Gaudium IVF IPO Explained: 19 New Centres, High Margins, and Key Concerns

Gaudium IVF & Women Health Ltd is a fertility-care company that helps people who are struggling to have a baby, mainly through IVF (In Vitro Fertilization). Its IPO runs from 20-24 Feb 2026 at a price band of ₹75-₹79, and the grey market premium (GMP) is tracking around ₹8.5, or about 10.76% over the issue price. In this explainer, I’ll break down how Gaudium makes money, where the IPO money will go (including the plan to set up 19 new IVF centres), the real strengths and risks hidden inside the numbers, how it stacks up against peers, and what the valuation is trying to “price in.”

IPO Overview

• IPO Date: 20 to 24 Feb, 2026
• Total Issue Size: ₹165 Cr
• Price Band: ₹75 to ₹79 per share
• Minimum Investment: ₹14,931
• Lot Size: 189 Shares
• Tentative Allotment Date: Feb 25, 2026
• Listing Date: Feb 27, 2026 (Tentative)
• GMP: The GMP for the Gaudium IVF IPO is ₹8.5, reflecting a 10.76% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

How Gaudium IVF Makes Money

• Clinics and labs: Run like a “hub-and-spoke” network (big hubs supported by smaller clinics). Hubs are like full IVF centres with labs for complex steps, and spokes are smaller consultation clinics that meet patients first and guide them to hubs when needed; Gaudium has 7 hubs and 28 spokes across 30+ locations. This is built for faster expansion, but it also needs tight coordination so patients don’t drop off mid-journey.
• Main money comes from treatment packages (services) plus medicines (pharmacy): The company charges for consultations, tests, procedures like IVF/IUI/ICSI, and lab work, and it also sells medicines used during the process. Pharmacy has become a much bigger piece recently, which can lift revenue but also changes the business mix away from “only services.”
• A step-by-step “patient journey” drives repeat visits and billing events: The typical flow is consultation and tests → ovarian stimulation (medicine to produce eggs) → egg retrieval and fertilisation in lab → embryo transfer; each step needs staff, labs, and consumables, and each step creates revenue. In fertility care, outcomes matter because success rates affect trust and referrals.
• High-skill delivery is the real engine (and the real dependency): As of 30 Sep 2025, Gaudium had 17 doctors and 5 embryologists (specialists who handle embryos in the lab). This means growth is not just “opening new centres”, it’s also hiring and retaining scarce experts and keeping quality consistent across locations.

Objectives of the IPO

• Set up new IVF centres: The company plans to use ₹50 crore for capital expenditure to establish new IVF centres, with a broader plan to open 19 new centres across India.
• Repay loans: Around ₹20 crore is planned for repayment of borrowings, which can reduce interest burden and lower financial stress if cash flows turn volatile. As of 30 Sep 2025, total borrowings were reported at ₹22.51 crore, so this use can be meaningful.
• General corporate purposes: The remaining money is for general corporate purposes, which is a flexible bucket typically used for routine business needs like branding, working expenses, and growth initiatives.

Strengths:

• Strong profitability and returns: In FY25, EBITDA margin was 40.48% and net profit margin was 26.96%, meaning out of every ₹100 of revenue, about ₹40.48 remained as operating profit, and about ₹26.96 remained as final profit. ROE was 41.31%, which roughly means ₹41 profit for every ₹100 of shareholder money, high, but it must hold up during expansion.
• Clinical performance is steady, and that’s the brand in this business: The company reported IVF success rates around 58% over the last three years, including 58.23% in FY25 and 58.74% for the period ended Sep 2025. In simple words, a steady success rate helps word-of-mouth, and word-of-mouth is a major demand driver in fertility care.
• Revenue per patient jumped sharply, suggesting pricing power or richer procedures: ARPP (average revenue per patient) rose to ₹3.55 lakh in FY25 from ₹1.89 lakh in FY24, which means the company collected much more per patient on average. That can happen when the case mix shifts to higher-value procedures, or when pricing improves, but it also needs volumes to stay healthy.

