Paras Healthcare
What they do: Provides healthcare services through hospital operations. Its wholly owned subsidiary PMHPL operates the Srinagar hospital.
By IPO Milega Research · Published
Revenue grew and the company returned to profit in FY2026 after losses in the prior two years.
- GMP (unofficial)
- +12.26%
- ₹85 a share
- Opens
- 21 Oct
- In 6 days
- Min. investment
- N/A
- One lot
GMP is an unofficial grey market indication. GMP updated 15 Oct, 15:05 IST.
- Price band
- ₹660-693
- Lot size
- N/A
- Min. investment
- N/A
- Issue size
- 1450 Cr.
- Open21 Oct 2026
- Close23 Oct 2026
- Allotment26 Oct 2026
- Listing28 Oct 2026
Overview
₹778 (+12.26%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹500 Cr
- Fresh issue
- To selling shareholders
- ₹950 Cr
- Offer for sale
- Repayment or prepayment of certain Company borrowings₹320.9 Cr22%
- Investment in Subsidiary PMHPL for borrowing repayment₹54.1 Cr4%
- General Corporate Purposes₹125 Cr9%
- Offer for sale: goes to selling shareholders₹950 Cr66%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials5.0
- Performance7.0
- Flexibility7.0
- Timing5.0
- Risk4.0
Revenue and EBITDA growth, a return to profit in FY2026 and planned debt repayment support modest fundamental upside. Prior-year losses, a 2.73% net margin, substantial borrowings and operating concentration limit the case for stronger gains.
Strengths4
- Built an eight-hospital network with 2,211 beds, 1,011 doctors and 1,665 nurses.
- Generated 74.70% of Fiscal 2026 operating revenue from CONGOR specialties.
- Fiscal 2026 operating cash flow rose to ₹1,635.12 million from ₹861.90 million in Fiscal 2025.
- Revenue increased across all three hospital maturity groups in Fiscal 2026.
Concerns5
- The group incurred consolidated losses in Fiscal 2024 and Fiscal 2025; future profitability remains uncertain, with Ranchi and Srinagar subsidiaries recording combined losses of ₹520.89 million in Fiscal 2026.
- Operations are concentrated in North India and CONGOR specialties, with high staff attrition and staffing, consumables and doctors’ fees forming a large share of expenses.
- Six of eight hospitals operate on leased premises, creating exposure to lease renewal, disruption and relocation risks.
- Outstanding litigation includes ₹1,162.25 million of quantified claims against the Company, including medical-negligence allegations, alongside pending criminal complaints and regulatory proceedings.
- CGHS and other government empanelment, billing and compliance issues could lead to penalties, reimbursement disputes or loss of empanelment; labour and tax matters may also create liabilities.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum14,5531 lots, 21 shares
- Retail Maximum1,89,18913 lots, 273 shares
- S-HNI Minimum2,03,74214 lots, 294 shares
- S-HNI Maximum9,89,60468 lots, 1428 shares
- B-HNI Minimum10,04,15769 lots, 1449 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 21 | 14,553 |
| Retail Maximum | 13 | 273 | 1,89,189 |
| S-HNI Minimum | 14 | 294 | 2,03,742 |
| S-HNI Maximum | 68 | 1428 | 9,89,604 |
| B-HNI Minimum | 69 | 1449 | 10,04,157 |
Timing
5.0/10The company has operated in healthcare for many years and is pursuing a sizeable mainboard issue with established book-running lead managers. The offer details provide no evidence on sector demand, valuation attractiveness, market conditions or the use of proceeds that would support a stronger timing assessment.
- Time to market
- The company appears institutionally prepared for a public issue, with a board, statutory auditor and multiple lead managers in place. The details do not indicate whether the issue is being brought at a particularly favorable market moment.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 5.0
- Listing on
- BSE, NSE
Key milestones
- 21 Oct 2026IPO Opens
- 23 Oct 2026IPO Closes
- 26 Oct 2026Basis of Allotment
- 27 Oct 2026Refunds Initiated
- 27 Oct 2026Credit to Demat Account
- 28 Oct 2026Listing Date
Financials
5.0/10- Revenue
- ₹1,629 Cr
- +24.0%
- Profit after tax
- ₹43.83 Cr
- -24.4%
- Net margin
- 2.7%
- -1.7 pts
- Assets
- ₹2,071 Cr
- +14.4%
- Return on equity
- 12.98%
- Debt to equity
- 2.16
- Revenue CAGR
- 19.26%
- ROCE
- 10.76%
- Return on net worth
- 12.98%
- NAV per share (₹)
- 39.11
- Price to book
- 15.73
Financial performance trend
Amount ₹ in croresRevenue grew and the company returned to profit in FY2026 after losses in the prior two years. High borrowings and a modest FY2026 net margin temper the improvement.
