KMC Speciality Hospitals (India) Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

KMC Speciality Hospitals (India) Ltd trades at ₹142, in a confirmed uptrend and 40 weeks into that stage. That is +40.9% against its own 200-day average. It sits at 100% of a 52-week range of ₹64 to ₹142. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 33 straight weeks.

Today the stock is in a confirmed uptrend — week 40 of stage 2, confirmed. At ₹142 it trades +40.9% versus its 200-day average and sits at 100% of its 52-week range (₹64–₹142).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved +1,606% while the NIFTY 500 moved +277% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 33 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

KMC Speciality Hospitals (India) Ltd's story is not scored yet against the markers our research file set on 17 May 2026. Where it sits in its own cycle: MID_EXPANSION. Still open: One hospital, one city — any adverse event (key doctor attrition, clinical incident, regulatory action) has no operational hedge.

Our read, 17 May 2026. Maa Kauvery ramp-up is still printing: occupancy at 82%, ARPOB +17% YoY — operating leverage is working and the gestation drag is behind us.

From the numbers. PE at 37th percentile of 10Y range — not distressed, not expensive. EPS trajectory is upward: ₹0.28 → ₹0.46 → ₹0.66 → ₹0.84 in last 4 quarters. TTM PAT YoY +52% confirms EARNINGS_DRIVEN cycle. Current PE of 37x will…

From the price. Price stage 2, week 40 — above its 200-day line, relative strength falling.

From the research. Maa Kauvery ramp-up is still printing: occupancy at 82%, ARPOB +17% YoY — operating leverage is working and the gestation drag is behind us.

🚨 Where they disagree. PE at 37th percentile of 10Y range — not distressed, not expensive. EPS trajectory is upward: ₹0.28 → ₹0.46 → ₹0.66 → ₹0.84 in last 4 quarters. TTM PAT YoY +52% confirms EARNINGS_DRIVEN cycle. Current PE of 37x will compress naturally if PAT growth continues at 50%+ for another 2 quarters. Zero FII holding; promoter stable at 75%. Institutional signal neutral — small-cap BSE-listed stock with thin float.

What is proven. Maa Kauvery ramp-up is still printing: occupancy at 82%, ARPOB +17% YoY — operating leverage is working and the gestation drag is behind us.

What is not proven yet. One hospital, one city — any adverse event (key doctor attrition, clinical incident, regulatory action) has no operational hedge.

Layer 2 read, 22 August 2026 — ADVANCE. A filled new hospital is lifting profit just as sector capacity growth is being cut back. Revenue rose from Rs 67 crore to Rs 92 crore and profit from Rs 8 crore to Rs 17 crore in Jun 2026, while the web-fallback claim reports 82% occupancy at the new facility. External sector evidence is favorable: hospitals have a TAILWIND and capital flows read IDEAL_TROUGH_SETUP. The social valuation warning limits enthusiasm but does not break the operating thesis.

What would change Layer 2’s mind. ADVANCE would flip to DROP if Maa Kauvery occupancy stays below 70% and operating margin below 25% for two reported quarters.

Layer 3 read, 22 August 2026 — BENCH. The hospital is performing, but new group financing risk makes this the wrong time to commit capital. The existing facility is delivering, and FY26 capital spending had fallen enough to produce Rs 57 crore of free cash flow. L3 found a newer and more important fact: 46.93% of the promoter holding company's stake is indirectly encumbered, while a targeted source says KMC guarantees parent debt; that escalates Timeline risk R2 from simple single-city concentration to group-level funding exposure.

What would change Layer 3’s mind. Move BENCH to DEPLOY only if primary filings show the new Rs 519 crore expansion is ring-fenced, KMC has no enforceable parent-debt call, and the 46.93% indirect encumbrance is released or demonstrably harmless; a default or guarantee call flips this to DROP.

The test written in advance. Single-Asset Concentration Risk — Single-Asset Concentration Risk Any regulatory notice, NABH suspension, or disclosure of key doctor departure by the next result.

The test written in advance. Related-Party Governance (Parent Corporate Guarantee) — Related-Party Governance (Parent Corporate Guarantee) Any invocation of guarantee; parent group's credit metrics; dividend policy by the next result.

The test written in advance. Occupancy Plateau Near Capacity Ceiling — Occupancy Plateau Near Capacity Ceiling Occupancy trending above 87% with flat ARPOB — signals overcrowding not mix improvement by the next result.

