Earkart
- Earkart is coming out with an initial public offering (IPO) of 36,49,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 135 per equity share.
- The issue will open on September 25, 2025 and will close on September 29, 2025.
- The shares will be listed on SME Platform of BSE.
- The share is priced at 13.50 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Sarthi Capital Advisors.
- Compliance Officer for the issue is Preeti Srivastava.
Profile of the company
Earkart manufactures and distributes modern hearing aids and related accessories at affordable prices across India. Along with its own manufactured hearing aid, it also trades in hearing aid, parts and accessories of other brands manufactured in India and abroad. In addition, it offers other products like adjustable foldable walkers and Multi-Sensory Integrated Educational Development (MSIED) and Teaching Learning Material (TLM) kits to support mobility and daily needs of physically challenged. Its mission is to make quality hearing care more accessible. The company has developed a smart and easy-to-use remote audiometry machine that allows people to get tested and fitted for hearing aids from anywhere in the world. By combining advanced technology with a strong focus on customer needs, it aims to improve hearing care across India.
The company offers hearing solutions through its network of partners and clinics across India, which sell both domestic and global hearing aid brands. Its focus is on Tier 2 and Tier 3 cities, where it aims to bridge the accessibility gap using innovative delivery models like branded kiosks and dedicated telehealth services. It provides patients with hearing aid dispensers and access to a wide variety of other products including those manufactured/Assembled by it and international brands. The company’s mission is to provide patients with the right hearing solutions and service, reaching even the most remote areas of India.
The company is a trusted supplier on the Government e-Marketplace (GeM) and provide hearing aids to Artificial Limbs Manufacturing Corporation of India (ALIMCO), ALIMCO is 100% government owned enterprise functioning under the Administrative Control of Ministry of Social Justice & Empowerment, Department of Empowerment of Persons with Disabilities.
Proceed is being used for:
- Funding incremental working capital requirements of the company
- Funding capital expenditure requirements for setting of Shop in Shop (SIS) Business Model in ENT/Ophthalmic Clinics across India and Setting up of Infrastructure for operational activities
- General Corporate Purposes
Industry Overview
India had an approximately of 63 million of the population suffering from Significant Auditory Impairment in the year 2023. Hence, India accounts to 15% of the global hearing loss which was 430 million. Early identification of hearing loss and ear diseases is key to effective management. In the year 2011 as per India’s census 5.1 million people in India had hearing impairment out of total 26.8 million disabled people identified i.e. 18.9% of the total disabled population comprised of hearing disability. As per the statics, 9.7 million of the total disabled people were workers and out of them 2.1 million had hearing disability, making up to 41.18% of the total people with hearing disability. As per WHO report in the year 2023, out of total population of 1438 million people in India, 63 million suffered of hearing loss, i.e. 4.38% of the total India’s population suffered from hearing loss. India accounted to nearly 15% of the hearing loss population in the year 2023.
India Hearing Aids Market size was estimated at $4230 million in 2023. During the forecast period between 2024 and 2030, the India Hearing Aids Market size is projected to grow at a CAGR of 7.89% reaching a value of $7198 million by 2030. Prominent drivers of the market are the rising incidence of hearing loss disorders, favourable government policies, and significant investments from both public and private sectors. Also, the integration of digital or smart technologies into these devices and advancements in their technology by market players are anticipated to unlock several growth opportunities in the coming years. It indicates a promising trajectory for the India Hearing Aids Market, with innovations and supportive factors driving its expansion.
Digitalization & Smart Hearing Aids are becoming more sophisticated with the integration of smart features. Bluetooth connectivity, wireless streaming, and compatibility with smartphones and other devices are expected to become more prevalent. Additionally, artificial intelligence (AI) and machine learning are being used to adapt hearing aids to users’ environments and learning patterns. Advances in miniaturization will lead to even smaller and more discreet hearing aids, catering to consumers who prefer less visible devices without compromising on performance. The shift from disposable batteries to rechargeable solutions will continue, improving convenience and sustainability. Longer battery life is expected, along with improvements in battery technology, such as lithiumion batteries. The future outlook for the hearing aid manufacturing industry looks promising, driven by advancements in technology, growing awareness of hearing health, and increasing demand due to aging populations.
Pros and strengths
Earkart OMNI (Audiometer) - fully in-house developed: The company has developed remote Audiometry Machine named Earkart OMNI, which can be operated remotely by the Audiologist to test the hearing loss for the patient located at any place. This device uses the cloud based CRM technology for live patient audiology interaction, diagnosis of hearing loss and fitting of hearing aid in real-time basis. In an era where accessibility to audiology services is not easily available, Earkart Omni emerges as a transformative solution. This comprehensive audiometer, encased in a sleek, easy-to-carry, compact housing with an 11-inch tablet, not only allows for remote control by audiologists but also integrates the company’s proprietary fullstack CRM. This CRM employs in-house video conference capability, enabling real-time, live interactions, real-time visuals of the ear canal of the patients. The device's three-step diagnostic process - Video Otoscopy, Air Conduction Audiometry, and Bone Conduction Audiometry makes it highly useful to the audiology landscape.
