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Pramodini Medicare

• Pramodini Medicare is coming out with an initial public offering (IPO) of 58,51,200 shares in a price band of Rs 110 - 118 per equity share.
• The issue will open for subscription on August 12, 2026 and will close on August 14, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 11.00 times of its face value on the lower side and 11.80 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance officer for the issue is Rushikesh Vijay Gosavi.

Profile of the company

Pramodini Medicare India is a diagnostic service provider in India. It provides a range of technology-enabled diagnostic services such as radiology, clinical laboratory and nuclear medicine service to public hospitals, private hospitals, certain PSU (Public Sector Undertaking) of Government of India and medical colleges across tier I, tier II and tier III cities throughout India. Its diagnostic services include a comprehensive range of offerings: i) ‘Radiology’ which covers Magnetic Resonance Imaging (MRI), Computed Tomography (CT scan), X- ray, Ultrasound with colour doppler, Mammography, Dexa Scan and Intervention Radiology, ii) ‘Clinical Laboratory’ which includes Haematology, Micro-Biology, Immunology, Pathology & Bio-Chemistry and (iii) ‘Nuclear Medicine’ which includes PET-CT (Positron Emission Tomography-Computed Tomography), SPECT (Single Photon Emission Computed Tomography) and Nuclear therapy. It also provides teleradiology services through its registered office situated at Vijayawada which functions on a 24x7 basis throughout the year. It provides healthcare services for core testing, patients diagnosis, disease prevention and monitoring of various health conditions. Its services include both routine and specialized tests, which are used for prediction, early detection, diagnostic screening, confirmation and/or monitoring of diseases.

Its business operates across four key models namely i) Public Private Partnership (with government hospitals and government teaching hospitals) ii) Private Private Partnership (with private sector hospitals) iii) Strategic Partnership with PSUs (Public Sector Undertakings) Government of India and iv) Private Centres (standalone centre). The above models are based on hospital partnerships, where diagnostic centres are set up within the existing premises of hospitals, health centres and it supports them by providing diagnostic testing service. It has entered into Memorandum of Understandings (MOUs) with these institutions for the establishment and operation of onsite diagnostic centres within their existing healthcare facilities. It is operating through 16 diagnostic centres across these different models. These centres are located in 7 states in India: Uttar Pradesh, Andhra Pradesh, Karnataka, West Bengal, Haryana/NCR Delhi, Madhya Pradesh and Kerala (Operation yet to commence). The services offered at each location vary based on the scope agreed under the respective MOUs. It has presence across 14 cities in India. It also has a processing unit cum laboratory in Vijayawada.

It offers a one-stop solution for all services to its patients through its operational network. It also offers customized health and wellness packages tailored to meet the specific requirements of its patients. It focuses on a patient centric approach to enhance the overall quality of its services for optimal patient’s satisfaction. Several factors, including integrated services model, quality of its diagnostic services, centre infrastructure and patient’s experience, convenience of its operational network in its core geographies are important differentiating factors in patients choosing it as their preferred and trusted diagnostic service provider, which helps it in retaining its patients, and sets it apart from its competitors.

Proceed is being used for:

• Funding of capital expenditure for purchase of medical equipments towards Existing and proposed diagnostic centres
• General corporate purposes and unidentified inorganic acquisition

Industry overview

Healthcare has become one of India's largest sectors, both in terms of revenue and employment. The industry is growing at a tremendous pace owing to its strengthening coverage, service and increasing expenditure by public as well private players. The global remote patient monitoring market is projected to expand at a CAGR of 12.7% to reach $56.94 billion by 2030. India’s hospital market is expected to be valued at $135.3 billion in FY2026 and is projected to reach $202.5 billion by 2030, growing at a CAGR of around 10.6%. Meanwhile, India held the 41st position in IMD’s World Competitiveness Index 2025 and 38th position in the Global Innovation Index, highlighting growing capabilities in healthcare innovation, digital health, and research ecosystems.

