Paras Healthcare Limited is going live. They run eight hospitals across North India, Bihar and Jharkhand that treat complex cases in cardiac care, cancer, neurology, gastro, orthopaedics and kidney care.
IPO Summary
| Paras Healthcare IPO Details | |
|---|---|
| IPO Date | 21st to 23rd Oct, 2026 |
| Issue Type | Fresh Issue + OFS |
| Tentative Listing Date | 28th Oct, 2026 |
| Price Band | ₹660 to ₹693 |
| Post Issue Mcap at ₹693 | ₹7,498 Cr |
| Total Listing Size | ₹1,450 Cr |
Introduction
India has about 16 hospital beds for every 10,000 people. The National Health Policy (2017) recommends 20. The world average is 33.
The gap is wider in the north. North India has 14 to 15 beds per 10,000 people, against 29 to 30 in the south. North India plus Bihar and Jharkhand together had ~7.5 lakh beds for 592 million people in FY22. The policy benchmark for that population was about 12 lakh beds.
India’s healthcare delivery market was worth about ₹7 lakh Cr in FY25 and is projected to grow 10% to 12% a year to ~₹12 lakh Cr by FY30. In-patient care made up ~72% of it.
Paras Healthcare Limited (Paras Health) runs eight hospitals across North India, Bihar and Jharkhand. They’re coming to market with an IPO worth ₹1,450 Cr, consisting of a Fresh Issue of ₹500 Cr and an Offer for Sale of ₹950 Cr, from 21st to 23rd Oct, 2026.
The Business Model
The company was incorporated in 1987 as Arbian Frozen Foods. It took the name Paras Healthcare in 2003, when it moved from frozen foods to healthcare.
Their first hospital opened in Gurugram in 2006 with 200 beds. Paras now runs hospitals in Gurugram and Panchkula (Haryana), Patna and Darbhanga (Bihar), Kanpur (Uttar Pradesh), Udaipur (Rajasthan), Ranchi (Jharkhand) and Srinagar (Jammu and Kashmir).
Paras treats complex cases that need specialist doctors and equipment, known as tertiary and quaternary care.
Six specialties, cardiac, oncology, neuro, gastro, orthopaedics, and renal, known as CONGOR, gave most of FY26 revenue. On June 30, 2026, it had 1,084 doctors and 1,937 nurses.
Now, a hospital earns money three ways:
- In-patients: Patients admitted for at least one night. They gave 78% of FY26 revenue.
- Out-patients: Consultations and visits that need no overnight stay.
- Pharmacy: Medicines sold at its pharmacies.
Who pays the bill matters as much as who is treated. In FY26, government schemes and PSUs paid for 41% of revenue, patients paid 34% themselves and insurers and TPAs paid 25%. Government schemes pay slowly. On average they took 153 days to pay in FY26, against 56 days for insurers and 5 days for patients paying themselves.
Paras owns only two of its eight hospitals: one in Gurugram, and one in Udaipur, through a subsidiary.
Patna, Panchkula and Ranchi hospitals pay part fixed rent and part revenue share. Darbhanga pays a revenue share. Srinagar and Kanpur pay a fixed rent. Ranchi runs under a public-private partnership.
Doctors are paid through retainer and consultant fees rather than salaries. These were ₹394 Cr in FY26, about a quarter of total expenses.
The company groups its hospitals by age:
- Mature (over 7 years): Gurugram, Patna, Panchkula and Darbhanga.
- Emerging (4 to 7 years): Ranchi and Udaipur.
- New (under 4 years): Srinagar and Kanpur.
Unit Economics (₹ per Occupied Bed per Day)
- Revenue per OBD rose 9% in FY25 to ₹48,119, then dipped to ₹47,468 in FY26.
- Adj. EBITDA per OBD went from ₹5,069 in FY25 to ₹9,244 in FY26. Since revenue per OBD barely moved in FY26, the gain came from costs.
- OBDs actually rose 26% in FY26, so fixed costs were spread over more bed days.
- Medicines and consumables rose sharply, from ₹11,649 in FY24 to ₹13,497 in FY25 before stabilising at ₹11,649 in FY26.
Operating Metrics
- An occupied bed day is one patient in one bed for one night. A patient who stays 3 nights adds 3. This went up from in FY24 to in FY26
- In-patients rose 42.5% from 81,047 in FY24 to 1,15,496 in FY26, and out-patient visits rose 36.8%. Patients stayed for shorter periods: average length of stay fell from 3.14 days to 2.93 days.
