Pramodini Medicare IPO (12-14 August) Analysis

IPO Analysis | NSE Emerge | 100% Book Built Offer (Fresh Issue and Offer for Sale) | Regulation 229(2), 253(1) and 253(2)

Based on Red Herring Prospectus dated August 4, 2026 | Radiology Diagnostic Centres (CT, MRI, PET-CT, X-ray) | Vijayawada, Andhra Pradesh

STATUS: LIVE RHP, ANCHOR BID AUGUST 11, BIDDING OPENS AUGUST 12 AND CLOSES AUGUST 14, 2026

Fresh Issue: up to 53,50,800 Equity Shares | Offer for Sale: up to 5,00,400 Equity Shares by 3 Promoter Selling Shareholders | NSE Emerge Platform

EBITDA Margin of 49.61% and PAT Margin of 27.90% (FY26), Both the Highest Among 3 Listed Diagnostics Peers | RoNW Improved Steadily in Every Year: 28.00% to 30.83% to 32.69%

 Pramodini Medicare Limited was originally incorporated as Pramodini Medicare Private Limited on September 12, 2000, and converted to a public limited company on November 12, 2025. Its CIN is U85110AP2000PLC035231, with its registered office in Suryaraopet, Vijayawada, Andhra Pradesh.

The Promoters are Dr. Chalasani Kuldeep Kumar, Dr. Chalasani Kavitha, Ms. Chalasani Durga Aashritha, Ms. Chalasani Lalithakumari and Sri Ram Medicare Private Limited.

The Company operates radiology-focused diagnostic centres offering CT, MRI, PET-CT and X-ray imaging services, with a business model concentrated on institutional customers (B2G and B2B) rather than direct-to-consumer walk-in patients.

A large majority of revenue, 77.22% in the most recent disclosed period, is derived from Memoranda of Understanding (MOUs) and Public Private Partnership arrangements with government authorities and public hospitals, with the balance from PSU and other institutional customers.

This B2G-weighted model differs from the direct-to-patient model of many diagnostics chains and concentrates the Company's revenue reliability on continued government hospital relationships and timely bill confirmation by those authorities.

Revenue from operations grew from Rs.3,522.95 Lakhs in Fiscal 2024 to Rs.6,228.75 Lakhs in Fiscal 2026, while PAT grew to Rs.1,737.73 Lakhs in FY 2026 (a PAT margin of 27.90%), and RoNW improved steadily and consistently in every one of the 3 disclosed years, from 28.00% to 30.83% to 32.69%.

The Company's EBITDA margin (49.61% in FY26) and PAT margin are both the highest among its 3 disclosed listed peers, discussed further in Section 5.

Key Basics

Particulars	Details
Document Type	Red Herring Prospectus (RHP) dated August 4, 2026. This is a live offer: Anchor Investor Bid Tuesday, August 11, 2026, Bid or Offer opens Wednesday, August 12, 2026 and closes Friday, August 14, 2026.
Issue Structure	100% Book Built Offer comprising a Fresh Issue of up to 53,50,800 Equity Shares by the Company and an Offer for Sale of up to 5,00,400 Equity Shares by 3 Promoter Selling Shareholders, aggregating to up to 58,51,200 Equity Shares, of which 3,36,000 shares are reserved for the Market Maker. Face value Rs.10 per share.
Face Value	Rs.10 per Equity Share.
Promoters and Selling Shareholders	Dr. Chalasani Kuldeep Kumar (up to 2,14,400 shares, WACA Rs.6.99), Dr. Chalasani Kavitha (up to 1,43,000 shares, WACA Rs.6.23) and Sri Ram Medicare Private Limited (up to 1,43,000 shares, WACA Rs.4.25), all a small fraction of the likely Offer Price.
Eligibility Route	Regulation 229(2), 253(1) and 253(2) of Chapter IX of the SEBI ICDR Regulations, 2018.
Listing Exchange	Emerge Platform of the National Stock Exchange of India (NSE Emerge), with in-principle approval dated July 10, 2026.
BRLM	Smart Horizon Capital Advisors Private Limited.
Registrar	Purva Sharegistry (India) Private Limited.
Bid or Offer Dates	Anchor Bid: Tuesday, August 11, 2026. Opens: Wednesday, August 12, 2026. Closes: Friday, August 14, 2026.
Listed Peers, One Line	3 listed diagnostics peers (Invicta Diagnostic, Krsnaa Diagnostics, Star Imaging & Path Labs); the Company's EBITDA margin, PAT margin and RoE are all the highest among the 4.

The most structurally distinctive feature of this offer is the Company's heavy B2G revenue concentration (over three-quarters of revenue from government MOUs and PPP arrangements), a materially different model from diagnostics chains built primarily on direct-to-consumer walk-in demand.

