Paras Healthcare Limited, the company behind the “Paras Health” hospital brand across North India, Bihar and Jharkhand, has filed its Draft Red Herring Prospectus (DRHP) with SEBI, dated June 4, 2026. This is the company’s first public issue. Below is a detailed, plain-language breakdown of the business, its money, its risks and what an investor should understand before the offer opens.
Important context first: This is a draft document. As of this filing, the price band, lot size, opening/closing dates and exact share count are not yet decided (shown as [●] in the DRHP). Those get fixed only in the later Red Herring Prospectus. So you cannot apply yet — this analysis is to help you understand the company ahead of time.
Offer Snapshot
| Company | Paras Healthcare Limited |
| Brand | Paras Health |
| Total Offer Size | Up to ₹1,800 crore (₹18,000 million) |
| Fresh Issue | Up to ₹500 crore (₹5,000 million) |
| Offer for Sale (OFS) | Up to ₹1,300 crore (₹13,000 million) |
| Face Value | ₹1 per share |
| Price Band | To be announced |
| Listing | BSE and NSE (Mainboard) |
| Allocation | QIB at least 75%, NII up to 15%, Retail up to 10% |
| Lead Managers | JM Financial, BofA Securities India, Nuvama Wealth Management |
| Registrar | MUFG Intime India (formerly Link Intime) |
| Promoter | Dr. Dharminder Kumar Nagar |
Note the allocation structure: this offer is made under Regulation 6(2) of SEBI ICDR (the route used when a company does not meet the standard profitability/asset test), which is why at least 75% is reserved for institutional buyers and only up to 10% for retail — a smaller retail quota than a typical profitable issuer. A pre-IPO placement of up to ₹100 crore may also be done; if it happens, the fresh issue shrinks by that amount.
What the Company Actually Does (The Business)
Paras Healthcare runs a chain of eight hospitals with a total bed capacity of 2,211 beds (as of March 31, 2026), spread across five states and one union territory:
| State / UT | City |
| Haryana | Gurugram, Panchkula |
| Bihar | Patna, Darbhanga |
| Uttar Pradesh | Kanpur |
| Rajasthan | Udaipur |
| Jharkhand | Ranchi |
| Jammu & Kashmir | Srinagar |
It positions itself as a tertiary and quaternary care provider — meaning complex, high-end treatments rather than basic clinics. The clinical focus is on six core specialties the company calls CONGOR: Cardiac sciences, Oncology, Neuro sciences, Gastro sciences, Orthopedics and sports injury, and Renal sciences. These six together brought in about 74.7% of revenue in FY26.
The company began with one 200-bed hospital in Gurugram in 2006 and has grown largely organically over roughly 20 years. It often entered cities as a first or early corporate hospital — for example, the first corporate hospital among listed peers in Gurugram and Patna, and the largest private super-specialty hospital in Jammu & Kashmir by bed count.
Workforce as of March 31, 2026: 1,011 doctors and 1,665 nurses.
Maturity Mix of the Hospitals
Not all eight hospitals are at the same stage, which matters because newer hospitals lose money before they fill up:
- Mature (7+ years): Gurugram, Patna, Panchkula, Darbhanga — stable, profitable, the cash engine.
- Emerging (4–7 years): Ranchi, Udaipur — occupancy and margins still ramping up.
- New (under 4 years): Srinagar, Kanpur — recently opened, still building patient volumes.
Who Are the “Clients” — The Payor Mix
In a hospital business, the paying customers are split into three buckets. Paras has a fairly balanced spread, but the mix has shifted notably toward government schemes:
| Payor Category | FY26 | FY25 |
| Government Schemes & PSUs | 41.28% | 30.91% |
| Self-Pay (cash patients) | 33.88% | 41.01% |
| Insurance & TPAs | 24.84% | 28.08% |
The jump in government schemes (like PMJAY / public health programmes) to become the single largest payor is a double-edged point: it brings volume and reach in underserved regions, but government-scheme rates are typically lower-margin and the company has faced empanelment suspensions in the past (covered in Risks below).
Vendors, Products and Supply Chain
Paras buys large quantities of pharmaceutical products and medical consumables, plus high-value medical equipment. Procurement is run through a central buying unit (CBU) that negotiates terms and distributes to hospitals. Key points:
- The company generally does not sign long-term supply contracts and buys on a purchase-order basis from international and local suppliers, directly or via authorised distributors.
- Pharmaceuticals are sourced only through authorised distributors to avoid counterfeit/sub-standard supply, with attention to drug-price rules (DPCO / NPPA).
- Its “products” sold to patients include healthcare services (in-patient and out-patient), pharmacy sales, and other operating services.
- Supplier concentration: the top 10 suppliers/vendors accounted for 31.37% of total third-party supplies in FY26 (37.40% in FY25, 25.10% in FY24).
