KRM Ayurveda Limited, an integrated Ayurvedic healthcare provider, is preparing to launch its Initial Public Offering from January 19-21, 2026. The company, established in 2019, operates a network of 6 hospitals and 5 clinics across multiple cities in India, combining traditional Ayurvedic treatments with modern healthcare delivery methods.

Business Operations and Infrastructure

The company provides comprehensive Ayurvedic healthcare services including Panchakarma therapies and specialized treatments for kidney disorders, liver cirrhosis, diabetes, fatty liver, and arthritis. KRM Ayurveda operates a GMP-certified manufacturing unit for processing and formulating Ayurvedic therapeutic products, alongside telemedicine consulting services and wellness packages.

The company's medical infrastructure includes 31 qualified BAMS physicians from CCIM-recognized institutions and 59 certified Ayurvedic therapists trained in traditional therapies. The registered office is located at A-16 G T Karnal road Industrial Area, North West, Delhi, Delhi, India-110033.

Financial Performance Analysis

KRM Ayurveda's financial performance shows a recovery trajectory in recent years. The company experienced revenue volatility, with operations revenue declining from ₹89.29 crores in FY2023 to ₹67.16 crores in FY2024, before recovering to ₹76.55 crores in FY2025.

The company's balance sheet shows significant growth, with total assets expanding from ₹39.48 crores in FY2023 to ₹66.79 crores in FY2025. Total equity more than doubled from ₹8.37 crores to ₹23.88 crores during the same period.

IPO Proceeds Utilization

The company has outlined specific plans for utilizing the IPO proceeds across multiple strategic initiatives:

The largest allocation of ₹22.90 crores for working capital reflects the company's expansion plans, while ₹13.67 crores designated for telemedicine facilities indicates focus on digital healthcare delivery.

Key Strengths and Competitive Position

KRM Ayurveda's competitive advantages include its qualified medical team, GMP-certified manufacturing capabilities, and integrated healthcare approach. The company maintains long-standing customer relationships with repeat institutional clients, providing revenue visibility. Its diverse product portfolio across multiple segments reduces dependence on single product lines.

The management team, led by Managing Director Puneet Dhawan along with Directors Sanchit Hans and Tanya Dhawan, brings industry experience to operations. The company's operational efficiency focus has contributed to improved turnaround times and margin stability.

Risk Factors and Challenges

Several material risks require investor attention. The company faces high employee attrition rates of 78.47% in FY2024, though this improved to 31.75% in FY2025. Geographic revenue concentration presents another concern, with Delhi and Haryana contributing 68.44% of total revenue as of September 2025.

The business operates as working capital intensive, with requirements increasing from ₹444.48 lakhs in FY2023 to ₹3,308.98 lakhs in September 2025. Additionally, the company operates from premises not owned by it, creating potential relocation risks.

Cash Flow and Operational Metrics

Cash flow analysis reveals challenges in operational cash generation, with negative operating cash flows of ₹0.89 crores in FY2024 and ₹0.03 crores in FY2025. The company also shows dependence on insurance providers including CGHS and ECHS, with payment cycles of 150-180 days creating working capital pressures.

Despite these challenges, the company demonstrated strong profit recovery in FY2025 with PAT growth of 254.84% compared to FY2024, and asset growth of 52.08% during the same period. The healthcare network expansion and telemedicine capabilities position the company for potential growth in the expanding Ayurvedic healthcare market.

KRM Ayurveda Limited, an integrated Ayurvedic healthcare services provider, has announced its Initial Public Offering worth ₹56.43 crores. The company, established in 2019, operates a comprehensive network of healthcare facilities specializing in traditional Ayurvedic treatments combined with modern healthcare delivery systems.

IPO Structure and Timeline

The public offering comprises entirely of fresh issue worth ₹56.43 crores with no offer for sale component. The subscription window opens on January 19, 2026, and closes on January 21, 2026.

Business Operations and Network

KRM Ayurveda operates an integrated healthcare network comprising 6 hospitals and 5 clinics across multiple cities in India. The company focuses on Ayurvedic treatments for kidney disorders, liver cirrhosis, diabetes, fatty liver, and arthritis. Beyond healthcare services, the company operates a GMP-certified manufacturing unit for processing, formulation, and marketing of Ayurvedic therapeutic and wellness products.

The company's service portfolio includes in-patient and out-patient care, Panchakarma therapies, specialized clinics, wellness packages, and medicinal sales. Additionally, KRM Ayurveda provides telemedicine consulting services with global reach, positioning itself in the expanding digital healthcare market.

Financial Performance Analysis

The company demonstrated strong financial recovery in FY25 after experiencing a decline in FY24. Revenue from operations reached ₹76.55 crores in FY25, representing a 13.97% increase from ₹67.16 crores in FY24.

The company's profitability showed remarkable improvement with profit after tax surging 254.84% to ₹12.10 crores in FY25 from ₹3.41 crores in FY24. The PAT margin expanded significantly to 15.73% in FY25 compared to 5.05% in FY24.

Fund Utilization Strategy

The net proceeds from the IPO will be allocated across multiple strategic initiatives to support the company's expansion and operational efficiency.

The largest allocation of ₹22.90 crores is designated for working capital requirements to support business growth and hospital operations. The company plans to invest ₹13.67 crores in constructing and developing telemedicine operational facilities, including a new multi-storey building and modern infrastructure.

Operational Strengths and Capabilities

KRM Ayurveda's operational foundation includes 31 qualified Ayurvedic physicians holding BAMS degrees from CCIM-recognized institutions and 59 certified Ayurvedic therapists trained in traditional therapies. The company's GMP-certified manufacturing unit ensures compliance with Schedule T of the Drugs and Cosmetics Act, 1940, maintaining stringent hygiene and quality standards with Ministry of AYUSH and CDSCO compliance.

Risk Considerations

The company faces several operational and financial challenges that potential investors should consider. Employee attrition rates reached 78.47% in FY24, though improving to 31.75% in FY25. Geographic revenue concentration remains significant, with Delhi and Haryana contributing substantial portions of total revenue across recent years.

Working capital requirements have increased substantially from ₹4.44 crores in FY23 to ₹33.09 crores as of September 2025. The company also experiences dependence on insurance providers with payment cycles of 150-180 days, and operates from premises not entirely owned by the company, creating potential relocation risks.

KRM Ayurveda's IPO represents an opportunity to participate in the growing Ayurvedic healthcare sector through a company with an integrated business model combining traditional treatments with modern healthcare delivery systems.