Paras has 86% of capacity in Tier 2-and-beyond cities

Paras Healthcare Limited has 1,911 of its 2,211 hospital beds in Tier 2-and-beyond cities as of Q1 Fiscal 2027, equal to 86% of bed capacity. Paras had seven of eight operational hospitals outside Tier 1 cities, making non-metro markets central to its network and to the execution of its disclosed 800-bed expansion plan.

How concentrated is Paras in Tier 2-and-beyond cities?

Paras is concentrated in Tier 2-and-beyond cities, where it had seven of eight hospitals and 1,911 of 2,211 beds in Q1 Fiscal 2027. The distribution equals 88% of hospitals and 86% of bed capacity outside Tier 1 cities. Its one Tier 1 hospital had 300 beds, representing the remaining 14% of capacity.

The comparison uses the 7th Pay Commission classification cited in the industry material. Tier 1 includes Delhi NCR, Mumbai MMR, Bangalore, Pune, Hyderabad, Chennai, Kolkata and Ahmedabad; Tier 2 includes the next 88 cities, and Tier 3 includes all remaining cities. The reported counts cover operational hospitals in India and exclude hospitals outside India, hospitals under construction, heart centres, clinics and dialysis centres.

Paras reported the same city-tier mix in Fiscal 2026 and Q1 Fiscal 2027. It had one Tier 1 hospital, seven Tier 2-and-beyond hospitals, 300 Tier 1 beds and 1,911 Tier 2-and-beyond beds in both periods. That consistency indicates that the concentration reflects the established network rather than a reported change in capacity or city classification during the quarter.

How does Paras compare with other hospital chains by city tier?

Paras has a more non-metro-weighted bed base than most mapped chains with a disclosed city-tier bed split. Its 86% Tier 2-and-beyond share exceeded the disclosed shares for KIMS at 52%, Manipal at 54%, Medanta at 50%, Apollo at 42%, Fortis at 23%, Max at 28%, Narayana at 32% and Yatharth at 22% in Q1 Fiscal 2027.

The comparison has limits because reporting is not uniform. Aster and Jupiter did not disclose a city-tier bed split for Q1 Fiscal 2027. Livasa and Regency reported all five and all six hospitals, respectively, in Tier 2-and-beyond locations, but their bed totals were stated as 750-plus and 1,000-plus rather than exact figures. Paras nevertheless had the highest disclosed non-metro bed concentration among the larger chains with exact bed totals in the comparison.

The absolute scale differs substantially. KIMS had 4,340 Tier 2-and-beyond beds out of 8,299 total beds, while Manipal had 7,041 out of 13,140 and Medanta had 1,864 out of 3,737. Paras had a smaller 1,911-bed non-metro base, but those beds made up a larger proportion of its 2,211-bed network.

This mix means Paras must build clinical and referral capacity across markets outside the eight Tier 1 cities. The industry review identifies shortages of specialised doctors, particularly in rural areas, and estimates India’s current bed density at 16 beds per 10,000 people against 33 beds per 10,000 needed to reach the cited global average. Sustaining the city-tier position depends on staffing and operating multi-specialty facilities where unmet demand can be converted into patient volumes.

Which regions and cities support Paras’s non-metro footprint?

Paras operated five hospitals in North India and three in East India in Q1 Fiscal 2027, with no hospitals reported in South or West India. Its capacity was 1,419 beds in the North and 792 beds in the East, adding to the 2,211-bed total. The company therefore had all reported capacity in two regions under the source’s regional definitions.

North India in the comparison includes Haryana, Jammu and Kashmir, Rajasthan and Uttar Pradesh, while East India includes Bihar and Jharkhand. Paras operates across Haryana, Bihar, Uttar Pradesh, Rajasthan, Jharkhand and Jammu and Kashmir. This regional distribution adds a geographic concentration to the 86% Tier 2-and-beyond capacity concentration.

The Fiscal 2026 city table identifies 435 Paras beds in Kanpur, 392 in Patna, 300 in Gurugram, 300 in Ranchi, 284 in Panchkula, 200 each in Srinagar and Udaipur, and 100 in Darbhanga. These locations total 2,211 beds. Gurugram accounts for the 300 Tier 1 beds in the city-tier comparison, while the other reported locations account for the 1,911 Tier 2-and-beyond beds.

The 86% ratio is based on bed capacity, not operational beds. Paras reported total capacity of 2,211 beds but 1,502 operational beds in Q1 Fiscal 2027, leaving a 709-bed difference between the two measures. The source does not provide a city-tier split for operational beds, so it does not establish what proportion of currently operational beds was in Tier 2-and-beyond cities.

What must happen for Paras’s Tier 2 strategy to persist?

Paras must convert its non-metro capacity into patient activity as its network expands. It reported 778,707 outpatient consultations and 115,496 inpatient discharges in Fiscal 2026, compared with 638,193 consultations and 93,170 discharges in Fiscal 2025. In Q1 Fiscal 2027, consultations were 225,734 and inpatient discharges were 34,354, compared with 178,977 and 26,362 in Q1 Fiscal 2026.

Paras also reported average revenue per occupied bed, or ARPOB, of Rs 47,600 per occupied bed per day in Fiscal 2026, compared with Rs 43,600 in Fiscal 2025 and Rs 42,100 in Fiscal 2024. ARPOB measures revenue per occupied bed day. Its average length of stay was 3.333 days in Fiscal 2026, compared with 3.383 days in Fiscal 2025, showing that the reported ARPOB increase occurred without a longer average inpatient stay.

Healthcare financing remains relevant to demand and collections in these markets. The industry material states that nearly 580 million people had health insurance coverage in Fiscal 2025, compared with 288 million in Fiscal 2015, while health-insurance penetration was 41% in Fiscal 2024. It also identifies 44% out-of-pocket expenditure and delayed reimbursements as sector challenges, although it notes that Pradhan Mantri Jan Arogya Yojana claim-settlement timelines are being implemented.

Paras has disclosed plans to add 300 beds in Fiscal 2027 and 500 beds in Fiscal 2028, for a total planned addition of 800 beds. The plan does not identify the cities, regions or city tiers for the additions. The existing 86% Tier 2-and-beyond capacity share would remain broadly intact only if future capacity is directed mainly to non-metro locations, or if Tier 1 additions remain proportionately smaller.

Conclusion

Paras’s market position is defined by the location of its 2,211-bed network as much as by its size. With 1,911 beds and seven of eight hospitals in Tier 2-and-beyond cities, Paras has a substantially greater non-metro concentration than most comparable chains with disclosed city-tier bed data, while its operations remain confined to North and East India.

The next disclosed milestone is the planned addition of 800 beds across Fiscal 2027 and Fiscal 2028. Whether those beds are placed in Tier 2-and-beyond markets, and whether the 709-bed gap between total capacity and 1,502 operational beds narrows, will determine how the present city-tier footprint develops.