Healing the Portfolio: A Deep Dive into the KRM Ayurveda IPO

Admin
Jan 20
3 min read

As we move further into 2026, the intersection of traditional wisdom and modern healthcare continues to be a hotbed for investment. Today, we are analyzing the KRM Ayurveda Limited IPO, a significant entry in the NSE SME segment.

KRM Ayurveda isn't just about herbal remedies; it's a multi-city healthcare network that has successfully bridged the gap between ancient Vedic practices and 21st-century telemedicine. With the global "wellness economy" booming, let's see if this IPO is the right prescription for your investment goals.

Company Profile: Ancient Wisdom, Modern Reach

Incorporated in 2019, KRM Ayurveda operates a network of multispecialty Ayurvedic hospitals and clinics. While they started with a focus on specialized kidney care, they have since expanded into a comprehensive holistic healthcare provider.

Integrated Model: Their ecosystem includes in-patient (IPD) and out-patient (OPD) services, Panchakarma therapies, and yoga programs.
Product Line: Beyond services, they manufacture their own herbal medicines, supplements, and wellness products.
Digital Growth: A standout feature of their business is the telemedicine platform, which allows them to serve patients across India and even international markets, significantly lowering the barrier to entry for specialized Ayurvedic care.

KRM Ayurveda IPO: The Numbers You Need

The IPO is a 100% fresh issue, meaning all the capital raised will go directly into the company’s growth initiatives.

Detail	Information
IPO Dates	January 21, 2026 – January 23, 2026
Price Band	₹128 – ₹135 per share
Lot Size	1,000 Equity Shares
Min. Investment (Retail)	₹1,35,000 (1 Lot)*
Issue Size	₹77.49 Crore
Listing Platform	NSE SME
Face Value	₹10 per share

Investor Note: For SME IPOs, the minimum application is one lot. At the upper price band, this equals ₹1,35,000. Investors applying for more than ₹2,00,000 (i.e., 2 lots or more) will fall under the HNI/NII category.

Financial Performance: A Healthy Recovery

KRM Ayurveda’s financials show a company that is successfully scaling its profitability.

Revenue: After a slight dip in FY24, revenue climbed to ₹76.55 Cr in FY25.
Profitability: PAT (Profit After Tax) saw a massive jump to ₹12.1 Cr in FY25, compared to just ₹3.41 Cr the previous year.
Efficiency: The company boasts a stellar Return on Equity (RoE) of 50.67%, indicating very effective management of shareholder funds.

Use of Proceeds: Investing in the Future

The company has a clear roadmap for the ₹77.49 Crore it aims to raise:

Telemedicine Expansion: ₹13.67 Cr for constructing and developing telemedicine operational facilities.
Working Capital: ~₹18–22 Cr to fuel day-to-day operations and inventory.
Debt Repayment: ₹12.5 Cr to clear existing borrowings, which will improve their interest coverage ratio.

Grey Market Premium (GMP) & Market Sentiment

As of January 20, 2026, the sentiment around KRM Ayurveda is quite optimistic.

Current GMP: ₹21 per share
Estimated Listing Price: ₹156
Potential Gain: ~15.6%

The double-digit premium suggests that the market values the company’s niche position in the AYUSH (Ayurveda, Yoga, Unani, Siddha, and Homeopathy) sector.

Investment Recommendation: The Final Verdict

The Bull Case:

KRM Ayurveda is riding a massive wave of "Preventative Healthcare." Their shift towards telemedicine is a brilliant move to scale an otherwise labor-intensive hospital business. High RoE and a significant profit jump in FY25 make the valuation look attractive at the current price band.

The Bear Case:

The company faces geographic concentration, with nearly 68% of its revenue coming from Delhi and Haryana. Additionally, they operate on an asset-light model where most premises are leased, posing a risk if leases aren't renewed. The high employee attrition rate (reported at ~78% in FY24) is also a red flag for service-quality consistency.

Recommendation: Subscribe for Listing Gains and Long-Term Growth. For investors comfortable with the risks of the SME segment, KRM Ayurveda offers a unique play in a high-growth sector. The 15%+ GMP provides a decent safety margin for listing day.