Hi, good morning, everyone. This is Rahul from IIFL Capital.

I welcome you all to the fourth quarter earnings conference call of KIMS Hospitals being hosted by IIFL. From KIMS, we have with us today, Dr.

Bhaskar Rao Bollineni, Founder and Managing Director; Dr. Abhinay Bollineni, Executive Director and CEO; and Mr.

Sachin Salvi, CFO. Over to you, sir, for your opening comments.

Good morning. Hearty welcome to all of you.

The closure of financial year 2026 coincided with the beginning of the ongoing Gulf War with ramifications across many countries in the world, including India. The recent appeal by Prime Minister for austerity measures underline the grim scenario.

Let us repeat the call of the Prime Minister and ensure optimum utilization of resources till normalcy is restored. Let us hope and pray that better senses will prevail, and war will soon come to an end.

In the present world, war between any two countries is impacting many countries because of their interdependence. I am aware that all of you are eagerly awaiting our financial results.

I'm happy to announce that KIMS registered a stable growth. Quarter four financial year '26 highlights: total revenue of INR 1,084 crore, a growth of 35.3% on year-on-year and 8.1% on quarter-on-quarter basis.

EBITDA of INR 216 crore, a growth of 6.8% on year-on-year and a 5.9% on quarter-on-quarter basis. EBITDA margin at 19.9% versus 25.3% in quarter four financial year '25 and 20.4% in quarter three financial year '26.

PAT at INR 33 crores in quarter four financial year '26 against INR 106 crore and INR 52 crore in quarter four financial year '25 and quarter three financial year '26, respectively. Financial year '26 highlights: total revenue of INR 3,931 crore, a growth of 28.2% on year-on-year basis.

EBITDA of INR 828 crore, a growth of 1.6% on year-on-year basis. EBITDA margin of 21.1% versus 26.6% in financial year '25.

PAT at INR 242 crores in financial year '26 against INR 415 crore in financial year '25. Consolidated earning per share for financial year '26 of INR 6 not 6.03, a decline of 37.2% on year-on-year basis.

Quarter four financial year financial highlights consolidated: consolidated revenue from operations is INR 1,075 crore, a growth of 34.8% on year-on-year and a 7.7% on quarter-on-quarter basis. Consolidated EBITDA pre-Ind AS is INR 131 crore, a decline of 33.5% and 32.3% on year-on-year and quarter-on-quarter basis, respectively.

Operational highlights quarter four financial year '26: average revenue per operating bed grew by 13.7% and 1.7% on year-on-year and quarter-on-quarter basis, respectively. Average revenue per patient grew by 14% and 3.5% on year-on-year and a quarter-on-quarter basis, respectively.

IP volumes grew by 17.9% and 4% on year-on-year and quarter-on-quarter basis, respectively. OP volumes grew by 30.1% and 4.1% on year-on-year and quarter-on-quarter basis, respectively.

Financial year '26 operational highlights: average revenue per operating bed grew by 14% on year-on-year basis. Average revenue per patient grew by 11.4% on year-on-year basis.

IP and OP volumes grew by 15.4% and 25.4%, respectively, on year-on-year basis. Thus, the operational parameters demonstrated a consistent upward trend.

It augurs well that new units at Bangalore, Thane, Kerala, Nashik, and Seethammadhara Vizag contributed significantly to top-line growth. The mature units maintained healthy growth pattern.

Expansions necessarily involve heavy expenditure, and it stains the profits in the initial phase. Likewise, the profit of the company for the year is impacted, though growth remains stable.

However, the new units also will turn tight sooner than expected, and the prospects are already visible. '25-'26 has been a year of expansions.

We opened one more hospital in Hyderabad at Kompally, two in Guntur, two in Maharashtra at Thane and Sangli, two in Bangalore, Mahadevapura and Electronic City, and one in Kerala at Kollam. We also opened fertility centers at Hyderabad and Guntur.

Expansion has no meaning without clinical excellence, and excellence is incomplete without empathy. All these new units reflect above concepts of excellence and empathy and already started making great imprints in their respective zones.

