Krishna Institute of Medical Sciences Limited ($KIMS)

Ladies and gentlemen, good day, and welcome to Teams Hospital Q4 FY '26 Earnings Conference Call hosted by IIFL Capital. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rahul Jeewani. Thank you, and over to you, Mr. Rahul.

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. Bhaskara Rao Bollineni, Founder and Managing Director; Dr. Abhinay Bollineni, Executive Director and CEO; 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 coincide with the beginning of the ongoing Gulf war with the ramifications across many countries in the world, including India. The recent appeal by Prime Minister for austerity measures underlines the grim scenario. Let us heat 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 2 countries is impacting many countries because of their interdependency. 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 4 financial year '26 highlights. Total revenue of INR 1,884 crores, a growth of 35.3% on year-on-year and 8.1% on quarter-on-quarter basis. EBITDA of INR 216 crores, a growth of 6.8% on year-on-year and a 5.9% on quarter-on- basis. PAT at INR 3 crores INR 16 crores and INR '26 [indiscernible]. EBITDA margin of 26% INR 42 crores in financial year against INR 415 crores in financial year '25. Consolidated earnings per share for financial year '26 of INR 6.03 a decline of 37.2% on year-on-year basis. Quarter 4 financial year financial highlights consolidated. Consolidated revenue from operations is INR 1,075 crores, a growth of 34% on year-on-year and 7.7% on quarter-on- basis. Consolidated EBITDA pre- INR 131 crores, a decline of 33.5% and 32.3% on year-on-year and quarter-on- basis. Operational highlights, quarter 4 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. Ru 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 a year-on-year basis. Average revenue per patient grew by 11.4% on a year-on-year basis. IP volumes grew by 15.4% and 25.4%, respectively, on a 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 Satamara Vizag contributed significantly to top line growth. The mature units maintained healthy growth pattern. Expansions necessarily involve heavy expenditure and it changed 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 right sooner than expected and the prospects are already visible. '26 has been a year of expansions. We've opened more hospital in Hyderabad at Kompali, 2 in Guntur, 2 in Maharashtra at Kane and Sanghi, 2 in Bangalore, Madhya and Electronic City and 1 in Kerala at Kola. We also opened facility centers at Hyderabad and Gundur. 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-plus successful brain tumor surgeries at KIMS. An exclusive cancer block was recently inaugurated at KIMs Hospital Mngol to meet the medical needs locally without patients running foreign wide. We've opened KIS mother and child unit at Nelore. On 4th February 2026, International Cancer Day program was organized to promote, Magastar, Angus and Sanji took as chief test. Making the International Locus Day, KIS Hospital Sekherabad organized a unique ramp walk featuring Locus warriors on 11th May, attended by family members and health care professionals across the city. This happens to be the fifth such locus ramp walk initiative in Asia. Yesterday, the 7th May was World Hypertension Day. Hypertension or elevated blood pressure is a common condition with the prevalence of 1 in 3 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 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 a healthy lifestyle. Thus high blood pressure is the gateway for mental health, 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 checkups in a massive scale of 1 lakh at random places like railway stations, bus stands, offices, et cetera. All the units spontaneously responded to the call in a resounding way despite the short notice and accomplished 2 4,000 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 health care professional, I thought it fit to appraise you also but the held 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.

[Operator Instructions] The first question comes from the line of [indiscernible] with [ Oman Investment Adviser ].

So my first question is regarding this readdition or changes in the presentation earlier, we have a lot of reason in Anders, which is not available now. And also Talena Kondapur. So is there any changes in plans for and also time lines are not available? So how do we see this on?

Yes. So the change is only because of revenue, we are coming for IP in a month or 2. So -- so what a company is to align with the commerce, the prospectus and everything, we have given this time only the information, which is being informed of exchanges and all -- but air plan is on track, and we will update the presentation next quarter.

Okay. Sure. So [indiscernible] is on open lot of new assets -- so what is the contribution of the register in the current revenue and what is the EBITDA range mostly they are in EBITDA negative. So what could be the approximate percentage of EBITDA?

