Paras Healthcare is a clinical specialty-led hospital platform providing tertiary and quaternary healthcare services under the `Paras Health’ brand. Paras Healthcare established its first 200-bed hospital in Gurugram, Haryana, in 2006, becoming the first corporate hospital entrant among its listed peers. Since then, it has expanded largely organically, using internal accruals and debt financing.

As of June 30, 2026, the company operated eight hospitals with a total capacity of 2,211 beds, including 1,502 operational beds and 559 ICU beds across five states and one union territory. It has presence in Gurugram and Panchkula in Haryana, Patna and Darbhanga in Bihar, Kanpur in Uttar Pradesh, Udaipur in Rajasthan, Ranchi in Jharkhand and Srinagar in Jammu and Kashmir.

As of June 30, 2026, the company had a team of 1,084 doctors and 1,937 nurses across its hospital network.

The company classifies its eight hospitals into three categories based on operational maturity. Mature hospitals in Gurugram, Patna, Panchkula and Darbhanga have been operational for over seven years and benefit from established clinical reputations and stable occupancy levels. Emerging hospitals in Ranchi and Udaipur, operational for four to seven years, are seeing improving occupancy and margins as operations scale up. New hospitals in Srinagar and Kanpur, operational for less than four years, are expected to improve performance through higher occupancy, the addition of specialties and operating leverage. This mix supports cash generation from mature hospitals while providing growth potential as newer facilities ramp up, contributing to overall margin expansion.

The company focuses on underserved markets with large catchment populations, demand for quality tertiary and quaternary care, and access to medical professionals through nearby medical colleges. It is among the larger healthcare providers in North India, Bihar, and Jharkhand by bed capacity. In Q1 FY27, Tier-2 cities contributed 69.64% to revenue.

In Q1 FY27, Government schemes and public sector undertakings accounted for 43.63% of revenue, self-pay contribution 31.30%, and insurance/TPA contribution fell to 25.07%.

With around 20 years of operating history, the company has developed specialty clusters through investments in clinical infrastructure, medical talent and standardised care protocols. Its hospitals focus on high-acuity treatments across cardiac sciences, oncology, neurosciences, gastro sciences, orthopaedics and sports injury, and renal sciences, collectively referred to as CONGOR.

CONGOR specialties contributed 74.35% of revenue from operations in Q1 FY27, led by oncology at 19.43%, cardiac sciences at 13.31%, neurosciences at 12.50%, orthopaedics and sports injury at 12.13%, renal sciences at 8.74% and gastro sciences at 8.24%. Other specialties accounted for the remaining 25.65%.

In Q1 FY27, operating performance was supported by an improvement in bed occupancy to 69.72% from 56.75% in Q1 FY26. Occupied bed days rose 25.9% to 95,272. Average revenue per occupied bed (ARPOB) increased 1.4% to Rs 49,352 per day, while average length of stay declined marginally to 2.77 days from 2.87 days.

In Q1 FY27, In-patient volume increased 30.32% to 34,354, while out-patient volume rose 26.13% to 225,734. Capex per bed increased to Rs 77 lakh from Rs 74.6 lakh, and the number of surgeries rose 20% YoY to 11,112.

The company operates its hospitals through a mix of owned, leased, revenue-sharing and public-private partnership models, allowing it to balance capital efficiency with long-term operational control. Leased facilities follow fixed-rent, revenue-sharing or hybrid arrangements, while expansion decisions are guided by return thresholds and balance-sheet strength.

The company’s hospitals are equipped with modern operating theatres, procedure rooms and specialised intensive care units (ICUs), supported by advanced medical equipment such as MRI machines, PET-CT scanners, linear accelerators, surgical robots and advanced imaging systems. Its critical care infrastructure covers cardiac, neurological, transplant, neonatal, paediatric and other specialised needs. The number of ICU beds increased from 425 as of March 31, 2024, to 559 as of June 30, 2026, reflecting its focus on high-acuity care. In Q1 FY27, the company recorded 34,354 discharged in-patients and 2.26 lakh outpatient consultations.

Seven of its eight hospitals are accredited by the National Accreditation Board for Hospitals and Healthcare Providers (NABH). It also operates NABL-accredited testing laboratories at its Patna, Panchkula and Srinagar hospitals, along with a central reference laboratory, Paras Labs, in Gurugram.

The company plans to improve occupancy and profitability at its emerging hospitals in Ranchi and Udaipur and newer hospitals in Srinagar and Kanpur by attracting specialist doctors, expanding clinical services, adding beds as demand grows and increasing insurance and government scheme empanelment.

The company plans to deepen its CONGOR specialties by adding specialist clinical teams and introducing new clinical programmes in areas such as oncology, neurosciences, organ transplants and robotic surgery, based on patient demand.

Offer and its objects

The IPO comprises fresh issue of equity shares worth up to Rs 500 crore and an offer for sale aggregating up to Rs 950 crore by existing shareholders Dr. Dharminder Kumar Nagar and Commelina.

Price band for the IPO is Rs 660 to Rs 693 per equity share of face value Rs 1 each.

The objectives for the fresh issue include Rs 309 crore for Prepayment/re-payment, of certain outstanding borrowings, Rs 54.1 crore for investment in wholly owned subsidiary for repayment/prepayment of borrowings, and remaining amount for general corporate purposes.

The company has a planned expansion pipeline comprising a 300-bed hospital in Gurugram, targeted for launch in FY27, and a 500-bed hospital in Ludhiana, targeted for FY28. It expects to increase its total bed capacity to 3,011 by March 31, 2028. Both projects are under lease arrangements, with construction being undertaken by the lessors. As of June 30, 2026, no material capital expenditure had been incurred by the company. Funding is expected through internal accruals and bank borrowings.

