Paras Healthcare Limited

Paras Healthcare Limited is a leading clinical specialty-led healthcare provider in North India, Bihar, and Jharkhand operating under the established "Paras Health" brand. Incorporated in 1987, the company established its flagship hospital in Gurugram, Haryana in 2006. Its core value proposition focuses on delivering accessible, high-quality tertiary and quaternary medical care to underserved regional catchments with large populations. Paras Healthcare operates through a flexible operating model comprising owned, leased, revenue-sharing, and public-private partnership (PPP) arrangements. This strategy minimizes initial capital intensity, enables rapid market entry into identified white spaces, and enforces disciplined return-on-invested-capital thresholds.

As of June 30, 2026, Paras Healthcare’s network encompasses 8 operational multispecialty hospitals across five states and one union territory, representing an aggregate capacity of 2,211 beds, 1,502 operational beds, and 559 ICU beds. The network includes mature units in Gurugram (300 beds total / 235 operational), Patna (392 total / 309 operational), Panchkula (284 total / 230 operational), and Darbhanga (100 total / 79 operational); emerging units in Udaipur (200 total / 169 operational) and Ranchi (300 total / 177 operational); and new units in Srinagar (200 total / 168 operational) and Kanpur (435 total / 135 operational). Operational capacity utilization, measured by the bed occupancy rate across operational beds, expanded to 61.75% in FY26 (up from 50.78% in FY25) and reached 69.72% in Q1 FY27, led by mature facilities operating at 74.81% occupancy.

The company caters to a diverse patient demographic across Tier-1, Tier-2, and Tier-3 markets in North and East India. Tier-2 and Tier-3 cities generated 69.64% of operational revenues as of Q1 FY27 (68.18% in FY26). Patient volume is divided between in-patient department (IPD) admissions and out-patient department (OPD) consultations. In FY26, IPD volume reached 115,496 discharged patients generating ₹12,567.53 Million (78.26% of operations), while OPD volume registered 778,707 consultations generating ₹2,859.17 Million. Payor-wise revenue mix as of Q1 FY27 is distributed across Government Schemes and PSUs (43.63%), Self-Pay cash patients (31.30%), and Insurance/TPA clients (25.07%).

Paras Healthcare focuses heavily on clinically intensive, high-acuity super-specialties categorized under "CONGOR" (Cardiac Sciences, Oncology, Neuro Sciences, Gastro Sciences, Orthopedics & Sports Injury, and Renal Sciences). CONGOR specialties generated 74.35% of operational revenue in Q1 FY27 (74.70% in FY26). The company’s advanced treatment infrastructure includes bone marrow transplants (Gurugram, Patna, Panchkula), kidney and liver transplant programs (Gurugram, Patna, Panchkula), robotic surgery systems (Patna, Panchkula, Kanpur), deep brain stimulation, linear accelerators (LINAC) for advanced radiation oncology (Ranchi, Udaipur, Patna, Panchkula), and ECMO life support. Average revenue per occupied bed (ARPOB) reached ₹49,351.70 per day in Q1 FY27 with an Average Length of Stay (ALOS) of 2.77 days.

Operational infrastructure is supported by "Paras Labs," a NABL-accredited central reference pathology laboratory in Gurugram, alongside on-site NABL laboratories at Patna, Panchkula, and Srinagar. Seven of the eight operational hospitals hold NABH accreditations. Clinical care is delivered by a dedicated team of 1,084 doctors and 1,937 nurses (representing a doctor-to-bed ratio of 0.63 and nurse-to-bed ratio of 1.29 as of June 30, 2026). The company is executing an expansion pipeline to scale total bed capacity to 3,011 beds by FY28, including upcoming greenfield/brownfield expansion projects in Gurugram II (300 beds targeted for FY27) and Ludhiana (500 beds targeted for FY28).

Financially, Paras Healthcare Limited reported total income and net profits/losses of ₹1,151.02 Cr and ₹(15.33) Cr (FY24), ₹1,314.21 Cr and ₹(57.98) Cr (FY25), ₹1,628.78 Cr and ₹43.83 Cr (FY26), and ₹478.75 Cr and ₹49.68 Cr (Q1 FY27). The company has demonstrated steady top-line growth with total income expanding at an 18.91% CAGR from FY24 to FY26, alongside a net profit turnaround from losses in FY24 and FY25 to profitability in FY26 and Q1 FY27, driven by operating leverage across newer hospitals. Total debt stood at ₹888.89 Cr as of June 30, 2026 (excluding lease liabilities), with ₹375.00 Cr from fresh issue proceeds allocated toward debt repayment. The company maintains an average EPS of ₹(0.07) and an average RoNW of (1.14)% over the last three fiscals.

Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 15.73 (NAV of ₹44.06 as of June 30, 2026). Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 7.93. Attributing historical earnings to the expanded post-issue equity base, the asking price reflects a Post-Issue P/E of Negative for FY24 and FY25, and 171.07 (79.31 TTM) for FY26. A comparison with listed peers shows that Paras Healthcare's TTM P/E of 79.31 trades at a premium compared to the listed peer average FY26 P/E of 67.81 (such as Apollo Hospitals Enterprise at 54.1, Aster DM Healthcare at 167, and Yatharth Hospital at 52.0), while delivering a competitive Return on Capital Employed.

The issue is managed by BofA Securities India Limited, JM Financial Limited, and Nuvama Wealth Management Limited. MUFG Intime India Private Limited is acting as Registrar to the Offer.

• 1 Dr. Dharminder Kumar Nagar