Is Park Medi World IPO Good or Bad – Detailed Review

Park Medi World Limited’s IPO is set to open its initial public offering from December 10, 2025, to December 12, 2025. When considering applying for this IPO, potential investors might have questions about whether the Park Medi World IPO is a good investment and if it's worth subscribing to.

This article provides a comprehensive Park Medi World IPO review, covering its business operations and fundamental analysis to help you make an informed investment decision. 

Park Medi World IPO Review

Park Medi World Limited's IPO is open for subscription from December 10, 2025, to December 12, 2025, with listing expected on December 17, 2025, on NSE and BSE.

The company is the second largest private hospital chain in North India with an aggregate bed capacity of 3,000 beds (as of March 31, 2025), and the largest in Haryana with 1,600 beds. It operates a network of 14 NABH-accredited multi-super specialty hospitals under the ‘Park’ brand, focusing on high-quality, affordable healthcare across over 30 super-specialty services. 

A key revenue driver is its diversified payor mix, with Government Schemes and PSUs contributing 83.38% of revenue for the six months ended September 30, 2025. The promoters, Dr Ajit Gupta (Chairman and Whole-Time Director) and Dr Ankit Gupta (Managing Director), hold an aggregate of 95.55% of the pre-Offer paid-up Equity Share capital.

The company operates within the rapidly growing Indian Healthcare Delivery Market (TAM projected to reach Rs 10.2-10.8 lakh crore by FY29, a CAGR of 10% to 12%), driven by factors like increasing prevalence of Non-Communicable Diseases (NCDs), government schemes like PMJAY, and a low bed density in North India.

Park Medi World’s financial performance shows inconsistent but overall positive growth and competitive operational efficiency. Revenue from operations grew from Rs 1,254.60 crore in FY23 to Rs 1,393.57 crore in FY25, and reached Rs 808.66 crore in H1FY26 (16.94% increase YoY). 

The EBITDA Margin is highly competitive at 26.71% in FY25 and 26.85% in H1FY26. Profit After Tax (PAT) has recovered sharply after a dip, reaching Rs 139.14 crore in H1FY26, with a corresponding PAT Margin of 17.21%. The Debt to Equity ratio has consistently improved from 0.79 in FY23 to 0.58 in H1FY26. The company’s Return on Equity (RoE) of 20.68% in FY25 is strong compared to major peers.

Strengths include its second-largest private Hospital Chain positioning in North India, a Proven Track Record of Acquiring and Integrating Hospitals (acquisitions contributed 55.12% of H1FY26 revenue), Strong Operational and Financial Performance (high EBITDA Margin), and a Doctor-led Professional Management Team.

Risks include Significant Contingent Liabilities (corporate guarantees are 71.58% of net worth), a High Attrition Rate Among Doctors (33.72% for doctors in H1FY26), High Geographic Concentration of Revenue in Haryana (69.06% of H1FY26 revenue), and Dependence on Consultants with Non-Exclusive Arrangements.

The Rs 920 crore IPO consists of an Offer for Sale (OFS) of Rs 150 crores and a Fresh Issue of Rs 770 crores. The fresh issue proceeds will be used for: Repayment or Prepayment of outstanding borrowings (Rs 380 crores), Capital expenditure for a new hospital and medical equipment, and Funding Inorganic growth/Acquisitions (Rs 302.05 crores).

The shares are priced in the band of Rs 154 to Rs 162 per share, with a lot size of 92 shares.

Company Overview of Park Medi World IPO

Park Medi World Limited is the second largest private hospital chain in North India with an aggregate bed capacity of 3,000 beds, and the largest private hospital chain in terms of bed capacity in Haryana with 1,600 beds as of March 31, 2025. The company operates a network of 14 NABH-accredited multi-super specialty hospitals under the ‘Park’ brand.

The company's core focus is on delivering high-quality and affordable healthcare across a diverse range of specialties. This strategy can be evaluated through its profitability, with a Profit After Tax (PAT) of Rs 139.14 crore for the six months ended September 30, 2025. The core competitive strength lies in its strong operational and financial performance, supported by a diversified payor mix. A key component of its revenue is generated from government schemes and public sector undertakings.

Park Medi World has a track record of expanding its network through both organic and inorganic growth, having acquired eight hospitals and added 1,650 beds to its network as of September 30, 2025. The acquired hospitals contributed 55.12% of the company's revenue from operations for the six months ended September 30, 2025.

