Company Overview

Paras Healthcare Limited is a leading multi-specialty tertiary care healthcare provider operating a network of 8 hospitals with 2,211 total bed capacity across North and East India (Haryana, Uttar Pradesh, Bihar, Jharkhand, Rajasthan, Jammu & Kashmir). The company focuses on CONGOR specialties (Cardiac, Oncology, Neuro sciences, Gastro sciences, Orthopedics, and Renal sciences) which contributed 74.35% of Q1 FY2027 revenue. The business operates through owned, leased, revenue-sharing, and public-private partnership models, with seven hospitals accredited by NABH.

Offer Details

IPO Structure: ₹14.5 billion initial public offering comprising:

  • Fresh Issue: 7,215,007 equity shares aggregating to ₹5,000 million
  • Offer for Sale: 13,708,513 equity shares aggregating to ₹9,500 million
  • Dr. Dharminder Kumar Nagar (Promoter): ₹3,000 million
  • Commelina Ltd (Investor): ₹6,500 million

Final Offer Price: ₹693 per equity share (693 times face value)

Listing: Proposed on BSE and NSE

Financial Performance

Revenue Growth: Strong performance with revenue increasing from ₹11,290.39 million (FY2024) to ₹16,059.52 million (FY2026), representing 42.2% growth over two years. Q1 FY2027 revenue reached ₹4,702.78 million.

Profitability Turnaround: Company turned profitable in FY2026 with net profit of ₹438.34 million compared to losses of ₹579.83 million (FY2025) and ₹153.31 million (FY2024). Q1 FY2027 profit stood at ₹496.82 million.

EBITDA Expansion: EBITDA margin improved significantly from 13.42% (FY2024) to 20.60% (FY2026), with Q1 FY2027 margin at 23.70%.

Capital Structure: Pre-offer paid-up capital of ₹100.99 million, post-offer capital of ₹108.20 million. Debt-to-equity ratio of 3.53 (FY2026) expected to improve post-IPO debt repayment.

Use of Proceeds

Net Proceeds Utilization (₹4,652.29 million):

  • Debt repayment: ₹3,209 million (69.0%)
  • Investment in subsidiary PMHPL for debt repayment: ₹541 million (11.6%)
  • General corporate purposes: ₹902.29 million (19.4%)

Operational Metrics

Hospital Portfolio: 8 hospitals categorized as:

  • Mature Hospitals (4): Operational >7 years, contributed ₹11,794.95 million revenue (FY2026)
  • Emerging Hospitals (2): Operational 4-7 years, ₹2,826.48 million revenue
  • New Hospitals (2): Operational <4 years, ₹1,438.09 million revenue

Key Performance Indicators (Q1 FY2027):

  • Bed Occupancy Rate: 69.72%
  • ARPOB: ₹49,351.70 per day
  • Operational Beds: 1,502 (67.93% of capacity)
  • Employee Count: 5,315 professionals (1,084 doctors, 1,937 nurses)

Payor Mix (Q1 FY2027): Government schemes (43.63%), Insurance/TPA (25.07%), Self-pay (31.30%)

Risk Factors

Business Risks: High employee attrition (60.38% in FY2026), concentration in North India (68.07% of revenue), dependence on CONGOR specialties, operations on leased premises (6 of 8 hospitals), high working capital requirements (trade receivables of ₹4,476 million), and significant contingent liabilities (₹3,984.42 million).

Market Risks: Intense competition from established players (Apollo, Fortis, Max Healthcare), pricing pressures from government schemes, foreign exchange exposure, and economic sensitivity affecting healthcare spending.

Regulatory Risks: Extensive healthcare regulations, pending approvals/license renewals, GST ambiguity on medical supplies, ongoing tax proceedings (GST demand of ₹280.82 million under appeal), and compliance with new Labour Codes.

Expansion Plans

Capacity Expansion: Planned addition of 800 beds through:

  • Gurugram II Hospital: 300 beds (expected FY2027)
  • Ludhiana Hospital: 500 beds (expected FY2028)

Target: Total bed capacity of 3,011 by March 31, 2028

Management & Governance

Promoter: Dr. Dharminder Kumar Nagar (Managing Director) holds 72.80% pre-offer, with over three decades of healthcare experience. Post-offer promoter holding will be 63.75%.

Board Composition: 7 directors (2 executive, 5 non-executive including 3 independent directors) with established committees for audit, nomination, risk management, and CSR.

Pre-IPO Investors: Commelina Ltd (16.44%), 360 ONE Special Opportunities Fund (5.10%), Axis New Opportunities AIF (3.63%)

Legal & Compliance

Ongoing Proceedings: 6 criminal proceedings by company, 4 against company; 22 tax proceedings; 6 statutory/regulatory proceedings; 9 material civil litigations; patient compensation claims of ₹59.75 million.

Regulatory Approvals: SEBI observation letter (August 24, 2026), BSE/NSE in-principle approvals (July 20, 2026), lender consents for debt repayment.

Advisors: BRLMs - JM Financial, BofA Securities India, Nuvama Wealth Management; Auditor - Walker Chandiok & Co LLP; Registrar - MUFG Intime India Private Limited.