I'm happy to state that we accomplished an important milestone of completing 10,000+ successful brain tumor surgeries at KIMS. An exclusive cancer block was recently inaugurated at KIMS Hospital, Ongole, to meet the medical needs locally without patients running far and wide.

We've opened KIMS Cuddles, a mother and child unit, at Nellore. On 4th February, 2026, International Cancer Day program was organized to promote awareness.

Megastar Padma Bhushan Chiranjeevi took part as chief guest. Marking the International Lupus Day, KIMS Hospital, Secunderabad, organized a unique ramp walk featuring lupus warriors on 11th May, attended by family members and healthcare professionals across the city.

This happens to be the fifth such lupus ramp walk initiative in Asia. Yesterday, that is 7th May, was World Hypertension Day.

Hypertension or elevated blood pressure is a common condition with a prevalence of one in three adult Indians. This condition is dangerous, but silent, and causes a huge disease burden in the forms of heart disease, brain stroke, renal failure, eye disease, and peripheral vascular disease.

The danger is more since it often produces no symptoms by itself until target organ damage is already established, and so it is appropriately called a silent killer. Large studies have shown that the early detection and appropriate management can prevent the adverse effects of this disease.

Early detection relies on screening programs across the populations and education to follow healthy lifestyle. Thus, high blood pressure is the gateway for many health issues, and timely action will enable mitigate many problems.

Considering the paramount significance, we gave a call to all our unit heads across the group to organize BP check-ups in a massive scale of 1 lakh at random places like railway stations, bus stands, offices, etc. All the units spontaneously responded to the call in a resounding way, despite the short notice, and accomplished 2,04,000 numbers, more than double our expectations, due to vigorous campaigning.

Besides the numbers, it succeeded in creating awareness on a wide scale. We strongly believe that prevention is better than cure, and this step demonstrates our philosophy.

Being a healthcare professional, I thought it fit to apprise you also about the ill effects of hypertension on this occasion. Finally, it is said that there is no happiness in medicine, and there is no medicine like happiness.

I thank you for continued support and trust. Thank you very much.

Rahul, you can open it for

Yes. Rahul, fine.

Hi. Good morning, sir.

My first question is regarding this bed additions changes in the presentation. Earlier we have a lot of bed addition in Andhra Pradesh, which is not available now, and also Telangana, Kondapur is relatively elevated.

Is there any changes in plans, sir? Also timelines are not available.

How do we see this thing now?

Yeah. Hi, Balakrishna.

This is Vijay here. The change is only because of we are planning for a QIP in a month or two.

What has happened is to align with the council's, the prospectus and everything, we have given this time only the information which is being informed to exchanges and all. The earlier plan is on track, and we will update the presentation next quarter.

Sure, sir. Thank you.

Sir, and secondly, in 2025, '26, we have opened a lot of new assets. What is the contribution of those assets in the current revenue and what is the EBITDA range, mostly they are in EBITDA negative.

What could be the approximate percentage of EBITDA?

For quarter-on-quarter basis if you see, the mature units for us remains in a steady position of EBITDA of 30% approximately. New units, which are recently started, for Karnataka, specifically, the PEST hospital, there is initial drag, that is only taking away the EBITDA.

This is Sachin.

[crosstalk]

In terms of the numbers, if you are asking out of the total revenue of around 1,085 crore, the mature units in this quarter has contributed almost 862 crore of revenue, and the balance revenue of about 224 crore is from the newer units. Newer units we mean the units which are in operations for less than 1 year as on the date of financial statement.

Whereas the EBITDA which we have reported almost 216 crore in this quarter, out of that 250 odd crore is from the mature units. To say that almost 29, 28.5% or 29% of EBITDA margin from mature units we continue to maintain.

As far as the newer units for the current quarter, the EBITDA erosion is to the extent of about 32 crore. This is roughly, or this is accurately in the terms of numbers for the current quarter.

Yeah. Thanks a lot for the explanation.

When do you think, lastly, that we can go to previous EBITDA numbers as these assets matures? When we can get those numbers, maybe down the line 1 or 1 year or 2 years?

