ABH Healthcare Ltd IPO

ABH Healthcare Ltd IPO closed on 27 Aug 2026. Allotment 28 Aug 2026, listing 1 Sept 2026. Price band ₹96–₹102, lot 1200 shares, GMP +₹0 (0%). Track allotment on Allotly.

About ABH Healthcare Ltd

ABH Healthcare Limited operates a hospital providing tertiary medical care in Ferozepur, Punjab. The company operates the 150-bed Anil Baghi Hospital, which was established in 1985 and acquired by the company in 2022. The hospital provides services across 25 medical specialities, including cardiac sciences, neurology, gastroenterology, laparoscopic and bariatric surgery, urology, pulmonology, nephrology, orthopaedics and joint replacement, obstetrics and gynaecology, critical care, dentistry, physiotherapy, dermatology, laboratory investigations and radiology. The hospital is empaneled with over 30 private and public health insurance companies and third-party administrators, as well as various government schemes. It received NABH accreditation in 2021 and NABH Digital Standards accreditation in FY25. The company also uses a patient portal, website, Computerised Physician Order Entry…

Strengths

• The company is led by a management team with experience in healthcare and clinical practice. Promoter and Whole-time Director Dr Kamal Baghi has around four decades of experience in the healthcare sector, while Dr Saurabh Baghi and Dr Vaishali Saini have clinical training and work experience in the United States.
• As of June 30, 2026, the company had 37 doctors and 101 nurses. Over 30% of its doctors had been associated with the company for more than five years, while some senior doctors have been associated with the hospital for around five to ten years.
• The hospital provides services across 25 specialties, including internal medicine and critical care, cardiology, neurosurgery, general surgery, orthopaedics and joint replacement, gastroenterology, nephrology, neurology, obstetrics and gynaecology, pulmonology and paediatrics. This gives the company multiple sources of inpatient revenue.
• The company derives inpatient revenue from government schemes and PSUs, insurance companies and third-party administrators, as well as self-pay patients. In FY26, these categories accounted for 52.40%, 9.54% and 31.85%, respectively, of revenue from operations on a standalone basis. The share of revenue from government schemes and PSUs has been rising over the past three years.
• The company is empaneled with more than 30 private and public health insurance companies and third-party administrators. It is also empaneled under schemes and institutions including ECHS, Railways, FCI, BSNL and Ayushman Bharat - Sarbat Sehat Bima Yojana.
• The company has implemented electronic health records, computerised physician order entry, a patient portal, hospital information systems, and cloud-based applications. It also claims to have digitised various parts of the patient and clinical workflows and uses performance indicators through its quality management system.
• The company's EBITDA increased from Rs 6.89 crore in FY24 to Rs 14.44 crore in FY26, while profit after tax increased from Rs 1.65 crore in FY23 to Rs 5.70 crore in FY26.

Risks

• The company has a limited operating and financial history as a corporate entity, having been specifically incorporated in March 2021 for the purpose of acquiring the business of Anil Baghi Hospital from its promoter in March 2022. This short working history may make it difficult for investors to assess the company's historical performance and future prospects based on its own track record. Past performance of the hospital, which was operated as a sole proprietorship before the acquisition, may not be indicative of the company's future performance.
• The company's PAT has remained a relatively small portion of its revenue from operations, accounting for 3.99% of revenue in FY24, 10.86% in FY25, and 10.74% in FY26. While revenue from operations increased from Rs 41.38 crore in FY24 to Rs 49.27 crore in FY25 and Rs 52.51 crore in FY26, PAT stood at Rs 1.65 crore, Rs 5.35 crore and Rs 5.64 crore, respectively. Investors should keep this level of profit generation relative to revenue in view when assessing the company's future earnings and return potential.
• The company derives 100% of its revenue from operations from its only hospital in Ferozepur, Punjab. Revenue from operations at the hospital stood at Rs 51.04 crore in FY26 and Rs 48.92 crore in FY25. Any adverse economic or political developments, regional slowdown, unrest, disruption, regulatory changes, natural calamities or increased competition in Ferozepur and surrounding areas could negatively affect the company's business and financial condition.
• The company is dependent on a limited number of suppliers for medicines and consumable items, with its top five suppliers accounting for 83.85% of total purchases in FY26, compared with 80.53% in FY25 and 65.56% in FY24. The company does not have long-term supply contracts with its suppliers and generally purchases through purchase orders. Any delay or disruption in supplies, increase in procurement costs, or inability to find alternative suppliers on acceptable terms could adversely affect its operations and profitability.
• A significant portion of the company's revenue comes from contracts with government departments, insurance companies, third-party administrators, and corporations. These contributed Rs 31.61 crore (61.94%) in FY26, Rs 26.63 crore (54.45%) in FY25, and Rs 21.76 crore (52.59%) in FY24 to revenue from operations from healthcare services. Any failure to renew these contracts, agree on pricing or delivery terms, or resolve commercial disputes could adversely affect the company's revenue and profitability.
• The company operates in a highly regulated healthcare industry and is required to maintain various approvals, licenses, registrations, permits, and accreditations. These approvals are generally subject to renewal, while its NABH and NABH Digital Standards accreditations may also need to be maintained or renewed. Failure to comply with applicable regulations, renew required approvals or retain these accreditations could result in penalties, restrictions on operations or adverse effects on the company's business and financial condition.
• The company has a high debt-to-equity ratio, which stood at 3.20 in FY26, 3.62 in FY25, and 5.69 in FY24 on a consolidated basis. The company relies on working capital limits, term loans and unsecured borrowings from promoters and third-party lenders. Any difficulty in securing debt financing on favourable terms or generating sufficient cash flows to service existing borrowings could adversely affect its liquidity, profitability and financial condition.
• The company, its directors, promoters and controlled entities are involved in certain ongoing litigation and claims pending before competent authorities. Any adverse decision could result in penalties or other liabilities and hurt the company's reputation, finances and business.
• The company is dependent on a few medical specialities for a substantial portion of its inpatient revenue. In FY26, internal medicine alone contributed Rs 26.74 crore (52.40%) of revenue from operations. A decline in patient volumes, loss of key medical professionals, inability to adopt newer medical techniques, medical negligence, or regulatory changes affecting these specialities could adversely affect the company's financial performance.
• The company has recorded negative cash flows from investing activities in each of the last three fiscals, amounting to Rs 9.14 crore in FY26, Rs 4.53 crore in FY25, and Rs 13.06 crore in FY24. These outflows are in the context of the company's investments in increasing its hospital bed capacity and medical infrastructure, including medical equipment. However, sustained negative cash flows over the long term or inability to generate sufficient cash from operations could adversely affect its ability to fund capital expenditure, repay borrowings and meet other financial requirements.
• As of June 30, 2026, the company had total outstanding borrowings of Rs 52.33 crore. Any difficulty in servicing these borrowings or securing financing on favourable terms could adversely affect the company's liquidity and financial condition.

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