Gaudium IVF IPO: Can Fertility Services Deliver Scalable Listed Growth?

India’s healthcare IPO pipeline has typically been dominated by hospitals, diagnostics companies, and pharmaceutical manufacturers.

But the upcoming IPO of Gaudium IVF and Women Health Limited introduces something slightly different to the public markets. The company js a specialised fertility services provider operating in one of the fastest-evolving segments of private healthcare.

As lifestyle shifts, delayed parenthood, rising infertility rates, and increasing medical awareness reshape the demand landscape for assisted reproductive technologies, fertility clinics are no longer seen as niche service providers.

They are increasingly transitioning into scalable healthcare businesses with organised network-driven models.Gaudium IVF now plans to raise capital through a public issue using a 100% book-building process, marking its entry into India’s listed healthcare ecosystem.

The Business Behind the IPO

Gaudium IVF and Women Health Limited was incorporated on March 24, 2015, as a private limited company under the Companies Act, 2013, before converting into a public limited entity in October 2024 ahead of the IPO.

The company is promoted by:

• Dr. Manika Khanna
• Dr. Peeyush Khanna
• Vishad Khanna

Its clinical offerings are centred around assisted reproductive technologies and women’s healthcare procedures. These include:

• In-Vitro Fertilisation (IVF)
• Intra-Cytoplasmic Sperm Injection (ICSI)
• Intrauterine Insemination (IUI)
• Male infertility treatment services
• Genetic testing
• Laparoscopic surgical procedures

Unlike multi-specialty hospitals that deal with broader patient needs, fertility service providers operate in a focused treatment ecosystem where clinical expertise and outcome quality directly influence patient acquisition.

This makes brand trust and doctor-led execution critical components of growth.

Why Fertility Services Are Becoming a Scalable Healthcare Segment

Historically, fertility clinics in India were seen as stand-alone specialist centres.

However, over the past decade, several macro trends have started to reshape the industry:

• Rising average age of first-time parents
• Increasing diagnosis of reproductive health conditions
• Urban lifestyle changes impacting fertility rates
• Greater acceptance of assisted reproductive technologies
• Expansion of medical tourism for specialised procedures

Unlike capital-intensive hospital chains that require extensive real estate and infrastructure investments, fertility services often operate with relatively modular clinical setups.

This allows expansion through cluster-based or network-driven models, which may potentially improve capital efficiency if executed well.

Financial Performance: Is Gaudium IVF Scaling Profitably?

When evaluating a healthcare services IPO, the first thing investors typically look for is not just revenue growth — but whether that growth is translating into operating profitability.

According to the company’s Restated Consolidated Financial Information for FY23 to FY25 (as disclosed in the RHP), Gaudium IVF has reported consistent growth in both revenue and net profit over the last three financial years.

Revenue Growth Trend

The company’s revenue from operations has grown steadily:

• FY23: ₹44.24 crore
• FY24: ₹53.48 crore
• FY25: ₹70.72 crore

This implies a ~60% increase in revenue over a two-year period, indicating rising treatment volumes and potentially improved capacity utilisation across centres.

In the context of clinical service providers, revenue growth is typically driven by:

• Increase in procedure volumes
• Higher average realisation per treatment cycle
• Expansion of centre network
• Rising patient inflows from new geographies

Profitability and Margin Expansion

More importantly, Gaudium IVF has not grown revenue at the cost of profitability.

The company reported the following Profit After Tax (PAT):

• FY23: ₹13.43 crore
• FY24: ₹16.89 crore
• FY25: ₹19.13 crore

This translates into a PAT growth of over 42% between FY23 and FY25, reflecting operating leverage as revenues scaled.

Healthcare service providers often see margin improvement when:

• Fixed clinical infrastructure costs are absorbed across higher patient volumes
• Doctor utilisation improves
• Marketing and administrative costs stabilise as a percentage of revenue

By FY25, the company reported an EBITDA margin of approximately 40.48%, which is relatively strong for a service-led healthcare platform.

Return Ratios and Leverage

As of March 2025:

• Return on Equity (ROE): ~41.31%
• Debt-to-Equity Ratio: ~0.41

These metrics suggest that the company has been able to generate relatively high returns on shareholder capital while maintaining moderate leverage.

For investors, this combination is often seen as favourable provided expansion capital is deployed efficiently post-IPO.

Interim Performance Snapshot

For the half-year period ended September:

• Revenue: ₹31.69 crore
• PAT: ₹8.28 crore

If performance is sustained, this may indicate a continuation of profitability trends into the current financial year.

What Do These Numbers Actually Tell Us?

• Consistent topline growth
• Expanding profit base
• Strong EBITDA margins
• High return ratios

However, investors should note that fertility services are highly dependent on clinical talent and patient trust, both of which can influence financial performance over time.

Scaling new centers without diluting treatment success rates will be critical to maintaining these margins going forward.

Gaudium IVF IPO: Structure and Timeline

According to the company’s Red Herring Prospectus dated February 13, 2026, the public issue consists of both a fresh issue of equity shares and an offer for sale by the promoter.

The IPO includes:

• Fresh Issue: 90 cr
• Offer for Sale: 75 cr

Post-offer, the issue is expected to account for approximately 28.70% of the company’s post-offer paid-up equity share capital.

Each equity share has a face value of ₹5.

IPO Timeline & Key Details

• Anchor Investor Bidding Date: February 18, 2026
• IPO Opening Date: February 20, 2026
• IPO Closing Date: February 24, 2026

Price Band: ₹75 – ₹79 per equity share

Face Value: ₹5 per share

Lot Size: 189 shares

Minimum Investment (Retail): ₹14,931 (at upper price band)

Where Will the IPO Money Go?