Or as we are expanding rapidly every year, the EBITDA margins will settle at this range for the next 3, 4 years,

or? I think Vijay is

Yeah. Please go ahead, Dr.

Abhinay.

Okay. The better way to look at it is on a cluster-on-cluster basis.

Every cluster, we are now disclosing the EBITDA margins at each cluster. Because we are adding so much bed capacity in different clusters, there will be some depression in EBITDA numbers.

As long as we're able to grow that on a quarter-on-quarter basis, that's the direction one should look at. That's the guidance that we'd like to give.

That's all. Thanks a lot.

Yeah. Thank you, sir.

Thank you for the opportunity. My question is related to the new units loss trajectory.

Can you throw some colors on the quarter-on-quarter losses on Nashik, Thane, and newer Karnataka units?

Nashik for Q4 is around 1 crore loss. Thane is around 5 crore loss for Q4.

The rest of the losses are from Karnataka. I think losses in Maharashtra have narrowed down to just 6, 7 crores now from both the new entities.

Karnataka, because PEST just got commissioned in the month of Jan, there are some losses. In December PEST got commissioned.

Now that the ramp-up is happening in PEST, maybe towards the end of the year the losses from PEST also should narrow down. As far as Mahadevapura is concerned, the losses are in the similar range of Thane, which again will narrow down as soon as we get more and more insurance tied.

Yeah. Thank you.

Thank you, sir. My next question is related to the Karnataka geography.

Since we are new to the region and there are lots of bigger hospital chain like Apollo, Manipal in there. How do you see the market as compared to your core cluster like Telangana and Andhra?

Obviously, it's a new market, but we are very happy with the way the ramp-up has happened at Mahadevapura. Now it's 8 months old 8, 9 months old, we are doing an average of 17 crores a month based on Q4 numbers, and we have very clear visibility of how it's going to 25, 30 crores over the next 12 months.

We don't see any difference in how the ramp-up would have happened in a city like Hyderabad or in Bangalore. It's just that the timing for both the hospitals, there was a gap, and because of which the losses were expanded.

PEST, we took a little longer to commission. The only difficulty of late is the insurance empanelment.

Once that gets solved, I think we're pretty confident in all the hospitals that we commission.

Thank you, sir. I will come back in queue.

Hi, sir. Thanks for the opportunity.

Again, I also have a question on the new units. To be able to calculate margins, would it be possible for you to tell the revenues and the EBITDAs for Q4 for Mahadevapura, E-City, and Thane?

Mahadevapura,

you said is close to 17 crores per month. Does it come to around 51 crores?

No. Mahadevapura in Q4 is 49 crores.

PEST

is 17 crores. Thane is 47 crores.

Okay. Sir, could you also tell the losses individually for Mahadevapura and Electronic City?

Mahadevapura is 14. Electronic City is 25.

Thane is 5, and Nashik is 1.

Okay. Sir, Electronic City is 17 crores in revenue.

Sorry, I'm not sure if I got that correctly.

For the quarter.

Okay. Sure.

Thank you. That's all I wanted.

Hi. Good morning, everyone.

Sir, in the third quarter call, you had mentioned that debt has peaked out, and in the absence of any new expansion plans, debt should trend lower. Now then within a month, you announced the QIP.

Can you help us understand the reasons behind the planned 1,500 crore QIP? Does it mean that you have zeroed in on any new expansion plans?

Expansion plans, we are still exploring, Alankar. That's part of the overall strategy.

The idea is, now that the debt has reached its peak, close to 3 3,000+ crores, the idea is we retire some debt, and use the cash flow to do more greenfield projects, which anyways will take 3 to 4 years before they get commissioned. There are one, two small acquisition opportunities that can potentially come up over the next two quarters, but they're not significantly big.

They're around 400, 500 beds both put together. A large amount of this will go to retire debt and use the cash flow to fund greenfield expansion, which will anyways take 3 to 5 years before they get commissioned.

Which are these markets, Abhinay, you are talking about, for both the organic expansion as well as the acquisitions?

All of them are in our core markets. Karnataka, Kerala, Andhra, Telangana.

Mostly in these four markets.