Rising income levels and an expanding middle class are driving higher healthcare spending and demand for quality services across India. Greater penetration of health insurance aided the rise in healthcare spending, a trend likely to intensify in the coming decade. Growing insurance penetration is supporting affordability, with standalone health insurers reporting 10.4% YoY premium growth to Rs 3,622 crore ($422.7 million); total premium income is expected to reach Rs. 3.21-3.24 lakh crore ($37.6-37.9 billion), followed by further growth of around 10.9% in FY27. Economic prosperity is driving the improvement in affordability for generic drugs in the market. The Union Budget 2026-27 marks a significant step in strengthening India’s healthcare system, with allocation to the Ministry of Health & Family Welfare increased to Rs 1,06,530.42 crore ($12.05 billion), reflecting a around 10% rise over the previous year. Continued policy support and investment are enhancing healthcare infrastructure, expanding access, and driving long-term sector growth.

Further, India’s healthcare sector is extremely diversified and is full of opportunities in every segment, which includes providers, payers, and medical technology. India is a land full of opportunities for players in the medical devices industry. The country has also become one of the leading destinations for high-end diagnostic services with tremendous capital investment for advanced diagnostic facilities, thus catering to a greater proportion of the population. Besides, Indian medical service consumers have become more conscious towards their healthcare upkeep. Rising income levels, an ageing population, growing health awareness and a changing attitude towards preventive healthcare are expected to boost healthcare services demand in the future. Greater penetration of health insurance aided the rise in healthcare spending, a trend likely to intensify in the coming decade.

Pros and strengths

Establishing a strategic presence across various states of India: Its network of diagnostic centres spans 7 states across India namely Uttar Pradesh, Andhra Pradesh, Karnataka, West Bengal, Haryana/NCR Delhi, Madhya Pradesh and Kerala (Operation yet to commence). It has 16 centres across 14 cities in India. It commenced operations in Fiscal 2015 with one radiology diagnostic centre. It has 3 centres in Uttar Pradesh, 6 centres in Andhra Pradesh, 3 centres in Karnataka, 1 centre in West Bengal, 1 centre in Haryana/NCR Delhi, 1 centre in Madhya Pradesh and 1 centre in Kerala (Operation yet to commence). It has an operational footprint in each state where it conducts its business, and in connection with its operations, it has set up and manages diagnostic centres within those respective states. The combination of its position driven by its operating history in its core geographies, its operational network and its reputation for providing quality diagnostic services positions it well to continue to grow the scale of its business and take advantage of growing Indian diagnostic market. 

Technical capability with robust IT infrastructure: One of the key contributors to its success in terms of accuracy, turnaround time and scale of operations is the technology infrastructure that it implements as part of its operations. Its technical capability and ability to adopt to the latest technologies in the diagnostic centres allow it to provide quality and reliable diagnostic services to its patients. Its ability to deploy latest equipment and technologies ensure that its processes are efficient and scalable with minimal errors. It has relationships with its equipment vendors which it ensures timely deployment of machinery, advantageous asset pricing, fleet-wide maintenance and preferred vendor status with certain of its equipment suppliers. On account of its scale of operations, it is able to negotiate favorable terms for procurement of equipment from its vendors. In its radiology segment, it deploys MRI, CT scan, X-ray machines, Ultrasound, Dexa Scan and Mammography while its pathology services use fully automatic analysers to run a range of basic to specialized tests. These scanners are capable of performing specialized investigations with minimum radiation dose to the patient and produce quality images to provide accurate diagnosis. Its X-ray systems have computed and digital radiography which are quicker, accurate and produce less radiation to patients than traditional systems. The ultrasound examinations it conducts at various locations are equipped with technology that is capable of 2D and 3D imaging.

Track record of revenue and financial performance: The company has demonstrated a consistent track record of revenue growth and stable financial performance over the years, supported by the expansion of its diagnostic network and an increasing patient base. Its financial performance reflects its ability to effectively scale operations, optimize resource utilization and maintain operational efficiency. It operates 16 diagnostic centres across different operating models, located across 7 states and 14 cities in India. With its continued focus on expanding diagnostic capabilities, strengthening infrastructure and improving service quality, it is well positioned to sustain its growth momentum and further enhance its financial performance.

