ABH Healthcare

ABH Healthcare operates as a comprehensive healthcare provider through its flagship brand, Anil Baghi Hospital. The company has established itself as a multi-speciality destination, offering an extensive range of 25 medical specialties. These include critical care areas such as cardiac sciences, neurology, pulmonology, and nephrology, as well as specialized surgeries like minimally invasive spine and brain surgeries and bariatric surgery.

The business model leverages a diverse revenue stream by providing healthcare services under various prestigious government schemes. Key partnerships include the ECHS, Indian Railways, FCI, BSNL, and the Ayushman Bharat–Sarbat Sehat Bima Yojana (ABSSBY), which ensures a steady flow of patients and institutional stability.

Operationally, the company maintains a professional clinical workforce. As of FY25, the hospital is staffed by 29 qualified doctors and 137 nurses, ensuring a balanced patient-to-staff ratio for quality care. Their facility is equipped with modern medical technology to support its complex surgical and diagnostic offerings.

Based in Ferozepur, Punjab, the company has focused on regional market penetration and stable financial growth. The promoter group, consisting of Kamal Baghi, Saurabh Baghi, and Vaishali Saini, has steered the company toward becoming a prominent healthcare landmark in its operating geography.

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 requiring an application amount of ₹2,44,800. The issue is scheduled to open on August 24, 2026, and close on August 26, 2026, with listing on the NSE SME exchange on August 31, 2026.

The proceeds from the fresh issue are earmarked for critical balance sheet improvements and growth. Specifically, ₹17.00 Crores will be utilized for the repayment or prepayment of existing borrowings, while ₹4.30 Crores are allocated toward funding working capital requirements and general corporate purposes, including potential inorganic growth through acquisitions.

Financial performance shows a positive trajectory in scale. Revenue grew from ₹41.39 Crores in FY24 to ₹52.59 Crores in FY2026. Profitability has also seen a significant jump, with PAT rising from ₹1.66 Crores in FY24 to ₹5.64 Crores in FY2026, indicating improving operational efficiency and margin expansion.

From a valuation perspective, the company boasts a strong ROE of 39.07% and a healthy EBITDA margin of 28.03%. However, the Debt-to-Equity ratio stands at a concerning 3.2, which is significantly higher than typical industry benchmarks. This high leverage is a primary risk factor that investors must weigh against the growth in PAT.

Investment strengths include the company's integration with government healthcare schemes and its diverse specialty offerings. Conversely, the high debt load and the inherent volatility of the SME exchange are key risks. Investors should view this as a growth-oriented play in the healthcare space, balancing the strong returns on equity against the high financial leverage.