Rays of Belief (Mom’s Belief) IPO (1 Sep - 3 Sep) Analysis
Updated: 11 hours ago
IPO Opens: September 1, 2026 | IPO Closes: September 3, 2026
Listing: BSE and NSE
Business Overview
Rays of Belief Limited operates under the brand name mom’s belief and is classified as a For Profit Social Enterprise under Regulation 292(E) of the SEBI ICDR Regulations. It provides personalised intervention plans for children with Neurodevelopmental Disorders (NDDs), including Autism Spectrum Disorder, Attention Deficit Hyperactivity Disorder, Down Syndrome, Cerebral Palsy, Intellectual Disability, Learning Disabilities, and Global Developmental Delays.
The company was founded in 2017 primarily to address barriers related to NDDs in the behavioural health domain, including lack of awareness, limited access, inadequate quality of care, and affordability.
Its intervention plans are designed to empower parents and families to become co therapists in their child’s developmental journey. Services primarily cater to children from 18 months up to 12 years of age, with specialised programs for older children up to 15 years focusing on vocational and life skills.
As of March 31, 2026, the company operated 139 centres across India and the United States. Based on number of centres, it is ranked first in India and seventh globally among listed players operating in a similar behavioural health domain.
Centre Types and Service Delivery
The company provides services through five centre models:
● Company Learning Centres: Standalone centres operated directly by the company, contributing the bulk of domestic revenue.
● Company Learning Centres in Partnership with Licensed Professionals: Operated in collaboration with paediatricians, child psychiatrists, occupational therapists, and speech language pathologists. These 123 centres contributed 31.23% of total revenue in FY2026.
● Centre of Excellence and Research (COER): A flagship hub driving innovation in therapy for neurodivergent children, with sensory rooms, therapy labs, and training zones.
● School Collaboration Centres: Therapy and early support centres set up inside partner schools, with 11 such centres as of March 2026.
● Upskilling Academy: Focused on continuous education for therapists, teams, and families to align with the latest clinical methods.
Clinical Team
As of March 31, 2026, the company had a multidisciplinary team of 340 full time clinical professionals, including 74 developmental and clinical psychologists, 139 occupational therapists, 72 speech language pathologists, and 50 special educators. Each child receives a personalised Individualised Education Plan and Individualised Goal Plan that outlines specific developmental goals supported by evidence based therapies, occupational therapy, speech language therapy, and Applied Behaviour Analysis based behavioural support.
Geographic Presence
The company operates 136 centres across 57 cities spanning 20 states and union territories in India. With 42 centres in Tier 1 cities, 77 centres in Tier 2 cities, and 17 centres in Tier 3 cities, it has established a presence beyond major urban centres to serve underrepresented and semi urban geographies. In June 2025, the company acquired Mom’s Belief US Inc. and its step down subsidiary Allergy and Immunology Virginia, LLC, adding three centres in Virginia, United States.
Revenue Model
The company generates revenue through three streams. Domestic revenue includes centre based therapy sessions, online services, and other operating revenue, totalling Rs. 26.68 Crores in FY2026. Export revenue comprises R&D coordination and clinical innovation support services provided to its Singapore based Holding Company, Carving Futures Pte. Ltd., and to Carving Futures Inc. in the US, aggregating Rs. 20.87 Crores in FY2026. Overseas centre revenue from its three US centres added Rs. 34.09 Crores in FY2026, making it the largest single revenue segment in that year.
Recognition and Awards
The brand has received national and international recognition, including being named among the most valued mother and child brands by the Times of India in 2020 and receiving the Innovative Practice Award from the Zero Project Selection Committee at the United Nations in Vienna in 2019. Since commencing operations in 2018, the company has served over 58,000 children.
IPO BASICS
Particulars | Details |
Issue Type | Fresh Issue only (no Offer for Sale) |
Fresh Issue Size | Up to 52,30,000 equity shares of face value Rs. 10 each |
Issue Price Band | To be announced |
Pre IPO Placement | Rs. 5.90 Crores (at Rs. 284 and Rs. 290 per share) |
Issue Opens | September 1, 2026 |
Issue Closes | September 3, 2026 |
Anchor Bidding | August 31, 2026 |
Listing Exchanges | BSE (Designated) and NSE |
Face Value per Share | Rs. 10 |
Pre Issue Shares Outstanding | 1,56,71,682 equity shares |
BRLM | Mefcom Capital Markets Limited |
Registrar | KFin Technologies Limited |
Promoters | Nitin Bindlish (Individual); Carving Futures Pte. Ltd. (Corporate) |
Managing Director | Nitin Bindlish |
CFO | Ved Prakash |
Auditors | Suri and Sudhir, Chartered Accountants |
Website | |
SEBI Classification | For Profit Social Enterprise under Regulation 292(E) SEBI ICDR |
The IPO consists entirely of a fresh issue with no offer for sale component, meaning all proceeds will flow to the company. The company completed a Pre IPO Placement raising Rs. 5.90 Crores from investors at Rs. 284 and Rs. 290 per share prior to the public issue. This IPO is notable as one of a limited number of For Profit Social Enterprise listings in India under the SEBI ICDR regulatory framework designed for enterprises with a social objective.