Okay. Basically you will be retiring debt and then eventually will be pursuing the greenfield, given that the cash flow requirement for the greenfield will be more back-ended, retiring debt is something which is possible with the QIP.

Is that the way to understand this? Okay.

Right. Fair enough.

The second question is, qualitatively, particularly on the insurance empanelment, can you update us on the progress of the four relatively new hospitals, Nashik, Thane, and the two Bangalore ones? Vis-a-vis your initial expectations, if you can just highlight how each of these units have performed.

Thank you.

I think what we underestimated is the time it takes to now get insurance empanelments vis-a-vis how it was before. That has caused some delay in ramp-up.

Otherwise, overall, we're very happy with all the four hospitals, the way we've been able to get clinical talent. Had we got empanelments like we could have in the past, the ramp-up would have significantly been better than what it is today.

In spite of which, we are pretty happy with the trajectory of the revenue growth in most of these hospitals. As far as empanelments are concerned, Nashik, we've still yet to get Star, Medi Assist, and GIPSA.

For Thane, we finally got GIPSA, and Medi Assist and Star are almost through. That completes at least 70% of the volume of insurance, but we're yet to get the empanelment, but at least the negotiations are more or less through.

As far as Bangalore, it will take 3, 4 more months before we are able to get the empanelments done.

Just one quick follow-up there. You mentioned about delays in the insurance empanelment.

Was it more specific to FY26 and the standoff which happened with insurance providers for the industry, or this is something which we should expect to continue going forward?

I think there is a new council, GIC, which also got introduced in the same financial year. Because of that, there's led to a lot of confusion as to who empanels hospitals, will GIC do it, will companies do it directly.

That confusion also led to a significant delay in empanelling hospitals. I think eventually we'll have to figure out a way to ease this and ensure that once the new hospital is commissioned, within 6 months, 9 months, we are able to get empanelments done.

Got it. That's very helpful.

Thank you very much.

Hi, sir. Very good morning and thanks for taking my question.

Sir, my question is related to capital raise. I wanted to know your strategic evaluation on, let's divide it in two parts, say for example, one would be taking it from the market, it could be debt, or it could be QIP or any other source.

Second would be doctors participation model which you used to have earlier. What is the strategic evaluation point between these two to raise capital from these two sources?

Right now we have a debt of almost 3,000+ crores. We want to use the capital raised from the QIP to retire debt.

Most of the projects that we do, at a project level we put in an equity of 40% of the project cost, and 60 65% is debt. Now doctor participation is usually a very, very small amount and amounts to only 2 3 to 5% at best.

Okay. Got it.

In current expansion plans, do you evaluate this as well, this doctor participation model for future projects?

Doctor participation model is always open. Doctors are always open to invest as and when they feel like.

Okay. Got it, sir.

That was my only question. Thank you.

Thank you for taking my question. The first question is with respect to the Kondapur expansion.

I see that we've kind of increased the number of beds. Just any thoughts on the kind of CapEx we are planning, and what are the timelines?

When should these beds come online, and if they will come in phases, which is what we understand, then what will be the phase 1, 2, 3? What will be their timelines, and the CapEx for it?

We will shift into the new Kondapur facility starting in the first week of June. The new hospital will have 800 beds in total.

The old hospital we will completely shut it down. We will transition over a period of 1 month, but we may continue to run the old facility for 2, 3 months even after we transition, and then we'll shut it down.

The new hospital will have 800 beds, of which in phase 1, because we're already at an occupancy of 200 beds, and we need headroom for growth, we will commission at least 400 to 500 beds in phase 1. The remaining 300 beds, we will commission as and when the occupancy increases.

Got it. CapEx we've incurred for the whole project?

Except for I would say around 50 to 75 crores, which we will incur not in FY27, but in FY28 and beyond, which is to complete two additional floors, which we don't require at this point in time.

Sorry, 50 to 75, sorry, 50 to 70 crores?

50 to 75 crores, or we don't need it for the FY27, we may need it in FY28 or '29, based on how the ramp-up happens. Got it.

The second question is with respect to the Andhra Pradesh and Bangalore ARPOBs. Bangalore ARPOBs, I see, it looks like have risen significantly.

