Paras Healthcare Limited IPO

01At a glance

Paras Healthcare IPO date, price band and lot size

• Price band: ₹660 to ₹693 a share, from NSE's issue page; the prospectus leaves the price blank (RHP p.3).
• Lot size: 21 shares, from NSE's issue page; one lot costs ₹14,553 at the upper band (our arithmetic).
• Dates: anchor bidding on October 19, 2026; the issue opens on October 21, 2026 and closes on October 23, 2026 (RHP p.2).
• Size: up to ₹1,450.0 crore, made of a fresh issue of up to ₹500.0 crore and an offer for sale of up to ₹950.0 crore (RHP p.3). At the upper band the fresh issue is about 7,215,007 new shares and the offer for sale about 13,708,513 existing shares (our arithmetic, RHP p.83).
• Who gets the shares: at least 75% of the offer for qualified institutional buyers, not more than 15% for non-institutional bidders and not more than 10% for retail individual bidders (RHP p.3). The issue is made under Regulation 6(2) of the SEBI ICDR Regulations, because the company does not meet the net tangible assets test of Regulation 6(1)(a) (RHP p.1).
• Lead managers and registrar: JM Financial Limited, BofA Securities India Limited and Nuvama Wealth Management Limited; MUFG Intime India Private Limited is the registrar (RHP p.2).

What the company does: runs eight hospitals under the "Paras Health" brand in Gurugram, Panchkula, Patna, Darbhanga, Kanpur, Udaipur, Ranchi and Srinagar, focused on complex (tertiary and quaternary) care (RHP p.258).

Who pays it: patients paying themselves were 33.88% of FY26 revenue, insurers and third-party administrators 24.84%, and government health schemes and public sector undertakings 41.28% (RHP p.47).

Why it is raising money: ₹320.9 crore to repay the company's own loans and ₹54.1 crore for its subsidiary Plus Medicare Hospitals Private Limited, which runs the Srinagar hospital, to repay its loans; the rest goes to general corporate purposes (RHP p.129).

How fast it has grown: revenue from operations went from ₹1,129.0 crore in FY24 to ₹1,606.0 crore in FY26 (RHP p.88), about 19.3% a year (our arithmetic, RHP p.88). Profit after tax went from a loss of ₹15.3 crore in FY24 and a loss of ₹58.0 crore in FY25 to a profit of ₹43.8 crore in FY26 (RHP p.88), so a yearly growth rate cannot be computed.

The one thing to understand: the company has just turned profitable as its newer hospitals fill, and it carries loans of ₹888.9 crore against equity of ₹445.0 crore at June 30, 2026 (RHP p.486). At the upper band the price is 171.1 times FY26 profit on the share count after the issue (our arithmetic, RHP p.88, RHP p.106), against a median of 60.7 times for the ten listed peers the prospectus names (our arithmetic, RHP p.150).

02The business, in plain words

What Paras Healthcare does

The company was incorporated in 1987 as Arbian Frozen Foods Private Limited and took the name Paras Healthcare Private Limited in 2003 when it moved from frozen foods to healthcare (RHP p.3). It opened its first hospital, in Gurugram, in 2006 with 200 beds (RHP p.259).

• Hospitals: eight, with 2,211 beds of planned capacity, of which 1,502 were in use at June 30, 2026 (RHP p.44).
• People: 1,084 doctors and 1,937 nurses at June 30, 2026 (RHP p.258).
• Intensive care: 559 ICU beds at June 30, 2026, up from 425 at March 2024 (RHP p.155).
• Accreditation: seven of the eight hospitals are accredited by NABH (RHP p.145).

A patient in Patna needs cancer treatment → is admitted to the Paras hospital there, often under a government scheme → doctors, nurses, medicines and machines provide the care → the company bills the patient, the insurer or the scheme, and a scheme can take months to pay.

The prospectus groups the hospitals by age: Gurugram, Patna, Panchkula and Darbhanga are "mature" (over seven years), Ranchi and Udaipur "emerging" (four to seven years), and Srinagar and Kanpur "new" (under four years) (RHP p.260). Srinagar opened in June 2023 and Kanpur started earning in April 2024 (RHP p.41). Six of the eight hospitals run on leased premises, under rent or revenue-share arrangements, and Ranchi under a public-private partnership (RHP p.33).