What the company does. Q3 FY26: revenue +33.7% YoY to ₹82 Cr, PAT +82.7% to ₹13.7 Cr, EBITDA margin expanded from 27.5% to 31.1% — cost operating leverage kicking in as Maa Kauvery fills up. Occupancy at 82% (vs 74% a year ago), IPD volumes +18% YoY, ARPOB at ₹31,481 (+17% YoY) — pricing power intact in a Tier-II market with limited quality competition. 9-month FY26 PAT +89.9%, D/E improved to 0.38 from 0.50, cash ₹49 Cr vs ₹17.5 Cr a year ago — balance sheet improving as the new facility ramps. Next catalyst: further occupancy push toward 85%+ and a new hospital launch in FY27.

Lever 1 · Operating leverage — BUILDING. 200-bed Mother & Child Care facility operational since Jan 2024 — occupancy at 82% by Q3 FY26 drives incremental revenue at ~60% gross margin on fixed-cost base. What proves it keeps working: Maa Kauvery Ramp-Up (Operating Leverage). It stops working if Any regulatory notice, NABH suspension, or disclosure of key doctor departure.

Lever 2 · Value-added mix — BUILDING. Blended ARPOB ₹31,481 — up 17% YoY — driven by higher-complexity cases and ARPP IP at ₹1.22 lakh/case (+8% YoY). What proves it keeps working: ARPOB Expansion (Mix and Pricing). It stops working if Any regulatory notice, NABH suspension, or disclosure of key doctor departure.

Lever 14 · A bigger market to sell into — BUILDING. OPD volumes +32% YoY to 53,406 in Q3 FY26 — outpatient channel feeding IPD pipeline and growing brand reach across 9 surrounding districts. What proves it keeps working: OPD Volume Growth (Catchment Expansion). It stops working if Any regulatory notice, NABH suspension, or disclosure of key doctor departure.

Lever 15 · Market-share gains — BUILDING. Kauvery group credit upgrade to IND AA- (India Ratings, Dec 2024) and parent plan to add 1,000 beds by FY27 strengthen KMCSHIL's referral network and payer mix. What proves it keeps working: Group-Level Brand Tailwind. It stops working if Any regulatory notice, NABH suspension, or disclosure of key doctor departure.

Sources: our stock research file (17 May 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

KMC Speciality Hospitals (India) Ltd reported ₹92.0 Cr of revenue in the Jun 26 quarter, +37.3% year on year. That is the 11th straight quarter of year-on-year growth. Over 10 years it has compounded at 21.7% a year. The last full year, FY26, came in at ₹306 Cr. The last four reported quarters add to ₹331 Cr.

Why this happened. OPD is the top-of-funnel for IPD conversion. 92% of inpatients come from nine districts around Trichy. OPD growth at 32% YoY indicates brand penetration is still expanding in the catchment — not yet saturated. Tele-medicine implementation (per FY25 annual report) is extending reach into rural areas beyond physical travel distance.

FY26 revenue came in at ₹306 Cr (+31.9% on the year), capping 10 years at 21.7% compound. The latest quarter (Jun 26) printed ₹92.0 Cr, +37.3% year on year — the 11th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +35.0% growth against the decade's 21.7% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +35.1% over the last 4 quarters against +32.3%/yr over the last 8 — stabilising; TTM profit +128.0% vs +40.2%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

KMC Speciality Hospitals (India) Ltd's operating margin is 31.0% in the Jun 26 quarter, +6.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 5.0% to 29.0%.

Why this happened. The dominant driver. The Maa Kauvery facility added 200 beds to the existing 250-bed campus, bringing total capacity to 450 beds. Census beds (occupied) are 330 — reflecting that Maa Kauvery is still ramping toward census capacity. As this facility fills up, every incremental rupee of revenue has very high flow-through to EBITDA because doctors, nursing staff, facility costs are largely sunk. Q3 FY26 illustrates this: expenses up 23.2% on revenue up 33.7%. EBITDA margin expanded from 27.5% to 31.1%.

The latest quarter's operating margin is 31.0%, +6.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 5.0%–29.0%, and FY26's 29.0% is the top of that band — a record year.

Why the margin moved: operating margin went +6.3 pp year on year while gross margin went +2.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

KMC Speciality Hospitals (India) Ltd earned ₹17.0 Cr of net profit in the Jun 26 quarter, +112.5% year on year. It is the 5th consecutive quarter of growth. Full-year FY26 profit was ₹47.0 Cr. The 10-year compound rate is 31.7%. That is 18.5% of the quarter's revenue. The same quarter a year earlier earned ₹8.0 Cr.

