KMCH Expands Coimbatore Campus with ₹120 Cr Investment, Promoters Boost Stake
Overview
Kovai Medical Center and Hospital Limited (KMCH) is launching a significant ₹120 crore expansion at its Coimbatore campus, set to be operational by January 15, 2026. The new facility will enhance specialized neuro sciences and postgraduate medical education, funded by internal accruals and bank loans. Concurrently, promoter stake rose to 56.53% and Foreign Institutional Investors increased their holding in Q3FY26, signaling strong investor confidence amid the hospital's growth trajectory.
Kovai Medical Center and Hospital Limited (KMCH) is embarking on a substantial expansion, injecting ₹120 crore into its Coimbatore campus. The new facilities, including the KMCH Institute of Neuro Sciences & OPD Block and the KMCH Medical College Post Graduate Institute, are slated for launch on January 15, 2026.
Expansion Focus
The investment prioritizes enhancing specialized care capabilities, particularly in neuro sciences and critical care for brain and nerve health. The project includes ultra-modern surgical theatres and dedicated neuro ICUs, aiming to streamline patient flow and modernize surgical interventions. This expansion focuses on augmenting outpatient services and critical care infrastructure rather than solely increasing bed count, building upon its existing capacity of 2,086 beds.
Funding and Integration
The ₹120 crore expansion is being financed through a combination of internal accruals and bank borrowings. KMCH expects the full integration of these new capacities to be completed within the next three months following the January 2026 operational launch. This marks a significant step in bolstering the institution's clinical reach in specialized medicine and medical education.
Investor Confidence Grows
Recent financial disclosures reveal a robust increase in investor confidence. In the third quarter of fiscal year 2026 (Q3FY26), promoters increased their stake to 56.53%. Foreign Institutional Investors (FIIs) also added 7,247 shares, raising their stake to 1.31% compared to the previous quarter. The company's market capitalization stands at ₹5,995 crore, with a Price-to-Earnings (PE) ratio of 26x, Return on Equity (ROE) of 21%, and Return on Capital Employed (ROCE) of 23%.
The stock has shown resilience, trading 16.4% above its 52-week low of ₹4,810.20 per share. Over the past five years, KMCH has delivered substantial returns, surging by 375%. This sustained growth underscores the market's positive reception to the hospital chain's strategic initiatives and financial performance.