So for quarter-on-quarter basis, if you see the mature units for us remains in a steady position of EBITDA of 30% approximately. And new units, which are recently started for Karnataka specifically, the press hospital. There is a drag initial drag, that is only the taking away the EBITDA. So this is a as of the numbers, if you are in a around [ 185 ]. The natural lines in this quarter has contributed almost [ INR 862 ] crores of revenue. and the balance revenue of about INR 224 crores is from the newer units, more invest will mean the units which has -- which are in operations for less than 1 year as on the date of financial statements whereas the EBITDA, which we have reported almost INR 216 crores in this quarter, out of that INR 250-odd crores is from the matron. So to say that almost 28.5% or 39% of EBITDA margin of mature units we continue to make it. As for the new range for the current quarter, the to the extent of about INR 32 crores. So this is roughly -- this is accurately in the term of numbers for the current quarters.

So when do you think lastly and when do you think that we can go to previous EBITDA numbers as these assets make sure and you can pay to numbers, maybe 1 year or 2 years as we're expanding rapidly every year. So the EBITDA margins will settle at this point for tax to 3, 4 years?

Yes. Please go ahead.

The better way to look at it is on a cluster on cluster basis. If the cluster, we are now disclosing the EBITDA margins at each us. So because they're adding so much bet capacity in different clusters, there will be some depression in EBITDA numbers. But as long as we're able to grow that on a quarter-on-quarter basis, that's the direction we should look at. That's the guidance, we'd like to give.

Next question comes from the line of Aman Goyal from IIFL Capital.

So my question is related to the new units, loss trajectory. Can you throw some colors on the quarter-on-quarter losses on scan and newer Kanata units?

So Mastic, Q4 is around INR 1 crore loss. ANI is around INR 5 crore loss -- and the rest of the losses are from Karnataka. I think it's -- the losses in Maharastra narrowed down to just INR 6 crores, INR 7 crores now from both the new entities Karnataka because not commissioned in the month of Jan, there are some losses while by -- sorry, in December test commission now that the ramp-up is happening in best maybe towards the end of the year the losses from tests also should narrow down. As far as margin from is concerned, it last year in the similar range of Thane, which again will ladder down -- actually get more and more reinsurance side.

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 [indiscernible] there. So how do you see the market as compared to the 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 a now it's 8 months old -- 8, 9 months old, we are growing on an average of INR 17 crores a month. patient Q4 number. And we have very clear visibility of how it's going to INR 25 crores, INR 30 crores over the next 12 months. So we don't see any difference in how the ramp-up would have happened in a city like debtor in Bangor. Just that the timing of both the hospitals, there was a gap and because of its philosophy expanded and test, we took a little longer to commission. And the only difficulty off late is the insurance environment. once that we sold, I think the growth trajectory we are pretty confident in all the hospitals that we commissioned.

Next question comes from the line of Nancy Yadav with Allegro.

Again, I also have a question on the unit SP1 To be able to calculate margins, would it be possible for you to tell the revenues and the IDA for Q4 for Madura, ECD and Tami -- it's close to INR 17 crores per month. So it does it comes to around INR 51 crores.

No. Maripura in Q4 is INR 49 crores is INR 17 crores, an is INR 47 crores.

Okay. And sir, could you also tell the losses individually from Madhepura and Electronic City?

[indiscernible] is 14%, Electronic City is 25%, Thane is 5 and Nasik is 1.

Okay. And sir, electronics, it is INR 17 crores in revenue, sorry, I'm not sure if I caught that correctly.

Yes, for the quarter.

Next question comes from the line of Alankar Garude with Kotak Institutional Equities.

Sir, in the third quarter call, you had mentioned that debt has peaked out and in the absence of any new expansion plans, our debt should tend does. Now then within a month, you announced the [indiscernible], can you help us understand the reasons behind the planned INR 1,500 crore QIP. I mean does it mean that you have zeroed in on any new expansion plans?

Expansion plans, we are still exploring that's part of the overall strategy. But the idea is now that the debt has reached its peak close to INR 30,000 plus crores, the idea is, we retire some debt and use the cash flow to do more greenfield projects, which anyway will take 3 to 4 years before they get commissioned. So there are 1, 2 small acquisition opportunities that setting potentially come up over the next 2 quarters, but they're not significantly based around 400, 500 bps both put together. But the idea is to retire a large amount of this will go to retire debt. and use the cash flow to fund greenfield expansion, which will get -- which will we take 3 to 5 years before they get commission. -- which are these markets Vayo are talking about for both the organic expansion as well as the acquisitions. All of them are in our core markets, Cannata, era, under mostly in these 4 months.

Okay. So basically, you'll be retiring debt and then eventually we'll be pursuing the green field 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?

Yes.