Borrowings were ₹8,541.01 million at March 2026, equal to about 2.16 times equity. The company plans to use ₹3,209 million of fresh issue proceeds to repay its borrowings and invest ₹541 million in PMHPL for repayment or prepayment of its borrowings. Debt is substantial, though the offer allocates funds to reduce it.
Fresh issue goes to the company. OFS goes to the selling shareholders.
Dr. Dharminder Kumar Nagar (up to ₹300 Cr), Commelina Ltd (up to ₹800 Cr), and 360 ONE funds (up to ₹200 Cr in aggregate).
The company is raising up to ₹500 Cr through a fresh issue, including ₹320.9 Cr for its borrowings and ₹54.1 Cr for PMHPL borrowings. Existing shareholders may sell up to ₹1,300 Cr; those proceeds go to the sellers.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks6
- Market risks3
- Operational risks5
- Regulatory risks5
Loss volatility, concentrated operations, staffing and lease dependence, sizeable litigation exposure, and ongoing regulatory matters create material financial and execution risks despite a return to profit in Fiscal 2026.
How the company offsets these
The Company has contested claims, replied to authority notices, sought quashing of an FIR, provided requested records, and reported insurance coverage equal to 116.80% of tangible assets.
Financial risks6
- Consolidated losses in Fiscal 2024 and Fiscal 2025, uncertain future profitability, and losses at the Ranchi and Srinagar subsidiaries in Fiscal 2026.
- ₹1,162.25 million in quantified claims against the Company and potential costs from other pending litigation.
- Unhedged USD exposure, including a Fiscal 2026 net forex loss of ₹17.71 million and PPE payables of ₹367.67 million.
- EPCG export obligations of ₹1,049.91 million, with ₹253.94 million of saved duty potentially repayable with 15% simple annual interest.
- Insurance exclusions and limits may leave losses or business interruption uninsured; an MRI breakdown previously caused nearly a month of uninsured lost revenue and profit.
- Related-party transactions may create conflicts; dividends are not assured and quarterly results and share prices may be volatile.
Market risks3
- North India generated 66.07% of revenue and CONGOR specialties generated 74.70%, creating geographic and specialty concentration.
- Competition, inflation, economic or geopolitical shocks may affect demand and performance.
- Non-GAAP measures and commissioned CRISIL data may have comparability or reliability limitations.
Operational risks5
- Staff attrition was 60.38% in Fiscal 2026; staffing, consumables and doctors’ fees represented 65.08% of expenses.
- Six of eight hospitals are on leased premises, exposing operations to disruption or non-renewal.
- Medical-negligence allegations, patient-care complaints and the pending investigation into a sexual-harassment incident may harm operations and reputation.
- Labour disruption and workforce compliance issues may affect hospital operations.
- Insufficient insurance coverage may leave equipment failures and business interruption losses uninsured.
Regulatory risks5
- CGHS billing notices and possible de-empanelment, including the earlier six-month suspension at Patna Hospital, and a pending Haryana empanelment notice.
- Pending criminal complaints, consumer claims and medical-negligence proceedings, including a pending FIR for which the Company has sought quashing.
- Pending labour-law, construction cess and other statutory matters, and uncertainty around new Labour Codes and potential retrospective GST on inpatient medicines and consumables.
- Competition-law penalties and other regulatory or tax actions may result in financial and operating consequences.
- Foreign judgments may be difficult to enforce in India.
