Krishna Institute of Medical Sciences Ltd Management Discussions

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With increasing smartphone usage and internet penetration, India offers immense potential for digital health innovation. Technologies like telemedicine, AI powered diagnostics, and remote patient monitoring are transforming healthcare delivery, particularly in underserved regions by enhancing accessibility, reducing costs, and enabling timely, patient-centric care across the country.

India is witnessing rapid growth in hospital infrastructure through public-private partnerships and private investments. This expansion creates opportunities for integrating advanced medical technologies and healthcare IT systems, driving improved patient outcomes, operational efficiency, and greater access to high quality healthcare services across both urban and rural areas.

Indias growing and ageing population is significantly increasing demand for quality healthcare. Improved life expectancy is prompting a surge in need for geriatric care, chronic disease management, and specialised services. As a result, providers are expanding capacity and tailoring infrastructure to address this demographic shift, opening sustained growth avenues.

Navigating Indias complex and evolving regulatory environment remains a significant challenge for healthcare providers. Frequent policy changes, multi-tiered governance, and fragmented oversight across states can delay approvals, increase operational costs, and hinder innovation.

India faces stark disparities in healthcare access between urban and rural areas. While metropolitan regions often benefit from advanced medical facilities, large parts of the population in remote and underserved regions still lack basic healthcare services. This uneven distribution undermines national health outcomes and equitable care delivery.

India continues to experience a critical shortage of trained healthcare professionals, including doctors, nurses, and technicians. The shortage is particularly acute in rural areas, affecting patient care quality and increasing the burden on existing staff. This gap limits the systems ability to scale and respond to rising demand.

Despite policy reforms, health insurance penetration in India remains low. A significant portion of the population remains uninsured or underinsured, leading to high spending. This financial vulnerability not only discourages preventive care but also limits the healthcare systems ability to deliver consistent, affordable services at scale.

PM-ABHIM strengthens Indias healthcare infrastructure across all levels by investing in public health labs, emergency response systems, and digital health technologies. It is Indias largest public health infrastructure initiative since 2005, aiming to enhance healthcare accessibility and resilience through technology driven reforms.

The NHM supports the enhancement of healthcare infrastructure and human resources in rural and underserved regions. It provides technical and financial assistance to states and UTs, ensuring improved access to quality health services in line with the National Health Policys broader goals.

Aligned with the National Digital Health Blueprint and NHP 2017, this policy supports creation of a digital infrastructure to deliver universal health coverage. It promotes Atma Nirbhar Bharat by enabling secure, standardized health data systems for nationwide integration of healthcare services.

ABDM aims to establish a unified digital health ecosystem by integrating healthcare providers and patients using unique health IDs. It bridges gaps in infrastructure and public health management across urban and rural areas, empowering communities to manage health crises independently and effectively.

The e-Sanjeevani platform provides remote healthcare consultations, reducing the need for physical visits and ensuring continuity of care. It has been pivotal during the pandemic, enabling doctor consultations from home and expanding access to medical advice, particularly in underserved and rural areas.

The Aarogya Setu App has evolved into a comprehensive National Health App under ABDM. It enables users to create health IDs, access digital lab reports and prescriptions, schedule teleconsultations via e-Sanjeevani, and manage COVID-19 vaccination certificates, all through a single, integrated digital platform.

Launched in October 2024, the U-WIN Portal digitizes vaccination services for pregnant women and children. It offers anytime-anywhere vaccination access, self-registration, SMS alerts, digital certificates, and supports creation of Ayushman Bharat Health Accounts for individuals and children, enhancing transparency and accessibility in immunization efforts.

Krishna Institute of Medical Sciences Limited (KIMS) is one of Indias largest corporate healthcare groups, with a robust footprint across Telangana, Andhra Pradesh, Maharashtra, Kerala, and Karnataka. Operating under the trusted “KIMS Hospitals” brand, the Company delivers integrated, multidisciplinary healthcare services with a focus on tertiary and quaternary care, underscoring its commitment to clinical excellence at an affordable cost.