Okay. Fair enough. The second question is, qualitatively, particularly on the insurance and panel met, can you update us on the progress of the new -- relative to new hospitals, asinine and vis-a-vis your initial expectations, if you can just highlight how each of these units have performed.

So from a -- I think what we underestimated is the time it takes to now get insurance and talents vis-a-vis how it goes before that has caused some delay in ramp-up. But otherwise, overall, we are very happy with all the 4 hospitals the way we have been able to get clinical all. Have you got impairments like we could have in the past, the ramp-up would have significantly be better than what it is today. In spite of which we are pretty happy with the trajectory of the revenue growth in most of the hospital. As far as the entailments are concerned, Nasik, we still yet to get start Medisys and Kipa. Patane, we finally got Gia and media systems are on almost grow. That completes at least 70% of the volume of insulin. But we have to get the empirment, but at least the negotiations are more or less through. As far as Bangalore, we will take 3, 4 more months before we are able to on [indiscernible].

Just 1 quick follow-up there. You mentioned about delays in the insurance empanelment. I mean was it more specific to FY '26 and the stand of which happens with insurance providers for the industry? Or this is something which we should expect, I mean, to continue going forward?

I think there is a new council GIC, which also got introduced in the same financial year. And because of that, there is likely a lot of continuing to do a Paris hospitals with GIC is continue directly that conclusion also led to a significant benefiting hospitals. I think eventually, we'll have to figure out a way to ease this and ensure that once we post this condition between 6 months on mentor able to get impairment it.

Next question comes from the line of [ Akshay Thakur ] with Helios Capital.

Sir, my question is related to capital raises. I wanted to know your strategic evaluation on, let's divide it in 2 parts, say, for example, 1 would be taking it from the market, it could be debt. it could be QIP or any other scores? Second would be doctors participation model which we used to have earlier. So can you -- what is the strategic evaluation point between these 2 to raise capital from these 2 sources?

So right now, we have a debt of almost INR 3,000 crores. We want to use this capital raise from the QIP to retire it. And most of the projects that we do at a project level we put in an equity of 40% of the project cost and 65% is debt -- no doctor participation is usually a very, very small model. It and amounts lowly to 3% to 5% at best. Okay. Got it. So any like in current expansion plans, do you evaluate this as well the Smartcorp participation model? is always open. So doctors are always open to invest as in winter.

Next question comes from the line of Karan Vora with Goldman Sachs.

So the first question is with respect to the Kondapur expansion. So 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 time lines? When should these beds come online? And if they will come in phases, which is what we understand, then like what will be the Phase III, what will be the time lines and the CapEx for it?

So we will shift into the new Kundapor facility starting in the first week of June. So 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 the transition. And then we'll shut it down. So the new hospital will have 800 beds, of which in Phase I 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 I. The remaining 300 beds, we will commission as and when the occupancy increases.

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

Yes, except for I would say around INR 50 crores to INR 75 crores, which we will incur not in the FY '27 but in FY '28 and beyond, which is to complete 2 additional floors, which we don't require at this point in time.

Sorry, 50 -- sorry, INR 50 crores to INR 70 crores.

INR 50 crores to INR 75 crores over -- we don't need it for the FY '27. We need it in FY '28 or based on how the ramp-up happens.

Okay. Okay. Got it. Got it. The second question is with respect to the Andhra Pradesh and Bangalore ARPOBs. So Bangalore ARPUs, I see -- it looks like have risen like significantly, even the full year number shows like some 85,000 on the deck, if I'm not wrong. So what has happened? And is this the new base? Or it's just a one-off where the mix was like just too good and you go back to the 70s number, which was originally envisaged. And similarly, for Andhra Pradesh, what is the right run rate, is 28,000 plus the new run rate or 24,000 to 26,000 is the 1 which we should think a run rate?

[indiscernible] is concerned, 75,000 is a healthy number to achieve. If you actually look at Q3, Q4 and full year, the loss keeps changing. -- anteing the comp is moving up and now, -- but you should fairly assume for all models, we should assume 75,000 as a base and welcoming. If you take time before the hospital settles down because lot of new programs are getting as a transplant are happening when to make very aggressive way. So -- but for modeling purposes, we should just assume 75,000 Ms.

Got it. And Anders?

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

Okay. Got it. So that's the base. That's the normal base?

Yes.

Yes. Okay, Cor. And just a quick last question. Sir, Maharashtra, what was the Q4 occupancy because the implied number when I do it, like it looks fairly high at like 60%, 65% plus to arrive at that 52.1% number for the full year, right? So is that a fair number? Or is there.....