Dr. Dharminder Kumar Nagar is the Promoter. The promoters and promoter group hold an aggregate of 7,35,19,240 equity shares, aggregating to 72.8% of the pre-offer issued and paid-up equity share capital. Their post IPO shareholding is expected to be around 63.95%.

The issue, through the book-building process, will open on 21 October 2026 and will close on 23 October 2026.

Strengths

Established brand with over 20 years of healthcare experience, supported by a network of eight hospitals across North India and select eastern markets.

EBITDA margin expanded steadily from 11.73% in FY24 to 19.47% in FY26 and further to 22.33% in Q1 FY27, reflecting improving operating efficiency and profitability.

Strong focus on tertiary and quaternary care, with CONGOR specialties contributing 74.35% to revenue in Q1 FY27.

Exposure to underserved healthcare markets, with Tier-2 cities contributing 69.64% of revenue in Q1 FY27. Several of its operating markets have hospital-bed availability below the National Health Policy benchmark of 20 beds per 10,000 people, providing scope to address unmet demand.

Balanced portfolio of mature, emerging, and new hospitals. Four mature hospitals support stable occupancy and cash generation, while two emerging and two newer hospitals offer scope for rising occupancy, and improving margins.

Flexible operating model, combining owned, leased, fixed-rent, revenue-sharing and public-private partnership arrangements to expand across markets with different capital requirements.

Advanced clinical infrastructure, including surgical robots, LINACs, PET-CT scanners, biplane cath labs and specialized navigation systems, supporting complex tertiary and quaternary procedures.

Doctor-Led professional management team with proven execution capabilities.

Weaknesses

The company reported losses in FY24 and FY25 before becoming profitable in FY26. Moreover, the Ranchi and Srinagar hospital subsidiaries have also incurred losses in the past.

Five of the company’s eight hospitals are in North India, contributing 68.07% of Q1 FY27 revenue. Regional disruptions, adverse economic conditions or law-and-order issues could affect a significant portion of its business.

Employees, particularly doctors and nurses, are critical to hospital operations and patient care. High attrition, with overall employee attrition at 60.38% in FY26 and nurse attrition at 81.82%, may increase recruitment and training costs and affect continuity of care.

Expansion and ramp-up risks remain, as delays in approvals and lease execution previously postponed the launch of the Srinagar, Kanpur and Ranchi hospitals. Moreover, slower-than-expected occupancy growth at new facilities could affect profitability.

High dependence on government schemes and PSUs, which contributed 43.63% of Q1 FY27 revenue. They typically have longer payment cycles. The average receivable days from these payors stood at around 153 days in FY26 and 167 days in Q1 FY27.

The company does not hold a registered trademark for the core brand name `Paras’. The absence of a formal arrangement governing the use of the `Paras’ name within the Promoter Group creates uncertainty over brand protection and could lead to disputes, legal costs and potential reputational damage.

The company reported the lowest RoCE and RoE and the highest debt-to-equity ratio among its listed peers in Q1 FY27, FY25 and FY24, highlighting relatively weak returns and higher leverage.

There are litigations (including criminal) against the company, its subsidiaries, promoters, and directors.

Valuation

In Q1 FY27, net sales increased 28% to Rs 470.28 crore as compared with Q1 FY26. OPM increased 592 bps to 22.33%, leading to 74% increase in OP to Rs 105.01 crore. OI increased 45% to Rs 8.47 crore. Interest cost rose 8% to Rs 30.25 crore. Depreciation costs went up 8% to Rs 35.11 crore. PBT surged to Rs 48.12 crore. The company reported a tax credit of Rs 1.56 crore against a tax expense of Rs 6.87 crore. PAT stood at Rs 49.68 crore against a loss of Rs 1.02 crore.

Net sales increased 24% to Rs 1,605.95 crore in FY26 as compared with FY25. OPM improved by 894 bps to 19.47%, leading to 129% increase in OP to Rs 312.74 crore. OI increased 13% to Rs 22.83 crore. Interest cost rose 28% to Rs 115.98 crore. Depreciation cost went up 24% to Rs 143.57 crore. PBT stood at Rs 76.03 crore compared to a loss of Rs 50.04 crore. Tax expenses were Rs 32.2 crore as compared with Rs 7.94 crore. PAT stood at Rs 43.83 crore compared to a loss of Rs 57.98 crore.

The TTM EPS based on financials up to June 30, 2026, on post-issue equity works out to Rs 8.7. At the upper price band of Rs 693, the P/E works out to 79.

Total outstanding borrowings amounted to Rs 888.89 crore as on June 30, 2026. As much as 36% of the debt will be repaid from the issue proceeds, bringing down interest costs substantially and boosting profit. The TTM EPS (based on financials up to June 30, 2026) works out to Rs 10.6 if 36% of its interest cost is removed, keeping all other items, including tax rate, same. The re-worked P/E at the upper price band moderates to 65.

Listed peers such as Global Health traded at TTM P/E (based on financials up to June 30, 2026) of 61, Fortis Healthcare trades at 52, Max Healthcare Institute trades at 55, and Yatharth Hospital and Trauma Care Services trades at 53 as on 16 October 2026. OPM and ROE stood at 19.47% and 12.98% respectively, in FY26. These were 20.84% and 15.15% for Global Health, 22.84% and 11.08% for Fortis Healthcare, 26.79% and 14.33% for Max Healthcare Institute, and 24.2% and 10.36% for Yatharth Hospital and Trauma Care Services, respectively.