- Of the three largest hospitals, Gurugram runs fullest at 89%, with Patna at 73% and Panchkula at 67%. The mature hospitals sit between 62% and 89%. The two new ones are catching up fast: Kanpur rose from 19% in Q1 FY26 to 66%, and Srinagar from 23% to 53%.
- Government schemes and PSUs went from 29.8% of revenue in FY24 to 43.6% in Q1 FY27, the largest payer. The share of patients paying themselves fell from 40.6% to 31.3%.
- Oncology became the largest specialty, rising from 18.9% of revenue in FY24 to 21.6% in FY26. Gastro rose from 5.1% to 8.3%. Neuro fell from 15.1% to 13.0%. CONGOR as a whole went from 72.3% to 74.7%.
The Financial Stuff
- Revenue went from ₹1,129 Cr in FY24 to ₹1,294 Cr in FY25 and ₹1,606 Cr in FY26, a CAGR of 19%.
- Adj. EBITDA Margin was 11% in FY24 and FY25, and 20% in FY26, while Adj. EBITDA went from ₹119 Cr to ₹313 Cr between FY24 and FY26.
- Depreciation rose from ₹81 Cr to ₹144 Cr in the same period and Finance Costs from ₹67 Cr to ₹116 Cr.
- Paras made a net loss of ₹15 Cr in FY24 and ₹58 Cr in FY25, and a profit of ₹44 Cr in FY26. Paras has just recently broken even.
Paras Healthcare’s Peers (FY26)
- Paras is the smallest of the five, at ₹1,606 Cr of revenue. The next smallest, Fortis, is ~6 times its size at ₹9,128 Cr, and Apollo is the largest at ₹25,229 Cr.
- Its EBITDA margin of 21% is above Apollo’s 15% and below Fortis’ 23%, Manipal’s 25% and Max’s 26%.
- Its PAT margin of 3% is the lowest of the five. The four peers range from 6% to 16%.
- Its RoNW of 13% is above Manipal’s 12% and Fortis’ 11%, but below Max’s 14% and Apollo’s 22%.
At an upper band of ₹693 and FY26 basic EPS of ₹4.34, Paras Healthcare will trade at a P/E of 159.7x. Peers range from 93.2x at Manipal Health to 51.2x at Fortis.
Key Risks
- Short profit record: Paras made losses in FY24, FY25 and Q1 FY26, and turned a profit only in FY26. It is the lowest on RoCE and RoE, and highest on debt to equity, among listed peers in FY24, FY25, Q1 FY26 and Q1 FY27.
- Debt: Borrowings stood at ₹939 Cr on August 31, 2026. D/E ratio was 3.21x including leases and 2x excluding them. Its credit ratings have also been downgraded in the past
- Government payers: Government schemes and PSUs gave 44% of Q1FY27 revenue but such schemes take ~5 months to pay. Receivables in fact rose to ₹448 Cr, of which ₹128 Cr was over six months old this year.
- Action by government schemes: CGHS suspended Patna’s empanelment in April 2024 after complaints of medical negligence. It was later restored. Rajasthan’s RGHS blocked Udaipur’s claims access for 72 days in 2025, and in July 2026 ordered it to deposit ₹0.85 Cr over alleged irregular claims.
- Staff attrition: Attrition rate was ~65% in FY24, and still 60% in FY26. Paras depends on attracting and keeping doctors and nurses from a limited pool and a higher rate might prove detrimental in the long run.
- Geographic concentration: Gurugram gave ~32% of FY26 revenue, and the five North India hospitals gave ~66%. Srinagar’s operations were briefly disrupted after the Pahalgam terror attack in April 2025.
- Brand: Paras does not own a registered trademark for the word “Paras”, and has no formal arrangement on its use by Promoter Group members. 25 of its 29 trademark applications for new logos have been opposed.
IPO FAQs
Q: What is Paras Healthcare’s price band?
A: Paras Healthcare has a price band of ₹660 to ₹693
Q: What is Paras Healthcare’s closing date?
A: Paras Healthcare IPO closes on 23rd Oct, 2026
Q: What is Paras Healthcare’s listing date?
A: Paras Healthcare lists on 28th Oct, 2026, on the NSE and the BSE
Conclusion
Paras Healthcare runs eight hospitals in parts of North and East India that have fewer beds than the national policy recommends. It grew revenue 24% in FY26, and its Adj. EBITDA margin rose from 11% in FY25 to 20% as its newer hospitals filled up. But it has only one profitable year, much revenue comes from government schemes that pay slowly, and has high debt to equity.