[indiscernible] some like 60.5% occupancy for Q4?

Okay. Okay. Got it. And is that -- again, like, is that sustainable? Because it looks like a massive ramp up from 35% in Q1 to like 60% plus in Q4. So should we assume like a 60% or that kind of a number as a new base for Maharashtra occupancy?

That's the new base.

Next question comes from the line of Abhishek Gupta with [ Best ] Capital.

In Telangana and Hyderabad particularly, which we do know is a more mature market, we saw IT volumes increased by 2%, whereas the overall revenue mix was increasing by 12% plus, right? So most of it is value driven. How do you sort of see this going forward in the next year or 2?

Sorry, come back -- can you come again? Saying on a year-on-year basis?

Yes, yes. So when Hyderabad, which is a mature market for the larger health care space, we saw the volumes increased by 2% right? And the rest of it was driven by value. So how do we sort of see this number going forward in the next year or 2?

I think because as a cluster, Telangana now, we have added company, which is elocommission 3 months ago. the new conductor commission now. And in the next 18 months, expansion in senate will happen. So once these intact, the growth will be largely volume-driven for the next 4, 5 years.

[Operator Instructions] Next question comes from the line of [ Damayanti Kerai ] with HSBC.

Our 2 broader industry questions. So first, what is your observation on competition for doctors in some of your key markets in Banbury, or whether it's becoming more competitive or it's an organ issue for you. So if you can comment on that part?

I think Hyderabad is the most competitive from all the geographies that we are presenting even in the last 1 year, at least 4, 5 stars without commission only in hydrovac, we may not see any significant operation last 1 profit nothing material that we are worried of we are seeing competition intense. In fact, in fact, we are also adding more capacity the content will be able to get doctors to some opposition to be able to run kind of business. Likewise, in all the other markets, convert we have been seeing good traction from all doctors. So in any department that they want to do in -- they're not seeing any significant resistance from doctors to join.

Okay. So according to you, what are the key initiatives of incentive from skin side, which is retaining the key doctors because what we have seen in -- across markets, whenever new hotels come up, I guess there are some sizable activity from the incumbents, et cetera. So what according to you is helping to retain the talent which you have in your hospital?

I guess they're very comfortable in our hospital and they're happy to continue to work the don't see any inventory is that they will get to moving from this aspect.

Okay. My second question is actually a continuation of earlier discussion on the interim and management. So if you can, again, I think I didn't get very well. What is the dynamics which have actually changed and that has caused to delay in the empire. You mentioned the GIC environment, et cetera. And then we have been hearing about the common empanelment initiative, et cetera. So it seems like a lot of changes or discussions happening on that part. So just want to get your thoughts or observations there.

No,I think GIC, they have come up with an initiative where comemberments have to happen. And that's where we lost a significant time in trying to understand which is the model to panel hospitals. So that's an initiative by all insurance companies and it's going to continue, it will strengthen moving forward because it's a new initiative this year. There has been some confusion on how things should move forward. And also, given we have commissioned so many hospitals in different micro markets in different cities -- and when we are going and approaching insurance companies for 10 empowerment at the same time, plus we're talking about renewals at the same time. has kind of led to delayed response from them also. Not that they're not working towards it, but given that there are so many things that they have to work on from 1 single company. that's where we have to take time and place the reach host finish first and then go to the other hospitals.

Sure. And what's your view on a common impanelment initiative. Will you be confining that? Or what are your key visits against that debt?

I think if IDI decides to do something, we have to only follow the rules that they put into use.

Okay. Because some of the larger peers, I think they indicated if not really applicable and there are, I think, some concern on pricing, et cetera. So that's why I wanted to hear your view.

I don't know. I don't think it's appropriate to comment on that now. Right now, we're having -- we're pursuing our empowerment with the insurance company.

Next question comes from the line of Ankush with [indiscernible].

If we take the earlier calls, it was given that December quarter is the quarter where we are finding that the new units have started and it's 1 of the lowest margin in the December quarter. And there is some regular pickup in margins in the business. So just trying to get your sense on that. How do you see the ramp-up in the margins now upcoming quarters?

Likely said, we should look at it on a close-out basis. it's difficult to look like take at a company level because there are a lot of new hospital taking commission a different cluster. On a cluster basis, every quarter, there is margin expansion in almost all of us, including the mature ones. Even in Andhra, we are seeing margin expansion. So men you're seeing some margin expansion in big revenue growth -- that's it from my side.

