Are KMC Speciality Hospitals (India) Ltd latest results good or bad?

KMC Speciality Hospitals (India) Ltd has reported its financial results for the third quarter of FY26, showcasing notable operational trends. The company achieved a net profit of ₹13.73 crores, reflecting a significant year-on-year increase of 82.83% and a quarter-on-quarter growth of 26.67%. This marks the highest quarterly profit in the company's recent history, indicating effective management of costs and improved operational efficiency. Revenue for the quarter reached ₹82.06 crores, which is up 33.74% year-on-year and 9.56% quarter-on-quarter. This consistent revenue growth over seven consecutive quarters highlights robust demand for the hospital's specialty healthcare services, driven by increased patient footfall and enhanced revenue realization. The operating margin expanded to 30.17%, up 235 basis points from the previous quarter and 408 basis points from the same quarter last year. This improvement demonstrates the company's ability to leverage its fixed cost base effectively as revenue volumes grow. The profit after tax (PAT) margin also saw an increase, reaching 16.73%, further emphasizing the company's operational strength. Despite a rise in employee costs, which increased by 3.66% sequentially, these costs remained well-controlled relative to revenue, suggesting better productivity from the existing workforce. The company also maintains a conservative debt profile, with a debt-to-EBITDA ratio of 1.29 times, reflecting financial stability amidst ongoing capacity expansion efforts. Overall, KMC Speciality Hospitals has shown a remarkable turnaround in its financial performance, driven by consistent revenue growth and margin expansion. The company has seen an adjustment in its evaluation, reflecting the market's recognition of its improving fundamentals and operational momentum.