Highlights
| Issue Size – 18,935,819 shares | Issue Open/Close – 10 Dec / 12 Dec, 2025 |
| Price Band (Rs.) 438 – 460 | Issue Size (Rs.) ~ 8,710 mn |
| Face Value (Rs) 2 | Lot Size (shares) 32 |
Nephrocare Health Services Limited (NHSL), incorporated in 2010, offers comprehensive dialysis care through its network of clinics—from diagnosis to treatment and wellness programs, including haemodialysis, home and mobile dialysis, supported by pharmacy and is India’s largest dialysis service provider in terms of number of patients served, clinics, cities covered, and treatments performed.
NHSL is 4.4x the size of the next largest organized dialysis provider in India in terms of operating revenue in FY24. They are also the largest dialysis service provider in Asia in 2025 and the fifth largest globally based on the number of treatments performed in FY25. With 29,281 patients served and 2,885,450 treatments completed in India, which represented ~10 pct of total dialysis patients in India.
The company is the only Indian dialysis services provider that has scaled internationally with a global network of 519 clinics, with 51 clinics internationally across the Philippines, Uzbekistan and Nepal, as of Q2FY25. Also, they are the most widely distributed dialysis network in India, with an extensive pan-India network of clinics across 288 cities and 21 states and four union territories.
Out of the total proceeds from the offer, ~Rs. 1,291 mn would go towards capex, ~Rs. 1,360 mn would go towards debt repayment and ~Rs. 883 mn would go towards general corporate purposes. While ~Rs. 5,176 mn would go towards existing selling shareholders of the company.
Key Highlights
- The Indian Healthcare industry is segmented into Hospitals, Pharmaceuticals, Diagnostic services, Medical Devices, and Others (Medical insurance, Telemedicine, etc.). The estimated market size of the Indian Healthcare industry is USD 443 bn in 2024, and it is expected to reach USD 1,057 bn by 2029, growing at a CAGR of 19.0 pct.
- The company operates a scalable, asset-light and capital-efficient business model, which helps them ensure quick clinic additions and ramp-ups with low capital expenditure, as well as a high return on capital employed, economies of scale and strong unit economics.
- The company’s core strategies focus on (i) Continue to consolidate its leadership position in India (ii) Scale operations in existing international markets including through inorganic growth opportunities (iii) Expand further in South East Asia, Commonwealth of Independent States and Middle East markets (iv) Continue to focus on operating efficiency and leveraging its network scale to drive supply chain benefits and Profitability (v) Continue to focus on innovation-led digital healthcare to enhance convenience, efficiency and reach.
- Sales of the company have grown by 31.5 pct CAGR in over FY23-25 and EBITDA grew by 85.2 pct CAGR over the same period. During FY25 the sales of the company jumped by 33.5 pct YoY to Rs. 7,558 mn. While EBITDA of the company grew by 65.2 pct YoY to Rs. 1,666 mn and EBITDA margin expanded by 4.23 pct to 22.0 pct YoY in FY25. During FY25, the company reported profit of Rs. 671 mn, which grew 91 pct YoY.
Key Risk
- Participation in public-private partnership projects expose the company to operational, reputational, and legal risks. Failure to meet contractual obligations may lead to contract termination, blacklisting, and exclusion from future government tenders, which could significantly harm its business and financial performance.
- The company’s growth depends on attracting and retaining skilled healthcare professionals, but competition and limited availability pose challenges. Factors such as pay, career growth, reputation, and infrastructure influence their choice, and the company may not always remain competitive in these areas.
Financial Performance
| (In Rs. million, unless otherwise stated) | FY23 | FY24 | FY25 | H1FY26 |
| Revenue from Operations | 4373.0 | 5661.6 | 7558.1 | 4735.0 |
| EBITDA | 486.0 | 1008.9 | 1666.4 | 1114.9 |
| EBITDA Margin % | 11.1% | 17.8% | 22.0% | 23.5% |
| Profit | (117.9) | 351.3 | 671.0 | 142.3 |
| Profit Margin % | -2.7% | 6.2% | 8.9% | 3.0% |
| ROE % | -3.0% | 8.8% | 13.5% | 2.2% |
| ROCE % | 0.4% | 10.0% | 18.7% | 12.0% |
Peer Comparison
| Peer Comparison (FY25) | Nephocare Health | Dr. Lal PathLabs | Vijaya Diagnostic | Metropolis Healthcare |
| Revenue from Operations (Mn) | 7,558 | 24,614 | 6,814 | 13,312 |
| EBITDA (Mn) | 1,666 | 6,956 | 2,722 | 3,030 |
| EBITDA Margin % | 22.0% | 28.3% | 39.9% | 22.8% |
| Profit (Mn) | 671 | 4,922 | 1,438 | 1,455 |
| Profit Margin % | 8.9% | 20.0% | 21.1% | 10.9% |
| ROE % | 13.5% | 24.1% | 19.7% | 12.0% |
| ROCE % | 18.7% | 190.1% | 21.0% | 15.0% |
Valuation
Nephrocare Health Services Ltd is an end-to-end dialysis care provider through its wide network of clinics across India and select international markets. It offers services such as diagnosis, haemodialysis, home and mobile dialysis, and wellness programs, supported by an in-house pharmacy. At the upper end of the price of Rs. 460, the company is valued at FY25 EV/EBITDA of 26.1x on post issue capital. The issue looks fully priced. One can avoid this issue.
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