Next question comes from the line of [ Satyam Kumar ] with AAA Holding Trust.

First question is like regarding the Bengaluru ARPU. What I can see is like tenure hospital that combined has reported around 85,000 of ARPU. So do you see this level sustaining going forward? And also like occupancy, I understand that Sites recently operational life. So occupancy is really low. -- like around 20-odd percent. So how do you see this occupancy and ARPOB playing on? This is my first question.

So ARPU, like I said, 85,000 for the full year quarter-on-quarter, the loss has been changing. And given it's a new facility and on the new departments are getting added, it will take time for it to stabilize the invent of stay. For all practical purposes, we should assume a 75,000 ARPU and model the ramp-up bosentan. As time passes, as the hospital is mentioned, the top will obviously expand -- and as far as occupancy is concerned -- sorry -- 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. We should -- towards the end of the year, we should hit a 35%, 40% kind of an occupancy and the full big capacity.

Understood. And like how you are planning to add beds in the hospital of Bengaluru? Like right now, the operating number out is on the lower side, but it's quite understand like how you increase -- like at what occupancy revenue generally tend to increase on account of operational debt?

60% on the current occupancy on the current operational base we will operate the operating other bids is adding more manpower. So based on the need on ground, we will decide our operational people because the CapEx pooled are completing.

Understood. And one last question, slightly for the longer term. So like a couple of years ago, you announced expansion plan, what I understand most of the expansion has already been taken care of. So from here on, how do you see expansion going forward for the, let's say, next 3, 4 years? -- since you are also doing QIP. So what kind of expansion you are going for? And also what kind of top line and EBITDA growth from group cost perspective, paisanmedium term, what's your targets you would like to share?

I think the action 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 present hospitals will happen. -- which will also reduce -- will also expand margins for us to strengthen the current cost is. And the end the debt level also will come down to in spite of a full we come down to a significant low number. We'll also use the next 24, 36 months to get the green projects there. So we obviously have plans to expand in Kanata in Kerala, so innate going to add an hospital, obviously, continue to expand in under -- so similar phase of expansion will happen. But because these are all greenfield projects were again fueled up 1 or -- so any growth perspective in your mind, like what kind of top line or what time line you are in for anything we would like to share at this moment? The 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.

Next question comes from the line of Karan Vora with Goldman Sachs.

So just trying to get a sense on what is the key One key challenge for like each of our geographies, if you can highlight, it will be helpful. Just 1 biggest top-of-mind management concern for each of the 5 states you have presented.

Right now, the only challenge I see is insurance in. Whatever we have lent in an anal all those clusters. We've not seen it any different from how things are in attracting talent building hospitals in Antara similar experience in the recent year. The only challenge we faced in the ramp-up as we [indiscernible].

Okay. Got it. So basically applicable only to the new hospitals which we are or kind of operationalize not to the existing ones, no challenges in any of the existing hospitals.

We have not yet.

SP1 Okay. Second question is with respect to other 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 an versus what we do in Andrades, Telegana -- are we paying up? Are we -- like where do we stand in terms of paying to doctors? Are we top quartile? Are we like just above average average? Any color on the strategy and pay arranges will be helpful.

[indiscernible] is the same thing that we are following in Atea the same model has been extended to Maharashtra and Tanakan. We have not changed anything.

Okay. Got it. And are we like top quartile in terms of pay versus other larger peers above average, average? Any color there?

We pay based on what we believe the teams you do. Now I don't know how to classify the under the kind of category that you've been asking. But I think, yes, we've been paying pretty well whatever we think is held enough ramp-up of the hospital. That's how we look at it.

Okay. Got it. Got it. And just a quick bookkeeping one. So Kona per margin with any qualitative number -- any quantitative number or range will be helpful, in FY '27.

I think last time when we did the sunshine movement, there was a INR 15 crores to INR 20 crores -- INR 25 crores kind of a number when Sunshine moves from old hospital to the new facility. But because this is a much, much larger facility, we should think of it on similar lines in a little more [indiscernible].

Next question comes from the line of [indiscernible] with [indiscernible].

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

We will consolidate this in our P&L, right? It's just -- it's like how we haven't called them it is a 250-bed hospital -- sorry, 300 hospital. The revenue potential would be around INR 12 crores to INR 15 crores per month over a period of time. where currently this month, May month of May, we should be doing around INR 1.5 crores, INR 7 crores with maybe a 5% negative EBITDA. So by next month, we should break even in that perspective. June, July.