KIMS manages a network of advanced multi-specialty hospitals, comprising a combined capacity of over 5,000 beds. Its comprehensive service offering spans more than 40 specialties and super specialties, including cardiac sciences, oncology, neurosciences, gastroenterology, orthopaedics, organ transplantation, renal sciences, and mother and child care.

The Companys growth and reputation are rooted in its unwavering commitment to delivering accessible, high- quality healthcare and its strong relationships with skilled medical professionals. These pillars have been instrumental in strengthening the KIMS Hospitals brand and enhancing its role as a trusted healthcare provider in the regions it serves.

Established in 2010 by Dr. Bhaskar Rao Bollineni, Chairman & Managing Director of KIMS Hospitals, the KIMS Foundation and Research Centre (KFRC) is at the forefront of diverse and innovative scientific research in healthcare. As the research arm of KIMS Hospitals, KFRC is committed to advancing clinical knowledge, improving patient outcomes, and contributing to the broader field of medical science. KFRC engages in multidisciplinary research activities spanning biotechnology, genomics, pharmacology, medical engineering,

and translational medicine. Its work is underpinned by a strong foundation of academic rigor and a clear focus on real-world healthcare applications.

The Centre has forged strategic collaborations with several premier institutions including the Defence Institute of Advanced Technology (DIAT), Indian Institute of Chemical Technology (IICT), University of Hyderabad, and the Genome Foundation. These partnerships have enriched KFRCs intellectual ecosystem by providing access to cutting-edge expertise and fostering a culture of innovation. Notably, these alliances have enabled the development of collaborative PhD programs and joint supervision of research scholars, further strengthening KFRCs academic infrastructure. Through such initiatives, KFRC continues to attract high calibre talent and solidify its position as a hub for pioneering research and scientific advancement in the healthcare sector.

KIMS Hospitals remains deeply committed to nurturing the next generation of healthcare professionals through robust medical education programmes. In affiliation with state medical boards and universities, the hospitals offer a comprehensive range of broad and super specialty training, including Diplomate of National Board (DNB) courses and post-doctoral fellowships across various disciplines. These programmes are designed to impart advanced clinical knowledge and hands-on experience, fostering a culture of academic excellence and ethical medical practice. The educational initiatives are further enriched by the work of KIMS Foundation and Research Centre (KFRC), which plays a pivotal role in bridging medical education with scientific research and innovation.

KFRC has entered into strategic collaborations with premier institutions such as the Defence Institute of Advanced Technology (DIAT), Indian Institute of Chemical Technology (IICT), and the University of Hyderabad. These partnerships facilitate joint academic programs, research projects, and PhD level training in cutting edge areas like cancer drug delivery systems, blood embolic agents, biotechnology, and medical engineering. In addition to institutional collaborations, KFRC promotes inclusive and community oriented education through associations with organizations such as the Public Health Foundation of India (PHFI), Tech Mahindra Foundation, and Deaf Enabled Foundation (DEF). Initiatives include mobile cancer screening units, youth skill development, and the establishment of SIGNCARE, a Telemedicine Centre catering to the hearing impaired. Collaboration with the Genome Foundation has further strengthened academic infrastructure by offering access to advanced laboratory facilities and training in molecular genetics and cytogenetics. These efforts have expanded opportunities for DNB and PhD students to undertake high- impact research projects.

Together, KIMS Hospitals and KFRC are shaping a dynamic academic ecosystem that integrates medical education, translational research, and social responsibility, empowering students and healthcare professionals to meet the evolving challenges of modern medicine.

In FY25, KIMS Hospitals delivered a strong performance, recording a consolidated income of Rs. 3,067 crores at a year-on-year growth of 22%. EBITDA also increased by 24.7% compared to FY24, reflecting the Companys sound operational efficiency and solid financial position.

