ABH Healthcare

ABH Healthcare, known for its brand 'Anil Baghi Hospital', is a comprehensive healthcare service provider based in Firozpur, Punjab. The company has evolved into a multi-speciality hub that integrates advanced medical care across a wide spectrum of 25 specialties, ranging from minimally invasive spine and brain surgeries to laparoscopic and bariatric surgery.

The business model focuses on providing high-quality clinical care through a mix of specialized services. Its core operational strength lies in its ability to serve diverse patient demographics, utilizing modern equipment to maintain a track record of stable financial growth within the regional healthcare market.

A significant portion of the company's revenue is derived from its partnerships with various government healthcare schemes and organizations. Key clients and partners include the Indian Railways, ECHS, BSNL, FCI, and the Ayushman Bharat–Sarbat Sehat Bima Yojana (ABSSBY), ensuring a steady stream of patient inflow.

In terms of operational scale, as of FY25, the hospital is supported by a professional medical team consisting of 29 doctors and 137 nurses. This infrastructure allows the facility to maintain its position as a critical healthcare provider in its geography.

The company is led by its promoters, Kamal Baghi, Saurabh Baghi, and Vaishali Saini, who have focused on scaling the facility's specialties and improving clinical outcomes to drive long-term value.

The ABH Healthcare IPO is a book-built issue seeking to raise approximately ₹34.98 Crores entirely through a fresh issue of equity shares. The price band is set between ₹96 and ₹102 per share, with a minimum retail lot size of 2,400 shares amounting to ₹2,44,800. The issue opens on August 24, 2026, and closes on August 27, 2026, with the listing scheduled for September 1, 2026, on the NSE SME platform.

The proceeds from the fresh issue are primarily earmarked for debt reduction and working capital. Specifically, ₹17.00 Crores will be used for the repayment or prepayment of certain borrowings, while ₹4.30 Crores is allocated toward funding working capital requirements, with the remainder for inorganic growth and general corporate purposes.

Financial performance shows a steady upward trend in revenue, growing from ₹41.39 Crores in FY24 to ₹52.59 Crores in FY26. Net profit (PAT) has also seen a significant jump from ₹1.66 Crores in FY24 to ₹5.64 Crores in FY26, indicating improving operational efficiency and profitability margins.

Valuation-wise, the company reports a strong ROE of 39.07% and an EPS of ₹7.05 for FY26. While it compares itself to peers like Sangani Hospitals and Asarfi Hospital, the high debt-to-equity ratio of 3.2 remains a point of concern for conservative investors.

Key strengths include its integration with government healthcare schemes and a strong ROE. However, the primary risk is the heavy debt burden and the inherent volatility associated with SME listings. Investors may view this as a long-term play given the steady profit growth, though the high leverage warrants a cautious approach.