Pre-payment or scheduled repayment, in full or in part, of certain borrowings availed by the Company (₹ 135.99 Cr.)
Our View
Incorporated in 2009, Nephrocare operates a scalable, asset-light, capital-efficient dialysis clinic model which enables quick clinic additions and ramp-ups with low capex, delivering high ROCE and strong unit economics. It has expanded internationally, operating 51 clinics outside India (Philippines, Uzbekistan and Nepal) as of September 30, 2025, with a total network of 519 clinics.
Risks to consider include high dependence on PPP contracts and revenue concentration from captive clinics, reliance on skilled healthcare professionals, potential delays in hospital setup, regulatory reforms in the healthcare industry, interest rate and foreign currency risks, international subsidiaries reporting losses in recent periods, competition and execution risks, and changes in credit ratings.
Financially, between FY23-FY25 Revenue and EBITDA CAGR were 31.5% and 85% respectively. The bottom-line turned positive after FY23. At H1FY26, EBITDA & PAT margins were 23.3% and 3% respectively. The issue is priced at a P/BV of 6.42 based on NAV of Rs. 71.62 as at H1FY26. If FY26 earnings are annualised, the implied P/E is approximately 150x (industry average ~75x), indicating aggressive pricing. The Indian dialysis service market is forecast to reach about USD 1,979.0 million by 2029 at a CAGR of 19.3%.
Nephrocare offers investors exposure to a scaled specialty healthcare play with strong brand and growth triggers. Considering the opportunities, risks and valuation, investors may consider this IPO for a long-term horizon.
Financial Snapshot & Valuation
Revenue CAGR (FY23-25): 31.5%
EBITDA CAGR (FY23-25): 85%
EBITDA Margin (H1FY26): 23.3%
PAT Margin (H1FY26): 3%
P/BV: 6.42 (NAV Rs. 71.62 at H1FY26)
Indicative P/E (annualised FY26): ~150x (industry ~75x)
Note: Valuation is aggressive relative to industry multiples; investors should weigh growth potential against high implied multiples.
Key Risk Factors (Summary)
Dependence on PPP contracts and captive clinics
Reliance on skilled healthcare professionals and potential setup delays
Regulatory reforms and compliance risks in healthcare
Exchange rate and interest rate volatility
Some subsidiaries incurred losses in recent periods
Aggressive valuation (high implied P/E)
Competition and execution risks
Frequently Asked Questions (FAQs)
When does the Nephrocare IPO open and close?
The Nephrocare IPO opens on December 10, 2025 and closes on December 12, 2025.
What is the price band for the Nephrocare IPO?
The price band is ₹438 to ₹460 per equity share.
What is the lot size and minimum application amount?
The lot size is 32 shares. Minimum application amount is ₹14,720 (32 shares).
Is Nephrocare profitable?
The company’s bottom-line turned positive after FY23; at H1FY26 EBITDA and PAT margins were 23.3% and 3% respectively.
Should I apply for this IPO?
Sushil Finance view: Subscribe for long-term horizon. Investors should weigh the growth story against the aggressive valuation and execution risks before deciding.
Brief Financials
| PARTICULARS |
₹ in Million |
As at
June 30, 2025 |
FY ‘25 |
FY ‘24 |
FY ‘23 |
| Total Income |
4,839.66 |
7,699.15 |
5,747.22 |
4,432.59 |
| Total Expenditure |
4,560.73 |
6,824.78 |
5,415.61 |
4,518.50 |
| EBITDA |
1,103.10 |
1,666.37 |
996.58 |
485.95 |
| Profit/(Loss) before Tax |
278.93 |
874.37 |
331.61 |
(85.91) |
| Profit/(Loss) after Tax |
142.28 |
670.96 |
351.33 |
(117.89) |
| E.P.S. (Diluted) |
1.57* |
8.01 |
4.40 |
(1.53) |
| P/E (x) (Diluted) |
- |
63 |
- |
- |
| ROCE (%) |
2.17% * |
13.19% |
8.69% |
(3.02)% |
*Not Annualised
PRICE CHART (@ ₹ 460) (Retail Category)
| LOT SIZE |
| Amount |
| 32 |
14,720 |
| 64 |
29,440 |
| 96 |
44,160 |
| 128 |
58,880 |
| 160 |
73,600 |
| 192 |
88,320 |
| 224 |
103,040 |
| 256 |
117,760 |
| 288 |
132,480 |
| 320 |
147,200 |
| 352 |
161,920 |
| 384 |
176,640 |
| 416 |
191,360 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
448 |
206,080 |
| Big HNI |
2,176 |
1,000,960 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
15/12/2025 |
| Initiation of refunds/unblocking ASBA Fund |
16/12/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
16/12/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
17/12/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
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