Jun 26 profit was ₹17.0 Cr, +112.5% year on year — the 5th consecutive quarter of growth. On the full year, FY26 printed ₹47.0 Cr (+123.8%), and the 10-year compound rate is 31.7%.

Why profit moved: revenue contributed +37.3% and the margin +6.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +140.6% vs revenue +35.0%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 179% of KMC Speciality Hospitals (India) Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹79.0 Cr of operating cash against ₹47.0 Cr of profit. After ₹22.0 Cr of capital spending, ₹57.0 Cr was left as free cash.

FY26: operating cash of ₹79.0 Cr against reported profit of ₹47.0 Cr, leaving free cash of ₹57.0 Cr after ₹22.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 179% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 179%: the cash cycle stretched 26 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 3.6× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

KMC Speciality Hospitals (India) Ltd's cash conversion cycle runs −42 days in FY26, up from −68 days in FY21. Capital spending ran ₹180 Cr over the last 3 years. At FY26 sales of ₹306 Cr each day of that cycle holds about ₹0.8 Cr, so roughly ₹−35.0 Cr sits inside the business at any moment.

FY26: debtors at 9 days, inventory at 31 days — roughly 1.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −42 days, looser than FY21's −68.

The full loop: cash goes out to suppliers and production on day 0; stock waits 31 days to sell; customers pay about 9 days after that; and suppliers themselves are paid at 82 days — netting out to the −42-day cycle.

In money terms: at FY26 sales of ₹306 Cr, each day of the cycle holds about ₹0.8 Cr — so the −42-day loop keeps roughly ₹−35.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹180 Cr over the last 3 fiscal years against ₹50.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

KMC Speciality Hospitals (India) Ltd earns a ROCE of 26% in FY26. That is up from a trough of 2% in FY14. Return on invested capital clears the cost of that capital by +12.2 percentage points, so growth here adds value rather than only size. The wiring behind it is 15.4% net margin on 0.92× asset turns.

FY26 ROCE is 26%, recovered from a FY14 trough of 2% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 15.4% net margin × 0.92× asset turns × 1.58× balance-sheet leverage ≈ 22.4% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 24.2% − 12.0% = a +12.2 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

KMC Speciality Hospitals (India) Ltd carries ₹84.0 Cr of borrowings against ₹210 Cr of equity in FY26, a debt-to-equity of 0.40. Operating profit covers the interest bill 11×. Over 5 years borrowings went from ₹29.0 Cr to ₹84.0 Cr. Capital spending ran ₹180 Cr across the last 3 of those years.

FY26: borrowings of ₹84.0 Cr against equity of ₹210 Cr — a debt-to-equity of 0.40. Operating profit covers the interest bill 11×. Over 5 years borrowings went from ₹29.0 Cr to ₹84.0 Cr while capital spending ran ₹180 Cr in just the last 3 — part of the build-out is riding on borrowed money.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of KMC Speciality Hospitals (India) Ltd moved a full percentage point over the last two years — the register is quiet. Foreign institutions moved +0.0 points over the same window, to 0.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: +0.0 points over 8 quarters to 75.0%; Foreign institutions: +0.0 points over 8 quarters to 0.0%.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

KMC Speciality Hospitals (India) Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

KMC Speciality Hospitals (India) Ltd trades at 41.5× P/E, mid-range by its own standards (42nd percentile). Its long-run median P/E is 43.3×, measured across 10.4 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 41.5× is mid-range by its own standards (42nd percentile), against a long-run median of 43.3× measured over 10.4 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved +119.1% against a +110.7% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +22.4%/yr price move, ~+25.5%/yr came from earnings growth and ~−3.1 pp from the multiple (compressing); over 10y, of the +33.1%/yr price move, ~+31.6%/yr came from earnings growth and ~+1.5 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 13 June 2026 price, KMC Speciality Hospitals (India) Ltd was paying for profit growth of about 21.2% a year. Profit itself has compounded 31.7% a year over the past 10 years. Today the market pays 41.5× P/E, the 42nd percentile of its own 10-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 25 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

KMC Speciality Hospitals (India) Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −16.7% at the trough to +128.0%, a 5-quarter improving streak, ROCE holding at 26.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

No sector-relative score — KMC Speciality Hospitals (India) Ltd is not present in the sector comparison for Hospitals.

The score is a rank WITHIN a peer set: every metric is scored by percentile against the other members. Without the peer set there is no score to state, so none is invented here.

Frequently asked questions