Earnings equation: Revenue ≈ occupied bed days × average revenue per occupied bed (ARPOB) + other operating revenue. In FY26 there were 338,321 occupied bed days at an ARPOB of ₹47,398 a day (RHP p.155). In-patients brought 78.26% of FY26 revenue (RHP p.44).

03Where the money comes from

Source: RHP p.47.

Source: RHP p.156; the gastro and renal row is our sum. The six named specialties ("CONGOR") were 74.70% of FY26 revenue (RHP p.31).

Paras Healthcare customers: how concentrated the revenue is

The prospectus does not give a largest-customer or top-ten-customer share. It shows concentration by hospital and by payer instead:

Source: RHP p.30. Read from the filing: revenue does not depend on a few customers, but it depends on government payers, which were 41.3% of FY26 revenue (RHP p.47) and 82.89% of gross trade receivables at March 31, 2026 (RHP p.471). Revenue from patients under the Ex-Servicemen Contributory Health Scheme is described as a significant portion of revenue, without a figure (RHP p.47). Tier 2 cities, meaning every hospital except Gurugram, brought 68.18% of FY26 revenue (RHP p.156).

04The growth record

Paras Healthcare financials: revenue, profit and margins

Source: RHP p.86, RHP p.88, RHP p.89, RHP p.157; borrowings are our sum of current and non-current borrowings (RHP p.86). The three-month figures are not annualised.

Source: RHP p.157.

Our arithmetic over FY24 to FY26:

• Revenue grew about 19.3% a year (our arithmetic, RHP p.88); the prospectus gives 19.26% (RHP p.258).
• EBITDA grew about 47.4% a year (our arithmetic, RHP p.157).
• Profit after tax went from a loss to a profit, so no yearly rate applies.
• EBITDA margin rose 718 basis points, 13.4% → 20.6% (RHP p.157).

What sits around the record:

• Size: revenue went ₹1,129.0 cr → ₹1,606.0 cr from FY24 to FY26 (RHP p.88), and profit after tax −₹15.3 cr → ₹43.8 cr (RHP p.88).
• Latest quarter: profit of ₹49.7 crore in the three months to June 2026 includes a deferred tax credit of ₹16.2 crore from recognising unabsorbed depreciation (RHP p.88, RHP p.468).
• Cash: operating cash flow was ₹163.5 crore in FY26 (RHP p.89). Capital spending was ₹169.4 crore in FY26 (RHP p.89).
• Other income was ₹22.8 crore in FY26, about 30.0% of profit before tax of ₹76.0 crore (our arithmetic, RHP p.88), mostly interest from banks (RHP p.469).
• Concentration: government schemes and PSUs were 41.3% of FY26 revenue (RHP p.47); the Gurugram hospital 31.8% (RHP p.30); the five north India hospitals 66.1% (RHP p.30).
• Debt: borrowings were ₹888.9 crore at June 30, 2026 (RHP p.486). Net debt was 1.6× FY26 EBITDA, taking March 2026 borrowings less cash and other bank balances, leases left out (our arithmetic, RHP p.86, RHP p.157). Debt to equity was 3.5× in FY26 (RHP p.157) and return on capital employed 10.8% (RHP p.157).
• Money owed by customers: trade receivable days went 46 → 66 from FY24 to FY26 (RHP p.48).
• Related parties: transactions with related parties were about ₹10.3 crore in FY26, mostly pay to the managing director and senior staff (our arithmetic, RHP p.92, RHP p.93).
• Contingent liabilities: ₹390.5 crore at March 31, 2026, mainly corporate guarantees within the group (RHP p.91).
• Cases against promoters: 4 criminal and 4 material civil matters against the promoter (RHP p.38); section 23 has the detail.
• The issue: a fresh issue of ₹500.0 crore (RHP p.83) and an offer for sale of ₹950.0 crore (RHP p.83). Promoter holding goes 72.8% → 63.9% at the upper band (our arithmetic, RHP p.111, RHP p.83).
• Valuation at the upper band: a market capitalisation of ₹7,498.3 crore (our arithmetic, RHP p.106) and a P/E of 171.1× on FY26 profit and the share count after the issue (our arithmetic, RHP p.88, RHP p.106). The median P/E of the ten peers the prospectus names is 60.7× (our arithmetic, RHP p.150), so the issue is +182% against the peer median (our arithmetic, RHP p.150). Section 16 has the detail.
• Industry: hospitals, Healthcare services in the fixed list (RHP p.258).

