NEPHROCARE - Nephro Care

📊 NSE: NEPHROCARE 🏢 Healthcare 📅 Last Updated: 12/14/2025 10:27

💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations grew 69.04% YoY to INR 46.03 Cr in FY25 from INR 27.23 Cr in FY24. For H1 FY26, revenue reached INR 39.33 Cr, representing a 38.76% sequential increase over H2 FY25 revenue of INR 28.34 Cr. Segments include OPD Services, IPD Services, and Pharmacy sales.

Geographic Revenue Split

100% of operations are concentrated in Eastern India, specifically West Bengal, with the registered office and clinics located in Kolkata (Saltlake and Bidhan Nagar).

Profitability Margins

Net profit margin for H1 FY26 was 4.93% (INR 1.94 Cr profit on INR 39.33 Cr revenue), slightly down from 5.12% in H2 FY25. Profit Before Tax (PBT) for FY25 was INR 4.83 Cr, a 22.34% decrease from INR 6.22 Cr in FY24, likely due to expansion and IPO-related costs.

EBITDA Margin

EBITDA margin was 16.08% in FY25 (INR 7.40 Cr EBITDA on INR 46.03 Cr revenue), down from 25.12% in FY24. For H1 FY26, the EBITDA margin stood at 12.57% (INR 5.02 Cr), reflecting higher operational costs during the multi-specialty hospital ramp-up.

Capital Expenditure

The company is expanding from 4 to 6 comprehensive renal care clinics by the end of FY26 and is operationalizing its multi-specialty hospital, Vivacity. Total assets increased from INR 20.97 Cr in FY24 to INR 68.28 Cr in FY25, indicating significant capital deployment.

Credit Rating & Borrowing

Not disclosed in available documents. Total current liabilities stood at INR 14.03 Cr as of March 31, 2025.

⚙️ Operational Drivers

Raw Materials

Pharmacy drugs and consumables represent the primary operational cost, with inventory changes of INR (87.40) Lakhs in FY25 compared to INR 13.22 Lakhs in FY24.

Import Sources

Not disclosed in available documents; however, blood consumables are sourced through enterprises with significant influence in Kolkata.

Key Suppliers

Not disclosed in available documents, though related party disclosures mention blood consumables sourced from an enterprise having significant influence (INR 0.25 Cr in H1 FY26).

Capacity Expansion

Current capacity includes 4 comprehensive renal care clinics; planned expansion to 6 clinics by the end of FY26. The Vivacity multi-specialty hospital is currently reaching operational breakeven.

Raw Material Costs

Changes in inventory of pharmacy, drugs, and consumables were INR (87.40) Lakhs in FY25, reflecting a shift in procurement and stock levels to support higher patient volumes.

Manufacturing Efficiency

Not applicable as a service provider; however, the company focuses on clinical excellence and reaching operational breakeven at its new multi-specialty facility.

📈 Strategic Growth

Expected Growth Rate

38.76%

Growth Strategy

Growth will be achieved by expanding the clinic network from 4 to 6 units by the end of FY26 and scaling the Vivacity multi-specialty hospital to reach operational breakeven. The company is also leveraging its backing from prominent investors like Deepak Parekh to strengthen market confidence in Eastern India.

Products & Services

OPD Services, IPD Services, Renal Care, Dialysis, and Pharmacy/Pharmaceutical sales.

Brand Portfolio

Nephro Care, Vivacity.

New Products/Services

Vivacity multi-specialty hospital is the primary new service offering, expected to contribute significantly to consolidated performance as it scales.

Market Expansion

Targeting 2 additional clinics in the Eastern India region by the end of FY26.

Strategic Alliances

Backed by Deepak Parekh; maintains relationships with enterprises for blood consumables and consultancy.

🌍 External Factors

Industry Trends

The healthcare industry in Eastern India is shifting toward integrated multi-specialty models. Nephro Care is positioning itself by transitioning from pure renal care to a multi-specialty hospital model (Vivacity) to capture broader patient demand.

Competitive Landscape

Operates in the multi-specialty healthcare sector in Kolkata, competing with regional hospital chains.

Competitive Moat

Moat is built on specialized clinical excellence in kidney care and a strong reputation in the underserved Eastern India market. This is sustainable due to high switching costs for chronic renal patients and the backing of high-profile investors.

Macro Economic Sensitivity

Sensitive to regulatory policies in the healthcare sector and changes in government health insurance schemes.

Consumer Behavior

Increasing demand for comprehensive renal care and multi-specialty services in the Bidhan Nagar/Saltlake area.

Geopolitical Risks

Not disclosed; operations are entirely domestic within India.

⚖️ Regulatory & Governance

Industry Regulations

Subject to healthcare standards and regulatory policies; reliance on IT systems makes it sensitive to data protection and telecommunication regulations.

Environmental Compliance

The company prioritizes environmental sustainability and advocates for eco-friendly initiatives, though specific costs are not disclosed.

Taxation Policy Impact

The company recognized a deferred tax liability of INR 30.22 Lakhs in FY25. It accounts for MAT credit where applicable.

Legal Contingencies

INR 0. The company states it has no pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

Regulatory policy changes and IT system reliance are the primary uncertainties, with potential to disrupt 100% of digital billing and record-keeping.

Geographic Concentration Risk

100% of revenue is derived from the West Bengal region, making it highly sensitive to local economic and regulatory shifts.

Third Party Dependencies

High dependency on telecommunication and IT service providers for operational continuity.

Technology Obsolescence Risk

The company is currently undergoing digital transformation in patient records; failure to keep pace with healthcare tech could impact competitive positioning.