Ladies and gentlemen, good day and welcome to KIMS Hospitals Q4 FY 2026 earnings conference call hosted by IIFL Capital. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance in the conference call, please signal an operator by pressing star zero on your touchtone phone. 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. Jeewani. 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, 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 underlines the grim scenario. Let us heed 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 2026 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. EBIT of INR 216 crore, a growth of 6.8% on year-on-year and 5.9% on quarter-on-quarter basis. EBITDA margin at 19.9% versus 25.3% in Q4 FY 2025 and 20.4% in Q3 FY 2026. Cash at INR 33 crores in Q4 FY 2026 against INR 106 crore and INR 52 crore in Q4 FY 2025 and Q3 FY 2026 respectively. FY 2026 highlights. Total revenue of INR 3,931 crore, a growth of 28.2% on year-on-year basis. EBIT of INR 828 crore, a growth of 1.6% on year-on-year basis. EBITDA margin of 21.1% versus 26.6% in FY 2025. Cash at INR 242 crore in FY 2026 against INR 415 crore in FY 2025. Consolidated earning per share for FY 2026 of INR 606.03, a decline of 37.2% on year-on-year basis. Q4 financial year highlights consolidated. Consolidated revenue from operations is INR 1,075 crore, a growth of 34.8% on year-on-year and 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 FY 2026. 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. FY 2026 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 Bengaluru, Thane, Kerala, Nashik, and Seethammadhara, Vizag contributed significantly to top line growth. The matured units maintained healthy growth pattern. Expansions necessarily involve heavy expenditure and restrains the profits in the initial phase. Likewise, the profit of the company for the year is impacted, though growth remains stable. The new units also will turn right sooner than expected, and the prospects are already visible. 2025, 2026 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 Bengaluru, Mahadevapura and Electronic City, and one in Kerala at Kollam. We also opened activity 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 am happy to state that we have 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 opened KIMS Cuddles, a mother and child unit at Nellore. On 4th February 2026, World Cancer Day program was organized to promote awareness. Megastar Padma Vibhushan Chiranjeevi took part as chief guest. Making the World 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 5th 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 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 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, etc. All the units spontaneously responded to the call in a resounding way despite the short notice and accomplished 2 lakh 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 healthcare professional, I thought it fit to appraise 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. Now we can open it, sir. Shall we open the lines for questions? Yes. Yeah, now. Thank you. We will now be beginning the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. 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 comes from the line of Balakrishnan with AUM Asset Management. Please go ahead. Hi, good morning, sir. My first question is regarding this segregation, changes in the presentation. Earlier we have a lot of addition in Andhra Pradesh, which is not available now. Also Telangana, Kondapur is changed, elevated. Is there any changes in plans that are, and also timelines are not available. How do we see this thing now? Yeah. Hi, Balakrishnan, this is Vikas here. The change is only because of, you know, we are coming up, we are planning for a QIP in a month or two. What has happened is, you know, to align with the councils, you know, the prospectus and everything, we have given this time only the information which is being, you know, informed to exchanges and all. The earlier plan is, you know, is on track, and we will update the presentation next quarter. Okay, sure. Thank you. In second, and this, in 2025, 2026, we have opened lot of new assets. What is the contribution of the registered assets in the current revenue and what is the EBITDA range? Mostly we are in EBITDA negative. What could be the approximate percentage of EBITDA? For quarter-on-quarter basis, if you see, the mature unit for us remains in the steady position of EBITDA of, you know, 30% approximately. The new units which are, you know, recently started for Karnataka specifically, the PES Hospital. There is a drag, initial drag, you know, that is only the, you know, taking away the EBITDA. This is Sachin. Okay. In terms of the numbers, if you're asking, Arjun, the total revenue of around INR 1,085 crore, the matured units in this quarter has contributed almost INR 862 crore of revenue. The balance revenue of about INR 224 crore is from the newer units. Newer units we mean the units which has, which are in operations for less than one year as on the date of financial statement. Whereas the EBITDA which we have reported almost INR 216 crore in this quarter, out of that INR 250 odd crore is from the matured unit. To say that, almost 29%, 28.5% or 29% of EBITDA margin from matured unit, we continue to maintain. As far as the newer units for the current quarter, the EBITDA earning is to the extent at about INR 32 crores. This is roughly, this is accurately in the terms of numbers for the current quarters. Thanks, Sachin. Thanks a lot for this explanation. When do you think lastly, and when do you think that we can go to previous EBITDA numbers as these effects matures? When we can get to numbers maybe down the line, one or one year or two years? As we are expanding rapidly every year, so EBITDA margins will be, will settle at this range for the next three, four years? As far as the matured units. Yeah. Please go ahead, Dr. Abhinay Bollineni. Okay. The better way to look at it is on a cluster-on-cluster basis. Every cluster we are now disclosing the EBITDA margin 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 are able to grow that on a quarter-on-quarter basis, that's the direction we should look at. That's the guidance that we'd like to give. Awesome, thanks a lot. Thank you. Next question comes from the line of Aman Goyal from IIFL Capital. A reminder also to press star and 1 to ask a question. Please go ahead. 