Paras Health uses Rs 375 crore IPO proceeds to repay borrowings

Paras Healthcare Limited (Paras Health) deployed Rs 375 crore, or 75% of its Rs 500 crore initial public offering proceeds, towards part repayment of borrowings, management said on November 5, 2026. The action was disclosed with its first unaudited consolidated results after listing on October 28, 2026.

How much of Paras Health's IPO proceeds went to borrowings?

Paras Health used Rs 375 crore of its Rs 500 crore IPO proceeds for part repayment of borrowings. Managing Director Dr. Dharminder Kumar Nagar disclosed the deployment while commenting on results for the quarter and six months ended September 30, 2026.

The Rs 375 crore payment represents 75% of the stated IPO proceeds. Management said the repayment made the balance sheet “significantly stronger,” but the announcement does not state the borrowing balance after the payment, the lenders concerned, repayment dates, interest rates or the expected change in finance costs.

Paras Health listed on the stock exchanges on October 28, 2026, before making its November 5 results announcement. The filing does not specify a use for the other Rs 125 crore of the disclosed Rs 500 crore IPO proceeds, nor does it say whether that amount remains available or has been allocated elsewhere.

What were Paras Health's Q2 FY27 results?

Paras Health reported consolidated revenue from operations of Rs 510.9 crore in the second quarter of financial year 2027 (Q2 FY27), up 22.8% from Rs 416.1 crore in Q2 FY26 and 8.6% from Rs 470.3 crore in Q1 FY27. The result placed quarterly revenue above both the comparable prior-year and immediately preceding quarters.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 42.5% year on year to Rs 126.6 crore in Q2 FY27 from Rs 88.8 crore. EBITDA was also 11.6% higher than Rs 113.5 crore in Q1 FY27, while its margin reached 24.5%, compared with 21.0% a year earlier and 23.7% in the preceding quarter.

The 24.5% EBITDA margin was 350 basis points higher than Q2 FY26 and 80 basis points above Q1 FY27. A basis point is one-hundredth of a percentage point. The faster increase in EBITDA than revenue accounts for the year-on-year margin movement reported in the consolidated financial snapshot.

Profit after tax (PAT) was Rs 40.4 crore in Q2 FY27, against Rs 12.4 crore in Q2 FY26, according to the financial snapshot. PAT margin was 7.8%, versus 2.9% a year earlier, although Q2 PAT was below the Rs 49.7 crore and 10.4% margin reported for Q1 FY27.

How did Paras Health perform in H1 FY27?

Paras Health recorded revenue from operations of Rs 981.2 crore in the first half of financial year 2027 (H1 FY27), up 25.1% from Rs 784.5 crore in H1 FY26. EBITDA increased 54.7% to Rs 240.1 crore from Rs 155.2 crore, exceeding the pace of revenue growth over the same period.

The H1 FY27 EBITDA margin was 24.1%, compared with 19.5% in H1 FY26, a rise of 460 basis points. PAT reached Rs 90.0 crore from Rs 11.4 crore, while PAT margin rose to 9.0% from 1.4%, according to the consolidated half-year snapshot.

Paras Health also reported bed occupancy of 73.0% in H1 FY27, up from 59.0% in H1 FY26. Its highlights said occupied bed days increased 23.9% to 201,000 from 162,000, while average revenue per occupied bed was Rs 48,900.

The newer Srinagar and Kanpur hospitals generated Rs 84.4 crore of Q2 FY27 revenue, more than double their revenue in Q2 FY26, and recorded an EBITDA margin of 18.7%. Management said the two hospitals had ramped up rapidly and were EBITDA-positive, but did not disclose separate revenue or profit figures for Srinagar and Kanpur.

What hospital capacity and expansion plans does Paras Health have?

Paras Health operated eight hospitals with aggregate capacity of 2,211 beds, including 559 intensive care unit (ICU) beds, as of September 30, 2026. Its network covered Gurugram and Panchkula in Haryana, Patna and Darbhanga in Bihar, Kanpur in Uttar Pradesh, Udaipur in Rajasthan, Ranchi in Jharkhand and Srinagar in Jammu and Kashmir.

Cardiac, oncology, neuro, gastro, orthopaedics and renal sciences, collectively described by Paras Health as CONGOR specialties, accounted for 73.5% of H1 FY27 revenue. Management said it would deepen programmes in oncology, cardiac, neuro and renal sciences and invest in advanced clinical technology, without providing a rupee budget or timetable for those investments.

Paras Health has two hospitals planned by 2028: a 300-bed facility at Gurugram Golf Course Extension and a 500-bed hospital in Ludhiana. The planned 800 beds equal about 36% of the 2,211-bed operating capacity reported at September 30, 2026, though the filing gives no construction cost, opening sequence or revenue target for either project.

Conclusion

Paras Health has directed Rs 375 crore, or three-quarters of its Rs 500 crore IPO proceeds, to reducing borrowings while reporting Q2 FY27 revenue of Rs 510.9 crore and EBITDA of Rs 126.6 crore. Over H1 FY27, revenue rose 25.1% to Rs 981.2 crore, while bed occupancy increased to 73.0% from 59.0%.

The next disclosed milestones are the 300-bed Gurugram Golf Course Extension hospital and the 500-bed Ludhiana hospital, both planned by 2028. Future company disclosures may clarify the borrowing balance following the Rs 375 crore repayment, the use of the other Rs 125 crore of IPO proceeds, and progress on the stated specialty and technology plans.