05What the growth is made of

Revenue rose by ₹476.9 crore from FY24 to FY26 (our arithmetic, RHP p.88). The prospectus gives the volume and the price per bed day, so the rise can be split (our arithmetic, RHP p.155):

• More bed days: occupied bed days rose 32.8%, from 254,716 to 338,321. At the FY24 ARPOB of ₹44,306 this accounts for about ₹370.4 crore.
• More per bed day: ARPOB rose 7.0%, from ₹44,306 to ₹47,398, which accounts for about ₹104.6 crore.

Other volumes, FY24 to FY26 (RHP p.156):

• In-patients went 81,047 → 115,496, out-patients 569,139 → 778,707 and surgeries 30,219 → 39,687.
• Occupancy went 52.46% → 50.78% → 61.75%, and 69.72% in the three months to June 2026 (RHP p.155).
• Average length of stay fell from 3.14 days to 2.93 days.

By age of hospital (RHP p.469, RHP p.472, RHP p.41):

• Mature hospitals: ₹927.6 crore in FY24 to ₹1,179.5 crore in FY26.
• Emerging hospitals: ₹166.4 crore to ₹282.6 crore.
• New hospitals: ₹35.0 crore to ₹143.8 crore.

The company explains the FY26 rise of 24.10% by higher volumes in key specialties after hiring new doctors and consultants, mainly in cardiac sciences, oncology, orthopaedics and neurosciences (RHP p.469). It also brought radiology at four hospitals in-house by acquiring ClearMedi Healthcare Private Limited's operations there, and outsourced medical service costs fell from ₹49.6 crore in FY25 to ₹25.3 crore in FY26 (RHP p.468, RHP p.471).

06Earnings quality

The item that needs explaining is profit against loans: FY26 EBITDA of ₹335.6 crore was followed by depreciation of ₹143.6 crore and finance costs of ₹116.0 crore (RHP p.88), so a small change in costs moves profit a lot. The prospectus itself computes that a 1% rise in staff pay, doctors' fees and medicine purchases would have cut FY26 profit before tax by 13.29% (RHP p.33). Lease interest rose from ₹33.3 crore in FY25 to ₹52.6 crore in FY26 (RHP p.470).

07The balance sheet

At March 31, 2026 (RHP p.86):

• Property, plant and equipment ₹673.5 crore; right-of-use assets ₹531.1 crore.
• Trade receivables ₹349.6 crore; inventories ₹31.9 crore.
• Cash and cash equivalents ₹47.2 crore; other bank balances ₹255.5 crore.
• Borrowings ₹854.1 crore: non-current ₹454.2 crore and current ₹399.9 crore.
• Lease liabilities ₹539.8 crore.

Borrowings were ₹939.5 crore at August 31, 2026, from HDFC Bank, Yes Bank and IDFC First Bank (RHP p.48, RHP p.49). The company is rated CRISIL BBB+ (Stable) for long-term loans, reaffirmed on May 12, 2026; CARE Ratings downgraded it in March 2025 to BBB (Negative), a rating later withdrawn at the company's request (RHP p.51, RHP p.52). Interest cover was 3.08 times in FY26 and 0.75 times in FY25 (RHP p.49).

The company had lent ₹220.5 crore to Paras Healthcare (Ranchi) Private Limited and ₹186.4 crore to Plus Medicare Hospitals Private Limited at June 30, 2026, including interest (RHP p.50, RHP p.51). Both subsidiaries had negative net worth at June 30, 2026, of ₹158.5 crore and ₹91.6 crore (RHP p.55).

Contingent liabilities were ₹398.4 crore at June 30, 2026, 89.55% of net worth, mostly guarantees within the group (RHP p.36); after June 2026 HDFC Bank waived the guarantees of ₹298.6 crore and ₹31.9 crore between the company and Plus Medicare Hospitals (RHP p.37). The company has also committed to leases for two new hospitals, Gurugram II and Ludhiana, with future payments of ₹1,054.8 crore (RHP p.36).

Source: RHP p.486, RHP p.129; after-issue column our arithmetic. Offer expenses are not yet stated (RHP p.141).

