RAYS OF BELIEF LIMITED IPO

RAYS OF BELIEF LIMITED IPO closed on 3 Sept 2026. Allotment 4 Sept 2026, listing 8 Sept 2026. Price band ₹227–₹239, lot 62 shares, GMP +₹15 (6.28%). Track allotment on Allotly.

About RAYS OF BELIEF LIMITED

Rays of Belief Limited is a for-profit social enterprise that provides intervention plans for children with neurodevelopmental disorders (NDDs), including Autism Spectrum Disorder, ADHD, Down Syndrome, Cerebral Palsy, Intellectual Disability, Learning Disabilities and Global Developmental Delays. Its personalised intervention plans are based on each child's needs and condition severity. The company provides early intervention, parental guidance, occupational therapy, language therapy, and family support programmes through its centres and digital e-therapy programmes. Its services primarily cater to children aged 18 months to 12 years, with programmes for children up to 15 years focused on vocational and life skills. The company operates under the brand name Mom’s Belief and had 136 centres across 57 cities in 20 states and Union Territories in India as of March 31, 2026. It also has…

Strengths

• As of March 31, 2026, the company had 136 centres across 57 cities in 20 states and Union Territories in India, compared with 71 centres in FY24. The network includes centres across Tier 1, Tier 2, and Tier 3 cities, with a higher concentration in Tier 2 locations.
• Based on the CARE report, the company ranked first in India and seventh globally among listed players by the number of centres offering intervention plans for children with neurodevelopmental disorders as of March 31, 2026.
• As of March 31, 2026, the company had more than 340 full-time clinical professionals, including 74 developmental and clinical psychologists, 139 occupational therapists, 72 speech-language pathologists, and 50 special educators. The team also includes behaviour therapists and early childhood development professionals.
• The company’s revenue from operations increased from Rs 30.61 crore in FY24 to Rs 81.66 crore in FY26, representing a CAGR of 63.34%. EBITDA increased from Rs 1.49 crore to Rs 11.91 crore during the same period.
• The company provides intervention plans through its own centres, centres operated in partnership with licensed professionals, school collaboration centres and digital e-therapy programmes. Its centres are operated on leased premises and through school collaborations, which reduces the upfront investment required for establishing centres.
• The company claims to have an internal research and development (R&D) function with seven employees working on child progress tracking frameworks, parent guidance modules and developmental play-based activities. It also provides e-therapy and other programmes through digital platforms and has delivered virtual sessions to children across 13 countries outside India.
• The company has been operating since 2018 and has served more than 58,000 children since the commencement of operations. Its Mom’s Belief brand received the Innovative Practice Award from the Zero Project at the United Nations in Vienna in 2019 and was recognised among the most valued mother and child brands by the Times of India in 2020.

Risks

• The company operates its centres on leases with tenures ranging from 11 months to three years, while immovable capex accounts for 36% of total capex for Tier I centres, 33% for Tier II centres, 30% for Tier III centres and 3% for School Collaboration Centres. Any non-renewal or termination of leases, closure or relocation of centres could result in the company being unable to recover or reuse this expenditure, leading to write-offs and additional capex requirements.
• The company’s revenue is concentrated in certain geographies and city tiers. During FY26, centres in Uttar Pradesh, Delhi, and Karnataka contributed Rs 12.54 crore (15.36%) of its revenue from operations, while centres in Tier 2 cities contributed Rs 14.36 crore (17.58%). Any adverse political, geographical or economic developments, natural disasters, increased competition or changes in demand in these regions could adversely affect the company’s revenues and profitability.
• The company derived Rs 20.87 crore (25.56%) of its revenue from operations in FY26 from the export of support services to its holding company and corporate promoter, Carving Futures Pte. Ltd., and promoter group entity, Carving Futures Inc. Any adverse change in, or termination of, these agreements, including a reduction in the scope of services, revision of commercial terms, or delays in payments, could adversely affect the company’s revenue, profitability and cash flows.
• The company’s revenue significantly depends on three newly acquired centres in the United States, which contributed 50.21% of its revenue from operations in FY25 on a pro forma consolidated basis. Any deterioration in the performance of these centres, or inability to retain key personnel or clients associated with them, could adversely affect the company’s revenue, profitability and financial condition.
• The company operates in a specialised and sensitive domain involving intervention plans for children with neurodevelopmental disorders and has served upwards of 58,000 children since commencing operations in 2018. Any care quality deficiencies, health and safety incidents, misconduct by clinical professionals or employees, or failure to maintain appropriate standards of care could lead to legal liabilities, reputational damage, loss of referrals and users, and adversely affect its business and financial performance.
• The company has reported negative cash flows from operating activities of Rs. 1.94 crore and Rs. 1.81 crore in FY26 and FY25, respectively, compared with a positive cash flow of Rs. 2.10 crore in FY24. The negative operating cash flow was primarily due to timing differences between revenue recognition and actual collections and an increase in accrued income and trade receivables. Additionally, the company recorded negative cash flows from investing activities of Rs 6.18 crore, Rs 2.04 crore and Rs 2.75 crore in FY26, FY25, and FY24, respectively, primarily due to capital expenditure for establishing Company Learning Centres, investments in other financial assets, and bank deposits with maturities exceeding three months. Any continuation of negative cash flows could adversely affect the company’s business, financial condition, and results of operations.
• The company’s trade receivables are Rs 18.09 crore as of March 31, 2026. Trade receivables represented 22.15% of revenue from operations in FY26. Any delay in collecting outstanding dues could hurt the company’s liquidity, cash flows, and working capital requirements.
• Low public awareness and social stigma surrounding neurodevelopmental disorders (NDDs), particularly in semi-urban and rural areas, may discourage families from seeking diagnosis or intervention services for their children. Further, the company’s services primarily target children up to 15 years of age, limiting its addressable market to a specific age group. Any continued stigma, misconceptions or lack of reliable information could reduce service uptake, result in underutilisation of its centres and adversely affect its revenue and growth prospects.
• Employee benefit expenses accounted for 52.48% of the company’s total expenses in FY26, amounting to Rs 39.45 crore, compared with Rs 21.11 crore (58.34%) in FY25 and Rs 15.97 crore (52.08%) in FY24. Any substantial increase in employee costs due to competition for qualified clinical professionals, statutory changes, inflation or the need to expand its workforce may reduce the company’s profitability, particularly if it is unable to increase therapy fees proportionately.
• As of March 31, 2026, the company had total unsecured borrowings of Rs 3.61 crore, with no secured borrowings. Any inability to comply with the repayment terms or other covenants under its financing arrangements could adversely affect the company’s business and financial condition.

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