KRM Ayurveda
- KRM Ayurveda is coming out with an initial public offering (IPO) of 57,40,000 shares in a price band of Rs 128-135 per equity share.
- The issue will open on January 19, 2026 and will close on January 21, 2026.
- The shares will be listed on SME Platform of NSE.
- The face value of the share is Rs 10 and is priced 12.80 times of its face value on the lower side and 13.50 times on the higher side.
- Book running lead manager to the issue is Nexgen Financial Solutions.
- Compliance Officer for the issue is Pooja Garg.
Profile of the company
KRM Ayurveda, established in 2019, is operating a network of hospitals and clinics across multiple cities in India as well as marked its presence in abroad through telemedicines consulting and sales. Presently, the company runs 6 Hospitals and 5 Clinics at different locations in the country. Though KRM Ayurveda started off as a kidney hospital and it continues to provide specialized treatment for kidney disorders, the company has widened its horizons in the past few years and has now evolved for various health disorders such as kidney disorder, Liver Cirrhosis, Diabetes, Fatty Liver, Arthritis etc. The company has marked its reach globally as well through Tele-Consultancy Services. Further, it focuses on specialized segments within the medical and healthcare domain that address specific health issues and challenges, such as addiction, personal care, wellness, and related areas and for that it is engaged into trading of Ayurvedic medicine, oils and supplements.
The company’s Hospitals and Clinics are equipped with the following infrastructure & facilities: Beds, including general wards and premium rooms, Panchakarma treatment units, Herbal pharmacy and medicine preparation unit, Ayurvedic diet kitchen, Consultation chambers for Vaidyas (Ayurvedic physicians), and in-house yoga and meditation hall. The company also engaged in the processing, formulation, and marketing of portfolio of Ayurvedic therapeutic and wellness products. Its product portfolio is primarily focused on addressing chronic lifestyle and metabolic disorders. The company markets its products through its network of hospitals and clinics and also provides patient access through an integrated telemedicine service, enabling remote consultations and product delivery. Its product is based on classical Ayurvedic formulations, standardized herbal extracts, controlled processing methods, and quality-assurance protocols.
Over the last three financial years, the company’s product portfolio has been concentrated around therapeutic categories such as chronic kidney disorders, diabetes and metabolic management, immunity enhancement, liver health, hypertension, urinary tract conditions, and general wellness. Each of its products is formulated using a combination of botanicals traditionally used in Ayurveda, including Gudmar, Triphala, Trikatu, Shilajit, Gokshura, Punarnava, Giloy, Kutki, Sarpagandha, and Ashwagandha, among others. The selection and proportion of herbs are aimed at achieving therapeutic benefits.
Proceed is being used for:
- Capital expenditure for construction and development of telemedicine operational facilities
- Purchase of CRM Software and Hardware Infrastructure
- Human Resources
- Repayment/Prepayment of loan
- Meeting working capital requirements of the company
- Meeting general corporate purposes
Industry Overview
India’s healthcare sector is one of the country’s largest and most diverse industries, encompassing a range of services such as hospitals, medical devices, clinical trials, telemedicine, medical tourism, health insurance, and medical equipment. This sector has experienced rapid growth, driven by improved coverage, enhanced services, and increased investments from both public and private sectors. The healthcare system in India is divided into public and private components. Amid this expansion, the popularity of Ayurvedic treatments has soared, driven by growing demand for holistic and natural healing methods. With increasing awareness of its benefits and government support through initiatives like the Ministry of AYUSH, Ayurveda is gaining significant traction. The Indian healthcare industry has experienced remarkable growth between 2016 and 2023, with its market size escalating from $110 billion in 2016 to $372 billion in 2023. In just a year, the industry grew by $50 billion, from $160 billion in 2017 to $280 billion in 2020, reflecting a rapid expansion.