USE OF PROCEEDS
The company intends to use the net proceeds for the following purposes, to be deployed across FY2027 to FY2029:
Purpose | Amount (Rs. Crores) |
Capex for new centres (Company Learning Centres and School Collaboration Centres) | Rs. 26.88 Cr (CLC) + Rs. 5.54 Cr (School) + Rs. 2.45 Cr (COER) + Rs. 2.05 Cr (Upskilling) + Rs. 4.44 Cr (Technology hardware) = Rs. 41.36 Cr |
Lease payments for existing India centres | Rs. 14.44 Cr |
Investment in US subsidiary Mom’s Belief US Inc. | Rs. 10.13 Cr |
Brand awareness and inclusive outreach programs | Rs. 10.21 Cr |
Inorganic growth and general corporate purposes | To be finalised (not to exceed 35% of proceeds) |
Expansion Plan
The largest use of proceeds is for setting up new centres across India between FY2027 and FY2029. The company plans to open 190 Company Learning Centres (including those in partnership with Licensed Professionals), 121 School Collaboration Centres, 3 Centres of Excellence and Research, and 5 Upskilling Academies, totalling 319 new centres. This would more than triple the current network from 136 India centres.
Exact locations for new centres have not been finalised. The company will conduct site selection based on demographic suitability, proximity to healthcare and early education ecosystems, infrastructure readiness, accessibility, and brand visibility.
Lease Payment Coverage
Rs. 14.44 Crores of the issue proceeds will be used to cover lease payments for existing centres in India. Given that all 136 India centres operate on leased premises with tenures ranging from 11 months to 3 years, and annual lease costs were Rs. 4.66 Crores in FY2026, this allocation is intended to provide operating continuity as existing leases renew.
US Operations Investment
Rs. 10.13 Crores will be invested in Mom’s Belief US Inc. to fund lease and licence payments for the three existing US centres in Virginia. The US operations contributed Rs. 34.09 Crores (approx. 41.74% of total revenue) in FY2026, making this investment strategically significant for the company’s near term revenue.
4. FINANCIAL PERFORMANCE
Note: FY2026 financials are Consolidated and include the US subsidiary acquired in June 2025. FY2025 and FY2024 financials are Standalone. This limits direct year on year comparability. All figures in Rs. Crores.
Revenue and Profitability
Metric | FY2024 | FY2025 | FY2026 |
Revenue from Operations (Rs. Cr) | 30.61 | 36.42 | 81.66 |
Revenue Growth (%) |
| 18.98% | 124.22% |
EBITDA (Rs. Cr) | 1.49 | 3.02 | 11.91 |
EBITDA Margin (%) | 4.87% | 8.28% | 14.59% |
PAT (Rs. Cr) | 0.85 | 5.88* | 4.96 |
PAT Margin (%) | 2.79% | 16.15% | 6.07% |
Return on Equity (%) | 16.83% | 56.56%* | 21.64% |
* FY2025 PAT of Rs. 5.88 Crores includes a one time deferred tax credit of Rs. 5.53 Crores. Excluding this, the underlying PAT would have been Rs. 0.35 Crores. The elevated RoE in FY2025 similarly reflects this non recurring item.
Revenue Breakdown FY2026
The FY2026 revenue of Rs. 81.66 Crores comprises: domestic centre operations Rs. 26.17 Crores (32.04%), revenue from online services Rs. 0.39 Crores (0.48%), other operating revenue Rs. 0.14 Crores (0.18%), export services revenue to Carving Futures entities Rs. 20.87 Crores (25.56%), and overseas US centre operations Rs. 34.09 Crores (41.74%). The US acquisition in June 2025 was transformational to the revenue profile. Without the US operations, domestic and export revenue would have totalled Rs. 47.57 Crores.
Balance Sheet and Cash Flow
Cash Flow Observations
Operating cash flows have been negative in FY2025 and FY2026 despite reported profits. In FY2025, the company reported negative operating cash flow primarily due to an increase in accrued income and trade receivables from export services provided to its Singapore based Holding Company.
In FY2026, the negative operating cash flow of Rs. 1.94 Crores reflects the timing difference between revenue recognition and actual collections, particularly on export and overseas revenue. The company has also had consistent negative investing cash flows of Rs. 1.81 Crores to Rs. 6.18 Crores per year due to capital expenditure on new centres.