The company is pursuing further expansion with a pipeline of hospitals in Ambala, Panchkula, Rohtak, New Delhi, Gorakhpur, and Kanpur, expecting to increase its total bed capacity to 4,900 beds by March 31, 2028.

Its core business strength is built around a strategy to optimize operational efficiencies by maintaining ownership of hospital assets. The company owns 10 of its 14 operational hospitals, and the rest are leased.

The company provides more than 30 super-specialty and specialty services. The following is the speciality-wise revenue breakdown as of September 30, 2025:

The revenue split by payor category for the six months ended September 30, 2025:

• Government Schemes and PSUs: 83.38%

• Self-Pay: 8.24%

• Insurance: 7.49%

The Company’s Promoters are Dr Ajit Gupta and Dr Ankit Gupta. The promoters hold an aggregate of 95.55% of the pre-Offer paid-up Equity Share capital.

Dr Ajit Gupta serves as the Chairman and Whole-Time Director, Dr Ankit Gupta serves as the Managing Director, Dr Sanjay Sharma is the Whole-Time Director and Chief Executive Officer, and Rajesh Sharma is the Chief Financial Officer.

Industry Overview of Park Medi World IPO

Park Medi World Limited operates within the rapidly growing and transforming Indian Healthcare Delivery market, primarily focused on providing multi-super specialty services in the North India region. The healthcare sector in India is experiencing a significant uplift driven by structural factors like increasing demand, government initiatives, and demographic shifts.

The Indian Healthcare Delivery Market like hospitals and clinics. The Total Addressable Market (TAM) was valued at approximately Rs 6.9 lakh crore to Rs 7.0 lakh crore in value terms in FY25. This market is projected to reach approximately Rs 10.2 lakh crore to Rs 10.8 lakh crore by FY29, reflecting a CAGR of 10% to 12% from FY25 to FY29.

Key Market Driving factors:

• Increasing Prevalence of Non-Communicable Diseases (NCDs): Lifestyle-related illnesses accounted for nearly 66% of all deaths in India in 2019, driving demand for specialized treatments in areas like cardiac care, oncology, and diabetes.

• Government Schemes: Initiatives like the Pradhan Mantri Jan Arogya Yojana (PMJAY), providing Rs 5 lakh health cover per family, are expected to significantly increase the demand for healthcare services, predominantly catered to by the private sector.

• Medical Tourism: India ranks 10th globally in terms of medical tourism based on the Medical Tourism Index 2020-2021, driven by low treatment costs and specialized care, primarily supported by the private sector.

• Low Bed Density: The North Indian region has a bed density of 15 to 16 beds per 10,000 population, trailing the National Health Policy's (NHP) recommendation of 20 beds per 10,000 population, highlighting a significant market opportunity for capacity expansion.

Financial Overview of Park Medi World IPO

Note: RoE and RoCE for the six months ended September 30, 2025, are not annualized.

Revenue from Operations has shown inconsistent but overall positive growth. Revenue initially decreased by 1.88% from Rs 1,254.59 crore in FY23 to Rs 1,231.06 crore in FY24, primarily due to flood effects and hospital renovation. It then accelerated to Rs 1,393.57 crore in FY25, a 13.20% YoY growth, driven by successful acquisitions and increased activity at established units. Revenue increased further to Rs 808.65 crore in H1FY26 from Rs 691.50 crore in H1FY25 (a 16.94% increase), largely due to the growth in in-patient hospital receipts.

EBITDA Margin reflects competitive operational efficiency, though it has fluctuated. The margin stood at 31.11% in FY23 before contracting to 25.21% in FY24, mainly due to initial costs associated with new acquisitions and higher material costs. It improved to 26.71% in FY25 and remained stable at 26.85% in H1FY26, demonstrating resilient operational performance amid continuous expansion.

Profit After Tax (PAT) has also fluctuated, driven by acquisition-related expenses and operational scaling. PAT decreased by 33.38% from Rs 228.18 crore in FY23 to Rs 152.00 crore in FY24, primarily due to higher finance costs and operational losses in new subsidiaries. It subsequently recovered sharply to Rs 213.21 crore in FY25 (a 40.27% increase) due to revenue growth and reduced credit loss allowances. PAT continued this trend in the latest period, reaching Rs 139.14 crore in H1FY26.

PAT Margin clearly reflects the net financial impact of the growth strategy. The margin fell from 18.19% in FY23 to a low of 12.35% in FY24. It recovered to 15.30% in FY25 and further improved to 17.21% in H1FY26.