08What the money is for

Paras Healthcare IPO objects: what the money is for

Source: RHP p.129; percentages our arithmetic.

The amounts are to be used in FY27 (RHP p.130). Loans with higher interest rates were picked for repayment (RHP p.131); among them are Yes Bank term loans that took over IndusInd Bank loans used to set up the Kanpur hospital (RHP p.132). No new hospital is funded from the issue. CARE Ratings Limited is the monitoring agency (RHP p.11).

Into the business ₹500.0 crore (fresh issue), before its share of expenses (RHP p.83). To selling shareholders ₹950.0 crore (offer for sale) (RHP p.83).

09Who is selling

Paras Healthcare IPO offer for sale: who is selling

Source: RHP p.3, RHP p.120; percentages our arithmetic. At ₹693 the promoter offers about 4,329,004 shares and Commelina Ltd about 9,379,509 (our arithmetic, RHP p.3).

Weighted average cost per share, as certified: ₹2.35 for Dr. Dharminder Kumar Nagar and ₹114.15 for Commelina Ltd (RHP p.1). Neither acquired shares in the year before the prospectus (RHP p.121). Commelina Ltd came in through compulsorily convertible preference shares bought at ₹2,543.58 each in July 2017, before the 2024 split and bonus, and 62,245 shares bought from Dr. Dharminder Kumar Nagar at ₹2,409.82 each in July 2017 (RHP p.110, RHP p.112). In April 2025 Commelina Ltd sold 4,717,301 shares to five 360 ONE funds and 2,769,704 shares to Axis New Opportunities AIF - Series II, all at ₹237 a share (RHP p.115).

10Promoters

The only promoter is Dr. Dharminder Kumar Nagar, aged 56, the Managing Director, with 73,519,238 shares, 72.80% of the company (RHP p.359, RHP p.111).

• Background: a medical graduate of the University of Mysore, associated with the company since 2003, with over 22 years in healthcare, and a former co-chair of the FICCI committee on health services (RHP p.340).
• How control came: Dr. Dharminder Kumar Nagar bought shares from Arabian Exports Limited in June 2003 and from Ved Ram and others in April 2005, and is not the original promoter (RHP p.359).
• Pay: short-term and long-term benefits of ₹5.4 crore in each of FY24, FY25 and FY26, and ₹2.2 crore in the three months to June 2026 against ₹1.3 crore a year earlier (RHP p.92).
• Pledges: none of the promoter's shares is pledged (RHP p.114).
• Promoter group holdings: Gurdeep Kaur Nagar, described as spouse, and Ranya Nagar, described as daughter, hold one share each (RHP p.114, RHP p.361).
• Other entities: promoter group entities such as Paras Natural Spring Water Private Limited, Paras Buildtech India Private Limited, Paras RE Facilities Management Private Limited and VRS Foods Limited also use the "Paras" name, with no formal arrangement (RHP p.57). Dr. Dharminder Kumar Nagar gave away the VRS Foods Limited shares by gift in August 2024 (RHP p.360).
• Defaulter list: Harbaksh Singh Khangura, listed in the promoter group as the spouse's father of the promoter (RHP p.361), appears in the CIBIL wilful defaulter database over Majestic Hotels Limited, where Harbaksh Singh Khangura was a director until November 30, 2013 (RHP p.31).

Promoter economics: Dr. Dharminder Kumar Nagar was allotted shares at ₹60 each in 2006 and 2008 and bought earlier shares at ₹10 each (RHP p.112). The holding doubled through the 1:1 bonus of March 2024 after a split from ₹10 to ₹1 (RHP p.112). The weighted average cost is ₹2.35 a share (RHP p.121). The promoter faces 4 criminal and 4 material civil matters (RHP p.38).

11Who already owns it

Paras Healthcare promoter holding before and after the IPO

Source: RHP p.120; after-issue columns our arithmetic on 108,201,194 shares after the issue (RHP p.106). Three other 360 ONE funds hold 0.42%, 0.21% and 0.13% (RHP p.123, RHP p.124). The company has 13 shareholders and 100,986,187 shares before the issue (RHP p.121, RHP p.106).