This concentrates both the opportunity (institutional scale and steady referral volumes) and the risk (payment timing tied to government billing cycles) in a way distinct from most other healthcare or diagnostics companies.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Lakhs)	Substantiation
Capital expenditure for purchase of Medical Equipment for existing and proposed diagnostic centres	4,514.85	A specific rupee figure disclosed, scheduled for full deployment within FY 2026-27; the Company's own Risk Factors disclose that firm orders for this equipment have not yet been placed as of this RHP.
General corporate purposes and unidentified inorganic acquisitions	[TBD]	Capped at 35% of Gross Proceeds combined, of which general corporate purposes cannot exceed 15% of Gross Proceeds or Rs.10 Crore (whichever is less) and unidentified acquisitions cannot exceed 25% of Gross Proceeds.

This is a narrowly focused capital plan: the entire specifically-itemised Object is medical equipment purchase for the Company's existing and proposed diagnostic centres, with the balance directed to a comparatively large, flexible bucket for general corporate purposes and unidentified acquisitions (up to 35% of Gross Proceeds combined), a notably higher and more flexible cap than the SME-typical 15% seen elsewhere in this report series.

The key execution caveat is that, as of this RHP, firm orders for the underlying medical equipment have not yet been placed, so cost and timing risk remains open despite the specific, single-year (FY 2026-27) deployment schedule disclosed.

As with all RHPs at this stage, the fund requirements have not been independently appraised, and the Gross Proceeds, Net Proceeds and General Corporate Purposes figures remain undetermined until the Offer Price is fixed.

Financial Performance

P&L and Key Metrics (Rs. Lakhs unless stated)

Particulars	FY 2026	FY 2025	FY 2024
Revenue from operations	6,228.75	3,823.77	3,522.95
EBITDA	3,090.35	2,096.61	N/A
EBITDA margin (%)	49.61	54.83	N/A
Profit after tax	1,737.73	1,102.76	N/A
PAT margin (%)	27.90	28.84	N/A
Return on equity (%)	39.08	36.44	N/A
Return on capital employed (%)	34.66	36.48	N/A
Return on net worth / RoNW (%)	32.69	30.83	28.00
Debt to equity ratio (times)	0.34	0.30	N/A
NAV per equity share (Rs.)	31.84	21.43	14.82

Cash Flow Highlights (Rs. Lakhs)

Particulars	FY 2026	FY 2025	FY 2024
Net cash from operating activities	2,539.05	2,212.13	985.36
Net cash used in investing activities	(3,062.67)	(1,465.58)	(138.13)
Net cash from / (used in) financing activities	573.17	(239.10)	(1,081.01)
Trade receivables (year-end balance)	1,740.05	1,117.49	1,794.31

This is one of the more consistently strong financial profiles in this report series: RoNW improved in every single one of the 3 disclosed years with no reversal (28.00% to 30.83% to 32.69%), and the Company's EBITDA margin (49.61% in FY26) and PAT margin (27.90% in FY26) are both exceptionally high for the diagnostics sector, reflecting the operating leverage of an institutional, MOU-driven service model relative to the higher marketing and patient acquisition costs typical of direct-to-consumer diagnostics chains.

On cash flow, the Company's own Risk Factors are titled around 'negative cash flows', but as with a number of other companies in this series, this refers only to investing activities (driven by deliberate capacity expansion, including a new centre at Kalyani) and, in FY24, financing activities (loan repayments).

Operating cash flow was positive and grew substantially in every year of the disclosed track record (Rs.985.36 Lakhs to Rs.2,539.05 Lakhs), so the underlying business has been genuinely cash generative throughout.

Trade receivables, while a meaningful balance given the Company's B2G customer base, actually fell from Rs.1,794.31 Lakhs (FY24) to Rs.1,117.49 Lakhs (FY25) before rising again to Rs.1,740.05 Lakhs (FY26), broadly in line with revenue growth rather than a deteriorating collection trend.

How Does It Compare to Peers?

Company	Revenue FY26 (Rs. Lakhs)	EBITDA Margin (%)	PAT Margin (%)	RoE (%)	Debt/Equity (times)
Pramodini Medicare Limited	6,228.75	49.61	27.90	39.08	0.34
Invicta Diagnostic Limited	3,235.36	30.17	15.06	15.34	0.07
Krsnaa Diagnostics Limited	77,277.40	27.42	13.13	10.89	0.50
Star Imaging & Path Labs Limited	8,852.69	36.33	21.75	23.59	0.18

The RHP discloses 3 listed diagnostics peers, ranging from a smaller company (Invicta Diagnostic, roughly half Pramodini's revenue) up to a much larger national chain (Krsnaa Diagnostics, roughly 12.4 times larger).