The Company has strengthened its cybersecurity framework through real-time monitoring, endpoint protection, and integration of threat intelligence. Key measures include the use of SIEM tools, IDS/IPS systems, and regular third-party vulnerability assessments. Security protocols align with CIS Controls and are supported by regular employee training and incident response drills. With endpoints forming a major part of the digital environment, focused investments have been made in behavioral analytics and threat detection.

KIMS Hospitals recognises that its people are fundamental to delivering high-quality healthcare and sustaining long-term organisational growth. The Company remains committed to effective human resource management as a strategic pillar, ensuring it attracts, retains, and nurtures top-tier talent across all levels of operation. With a dedicated Human Resources department, KIMS Hospitals implements progressive, peoplecentric policies that foster a positive and inclusive work culture. These efforts are aimed at empowering employees, enhancing job satisfaction, and aligning the workforce with the Companys mission of patient-centred care.

As of March 31,2025, KIMS Hospitals, including its subsidiaries, employed over 10,000 individuals. This diverse workforce brings a rich blend of experiences and backgrounds, united by a shared dedication to improving patient health outcomes. The Company

actively fosters diversity and inclusion as a core component of its organisational culture, offering fair and equal opportunities for individuals from all backgrounds to contribute and grow.

Continuous professional development remains a key HR priority. The HR team regularly organises mandatory training sessions and skill enhancement programmes, equipping employees with the tools and knowledge required to adapt and excel in a dynamic healthcare environment. All employees are required to complete a minimum of 40 hours of training annually. Internal and external training programmes are conducted on topics including HR policies, NABH & ISO standards, occupational hazards, POSH, grievance handling, hospital disaster management, privileging processes, IT security, and the use of Adrenalin, LMS and PMS systems. Additionally, external workshops on financial management, clinical governance, womens safety, self-defense, and cybercrime are held periodically. KIMS also prioritises workplace safety through regular mock drills and training sessions on fire safety, radiation safety, incident reporting, and basic life support (BLS).

KIMS takes pride in celebrating its people. Achievements and exceptional contributions by staff are recognised through town hall meetings and award ceremonies. Security personnel and other frontline workers are honoured on national occasions such as Independence Day and Republic Day by senior leadership, including the Managing Director. Through a holistic and inclusive approach to human resources, KIMS Hospitals continues to leverage the collective strength of its people to drive operational excellence and deliver exceptional patient care.

The Company adheres to the principles of fair representation and full disclosure in all its dealings and communications. Its annual report, results, presentations, and other forms of corporate and financial communications are designed to provide extensive details and convey important information on a timely basis. The Companys philosophy on corporate governance is committed to the highest levels of transparency, accountability, and fairness in every aspect of its operations and in all its interactions with stakeholders, employees, government entities, and lenders. The Company is dedicated to ensuring that all its operations and actions consistently aim to enhance shareholder value over a sustained period.

This approach ensures the Company always maintains a balance between enhancing shareholder wealth and upholding the interests of other stakeholders.

For additional details, please refer to the Companys corporate governance report.

Certain statements in this Management Discussion and Analysis pertaining to KIMS Hospitals objectives, projections, expectations, estimates, future outlook, and other forwardlooking statements are based on currently available information, assumptions, and forecasts, and are subject to applicable laws and regulations. These forward-looking statements involve known and unknown risks, uncertainties, and other factors, many of which are beyond the Companys control, that could cause actual results, performance, or achievements to differ materially from those expressed or implied. Key factors that may

impact actual outcomes include, but are not limited to, changes in macroeconomic conditions, shifts in healthcare regulations or policy, competitive dynamics, pricing pressures, technological advancements, political or economic developments in India and globally, legal proceedings, and fluctuations in input or operational costs.

These statements are not guarantees of future performance and should not be unduly relied upon. KIMS Hospitals undertakes no obligation to publicly update or revise any forward-looking statements in light of future events or new information, except as required by applicable law.