Risks:

• People risk is real: Employee attrition was 63% in FY25 and 31% for the period ended Sep 2025, which means many staff left and needed replacement. In a high-skill setup (doctors and embryologists), churn can disrupt operations and may impact patient experience and outcomes.
• Expansion is capex-heavy, and utilisation can lag: The company plans to fund new centres (₹50 crore capex), but new centres usually take time to mature, and lower early utilisation can pressure margins. Also, as per public disclosures, exact centre locations were not finalised at the time, which adds execution uncertainty.​
• Balance-sheet and “hidden” obligations need close reading: Contingent liabilities were ₹44.99 crore as of Sep 2025 versus net worth of ₹58.85 crore, which means potential obligations are large relative to the company’s net asset base. Borrowings also rose from ₹9.78 crore (FY23) to ₹22.51 crore (Sep 2025), so debt reduction from IPO proceeds is important, not optional.

For detailed information, visit Gaudium IVF’s official IPO page at INDmoney.

Peer Comparison

Based on the RHP, Gaudium IVF’s listed global peers are Progyny Inc. and Inspire IVF Public Company Limited.

Source: RHP, internal calculation | Data for the period ended Sep 30, 2025

• Gaudium is small vs global, but bigger than a smaller listed regional peer. H1 FY26 revenue for Gaudium was ₹49.5 crore, while Progyny (global peer) reported ₹5,547.3 crore, showing a huge scale gap. But Gaudium’s revenue is much higher than Inspire IVF’s ₹8.3 crore, so it sits in the middle in size.
• Gaudium’s returns look standout with a RoE of 21.25% in FY25 versus Progyny’s 6.25% and Inspire IVF’s negative 18.83%, which implies that Gaudium generated far more profit per ₹100 of net worth.

IPO Valuation

At the upper price of ₹79, Gaudium’s pre-IPO P/E is about 25.36x and post-IPO P/E is about 22.99x. P/E (Price-to-Earnings) means how much investors pay for ₹1 of profit; so a P/E of ~23-25 suggests you’re paying ₹23-₹25 for every ₹1 the company earned. At this price, the company’s market value would be ₹575 crore, post-IPO. Considering this, the pricing does not seem “cheap,” and a lot of the value depends on whether the company can expand to 19 new centres without hurting success rates, staff stability, and margins.

Disclaimer: The post-IPO P/E ratio here is calculated using the company’s annualized H1 FY26 net profits at the upper end of the price band.

Who’s Making Money from the IPO?

The IPO has two parts: a fresh issue of ₹90 crore and an Offer for Sale (OFS) of ₹75 crore. Fresh issue money will go to the company for growth and debt repayment, while OFS money will go to the selling shareholder. The OFS is entirely by Dr. Manika Khanna, who is selling 94,93,700 shares.

Because her weighted average cost of acquisition is reported as ₹0.16 per share, the OFS implies a very large multiple on original cost (~494x). For promoters, this “return multiple” can look dramatic because founder shares are typically issued at very low initial prices, so the more important question is: how much stake they still retain and whether they remain committed post listing.

Analyst View

This is a rare “theme” IPO for India because it is positioned as a listed fertility-care play, and that can attract investors who want exposure to a long-term healthcare trend rather than a short-term cycle. The business already shows high margins and very strong ROE/ROCE, which tells you the model is profitable at the current scale.

But the market debate is fair: the main story here is aggressive expansion (19 new centres), and expansion in healthcare is hard because you must scale people, quality, and outcomes together, not just rooms and machines. If staffing churn stays high and utilisation ramps slowly in new centres, margins and returns can cool off even if revenue grows.

​If you’re tracking this for medium-to-long term, the practical checklist is: (1) pace of centre launches vs plan, (2) doctor or embryologist hiring and retention, (3) success-rate stability, and (4) debt reduction progress after IPO.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

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