NewsIPOKRM Ayurveda Limited IPO Opens January 19: Ayurvedic Healthcare Network Seeks Growth CapitalKRM Ayurveda Limited IPO Opens January 19: Ayurvedic Healthcare Network Seeks Growth Capital
KRM Ayurveda Limited launches its IPO from January 19-21, 2026, operating 6 hospitals and 5 clinics with specialized Ayurvedic treatments. The company showed financial recovery in FY2025 with 13.89% revenue growth and 15.72% net margin, planning to use proceeds for telemedicine facilities (₹13.67 crores) and working capital (₹22.90 crores). Key challenges include high employee attrition rates, geographic revenue concentration in Delhi-Haryana, and negative operating cash flows requiring investor consideration.
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KRM Ayurveda Limited, an integrated Ayurvedic healthcare provider, is set to launch its initial public offering from January 19-21, 2026. Established in 2019, the company operates a network of 6 hospitals and 5 clinics across multiple Indian cities, focusing on specialized Ayurvedic treatments for chronic conditions including kidney disorders, liver cirrhosis, diabetes, fatty liver, and arthritis.
Business Operations and Infrastructure
The company has built a comprehensive healthcare ecosystem combining traditional Ayurvedic medicine with modern delivery systems. KRM Ayurveda operates a GMP-certified manufacturing unit for processing, formulation, and marketing of Ayurvedic therapeutic and wellness products. 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.
The healthcare network provides integrated services including in-patient and out-patient care, Panchakarma therapies, specialized clinics, wellness packages, and medicinal sales. Additionally, the company offers telemedicine consulting services globally, serving patients through both direct pay and third-party insurance providers including CGHS and ECHS.
Financial Performance Analysis
KRM Ayurveda's financial performance shows a recovery trajectory in recent years. The company experienced revenue volatility with a decline in FY2024 followed by growth recovery in FY2025.
| Financial Metric | FY2023 | FY2024 | FY2025 | YoY Change (FY2025) |
|---|---|---|---|---|
| Revenue from Operations | ₹89.29 cr | ₹67.16 cr | ₹76.55 cr | +13.89% |
| Net Profit | ₹7.60 cr | ₹3.41 cr | ₹12.10 cr | +254.84% |
| Net Margin | 8.50% | 5.05% | 15.72% | +10.67 pp |
| Total Assets | ₹39.48 cr | ₹43.91 cr | ₹66.79 cr | +52.11% |
The company's profitability metrics improved significantly in FY2025, with net profit increasing to ₹12.10 crores and net margin expanding to 15.72%. Total assets grew substantially to ₹66.79 crores, while the debt-to-equity ratio improved from 2.14 in FY2023 to 0.81 in FY2025.
IPO Proceeds Utilization
The company has outlined specific plans for utilizing the IPO proceeds across multiple growth initiatives and operational improvements.
| Use of Proceeds | Amount (₹ Crores) | Purpose |
|---|---|---|
| Telemedicine Facilities | 13.67 | Multi-storey building construction for corporate office and telemedicine operations |
| Working Capital | 22.90 | Funding business growth and operational expansion |
| Loan Repayment | 12.50 | Reduce outstanding indebtedness and interest costs |
| Human Resources | 5.44 | Hiring qualified personnel across hospitals and clinics |
| CRM Infrastructure | 1.42 | Technology enhancement for customer engagement |
The largest allocation of ₹22.90 crores toward working capital reflects the company's growth requirements, as working capital needs increased from ₹4.44 crores in FY2023 to ₹33.09 crores in September 2025.
Key Risk Factors
Despite growth potential, KRM Ayurveda faces several operational and financial challenges that investors should consider:
- High Employee Attrition: The company experienced significant attrition rates of 78.47% in FY2024 and 31.75% in FY2025, creating recruitment costs and service delivery challenges
- Geographic Concentration: Delhi and Haryana contributed 68.44% of revenue in September 2025, creating regional dependency risks
- Cash Flow Concerns: The company reported negative operating cash flows of ₹0.03 crores in FY2025 and ₹0.89 crores in FY2024
- Supplier Concentration: Top 10 suppliers contributed 89.53% of total purchases in recent periods
- Insurance Payment Cycles: Revenue dependency on third-party insurance providers with 150-180 day payment cycles
Investment Outlook
KRM Ayurveda operates in the expanding Ayurvedic healthcare sector, combining traditional medicine with modern healthcare delivery systems. The company's integrated business model includes manufacturing capabilities, qualified medical staff, and telemedicine expansion potential. However, operational challenges including cash flow management, employee retention, and geographic diversification remain key areas requiring attention.
The IPO represents an opportunity for investors seeking exposure to the alternative healthcare and Ayurvedic sector, though the investment carries inherent risks associated with the company's operational scale and market dynamics. Potential investors should carefully evaluate the company's financial recovery trajectory against its operational challenges when making investment decisions.
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