Operational KPIs
KPI | FY2024 | FY2025 | FY2026 |
Total Centres | 71 | 111 | 139 (136 India + 3 US) |
Children Served | 9,344 | 8,585 | 9,205 |
Fresh Enrolments | 7,307 | 6,512 | 6,903 |
EBITDA per Centre (Rs. Lakhs) | 2.10 | 2.72 | 8.57 |
Revenue per operating centre (India only) improved from Rs. 2.12 Lakhs per month in FY2024 to Rs. 2.75 Lakhs per month in FY2026, with more mature centres (operating over 36 months) generating an average of Rs. 0.33 Lakhs per month per centre in FY2026 versus Rs. 0.71 Lakhs in FY2024, indicating normalisation as the centre count scaled rapidly.
PEER COMPARISON
There are no listed companies in India whose business portfolio is comparable to Rays of Belief Limited’s model of providing personalised NDD intervention plans for children as a For Profit Social Enterprise. The RHP explicitly states: “There are no listed companies in India or other foreign jurisdictions whose business portfolio is comparable with that of our business.”
In the absence of domestic listed peers, the company has referenced seven global listed companies in similar behavioural health domains for general context. These include Acuitas Health Ltd (Australia), LifeStance Health Group (US), Universal Health Services (US), BrightSpring Health Services (US), Addus HomeCare Corporation (US), Humana AB (Sweden), and Medicover AB (Sweden).
None of these are directly comparable as they operate in the US or Europe with different regulatory environments, much larger scale, and broader service portfolios beyond NDD intervention.
Company Own Financial Profile
In the absence of peers, the following summarises the company’s own position:
Metric | Value |
EPS FY2026 (Consolidated, Rs.) | 3.21 |
EPS FY2025 (Standalone, Rs.) | 3.84 |
EPS FY2024 (Standalone, Rs.) | 0.56 |
Weighted Average EPS (Rs.) | 2.98 |
NAV per Share as of March 31, 2026 (Rs.) | 15.67 |
RoNW FY2026 (%) | 21.64% |
Weighted Average RoNW (%) | 32.48% |
RoCE FY2026 (%) | 29.74% |
EBITDA Margin FY2026 (%) | 14.59% |
Revenue CAGR FY2024 to FY2026 (%) | 63.34% |
The IPO price band has not been announced at the time of this report. Any price to earnings multiple evaluation would need to be assessed against the issue price once declared, noting that the FY2025 earnings are inflated by a one time deferred tax credit and FY2026 consolidated earnings include the US subsidiary acquired mid year.
KEY RISKS
1. Leasehold Model with Non Recoverable Immovable Capex
All 139 centres operate on leased premises with lease tenures typically ranging from 11 months to 3 years. Approximately 30% to 37% of total capex at each Company Learning Centre is immovable (fit outs, interior work, structural improvements) and cannot be transferred or recovered if a lease is not renewed or a centre is shut. For Tier 1 centres, immovable capex constitutes 36% of total capex and for Tier 2 centres it is 33%. Any forced relocation or non renewal of leases could result in significant write offs.
2. Revenue Concentration in Related Party Export Services
In FY2026, 25.56% of revenue (Rs. 20.87 Crores) came from export services provided to Carving Futures Pte. Ltd. and Carving Futures Inc., the company’s own Holding Company and Promoter Group entity. These are related party arrangements subject to conflict of interest risk. Any adverse change in or termination of these agreements, or any scrutiny from regulatory authorities, could materially affect revenues.
3. Heavy Dependence on US Subsidiary Revenue
The three US centres acquired in June 2025 contributed Rs. 34.09 Crores or 41.74% of total FY2026 consolidated revenue. These centres were newly acquired and not owned or operated by the company prior to the acquisition. The Pro Forma Consolidated data suggests that had this acquisition been completed by March 31, 2025, it would have contributed 50.21% of FY2025 revenue. Concentration in recently acquired US operations creates execution and retention risk.
4. Negative Operating Cash Flows
The company has reported negative cash flow from operations in FY2025 (Rs. 1.81 Crores negative) and FY2026 (Rs. 1.94 Crores negative) despite reported profits. This gap arises from the timing difference between revenue accrual and actual cash collections, particularly on export services and overseas revenue. The company incurred a net loss in FY2023. New centres typically take 8 to 12 months to achieve breakeven, meaning the large scale expansion planned with IPO proceeds could prolong negative operating cash flows.
5. High Employee Cost and Clinical Staff Dependence
Salaries and professional fees constituted 52.48% of total expenses (Rs. 39.47 Crores of Rs. 75.16 Crores total expenses) in FY2026. The company employs 340 full time clinical professionals and faces high turnover risk: the average monthly attrition rate for clinical professionals was 4.41% in FY2026. Sourcing qualified professionals, particularly in Tier 2 and Tier 3 cities, is challenging given the limited pool of trained NDD specialists. A shortage of qualified staff would directly impair service quality and the ability to expand.
