Gaudium IVF IPO

It’s running with strong profit margins, which usually means the business controls costs well while still charging enough for its services. In FY2025, it posted an EBITDA margin of 40.48% and a net profit margin of 26.96%. This came on revenue of ₹70.72 crore, so it’s keeping a healthy slice of what it earns.

The company also looks efficient at turning shareholder and business funds into returns. In FY2025, it delivered RoE of 41.31% (Return on Equity - profit compared to shareholders’ money) and RoCE of 39.37% (Return on Capital Employed - profit compared to total capital (including debt) used in the business). In simple words, it’s getting a lot of output from the money invested in it.

What’s interesting is how much more revenue it’s making per patient now, which hints at better pricing or more high-value procedures in the mix. ARPP (Average Revenue Per Patient - total revenue divided by patients) rose to ₹3.55 lakhs in FY2025 from ₹1.89 lakhs in FY2024, helped by changes in service mix and pricing strategy.

It uses a “hub and spoke” setup, which is a pretty practical way to grow without spending heavily everywhere. The idea is: the hubs are the main full-service centers, and the spokes are smaller clinics that focus on consultations and funnel cases to the hubs. Right now, it has 7 hubs supported by 28 spokes across 30+ locations, which helps it reach more patients, including in underserved markets, without needing a full-scale center in every place.

In fertility healthcare, results matter a lot because trust drives referrals and repeat visits. The company reports steady IVF success rates around 58% over the last three years, including 58.23% in FY2025 and 58.74% for the period ended September 2025, suggesting fairly consistent clinical outcomes.

The company has some big “maybe” payments hanging over it, these are called contingent liabilities, meaning they could turn into real costs later, but they’re not booked as debt today. As of Sept 2025, these stood at ₹44.99 crore, which is large compared to its net worth (shareholders’ funds) of ₹58.85 crore.

Keeping skilled people (doctors, nurses, and other healthcare professionals) is a real challenge here, and in fertility care, experience matters a lot. The employee attrition rate (how many staff leave) was very high at 63% in FY2025 and 31% for the period ended Sept 2025, which can disrupt day-to-day operations and consistency of care.

Even though revenue is growing, the actual number of treatment cycles has moved around, which can be a sign that demand isn’t fully stable. Treatment cycles fell from 3,711 in FY2024 to 3,476 in FY2025, so the business may be earning more per patient but treating fewer cycles overall.

A lot of the business seems to lean on the Promoter, Dr. Manika Khanna, both for medical credibility and the brand itself. In FY2025, the company paid her professional fees of ₹1.80 crore. If she steps away, it could hit performance and reputation pretty hard.

Debt has climbed fast, which can raise financial risk if cash flows wobble. Borrowings rose from ₹9.78 crore in FY2023 to ₹22.51 crore by Sept 2025. That’s more than double in a short span, so the interest and repayment load matter.

The company is also dealing with legal/regulatory issues that can create noise and risk. This includes an outstanding income tax demand of ₹72.69 lakhs against the promoter, plus a medical council order that flagged unprofessional practices related to self-advertising.