Gaudium IVF and Women Health Ltd

Gaudium IVF and Women Health Ltd

The company offer a range of specialized fertility and reproductive health services which primarily include In Vitro Fertilization (IVF) treatment, Intracytoplasmic Sperm Injection (ICSI), Intrauterine Insemination (IUI), and ovulation induction to address infertility challenges for both male and female. It operates through Hub & Spokes model with 7 hubs in India and a hospital facility in Delhi NCR with a capacity of 15 beds.

DRHP filed: 20th Jan 2025

BRLM: Sarthi Capital Advisors

Auditor: S K G N & Associates LLP

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Delta’s View : May Subscribe for Listing Gains

Gaudium IVF & Women Health Ltd operates in the IVF treatment space, a segment that has been expanding over the past few years. However, the sharp rise in receivables alongside declining patient volumes and IVF treatment cycles raises concerns around earnings quality and the sustainability of reported performance. Some past allegations against its promoter and contingent tax liabilities further question fair governance practices. Given earnings quality concerns, operational weakness, and governance risks, we lack conviction at this stage and await greater clarity before taking a constructive view.

One may expect moderate listing gains as per current GMP ~11% (20th Feb 26), provided the GMP sustains.

While the headline numbers reflect a 26% revenue CAGR and operating margins above 40% (FY23-FY25), a closer examination suggests a materially different picture. The company has booked a significant portion of revenue on credit with trade receivables rising sharply from just 90 lakhs (FY23) to 51 cr (Sept 2025) where more than half of these debtor dues are outstanding over 6 months. During this period, the number of patients undergoing OPU & ET cycle for IVF treatment had also declined from 1,118 (FY23) to 679 (FY25) and conversion rates from patient consultation to OPU/ET cycle dropped from 83% (FY23) to 43% (FY25). There has been multiple instances of allegations against the company and its Promoter & MD, Dr. Manika Khanna which raises concerns over the company's governance. An FIR was filed against Dr. Manika, alleging her and the company of cheating and gaps in documentation and staffing related to treatment provided to 53 women in Varanasi. The company carries contingent tax liabilities of ~45 cr which is 76% of the company's net worth. Furthermore, she was given disciplinary direction by the Delhi Medical Council in March 2024 concerning improper self-advertisement practices. The company’s IPO ask valuation is decided at 26x P/E TTM.

• The promoter Dr. Manika Khanna was alleged of cheating and criminal breach of trust involving 53 women who reportedly underwent IVF treatment at a Gaudium IVF centre in Varanasi, as per a Times of India report (Apr '22). The article references patient complaints regarding non-conception despite extended treatment and over 2.75 lakh fees charged amid alleged gaps in documentation and staffing. Dr. Khanna then shut the Varanasi operations and went to Delhi. There is also a pending litigation alleging negligence in the treatment given by the Company doctor demanding over 50 lakhs. The case is filed with Delhi District Consumer Dispute Redressal Commission. 

• The company has contingent tax liabilities of ~45 cr. They are significant and equivalent to ~76% of its net worth as of Sept 2025, arising from income tax assessment orders for AY 2021-22, 2022-23 and 2023-24. Recovery of the outstanding demand has been stayed, subject to the condition that it deposits 6.2 cr. Given the magnitude of the exposure relative to net worth, an adverse outcome in proceedings could materially impact the business.

• While Revenue from operations grew at 26% CAGR from FY23-FY25. Its revenue from IVF treatments grew by 16% CAGR from FY23-FY25. It supplies medicines and consumables through its pharmacy business. Total no. of patients who took both OPU & ET procedures during the year have been declining constantly from 1,118 in FY23 to 679 & 249 in FY25 & 6M FY26 respectively. Conversion of patient visit / consultations into either OPU or ET cycle decreased from 83% in FY23 to 43% in FY25. 

• Company’s receivables have surged from 90 lakhs (FY23) to 51 cr (Sept 2025), with more than 55% of company’s receivables being due more than 6 months (As of 30th Sept 2025). It has booked provisions for ECL of only 34 lakhs since FY23, which is very low compared to the large size of receivables due. Its receivables days was over 170 days which is very high for a company operating in the healthcare services sector.

