Park Medi World IPO

It is the second-largest private hospital chain in North India, with a total capacity of about 3,250 beds as of September 31, 2025. On top of that, it is the largest private hospital chain in Haryana, where it operates 1,600 beds in this key state.

The company runs its operations quite efficiently, delivering an EBITDA margin of 26.71% in FY25. EBITDA margin is basically profit from core operations before interest, tax, and non-cash costs like depreciation. With this margin, it ranked as the second most profitable player (on this metric) among its listed peers in FY25.

It has a solid history of growing by acquiring existing hospitals, rather than only building new ones from scratch. So far, it has added 1,650 beds to its network through acquisitions. These acquired hospitals are important for the business: they contributed 55.12% of the total revenue from operations in the six months ended September 30, 2025.

The company keeps its spending on assets relatively low, which helps improve returns. Its gross block per bed (the total value of fixed assets like buildings and equipment per bed) was just ₹34.4 lakh in FY25. This is much lower than the peer average of about ₹1.06 crore, showing it can set up and run beds more cost-effectively.

Its revenue base is anchored by steady institutional business. Government schemes and public sector units (PSUs) together contributed ₹674.23 crore, or 83.38% of operating revenue, in the six months ended September 30, 2025. This strong share from public payors creates a more predictable and stable revenue stream.

Over time, the company has been bringing down its dependence on debt. Its debt-to-equity ratio (how much it owes compared to shareholders’ funds) improved from 0.79 in FY23 to 0.58 as of September 30, 2025. This signals a stronger balance sheet and healthier overall finances.

The business model is geared toward earning more from admitted patients rather than just walk-in consultations. In-patient revenue touched ₹767.35 crore in the six months ended September 30, 2025, making up 94.89% of total operating income. This tilt toward in-patient, often higher-value surgical and specialty treatments, supports stronger revenue per patient.

The company’s profits have not moved in a straight line. In FY24, its profit after tax fell sharply by 33.38% to ₹152 crore compared to FY23. If costs rise or revenue drops in the future, because of things like policy changes, competition, or demand issues, the business could see similar pressure on its earnings again.

A big chunk of its business is tied to just one state. Hospitals in Haryana brought in 69.06% of the company’s total revenue in the six months ended September 30, 2025. This heavy dependence means that any negative political, economic, or regulatory development in Haryana alone could have a major impact on its overall financial performance.

The company is facing real challenges in holding on to its medical staff. As of September 30, 2025, the overall doctor attrition rate (percentage of doctors leaving during a period) was 33.72%. The situation was even tougher among resident medical officers, where attrition stood at 52.02%. Such high churn makes it harder to maintain consistent service quality, patient trust, and smooth day-to-day operations.

Its bed occupancy (how many hospital beds are actually being used) has been quite uneven. The occupancy rate slipped from a high of 75.13% in FY23 to 59.81% in FY24, mainly because it was still integrating newly acquired hospitals. If the company cannot keep occupancy levels steady or improve them, its fixed costs (like staff, rent, and utilities that must be paid regardless of patient volumes) will weigh more heavily on profits and hurt operational efficiency.

As of September 30, 2025, its contingent liabilities (possible future payments that depend on certain events) made up 11.66% of its net worth, excluding corporate guarantees (provided to banks on behalf of its subsidiaries to obtain loans). On top of that, the corporate guarantees alone were as high as 71.58% of its net worth. If a large part of these guarantees, worth ₹749.33 crore, actually had to be paid, it could seriously weaken the company’s financial position.

Because it relies heavily on government payors, it also faces a higher risk around collections. Claims worth ₹94.51 crore (11.69% of revenue) were disallowed in the six months ended September 30, 2025, meaning the company could not recover that amount from the government. These disallowed claims put pressure on cash flows, especially when its working capital cycle is already long at 173.48 days as of September 30, 2025 (the time it takes to convert investments in operations back into cash).

The company’s growth plans depend on executing several major projects, like the Ambala expansion, new hospitals in Panchkula and Rohtak, and future acquisitions such as Durha Vitrak. All of these require timely approvals, smooth construction, and successful integration. Any meaningful delays or setbacks, or if the company fails to reach its targeted operating capacity of 4,900 beds by FY28, could hurt its growth outlook and overall prospects.

The company is also growing through a more complex route—acquiring assets via insolvency proceedings. It is in the process of acquiring Durha Vitrak (Febris Multi Specialty Hospital) after its subsidiary’s Resolution Plan was approved by the NCLT (National Company Law Tribunal). Under this plan, it must pay ₹48.30 crore to secured financial creditors and then infuse another ₹10 lakh as fresh equity into the business.

The company faces liquidity pressure because it takes a long time to convert revenue into actual cash. Its working capital cycle averaged 151.4 days in the six months ended September 30, 2025. In simple terms, there is a long gap between providing treatment and receiving payment, which makes it harder to fund daily operations smoothly and may increase reliance on short-term borrowing.