When the investors came in: Commelina Ltd bought in July 2017 (RHP p.110). On April 9, 2025 the company allotted 2,476,792 shares to 360 ONE Special Opportunities Fund - Series 12, and on April 16, 2025 898,735 shares to Axis New Opportunities AIF - Series II, both at ₹237 (RHP p.108); the same funds bought further shares from Commelina Ltd at ₹237 (RHP p.122). The weighted average cost of all shares acquired in the last three years is ₹43.15 (RHP p.124). Options for 299,596 shares are outstanding under ESOP 2024 at an exercise price of ₹556, none vested (RHP p.126).

12What changed just before the IPO

• The offer for sale was cut from ₹1,300.0 crore by six sellers in the draft to ₹950.0 crore by two (DRHP p.1, RHP p.1); section 29 has the detail.
• Revenue went ₹1,129.0 cr → ₹1,606.0 cr from FY24 to FY26 (RHP p.88); profit after tax −₹15.3 cr → ₹43.8 cr (RHP p.88).
• Government schemes and PSUs went from 29.76% to 41.28% of revenue (RHP p.47).
• Trade receivable days went 46 → 66 from FY24 to FY26 (RHP p.48).
• Promoter remuneration went ₹5.4 cr → ₹5.4 cr from FY24 to FY26 (RHP p.92).
• Share split: from ₹10 to ₹1 a share, March 2024 (RHP p.107).
• Bonus issue: 1:1, March 2024 (RHP p.108).
• Pre-IPO placement: 3,375,527 shares at ₹237 a share in April 2025, ₹80.0 crore (RHP p.468).
• Last allotment before the IPO: ₹237 a share, April 2025 (RHP p.108). No shares were issued in the year before the prospectus below the offer price (RHP p.111).
• The company became a public company with a certificate dated July 18, 2024 (RHP p.3).
• There has been no change in the statutory auditors, Walker Chandiok & Co LLP, in the last three years (RHP p.99).
• Commelina Ltd waived a right to require the company to repurchase its shares, effective March 28, 2024 (RHP p.473).
• Radiology at Gurugram, Patna, Panchkula and Ranchi was brought in-house under agreements of May 23, 2025 (RHP p.468).
• Beds added: 42 at Patna and 34 at Panchkula in September 2025 (RHP p.466).
• CGHS package rates were revised from October 13, 2025, and GST on medicines was cut from September 22, 2025 (RHP p.466, RHP p.42).

13Capacity and expansion

Source: RHP p.30, RHP p.155, RHP p.156. Beds in use were 67.93% of capacity at June 30, 2026 (RHP p.44).

In the three months to June 2026, Srinagar ran at 53.08% and Kanpur at 65.62% occupancy (RHP p.155). The new hospitals' operating EBITDA was −₹30.1 crore in FY24, −₹64.5 crore in FY25, −₹12.7 crore in FY26 and ₹9.8 crore in the three months to June 2026 (RHP p.41).

Planned additions: a 300-bed Gurugram II hospital by FY27 and a hospital of up to 500 beds in Ludhiana in FY28, both on long leases, taking capacity to 3,011 beds by March 31, 2028 (RHP p.40). Capital spending per bed was ₹0.77 crore at June 30, 2026 (RHP p.146). Past openings ran late: Srinagar by 14 months and Kanpur by 12 months (RHP p.40). The issue funds none of this.

14Market size and industry structure

Paras Healthcare industry: market size and growth

The industry chapter is drawn from "Assessment of Healthcare delivery sector in India with a focus on North India and East India", dated September 2026, by Crisil Intelligence, a division of CRISIL Limited, commissioned and paid for by the company for the offer (RHP p.26).

As claimed: the commissioned report puts India's healthcare delivery market at ₹7.0 trillion in FY25, after growing 9.6% a year from ₹4.4 trillion in FY20, and estimates ₹7.6 to ₹7.8 trillion for FY26 (RHP p.204). The report projects ₹11.2 to ₹12.2 trillion by FY30, 10% to 12% a year (RHP p.204).

The part that is addressable: the company runs hospitals in north India, Bihar and Jharkhand. The report estimates the north region's market at ₹2.3 to ₹2.5 trillion for FY26 (RHP p.207), and the combined Bihar and Jharkhand market at ₹0.29 to ₹0.31 trillion in FY26 (RHP p.207). It projects the north region at ₹3.6 to ₹3.8 trillion and Bihar and Jharkhand at ₹0.4 to ₹0.5 trillion by FY30 (RHP p.206, RHP p.207).

