Paras Healthcare Ltd IPO

Cons

• • The company incurred losses of Rs 57.98 crore and Rs 15.33 crore in FY25 and FY24, respectively, and Rs 1.02 crore in the three months ended June 30, 2025. These losses were primarily attributable to the ramp-up of its Srinagar and Kanpur hospitals and investments in bed capacity expansion and clinical programmes across its hospital network. Although the company reported a profit of Rs 43.83 crore in FY26, any failure to increase revenue sufficiently to cover expenses and sustain profitability could adversely affect its financial performance.
• • The company’s subsidiaries, Paras Healthcare (Ranchi) Private Limited and Plus Medicare Hospitals Private Limited, collectively incurred losses of Rs 20.38 crore, Rs 52.09 crore, Rs 82.24 crore, and Rs 87.27 crore in the three months ended June 30, 2025, FY26, FY25, and FY24, respectively. These losses were attributed to the ramp-up of the Ranchi and Srinagar hospitals and increased fixed and operating expenses following the expansion of bed capacity at the Ranchi hospital. Any failure of these subsidiaries to achieve profitability or raise adequate capital to meet their obligations could adversely affect the company’s financial performance.
• • The company reported employee attrition rates of 12.01%, 16.09%, 60.38%, 66.74%, and 65.27% in the three months ended June 30, 2026, and June 30, 2025, and FY26, FY25, and FY24, respectively. The shortage of skilled healthcare professionals and competition for talent may increase recruitment, training, and staff costs, while high attrition or the premature termination of visiting doctors’ arrangements could affect service quality, patient intake, and hospital utilisation.