The Ayurvedic infrastructure sector presents a compelling landscape for investment, driven by Ayurveda's growing global recognition as a traditional medical system in over 30 countries. This expanding acceptance fuels the demand for Ayurvedic products and services, creating numerous opportunities for businesses within the industry. The significant surge in Micro, Small, and Medium Enterprises (MSMEs) within the AYUSH sector, evidenced by a near 40% increase from August 2021 to January 2023, underscores the industry's dynamism and potential for further growth. This rapid expansion of MSMEs translates to increased innovation, greater accessibility of Ayurvedic solutions, and a broader market reach, ultimately amplifying the investment opportunities available in this promising sector. The AYUSH sector in India has grown significantly in recent years, becoming an important part of the country's economy and job market. AYUSH includes traditional forms of medicine such as Ayurveda, Yoga, Unani, Siddha, and Homeopathy. This sector encompasses hospitals, clinics, wellness centers, research, herbal products, education, and holistic health practices. This growth is driven by greater awareness, the rising demand for natural therapies, and government support for traditional medicine. In India, the AYUSH healthcare system is divided into public and private sectors.
The demand for Ayurvedic treatment and services in India has seen significant growth in recent years, driven by a rising consumer preference for natural, holistic, and preventive healthcare. As people become more conscious of the side effects of conventional pharmaceuticals, Ayurveda’s emphasis on balancing the body, mind, and spirit has gained strong appeal. Ayurvedic treatments, such as Panchakarma (detoxification therapies), herbal remedies, massage therapies, and dietary consultations, are increasingly sought after for their ability to address chronic ailments, improve overall well-being, and enhance immunity. This demand is fuelled by greater awareness through digital media, traditional knowledge revival, and the global wellness movement, with Ayurveda being recognized as a viable alternative for managing stress, anxiety, and lifestyle diseases. Additionally, the growing focus on organic and chemical-free products contributes to the increasing demand for Ayurvedic services. Furthermore, wellness tourism has expanded the reach of Ayurvedic therapies, with people traveling to India specifically to undergo these treatments, further enhancing the sector’s appeal. Government initiatives, such as promoting AYUSH (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) and the establishment of dedicated wellness centres, have also played a pivotal role in supporting and boosting the growth of Ayurvedic services in India.
Pros and strengths
Skilled Ayurvedic physicians: The company employs a dedicated team of 31 qualified Ayurvedic physicians who have obtained formal qualifications such as Bachelor of Ayurvedic Medicine and Surgery (BAMS) from accredited institutions recognized by statutory bodies like the Central Council of Indian Medicine (CCIM). These physicians bring knowledge of Ayurvedic principles and clinical expertise, ensuring authenticity and efficacy in all treatments provided.
Certified therapists ensuring treatment quality: The company has a team of 59 certified Ayurvedic therapists who have undergone training and certification programs covering traditional therapies such as Panchakarma, Abhyanga, and other specialized Ayurvedic treatments. These certifications ensure that therapists are skilled in both theoretical knowledge and practical application, adhering to quality standards and patient safety protocols.
Centralized GMP-certified production: The company’s Ayurvedic medicines are produced in a centralized processing unit that is certified under Good Manufacturing Practices (GMP) as prescribed by the Drugs and Cosmetics Act, 1940 and Rules, 1945, specifically under Schedule T which governs Ayurvedic medicine production. This GMP certification ensures that the manufacturing processes maintain stringent hygiene, sanitation, and quality standards to guarantee the purity, safety, and efficacy of the products. Its facility complies with quality control protocols including raw material verification and batch traceability, all overseen by technical staff. This centralized GMP-certified production not only aligns with national regulatory standards set by the Ministry of AYUSH and the Central Drugs Standard Control Organization (CDSCO) but also enhances the company’s capacity to meet domestic and international quality expectations in its customer base.