On every profitability and efficiency metric disclosed, Pramodini leads the peer set: the highest EBITDA margin (49.61% versus a peer range of 27.42% to 36.33%), the highest PAT margin (27.90% versus 13.13% to 21.75%), and the highest Return on Equity (39.08% versus 10.89% to 23.59%), while also carrying the highest Debt-Equity ratio of the 4 (0.34 times), though this remains a conservatively low absolute level.

The Company's own Risk Factors state plainly that it does not have an exact comparable Indian peer with a fully similar business model, given its concentrated radiology focus and B2G revenue mix, so this comparison, while favourable, should be read as broadly indicative rather than a precise like-for-like benchmark.

Key Risks

l A very large majority of revenue (77.22% in the most recent period) is derived from MOUs and Public Private Partnership arrangements with government authorities and public hospitals; these MOUs are not always subject to automatic renewal, and government counterparties may delay, reject or fail to make payment for services rendered, a risk the Company itself flags as capable of materially affecting results.

l The Company has a concentrated emphasis on radiology services specifically (CT, MRI, PET-CT, X-ray) and derives a substantial portion of revenue from Andhra Pradesh, so any regional slowdown, competitive intrusion, or technology shift specific to radiology imaging could disproportionately affect the Company.

l As of this RHP, firm orders for the medical equipment representing the entirety of this Offer's specifically itemised capital expenditure Object (Rs.4,514.85 Lakhs) have not yet been placed, leaving cost and timing execution risk open.

l The Company has extended a corporate guarantee in favour of Sri Ram Medicare Private Limited, a Promoter Group entity, in relation to that entity's borrowings; invocation of this guarantee could adversely affect the Company's own financial condition, and related party arrangements of this kind can create conflicts of interest.

l Two Group Companies, Infer Radiological and Imaging Services Private Limited and Vista Pramodini Medicare Private Limited, have incurred losses in past years (Vista Pramodini specifically loss-making in each of the last 3 years shown, and Infer Radiological not yet finalised for FY26), and continued losses at these entities could affect the broader Group's financial condition.

l The Company has a documented history of delayed statutory filings (GST, TDS/TCS, EPF, ESIC returns) across FY 2023-24 through FY 2025-26, attributed primarily to delays in bill confirmation and payment processes from government hospital counterparties, illustrating a direct operational consequence of the Company's B2G-heavy revenue model.

l The Company is required to furnish bank guarantees as part of its Strategic Partnership arrangements with PSU and government entities, and the prices it can charge for certain diagnostic services are governed by recommended or mandatory fee schedules rather than fully set by the Company.

l Certain licenses for the Company's diagnostic equipment are held in the name of individual personnel rather than the Company itself, and certain diagnostic centres operate under Public Private Partnership contracts with their own specific compliance and renewal terms.

l The Company has outstanding litigation matters, contingent liabilities not provided for in its financial statements, and certain agreements that may be insufficiently stamped and therefore not fully admissible in evidence if disputed.

l The Company's logo is not registered with the Registrar of Trademarks, leaving brand protection incomplete at the time of listing, and it has not commissioned an independent industry report to support the Industry Overview section of this RHP.

l The Company received a notice dated November 25, 2020 relating to non-payment of TDS, and has disclosed minor discrepancies in certain registration records and corporate filings.

l The Company issued Equity Shares in the 12 months prior to this RHP at a price that may be lower than the eventual Offer Price, and depends significantly on key personnel and its ability to retain trained diagnostic and radiology professionals.

Positives to Note

l RoNW improved in every single one of the 3 disclosed fiscal years with no reversal (28.00% to 30.83% to 32.69%), a clean, consistent upward trend that is comparatively rare across this report series.

l The Company's EBITDA margin (49.61%), PAT margin (27.90%) and Return on Equity (39.08%) in FY 2026 are all the highest among its 3 disclosed listed diagnostics peers, some of which are substantially larger, more established chains.

l Operating cash flow has been positive and has grown substantially in every year of the disclosed track record (from Rs.985.36 Lakhs to Rs.2,539.05 Lakhs), meaning the negative cash flow figures the Company discloses relate to deliberate capacity investment, not core operations.

l The Company's Debt-Equity ratio, while the highest among its 4-company peer comparison set, remains low in absolute terms (0.34 times), leaving meaningful balance sheet capacity.

l The Company's B2G, institutional-heavy revenue model, while carrying payment-timing risk, also provides a degree of demand stability and scale (steady referral volumes from government hospital partnerships) that a purely walk-in, direct-to-consumer diagnostics model would not offer.

l The Company has proactively addressed its statutory filing delays by appointing a dedicated compliance officer and strengthening internal controls, and states all delayed returns have since been filed with applicable late fees paid in full.

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