Rays of Belief IPO

One of Mom’s Belief’s biggest strengths is its leadership position in India’s specialised child development and behavioural therapy space. The company has built the largest organised network in this niche segment, with 136 clinical centres across 57 cities and has supported more than 58,000 children since starting operations in 2018. This scale helps the company build trust among parents and doctors, while smaller local centres may find it difficult to match its reach and reputation. This growing network has helped the company increase its operating revenue to ₹81.66 Cr in Fiscal 2026 and generate EBITDA of ₹11.91 Cr.

Another important strength is its asset-light expansion model. Instead of spending large amounts on buying land or constructing buildings, the company operates its centres through rented properties. This allows it to open new centres with relatively low investment. Setting up a new centre requires around ₹0.16 Cr in Tier 1 cities, ₹0.14 Cr in Tier 2 cities, and ₹0.12 Cr in Tier 3 cities. Because these centres can reach break-even within 8 to 12 months, the company has been able to improve its capital efficiency, with ROCE increasing to 29.74% in Fiscal 2026.

The company has also created a low-cost customer acquisition model through partnerships with doctors and schools. Instead of depending heavily on advertisements, Mom’s Belief works with paediatricians and educational institutions where families can discover its services through trusted sources. It operates 104 centres through partnerships with paediatricians and has therapy rooms inside partner schools. This referral-based approach helps reduce marketing expenses, which stood at only ₹0.75 Cr in Fiscal 2026.

Another key advantage is its unique co-therapy model, where parents actively participate in their child’s development along with professional therapists. The company supports this approach through its own collection of more than 2,000 home-learning tools and six registered trademarks. This creates stronger relationships with families because therapy becomes a continuous process rather than just a clinic visit. The number of repeat patients taking more than 12 sessions increased to 4,265 in Fiscal 2026, showing stronger customer retention.

Mom’s Belief also focuses on maintaining consistent service quality through structured training and central supervision. The company has built an Upskilling Academy to train its 340+ certified professionals and support parents involved in the therapy process. This standardised approach helps maintain the same quality of care across different locations, which can be difficult for smaller independent centres to achieve.

The company’s international expansion is another growth advantage. Through the acquisition of three clinics in Virginia, USA, completed on June 23, 2025, Mom’s Belief entered the US healthcare market. These operations contributed ₹34.09 Cr in Fiscal 2026, accounting for around 41.74% of total operating revenue. This expansion provides geographic diversification and opens opportunities in a larger healthcare market.

One of the biggest risks for Mom’s Belief is its dependence on skilled therapists and clinical professionals. The company’s services require trained psychologists, speech therapists, and other specialists, but there is a shortage of qualified professionals in this field. Since employee costs are the company’s largest expense, any increase in therapist salaries or difficulty in hiring skilled staff could increase costs and put pressure on profit margins.

Another important risk is that the company’s rapid expansion may become difficult to manage. Mom’s Belief has grown its network significantly and plans to add many more centres in the coming years. However, opening new locations requires maintaining the same quality of therapy and training standards across all centres. If the company fails to maintain consistent service quality while expanding, it could affect customer trust and the brand’s reputation.

The company also faces cash flow pressure because a large amount of money remains stuck with customers and partners as unpaid bills. Trade receivables increased to ₹18.09 Cr in Fiscal 2026 from ₹3.08 Cr in Fiscal 2025, while the time taken to collect payments increased to 81 days. This means the company may show revenue growth on paper, but actual cash may take longer to come into the business, creating pressure on daily operations.

Another risk comes from the company’s dependence on parents and families paying for therapy services themselves. In India, behavioural and developmental therapies are still largely not covered by insurance, meaning families often have to pay from their own pockets. If economic conditions weaken or families become less willing to spend on long-term therapy programs, it could affect demand and revenue growth.

The company is also exposed to execution risks from its international expansion. Its US operations became a major part of the business after the acquisition of clinics in Virginia. While this expansion has added significant revenue, managing operations across different countries brings challenges related to regulations, healthcare systems, staffing, and maintaining profitability.

Competition is another factor to watch. Although Mom’s Belief is one of the largest organised players in India’s specialised behavioural therapy segment, the industry also includes smaller local therapy centres and international healthcare companies. If competitors offer similar services at lower prices or attract experienced therapists, it could impact the company’s growth and margins.