiwani
Yeah, sir. Now let’s say large part of a current expansion is nearing completion. So the only large one which we have is Kondapur which should get commissioned. So how do you see your overall debt now trending from a next one to two year perspective? Has the debt number peaked out?
Abhinay Bollineni
Yeah, I think for the current expansion. The debt numbers have peaked out. If we add more new facilities then it could potentially go up. But for now we’re almost done with most of the capex that we planned for three years ago.
Rahul Jiwani
Okay, sure Dr. Abhinay. And given that you said focus over from, let’s say our next one year perspective is to scale up these existing new hospitals. That would mean that that should moderate unless and until we don’t announce anything large in any of the new markets.
Abhinay Bollineni
Correct. Unless we don’t announce anything larger thing that should moderate.
Rahul Jiwani
Okay. And are we looking for something? Let’s say a largest kind of an opportunity in any of the other markets apart from let’s say a Mumbai market. And what. What let’s say excites you still about Mumbai.
Abhinay Bollineni
I think the way Tania has ramped up and the kind of confidence we’re getting in Bombay. It’s a pretty underserved market. And I don’t see why we shouldn’t consolidate and add more capacity. There is enough opportunity for 2, 3 players to coexist in Bombay as a market. So I think opportunity is quite large. And we were waiting for us to do well in the first few Oscars. Nagpur, Tane, Nasik were pretty Nagpur anyways is doing extremely well. But Thane also is ramping up. Well, Nasik were pretty confident with the way things are moving. So I think overall Maharashtra being able to consolidate over the long run is a good opportunity Beyond South.
Rahul Jiwani
Sure. Dr. Minayan, let’s say these opportunities which you might be evaluating in Mumbai. Would these be asset heavy or asset light expansions for you?
Abhinay Bollineni
I think our preference has largely been. To own land and building, Rahul. So I think it will take into account owning the land and building. Doing an asset light model may be challenging in a city like Baggio. Sorry. In Bombay the rental cost will be significantly higher. It will be difficult for us to absorb that cost. But if we are referring to the opportunity in Ghatkopar, that’s not true. We are not doing any of that. Any hospital in Ghatkopar at this point in time.
Rahul Jiwani
Okay. And apart from let’s say the organic expansion, any potential M and A opportunities in any of the markets which might. Where you might be interested in.
Abhinay Bollineni
Nothing sizable. There are a couple of small acquisitions. Potential. Potential acquisitions that have come our way. But nothing significant and sizable at this point in time.
Rahul Jiwani
Okay. Sure. Dr. Abhinay, thanks for answering my questions.
operator
Thank you. The next question is from the line of Alankar from Kotak. Please go ahead.
Alankar Garude
Hi. Thanks for the follow up. Just one question. On Kondapur, you said you are operating at 90, 95% occupancy. Now with this new hospital coming up, how should we assume a ramp up of it? And what would be the plans for the existing hospital once the new building. Is up and running in six months.
Bhaskara Rao Bollineni
Once the new building is ready we.
Abhinay Bollineni
Will either we will shut down the old hospital and I think 20%, 20, 25% year on year growth at the new Kondapur facilities is something that we are extremely confident about.
Alankar Garude
So in terms of cost, would there be duplication of Cost for six months. And I mean how should we look at the EBITDA for both the hospitals combined say over the next year or so.
Abhinay Bollineni
There will be some duplication of cost. Like when we transition from the old sunshine to the new facility. There has been some duplication that will continue to be there in Karnapur also for three to four months before we fully shut down the old facility.
Alankar Garude
Got it. And any sense on the monthly fixed cost at the new facility?
Bhaskara Rao Bollineni
It’ll only be incremental.
Abhinay Bollineni
It’s. We’re moving one of our old facility into a new facility. So we will obviously a lot of new doctors will come in. A lot of new incremental staff to service those patient volumes will come in. So it probably be higher than higher by around 25% from the current fixed cost. 25, 30%. It also depends on you know, when the new doctor teams are onboarding and stuff.
Alankar Garude
Got it. But given that it’s expected to be operationalized soon, I mean we would already be in that process. Right. Of.
Abhinay Bollineni
It’s a very large. It’s a very large facility. It’s an 850 bedded hospital.
Chirag Gupta
So.
Abhinay Bollineni
And the current facility is only 250 beds. So it will. Onboarding will happen in. In phases. It will not happen on. On day one.
Alankar Garude
Okay. Okay. Okay. So significantly higher beds but just 25% higher cost as you mentioned. Got it.
Rahul Jiwani
Yeah.
Alankar Garude
That’s it. From my side. Thank you.
operator
Thank you. The next question is from the line of Vedant Nilekar from ICICI Securities. Please go ahead.
Vedant Nilekar
Hi. Am I audible?
Abhinay Bollineni
Yeah, you’re audible.
Vedant Nilekar
Thank you for this opportunity. I just had one question on the CAPEX front. Now that most of our expansion is done and whatever further bed capacities that we are going to add, what is our expected capex figure for FY27 and 28?
Abhinay Bollineni
Sorry? Capex for 27 and 28. 27. The full closure on Capex will be another incremental. 500 to 600 crores.
Vedant Nilekar
Okay.
Abhinay Bollineni
And for 28 we have not yet put a plan together because there’s no new hospital that we’re commissioning that year. It will just be maintained CAPEX of the adjustment.
Vedant Nilekar
Okay. Got it. Thank you.
operator
Thank you. Ladies and gentlemen. That was the last question for today. I now hand the conference over to the management for closing comments. Over to you sir.
Bhaskara Rao Bollineni
Yeah. Very good afternoon. And we have done a lot of knowledge by asking your questions. Let me clarify certain things beyond what all in addition to what Sachin Abhinay and Sinath and Nitish clarified the debt portion Is even though we have 2800 we are supposed to get nearly 600 crores from our credit hours from mostly the state and central government which are sent for the payment. But because lack of money there that will definitely will come. There is under as I mentioned that we are already at 200 crores cash as of now with us. So with these things I think moving forward we may not see any incremental debt will be there on the books and it will start coming down quarter on quarter.
If there is any new opportunities expansions which we are having that we will able to look into the other means of funds not through debt. As far as the doctors on board is concerned the initially we started few specialties and it is an ongoing process of expansion of the new facilities with in the world facilities like Nellore and other places we are adding a new specialties. When we add new specialties then the doctors keep boarding that is given incremental revenue instantaneously because these are all the already existing facilities There will not be a requirement of any capex and these are the things which we are doing for the growth so that the growth we can expect in all the hospitals There is a potential in every hospital that needs to add a little more of new specialties.
And as one of the calls I said in about a year back that in three years we will able to double our top line which we are on the better than what I promised. So the whatever the things what we do it will always be for the benefit of the investors. And also we consider the many of you have been worried about the debt ratios so we are very very keen and confident that we will do good and in the next few years we expect a better growth than the last two years. Thank you. Thank you very much.
operator
Thank you. On behalf of IIFL Capital Services limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.