Paras Healthcare to Expand Bed Capacity by 36% by 2028 Amid IPO Plans
Paras Healthcare aims to increase bed capacity to 3,011 by FY28, aligning with its IPO strategy and focus on North India.
Paras Healthcare Ltd, a prominent player in the Indian healthcare sector, is gearing up for a strategic expansion as it prepares for an Initial Public Offering (IPO) worth Rs 1,800 crore. The company plans to increase its bed capacity by 36% to 3,011 by March 2028, up from 2,211 beds as of March 2026. This move is part of a broader strategy to strengthen its footprint in North India, where healthcare infrastructure is still developing.
Expansion Plans and Strategic Focus
The expansion includes the development of a 300-bed hospital in Gurugram by FY27 and a 500-bed facility in Ludhiana by FY28. Both projects are structured under long-term lease agreements, which align with the company's asset-light approach. Paras Healthcare currently operates eight hospitals across five states and one Union Territory, focusing on areas with low bed density and limited access to advanced medical care.
The company's strategy emphasizes disciplined capital deployment and financial return thresholds. It aims to optimize its balance sheet strength and ensure long-term scalability. As of March 2026, Paras Healthcare reported a capital expenditure of Rs 7.63 million per bed, reflecting its commitment to cost-effective expansion.
Innovative Models and Revenue Streams
Paras Healthcare employs a mix of owned and asset-light models, with six of its eight hospitals operating from leased premises. The network includes revenue-sharing arrangements and public-private partnerships (PPP), allowing the company to maintain financial flexibility while expanding its reach.
The company's hospital design focuses on maximizing clinical space efficiency by incorporating shared rooms and compact administrative areas. Non-core services, such as laundry and transportation, are outsourced to further enhance capital efficiency.
Financial Performance and IPO Details
In terms of financial performance, high-acuity specialties like cardiac sciences, oncology, and neurosciences have significantly contributed to the company's revenue. These specialties accounted for 74.70% of revenue from operations in FY26, showing a consistent increase from previous years.
The proposed IPO includes a fresh issue of equity shares amounting to Rs 500 crore and an Offer For Sale (OFS) of equity shares worth Rs 1,300 crore by existing shareholders. The funds raised will be used to repay certain borrowings, invest in the company's wholly-owned subsidiary PMHPL for debt repayment, and for general corporate purposes.
As Paras Healthcare awaits approval from the Securities and Exchange Board of India (SEBI) for its IPO, the company remains focused on maintaining financial discipline while pursuing scalable growth through its innovative expansion strategies.