Risks and concerns
Geographical revenue concentration in North India: A significant portion of the company’s revenue is derived from operations in North India, particularly from its two flagship hospitals located in Gurugram and Delhi, which have been operational for over two years. These two hospitals contribute a substantial share to its overall business performance and are critical to its current revenue structure. As a result, its financial results are highly dependent on the continued success, growth, and uninterrupted operations of these facilities. Despite having a presence across eight states in India, its revenue remains geographically concentrated. Specifically, the states of Delhi and Haryana alone contributed 68.44%, 56.39%, 50.93% and 60.86% of its total revenue from operations for the financial period ending September 30, 2025 and financial year ended March 31, 2025, March 31, 2024, and March 31, 2023, respectively. This concentration indicates a significant reliance on a limited number of locations and increases its exposure to regional risks.
Dependence on insurance providers and third-party payers: A significant number of patients availing its hospital services do so through insurance providers, either via cashless arrangements or reimbursement modes. This reliance on third-party payers exposes the company to ongoing negotiations and pressures from such payers to reduce healthcare costs. These dynamics have resulted, and may continue to result, in lower reimbursement rates for its services, which could adversely impact its overall revenue and profitability. If the company is unable to mitigate these risks or successfully adapt to these changes, its financial condition and results of operations could be materially and adversely affected.
Limited bargaining power due to concentrated supplier base: In the ordinary course of its operations, the company has historically relied on a limited number of suppliers. The company has done 89.53%, 85.34%, 73.64% and 76.50% of its purchase from top 10 suppliers during the financial years ended September 30, 2025, FY25, FY24, and FY23 respectively. This supplier concentration exposes the company to risks related to the continuity, quality, and pricing of supply. Any disruption, delay, or deterioration in the quality of products or services provided by these suppliers, or any adverse changes in the commercial terms offered by them, could materially affect its operational efficiency and profitability. Dependence on a concentrated supplier base further limits its negotiating power and increases vulnerability to supply chain interruptions arising from factors such as financial distress of the supplier, regulatory actions, natural disasters, or geopolitical events. Consequently, any significant disruption in its supply chain could have a material adverse effect on its business, financial condition and results of operations.
Outlook
KRM Ayurveda is operating a network of hospitals and clinics across multiple cities in India as well as marked its presence in abroad through telemedicines consulting and sales. It manufactures Ayurvedic products, herbal and botanical remedies, medicines, supplements and possibly skin care / wellness related items. The company has centralized GMP-certified production of Ayurvedic medicines ensuring purity and efficacy. On the concern side, a significant portion of the company’s revenue is derived from patients who avail its hospital services through insurance providers. Any adverse change in the relationship with such insurers, delay in settlement of claims, or reduction in reimbursement rates may materially and adversely affect its business, financial condition, results of operations, and cash flows. Moreover, majority of the company’s state wise revenues from operations for the last 3 years is majorly derived from its Top 2 States. Any adverse developments affecting its operations in this state could have an adverse impact on its revenue and results of operations.
The company is coming out with a maiden IPO of 57,40,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 128-135 per equity share. The aggregate size of the offer is around Rs 73.47 crore to Rs 77.49 crore based on lower and upper price band respectively. On performance front, the revenue from operation for FY25 stood at Rs 7,655.27 lakh whereas in FY24 it was Rs 6,715.57 lakh representing an increase of 13.99%. Moreover, profit after tax for the period ended March 31, 2025, stood at Rs 1,212.52 lakh and for the year ended March 31, 2024 it was Rs 341.36 lakh representing an increase of 255.20%.
The company intends to expand its geographical footprint by deepening its presence in existing markets and entering new domestic and international territories. Presently, it operates a network of 6 hospitals and 5 clinics, primarily concentrated in North India. To achieve its expansion goals, the company has initiated feasibility studies for setting up new hospitals in Tier-II cities such as Jaipur and Lucknow, where demand for quality healthcare is increasing. Internationally, it has commenced telemedicine consulting services catering to patients in the United State of America, which has helped establish its brand presence overseas. Further, the company is in the process of obtaining NABH accreditation for two of its hospitals and intend to extend the certification to all operational facilities in a phased manner.
