Nephrocare Health IPO Review
1) About the Company
Nephrocare Health Services Ltd., incorporated in 2010, is India’s largest dialysis care provider with a wide network of 519 clinics across 288 cities. It offers haemodialysis, home/mobile dialysis, diagnostics and wellness services supported by an integrated, in-house pharmacy model. The company has a strong international footprint with 51 clinics in the Philippines, Uzbekistan and Nepal, including the world’s largest dialysis clinic in Uzbekistan. With 5,562 dialysis machines and 2.88 million treatments performed in FY25, Nephrocare operates on a high-visibility, recurring revenue model. Its partnerships with leading hospital chains further strengthen its reach and scalability.
2) Financials & Key Parameters
Financial Information (Rs. crore)
| Period Ended | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 1,193.68 | 996.46 | 806.02 | 666.23 |
| Total Income | 483.97 | 769.92 | 574.72 | 443.26 |
| Profit After Tax | 14.23 | 67.10 | 35.13 | -11.79 |
| EBITDA | 110.31 | 166.64 | 99.66 | 48.60 |
| Net Worth | 716.06 | 594.21 | 423.55 | 384.73 |
| Reserves & Surplus | 704.14 | 578.68 | 408.57 | 383.50 |
| Total Borrowing | 207.04 | 225.80 | 243.37 | 196.21 |
Key Performance Indicators (KPI)
| KPI | Values |
|---|---|
| ROE | 13.45% |
| ROCE | 18.67% |
| RoNW | 13.19% |
| PAT Margin | 8.88% |
| EBITDA Margin | 22.05% |
| Price to Book Value | 7.72 |
| Market Capitalization | Rs. 4,615.34 Cr. |
| EPS (Rs.) | 7.24 |
| PE Ratio | 63.52 |
3) Peer Comparison
| Company | Business Model | Revenue Growth | EBITDA Margin | Valuation |
|---|---|---|---|---|
| Nephrocare | Dialysis care chain | Strong, steady | ~22% | ~63x |
| Aster DM | Hospitals | Moderate | ~11–13% | ~30–32x |
| Narayana Health | Multi-specialty hospitals | Strong | ~13–15% | ~36–40x |
| KIMS | Hospitals | Stable | ~27–29% | ~35x |
| Healthcare Global | Oncology care | Improving | ~15% | ~40x |
Inference: Nephrocare offers higher margins due to its recurring-use dialysis model but trades at a significant valuation premium to established hospital sector peers.
4) Industry Scenario
India’s burden of chronic kidney disease is rising, driven by diabetes, hypertension and ageing demographics. Dialysis infrastructure remains underpenetrated, particularly in Tier-II/III regions where Nephrocare has strong presence. The dialysis market benefits from predictable demand, recurring treatment cycles and long-term patient engagement. Government insurance schemes and rising adoption of home dialysis are supporting industry expansion. Competition is mainly fragmented, giving scale players a structural advantage.
5) Valuation View
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Issue price band: Rs. 438–460
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Implied PE: ~63x (based on FY25 EPS of Rs. 7.24) → rich valuation vs healthcare sector norms
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Market cap: ~Rs. 4,615 crore
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IPO size: Rs. 871 crore (Fresh Issue + OFS)
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Fresh issue improves expansion capacity & debt reduction; OFS dilutes near-term value addition.
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Expected QIB interest strong due to dominance in dialysis care; Retail & NII likely moderate given premium pricing.
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Attractive long-term model but valuation leaves limited margin for near-term re-rating.
6) Final Verdict
Nephrocare operates a high-quality, scalable and recurring-revenue healthcare platform with proven execution, strong patient base and pan-India reach. Financials show consistent improvement with rising profitability and healthy EBITDA margins. However, valuations are on the higher side compared to listed healthcare peers, and a large OFS reduces fresh capital benefits. Suitable for investors looking at a long-term structural story in dialysis care; near-term listing gains will depend heavily on institutional appetite and overall market tone.
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