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 INR 1 crore loss. Thane is around INR 5 crore loss for Q4. The rest of the losses are from Karnataka. I think it's the losses in Maharashtra have narrowed down to just INR 6-7 crores now from both the new entities. Karnataka because PES just got commissioned in the month of January, there are some losses. Maybe by, sorry, in December, PES got commissioned. Now that the ramp-up is happening in PES, maybe towards the end of the year, the losses from PES also should narrow down. As far as Mahadevapura is concerned, it, the losses are in the similar range of Thane, which again will narrow down as soon as we get more and more insurance sides. Yeah. Thank you, sir. Thank you, sir. My next question is related to the Karnataka. As you were referring, since we are new to the region and there are lots of bigger hospital chains like Apollo, Manipal and there. How do you see the market as compared to the core cluster like Telangana and Andhra? Obviously it's a new market, we are very happy with the way the ramp-up has happened at Mahadevapura. Now it's eight months old, eight, nine months old. We are doing an average of INR 17 crores a month, patient throughflow number. We are very clear visibility of how this will go to INR 25-30 crores over the next 12 months. We don't see any difference in how the ramp-ups would have happened in a city like Hyderabad or in Bengaluru. It's just that the timing for both the hospitals, there was a gap and because of which the hospital expanded. PES we took a little longer to commission. The only difficulty of late is the insurance entitlement. Once that gets solved, I think it's growth trajectory, we are pretty confident in all the hospitals that we commission. Yeah. Thank you, sir. I will just conclude here. Thank you. A reminder to all the participants that you must press star and one to ask a question. Next question comes from the line of Nancy Jacob with Edelweiss. Please go ahead. 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 EBITDA for Q4 for Mahadevapura, E-City and Thane? Mahadevapura - Mahadevapura you said, is close to INR 17 crores per month. Does it come to around INR 51 crores? No, Mahadevapura in Q4 is INR 49 crores. Okay. Next is INR 17 crores. Thane is INR 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 five, Nashik is one. Okay. Sir, Electronic City is INR 17 crores in revenue. Sorry, I'm not sure if I got that correctly. Yeah, for the quarter. Okay, sure. Thank you. That's all I wanted. Thank you. Next question comes from the line of Alankar Garude with Kotak Institutional Equities. Please go ahead. 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. Within a month, you announce the QIP. 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, Alankar. That's part of the overall strategy. The idea is, now that the debt has reached its peak, close to INR 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. 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 anyways take 3 to 5 years before they get commissioned. Which are these markets, Abhinay Bollineni, 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 Pradesh, Telangana, mostly in these four markets. Okay. Basically you'll 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? Correct. Okay. Okay, fair enough. The second question is, qualitatively, particularly on the insurance empanelment, can you update us on the progress of the four new, relatively new hospitals, Nashik, Thane, and the two Bengaluru one? Vis-à-vis your initial expectations, if you can just highlight how each of these units have performed. Thank you. From a, I think what we underestimated is the time it takes to now get insurance empanelments vis-à-vis how it was before. That has caused some delay in ramp-up. Otherwise, overall, we are very happy with all the four hospitals, the way we've been able to get clinical tally. 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 are, we still left 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. We're yet to get the empanelment, but at least the negotiations are more or less, through. As far as Bengaluru, it will take, three, four 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. I mean, was it more specific to FY 2026 and the standoff which happened with insurance providers for the industry, or is this 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. Because of that, there's led to a lot of confusion as to who empanels hospitals. Do GIC do it? Do companies do it directly? That confusion also led to a significant delay in empaneling hospitals. I think eventually we'll have to figure out a way to ease this and make sure that once the new hospital is commissioned, within six months, nine months, we're able to get empanelment done. Got it. That's very helpful. Thank you very much. Thank you. Next question comes from the line of Akshay Thakur with Helios Capital. Please go ahead. 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, you know, doctors participation model that which we used to have earlier. Can you, what is the strategic evaluation point between these two to raise capital from these two sources? Right now we have a debt of almost INR 3,000+ crores. We want to use the capital raise from the QIP to retire it. 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. It runs amounts only to 3%-5% at best. Okay. Got it. Any like in current expansion plans, do you evaluate this as well, this doctor practice participation model for future expansion? 