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Pramodini Medicare Limited

Pramodini Medicare Limited - Related Party Transactions

Introduction

Based on the RHP (Red Herring Prospectus) dated August 04, 2026, and subsequent filings, here are the “Related Party Transactions” (RPT) details of Pramodini Medicare Limited.

Business Model Operations

Business Model: The company provides technology-enabled radiology, pathology, and nuclear medicine diagnostic services through four models: Public Private Partnership (PPP), Private Private Partnership, Strategic Partnership with PSUs, and Standalone Private Centres.


Advances from customers: The financial statements do not reflect significant advances from customers; "Excess money received pending adjustment/refund" was a negligible ₹0.01 lakh.


Raw materials consumed: As a service provider, it does not have traditional manufacturing raw materials but consumes diagnostic consumables, radiology films, and medical supplies/reagents.


Sourcing (Domestic/Imports): While not explicitly detailed, the company procures medical equipment from major vendors like Philips and Mindray. It does not have any current export obligations.


Price volatility and key vendors: Specific volatility levels are not disclosed. Key equipment vendors include Truevis Technologies Pvt. Ltd. and Pixel Imaging Systems.


Key factors affecting business: Dependence on government MoUs (PPP), concentration of revenue in radiology (97.05%), and a high reliance on a limited number of top customers.


Competitive & Regulatory landscape: The industry is highly competitive with organized and unorganized players. It is regulated by the Clinical Establishments Act, AERB for radiation safety, and PNDT Act.


Total Addressable Market (TAM): Not explicitly quantified, but described as a "growing Indian diagnostic market" with a strategic focus on expanding across various Indian states.


Key competitors: Invicta Diagnostic, Krsnaa Diagnostics, and Star Imaging & Path Labs.


Growth plans: Future plans involve funding capital expenditure for new medical equipment at existing and proposed centers and pursuing unidentified inorganic acquisitions.


Government intervention: There is visible government intervention as a significant portion of revenue (61.46% in FY 2025-26) comes from B2G (Business-to-Government) contracts and PPP models.

Financial Performance Health

Debtors age analysis (as of March 31, 2026):

  1. < 6 Months: ₹1,147.42 lakhs
  2. 6 Months - 1 Year: ₹496.68 lakhs
  3. 1 - 2 Years: ₹95.32 lakhs
  4. > 2 Years: ₹0.63 lakhs.


Balance Sheet health: Net worth grew from ₹2,474.69 lakhs in FY 2023-24 to ₹5,315.17 lakhs in FY 2025-26. The company has a low Debt-to-Equity ratio of 0.34 as of March 31, 2026.


Operating cashflows: The company generated positive operating cash flows of ₹2,539.05 lakhs in FY 2025-26, ₹2,212.13 lakhs in FY 2024-25, and ₹985.36 lakhs in FY 2023-24.


Customer concentration: High concentration; the Top 1 customer accounts for 44.17% of revenue, and the Top 10 account for 64.83% in FY 2025-26.


Revenue Mix: 100% domestic; the company had zero export sales in the last three financial years.


Debt raised (last 3 years): Proceeds from long-term borrowings were ₹1,005.12 lakhs in FY 2025-26 and ₹574.17 lakhs in FY 2024-25.


Capital expenditure (last 3 years): ₹2,981.18 lakhs (FY 2025-26), ₹1,003.54 lakhs (FY 2024-25), and ₹36.49 lakhs (FY 2023-24).


Return on Capital (ROCE): 34.66% (FY 2025-26), 36.48% (FY 2024-25), and 31.90% (FY 2023-24).


Asset turnover (Net Capital Turnover Ratio): 9.00 times (FY 2025-26), 6.38 times (FY 2024-25), and 8.73 times (FY 2023-24).


Sales, Operating Profit (EBITDA), and PAT trends: All three are increasing. Sales grew from ₹3,522.95 to ₹6,228.75 lakhs; EBITDA grew from ₹1,553.47 to ₹3,090.35 lakhs; PAT grew from ₹693.01 to ₹1,737.73 lakhs.


Margins trend: EBITDA and Net Profit margins are not consistently increasing; they peaked in FY 2024-25 (54.83% and 28.84% respectively) before slightly declining in FY 2025-26 (49.61% and 27.90%).


Cash Flow Conversion Table:

The EBITDA to CFO conversion % is not consistently increasing, having declined from 105.51% to 82.16% in the last year.

Risks Management Outlook

Legal cases:

  1. Against Company: One material civil litigation (Writ Appeal from 2006) involving a land matter.
  2. Against Promoters/Group: A writ petition (W.P. No. 28600 of 2025) alleging irregular diversion of project payments in favor of group company Infer Radiological.


Key Risks: High revenue dependence on government authorities (61.46%), reliance on a single service segment (Radiology at 97.05%), and potential conflicts of interest due to group companies in the same business.


Red Flags:

  1. Significant Related Party Transactions (peaked at 49.91% of revenue).
  2. Promoter disqualification history.
  3. Numerous RoC and tax filing delays and missing secretarial records.
  4. Negative Free Cash Flow in the most recent fiscal year due to high capex.
  5. Legal petition alleging diversion of funds to a group company.

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SEBI REGN NO. INH000001071