Pramodini Medicare IPO announced: ₹45.15 crore issue, what you need to know
Pramodini Medicare files DRHP for ₹45.15 Cr fresh issue. FY2026 revenue at ₹62.29 Cr with 49.61% EBITDA margin. Key risks include high government and geographic concentration. IPO opens 12-Aug-2026.
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Pramodini Medicare Limited, a technology-enabled diagnostic services provider headquartered in Vijayawada, Andhra Pradesh, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company plans to raise ₹45.15 Crores through a fresh issue to fund capital expenditure and general corporate purposes. The IPO is scheduled to open on 12-Aug-2026 and close on 14-Aug-2026.
Company Overview
Pramodini Medicare offers radiology, clinical laboratory, and nuclear medicine services to public hospitals, private hospitals, PSUs, and medical colleges across tier I, II, and III cities in India. Incorporated in 2000, the company operates 16 diagnostic centres across 7 states and 14 cities. Its revenue is derived from Public Private Partnership (PPP), Private Private Partnership, Strategic Partnership with PSUs, and Private Centres models.
Key operational strengths include:
- Diversified Models: Operates through PPP (7 centres), Private Private Partnership (3 centres), PSU Strategic Partnership (4 centres), and Private Centres (2 centres).
- Advanced Infrastructure: Deploys 8 CT machines, 7 MRI machines, 20 X-Ray machines, and 1 PET CT machine.
- Experienced Leadership: Led by Dr. Chalasani Kuldeep Kumar (MD) and Dr. Chalasani Kavitha (CEO), both with over two decades of experience in their respective fields.
Offer Details
The issue consists entirely of a fresh issue with no Offer for Sale (OFS). The identified use of proceeds for capital expenditure is ₹45.15 Crores. Additional proceeds may be used for general corporate purposes and inorganic acquisitions.
| Parameter | Details |
|---|---|
| Issue Type | Fresh Issue |
| Identified CapEx Use | ₹45.15 Crores |
| OFS Component | Nil |
| IPO Opening Date | 12-Aug-2026 |
| IPO Closing Date | 14-Aug-2026 |
| Allotment Date | 17-Aug-2026 |
| Listing Date | 19-Aug-2026 |
Objects of the Issue:
- Capital Expenditure: Purchase and installation of medical equipment in Hubli, Manjeri, and Vijayawada, and establishment of a new centre in Bangalore.
- General Corporate Purposes: Inorganic acquisitions and general corporate expenses.
Financial Highlights
Pramodini Medicare reported significant revenue growth, increasing from ₹35.23 Crores in FY2024 to ₹62.29 Crores in FY2026. The company maintains strong profitability margins.
| Metric | FY2024 (₹ Cr) | FY2025 (₹ Cr) | FY2026 (₹ Cr) |
|---|---|---|---|
| Revenue from Operations | 35.23 | 38.24 | 62.29 |
| Total Revenue | 35.79 | 38.55 | 63.38 |
| Profit Before Tax (PBT) | 10.08 | 15.75 | 23.30 |
| Total Profit (PAT) | 6.93 | 11.03 | 17.38 |
| PAT Margin | 19.36% | 28.62% | 27.43% |
| EBITDA Margin | NA | NA | 49.61% |
Note: PAT margin based on Total Revenue. Company-stated PAT margin on Revenue from Operations was 27.90% in FY2026.
Risk Factors
Investors should note the following material risks disclosed in the DRHP:
- Government Dependency: ~54.19% of revenue comes from PPP government arrangements, exposing the company to non-renewal or payment delays.
- Service Concentration: ~97.05% of FY2026 revenue is from radiology services, creating single-service dependency.
- Geographic Concentration: ~61.90% of revenue is derived from Andhra Pradesh.
- Customer Concentration: The top customer contributes 44.17% of total revenue, while top 10 customers contribute 64.83%.
Valuation & Peer Comparison
Specific price band, total issue size, and peer comparison multiples are not available in the current DRHP data. However, the company’s EBITDA margin of 49.61% in FY2026 is notably high compared to typical industry benchmarks. Investors must wait for the final RHP for detailed valuation metrics.
Bottom Line
Pramodini Medicare presents a growth story with strong revenue acceleration and high margins. However, investors must weigh these positives against significant concentration risks in geography, customer base, and service type. The IPO opens on 12-Aug-2026.
How might the company's heavy reliance on PPP government contracts (~54% of revenue) impact its cash flow stability and valuation multiples in a changing fiscal policy environment?
What specific inorganic acquisition targets or geographic regions is Pramodini Medicare likely to pursue to mitigate its current concentration risk, where 62% of revenue stems from Andhra Pradesh?
Given that 97% of revenue comes from radiology, how does management plan to diversify its service portfolio into clinical laboratory or nuclear medicine to reduce single-service dependency?
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