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. Next question comes from the line of Karan Vora with Goldman Sachs. Please go ahead. Thank you for taking my question. The first question is with respect to the Kondapur expansion. I see that we've 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? If they will come in phases, which is what we understand, then what will be the phase I, II, III? What will be the 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 one month, but we may continue to run the old facility for two, three months even after we transition. And then we'll shut it down. The new hospital will have 800 beds, of which in phase I, because we are already at an occupancy of 200 beds and we need the headroom for growth, we will commission at least 400-500 beds in phase I. The remaining 300 beds, we will commission as and when the occupancy increases. Got it. CapEx we've incurred for the whole project? Yeah. Except for, I would say around INR 50 crore-INR 75 crore, which we will incur not in the FY 2027, but in FY 2028 and beyond, which is to complete two additional floors, which we don't require at this point in time. Sorry, INR 50-70 crores? INR 50-75 crores. We don't need it for the FY 2027. We may need it in FY 2028 or 2029 based on how the ramp-up happens. The second question is with respect to the Andhra Pradesh and Bangalore ARPOBs. Bangalore ARPOBs I see it looks like have risen like significantly. Even the full year number shows like some INR 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 like 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 INR 28,000+ the new run rate or INR 24,000-26,000 is the one which we should think as a normal run rate? Yeah. As far as Bengaluru is concerned, INR 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. You should fairly assume for all models, we should assume INR 75,000 as a good, 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 a very aggressive way. For modeling purpose, we should just assume INR 75,000 in Q4. Got it. Andhra ARPOBs? Likewise, Andhra also is at INR 26,000, INR 27,000 in Q3, and Q4 also remains the same. Okay, got it. That's the base. That's the normal base. Yeah. Okay, got it. Just a quick last question. Maharashtra, what was the Q4 occupancy? Because the implied number when I do it, like, it looks fairly high, at like 60%, 65%+, 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. Okay. Okay, got it. Is that again, like is that sustainable? It looks like a massive ramp-up from 35% in Q1 to like 60%+ in Q4. Should we assume like a 60% or that kind of a number as a new base for Maharashtra occupancy? That's the new base for Q4. Okay. For March. Okay, got it. That's helpful. Yeah. Thank you. Thank you. Next question comes from the line of Abhishek Gupta with ChrysCapital. Please go ahead. Mr. Gupta, please go ahead with your question. 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 increased by 2%, whereas the overall revenue mix was increasing by 12%+, right? Most of it is value driven. How do we sort of see this going forward in the next year or two? Sorry, Abhishek, could you come back, could you come back again? You're saying on a year-on-year basis? Yeah, yeah. In Hyderabad, which is a mature market for the larger healthcare space, we saw the IP volumes increase by 2%, right? Okay. The rest of it was driven by value. Right. 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 completely, which is, which got commissioned two months ago. The new Kondapur. Elect commission, now. In the next 18 months, expansion in Hyderabad will happen. Once these expansion happen, the growth will be largely volume-driven for the next four, five years. Okay. Okay, understood. That's all from me. Thank you. A reminder to all the participants, as you know, press star and one to ask a question. Next question comes from the line of Damayanti Kerai with HSBC. Please go ahead. Hi. Good morning and thank you for the opportunity. I have 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 is becoming more competitive or it is 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 are present in. Even in the last one year, at least four or five hospitals got commissioned only in Hyderabad. We have not seen any doctor, significant doctor attrition. We lost one or two doctors, but nothing material that we are worried of or we are seeing competition in terms of that. In fact, we are also adding more capacity and we're pretty confident we'll be able to get doctors to from competition to be able to ramp up capacity. According to you, what is help? Sorry, yeah. Please complete. Likewise, in all the other markets, Karnataka, Kerala, we have been seeing good traction from all doctors. Anything, any department that they want to go in, we are able to fill. Yeah. 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? What we have seen in across markets, whenever new hospitals come up, I guess there are some sizable 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 incremental value add that they will get by moving from this hospital. Okay. My second question is actually a continuation of earlier discussion on the insurance empanelment. If you could again, I think explain. I didn't get very well. What is the dynamics which has actually changed and that has caused to delay in the empanelment? You mentioned the GIC involvement, etc. Then we have been hearing about the common empanelment initiatives, etc. It seems like a lot of changes or discussions happening on that part. I just want to hear your thoughts or observations there. Yeah, I think GIC, they have come up with an initiative, GIC, where common empanelments have to happen. 