IPO closes on 24 Feb'26
Gaudium IVF & Women Health Ltd
Minimum Investment
₹ 14,931 / 189 shares
Our Verdict:
Neutral
- Gaudium IVF & Women Health Ltd is set to emerge as India’s only pure-play listed IVF specialist, providing investors with focused exposure to the assisted reproductive technology (ART) segment.
- The company’s financial performance reflects strong execution, with revenue CAGR of 27% over FY23–FY25 and EBITDA CAGR of 19%, supported by healthy EBITDA margins of ~40%.
- In terms of valuation, the IPO appears reasonably priced at a P/E multiple of 25x FY25 earnings, broadly in line with the industry average.
- The Indian IVF market is projected to expand from $1.32 billion in 2024 to $4.54 billion by 2034, implying a CAGR of 13%. India’s share of the global IVF market is expected to increase from ~4.8% in 2024 to ~8.3% by 2034, positioning it among the fastest-growing IVF markets globally.
- While structural tailwinds for the IVF segment remain intact, the key monitorable will be the company’s ability to execute its aggressive expansion plans without compromising margins, return ratios or cash flow discipline.
- Overall, the investment case appears more compelling from a long-term perspective rather than for any meaningful listing gains. Considering these factors and the prevailing cautious broader market sentiment, a more prudent strategy may be to accumulate the stock on dips post-listing, once it settles into a stable range.
About the company
Founded in
24 Mar'15
Managing director
Dr. Manika Khanna
- Gaudium IVF offers a comprehensive range of fertility services, including In Vitro Fertilization (IVF), Intracytoplasmic Sperm Injection (ICSI), Intrauterine Insemination (IUI) and Ovulation Induction, addressing male and female infertility. It also provides gynaecological care for Polycystic Ovarian Disease/Polycystic Ovary Syndrome (PCOD/PCOS), endometriosis and high-risk pregnancy management.
- The company specializes in male infertility treatments, sperm retrieval, egg freezing, Frozen Embryo Transfers (FET) and infertility-related surgeries. Genetic testing, including Preimplantation Genetic Testing (PGT), is also available to improve pregnancy outcomes.
- The company currently operates across 30 locations in India, comprising 7 hubs (own centres) and 28 spoke centres through strategic alliances with infertility specialists. It plans to expand into 19 additional locations by FY29, with a strategic focus on underpenetrated Tier II cities.
STRENGTHS
- Financial Performance: The company has demonstrated strong execution, delivering a revenue CAGR of 27% over FY23 to FY25, along with EBITDA and net profit CAGR of 19% during the same period.
- Strong Return Metrics: Despite some volatility in historical cash flows, the business model remains structurally high-return in nature, with an average ROCE of ~40% over the past three years.
- Solid Margins: Profitability remains robust, with operating margins consistently above 40% from FY23 to FY25, reflecting disciplined cost management and a premium service positioning.
- Cycle Performance: The company completed 3,512 cycles in FY23, 3,711 cycles in FY24, 3,476 cycles in FY25, and 1,824 cycles in H1FY26, demonstrating steady operational scale and execution capability.
- OPD Growth: Outpatient visits have grown meaningfully, rising from 4,218 in FY23 to 7,208 in FY24 and 8,145 in FY25, indicating a steadily expanding patient base and improving brand traction.
RISK FACTORS
- Margin Compression: Although profitability remains healthy, margins have shown a declining trend. EBITDA margin moderated from 45.36% in FY23 to 40.48% in FY25, while PAT margin declined from 30.56% to 26.96% over the same period. Despite remaining stronger than FY24 levels, margins witnessed further softening in H1FY26, with EBITDA and PAT margins declining to 38.29% and 25.14%, respectively. Sustained pressure on margins could impact overall earnings quality.
- High Contingent Liabilities: The company has disclosed contingent liabilities of ~Rs 45 crore in the form of ongoing legal claims. This is significant when compared to its net worth of Rs 58.85 crore as of H1FY26. Any adverse outcome in these matters could materially affect the company’s financial position and liquidity.
- Execution Risk: While the company operates under a relatively asset-light and partnership-driven model, scaling IVF operations necessitates substantial upfront investment in advanced laboratory infrastructure and recruitment of specialised medical professionals. The planned rollout of 19 centres over the next three years demands disciplined capital allocation and seamless operational integration. Aggressive expansion could place pressure on cash flows and temporarily impact profitability.
- High Attrition Levels: The business is highly dependent on skilled healthcare professionals. As of FY25, attrition among full-time doctors, nurses and healthcare staff stood at 63%, which is materially high. Inability to retain and attract qualified talent may adversely affect service quality, operational continuity and financial performance.
- IVF Success Rate Sensitivity: The company reported an IVF success rate of ~58% in FY25 and H1FY26. Variability in success rates may influence patient perception, brand reputation and demand for services, thereby impacting revenue growth.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 165 crore
Fresh Issue
₹ 90 crore
OFS
₹ 75 crore
Price range
₹ 75 - 79
Lot size
189 shares
Issue Objective
The net proceeds from the fresh issue will be utilized for the following purposes:
- Establishment of new IVF centres;
- Repayment or pre-payment of certain outstanding loans availed by the company; and
- General corporate purposes.
Dates
Bidding open
20 Feb'26
Bidding close
24 Feb'26
Allotment date
25 Feb'26
Refund date
26 Feb'26
Listing
27 Feb'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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