From Herbs to Hospital Beds: Inside KRM Ayurveda’s IPO Story

20 January 2026

KRM Ayurveda Limited, established in 2019, operates a network of six hospitals and five clinics across India, specialising in holistic treatments for chronic ailments such as kidney disorders, liver cirrhosis, and diabetes. The company also maintains a global presence through its telemedicine services and is engaged in the manufacturing and trading of Ayurvedic medicines and wellness products.

IPO Details

Parameter	Details
Issue Type	100% Fresh Issue
Issue Size	INR 77.49 crore
Price Band	INR 128-135 per share
Lot Size	1,000 shares
Net Issue	57,40,000 Shares
Listing Platform	NSE SME
Issue Opens	January 19, 2026
Issue Closes	January 21, 2026
Listing Date	January 27, 2026 (Tentative)

Before the Deep Dive: What’s Working — and What Isn’t

Strengths	Weakness
Integrated service + product business model: The company’s model combines clinical consultations, therapies, and proprietary product sales under one platform. This integration allows the company to monetise each patient across multiple touchpoints, increasing average revenue per patient (ARPU) and improving margin resilience compared to service-only clinic chains.:	Fragmented and competitive industry: The Ayurveda sector faces competition from unorganised clinics, digital consultation platforms, and large FMCG brands entering wellness categories. This can exert pressure on pricing, marketing spends, and customer acquisition costs.
Diversified Treatment Offerings: Beyond general wellness, the company specializes in treating chronic ailments such as kidney disorders, liver cirrhosis, diabetes, and arthritis, creating a niche medical value proposition.	Financial Strain due to Working Capital Intensity: The company has reported -ve cash flows from operating activities (FY 24 and FY 25), primarily due to funds getting tied up in inventory and receivables. This is driven by long payment cycles from government schemes (CGHS/ECHS) and the need to maintain significant pharmacy stock.
Skilled Clinical Workforce: The company employs 31 qualified Ayurvedic physicians (BAMS) and 59 certified therapists, ensuring high standards of treatment and authentic care delivery.	High Employee Attrition: The company has struggled with retaining staff, recording an attrition rate as high as 78.47% in FY 24, which poses a risk to service continuity and institutional knowledge.
In-House Manufacturing Capabilities: Operations include a centralized GMP-certified processing unit for manufacturing Ayurvedic medicines, allowing for strict quality control over products like oils, syrups, and tablets.	Promoter Conflicts of Interest: Promoters operate separate entities, such as the proprietorship 'Karma Ayurveda', which conduct similar business activities, creating potential conflicts regarding business opportunities.
Established Telemedicine Vertical: A strong digital presence enables the company to offer remote consultations globally, including to patients in the USA, diversifying revenue beyond physical footfall.	Leased Operational Premises: Key facilities, including the Registered Office and hospitals, are operated on rented or leased properties. Inability to renew these leases could disrupt business operations.

Now let’s move forward to unfold the whole business story and their numbers

Industry Landscape

The Indian Ayurveda industry operates within the broader AYUSH healthcare ecosystem, which includes Ayurveda, Yoga, Naturopathy, Unani, Siddha, and Homoeopathy. Ayurveda remains the largest and most commercially developed segment, driven by rising consumer preference for natural therapies, chronic disease management, and preventive healthcare.

The Indian AYUSH market has seen a dramatic expansion, skyrocketing from  $2.85 Bn. in 2014 to $24 Bn. in 2024, a nearly tenfold increase over an eleven-year period. This trajectory is expected to continue, as the market is  projected to reach $200 Bn by 2030. Ayurveda is a cornerstone of this traditional medical landscape and is currently recognized as a formal medical system in over 30 countries. Within India, it remains a primary choice for many, with 40.5% of the rural population and 45.5% of the urban population utilizing Ayurvedic treatments for ailments. The Ayurveda product industry alone is anticipated to grow to $16.2 Bn by 2028. India is a global destination for wellness tourism as it attracts approximately 2 million patients annually from 78 countries who seek affordable and authentic traditional treatments.

From a supply standpoint, the market remains highly fragmented, dominated by:

• Small standalone clinics and practitioners (service-only)

• Regional Ayurvedic medicine manufacturers

• Large FMCG-led Ayurveda brands with pan-India reach

Very few players operate an integrated model combining clinical services with proprietary product monetisation, leaving scope for organised platforms to gain share. The regulatory oversight is anchored by the Ministry of AYUSH and the Drugs & Cosmetics Act government-led initiatives such as the National AYUSH Mission focus on strengthening AYUSH infrastructure, upgrading hospitals and dispensaries, improving drug quality standards, and enhancing practitioner availability across states. In parallel, increased budgetary allocation, inclusion of AYUSH treatments under public health schemes, and institutional adoption through CGHS and ECHS have expanded formal demand and reimbursement-backed patient flows. 

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