What the company is today: FY26 revenue of ₹1,606.0 crore (RHP p.88), about 0.6% of the report's FY26 estimate for the north region and Bihar and Jharkhand together (our arithmetic, RHP p.207). The prospectus cites the report for the claim that the company is one of the largest healthcare providers in north India, Bihar and Jharkhand by bed capacity (RHP p.259).

Size over time: in the report, in-patient care was 71% to 72% of the market in FY25 (RHP p.204). Private hospitals' share rose from 64% in FY20 to 68% in FY25 (RHP p.204). The north region's share of the national market rose from 29% to 30% in FY20 to 30% to 32% in FY26 (RHP p.205).

Segments: the report splits the market into in-patient and out-patient care, government and private hospitals, and five regions (RHP p.204, RHP p.205). The company sells mainly in-patient, private, tertiary care in the north and east.

What drives demand: the chapter names ageing, with the share of people over 60 projected to rise from 10.5% in 2023 to 12.6% by 2030 (RHP p.219); rising incomes and awareness (RHP p.219); and health insurance, whose penetration rose from 35% in FY19 to 41% in FY25 (RHP p.221).

It counts about 592 million people in north India, Bihar and Jharkhand with 750,000 to 760,000 beds in FY22, against about 1,184,714 beds called for under the national health policy (RHP p.40). It puts India's bed density at 16 per 10,000 people against a world average of 33 (RHP p.218), with the north region at 14 to 15 and the south at 29 to 30 (RHP p.206).

Structure: the report says private hospital chains hold a low share of beds in several of these states (RHP p.40), and that consolidation is under way, with deals such as Manipal Hospitals' purchase of 89.98% of Sahyadri Hospitals for about US$746 million in 2025 (RHP p.224). Large chains are moving into non-metro cities (RHP p.224), and the report says asset-light expansion is now a preferred route there (RHP p.203). The report lists Apollo, Fortis, Max, Medanta (Global Health), Manipal, Narayana, Yatharth and others among the key players (RHP p.205).

Inputs and trade: the main costs are doctors' fees, staff pay and medicines and consumables, 65.08% of the company's FY26 expenses (RHP p.32). Medical tourism fell to 0.50 million visitors in 2025 from 0.64 million in 2024, according to the chapter (RHP p.220).

Rules: hospitals need registration under the Clinical Establishments (Registration and Regulation) Act, 2010, whose central rules require rates to stay within a government range (RHP p.307), and registrations or licences for organ transplants (RHP p.308), radiotherapy from the Atomic Energy Regulatory Board (RHP p.145) and biomedical waste (RHP p.46). The price regulator caps prices of cardiac stents and knee implants (RHP p.42), and government schemes such as CGHS, ECHS and AB-PMJAY set their own package rates (RHP p.42).

What the chapter says can go wrong: the report names poor health infrastructure, out-of-pocket spending of 44%, a shortage of specialist doctors, price caps and the Supreme Court's push for treatment price bands, and delayed reimbursements that weaken hospital finances (RHP p.223). The prospectus adds that the Central Government has told the Supreme Court it favours a range of rates under the clinical establishment rules (RHP p.43).

15Competitive position

Paras Healthcare competitors

Source: RHP p.150, RHP p.151, RHP p.152, RHP p.153; revenue converted from ₹ million, margins our arithmetic. Overlaps are read from the business profiles the prospectus prints.

Why patients come to this company rather than another, as the prospectus puts it: being the first corporate hospital among its listed peers in Gurugram and Patna, and the largest corporate super-specialty hospital in Jammu and Kashmir by beds (RHP p.145); a focus on complex care, with the six main specialties at 74.70% of FY26 revenue (RHP p.31); and a capital cost of ₹0.77 crore per bed (RHP p.146).

Against that, the prospectus says that in FY24, FY25 and the June quarters the company had the lowest RoCE and RoE and the highest debt to equity among its listed peers (RHP p.27), and its FY26 EBITDA margin on revenue of 20.9% is below eight of the ten named peers; only Apollo and Aster are lower (our arithmetic, RHP p.150).

16Peers the company named

Peers named in the offer document: Aster DM Quality Care Limited, Apollo Hospitals Enterprise Limited, Fortis Healthcare Limited, Global Health Limited, Jupiter Lifeline Hospitals Limited, Krishna Institute of Medical Sciences Limited, Manipal Health Enterprises Limited, Max Healthcare Institute Limited, Narayana Hrudayalaya Limited and Yatharth Hospital and Trauma Care Services Limited (RHP p.148).

