Paras Healthcare IPO

Strengths · 8

• 01Revenue from operations grew 24.10% to Rs 1,605.95 crore in FY2026, after 14.62% growth in FY2025.
• 02The company turned profitable in FY2026 with a profit of Rs 43.83 crore, against a loss of Rs 57.98 crore in FY2025 and a loss of Rs 15.33 crore in FY2024.
• 03EBITDA grew 114.48% to Rs 335.58 crore in FY2026 and the EBITDA margin rose to 20.60% from 11.91% in FY2025.
• 04The bed occupancy rate rose to 61.75% in FY2026 from 50.78% in FY2025, with Gurugram at 83.85% and Patna at 73.16%.
• 05Return on capital employed rose to 10.76% in FY2026 from 2.71% in FY2025, and return on equity to 12.98% from a negative 18.73%.
• 06Volumes are growing across the network. In-patient volumes rose to 1,15,496 in FY2026 from 81,047 in FY2024 and out-patient volumes to 7,78,707 from 5,69,139, with 39,687 surgeries in FY2026.
• 07ICU capacity grew to 559 beds as on 31 March 2026 from 425 beds in FY2024, supporting the high-acuity work that gives 74.70% of revenue.
• 08Cash flow from operations was Rs 163.51 crore in FY2026 against Rs 86.19 crore in FY2025, so the operating profit is converting into cash.

Risks · 10

• 01The profit record is short. The company lost Rs 57.98 crore in FY2025 and Rs 15.33 crore in FY2024, and FY2026 is its first profitable year of the three shown, with a profit margin of only 2.69% of total income.
• 02Two subsidiaries, Paras Healthcare (Ranchi) and Plus Medicare Hospitals, together lost Rs 52.09 crore in FY2026, Rs 82.24 crore in FY2025 and Rs 87.27 crore in FY2024.
• 03Total borrowings rose to Rs 854.10 crore as on 31 March 2026 from Rs 547.53 crore in FY2024 against a net worth of Rs 394.94 crore, and the debt to equity ratio was 3.53 times.
• 04Attrition among doctors, nurses and support staff was 60.38% in FY2026, 66.74% in FY2025 and 65.27% in FY2024.
• 05Five of the eight hospitals are in North India and gave 66.07% of FY2026 revenue from operations, so one region drives most of the business.
• 06CONGOR specialties gave 74.70% of FY2026 revenue from operations, so demand for six clinical lines decides the top line.
• 07Government schemes and public sector undertakings now pay for 41.28% of revenue against 29.76% in FY2024, while self pay fell to 33.88% from 40.63%, and the company says its scheme empanelments have faced suspension and temporary restrictions in the past.
• 08Six of the eight hospitals run on leased premises, five under revenue share and long-term lease arrangements and one under a public private partnership, so renewal terms are outside the company's control.
• 09The offer for sale is Rs 1,300.00 crore of the Rs 1,800.00 crore offer, and only Rs 500.00 crore is fresh money for the company. The promoter is selling Rs 300.00 crore of shares at a weighted average cost of Rs 2.35 per share and Commelina Ltd is selling Rs 800.00 crore at Rs 114.15 per share.
• 10Average revenue per occupied bed slipped to Rs 47,397.82 per day in FY2026 from Rs 48,088.57 in FY2025, with Srinagar falling to Rs 36,532.56 from Rs 62,401.30, so occupancy rather than pricing drove the growth.

Paras Healthcare Limited is a clinical specialty-led hospital platform that provides tertiary and quaternary healthcare through a network of eight hospitals with an aggregate capacity of 2,211 beds as on 31 March 2026. It operates under the Paras Health brand and is based at Paras Twin Towers, Golf Course Road, Sector 54, Gurugram, Haryana. Its critical care infrastructure includes organ and condition-specific ICUs, with 559 ICU beds as on 31 March 2026, up from 425 beds in FY2024. The hospitals employed 1,011 doctors and 1,665 nurses on the same date.

The hospitals are spread over five states and one union territory. They are in Gurugram and Panchkula in Haryana, Patna and Darbhanga in Bihar, Kanpur in Uttar Pradesh, Udaipur in Rajasthan, Ranchi in Jharkhand and Srinagar in Jammu and Kashmir. The Gurugram hospital has run for 20 years and the Patna hospital for 12 years, while the newest units at Srinagar and Kanpur have run for three years and two years. Of the eight, four are super-specialty tertiary care hospitals and four are multi-specialty tertiary care hospitals. Six of the eight run on leased premises, five through revenue share arrangements and long-term leases and one under a public private partnership.

The business is reported as a single healthcare services segment in a single geography. Work is concentrated in what the company calls CONGOR specialties, meaning cardiac sciences, oncology, neuro sciences, gastro sciences, orthopedics and sports injury, and renal sciences. Together these gave 74.70% of FY2026 revenue from operations, led by oncology at 21.63%, neuro sciences at 13.03% and cardiac sciences at 12.78%. Hospitals outside Gurugram, which the company counts as tier 2 cities, gave 68.18% of FY2026 revenue against 62.35% in FY2024.

Operating metrics improved in FY2026. Operational beds rose to 1,502 from 1,465, the bed occupancy rate rose to 61.75% from 50.78%, and occupied bed days rose to 3,38,321 from 2,68,927. In-patient volumes were 1,15,496 and out-patient volumes 7,78,707 in FY2026, against 81,047 and 5,69,139 in FY2024, and the hospitals performed 39,687 surgeries. Average revenue per occupied bed was Rs 47,397.82 per day in FY2026, with the Gurugram hospital at Rs 70,925.76 per day and the Darbhanga hospital at Rs 19,980.75 per day. Average length of stay was 2.93 days.

Payments come from three sources. Government schemes and public sector undertakings accounted for 41.28% of FY2026 revenue, self pay patients 33.88% and insurance and third party administrators 24.84%. In FY2024 the same shares were 29.76%, 40.63% and 29.61%. The promoter is Dr. Dharminder Kumar Nagar, the Managing Director, who has been with the company since 2003 and has over 22 years of experience in healthcare. He holds an MBBS from the University of Mysore and a master of philosophy in hospital and health systems management from BITS Pilani.

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