Rays of Belief IPO

Strengths · 8

• 01The centre network has grown fast, from 71 centres in FY2023 to 136 centres as on 31 March 2026, across 57 cities and 20 states and union territories.
• 02Total income grew 125% in FY2026, from Rs 36.54 crore to Rs 82.06 crore.
• 03EBITDA improved sharply, from Rs 1.49 crore in FY2024 to Rs 3.02 crore in FY2025 and Rs 11.91 crore in FY2026.
• 04The company carries almost no debt. Total borrowing was only Rs 3.61 crore against a net worth of Rs 30.81 crore as on 31 March 2026.
• 05A large part of the network is in smaller cities, with 77 Tier 2 and 17 Tier 3 centres, where there are few options for this kind of care.
• 06It has a qualified team of more than 340 full time clinical professionals and a structured set of tools, with over 150 at the centres and more than 2,000 through home kits.
• 07It has entered the USA through the June 2025 purchase of Mom's Belief US, Inc., adding three centres in Virginia.
• 08Awareness and diagnosis of neurodevelopmental disorders is rising in India, and organised providers in this field are still few.

Risks · 9

• 01Profit fell even as sales more than doubled. Profit after tax came down 16% in FY2026, from Rs 5.88 crore to Rs 4.96 crore, while income rose 125%. The cost of opening centres is running ahead of the income they bring.
• 02The FY2026 figures are on a consolidated basis while the earlier years are standalone, as noted on the offer document, so the growth is not a like for like comparison.
• 03Return on capital employed is low at 7.49%, which shows the money put into building the centre network is not yet earning much.
• 04The price band, issue size and lot size have not been announced yet, so the valuation cannot be judged at this stage.
• 05A large part of the money is for rent rather than for assets. About Rs 14.45 crore is for lease payments on existing centres in India and Rs 10.13 crore for lease and licence payments in the USA, which are running costs and do not create anything that can be sold later.
• 06A further part is kept for an unidentified acquisition and general corporate purposes, so investors do not know where that money will go.
• 07The business depends on trained clinical staff. Finding and keeping therapists across 136 centres in 57 cities is difficult, and quality can vary between centres.
• 08Families pay for this care mostly out of their own pocket, as insurance cover for developmental therapy is limited in India, so demand is sensitive to household budgets.
• 09The US business is new, bought only in June 2025, and is a very different market in terms of regulation, insurance and cost.

Rays of Belief Ltd was started in 2017. It is a for-profit social enterprise that makes personalised intervention plans for children with neurodevelopmental disorders. These include Autism Spectrum Disorder, ADHD, Down Syndrome, Cerebral Palsy, intellectual disability, learning disabilities and global developmental delays.

The company opened its first centre in Gurgaon in 2018 and works under the brand name Mom's Belief. It has grown from 71 centres in FY2023 to 136 centres as on 31 March 2026, spread across 57 cities and 20 states and union territories. Of these, 42 are in Tier 1 cities, 77 in Tier 2 and 17 in Tier 3, so a large part of the network is in smaller cities where such care is harder to find.

It mainly works with children between 18 months and 12 years, and runs special programmes on vocational and life skills for children up to 15 years. Its services include early intervention, parental guidance, occupational therapy, language therapy and family support. Its centres carry more than 150 teaching tools and its home based learning kits give access to more than 2,000 teaching tools, with regular follow up and progress tracking. As on 31 March 2026 it had a team of over 340 full time clinical professionals. In June 2025 it bought Mom's Belief US, Inc. as a wholly owned subsidiary along with Allergy and Immunology Virginia, LLC, adding three centres in Virginia at Salem, Lynchburg and Roanoke.

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