Nephrocare Health Services Limited has submitted its quarterly monitoring agency report for the period ended December 31, 2025, providing detailed insights into the utilization of proceeds from its recent Initial Public Offer. The healthcare service provider, which operates dialysis clinics across India, completed its IPO in December 2025 and is now reporting on the deployment of funds as mandated by regulatory requirements.

IPO Proceeds Overview

The company successfully raised gross proceeds of Rs 3,534.05 million through its IPO, which was conducted from December 10, 2025, to December 12, 2025. After deducting issue expenses of Rs 282.52 million, the net proceeds available for utilization amount to Rs 3,251.53 million.

The IPO proceeds were earmarked for three primary objectives: capital expenditure for opening new dialysis clinics (Rs 1,291.06 million), repayment of borrowings (Rs 1,359.99 million), and general corporate purposes (Rs 600.48 million).

Utilization During Q3FY26

During the quarter ended December 31, 2025, Nephrocare Health Services utilized Rs 904.99 million from the IPO proceeds, exclusively toward the repayment of working capital loans. This represents partial utilization of the Rs 1,359.99 million allocated for debt repayment purposes.

The monitoring agency report, prepared by Crisil Ratings Limited, confirms that all utilization was in accordance with the disclosures made in the offer document, with no deviations observed.

Deployment of Unutilized Funds

The company has deployed the unutilized proceeds totaling Rs 2,629.06 million in various fixed deposits with HSBC Bank and maintained a balance in its public issue account with Axis Bank. The fixed deposits carry an interest rate of 5.00% and have maturity dates of January 6, 2026, and January 7, 2026.

Regulatory Compliance and Monitoring

The monitoring agency report has been prepared in compliance with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 41 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Crisil Ratings Limited, serving as the monitoring agency, has confirmed that there are no material deviations from the stated objects of the issue.

The report indicates that no government or statutory approvals were required for the current utilization, and no favorable or unfavorable events have been identified that would materially affect the viability of the stated objects. The company's management has provided necessary undertakings and certifications, which have been peer-reviewed by independent chartered accountants.

Future Deployment Plans

While the company has not yet commenced utilization of funds allocated for capital expenditure toward new dialysis clinics or general corporate purposes, the monitoring report does not indicate any delays in implementation. The company had originally planned to establish 167 new dialysis clinics across India using the allocated capital expenditure funds, spanning fiscal years 2026, 2027, and 2028.

Nephrocare Health Services Limited (NephroPlus) delivered robust financial performance in Q3FY26, demonstrating strong growth momentum across its dialysis network operations. The company's latest investor presentation reveals significant expansion in both treatment volumes and revenue generation, reinforcing its position as Asia's largest dialysis service provider.

Strong Financial Performance in Q3FY26

The company reported impressive financial metrics for the quarter and nine-month period ended December 31, 2025:

For the nine-month period, NephroPlus achieved revenue of ₹733.2 crore compared to ₹536.6 crore in the previous year, representing a 36.6% increase. The adjusted EBITDA for 9MFY26 reached ₹175.4 crore, up 52.1% from ₹115.3 crore in the corresponding period.

Operational Excellence and Network Expansion

NephroPlus continues to expand its comprehensive dialysis network, currently serving 36,550 guests across multiple geographies. The company operates 470+ clinics in India spanning 290+ cities across 25 states, maintaining a 50%+ market share in the Indian organized dialysis market.

Key operational highlights include:

• Treatment volume growth of 17.7% YoY in Q3FY26
• International revenue contribution increased from 29.5% to 41.1%
• 77% of clinics located in Tier 2/3 cities in India
• Maintained asset-light model with ~52% clinics under revenue-sharing arrangements

International Market Presence

The company has successfully scaled its operations internationally, becoming the only Indian dialysis network to achieve significant global presence:

The international expansion has contributed to improved revenue per treatment metrics, with the favorable mix shift towards higher-priced international markets resulting in a 17% uplift in revenue per treatment.

Strategic Growth Drivers

NephroPlus benefits from multiple growth tailwinds in the dialysis industry, including the chronic and recurring nature of treatment requirements, significant under-penetration in target markets, and increasing government reimbursements. The company's asset-light model provides scalability advantages with lower capital requirements compared to other healthcare specialties.

The management highlighted the company's focus on clinical excellence, with protocols and advanced technology driving quality outcomes. NephroPlus maintains various accreditations and certifications, reinforcing its commitment to healthcare standards across its network.

Financial Strength and Margins

The company demonstrated strong margin expansion, with adjusted EBITDA margins improving by 190 basis points to 24.3% in Q3FY26. The scalable India platform continues to drive superior margins and return on capital employed (ROCE), which reached an annualized 24.7% for FY26.

NephroPlus maintains a diversified revenue model across captive clinics (272 units), public-private partnerships (180 units), and standalone facilities (67 units), providing operational flexibility and risk mitigation across different market segments.

Investor Conference Call Recording Available

Following the release of Q3FY26 results, Nephrocare Health Services Limited has made available the audio recording of its investor conference call held on February 11, 2026. The recording, which discusses the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, has been uploaded on the company's website at www.nephroplus.com . The company filed this disclosure with BSE Limited and National Stock Exchange of India Limited under Regulation 30 of SEBI listing requirements.