6. Licensed Professional Model Dependency
104 of the 136 India centres operate under the “Company Learning Centres in partnership with Licensed Professionals” model. These arrangements are based on collaboration agreements or MOUs with paediatricians, child psychiatrists, and other licensed professionals. These arrangements can be terminated by either party at any time. Non compete clauses prevent Licensed Professionals from operating competing centres only within 5 km radius for 24 months, after which they may directly compete. Past instances of disagreements have already led to centre closures.
7. IPO Proceeds Dependent on Unapproved Locations
Exact locations for the 319 new centres to be funded from IPO proceeds have not been identified at the time of filing. The company is yet to finalise lease agreements, obtain regulatory approvals, or confirm suitable sites. Delays in site identification, construction, or regulatory approvals could delay the revenue generating potential of these new centres and cause cost overruns, adversely affecting the deployment of IPO proceeds.
8. Geographic Revenue Concentration
Despite operations across 57 cities, 15.36% of FY2026 domestic revenue was derived from centres in Uttar Pradesh, Delhi, and Karnataka. Tier 2 cities contribute 17.58% of domestic revenue. Any political, competitive, or economic disruption specific to these geographies could disproportionately affect revenues and profitability.
KEY POSITIVES
1. Market Leadership in a Niche, Growing Sector
Rays of Belief is India’s largest For Profit Social Enterprise for NDD intervention by number of centres and ranks seventh globally among listed players in the behavioural health domain. The NDD services market in India is growing rapidly: the ASD therapy market is expected to grow from Rs. 1,090 Crores in CY25 to Rs. 1,893 Crores by CY34 at a CAGR of 6.29%, while the ADHD therapy market is projected to grow from Rs. 1,848 Crores to Rs. 2,850 Crores in the same period. As the category leader, the company is well placed to capture disproportionate market share from this structural growth.
2. Exceptional Revenue Growth
Revenue from operations grew from Rs. 30.61 Crores in FY2024 to Rs. 81.66 Crores in FY2026, a CAGR of 63.34% over two years. EBITDA improved from Rs. 1.49 Crores (4.87% margin) in FY2024 to Rs. 11.91 Crores (14.59% margin) in FY2026, demonstrating strong operating leverage as the business scaled. RoCE improved dramatically from 4.58% in FY2024 to 29.74% in FY2026.
3. Asset Light Model Supports Scalability
All centres operate on leased premises with minimal owned fixed assets. Capital expenditure per Tier 2 city centre is approximately Rs. 14.80 Lakhs, making it relatively low cost to establish new centres. This asset light model, combined with standardised protocols and structured training, supports rapid scaling without heavy balance sheet commitment. The company opened 27 net new centres in FY2026 alone and plans to add 319 more by FY2029.
4. Multidisciplinary Clinical Team
The company has assembled a team of 340 full time clinical professionals covering child and adolescent psychology, occupational therapy, speech language pathology, special education, behaviour therapy, and early childhood development. This breadth of expertise allows it to address the full spectrum of NDD conditions. Each child receives a personalised Individualised Education Plan and Individualised Goal Plan, ensuring structured, trackable outcomes. The in house clinical team provides a durable competitive moat that is difficult for smaller providers to replicate.
5. US Operations Add International Revenue
The acquisition of Mom’s Belief US Inc. and three Virginia centres in June 2025 has significantly broadened the company’s revenue base and demonstrates its capability to operate internationally. US revenues of Rs. 34.09 Crores accounted for 41.74% of FY2026 total revenue. The exchange rate benefit (USD at Rs. 94.65 as of March 2026) further strengthens the revenue contribution from US operations in Indian Rupee terms.
6. Strong Brand and Social Recognition
The mom’s belief brand operates in a highly sensitive, trust dependent sector serving parents of children with special needs. The company has built brand equity over seven years since its founding. Its recognition by the Times of India in 2020 as one of the most valued mother and child brands, and the UN Zero Project Innovative Practice Award in 2019, underpin the brand’s credibility. The community platform Mom’s Belief Community, which connects parents of NDD children, supports client retention and referral generation.
7. High Social Impact Mission
The company has served 58,000 children since commencing operations in 2018 and operates across all five geographic zones of India, including underserved Tier 2 and Tier 3 cities. It is designed to address accessibility and affordability barriers in NDD care, which has historically been limited to urban, high income families. This mission alignment, recognised by SEBI through the For Profit Social Enterprise classification, may attract ESG focused investors and development finance institutions as the company scales.
Disclaimer: This report is for informational purposes only and does not constitute investment advice. Please consult a SEBI registered financial advisor before making any investment decision.
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