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, incorporated in 2000, operates 16 diagnostic centres across 7 states and 14 cities, offering radiology, clinical laboratory, and nuclear medicine services. This IPO marks a significant step for the firm as it seeks to expand its network through capital expenditure and strategic acquisitions.

Company Overview

Pramodini Medicare provides diagnostic services to public hospitals, private hospitals, Public Sector Undertakings (PSUs), and medical colleges across tier I, II, and III cities in India. The company leverages four distinct business models to serve its diverse client base:

• Public Private Partnership (PPP): 7 centres operating under government arrangements.
• Private Private Partnership: 3 centres partnered with private healthcare entities.
• Strategic Partnership with PSUs: 4 centres tied up with Public Sector Undertakings.
• Private Centres: 2 independently operated diagnostic centres.

The company’s infrastructure includes 8 CT machines, 7 MRI machines, 20 X-ray machines, and 1 PET CT unit. Its revenue is diversified across B2G (61.46%), B2B (20.82%), and B2C (17.72%) segments, with radiology services contributing 97.05% of FY2026 revenue.

Offer Details

The IPO is structured as a fresh issue with no Offer for Sale (OFS). The price band has not been disclosed in the current DRHP data.

Objects of the Issue

The proceeds from the ₹45.15 crore fresh issue will be utilized for:

1. Funding Capital Expenditure: Purchase and installation of medical equipment at existing centres in Hubli, Manjeri, and Vijayawada, and establishment of a new diagnostic centre in Bangalore.
2. General Corporate Purposes: Evaluating inorganic growth opportunities through mergers and acquisitions, expanding into new geographies, and meeting general corporate expenses.

IPO Timeline

Financial Highlights

Pramodini Medicare has demonstrated strong revenue and profit growth over the last three fiscal years. Revenue from operations jumped by 62.89% YoY in FY2026, while PAT grew by 57.57% YoY.

Key profitability metrics for FY2026 include an EBITDA margin of 49.61% and a PAT margin on operations revenue of 27.90%. The Return on Equity (ROE) stood at 32.70% in FY2026.

Risk Factors

Investors should note several material risks disclosed in the DRHP:

1. Dependence on Government PPP Arrangements: 54.19% of revenue is derived from PPP arrangements with government authorities. Non-renewal or termination of MOUs could materially impact operations.
2. Heavy Concentration on Radiology Services: Radiology services account for 97.05% of FY2025-26 revenue, creating significant exposure to capital-intensive equipment requirements and regulatory compliance risks in this single domain.
3. Geographic Revenue Concentration: 61.90% of FY2025-26 revenue is derived from Andhra Pradesh, exposing the company to regional economic or political risks.
4. Customer Concentration: The top customer contributed 44.17% of FY2025-26 revenue, while the top 10 customers accounted for 64.83% of total revenue.
5. High Dependence on Government Revenue (B2G): B2G revenue constitutes 61.46% of total revenue, making the company vulnerable to changes in government policies and budget allocations.

Valuation & Peer Comparison

As the price band is not yet disclosed, formal valuation multiples such as P/E and P/B cannot be calculated. However, the company’s high EBITDA margin of 49.61% and strong ROE of 32.70% suggest a quality business profile. Investors may compare these metrics against listed peers like Krsnaa Diagnostics, which also operates a PPP-heavy model, once pricing details are available.

Bottom Line

Pramodini Medicare presents a high-growth diagnostic business with strong profitability margins and a diversified operational model across PPP, private partnerships, and direct centres. The filing of the DRHP indicates the company’s readiness to raise capital for expansion, particularly in Bangalore and existing hubs. However, investors must carefully weigh the extreme concentration risks in radiology services, geographic reliance on Andhra Pradesh, and dependency on government contracts before making investment decisions. The final verdict will depend heavily on the price band disclosure and valuation relative to peers.

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.

Objects of the Issue:

1. Capital Expenditure: Purchase and installation of medical equipment in Hubli, Manjeri, and Vijayawada, and establishment of a new centre in Bangalore.
2. 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.

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.