Nephrocare Health Services Limited IPO

Nephrocare Health Services Limited is India’s largest dialysis service provider. The company offers comprehensive dialysis care, ranging from diagnosis to treatment and wellness programs, including hemodialysis, home dialysis, and mobile dialysis, supported by pharmacy services

Key Business Highlights:

• Market Leadership: As of September 30, 2025, the company is the largest dialysis service provider in India in terms of the number of patients served, clinics, cities covered, and treatments performed. It is also the largest dialysis service provider in Asia and the fifth largest globally based on the number of treatments performed in Fiscal 2025.

• Network: The company operates a global network of 519 clinics across four countries: India (468 clinics), the Philippines (41 clinics), Nepal (6 clinics), and Uzbekistan (4 clinics).

• Operating Models: The company operates its clinics through three primary models:

1. Captive Clinics: Operating dialysis centers within private hospitals under contractual arrangements.

2. Public Private Partnerships (PPP): Operating clinics in government hospitals through competitive bidding.

3. Standalone Clinics: Independent clinics established and operated by the company

B) Revenue Streams and Financial Analysis

For the six-month period ended September 30, 2025, the company reported a total revenue from operations of ₹ 4,735.01 million.

Revenue Breakdown by Geography (Six months ended Sept 30, 2025):

• India: Contributed ₹ 2,842.83 million (60.04% of revenue).

• Outside India: Contributed ₹ 1,892.18 million (39.96% of revenue), primarily driven by operations in the Philippines and Uzbekistan,.

Revenue Breakdown by Clinic Model (Six months ended Sept 30, 2025): The majority of the company's revenue is derived from providing dialysis and related services.

1. Captive Clinics (In-Hospital): This is the largest segment, contributing ₹ 1,728.67 million (approximately 36.51% of revenue from operations).

2. Public Private Partnerships (PPP): Revenue from government contracts contributed ₹ 1,465.80 million (approximately 30.96% of revenue from operations).

3. Standalone Clinics: While specific consolidated revenue for standalone clinics is part of the remaining balance, the company notes that 52.41% of its clinics operate under a revenue-sharing model (Captive), while it has been expanding its standalone footprint internationally,.

Profitability: For the six-month period ended September 30, 2025, the company reported a profit for the period of ₹ 142.28 million.

C) Key Risk Factors

The following critical risks have been identified in the RHP:

1. Dependence on Captive Clinics: A significant portion of revenue (36.51%) comes from captive clinics operated within private hospitals. Cancellation or non-renewal of these contracts by partner hospitals (who may decide to operate in-house) could materially affect the business,.

2. PPP Tender Risks: The company derives 30.96% of its revenue from PPP contracts. These are awarded via competitive bidding. There is no assurance the company will qualify for or win future tenders, or that existing contracts will be renewed upon expiry,.

3. Brand Confusion: The company’s name is similar to another listed entity, "Nephro Care India Limited," with which it has no association. This may lead to investor confusion regarding the company's identity.

4. Regulatory & Operational Risks: The business is subject to medical risks, including potential litigation regarding service quality or negligence. Non-compliance with safety, health, and environmental regulations across multiple jurisdictions (India, Philippines, Uzbekistan) could lead to penalties,.

5. Talent Retention: The business is highly dependent on attracting and retaining healthcare professionals, including nephrologists and technicians. High attrition rates (27.68% for nephrologists in the six months ended Sept 2025) pose a significant operational risk,.

6. International Expansion Risks: A substantial portion of revenue (39.96%) comes from outside India. Risks include foreign currency fluctuations, geopolitical instability, and navigating complex foreign regulatory regimes,.

7. FEMA Compliance: There have been instances of delays in filings with the RBI under Foreign Exchange Management Act (FEMA) laws regarding past share transactions, for which compounding applications have been filed.

D) Objects of the Issue (Use of Proceeds)

• Type of Issue: The IPO comprises a Fresh Issue of up to ₹ 3,534.05 million and an Offer for Sale (OFS) of up to 11,253,102 Equity Shares.

• Offer for Sale: The proceeds from the OFS will go to the Selling Shareholders (including promoters like Bessemer Venture Partners Trust and Investcorp), and the company will not receive any funds from this component.

Use of Net Proceeds from Fresh Issue: The company proposes to utilize the Net Proceeds from the Fresh Issue for the following specific purposes:

1. New Clinic Expansion: An estimated ₹ 1,291.06 million will be used for capital expenditure to set up 167 new dialysis clinics in India,,.

2. Repayment of Borrowings: Approximately ₹ 1,359.99 million is allocated for the pre-payment or scheduled repayment, in full or part, of certain outstanding borrowings availed by the Company.

3. General Corporate Purposes: The remaining balance will be used for general corporate purposes.