Paras Healthcare Limited subsidiaries report FY26 negative net worth

Paras Healthcare Limited’s two wholly owned hospital subsidiaries reported combined negative net worth of Rs 262.349 crore and total borrowings of Rs 474.291 crore in Fiscal 2026 ended March 31, 2026. Combined revenue rose to Rs 248.453 crore from Rs 165.841 crore in Fiscal 2025, but both subsidiaries continued to report losses after tax.

What was Paras Healthcare’s subsidiaries’ FY26 financial position?

Paras Healthcare’s two subsidiaries ended Fiscal 2026 with negative combined net worth of Rs 262.349 crore, after a deficit of Rs 210.310 crore in Fiscal 2025. Net worth is the sum of equity share capital and reserves excluding revaluation reserve. Paras Healthcare (Ranchi) Private Limited, or PRHPL, accounted for Rs 173.022 crore, or 65.95%, of the Fiscal 2026 combined deficit.

Total borrowings of the two subsidiaries rose by Rs 68.230 crore, or 16.80%, to Rs 474.291 crore in Fiscal 2026 from Rs 406.061 crore in Fiscal 2025. PRHPL had Rs 252.526 crore of borrowings and Plus Medicare Hospitals Private Limited, or PMHPL, had Rs 221.765 crore. Paras Healthcare held 99.99% of the equity shares in each entity, with one share held by a nominee on its behalf.

How did Paras Healthcare’s Ranchi subsidiary perform in FY26?

PRHPL reported Fiscal 2026 revenue from operations of Rs 159.682 crore, up Rs 52.322 crore, or 48.73%, from Rs 107.360 crore in Fiscal 2025. Its loss after tax narrowed to Rs 17.396 crore from Rs 27.880 crore, although the subsidiary remained loss-making for the third reported year, following a Rs 32.651 crore loss in Fiscal 2024.

PRHPL’s negative net worth widened to Rs 173.022 crore at March 31, 2026, from Rs 155.675 crore a year earlier and Rs 127.765 crore at March 31, 2024. Negative reserves of Rs 173.032 crore exceeded its Rs 10 lakh equity share capital. Borrowings increased to Rs 252.526 crore in Fiscal 2026 from Rs 225.710 crore in Fiscal 2025 and Rs 167.648 crore in Fiscal 2024.

PRHPL operates Paras HEC Hospital in Ranchi under a public-private partnership with Heavy Engineering Corporation Limited, or HEC, a public sector undertaking. HEC provides the hospital land and PRHPL manages daily operations. The January 16, 2018 concession agreement gives PRHPL rights to finance, equip, operate and manage the project for 35 years, with two potential 10-year renewals; HEC may nominate one board director and approve changes in shareholding and management control.

What drove the Udaipur and Srinagar entity’s FY26 deficit?

PMHPL increased Fiscal 2026 revenue from operations by Rs 30.290 crore, or 51.79%, to Rs 88.771 crore from Rs 58.481 crore in Fiscal 2025. Its loss after tax narrowed to Rs 34.693 crore from Rs 54.358 crore in Fiscal 2025 and Rs 54.618 crore in Fiscal 2024. PMHPL’s Fiscal 2026 loss was Rs 17.297 crore higher than PRHPL’s Rs 17.396 crore loss.

PMHPL’s negative net worth expanded to Rs 89.327 crore in Fiscal 2026 from Rs 54.635 crore in Fiscal 2025 and Rs 29 lakh in Fiscal 2024. The entity had equity share capital of Rs 40 crore, which was offset by negative reserves of Rs 129.327 crore. Its borrowings rose by Rs 41.414 crore to Rs 221.765 crore in Fiscal 2026, after increasing from Rs 137.114 crore in Fiscal 2024 to Rs 180.351 crore in Fiscal 2025.

PMHPL owns Paras Hospital in Udaipur, which it has leased to Paras Healthcare, and leases and operates Paras Hospital in Srinagar. Srinagar commenced operations in June 2023 under a long-term lease. At March 31, 2026, Srinagar had 200 beds, including 168 operational beds and 67 intensive care unit, or ICU, beds, while Udaipur had 200 beds, including 169 operational beds and 52 ICU beds.

How do higher revenues compare with losses and borrowings?

The subsidiaries’ combined revenue rose Rs 82.612 crore in Fiscal 2026, while their combined loss after tax fell Rs 30.149 crore from Fiscal 2025. Revenue is income from operations during a financial year, whereas net worth reflects the reporting-date balance of share capital and reserves. The lower annual loss therefore did not prevent combined negative net worth from widening by Rs 52.039 crore during Fiscal 2026.

Borrowings increased by Rs 169.529 crore over the two fiscal years from Fiscal 2024 to Fiscal 2026, while combined revenue increased by Rs 122.410 crore over the same period. The disclosures establish the reported movements but do not provide a subsidiary-level repayment schedule or a plan to restore positive net worth. Revenue growth and the extent to which annual losses continue to narrow will affect whether accumulated negative reserves stop increasing.

What operating scale and arrangements support the subsidiaries?

Paras Healthcare’s subsidiaries covered three hospitals with 700 beds and 514 operational beds at March 31, 2026. PRHPL’s Ranchi hospital represented 300 beds, including 177 operational beds and 92 ICU beds. PMHPL’s Srinagar and Udaipur hospitals together represented 400 beds, including 337 operational beds and 119 ICU beds.

The operating arrangements differ across the three hospitals. Ranchi is run on HEC land under the 2018 concession agreement, Srinagar is operated on a long-term lease, and PMHPL owns Udaipur but leases that hospital to Paras Healthcare. The prospectus says the subsidiaries and Paras Healthcare operate in similar business lines, describes their common pursuits as synergistic, and states that no conflict of interest results from those pursuits.

Conclusion

Paras Healthcare’s Fiscal 2026 subsidiary disclosures show revenue expansion alongside continuing balance-sheet deficits. Combined revenue reached Rs 248.453 crore and the combined loss after tax declined to Rs 52.089 crore, but negative net worth rose to Rs 262.349 crore and borrowings reached Rs 474.291 crore at March 31, 2026.

The disclosed operating arrangements provide the next points to monitor: PRHPL’s 35-year Ranchi concession, PMHPL’s long-term Srinagar lease and its Udaipur lease to Paras Healthcare. The prospectus does not disclose a subsidiary-level debt repayment schedule or a stated plan to return either entity to positive net worth.