Even the full-year number shows some 85,000 on the deck, if I'm not wrong. What has happened, and is this the new base, or it's just a one-off where the mix was just too good, and you go back to the 70s number, which was originally envisaged?

Similarly, for Andhra Pradesh, what is the right run rate? Is 28,000 plus the new run rate, or 24 to 26,000 is the one which we should think as the normal run rate?

See, as far as Bangalore is concerned, 75,000 is a healthy number to assume. If you actually look at Q3, Q4, and full year, the ALOS keeps changing.

As the ALOS keeps changing, the ARPOB keeps moving up and down. For all models, we should assume 75,000 as a base, and work on it.

It will take time before the hospital settles down, because a lot of new programs are getting added, transplants are happening on an very aggressive way. For modeling purpose, you should just assume 75,000.

Got it. Andhra ARPOBs?

Likewise, Andhra also is at 26,000, 27,000 in Q3, and Q4 also remains the same.

Okay. Got it.

That's the base. That's the normal base.

Yeah.

Got it. Just a quick last question.

Maharashtra, what was the Q4 occupancy? Because the implied number, when I do it, it looks fairly high at 60%, 65% plus to arrive at that 52.1% number for the full year, right?

Is that a fair number, or is there some error?

Maharashtra is 60.5% occupancy for Q4.

Got it. Is that, again, sustainable, because it looks like a massive ramp-up from 35% in Q1 to 60% plus in Q4.

Should we assume a 60% or that kind of a number as the new base for Maharashtra occupancy?

That's the new base for Q4 for Maharashtra.

Okay. Got it.

That's helpful. Yeah.

Thank you.

Hey, good morning. Thanks for taking the question.

In Telangana and Hyderabad, particularly, which we do know is a more mature market, we saw IP volumes increase by 2%, whereas the overall revenue mix was increasing by 12% plus, right? Most of it is value-driven.

How do we sort of see this going forward in the next year or two?

Sorry, Abhishek, did you come back again?

Saying on a year-on-year basis? Yeah.

In Hyderabad, which is a mature market for the larger healthcare space, we saw the IP volumes increase by 2%, right,

and

the rest of it was driven by value. How do we sort of see this number going forward in the next year or two?

I think because as a cluster Telangana now, we have added Kompally, which got commissioned 2 months ago. The new Kondapur will get commissioned now.

In the next 18 months, expansion in Secunderabad will happen. Once these expansions happen, the growth will be largely volume-driven for the next 4, 5 years.

Understood. That's all for me.

Hi. Good morning and thank you for the opportunity.

I had two broader industry-based questions. First, what is your observation on competition for doctors in some of your key markets, say in Bengaluru?

Whether it's becoming more competitive or it's not an issue for you? If you can comment on that part.

I think Hyderabad is the most competitive from all the geographies that we're present in. Even in the last 1 year, at least four, five hospitals got commissioned only in Hyderabad.

We have not seen significant doctor attrition. Lost one or two doctors, but nothing material that we are worried of, or we're seeing competition intensifying.

In fact, we are also adding more capacity, and we're pretty confident we'll be able to get doctors from competition to be able to ramp up these hospitals.

According to you, what is helping Sorry, yeah. Please complete.

Likewise, in all the other markets, Karnataka, Kerala, we have been seeing good traction from all doctors, for any department that we want to go and build, we're not seeing any significant resistance from doctors to join us.

Okay. According to you, what are the key initiatives or key incentives from KIMS side which is retaining the key doctors, because what we have seen across market, whenever new hospitals come up, I guess there are some tangible attrition from the incumbents, etc.

What according to you is helping to retain the talent which you have in your hospitals?

I guess they're very comfortable in our hospital, and they're happy to continue to work here. They don't see any value add that they will get by moving from this hospital.

Okay. My second question is actually continuation of earlier discussion on the insurance empanelment.

If you can again, I think, explain, I didn't get very well, what is the dynamic which has actually changed, and that has caused delay in the empanelment? You mentioned the GIC involvement, etc., and then we have been hearing about the common empanelment initiative, etc.