Paras Healthcare listed peers

Source: RHP p.150, RHP p.151; peer P/E at BSE closing prices of October 5, 2026, peers' enterprise value including leases (RHP p.151), revenue converted from ₹ million. The prospectus gives the peers' average P/E as 67.81 times and average EV/EBITDA as 33.10 times (RHP p.151); the median P/E is 60.7 times (our arithmetic, RHP p.150). Eight of the ten peers have revenue more than twice the company's, and Apollo about 15.7 times (our arithmetic, RHP p.150). Aster's figures exclude Quality Care India Limited, merged with it from July 1, 2026 (RHP p.151). Only Jupiter Lifeline Hospitals and Yatharth are close to the company's size.

17Valuation at the issue price

Paras Healthcare IPO valuation and P/E

Shares after the issue at the upper band of ₹693: 100,986,187 shares before the issue (RHP p.106) plus about 7,215,007 new shares from the ₹500.0 crore fresh issue (our arithmetic, RHP p.83).

Source: RHP p.106, RHP p.88, RHP p.146, RHP p.148; our arithmetic. At the lower band of ₹660, with about 7,575,757 new shares, the market capitalisation is ₹7,165.1 crore (our arithmetic, RHP p.106). Adding the gross fresh issue to June 2026 equity gives a book value of about ₹87 a share after the issue and a price to book of 7.9 times (our arithmetic, RHP p.86, RHP p.106).

Enterprise value, taking the market capitalisation after the issue, March 2026 borrowings of ₹854.1 crore, less cash of ₹47.2 crore, other bank balances of ₹255.5 crore and the ₹500.0 crore fresh issue, is ₹7,549.7 crore, 22.5 times FY26 EBITDA of ₹335.6 crore (our arithmetic, RHP p.86, RHP p.157). Including lease liabilities of ₹539.8 crore, as the peers' figures do, it is 24.1 times (our arithmetic, RHP p.86, RHP p.151).

The ten peers the prospectus names traded at 42.92 to 116.41 times FY26 diluted earnings on October 5, 2026, a median of 60.7 times (our arithmetic, RHP p.150). At the upper band the issue is priced at 171.1 times FY26 profit on the share count after the issue, about 182% above that median, and 159.7 times FY26 diluted EPS.

On EV/EBITDA, the peers ranged from 22.67 to 40.73 times with a median of 33.6 times (our arithmetic, RHP p.150), against 24.1 times for the issue including leases. The upper band is about 2.9 times the ₹237 paid in the April 2025 allotment and share sales (our arithmetic, RHP p.108), and above the ₹556 option exercise price set for ESOP 2024 (RHP p.126).

18Risks, in plain words

Paras Healthcare IPO risks

Government payers: government schemes and PSUs were 41.28% of FY26 revenue (RHP p.47) → they pay slowly, and their receivable days were 153.23 in FY26 (RHP p.48) → trade receivables rose to ₹447.6 crore at June 30, 2026 (RHP p.48).

Scheme actions: the Patna hospital was suspended from the CGHS panel in April 2024 and later restored (RHP p.39) → a suspension stops cashless treatment for those patients → in July 2026 the Rajasthan scheme ordered the Udaipur hospital to deposit ₹0.85 crore, which the company has asked to reconsider (RHP p.39).

Debt and leases: borrowings were ₹939.5 crore at August 31, 2026 (RHP p.48) and lease liabilities ₹539.8 crore at March 2026 (RHP p.86) → interest and lease costs take much of the earnings → interest cover was 0.75 times in FY25 (RHP p.49).

Subsidiaries: the Ranchi and Srinagar subsidiaries lost ₹87.3 crore in FY24, ₹82.2 crore in FY25 and ₹52.1 crore in FY26 (RHP p.27) → the parent lends to them and part of the issue goes to one of them → both had negative net worth at June 2026 (RHP p.55).

Staff turnover: attrition was 60.38% in FY26, and 49.28% for doctors and 81.82% for nurses (RHP p.27, RHP p.29) → care depends on keeping doctors and nurses → doctors' fees alone were ₹394.1 crore in FY26 (RHP p.28).