Return on Equity (RoE) has followed a trajectory mirroring profitability. RoE stood at 35.82% in FY23, falling to 18.25% in FY24, and then stabilising at 20.68% in FY25. For H1FY26, RoE was 11.64%.

Return on Capital Employed (RoCE) reflects the significant capital requirements of the sector. RoCE dropped from 26.78% in FY23 to 16.07% in FY24, rebounding to 17.47% in FY25. For H1FY26, RoCE was 9.55%.

The Debt to Equity Ratio has shown consistent improvement, moving from 0.79 in FY23 to 0.73 in FY24, and continued reaching 0.61 in FY25. It further reduced to 0.58 in H1FY26. This sustained reduction indicates that the company is effectively managing its leverage while pursuing its expansion and acquisition strategy.

Strengths and Risks of Park Medi World IPO

Let's examine the strengths and weaknesses to determine if the Park Medi World IPO is a good or bad investment for investors.

Strengths

• Second Largest Private Hospital Chain in North India: Park Medi World is positioned as the second largest private hospital chain in North India with an aggregate bed capacity of 3,000 beds, and is the largest private hospital chain in Haryana with 1,600 beds, as of March 31, 2025.

• Delivering High-Quality, Affordable Healthcare with Specialty Mix: The company operates on a vision to provide high-quality, affordable healthcare. It offers over 30 super specialty and specialty services, including internal medicine, neurology, urology, and oncology. This diverse mix minimizes concentration risk and reinforces its commitment to wellness for all.

• Proven Track Record of Acquiring and Integrating Hospitals: Park Medi World has successfully acquired and integrated eight hospitals and added 1,650 beds to its network across North India as of September 30, 2025. Acquisitions contributed 55.12% of its revenue from operations for the six months ended September 30, 2025, demonstrating the success of this strategy.

• Strong Operational and Financial Performance with Diversified Payor Mix: The company maintains financial efficiency, evidenced by an EBITDA Margin of 26.71% in Fiscal 2025. Revenue is diversified across payor categories, with Government Schemes and PSUs contributing 83.38% of revenue for the six months ended September 30, 2025.

• Doctor-led Professional Management Team with Deep Industry Experience: The company benefits from the experience and leadership of its founders: Dr Ajit Gupta has over 25 years of experience, and Dr Ankit Gupta has over 20 years of experience in the medical profession.

Risks

• Significant Contingent Liabilities and Exposure to Net Worth: The company has substantial financial exposure through contingent liabilities. As of September 30, 2025, contingent liabilities (excluding corporate guarantees) accounted for 11.66% of its net worth, while corporate guarantees given by the company and its Subsidiaries constituted 71.58% of its net worth. The materialization of these liabilities could adversely affect financial stability.

• High Attrition Rate Among Doctors: The business is highly dependent on doctors, nurses, and medical professionals. As of September 30, 2025, the attrition rate for doctors was 33.72% (with Resident Medical Officers at 52.02%). Failure to retain or attract qualified professionals, particularly senior doctors, could negatively impact the quality of services and results of operations.

• High Geographic Concentration of Revenue in Haryana: A significant portion of its revenue from operations is derived from hospitals in Haryana, which comprised 69.06% of revenue for the six months ended September 30, 2025. Any adverse economic, political, or regulatory developments in Haryana could have a disproportionately severe effect on the company's business and financial condition.

• Dependence on Consultants and Non-Exclusive Arrangements: The company relies on 562 consultants as of September 30, 2025, who work on a consultancy and non-exclusive basis, comprising 55.43% of its total doctors. The loss of these consultants, or potential conflicts of interest due to their parallel practices, may adversely affect patient footfall, quality of service, and business operations.

• Decline in Financial Metrics: The company experienced a decline in performance in Fiscal 2024 compared to Fiscal 2023, with a 1.88% decrease in revenue from operations and a 33.39% decrease in profit after tax from Rs 228.18 crore to Rs 152 crore. This decline was largely due to the increasing cost of materials consumed or services rendered and losses in some subsidiaries.

Strategies of Park Medi World IPO 

• Expand Hospital Network Through Organic and Inorganic Initiatives: The company aims to expand its hospital network using a cluster-based approach across North India. This includes plans for organic growth, like adding 200 beds in Ambal,a and inorganic growth through acquisitions to capitalize on market needs and leverage brand recognition for operational efficiencies.

• Grow Presence to Adjacent Markets: A specific focus is placed on expanding into adjacent markets like Uttar Pradesh, leveraging established regional influence. This strategy is demonstrated by the agreement to operate a 400-bed hospital in Gorakhpur and the acquisition of a 300-bed hospital in Kanpur.