It seems like a lot of changes or discussions happening on that part. Just want to hear your thoughts or observations there.

I think GIC, they've come up with an initiative of GIC where common empanelments have to happen, and that's where we lost significant time in trying to understand which is the model to empanel hospitals. That's an initiative by all insurance companies, and it is starting moving forward.

Because it's a new initiative this year, there is being some confusion around how things should move forward. Also given we have commissioned so many hospitals in different micromarkets, in different cities, and when we are going and approaching insurance companies for 10 empanelments at the same time, plus we're talking about renewals at the same time, that has kind of led to delayed response from them, also not that they're not working towards it, but even that there's so many things that they had to work on from one single company, that's where we had to take time and space for each hospital to finish first and then go to the other hospitals.

Sure. What's your view on a common empanelment initiative?

Will you be considering that, or what are your key reservations against that step?

I think if IRDA decides to do something, we have to only follow the rules that they've put in place.

Because some of your larger peers, I think, they indicated it's not legally applicable, and there are, I think, some concerns on pricing, etc., so that's why I wanted to hear your view.

I don't think it's appropriate to comment on that now. Right now, we're pursuing our empanelments with each of these insurance companies.

Okay. Thank you.

I'll get back in the queue.

Sir, thanks for the opportunity. In the earlier call, it was given that December quarter is the quarter where we are finding that the new units have started, and it's one of the lowest margin in the December quarter.

There is some regular pick up in margins in the business. Just try to get your sense on that, how do you see such a ramp-up in the margins now, upcoming quarters?

See,

like I said, we should look at it on a cluster-on-cluster basis. It's difficult to look at it at a company level, because there's a lot of new hospitals getting commissioned at different clusters.

On a cluster basis, every quarter there is margin expansion in almost all the clusters, including the mature ones. Even in Andhra we're seeing margin expansion, Telangana we're seeing some margin expansion and good revenue growth.

Understood,

sir. That's it from my side.

Thank you, sir.

Hi. Thanks for opportunity.

Actually, I have couple of questions. First question is regarding the Bengaluru ARPOB.

What I can see is, Bengaluru hospital combined has reported around 85,000 of ARPOB. Do you see this level sustaining going forward?

Also occupancy, I understand hospitals have been recently operationalized, occupancy is at very low, around 20-odd percent. How do you see this occupancy and ARPOB playing around?

This is my first question.

ARPOB, like I said, 85,000 for the full year, quarter-on-quarter the ALOS has been changing. Given it's a new facility and a lot of new departments are getting added, it will take time for it to stabilize the length of stay.

For all practical purpose, you should assume a 75,000 ARPOB, and model the ramp-up based on that. As time passes, as the hospitals mature, the ARPOB will obviously expand.

As far as occupancy is concerned Sorry.

Please continue.

As far as the occupancy is concerned, there has been a healthy growth from a quarter-on-quarter basis. We are seeing visibility that the ramp-up will be quite healthy even in the coming financial year.

Towards the end of the year, we should hit a 35%, 40% kind of an occupancy on the full bed capacity.

Yeah. Understood.

How you're planning to add beds in both the hospital of Bengaluru? Right now the operational number of bed is on the lower side.

That's quite understandable. At what occupancy level you generally tend to increase the count of operational bed at any hospital?

At 60% on the current operational beds, we will operationalize the other beds. See, operationalizing other beds means just adding more manpower.

Based on the need on ground, we will decide how to operationalize these beds, because the CapEx for all of these beds are completed.

Understood. One last question, slightly for a longer term.

A couple of years ago, you announced expansion plan. What I understand, most of the expansion has already been taken care of.

From here on, how will you see expansion going forward for, let's say, next 3, 4 years, since you are also doing QIP? What kind of expansion you are aiming for?

Also, what kind of top line and EBITDA growth from growth perspective, slightly for medium term, what's your target if you'd like to share?

I think the expansion will continue to happen. We will keep adding more beds on a year-on-year basis.

For the next 12 to 24 months, a lot of the consolidation of the current hospitals will happen, which will also expand margin for us to strengthen the current hospitals. By then the debt levels also in spite of the QIP level, will come down to a significant low number.

