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.

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.

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.

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.