Paras Healthcare Limited IPO

01At a glance

What the company does — runs tertiary and quaternary care hospitals in Gurugram, Panchkula, Patna, Darbhanga, Kanpur, Udaipur, Ranchi and Srinagar, focused on cardiac, oncology, neuro, gastro, orthopaedic and renal specialties, which were 74.70% of FY26 revenue (AP p.4, AP p.14).

Who pays it — patients paying themselves (33.88% of FY26 revenue), insurers and third-party administrators (24.84%), and government schemes and public-sector undertakings (41.28%) (AP p.11).

Why it is raising money — ₹3,209 million to repay the company's borrowings, ₹541 million for its subsidiary Plus Medicare Hospitals (which runs the Srinagar hospital) to repay its debt, and the rest for general purposes (AP p.6).

How fast it has grown — revenue from ₹11,290 million in FY24 to ₹16,060 million in FY26; the company lost ₹153 million in FY24 and ₹580 million in FY25, and earned ₹438 million in FY26 (AP p.9).

The one thing to understand — a leveraged hospital chain that has just turned profitable, as its newer hospitals fill. Bed occupancy rose from 50.78% to 61.75% in FY26 and EBITDA margin from 11.91% to 20.60%, but two subsidiaries still lost ₹521 million, and borrowings were ₹8,541 million (AP p.10, AP p.11, AP p.14).

02The business, in plain words

A hospital chain earns most of its money from admitted patients: bed charges, surgeries, procedures, drugs and consumables. Its economics depend on filling beds (occupancy) and on what each occupied bed earns a day (ARPOB). Here the two newest hospitals ran at 31–36% occupancy in FY26 (AP p.11).

A patient in Patna needs cancer treatment → admitted to Paras Patna, paying partly through a government scheme → the hospital bills the scheme and the patient → doctors, nurses and drugs are the main costs.

As of March 2026 the company had 1,011 doctors, 1,665 nurses and 559 ICU beds (AP p.4). It runs six of its eight hospitals on leased premises, including five under revenue-share arrangements and long-term leases and one as a public-private partnership (AP p.14).

Earnings equation: Revenue ≈ occupied bed-days × ARPOB + out-patient revenue. In FY26 there were 338,321 occupied bed-days at an ARPOB of ₹47,398 (AP p.11).

03Where the money comes from

Source: AP p.11.

Source: AP p.10, AP p.11.

04The growth record

Source: AP p.9, AP p.10.

05What the growth is made of

Volume: in-patients rose from 81,047 in FY24 to 115,496 in FY26, and surgeries from 30,219 to 39,687 (AP p.11). Average revenue per occupied bed was roughly flat, ₹48,089 in FY25 and ₹47,398 in FY26 (AP p.11). The shift towards government-scheme patients — from 30.91% to 41.28% of revenue in one year — came as occupancy rose (AP p.11). EBITDA more than doubled in FY26 (AP p.10).

06Earnings quality

Operating cash flow has been positive and above profit in each year (AP p.9). Investment outflows of ₹5,807 million over three years exceeded operating cash flow of ₹3,422 million (our arithmetic, AP p.9). The subsidiaries running Ranchi and Srinagar lost ₹872.69 million, ₹822.38 million and ₹520.89 million over FY24 to FY26 (AP p.14). The auditors' reports carry remarks about the audit-trail feature of the accounting software (AP p.16).

07The balance sheet

Source: AP p.9, AP p.10.

The company reports an adjusted debt-to-equity of 2.16 for March 2026 alongside the 3.53 figure (AP p.10). The issue is made under Regulation 6(2) of the SEBI ICDR Regulations because the company does not meet the net-tangible-assets test in Regulation 6(1)(a) (AP p.1).

08What the money is for

Source: AP p.1, AP p.6.

A pre-IPO placement of up to ₹1,000 million may reduce the fresh issue (AP p.6).

09Who is selling

Source: AP p.1, AP p.2. The last row is our sum of three sellers.

10Promoters

The promoter is Dr. Dharminder Kumar Nagar, managing director, associated with the company since 2003, with over 22 years in healthcare and a former co-chair of the FICCI committee on health services (AP p.6). Criminal and other proceedings are pending against the promoter, and regulatory proceedings were started against the promoter and directors in the past (AP p.14, AP p.17).

11Who already owns it

Source: AP p.7.

12What changed just before the IPO

• Profit — first annual profit in the three years shown (AP p.9).
• Payor mix — government schemes rose to 41% of revenue (AP p.11).
• Occupancy — up 11 points in FY26 (AP p.11).
• Borrowings — up ₹3,066 million over two years (AP p.9).

13Capacity and expansion

2,211 beds, of which 1,502 were operational, at March 2026 (AP p.10). The newer hospitals — Srinagar and Kanpur — ran at 36% and 31% occupancy (AP p.11). The document notes past delays in building or opening the Srinagar, Kanpur and Ranchi hospitals (AP p.14). No new hospital is funded from the proceeds.

14Market size and industry structure

The industry report cited in the offer document projects India's healthcare-delivery market to grow 10–12% a year from FY25 to FY30, to ₹11.2–12.2 trillion, with north India reaching ₹3.6–3.8 trillion (AP p.5). Those projections are the report's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• Specialty focus — CONGOR specialties are three-quarters of revenue (AP p.4).
• Tier-2 presence — 68% of revenue from tier-2 cities (AP p.11).

Against that: high staff attrition, leased premises, and dependence on government-scheme empanelment, which has been suspended or restricted in the past (AP p.14).

16Peers the company named

The document names Aster DM Healthcare, Apollo Hospitals Enterprise, Fortis Healthcare, Global Health, Jupiter Lifeline Hospitals, Krishna Institute of Medical Sciences, Max Healthcare Institute, Narayana Hrudayalaya and Yatharth Hospitals as listed peers (DRHP p.136). Their P/E ratios ranged from 43.56 to 124.98, averaging 67.10, at prices on 1 June 2026 (DRHP p.135). The full peer table was not read for this study. No P/E is possible for the company until a price band is set.

17Risks, in plain words

• Recent losses. Losses in FY24 and FY25, and loss-making subsidiaries (AP p.14).
• Staff attrition. 60.38% in FY26 (AP p.14).
• North India. Five hospitals there provide about two-thirds of revenue (AP p.14).
• Costs. Staff, doctors' fees and drugs were 65% of expenses (AP p.14).
• Leases. Six of eight hospitals on leased or shared-revenue premises (AP p.14).
• Government schemes. 41% of revenue, with past suspensions (AP p.11, AP p.14).
• Debt. ₹8,541 million of borrowings (AP p.9).

18Litigation and regulatory matters

Source: AP p.17.

Of 17 income-tax matters against the company, 13 are assessments whose amounts cannot be quantified; the tax department has appealed an ITAT ruling in favour of Plus Medicare Hospitals (AP p.17).

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• What the ₹1,162 million of claims against the company concern, in the pages read.
• What the criminal proceedings against the promoter and directors concern.
• Collection periods for government-scheme receivables, in the pages read.
• When the loss-making subsidiaries are expected to break even.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What do the criminal proceedings against the promoter and directors allege?
2. How long do government schemes take to pay, and how much is outstanding?
3. What caused the FY25 loss of ₹580 million?
4. Why did Srinagar's ARPOB fall from ₹62,401 to ₹36,533 in FY26?
5. How will staff attrition of 60% be brought down?

2Sources and cited facts

This study was read from 2 documents the company filed. The 38 figures it cites are listed under the document each came from, with the page and the sentence as printed.