Price controls: stents and knee implants are price-capped and scheme rates are set by government (RHP p.42) → the company has been unable to pass on cost increases in the past (RHP p.33) → a 1% rise in key costs would have cut FY26 profit before tax by 13.29% (RHP p.33).

Leased hospitals: six of eight hospitals are on leased premises, 60.53% of FY26 revenue (RHP p.33) → the lease deeds for Darbhanga, Panchkula, Ranchi and Srinagar are not registered (RHP p.36) → the Patna agreement carries a ₹50.0 crore penalty for default (RHP p.36).

Brand: the company does not own a registered trademark for the word "Paras", and 25 of 29 applications for its new logos have been opposed (RHP p.50).

Internal controls: anonymous complaints in August and September 2026 alleged duplicate revenue entries at the central laboratory in Gurugram; an independent agency is investigating (RHP p.58). The auditors made remarks on the audit trail of accounting software in FY24 to FY26 (RHP p.52).

Issue-specific: the company receives none of the ₹950.0 crore offer for sale (RHP p.129). Retail individual bidders get not more than 10% of the offer (RHP p.3). The offer fails if 90% of the fresh issue is not subscribed (RHP p.82).

19Litigation and regulatory matters

Cases against Paras Healthcare and its promoters

The prospectus counts against the company 4 criminal, 22 tax, 6 regulatory and 9 material civil matters, and against the promoter 4 criminal and 4 material civil matters (RHP p.38). Its aggregate amounts mix demands, claims and penalties, so they are not repeated here. In 11 of 15 income tax matters against the company the amount cannot be determined (RHP p.38).

The Supreme Court remanded two of six income tax reassessment cases for AY 2017-18 to 2022-23 in April 2026; four are pending (RHP p.91). A labour authority has assessed building cess and an equal penalty for the Kanpur construction (RHP p.496). Directors Nakul Anand and Usha Rajeev face matters from earlier roles, described as stayed or pending (RHP p.501, RHP p.502).

20Related-party transactions

Source: RHP p.92, RHP p.93, converted from ₹ million.

What appeared or changed in the two years before filing: sitting fees to new independent directors Upendra Prasad Singh, Usha Rajeev and Nakul Anand began in FY25 (RHP p.93); an advance of ₹0.12 crore was given to the company secretary in FY26 (RHP p.93); share-based pay to Dr. Kapil Garg began in FY26 (RHP p.92). Inside the group, loans to the two subsidiaries rose from ₹178.8 crore at March 2024 to ₹406.9 crore at June 2026 including interest, and the company pays Plus Medicare Hospitals rent of ₹9.1 crore a year for the Udaipur hospital (our arithmetic, RHP p.95, RHP p.96, RHP p.35).

21What the offer document does not say

Margins by hospital are not given beyond the grouping into mature, emerging and new hospitals, and the mature group's EBITDA is not given in the pages read. The share of revenue from ECHS alone is not given, though the prospectus calls it significant. Collection periods by individual scheme are not given. When the Ranchi and Srinagar subsidiaries are expected to turn profitable is not stated.

Offer expenses, and so the amount for general corporate purposes, are left blank (RHP p.141). The cost and funding of the Gurugram II and Ludhiana hospitals beyond their lease payments are not set out in the pages read. The outcome of the investigation into the laboratory complaint is not known (RHP p.58).

22Five questions for management

1. What was the operating EBITDA of each mature hospital in FY26, and how much of the group's profit came from Gurugram?
2. How much of the ₹447.6 crore of trade receivables at June 2026 was owed by ECHS and CGHS, and for how long?
3. What occupancy do the Srinagar and Kanpur hospitals need to cover their rent, interest and depreciation?
4. How much will Gurugram II and Ludhiana cost to equip, and how will that be funded after the loans are repaid?
5. Why did doctor attrition stay near half the headcount each year, and what did replacing doctors cost in FY26?

24Draft to final: what changed

The fresh issue of ₹500.0 crore, the objects of ₹320.9 crore and ₹54.1 crore, the promoter's ₹300.0 crore sale and the three lead managers are the same in both documents (DRHP p.3, DRHP p.118, RHP p.3, RHP p.129, RHP p.2).

1Sources and cited facts

This study was read from 1 document the company filed. The 196 figures it cites are listed under the document each came from, with the page and the sentence as printed.