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. It's going to continue. It will strengthen moving forward. Because it's a new initiative this year, there is been some confusion on how things should move forward. Also given we have commissioned so many hospitals in different micro markets in different cities, and you know, when we are going and approaching insurance companies for 10 empanelments at the same time, plus we are talking about renewals at the same time, that has kind of led to, you know, delayed response from them also. Not that they're not working towards it, given that there are so many things that they have to work on from one single company, that's where we had to, you know, 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 resistance against that check? I think if IRDAI decides to do something, we have to only follow the rules that they put in place. Okay. Some of your larger peers, I think, they indicated, it's not, legally, applicable. There are, I think, some concerns on pricing, etc. 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 empanelments with each, with insurance companies. Okay. Thank you. I'll get back in. Thank you. Next question comes from the line of Ankush with Sanctum. Please go ahead. Sir, thanks for the opportunity. If he takes earlier calls, it was 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 pickup in the margins in the business. Just try to get your sense on that. How do you see sort of ramp up in the margins now in the upcoming quarters? Like I said, you know, we should look at it on a cluster-on-cluster basis. It's difficult to look at it at a company level because there are 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 are seeing margin expansion. Telangana, we are seeing some margin expansion in both the new builds. Thank you, sir. That's it from my side. Thank you, sir. Thank you. A reminder to all the participants that you must star and one to ask a question. Next question comes from the line of Satyam Kumar with AAA Holding Trust. Please go ahead. Hi. Thanks for the opportunity. Actually, I have a couple of questions. First question is like regarding the Bengaluru ARPOB. What I can see is like, Bengaluru hospital has combined, has reported around INR 85,000 of ARPOB. Like, do you see this level sustaining going forward? Also, like, occupancy, I understand, like, hospitals have been recently operationalized. Occupancy is at really low, like around 20- odd%. How do you see this occupancy and ARPOB playing around? This is my first question. ARPOB, like I said, you know, INR 85,000 for the full year, bottom 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 purposes, we should assume a INR 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. Mm-hmm. 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. Like, how you are planning to add beds in both the hospital of Bengaluru? Like, right now the operational bed is on the lower side. That's quite understandable. Like, how you increase, like at what occupancy level you generally tend to increase the count of operational beds in Bengaluru hospitals? At 60% on the current occupancy, on the current operational beds, we will operationalize the other beds. 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 these beds are completed. Understood. One last question, slightly for the longer- term. Like 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 three, four years since you are also doing QIP. What kind of expansion you are eyeing for and also what kind of top line and EBITDA growth from growth post 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 12-24 months, a lot of the consolidation of the current hospitals will happen, which will also reduce, which will also expand margin for us to strengthen the current hospitals. By then the debt level also will come down in spite of the QIP level to a significant low number. We will 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 are 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 three or four years. Any growth perspective in your mind, like what kind of top line or bottom line you are eyeing for? Anything you'd 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, you know, we've been able to do in the past. Okay. Understood. Understood. Thanks. Thank you. Next question comes from the line of Karan Vora with Goldman Sachs. Please go ahead. Thank you for the follow-up. Just trying to get a sense on, you know, what is the key, one key challenge for like 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 initial impact. You know, whatever we have learned in Pune, Bengaluru, Nashik, all these clusters is not seemingly any different from how things are in A.P. and Telangana. Attracting talent, building hospitals, ramp up are very similar. The experience has been very similar. Only challenge we face in the ramp up was the initial impact. Okay, got it. Basically applicable only to the new hospitals which we are kind of operationalizing, not to the existing ones. No, no challenges in any of the existing hospitals. We are now a promoter. 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 Bengaluru or Kerala or Thane versus what we do in Andhra Pradesh, Telangana? Are we paying up? Like, where do we stand in terms of paying to doctors? Are we top quartile? Are we, like, just above average? Any color on the strategy and pay ranges will be helpful. it's the same thing that we are following in AP and Telangana. The same model has been extended to Maharashtra and Karnataka and Kerala. We have not changed anything. Okay, got it. Are we like top quartile in terms of pay versus other larger peers, above average? Any color there? We pay based on what we believe that the teams can do. 