We'll also use the next 24, 36 months to get the greenfield projects going. We obviously have plans to expand in Karnataka, in Kerala, Tamil Nadu, we're going to add one hospital, and obviously continue to expand in Andhra and Telangana.

Similar phase of expansion will happen, but because these are all greenfield projects, they'll again get bundled up once after 3 or 4 years.

Any growth perspective in your mind, what kind of top line or bottom line you are eyeing for? Anything you would like to share at this moment?

See, forward-looking numbers we are not able to share, but I think it should be similar to how we've been able to do in the past.

Okay. Understood.

Thanks.

Thank you for the follow-up. Just trying to get a sense on what is the one key challenge for each of our geographies if you can highlight, it will be helpful.

Just one biggest top of mind management concern for each of the five states you are present in.

Right now, the only challenge I see is the insurance empanelments. It's whatever we have done in Thane, Bangalore, Nashik, all these clusters, we've not seen it any different from how things are in AP and Telangana.

Retracting talent, building hospitals, ramp-up are very similar. The experience has been very similar.

Only challenge we face in this ramp-up was the insurance empanelment.

Okay. Got it.

Basically applicable only to the new hospitals which we are kind of operationalizing, not to the existing ones. No challenges in any of the existing hospitals.

We are all on promo mode.

Okay. Second question is with respect to the doctor pay and strategy in existing versus new geographies.

Are we kind of having some different strategies in newer markets like Bangalore, or Kerala, or Thane, versus what we do in Andhra Pradesh, Telangana? Are we paying up?

Where do we stand in terms of paying to doctors? Are we top quartile?

Are we just above average, average? Any color on the strategy and pay ranges will be helpful.

It's the same thing that we're following in AP and Telangana. The same model has been extended to Maharashtra and Karnataka and Kerala.

We have not changed anything.

Got it. Are we top quartile in terms of pay versus other larger peers, above average, average?

Any color there?

We pay based on what we believe that the teams can do. Now I don't know how to classify them under the kind of category that you've been asking, but I think, yeah, we've been paying pretty well, whatever we think is healthy enough for a ramp-up of the hospital.

That's how we look at it.

Got it. Just a quick bookkeeping one.

Kondapur margin hit, any qualitative number or any quantitative number or range will be helpful in FY27?

I think last time when we did the Sunshine movement, there was a 15 50 15 to 20 crore or 25 crore kind of a number, when Sunshine moved from its old hospital to the new facility. Because this is a much, much larger facility, we should think of it on similar lines or a little more.

Okay. Got it.

Helpful. Thank you.

Good morning, Dr. Abhinay.

Can you talk a bit about the acquisition in Palakkad, the kind of revenue EBITDA profile there and the potential that you're seeing, and whether we'll be consolidating this in our P&L?

We will consolidate this in our P&L, Harith. It's like how we have in Kollam.

It is a 250-bedded hospital, sorry, 300 300-bedded hospital. The revenue potential would be around 12 to 15 crores per month over a period of time.

Where currently this month, month of May, we should be doing around 6.5, 7 crores with a maybe 5% negative EBITDA. By next month, we should break even in that facility, for June, July.

Got it. Following up on your comment on the net debt reduction post the QIP.

Is there a broad level that you can guide for from the current 3,000-odd crore net debt level that we have post the QIP, and factoring in some of the CapEx plans that we have for the year, and also the ramp-up that we're expecting at some of the currently loss-making hospitals? Some broad level for FY27 end?

I think maybe to the tune of 1,000 crores is what we should retire debt, and the rest we will use for losses and additional CapEx in the current facilities, CapEx that are needed to complete in some of the existing facilities that we've commissioned.

Okay. Lastly, on the Telangana cluster, given it's such a large contributor to our overall profits, and the Kondapur expansion being a fairly large one in FY27, should we expect a growth for the cluster overall, or will it be in line with our recent trends, or will it be a softer year overall for the cluster?

For the cluster, I think, there should be a healthy growth rate. It won't be soft.

Maybe around 10, 10, 12% EBITDA growth we should look at for Telangana cluster. Historically, it's been higher, but given Kondapur and Kompally that just got commissioned, it should be in that range.