• Focus on Scaling Operations and Improving Operational Efficiencies: The core strategy involves continuously improving utilization rates, notably increasing Average Revenue per Occupied Bed (ARPOB). This is achieved by investing in high-end medical equipment like the iMARS robotic system, introducing new clinical programs, and developing advanced super specialities such as kidney transplants, to attract a broader patient base and improve profitability.

• Retaining and Attracting Skilled and Experienced Doctors and Clinicians: The company plans to maintain high service quality by focusing on attracting and retaining qualified personnel. This involves a continuous program of training, collaboration with international experts, medical education programs, and providing resources to adopt global best practices.

Park Medi World IPO vs. Peers

Park Medi World reported Revenue from Operations of Rs 1,393.57 crore in FY25. This indicates a significantly smaller scale compared to industry leaders like Apollo Hospitals Enterprise Ltd. (Rs 21,816.50 crore) and Max Healthcare Institute Ltd. (Rs 8,667 crore). However, it positions the Company as the second largest private hospital chain in North India, making it competitive in the regional private hospital segment, falling in the range of peers such as Global Health Ltd. (Rs 3,694.35 crore) and Yatharth Hospital & Trauma Care Services Limited (Rs 885.65 crore).

In terms of core operating profitability, Park Medi World's EBITDA Margin of 26.71% in FY25 is highly competitive and is comparable to or better than many peers, including Fortis Healthcare Ltd. (20.10%) and Apollo Hospitals Enterprise Ltd. (14.01%). However, it trails slightly behind peers reporting peak margins, such as Max Healthcare Institute Ltd. (26.80%). The Company's PAT Margin of 15.30% is strong among the comparison group, trailing slightly behind Max Healthcare (15.40%) but substantially above Apollo Hospitals (6.86%).

The Company exhibits a strong profile in terms of capital efficiency, which reflects its low-capital-intensity regional model. Park Medi World recorded an impressive Return on Equity (RoE) of 20.68% and a competitive Return on Capital Employed (RoCE) of 17.47% in FY25. This performance places its RoE comparable to major peers like Apollo Hospitals (22.32%) and Fortis Healthcare (18.96%). 

Objectives of Park Medi World IPO

The offering consists of a total of 5,67,90,123 shares worth Rs 920 crores, out of which the offer for sale of 92,59,259 shares is valued at Rs 150 crores, and the fresh issue of 4,75,30,864 shares is valued at Rs 770 crores. The selling shareholders in this IPO, Dr Ajit Gupta, who will receive the offer for sale proceeds.

However, the fresh issue proceeds will be used for the following objectives:

1. Repayment or Prepayment of outstanding borrowings availed by the company or its subsidiaries (Rs 380 crores)

2. Capital expenditure towards development of a new hospital under Park Medicity (Subsidiary) (Rs 60.5 crores)

3. Capital expenditure towards the purchase of medical equipment by the company and its subsidiaries, Blue Heavens and Ratangiri (Rs 27.45 crores)

4. Funding Inorganic growth, Acquisitions and General Corporate Purposes totalling Rs 302.05 crores.

Park Medi World IPO Details

IPO Dates

Park Medi World IPO will be open for subscription from December 10, 2025, to December 12, 2025. The allotment of shares to investors will take place on December 15, 2025, and the company is expected to be listed on the NSE and BSE on December 17, 2025.

IPO Issue Price

Park Medi World is offering its shares in the price band of Rs 154 to Rs 162 per share. This means you would require an investment of Rs. 14,904 per lot (92 shares) if you are bidding for the IPO at the upper price band.

IPO Size

Park Medi World is issuing a total number of 5,67,90,123 shares valued at Rs 920 crores, out of which the fresh issue comprises 4,75,30,864 shares worth Rs 770 crores and the remaining 92,59,259 shares worth Rs 150 crores will be received by the selling shareholders in this IPO.

IPO Allotment Status

Investors who applied for the IPO can check their IPO allotment status on December 15, 2025, through the registrar's website, Kfin Technologies Limited, BSE, NSE, or through the stockbroker platform.

IPO Listing Date

The shares of Park Medi World are expected to be listed on the NSE and BSE on December 17, 2025.

IPO Application Link

Open demat account with Rupeezy today and enjoy a seamless experience when applying for the IPO. With an easy-to-use platform, Rupeezy makes the IPO application process quick and hassle-free.

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