Nephrocare Health IPO: Check IPO Date, Lot Size, Price & Details

Business Overview:

Nephrocare Health Services Ltd., incorporated in 2010, is India’s largest dialysis services provider, offering end-to-end renal care across diagnosis, haemodialysis, home/mobile dialysis, and wellness programs supported by its own pharmacy network. The company dominates the Indian market in patients served, clinics operated, cities covered, treatments performed, revenue, and EBITDA in FY25, standing 4.4x larger than the next organized competitor.

In FY25, Nephrocare served 29,281 patients and completed 2.89 million treatments, representing 10% of India’s dialysis population.

Nephrocare is also the largest dialysis provider in Asia and the fifth-largest globally (FY25). It is the only Indian operator with an international footprint, running 519 clinics, including 51 centers across the Philippines, Uzbekistan (where it operates the world’s largest dialysis clinic), and Nepal.

Domestically, Nephrocare has built the most widely distributed dialysis network across 288 cities, 21 States, and 4 UTs, with 77.5% of clinics in Tier II & III regions addressing critical gaps in underserved markets. The company also operates multiple hospital embedded centers through partnerships with Max, Fortis Escorts, Care Hospitals, Wockhardt, Paras, CMRI, Jehangir, and Ruby Hall Clinic, strengthening its integrated care model.

IPO Synopsis:

Objective of the Issue:

• Capital expenditure by the Company for opening new dialysis clinics in India - ₹ 129.11
• Pre-payment, or scheduled repayment, in full or part, of certain borrowings availed by the Company - ₹ 136
• General Corporate Purposes.

Strengths:

• Diversified Geographical Revenue Base:

The company has rapidly diversified its revenue mix, with FY25 contributions at 68% domestic and 32% international, compared to 88% and 12% in FY23. This shift reflects its strong ability to acquire, integrate, and scale operations overseas, reducing dependence on the Indian market and broadening long-term growth visibility.

• Asset-Light Operating Model:

Nephrocare follows an efficient expansion strategy through Greenfield, brownfield, and PPP formats, operating 80, 259, and 180 clinics respectively as of Sep 30, 2025. With 52.41% clinics under revenue-sharing arrangements, the company maintains low capex, optimizes procurement leverage, and achieves strong cost efficiencies under a lean and scalable model.

• Strategic Acquisitions & International Expansion:

The company has acquired 18 entities to accelerate growth, including the acquisition of DaVita India in 2018, which added 18 clinics across 11 states and 1,700+ patients. Internationally, Nephrocare operates 41 clinics in the Philippines serving 2,276 patients, showcasing its capability to scale both organically and through strategic M&A.

Risks:

• Concentration of Revenue from Captive Clinics:

A large portion of revenue 43% in FY25 comes from captive clinics within partner hospitals. Although this dependence has reduced from 62% in FY23, losing hospital contracts remains a material risk. Four past instances of hospitals shifting to their own dialysis units highlight potential revenue volatility and relationship risk.

• Public - Private Partnership (PPP) Model Exposure:

With PPP revenue rising to 32% in FY25 from 22% in FY23, the company is increasingly dependent on tender-based contracts. These projects are awarded through competitive bidding and strict qualification norms, creating uncertainty in renewals, pricing, and continuity. Any tender loss could directly impact clinic volumes and profitability.

• Regulatory, Reputational & Operational Risks:

Dialysis care quality depends heavily on clinical expertise, staff behavior, patient experience, and adherence to medical standards. As a healthcare provider, the company faces stringent regulatory scrutiny, requiring significant compliance costs and oversight. Any lapse in clinical, operational or reputational can lead to penalties, patient attrition, and disruption to long-term growth.

Financial Snapshot (Rs. In Crores):

Peer Comparison:

Conclusion:

India’s dialysis industry is witnessing strong structural growth, supported by a rising prevalence of chronic kidney disease (CKD), increasing life expectancy, and inadequate access to quality renal care particularly in Tier II and Tier III cities. With dialysis demand growing at a 17% CAGR, well ahead of the 7% global growth rate, the sector offers long-term revenue visibility as dialysis remains a non-discretionary, life-sustaining treatment.

Within this favourable backdrop, Nephrocare stands out due to its asset-light, highly scalable clinic model and its leadership position. With 519 clinics, nearly 10% share of India’s dialysis patient base, and presence across 288 cities, the company has built unmatched scale. Its diversified revenue stream across captive hospital clinics, PPP contracts, and standalone greenfield/brownfield centers, along with expanding international operations, helps reduce concentration risk and ensures stable cash flows.

Globally, nearly 80 Crore people are affected by kidney disease, while in India around 85% of patients remain untreated, largely due to late diagnosis, often at Stage 5, making dialysis unavoidable. Strategic acquisitions, strong hospital partnerships, and government-backed PPP participation provide Nephrocare with sustained growth visibility and high entry barriers.

While EBITDA margins and return ratios remain below industry averages, reliance on captive and PPP clinics introduces tender and contract-related risks. However, improving revenue growth, expanding international footprint, and rising operating leverage position the IPO as attractive for listing gains, with margin normalisation as a key input to watch out for.

We recommend the IPO for Listing Gains.

IPO Allotment

Find out the allotment status for the Wakefit Innovations IPO by checking the Kfin Technologies IPO Application Status page.