KRM Ayurveda Limited IPO: ₹56.93 Crore Issue Opens January 19, 2026
KRM Ayurveda Limited is launching a ₹56.93 crore IPO from January 19-21, 2026, operating 6 hospitals and 5 clinics specializing in Ayurvedic treatments. The company showed revenue recovery to ₹76.55 crores in FY2025 after a strategic repositioning, with improved PAT margin of 15.72%. Key strengths include 31 qualified BAMS physicians and GMP-certified manufacturing, while challenges include high employee attrition and negative operating cash flows requiring investor attention.
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KRM Ayurveda Limited is preparing to launch its initial public offering worth ₹56.93 crores, scheduled to open on January 19, 2026, and close on January 21, 2026. The company, established in 2019, operates an integrated Ayurvedic healthcare network comprising 6 hospitals and 5 clinics across multiple cities in India, specializing in traditional treatments for chronic conditions including kidney disorders, liver cirrhosis, diabetes, fatty liver, and arthritis.
Company Operations and Business Model
KRM Ayurveda operates a comprehensive healthcare ecosystem that includes in-patient and out-patient care, Panchakarma therapies, specialized treatment clinics, wellness packages, and medicinal product sales. The company also provides telemedicine consulting services with global reach and operates a GMP-certified manufacturing unit for processing, formulation, and marketing of Ayurvedic therapeutic products.
The company's medical team consists of 31 qualified BAMS physicians from CCIM-recognized institutions and 59 certified therapists trained in traditional therapies. The manufacturing facility is certified under Good Manufacturing Practices as per Schedule T of the Drugs and Cosmetics Act, 1940, ensuring compliance with regulatory standards set by the Ministry of AYUSH and CDSCO.
Financial Performance Analysis
The company's financial performance shows mixed trends over the past three years. Revenue from operations declined from ₹89.29 crores in FY2023 to ₹67.16 crores in FY2024, representing a 24.79% decrease attributed to strategic repositioning toward hospital services. However, FY2025 showed recovery with revenue reaching ₹76.55 crores, marking a 13.96% year-over-year growth.
| Financial Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
| Revenue from Operations | ₹89.29 cr | ₹67.16 cr | ₹76.55 cr |
| Profit After Tax | ₹7.60 cr | ₹3.41 cr | ₹12.10 cr |
| PAT Margin | 8.51% | 5.05% | 15.72% |
| Total Assets | ₹39.48 cr | ₹43.91 cr | ₹66.79 cr |
Profitability metrics demonstrate significant improvement in FY2025, with profit after tax reaching ₹12.10 crores and PAT margin expanding to 15.72% from 5.05% in the previous year. Total assets grew substantially by 52.12% from FY2024 to FY2025, reaching ₹66.79 crores.
IPO Proceeds Utilization
The ₹56.93 crore IPO proceeds will be allocated across six key areas to support the company's growth initiatives and operational requirements.
| Purpose | Amount | Percentage |
|---|---|---|
| Working Capital Requirements | ₹22.90 cr | 40.22% |
| Construction of Telemedicine Facilities | ₹13.67 cr | 24.01% |
| Repayment/Prepayment of Loans | ₹12.50 cr | 21.95% |
| Human Resources | ₹5.44 cr | 9.55% |
| CRM Software and Hardware | ₹1.42 cr | 2.49% |
| General Corporate Purposes | Balance | 1.78% |
The largest allocation of 40.22% toward working capital requirements reflects the company's capital-intensive business model, with working capital needs increasing from ₹4.44 crores in FY2023 to ₹33.09 crores in September 2025.
Key Strengths and Risk Factors
KRM Ayurveda's competitive advantages include its qualified medical team, GMP-certified manufacturing capabilities, established infrastructure, and diversified product portfolio. The company has built long-term relationships with repeat institutional and corporate clients, providing revenue visibility and operational stability.
However, several risk factors require investor attention. The company experienced high employee attrition of 78.47% in FY2024, though this improved to 31.75% in FY2025. Geographic concentration presents another concern, with Delhi and Haryana contributing 68.44% of revenue in September 2025. Additionally, the company reported negative operating cash flows of ₹0.03 crores in FY2025 and ₹0.89 crores in FY2024.
Investment Considerations
The company operates in the growing Ayurvedic healthcare segment, leveraging India's traditional medicine heritage with modern healthcare delivery systems. Key operational metrics include a current ratio of 1.66x and return on equity of 50.67% in FY2025, indicating strong profitability recovery.
Investors should consider the company's working capital intensive nature, with projected requirements reaching ₹68.22 crores by FY2027. The business model's dependency on third-party logistics and significant revenue from insurance providers with 150-180 day payment cycles also present operational challenges that require monitoring.
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