Business Overview
Paras Healthcare Limited is a clinical specialty led hospital platform providing tertiary and quaternary healthcare services under the “Paras Health” brand across North India, Bihar and Jharkhand. The company operates eight hospitals with an aggregate bed capacity of 2,211 beds across Gurugram, Panchkula, Patna, Darbhanga, Kanpur, Udaipur, Ranchi and Srinagar, spanning five states and one union territory. Its clinical model is anchored in the high acuity CONGOR specialties (cardiac sciences, oncology, neurosciences, gastro sciences, orthopaedics & sports injury, and renal sciences), which contributed 75.30% of Fiscal 2026 revenue. A defining element of the model is its capital efficient structure: Hospitals are run through a mix of owned, leased, revenue share and public-private partnership arrangements, keeping capital expenditure per bed at ₹ 0.77 Crore as of June 30, 2026.
Headquartered in Gurugram, Haryana, Paras Healthcare has an operating history of over 20 years. Its portfolio is balanced across four Mature Hospitals (Gurugram, Patna, Panchkula and Darbhanga, operational for over seven years), two Emerging Hospitals (Ranchi and Udaipur, four to seven years) and two New Hospitals (Srinagar and Kanpur, under four years). The company is empanelled under government schemes such as CGHS, ECHS and AB-PMJAY, and runs DNB/DrNB academic programmes across 14 specialties. It plans to add a 300 bed hospital in Gurugram and a 500 bed hospital in Ludhiana, taking total capacity to 3,011 beds by March 2028. This setup is managed by a workforce of 4,670 employees, including 1,084 doctors and 1,937 nurses.
IPO Details
| IPO Date | Oct 21 to Oct 23, 2026 |
|---|---|
| Face Value | ₹ 1/- per share |
| Price Band | ₹ 660 to ₹ 693 per share |
| Lot Size | 21 shares and in multiples thereof |
| Issue Size | ₹ 1,450 Crores |
| Issue Type | Fresh Issue – ₹ 500 Crores. Offer For Sale – ₹ 950 Crores. |
Objects of the Issue
- Prepayment or scheduled repayment, in full or in part, of certain outstanding borrowings availed by the Company – ₹ 320.90 Crores.
- Investment in wholly owned subsidiary Plus Medicare Hospitals Private Limited (PMHPL), which operates the Srinagar hospital, for repayment/prepayment of its borrowings – ₹ 54.10 Crores.
- General corporate purposes.
Key Strengths
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Leading Specialty led Franchise in Under penetrated Tier-2 Markets:
Paras Healthcare positions itself among the largest healthcare providers in North India, Bihar and Jharkhand, with a first mover advantage in several Tier-2 and Tier-3 cities where organised tertiary capacity is limited. Its 2,211 bed network operates on a hub-and-spoke model, with CONGOR specialties contributing 75.30% of Fiscal 2026 revenue and 74.35% in the quarter ended June 30, 2026. The network is equipped with biplane cath labs, LINACs, surgical robots and PET-CT scanners, and its clinical team includes three Padma Shri awardees. Bed occupancy reached 69.72% in the June 2026 quarter, reflecting strong demand for complex care in its catchment areas. -
Capital efficient Operating Model with a Balanced Hospital Portfolio:
By combining owned, leased, revenue share and public private partnership structures, the company limits upfront capital intensity, with capital expenditure per bed of ₹ 0.77 Crore as of June 30, 2026. Its mix of mature, emerging and new hospitals allows cash flows from established units to support the ramp up of newer ones. Revenue from operations grew at a 19.26% CAGR from ₹ 1,129.04 Crores in FY24 to ₹ 1,605.95 Crores in FY26, while EBITDA grew at a 47.41% CAGR over the same period. Cash flow from operations improved from ₹ 92.48 Crores in FY24 to ₹ 163.51 Crores in FY26. -
Stable Payor Base and In-house Clinical Talent Pipeline:
Empanelment under CGHS, ECHS and AB-PMJAY provides a steady base of patient volumes, with government schemes and PSUs accounting for roughly 41-44% of revenue in recent periods. The company runs DNB/DrNB programmes training up to 60 students annually across 14 specialties, which strengthens its academic standing and its pipeline of clinicians. It recorded a patient satisfaction score of 90.60 and a net promoter score of 93.31.
Key Risks
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Substantial Indebtedness and Weak Debt-Servicing History:
Outstanding fund based borrowings stood at ₹ 939.47 Crores as of August 31, 2026, and the interest coverage ratio fell to 0.75x in FY25. Debt to equity stood at 3.53x in FY26. Any shortfall in cash flows or rise in interest rates could constrain the company’s ability to service debt and fund its planned expansion. -
Dependence on Government Schemes and PSU Payors:
Government schemes and PSUs contributed 43.63% of revenue from operations in the quarter ended June 30, 2026, exceeding the self-pay share of 31.30%. Such schemes typically carry administratively set tariffs and longer receivable cycles, so any revision in package rates, delay in reimbursements or de-empanelment could compress margins and stretch working capital. -
High Attrition among Healthcare Professionals:
Overall attrition stood at 60.38% in Fiscal 2026 and 66.74% in Fiscal 2025, while retainer and consultant fees account for approximately 25% of total expenses. The departure of senior clinicians can shift patient referrals to competitors, and replacing such senior clinicians raises costs and disrupts specialty programmes.
Financial Snapshot
| Period Ended | FY26 | FY25 | FY24 |
|---|---|---|---|
| Total Income | 1,628.8 | 1,314.2 | 1,151.0 |
| YoY Growth | 23.9% | 14.2% | – |
| EBITDA | 335.6 | 156.5 | 154.4 |
| YoY Growth | 114.5% | 1.3% | – |
| EBITDA Margin | 20.6% | 11.9% | 13.4% |
| Profit After Tax | 43.8 | (58.0) | (15.3) |
| YoY Growth | NA | NA | – |
| PAT Margin | 2.7% | (4.4%) | (1.3%) |
Conclusion
Paras Healthcare offers exposure to a specialty led hospital platform with an established presence in under penetrated Tier-2 markets of North India, Bihar and Jharkhand. Its eight hospital, 2,211 bed network is anchored in high acuity CONGOR specialties that contributed 75.30% of FY26 revenue, and its asset light mix of owned, leased, revenue share and PPP hospitals keeps capital intensity in check.
The business has delivered a clear operating turnaround. Revenue from operations grew 24.1% to ₹ 1,605.95 Crores in FY26, EBITDA more than doubled to ₹ 335.58 Crores, EBITDA margin expanded from 11.9% to 20.6%, and the company swung to a PAT of ₹ 43.83 Crores from a loss of ₹ 57.98 Crores in FY25. The momentum carried into the June 2026 quarter, with an EBITDA margin of 23.7% and PAT of ₹ 49.68 Crores, exceeding full year FY26 profit. Utilisation of ₹ 375 Crores of fresh issue proceeds for debt repayment should lower finance costs, while the planned addition of 800 beds by March 2028 offers growth visibility.
However, high leverage, a history of losses in FY24 and FY25, reliance on government payors and high clinical attrition remain key risks. About 65.5% of the issue is an offer for sale, from which the company receives no proceeds. Considering all the above reasons:
We Recommend Investors to Subscribe the IPO for Listing Gains.