Risks and concerns

Significant revenue from public private partnership: A significant portion of its revenue from operations is derived from MOUs with government authorities under Public Private Partnership arrangements. For FY 2025-26, 2024-25 and 2023-24, its Public Private Partnership accounted for 54.19%, 70.88% and 77.22% of total revenue from operations, respectively. Any non-renewal, modification, or termination of such MOUs, or delays or failures in realizing payments from government authorities, may materially and adversely affect its business, financial condition and results of operations. 

High revenue concentration in radiology services: Its focus on radiology services has been a characteristic of its service model. It has made investments in imaging modalities such as CT, MRI, PET-CT, and X-ray, positioning itself as a provider of radiology diagnostic solutions. For the FY 2025-26, 2024-25 and 2023-24, its radiology services accounted for 97.05%, 96.17% and 95.82% of total revenue from operations, respectively. However, this emphasis on radiology services also exposes it to risks that could impact its operations, financial performance, and growth prospects.

Dependence on contractually fixed pricing: The prices that it charges for its services are fixed under the MOU it enters with public sector enterprises, state governments and some of private medical establishments. Reference prices of services, pricing limits imposed by them may limit its ability to determine or revise the prices of the services it offers. Other than certain escalation terms, it has limited ability to determine the prices of the services it offers at its diagnostic centres. Further, the escalation clauses included in the MOUs it has entered into may not be in line with inflation linked costs or even the actual increase in expenses incurred in its operations. This could have a material adverse effect on its business, results of operations, financial condition and prospects. Further, if the state governments implement mandatory pricing regimes, its margins could deteriorate which in turn could have a material adverse effect on its business, results of operations, financial condition and prospects.

Outlook

Pramodini Medicare is engaged in offering comprehensive solutions for pathology and radiology testing services such as imaging (including radiology), pathology/clinical laboratory and tele-radiology to customers across states. It provides a range of technology-enabled diagnostic services such as radiology, clinical laboratory, nuclear medicine services to public hospitals, private hospitals, certain PSU of Govt of India and medical colleges across tier I, tier II and III cities throughout India. The services offered at each location vary based on the scope agreed under the respective MOUs. Its business operates across four key models namely i) Public Private Partnership, ii) Private Private Partnership, iii) Strategic Partnership with PSUs (Public Sector Undertakings) Govt of India and iv) Private Centres (standalone centre). On the concern side, it derives substantial portion of its revenue from the state of Andhra Pradesh. For financial year ended March 31, 2026, 2025 and 2024, its revenue from state of Andhra Pradesh is accounted for 61.90%, 84.78% and 86.66% of total revenue from operations respectively. Any loss of business in such regions could have an adverse effect on its business, results of operations and financial condition.

The company is coming out with a maiden IPO of 58,51,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 110-118 per equity share. The aggregate size of the offer is around Rs 64.36 crore to Rs 69.04 crore based on lower and upper price band respectively. On performance front, revenue from operations increased by 62.90% from Rs 3,823.77 lakh in Fiscal 2025 to Rs 6,228.75 lakh in Fiscal 2026. Profit after tax increased by 57.58% from Rs 1,102.76 lakh in Fiscal 2025 to Rs 1,737.73 lakh in Fiscal 2026.

Meanwhile, it is strategically focused on strengthening its capabilities and infrastructure by adopting advanced technologies to maintain its position in the diagnostic industry. In order to cater to the growing demand for its services from existing patients and to meet the requirements of new patients, it intends to expand the capacities of certain of its existing diagnostic centres. Accordingly, it proposes to utilize a portion of the Offer Proceeds towards the purchase and installation of medical equipment at some of its existing diagnostic centres located in Hubli (Karnataka), Manjeri (Kerala) and Vijayawada (Andhra Pradesh). Going forward, it intends to augment its growth by pursuing selective acquisitions, joint ventures, strategic alliances and associations that provide it access to technology expertise, specialised services, market share and wider geographical reach, enabling it to expand its service offerings and grow its patient base.

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, Yatharth Hospital & Trauma Care Services has informed that it enclosed the Investor’s Presentation on financial results of the Company for the Q1FY27. The above presentation will also be made available on website of the Company at https://www.yatharthhospitals.com/investors/corporate-announcements.

The above information is a part of company’s filings submitted to BSE.