KRM Ayurveda Limited Announces ₹56.93 Crore IPO for Healthcare Expansion
KRM Ayurveda Limited announces ₹56.93 crore IPO opening January 19, 2026, for healthcare expansion. The company operates 6 hospitals and 5 clinics specializing in Ayurvedic treatments, with proceeds funding telemedicine facilities, working capital, and loan repayment. Despite strong FY2025 profitability recovery with 15.72% PAT margins, the company faces operational challenges including high employee attrition and negative operating cash flows.
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KRM Ayurveda Limited, a specialized Ayurvedic healthcare company, has announced its initial public offering of ₹56.93 crores, scheduled to open on January 19, 2026, and close on January 21, 2026. The company, established in 2019, operates an integrated healthcare network comprising 6 hospitals and 5 clinics across multiple Indian cities, focusing on traditional Ayurvedic treatments combined with modern healthcare delivery.
Business Operations and Network
KRM Ayurveda operates a comprehensive healthcare ecosystem specializing in Ayurvedic treatments for kidney disorders, liver cirrhosis, diabetes, fatty liver, and arthritis. The company's infrastructure includes a GMP-certified manufacturing unit for processing, formulation, and marketing of Ayurvedic therapeutic products. The healthcare network provides in-patient and out-patient services, Panchakarma therapies, specialized clinics, wellness packages, and telemedicine consulting services with global reach.
The company's medical team comprises 31 qualified Ayurvedic physicians with BAMS qualifications from CCIM-recognized institutions and 59 certified Ayurvedic therapists trained in Panchakarma and specialized treatments. The registered office is located at A-16 G T Karnal road Industrial Area, North West, Delhi, with operations managed by Managing Director Puneet Dhawan and Chief Executive Officer Sanchit Hans.
IPO Structure and Fund Utilization
The fresh issue of ₹56.93 crores will be allocated across multiple strategic initiatives to support the company's expansion plans:
| Purpose | Amount (₹ Cr) | Percentage |
|---|---|---|
| Working Capital Requirements | 22.90 | 40.22% |
| Capital Expenditure for Telemedicine Facilities | 13.67 | 24.01% |
| Repayment/Prepayment of Loan | 12.50 | 21.95% |
| Human Resources | 5.44 | 9.55% |
| CRM Software and Hardware Infrastructure | 1.42 | 2.49% |
| General Corporate Purposes | Balance | 1.78% |
The largest allocation toward working capital requirements reflects the company's expansion strategy and operational needs, while the significant investment in telemedicine facilities positions the company for digital healthcare growth.
Financial Performance Analysis
KRM Ayurveda's financial performance shows mixed trends with notable recovery in FY2025. The company experienced revenue volatility, declining from ₹89.29 crores in FY2023 to ₹67.16 crores in FY2024, before recovering to ₹76.55 crores in FY2025.
| Year | Revenue (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) | Growth Rate |
|---|---|---|---|---|
| FY2023 | 89.29 | 7.60 | 8.51% | - |
| FY2024 | 67.16 | 3.41 | 5.05% | -24.79% |
| FY2025 | 76.55 | 12.10 | 15.72% | 13.95% |
The company demonstrated strong profitability recovery in FY2025, with PAT margins improving significantly to 15.72% from 5.05% in FY2024. Total assets grew from ₹39.48 crores in FY2023 to ₹66.79 crores in FY2025, while equity increased substantially from ₹8.37 crores to ₹23.88 crores during the same period.
Operational Strengths and Challenges
The company's competitive advantages include its GMP-certified manufacturing facility ensuring medicine purity and efficacy with stringent quality control protocols. The integrated healthcare model combining hospitals, clinics, manufacturing, and telemedicine services provides comprehensive patient care and multiple revenue streams.
However, KRM Ayurveda faces several operational challenges. The company experienced significant employee attrition rates of 78.47% in FY2024 and 31.75% in FY2025, resulting in increased recruitment costs and potential service delivery impacts. Geographic revenue concentration presents another risk, with Delhi and Haryana contributing 68.44%, 56.39%, 50.93% and 60.86% of total revenue for September 2025, FY2025, FY2024, and FY2023 respectively.
Cash Flow and Working Capital Requirements
The company's cash flow performance shows operational challenges, with negative operating cash flows of ₹0.89 crores in FY2024 and ₹0.03 crores in FY2025. Working capital requirements have increased substantially from ₹4.44 crores in FY2023 to ₹33.09 crores in September 2025, with projections reaching ₹68.22 crores in FY2027.
Additional operational risks include dependency on premises not owned by the company and significant revenue from third-party insurance providers (CGHS and ECHS) with extended payment cycles of 150-180 days. The company also operates with a debt-to-equity ratio of 1.80x as of FY2025, indicating moderate leverage levels.
Market Position and Growth Strategy
KRM Ayurveda operates in the growing Ayurvedic healthcare market in India, leveraging traditional medicine expertise with modern healthcare delivery systems. The company's telemedicine capabilities enable market expansion beyond geographical boundaries, while its specialized treatment focus addresses high-demand therapeutic areas including kidney disorders, liver cirrhosis, diabetes, and arthritis.
The IPO represents the company's strategy to strengthen its financial position, expand telemedicine capabilities, and support working capital requirements for continued growth in the integrated Ayurvedic healthcare sector.
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