Financial Performance
This is the most important part. Paras has grown revenue strongly, but its bottom line only just turned positive in FY26 after two years of losses.
| Particulars (₹ crore) | FY26 | FY25 | FY24 |
| Revenue from Operations | 1,605.95 | 1,294.06 | 1,129.04 |
| Total Income | 1,628.78 | 1,314.21 | 1,151.02 |
| EBITDA | 335.58 | 156.46 | 154.41 |
| EBITDA Margin | 20.60% | 11.91% | 13.42% |
| Profit / (Loss) for Year | 43.83 | (57.98) | (15.33) |
| Total Equity (Net Worth) | 394.94 | 280.49 | 338.51 |
| Total Borrowings | 854.10 | 727.93 | 547.53 |
| Total Assets | 2,071.14 | 1,810.45 | 1,477.66 |
Reading this honestly:
- Revenue grew at about 19.3% CAGR over FY24–FY26, and EBITDA grew much faster (about 47.4% CAGR) as the newer hospitals filled up and operating leverage kicked in.
- The company lost money in FY24 and FY25, and only posted a net profit (₹43.83 crore) in FY26 — its first profitable year shown.
- Borrowings (excluding lease liabilities) of around ₹854 crore against equity of about ₹395 crore means leverage is meaningful; part of the fresh issue money is going to reduce this debt.
- Trade receivables rose sharply from ₹156 crore (FY24) to ₹350 crore (FY26) — worth watching, as it can reflect slower collections, partly linked to government-scheme dues.
Key Operating Metrics
| Metric | FY26 | FY25 | FY24 |
| Operational Beds | 1,502 | 1,465 | 1,332 |
| Bed Occupancy Rate | 61.75% | 50.78% | 52.46% |
| ARPOB (₹ per bed/day) | 47,398 | 48,089 | 44,306 |
| Occupied Bed Days | 338,321 | 268,927 | 254,716 |
| Avg. Length of Stay (days) | 2.93 | 2.89 | 3.14 |
The sharp improvement in bed occupancy (50.78% to 61.75%) is the main driver behind the FY26 turnaround — fuller hospitals at broadly similar revenue-per-bed lifted profitability.
Where the IPO Money Goes (Objects of the Offer)
Only the fresh issue (~₹500 crore) reaches the company. The OFS portion (~₹1,300 crore) goes to selling shareholders, not the company. The fresh-issue proceeds are earmarked for:
- ₹320.9 crore (₹3,209 million) — prepayment/repayment of certain company borrowings.
- Investment in subsidiary PMHPL (which runs the Srinagar hospital) to repay/prepay its borrowings.
- General corporate purposes (capped at 25% of gross fresh-issue proceeds).
So a large share of fresh money is for debt reduction rather than building new capacity — sensible for cleaning the balance sheet, but it means limited direct expansion funding from the IPO itself.
Shareholding Pattern (Pre-Offer)
| Shareholder | Holding |
| Dr. Dharminder Kumar Nagar (Promoter) | 72.80% |
| Commelina Ltd | 16.44% |
| 360 ONE Special Opportunities Fund – Series 12 | 5.10% |
| Axis New Opportunities AIF – Series II | 3.63% |
| 360 ONE Special Opportunities Fund – Series 13 | 1.27% |
The promoter holds a clear majority. In the OFS, the promoter is selling up to ₹300 crore worth, while investor Commelina Ltd is the largest seller at up to ₹800 crore, with several 360 ONE funds also trimming stakes — i.e., the IPO is partly an exit route for existing private investors.
Promoter & Management
The promoter and Managing Director, Dr. Dharminder Kumar Nagar, holds an MBBS from the University of Mysore, an M.Phil in hospital administration, and executive education from Harvard Business School. He has been with the company since 2003 and has over 22 years in healthcare; he has personally driven the commissioning of all the hospitals. The Chairman (Non-Executive), Saurabh Sood, is a chartered accountant with business-management experience. The senior clinical roster includes three Padma Shri awardees.
Industry Backdrop
The Indian healthcare delivery market is projected to grow at roughly 10–12% CAGR between FY25 and FY30, reaching about ₹11.2–12.2 trillion, helped by government schemes like PMJAY, rising non-communicable diseases and under-served northern and eastern regions where Paras is concentrated. The peer group includes Apollo Hospitals, Fortis, Max Healthcare, Medanta, KIMS, Narayana, Jupiter and others.
Future Goals
The company has a committed expansion pipeline:
- A 300-bed hospital in Gurugram, targeted by FY27.
- A 500-bed hospital in Ludhiana, targeted by FY28.
- Goal to grow total bed capacity from 2,211 to about 3,011 beds by March 2028.
- Improve occupancy at mature hospitals, refine the payor mix toward more private insurance, deepen high-end specialties, and invest in its cloud-based technology and digital systems.
Pros and Cons
| Pros (Strengths) | Cons (Risks) |
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Disclaimer
This article is for informational and educational purposes only and is based entirely on the company’s Draft Red Herring Prospectus dated June 4, 2026. It is not investment advice and does not constitute a recommendation to buy, sell, subscribe to, or avoid the securities of Paras Healthcare Limited. The DRHP is a draft and details such as price band, lot size and dates are not yet finalised. Investments in equity shares and IPOs carry risk, including the possible loss of the entire amount invested. Investors should read the full Red Herring Prospectus when available and consult a SEBI-registered investment adviser before making any investment decision. The author/publisher is not a SEBI-registered adviser.