Capital raised through the fresh issue will be deployed towards:

• Expansion of clinical infrastructure
• Repayment or prepayment of borrowings
• General corporate purposes

Monitoring of IPO proceeds is proposed to be undertaken by Infomerics Valuation and Rating Limited, a SEBI-registered credit rating agency.

For a service-led healthcare business, expansion capital typically plays a central role in driving revenue growth, especially in tier-2 and tier-3 markets where fertility treatment penetration remains relatively low.

Key Strengths of the Business

Gaudium IVF’s operating model is supported by a patient-centric pricing approach that includes package-based treatment plans, bundled services, and instalment schemes aimed at improving affordability.

Transparent pricing and flexible financing options may help expand the addressable patient base while strengthening long-term patient trust.

The company has also invested in brand positioning through patient awareness initiatives and education-led engagement.

In a segment where social stigma still influences treatment decisions, credibility and clinical reliability can play an important role in driving consultations and referrals.

In addition, its focus on medical tourism allows the company to leverage India’s cost advantage in fertility treatments.

Multilingual support services and partnerships with overseas facilitators may support international patient inflows and diversify revenue beyond domestic demand.

Risks Investors Should Not Ignore

While the fertility services segment offers long-term growth potential, Gaudium IVF’s business model also comes with certain operational and clinical risks that investors should be mindful of.

At its core, the company operates in specialised fertility treatments such as IVF, IUI, ICSI, and egg freezing procedures that are not only medically intensive but also reputation-sensitive.

Any failure to consistently maintain quality healthcare standards or treatment outcomes could adversely impact patient trust, which in turn may affect business prospects and financial performance.

Another important operational risk relates to the company’s dependence on a limited pool of specialised clinical talent.

As disclosed, the company’s operations across its seven centres rely heavily on a relatively small number of embryologists.

Any challenges in attracting or retaining qualified embryologists may disrupt treatment cycles, affect service delivery timelines, and potentially impact revenue generation across centres.

In addition to clinical execution risks, the company has entered into and may continue to engage in related party transactions, including loans, advances, and guarantees.

While such arrangements are not uncommon in promoter-led businesses, they may give rise to potential conflicts of interest and are typically monitored closely by public market investors post-listing.

Taken together, Gaudium IVF’s ability to:

• Maintain consistent treatment success rates
• Retain specialised medical professionals
• Scale operations without compromising clinical standards

will remain central to sustaining patient inflows and protecting margins over the long term.

Final Thoughts

Gaudium IVF’s IPO introduces public market investors to a niche but structurally growing segment of India’s healthcare services industry.

While fertility services benefit from strong demographic tailwinds and rising awareness, long-term value creation in this space depends heavily on execution including network expansion, doctor retention, patient outcomes, and brand trust.

As with most healthcare service-led listings, the opportunity lies not just in market demand but in the company’s ability to scale clinical excellence consistently across locations.

Investors should evaluate both the growth potential and operational risks before making an investment decision.

Frequently Asked Questions

1. What does Gaudium IVF and Women Health Limited do?

   Gaudium IVF and Women Health Limited is a specialised fertility services provider offering assisted reproductive treatments such as IVF, ICSI, and IUI, along with genetic testing and male infertility treatments. The company operates in the assisted reproductive technology (ART) segment within India’s private healthcare industry.

2. When will the Gaudium IVF IPO open and close?

   The Gaudium IVF IPO is scheduled to open on February 20, 2026, and will close on February 24, 2026. The anchor investor bidding took place on February 18, 2026.

3. What is the total issue size of the Gaudium IVF IPO?

   The IPO comprises:

   • A fresh issue worth ₹90 crore
   • An Offer for Sale (OFS) worth ₹75 crore

   bringing the total issue size to approximately ₹165 crore.

4. How will Gaudium IVF use the IPO proceeds?

   The company plans to use the funds raised from the fresh issue for:

   • Expansion of clinical infrastructure
   • Repayment or prepayment of borrowings
   • General corporate purposes

5. What are the key financial highlights of Gaudium IVF?

   As per disclosed financials:

   • Revenue increased from ₹44.24 crore in FY23 to ₹70.72 crore in FY25
   • Profit After Tax (PAT) rose from ₹13.43 crore in FY23 to ₹19.13 crore in FY25
   • EBITDA margin stood at approximately 40.48% in FY25
   • ROE as of March 2025 was around 41.31%

6. What are the key strengths of Gaudium IVF’s business model?

   • Patient-centric pricing through bundled treatment packages
   • Focus on brand credibility through awareness initiatives
   • Exposure to international patients through medical tourism

7. What are the main risks associated with the Gaudium IVF IPO?

   • Dependence on specialised embryologists and medical professionals
   • Execution risk in expanding into new geographies
   • Reputation sensitivity linked to treatment success rates
   • Related party transactions that may pose governance concerns

8. Who are the promoters of Gaudium IVF?

   The company is promoted by:

   • Dr. Manika Khanna
   • Dr. Peeyush Khanna
   • Vishad Khanna

9. Is Gaudium IVF’s business affected by doctor retention?

   Yes. As a clinical services provider, Gaudium IVF’s operations depend significantly on the expertise of embryologists and fertility specialists. Any inability to retain or attract qualified professionals could impact treatment outcomes and financial performance.

10. Should investors consider subscribing to the Gaudium IVF IPO?

    The IPO offers exposure to a growing segment within the healthcare services industry. However, long-term performance may depend on execution, clinical talent retention, and the company’s ability to scale without compromising treatment outcomes. Investors should evaluate both growth prospects and operational risks before making an investment decision.