About KRM Ayurveda
Incorporated in Delhi in Sep’2019, KRM Ayurveda has moved from a product-sales model towards a combination of Ayurvedic products and healthcare services. It treats kidney disorders, liver cirrhosis, diabetes, fatty liver and arthritis, among other conditions. The company reports operating 6 hospitals and 5 clinics; 3 hospitals are NABH-accredited. Its Kundli, Haryana facility makes classical and proprietary Ayurvedic medicines and nutraceuticals.
Investment Rationale
- Growing services contribution: Services revenue rose from INR 6.5 Cr. in FY24 to INR 27.3 Cr. in FY25, increasing its share of revenue from 9.7% to 35.7%. Management has shifted resources towards hospital-based services.
- Higher hospital utilisation: Reported bed occupancy increased from 29.41% in FY24 to 84.87% in FY25, while hospital revenue rose from INR 5.3 Cr. to INR 25.8 Cr.
- Telemedicine and facilities: The company uses teleconsultation to direct patients to its hospitals and clinics. It also manufactures its own medicines at a captive facility in Haryana.
- Qualified workforce: The report lists 31 qualified Ayurvedic physicians and 59 certified Ayurvedic therapists.
- Industry outlook cited: The report cites RHP estimates that the Indian AYUSH market could expand from $43.3 Bn. to $200 Bn. by 2030.
Business Model and Operations
The company combines inpatient and outpatient care, Panchakarma therapies, specialized clinics, wellness packages, medicine sales, and diet and lifestyle counselling. Its product mix is shifting as it expands services: products accounted for 64.3% of FY25 revenue, compared with 90.3% in FY24. The report attributes the FY24 revenue decline to the strategic shift away from product sales and towards hospital services.
Government schemes are an important source of hospital services revenue. The report states that around 80%+ of hospital services revenue comes through ECHS and CGHS empanelment, with payment cycles of about 150 to 180 days. KRM Ayurveda’s geographic revenue table shows Delhi revenue declining from INR 51.3 Cr. in FY23 to INR 22.2 Cr. in FY25, while Haryana revenue rose from INR 3.1 Cr. to INR 21.0 Cr. over the same period.
KRM Ayurveda Key Financials
| Particulars (INR Cr.) | FY23 | FY24 | FY25 | Sep’25 |
|---|---|---|---|---|
| Revenue (excl. other inc.) | 89.3 | 67.2 | 76.6 | 48.4 |
| Growth Rate Y-o-Y % | (24.8%) | 14.0% | ||
| EBITDA (excl. other inc.) | 11.0 | 7.3 | 19.1 | 12.8 |
| PAT | 7.6 | 3.4 | 12.1 | 8.1 |
| Gross Margin % | 79.1% | 85.1% | 87.6% | 82.5% |
| EBITDA % (excl. other inc.) | 12.4% | 10.9% | 25.0% | 26.5% |
| PAT % | 8.5% | 5.0% | 15.7% | 16.7% |
| Debt (Short+Long) | 19.9 | 23.2 | 31.2 | 25.1 |
| Debt/Equity | 2.4x | 2.0x | 1.3x | 0.7x |
| ROE % | 165.1% | 33.9% | 67.9% | 21.8% |
| ROCE % | 40.3% | 20.8% | 43.3% | 21.8% |
| CFO / EBITDA % | 31.8% | (12.2%) | (0.1%) | 23.7% |
FY25 revenue and profitability recovered from FY24, while the company reported INR 48.4 Cr. revenue and INR 8.1 Cr. PAT for Sep’25.
Valuation
The valuation page gives an IPO market capitalisation of INR 287 Cr. and a current market capitalisation of INR 485 Cr. It lists FY26 PE at 30.3x and FY27 PE at 22.5x, alongside estimated FY26 revenue of INR 100 Cr. and PAT of INR 16.0 Cr., and FY27 revenue of INR 135 Cr. and PAT of INR 21.6 Cr. The note does not state a target price, upside or recommendation.
- INR 485 Cr.
- Current market capitalisation
- 30.3x
- FY26 PE
- 22.5x
- FY27 PE
Key Risks
- Related-party sales: Related-party transactions represented 30.8% of revenue in FY25; the report names Karma Life Care LLC and Karma Online Services LLC.
- Working-capital requirements: The business needs inventory to support hospital services, while ECHS and CGHS payment cycles of 150 to 180 days contribute to higher receivables.
- Cash conversion: CFO / EBITDA was (12.2%) in FY24 and (0.1%) in FY25; the report links the negative figures to increases in receivables and inventory during the shift to services.
- Promoter litigation: The report cites outstanding consumer complaints against promoter Dr. Puneet Dhawan concerning alleged medical negligence and patients who lost their lives after medicines or treatment prescribed by the promoter.
- Execution and operating costs: Attrition was 78.5% in FY24 and ~32% in FY25. Advertisement expense was 29.0% of revenue in FY24 and 20.0% in FY25; the report also flags the challenge of maintaining consistent quality across locations.
Management
Dr. Puneet Dhawan is Promoter & MD. The report says he holds a Bachelor of Ayurvedic Medicine & Surgery from the University of Delhi and established Karma Ayurveda in Delhi in 2013. Mrs. Tanya Dhawan is a Non-Exec Director, and Mr. Sanchit Hans is a Whole Time Director. Mrs. Vandana Gupta and Ms. Laxmi are listed as Independent Directors.
Shareholding
| Particular | Pre-Issue % | Post-Issue % |
|---|---|---|
| Promoter & Promoter Group | 92.16% | 67.28% |
| Public | 7.84% | 32.72% |
The report states that the shares listed on the NSE SME exchange on 29-Jan’26. It records an IPO price band of INR 135/- and a listing price of INR 172 (~27.5% premium).
Peer Comparison
The report names Jeena Sikho Lifecare and Vaidya Sane Ayurved Laboratories as listed peers. It notes Jeena Sikho had 58 operational hospitals and 2,290 operational beds, and had reported positive CFO / EBITDA over FY21 to FY25. The comparison also says KRM Ayurveda matches Jeena Sikho in average revenue per bed, while Jeena Sikho has a lower contribution from government panel revenue and a better working-capital cycle.
Our View
KRM Ayurveda’s increasing services contribution and higher reported hospital occupancy accompany a recovery in FY25 revenue and profitability. The note also highlights long government-scheme payment cycles, related-party sales and promoter litigation. It does not provide a recommendation or share target price.