Okay. Got it. And following up on the comment on the net debt reduction post the QIP. So is there a broad level that you can guide for from the current INR 3,000-odd crores net debt level that we have post the QIP and assuming -- 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 effect.

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

Okay. on all of Kalingara cluster given such a contributor to our overall profit and then the conduct expansion being a fairly large one. In FY '27, should we expect a growth for the cluster overall? Or will it be in line with our recent trends? Or will it be a soft year overall for the past the caster?

I think there should be a holding growth rate. It won't be so maybe around 10%, 12% EBITDA growth we should look at to eliminate Historically, it's been here. But given Kondapur and Compare that just got commission, which should be in that range.

Next question comes from the line of Rahul Jeewani with IIFL Capital.

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. So from the natural unit for the entire financial year will be the revenue of 3 and INR 35 crores to be extracted out of that INR 3,938 crores of revenue, which we reported the EBITDA which we have done from the upgrade unit of about INR 956 crores out of INR 27 crores of EBITDA, which we have reported -- so that sales from the new the units which are in operation for less 1 year. We did, in total, INR 597 crores of revenue and EBITDA ratio for the entire year is about [indiscernible]. So that also says that from the natural unit, we continue to do about 20 of EBITDA margin on the overall base, which we continue to do for deal net anodes in the past.

Sure. Sure. And can you also reiterate the commentary in terms of the breakeven for these new units on a monthly basis, which you had called out in your previous calls. So has an already achieved EBITDA breakeven on a monthly basis? And what are your expectation in terms of when do you think about the Bangalore aspect of this should be able to achieve breakeven.

No. So Rahul, for as Thane is concerned, March it number, we were EBITDA neutral. April also, we were EBITDA neutral. But also we added some doctors now again the month of May. So there might be some drag there. But it's going in the right direction. We're seeing growth on a month-on-month basis. The only roadblock currently for that growth is the impairment. Once that is done, I think there will be more traction for the growth. As far as Bangalore is concerned, like we said, Major within 12 months of commissioning. We commissioned it in October 12 months, and then we should -- there was 1 month we were EBITDA cost to the margin. EBIT neutral, not positive. But I think before October, we should become EBITDA positive, single-digit positive in margin. As far as this is concerned, again, we are pretty confident with the trajectory end of the financial year, we should get to EBITDA positive kind of.

And no financial year, which means that March 27 for electronic cities.

Yes.

And let's say, with -- obviously, this year, you will have some impact from Pandao but all these other new units should scale up -- so this entire EBITDA loss which you had for the year to the tune of INR 126 crore kind of a drag from these new events, what kind of an expectation you have in terms of, let's say, the combined losses from these new hospitals going into FY '27 and '28.

It's difficult to quantify that now just we are waiting for these impairments to be done and then the ramp-up can happen faster. We're obviously half the number.

Next question comes from the line of [ Aditi Chehra ] with [ Ingrid Asset Management ].

I would like to know the management captive on balancing the current cost of debt and the cost of equity that we're looking to raise. So how do you read the capital structure and your view on the optimal mix cantons?

I think given the feedback from most of our investors, they don't believe that a healthy debt EBITDA ratio should be honest to do. So now that it's slightly higher than 1 is it onshore, we wanted to bring it down to healthy number, and that's the purpose of doing this fact. And also, it will give out some cash flow for us when we want to release no greenfield expansion.

Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I'd now like to hand the conference over to the management for closing comments.

So thank you very much for all the relevant questions. And as we are 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 few years, the next 5 years also we will try to achieve the same growth. That's why we are trying to do these expansions, greenfield, brownfield as well as [indiscernible]. The reason is -- and also, we were mentioning all the time that our debt EBITDA should not cross more than 1 is to do and also the asset ratios -- and keeping all those things, we had this quarter and the UPS and [indiscernible] has come down. So we realize we know that this on financial year it will cross whatever expectations on the -- all these things. That's why we are raising this pant. So that keep the company healthy and also at the same time, we'll do a steady expansion plans. That I think whatever is the losses that we have been nearly 120 EBITDA at and that also comes down in the next year. And moving forward, I think this will not be much. So you can see the company should be able to -- and we're anticipating the company should go on a healthy not in the next 3 to 5 years. Thank you very much for all the questions today.

Thank you. On behalf of KIMS Hospital and IIFL Capital, that concludes this conference. Thanks for joining us. You may now disconnect your lines.