IPO listed on 28 Oct'26
Paras Healthcare Limited
Minimum Investment
₹ 14,553 / 21 shares
Our Verdict:
Neutral
- The turnaround is very recent: PAT moved from losses of ₹15.33 crore (FY24) and ₹57.98 crore (FY25) to ₹43.83 crore in FY26 and ₹49.68 crore in Q1 FY27, with EBITDA more than doubling to ₹335.58 crore on revenue growth of 24.1%. The profit record is only about five quarters long and the FY26 PAT margin is a thin 2.7%.
- The valuation pays for hospitals that have not matured yet: the implied market value of ~₹7,500 crore is ~171x FY26 earnings and ~8.4x post-issue book value. ARPOB was flat to lower (₹48,089 in FY25, ₹47,398 in FY26), so FY26 growth came from occupancy rising from 50.8% to 61.8%, not from pricing, and the case rests on newer hospitals filling beds.
- The balance sheet is heavily geared and cash conversion is weak: borrowings were ₹854.10 crore against net worth of ₹394.94 crore in FY26 (~2.2x) and ₹888.89 crore by June 2026, contingent liabilities equal ~89.6% of net worth, and government payers (~41% of FY26 revenue) have stretched receivable days from 46 to 66.
About the company
Founded in
1 Jan'87
Managing director
Dr. Dharminder Kumar Nagar
- Paras Healthcare Limited runs a clinical specialty-led hospital platform under the "Paras Health" brand, offering tertiary and quaternary care with a focus on cardiac, oncology, neuro, gastro, orthopaedics and renal (CONGOR) specialties.
- It operates eight hospitals with 2,211 beds (including 559 ICU beds) as of June 30, 2026, in Gurugram, Panchkula, Patna, Darbhanga, Udaipur, Ranchi, Srinagar and Kanpur, with 1,084 doctors and 1,937 nurses.
- Revenue from operations grew from ₹1,129.04 crore (FY24) to ₹1,605.95 crore (FY26), and PAT turned to ₹43.83 crore in FY26 from a ₹57.98 crore loss in FY25; CONGOR specialties were 74.35% of Q1 FY27 revenue.
- Promoter: Dr. Dharminder Kumar Nagar (Managing Director), who holds 72.80% before the offer and has been associated with the company since 2003
STRENGTHS
- Specialty-Led Hospital Platform: Eight hospitals and 2,211 beds across North India, Bihar, Jharkhand and Rajasthan, with a plan to reach 3,011 beds by March 2028.
- High-Acuity Specialty Mix: CONGOR specialties generate about three-quarters of revenue, with no single specialty above 25%.
- Quality Accreditation: Seven of eight hospitals are NABH-accredited, with a patient satisfaction score of 90.60 and net promoter score of 93.31 (March 31, 2026).
- Improving Margins: EBITDA margin rose from ~12.1% in FY25 to ~20.9% in FY26 and ~24.1% in Q1 FY27, helped by rising occupancy at newer hospitals.
- Established Clinical Workforce: 1,084 doctors and 1,937 nurses, with the Gurugram flagship reaching ~89% occupancy in Q1 FY27.
RISK FACTORS
- Recent Profitability and Loss-Making Subsidiaries: The company reported losses in FY24 and FY25, and subsidiaries Paras Healthcare (Ranchi) and PMHPL (Srinagar) have posted significant losses.
- High Leverage and Contingent Liabilities: Borrowings of ₹888.89 crore at June 2026 against net worth of ₹444.96 crore, and contingent liabilities equal to 89.55% of net worth.
- High Staff Attrition: Attrition was 60.38% in FY24 and 66.74% in FY25, which puts specialist-led revenue at risk.
- Regional Concentration and Leased Sites: Five of eight hospitals are in North India (about two-thirds of revenue), six of eight sit on leased premises, and government payers set fixed rates.
- Governance and Litigation: A Promoter Group member appears in the CIBIL wilful defaulter database, and there is outstanding litigation against the company, subsidiaries, promoter, directors and key managerial personnel.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ Up to ₹1,450 crore
Fresh Issue
₹ Up to ₹500 crore
OFS
₹ Up to ₹950 crore
Price range
₹ 660 - 693
Lot size
21 shares
Issue Objective
- Fresh Issue of up to ₹500 crore: ₹320.90 crore to repay or prepay certain borrowings, ₹54.10 crore to invest in subsidiary PMHPL to repay its borrowings, and the balance for general corporate purposes. The Offer for Sale of up to ₹950 crore is by promoter Dr. Dharminder Kumar Nagar (up to ₹300 crore) and Commelina Ltd (up to ₹650 crore); the company receives no proceeds from it.
Dates
Bidding open
21 Oct'26
Bidding close
23 Oct'26
Allotment date
26 Oct'26
Refund date
27 Oct'26
Listing
28 Oct'26
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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