Manufacturing Unit adhering to the international standards: The company has established its manufacturing facility in 2022, adhering to the international standards, specifically ISO 13485. This facility is approved by the Central Drugs Standard Control Organization (CDSCO), ensures that all hearing aids manufactured, meets the quality requirements. Additionally, every hearing aid produced is BIS (Bureau of Indian Standards) certified, guaranteeing safety and performance in the market. The production department is supported by a dedicated team of six skilled employees, focused on producing a wide range of hearing aids, including both Analogue and Digital Programmable Behind-The-Ear (BTE) models. The department is committed to fulfilling the diverse needs of the sales team and responding swiftly to market demand.
Detailed manufacturing process: The process for hearing aids involves a series of steps designed to ensure the standards of quality and functionality. It begins with the inspection and preparation of individual components, such as microphones (MIC) and receivers, to verify their compliance with design and performance requirements. These components undergo various stages of, including soldering, coating, and fitting, followed by inspections to identify and address any defects. The process extends to the integration and programming of printed circuit board assemblies (PCBA), with functional and electrical tests conducted at each stage to ensure reliability. By following a structured approach, the assembly process ensures that the final product meets both technical specifications and user expectations.
Risks and concerns
Maximum revenue comes from limited customers: The company has garnered 80.78%, 81.75% and 91.01% of its total revenue from top 3 customers. Since a significant portion of its sales is dependent on certain key customers, the loss of one or more of these customers or a reduction in demand from them, due to factors such as loss of contracts, delays in fulfilling existing orders, inability to negotiate or agree upon acceptable terms, disputes, loss of market share, or a downturn in their healthcare spending, could adversely affect its business, financial condition, and results of operations, especially if it is unable to replace such customers.
Limited operating history in manufacturing hearing aids: The company has a limited operating history in manufacturing. Established in year 2021, it only has over three years of operating experience. While it has the necessary experience, its business and prospects must be evaluated in light of the risks and challenges associated with being a new entrant in manufacturing hearing aids and audiometry products. These include its ability to advance its technologies, develop and manufacture reliable products, deliver and service a large volume of orders, improve operational efficiency, adapt to customer demands and feedback, respond to technological advancements and changes in the competitive landscape, and manage growth effectively. Failing to address any of these risks and challenges could materially and adversely impact its business.
Geographical constrain: The company has derived majority of its revenue from the sale of products in certain geographical region. The company has garnered 76.83%, 80.74% and 88.26% of its total revenue from Uttar Pradesh in FY25, FY24 and FY23 respectively. Any changes affecting the policies, laws and regulations or the political and economic environment in the region may adversely impact its business, financial condition and results of operations.
Outlook
Earkart is a HealthTech platform, specializing in hearing aids and related accessories. It offers modern hearing devices, like Receiver-In-Canal (RIC), Invisible (IIC), Behind-The-Ear (BTE), In-The-Ear (ITE), In-The-Canal (ITC) and Completely-In-Canal (CIC). The company has diversified client base ranging from government, to, clinics, retailers and doctors. It has experienced management team and a motivated Employees. On the concern side, the company’s manufacturing facility is located in Noida, Uttar Pradesh. Any disruption, breakdown or shutdown of its manufacturing may have a material adverse effect on its business, financial condition, results of operations and cash flow. Moreover, the company derives majority of its revenue from the sale of products in certain geographical region and any changes affecting the policies, laws and regulations or the political and economic environment in the region may adversely impact its business, financial condition and results of operations.
The company is coming out with an IPO of 36,49,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 135 per equity share to mobilize Rs 49.26 crore. On performance front, the company’s revenue from operations for fiscal 2025 has increased by 35.75% to Rs 4,310.62 lakh from Rs 3,175.46 lakh in fiscal 2024. Moreover, profit after tax for fiscal 2025 have increased by 125.03% to Rs 688.17 lakh from Rs 305.81 lakh in fiscal 2024.
The company intends to expand its operation Pan India level and for this company has proposed to aggressively increase the number of SIS. Also, the company will use multi-channel distribution, and existing network to increase the scale of business using Online and Offline model. Further, the company is dedicated in adopting new technologies and innovations to enhance productivity, cost efficiency, and price competitiveness. It aims to deliver hearing aids with smart features at affordable prices tailored to the needs of Indian customers. As part of this initiative, the company has developed the EARKART OMNI audiometry machine, a cloud-based technology with the company’s proprietary full-stack CRM. This CRM employs in-house video conference capability, enabling real-time, live interactions with patients.
