KRM Ayurveda Limited IPO: ₹56.93 Crore Issue for Ayurvedic Healthcare Network Expansion
KRM Ayurveda Limited is launching a ₹56.93 crore IPO from January 19-21, 2026, to fund expansion of its Ayurvedic healthcare network comprising 6 hospitals and 5 clinics. The company shows improving profitability with PAT margins reaching 16.73% in Q2 FY2026, supported by 31 qualified physicians and 59 certified therapists. IPO proceeds will primarily fund working capital (₹22.90 cr), telemedicine facilities (₹13.67 cr), and loan repayment (₹12.50 cr). While the growing Ayurvedic healthcare market presents opportunities, investors should consider risks including high employee attrition rates, geographic revenue concentration, and working capital intensive operations.
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KRM Ayurveda Limited, an integrated Ayurvedic healthcare company established in 2019, is set to launch its initial public offering (IPO) worth ₹56.93 crores. The company operates a network of 6 hospitals and 5 clinics across multiple cities in India, specializing in Ayurvedic treatments for chronic conditions including kidney disorders, liver cirrhosis, diabetes, fatty liver, and arthritis. The IPO opens on January 19, 2026, and closes on January 21, 2026.
Business Operations and Infrastructure
KRM Ayurveda operates an integrated healthcare network providing comprehensive Ayurvedic services. The company offers in-patient and out-patient care, Panchakarma therapies, specialized treatment clinics, wellness packages, and medicinal product sales. Additionally, it provides telemedicine consulting services with global reach and engages in processing, formulation, and marketing of Ayurvedic therapeutic products through its GMP-certified manufacturing unit.
The company's medical team comprises 31 qualified BAMS physicians from CCIM-recognized institutions and 59 certified Ayurvedic therapists trained in Panchakarma and specialized treatments. This skilled workforce ensures treatment authenticity and adherence to quality standards. The company's registered office is located at A-16 G T Karnal road Industrial Area, North West, Delhi.
Financial Performance Analysis
KRM Ayurveda's financial performance shows mixed trends with improving profitability in recent periods. The company's revenue and profitability metrics demonstrate recovery after a challenging FY2024.
| Period: | Revenue (₹ Cr) | PAT (₹ Cr) | PAT Margin (%) |
|---|---|---|---|
| FY2023: | 89.38 | 7.60 | 8.50% |
| FY2024: | 67.57 | 3.41 | 5.05% |
| FY2025: | 76.95 | 12.10 | 15.72% |
| Q2 FY2026: | 48.65 | 8.14 | 16.73% |
The company experienced a revenue decline of 24.79% in FY2024, followed by a recovery of 13.88% growth in FY2025. Notably, profitability margins have shown significant improvement, with PAT margins increasing from 5.05% in FY2024 to 15.72% in FY2025 and further to 16.73% in Q2 FY2026.
The balance sheet reflects substantial growth, with total assets expanding from ₹39.48 crores in FY2023 to ₹78.12 crores in Q2 FY2026. Total equity increased significantly from ₹8.37 crores in FY2023 to ₹36.13 crores in Q2 FY2026, representing growth of 185.31%.
IPO Fund Utilization Strategy
The company plans to deploy the ₹56.93 crore IPO proceeds across strategic growth initiatives designed to strengthen its market position and operational capabilities.
| Purpose: | Amount (₹ Cr) | Percentage |
|---|---|---|
| Working Capital Requirements: | 22.90 | 40.2% |
| Telemedicine Facilities Construction: | 13.67 | 24.0% |
| Loan Repayment: | 12.50 | 22.0% |
| Human Resources Expansion: | 5.44 | 9.6% |
| CRM Software & Hardware: | 1.42 | 2.5% |
| General Corporate Purposes: | Balance | 1.7% |
The largest allocation of ₹22.90 crores for working capital requirements reflects the company's growth ambitions and operational expansion needs. The telemedicine facilities construction will involve developing a multi-storey building on freehold land to create a unified corporate office environment with modern facilities.
Key Strengths and Competitive Advantages
KRM Ayurveda's competitive positioning is built on several foundational strengths. The company maintains a skilled medical team of qualified professionals, ensuring treatment authenticity and quality standards. Its centralized GMP-certified production unit operates under stringent quality control protocols with batch traceability, ensuring purity and efficacy of Ayurvedic medicines.
The company's integrated healthcare approach combines traditional Ayurveda with modern delivery methods, addressing the growing demand for alternative healthcare solutions. Its specialized focus on chronic conditions positions it well in a market with increasing patient demand for holistic treatment approaches.
Risk Factors and Challenges
Despite its strengths, KRM Ayurveda faces several operational and financial challenges that investors should consider. The company has experienced high employee attrition rates of 78.47% in FY2024 and 31.75% in FY2025, leading to increased recruitment costs and potential loss of institutional knowledge.
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. This heavy dependence on two flagship hospitals creates significant regional exposure.
| Risk Factor: | Impact |
|---|---|
| Working Capital Requirements: | Increased from ₹4.44 cr (FY2023) to ₹33.09 cr (Sep 2025) |
| Operating Cash Flow: | Negative ₹0.03 cr (FY2025), ₹0.89 cr (FY2024) |
| Supplier Concentration: | Top 10 suppliers contribute 73.64%-89.53% of purchases |
| Insurance Revenue Dependency: | 150-180 day payment cycles with settlement delays |
The company operates from premises not owned by it, including its registered office and Delhi hospital owned by Promoter/Promoter Group, creating potential relocation risks. Additionally, the business model is working capital intensive, with requirements projected to reach ₹68.22 crores in FY2027.
Investment Outlook
KRM Ayurveda presents a mixed investment proposition with both growth opportunities and operational challenges. The growing acceptance of Ayurvedic healthcare and the company's expanding network provide long-term growth potential. The improving profitability margins and comprehensive service offering demonstrate operational progress.
However, investors should carefully evaluate the company's ability to address high attrition rates, improve cash flow generation, and reduce geographic concentration. The working capital intensive nature of the business and recent negative operating cash flows require attention. The investment appears suitable for long-term investors comfortable with the traditional healthcare sector's growth potential and willing to accept operational execution risks.
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