Okay. Thanks for taking my questions.

Yeah. Sachin, can you please call out the EBITDA loss from the new units for the entire year, as well as the base business EBITDA, the way you did for fourth quarter?

Sure, I'll do that. For the mature units for the entire financial year, we did a revenue of 3,335 crore, to be exact, out of that 3,931 crore of revenue which we have reported.

The EBITDA which we have done from the mature unit is about 956 crore out of 827 crore of EBITDA which we have reported. That says for the newer units, the units which are in operation for lesser than 1 year, we did in total 597 crore of revenue, and EBITDA erosion for the entire year is about 128 crore.

That also says that from the mature units, we continue to do about 29 odd percent of EBITDA margin on the overall base revenue, which we continue to do for these mature units in the past.

Sure. Thanks.

Can you also reiterate the commentary in terms of the break-evens for these new units on a monthly basis, which you had called out in your previous call? Has Thane already achieved EBITDA break-even on a monthly basis, and what are your expectation in terms of when do you think both the Bangalore hospitals should be able to achieve break-even?

Please go ahead, Dr. Abhinay, if you want.

No. Rahul, as far as Thane is concerned, March exit number, we were, EBITDA neutral.

April also, we were EBITDA neutral. Also, we added some doctors now, again, in the month of May, there might be some drag, there.

It's it's going in the right direction. We're seeing growth on a year on on a month-on-month basis.

The only roadblock currently for that growth is the empanelments. Once that is done, I think there will be more traction for growth.

As far as Bangalore is concerned, like we said Mahadevapura, within 12 months of commissioning, we commissioned it in October, 12 months from then we should break we should There was one month we were EBITDA positive in Mahadevapura, EBITDA neutral, not positive, but I think before October we should become EBITDA positive, single-digit positive in Mahadevapura. As far as PEST is concerned, again, we're pretty confident with the trajectory.

End of the financial year, we should get to a EBITDA positive kind of a number.

End of financial year, which means as of March '27 for Electronic City?

Yes.

Sure, Dr. Abhinay.

Let's say, with obviously this year you will have some impact from Kondapur, but all these other new units should scale up. This entire EBITDA loss which you had for the year to the tune of 120 crore kind of a drag from these new units, what kind of an expectation you have in terms of, let's say, the combined losses from these new hospitals going into FY27 and '28?

It's difficult to quantify that now, Rahul. It's just we're waiting for these empanelments to be done, and then the ramp-up can happen faster.

Obviously

it's been less than half the number.

Okay. Sure.

Okay. I will join back the queue.

Thanks for the

Thanks for taking my question. Would like to know the management's perspective on balancing the current cost of debt and the cost of equity that we're looking to raise.

How do you view the capital structure and your view on the optimal mix for capital structure and fund raise?

No, I think, see given as feedback from most of our investors, they all believe that a healthy net debt to EBITDA ratio should be 1:2. Now that it's slightly higher than one is it's at 1:3, we've wanted to bring it down to that healthy number, and that's the purpose of doing this QIP.

Also it will ease out some cash flow for us when we want to do new greenfield expansions.

Got it, sir. Thanks.

Thank you very much for all the relevant questions, and as we all already ramped up and given the knowledge that our entire aim is to see that whatever the last 5 years we have been achieved, I keep on telling that in the next 3 years, the next 5 years also we will try to achieve the same growth, that's why we are trying to do this expansions, greenfield, brownfield, as well as the QIP. The reason is, and also we were mentioning all the time that our debt EBITDA should not cross more than 1:2, and also the asset ratios, and we're keeping all those things.

The PAT this quarter and the EPS and all this, ROE, ROC has come down, we know that this one this financial year, it will cross what our expectations of the all these things, that's why we are raising this funds, so that to keep the company healthy, and also at the same time we'll do a steady expansion plans. With that, I think, whatever is the losses that we have been occurred nearly 120 EBITDA eroded, and that also comes down in the next year.

Moving forward, I think these will not be much, and we're anticipating the company should go on a healthy note in a next 3 to 5 years. Thank you very much for all the questions again.