Credent Connect N Care IPO announced: ₹72.80 Crore issue, what you need to know
Credent Connect N Care files DRHP for SME IPO with proceeds earmarked ~₹72.80 Crore+. Revenue grew to ₹214.16 Cr in FY2026. Key risks include 81.76% top customer concentration and negative operating cash flow. IPO opens 13-Aug-2026.
*this image is generated using AI for illustrative purposes only.
Credent Connect N Care Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The New Delhi-based company specializes in integrated healthcare logistics, workforce solutions, and technology-enabled support services. While the exact issue size and price band are yet to be disclosed, the proceeds are earmarked for approximately ₹72.80 Crore+ for identified purposes, including working capital and subsidiary investments.
Company Overview
Credent Connect N Care operates in the niche segment of healthcare logistics and workforce solutions. Founded in 2015, the company has expanded to serve approximately 280 domestic customers across multiple states, including Maharashtra, Uttar Pradesh, Delhi, Karnataka, Haryana, Telangana, and Rajasthan. Its service portfolio includes home sample collection, operations & supply chain services, laboratory staffing, and specialized inter-state/intra-state logistics with cold chain capabilities.
The company employs a workforce of 6,338 individuals, including 2,589 riders as of June 30, 2026. Key management includes Tarun Sharma as Managing Director and Karan Sharma as Chief Financial Officer.
Offer Details
The IPO is structured as a Fresh Issue with no Offer for Sale (OFS). The key dates for the issue are as follows:
| Event | Date |
|---|---|
| IPO Opening Date | 13-Aug-2026 |
| IPO Closing Date | 17-Aug-2026 |
| Allotment Date | 18-Aug-2026 |
| Listing Date | 20-Aug-2026 |
Objects of the Issue: The identified proceeds of ₹72.80 Crore will be utilized for:
- ₹26.80 Crore for working capital requirements in wholly owned subsidiary Credent Healthcare Pvt. Ltd.
- ₹37.00 Crore to meet general Working Capital Requirements.
- ₹3.00 Crore for capital expenditure (sonography & digital X-ray machines) in the subsidiary.
- ₹6.00 Crore for repayment/prepayment of borrowings.
Financial Highlights
The company has reported significant growth in revenue and profitability. Note that FY2024 and FY2025 figures are on a standalone basis, while FY2026 figures are consolidated.
| Metric | FY2024 (Standalone) | FY2025 (Standalone) | FY2026 (Consolidated) |
|---|---|---|---|
| Revenue from Operations (₹ Cr) | 75.73 | 77.94 | 214.16 |
| Total Profit / PAT (₹ Cr) | 2.66 | 2.25 | 18.45 |
| PAT Margin (%) | 3.50% | 2.88% | 8.61% |
Revenue from operations surged from ₹75.73 Crore in FY2024 to ₹214.16 Crore in FY2026. Total profit grew from ₹2.66 Crore to ₹18.45 Crore over the same period. However, operating cash flow was negative at ₹-6.62 Crore in FY2026.
Risk Factors
Investors should consider the following material risks disclosed in the DRHP:
- High Customer Concentration: Top 10 customers accounted for 81.76% of revenue in FY2026.
- Working Capital Intensity: Trade receivables stood at ₹5,882.73 lakhs (₹58.83 Crore) as of March 31, 2026.
- Negative Operating Cash Flow: Reported at ₹-6.62 Crore in FY2026 despite profitability.
- Workforce Management: High attrition rate of 19.16% in FY2026 with a large dispersed workforce.
- Subsidiary Losses: Subsidiary Credent Team Private Limited has shown negative net worth.
Valuation & Peer Comparison
As the price band and issue size are not yet disclosed, formal valuation multiples such as P/E cannot be calculated. Investors should wait for the final prospectus to assess valuation against peers in the healthcare logistics sector.
Bottom Line
Credent Connect N Care presents a growth story in the healthcare logistics space with strong revenue expansion. However, high customer concentration and negative operating cash flows are key concerns. Investors should monitor the final price band and subscription levels before making investment decisions.
How will Credent Connect N Care plan to mitigate the risk of high customer concentration, where the top 10 clients account for over 81% of revenue?
What specific strategies will management employ to convert reported profitability into positive operating cash flow, given the negative ₹6.62 Crore operating cash flow in FY2026?
Given the 19.16% workforce attrition rate, how does the company intend to stabilize its large dispersed workforce and control associated recruitment and training costs post-IPO?
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