• It spent ~29% of operating expenses into Advertising and Legal/Professional expenses only (FY25). It spent over 6 cr in marketing in FY25 alone. Furthermore, the Delhi Medical Council (DMC) issued a disciplinary direction to the Promoter Dr. Manika Khanna in relation to self-advertisement which was in violation of the Drugs and Magic Remedies Act and the Drugs and Cosmetics Rule in Mar '24. The Council issued a direction that she must not indulge in unprofessional practices in the future for self-advertisement.

• Nearly half (~46%) of total doctor consultation fees were paid to the Promoter Dr. Manika Khanna (~1.8 cr out of 3.7 cr), raising concerns about material related-party exposure and dependence on a single clinician for core service delivery.

Business

• Gaudium IVF & Women Health Ltd offer a range of specialized fertility and reproductive health services which includes In Vitro Fertilization (IVF) treatment, Intracytoplasmic Sperm Injection (ICSI), Intrauterine Insemination (IUI), and ovulation induction to address infertility challenges for both male and female.

• It operates through the Hub and spoke model which comprises 7 hubs (centers) and 28 spokes. The 7 hubs are located across Delhi, Mumbai, Punjab, J&K, Patna, Bangalore.

• It did 8,145 OPDs (Patient visits) in FY25. Not every OPD becomes a cycle, and not every cycle results in a successful pregnancy. It had a success rate of over 58% out of total ET cycles performed in FY25.  A full IVF follows the life cycle = OPD → Stimulation → OPU → Embryo culture → ET → Pregnancy test

• The company performed a total of 3,476 cycles (OPU + ET), which includes 1,913 Embryo Transfer (ET) cycles and 1,563 Ovum Pick Up (OPU) cycles in FY25. OPU is the egg retrieval process and ET procedure is when the fertilized embryo is placed inside the uterus. It usually happens 3-5 days after OPU but can also happen later (if Embryo is frozen).

• A brief about the treatments offered at Gaudium are : 

• IVF: Hormones grow multiple eggs → eggs are retrieved, fertilized in the lab, embryos grown 3–5 days → embryo placed in the uterus to help conception when natural pregnancy isn’t happening.

• ICSI: A lab add-on to IVF where a single sperm is injected into an egg to overcome male-factor infertility or prior fertilization failure.

• IUI: Around ovulation, processed sperm is placed directly into the uterus via a thin catheter to improve chances in mild male-factor/unexplained infertility.

• Ovulation Induction: Medicines stimulate egg release (often in PCOS/irregular ovulation) with ultrasound monitoring, timed intercourse or IUI.

• PCOD/PCOS Care: Diagnosis + lifestyle/medical management to regulate cycles and ovulation, improving fertility and reducing hormone/metabolic issues.

• Male Infertility + Sperm Retrieval (e.g., TESA): When sperm aren’t present in semen, minor procedure retrieves sperm from testes for use in IVF/ICSI.

• It also operates a hospital facility at Janakpuri Center (Delhi NCR) with a capacity of 15 beds only for mother and child care. It has an in-house pharmacy which supplies medicines and consumables required for patient care during and after treatments, and also fulfills the supply needs of its centers.

Issue Details

Fresh issue size - Amount → 90 cr ; To be utilized in -

• Capital investment towards funding New IVF Centers → 50 cr (56%)
• Repayment of certain outstanding loans → 20 cr (22%)
• General Corporate Purposes & Others

Offer For Sale size - Amount → 75 cr by Promoter Dr. Manika Khanna

Promoters and Leadership

• The company was incorporated in 2015 by Dr. Manika Khanna, which later acquired the proprietor business of Manika, Gaudium IVF & Gynae solutions (founded in 2009). 

• Dr. Manika Khanna is the Chairperson & Managing Director of the company. She’s a gynecologist and fertility specialist with more than 20 years of experience in reproductive medicine. 

• She has Bachelor’s degree in Medicine and Surgery (MBBS) and MD in Obstetrics and Gynecology from Medical College Baroda. She completed training in reproductive medicine and gynecological endoscopy in Germany and Australia.

• Her husband Dr. Peeyush Khanna is the Whole-time Director of the company. He has Bachelor’s degree in Medicine and Surgery (MBBS) from Manipal Academy of Higher Education and a Diploma in Child Health from Delhi University.

• The company is entirely promoter-owned with Manika holding >99% of shareholding and remaining split between his husband Peeyush and son Vishad Khanna. 

Financials