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 ramp-up of the hospital. That's how we look at it. Okay, got it. Got it. Just a quick bookkeeping one. Kondapur margin, with any qualitative number or any quantitative number or range will be helpful in FY 2027. I think last time when we did the Sunshine movement, there was an INR 15 crore-INR 20 crore or an INR 25 crore kind of a number, when Sunshine moved from its old hospital to the new facility. Because this is a much larger facility, we should think of it on similar lines or a little more. Okay, got it. Helpful. Thank you. Thank you. A reminder to all the participants that you must star and one to ask a question. Next question comes from the line of Harith Ahamed with Covenant Industries Group. Good morning, Dr. Abhinay Bollineni. Can you talk a bit about the acquisition in Palakkad, 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, Harith. It's like how we have in Kollam. It is a 250-bedded hospital. Sorry, 300-bedded hospital. The revenue potential would be around INR 12 crores-INR 15 crores per month over a period of time. We're currently this month, May, month of May, we should be doing around INR 6.5 crores-INR 7 crores with a maybe -5% EBITDA. By next month we should break even in that facility. By June, July. Okay, 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 INR 3,000 odd crore 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 FY 2027 end? 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 facilities, CapEx that is needed to complete in some of the existing facilities that we've commissioned. Okay. Lastly, on the Telangana cluster, given it is such a large contributor to our overall profits and then the Kondapur expansion being a fairly large one, in FY 2027, 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 cluster? With the cluster, I think it, there should be a healthy growth rate. Maybe around 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. Thank you. A reminder to all the participants that you must star one to ask a question. Next question comes from the line of Rahul Jeewani with IIFL Capital. Please go on. 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. From the matured units for the entire financial year will be the revenue of INR 3,335 crore to be exact out of that INR 3,931 crore of revenue which we have reported. The EBITDA which we have done from the matured unit is about INR 956 crore out of INR 327 crore of EBITDA which we have reported. That says from the newer units, the units which are in operation for less than one year, we did in total INR 597 crore of revenue and EBITDA erosion for the entire year is about INR 128 crore. That also says that from the matured unit we continue to do about 20.5% EBITDA margin. On the overall base revenue, which we continue to do for these mature units in the past. Sure. 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? What are your expectation in terms of when do you think both the Bengaluru hospitals should be able to achieve break-even? At March exit, I mean Yeah, please go ahead, Abhinay Bollineni, if you will. 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, so there might be some drag there. 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 empanelments. Once that is done, I think there will be more traction for growth. As far as Bengaluru is concerned, like you said, Mahadevapura within 12 months of commissioning. We commissioned it in October. 12 months from then we should break. There was one month we were EBITDA positive in Mahadevapura. EBITDA neutral, not positive. I think before October we should become EBITDA positive, yeah, single digit positive in Mahadevapura. As far as special 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, Abhinay Bollineni. 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 INR 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 FY 2027 and 2028? It's difficult to quantify right now, Rahul. You're just waiting for these empanelments to be done and then the ramp-ups can happen faster. Sure. It will be less than half the number. Okay. Okay. Sure. Sure. Sure. Sure. Okay. I will join the dots. Thanks, Abhinay Bollineni. Thank you. Next question comes from the line of Aditya Jha with Incred Asset Management. Please go ahead. Thanks for taking my question. Would like to know the management perspective on, you know, 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 the capital structure and fundraise? No, I think, you see, given the feedback from most of our investors, you know, they all, they all believe that a healthy net debt EBITDA ratio should be 1: 2. Now that it's slightly higher than 1 is, it's like 1: 3, we 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 the new greenfield expansion. Got it, sir. Thanks. Thank you. A reminder to all the participants that you may press star and one to ask a question. Once again, a reminder to all the participants that you may press star and one to ask a question. 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. Thank you very much for all the relevant questions. As we all already ramped up and given the knowledge that our entire aim is to see that whatever the last five years we have been achieved, I keep on telling that in the next few years, in the next five years also we'll try to achieve the same growth. That's why we are trying to do these expansions, greenfield, brownfield, as well as QIP. The reason is, and also we were mentioning all the time that our debt to EBITDA we should not cross more than 1:2, and also the asset ratios, and with keeping all those things, the PAT this quarter and the EPS and all this normally obviously has come down. We realize that we know that, when this financial year it will cross the whatever expectations of the all these things. That's why we are raising these 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 accruing, nearly INR 120 EBITDA every year, and that also comes down in the next year. Moving forward, I think, this will not be much. We can see the company should be able to, and we're anticipating the company should go on a healthy note in the next 3 to 5 years. Thank you very much for all the questions again. Thank you. On behalf of KIMS Hospital and IIFL Capital, that concludes this conference. Thank you for joining us. You may now disconnect your line.