Performance
7.0/10Paras Health operates eight tertiary and quaternary-care hospitals with 2,211 beds across North and East India. Revenue grew strongly from Fiscal 2024 to Fiscal 2026, supported by specialty care and hospitals at different maturity stages. Expansion plans could increase capacity to 3,011 beds by March 2028, while high attrition, leverage, leased premises and losses at newer hospitals weigh on execution.
- Historical growth
- Operating revenue grew at a 19.26% CAGR to ₹16,059.52 million and EBITDA at a 47.41% CAGR to ₹3,355.77 million between Fiscal 2024 and Fiscal 2026., Revenue CAGR: 19.26%; EBITDA CAGR: 47.41% over Fiscal 2024 to Fiscal 2026.
- Market comparison
- No comparable financial or operating metrics for named peers are supplied, so relative performance cannot be assessed. The company operates in regions with low physician, nurse and ICU-bed density, supporting demand potential. It competes in a regulated, competitive hospital market and receives 41.28% of Fiscal 2026 operating revenue from government schemes and PSUs.
- Future potential
- Capacity is planned to rise from 2,211 to 3,011 beds by March 31, 2028. Revenue growth may benefit from hospital ramp-up, specialty expansion and underserved regional markets. New hospitals typically require 12–24 months to reach optimal utilisation and EBITDA breakeven.
- Operational consistency
- Performance is supported by growth across hospital maturity groups, but newer hospitals remain loss-making and their ramp-up takes time. High staff attrition, supplier concentration, dependence on government and PSU payors, leases at six hospitals, and substantial debt create operating and financial variability.
- Experience
- The supplied information gives no individual management biographies or tenure details. Operational execution includes running a multi-hospital network and planning two new hospitals.
- Track record
- Revenue and EBITDA growth and increased operating cash flow indicate progress. Execution risks include 60.38% workforce attrition, an Adjusted Debt to Equity ratio of 2.20, and negative Operating EBITDA at new hospitals.
Key achievements
- 01Built an eight-hospital network with 2,211 beds, 1,011 doctors and 1,665 nurses.
- 02Generated 74.70% of Fiscal 2026 operating revenue from CONGOR specialties.
- 03Fiscal 2026 operating cash flow rose to ₹1,635.12 million from ₹861.90 million in Fiscal 2025.
- 04Revenue increased across all three hospital maturity groups in Fiscal 2026.
Flexibility
7.0/10The eight-hospital network spans five states and one union territory, with a regional focus on markets described as underserved. Flexible lease, revenue-sharing and public-private partnership models support entry into different markets. Expansion plans include Gurugram and Ludhiana, alongside selective brownfield and inorganic opportunities.
Revenue grew at a 19.26% CAGR and EBITDA at a 47.41% CAGR from Fiscal 2024 to Fiscal 2026, with the EBITDA margin reaching 20.60% in Fiscal 2026. Consolidated fund-based borrowings stood at ₹8,541.01 million as of March 31, 2026. The planned use of ₹3,209 million of fresh issue proceeds for company borrowings and ₹541 million for subsidiary borrowings indicates that debt remains a constraint, though repayment could reduce servicing costs.
Hospitals operate under owned, leased, revenue-sharing and public-private partnership models. Central monitoring, standardized clinical protocols, cloud-based systems and data analytics support coordination across the network. The company has added specialties and advanced equipment across hospitals, while newer facilities are still ramping up, with 33.80% occupancy at New Hospitals in Fiscal 2026.
Paras Health shows good adaptability through a mix of hospital operating models, digital systems, a broad clinical offering and a pipeline of network expansion. Growth and operating leverage are encouraging, while debt, high capital needs and concentration in core specialties and regions temper flexibility.
- Product diversification
- The company provides a broad range of tertiary and quaternary healthcare services, including cardiac, oncology, neuro, gastro, orthopaedic and renal care, as well as transplant, robotic surgery and diagnostic programs. The six CONGOR specialties generated 74.70% of Fiscal 2026 revenue, indicating meaningful concentration within the broader service portfolio.
- Future adaptability
- Potential is supported by planned capacity growth to 3,011 beds by March 2028, further ramp-up at newer hospitals, and the ability to add specialties and clinical programs where demand exists. Flexible operating arrangements and digital systems may support execution. The pace of adaptation will depend on occupancy growth, clinician availability, capital requirements and debt reduction.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.