Rays of Belief Ltd

Rays of Belief Limited

Incorporated in 2017 and founded by Nitin Bindlish, Rays of Belief operates 136 therapy and intervention centres across India under the Mom's Belief brand, serving children aged 18 months to 15 years with autism, ADHD, cerebral palsy and other neurodevelopmental disorders. It also bills two promoter entities for R&D and administrative services (26% of FY26 revenue) and runs three allergy and immunology clinics in Virginia, acquired in June 2025 (42%).

Auditor : Suri and Sudhir, Chartered Accountants         BRLM : Mefcom Capital Markets Limited

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Rays of Belief runs India's largest network of therapy centres for children with autism, ADHD and other developmental disorders, addressing a real and underserved need. FY26 growth of 124% was one-off and came from acquiring three clinics in the US, which were the reason for the revenue jump and contributed 66% of overall profit. More than 25% of revenue is derived from billing to promoter-owned companies which have ₹11.3 cr of receivables outstanding, with governance disclosures leaving questions. The core business shows mature centres earning less each year and flat enrolments. Also, the model remains unproven in India where smaller competitors run operating losses. At an IPO ask valuation of 101x P/E and 31x EV/EBITDA, this does not give much comfort as a business.

At the current GMP of ~27% (3 September 2026), the issue points to modest listing gains, if it sustains. However, it is important to note that GMP has been a poor guide of late and has been unstable. For example in recent IPOs: Skyways Air Services had a 30% GMP and listed 10% below its issue price, Symbiotec Pharmalab carried 27% and listed flat, and Annu Projects carried 8% and listed 24% below issue.

• Revenue rose from ₹36.4 cr in FY25 to ₹81.7 cr in FY26, but an acquisition drove that jump, not the core business. Rays of Belief runs 136 therapy and intervention centres across India for children with neurodevelopmental disorders, which earned ₹20.2 cr in FY24, ₹22.0 cr in FY25 and ₹26.7 cr in FY26. The company separately bills two promoter entities on a cost-plus basis for services: its holding company Carving Futures Pte. Ltd., and Carving Futures Inc. That business was 26% of FY26 revenue. In June 2025, it bought Mom's Belief US Inc. and its subsidiary Allergy & Immunology Virginia LLC for a recorded consideration of ₹5.16 cr. The two entities run three allergy, asthma and immunology clinics in Virginia. Just this business itself contributed ₹34.1 cr, or 42% of FY26 revenue.

• Carving Futures Pte. Ltd. of Singapore is both the holding company and corporate promoter, holding 91.43% before the offer, and founder Nitin Bindlish controls it with 88.44% of its ordinary voting shares. Rays of Belief books revenue from it and from promoter group entity Carving Futures Inc. (under service agreements covering R&D, content creation, administrative work). That revenue was ₹10.4 cr in FY24 (34.1% of revenue), ₹14.4 cr in FY25 (39.6%) and ₹20.9 cr in FY26 (25.6%). Receivables from the two have piled up to ₹11.3 cr, being 62% of total trade receivables.

• Under a cost-plus contract the company earns a set margin on what it spends, and the RHP does not disclose that margin. The India entity generated ₹2.5 cr of PBT in FY26, which covers both the therapy centres and the services it sells to the promoter. At a typical markup of 12% to 18%, those services alone would account for nearly all of it, leaving the therapy business at little or no profit.

• Nitin Ahuja is an Independent Director of Rays of Belief and chairs its Audit Committee, the body that approves related party transactions and on which only independent directors may vote. He served as Head of Operations at Rays of Belief from November 2018 to September 2021 (LinkedIn). Also, the RHP is separately inconsistent on whether he also serves as a director of Carving Futures Pte. Ltd. or not. It lists him on the holding company's board in one place while recording nil foreign directorships in his own profile. No breach is apparent from the disclosure, but it does raise a question over how independent he is.

• Coming to the core therapy business, fresh enrolments fell from 7,307 in FY24 to 6,903 in FY26, and children served also moderated from 9,344 to 9,205. This is despite the company almost doubling its India centres from 71 to 136 over the same period. The company counts a repeat client as a child who has taken more than 12 sessions in total. In FY26 it had 4,265 repeat clients of the 9,205 children served, or 46% (12 sessions is a low threshold for therapy sold in six to nine month plans). Active enrolments stood at 2,500 as on March 31, 2026, against 58,000 children served since 2018.

• Therapy centres earn less as they mature. Centres older than 36 months generated ₹0.33 mn of revenue a month each in FY26, down from ₹0.50 mn in FY25 and ₹0.71 mn in FY24. Blended revenue per centre did rise over the same period, from ₹0.18 mn to ₹0.23 mn a month, but that came from mature centres forming a larger share of the network rather than from centres performing better. These figures cover the 80 revenue-generating centres of the 136 in India.

• The business runs on therapist hours, and those are in short supply. India had 1,20,781 special educators registered with the Rehabilitation Council of India in October 2021 against 22.5 lakh children with special needs, and free government centres and NGOs bid for the same people. Of the 540 people Rays of Belief employed as on March 31, 2026, 340 are clinical staff, and employee cost was ₹39.4 cr, or 48% of revenue. Average monthly attrition among clinical professionals was 4.41% in FY26, 3.33% in FY25 and 4.49% in FY24. A child's therapy plan runs over several months with the same therapist, so staff turnover breaks the continuity the parent is paying for.

• The company states that it ranks seventh globally among listed behavioural health players by number of centres. The six above it reported CY25 revenue between ₹9,751 cr and ₹1,51,305 cr, against ₹81.7 cr for Rays of Belief, and all six operate abroad, so the comparison spans very different scale and markets. Behavioral therapy in the United States is paid for by insurers, not by families. India has no insurance or government payor for this service, and Rays of Belief collects entirely from parents.

• The organised segment in India is in a venture-funded expansion phase and no operator has yet shown a profitable mature centre model at scale. On a comparable FY25 basis, Rays of Belief earned ₹22.0 cr from its India therapy business, against ₹14.5 cr at Bombay Autism Services, which runs Butterfly Learnings, and ₹5.1 cr at Mindeye Solutions, which runs Lissun. Both were loss-making at the operating level that year. Butterfly has since raised ₹65 cr in August 2026, taking its total to over ₹110 cr, and operates 90 centres across 22 cities; Lissun has raised USD 10.7 mn across seven rounds. Whether this model can make money at scale is still unproven.

• ₹41.4 cr of the proceeds, or 33% of the fresh issue, goes to 319 new centres by FY29, comprising 190 therapy centres, 121 school collaboration centres, 3 research centres and 5 upskilling academies, more than doubling the current network. A further ₹14.4 cr pays three years of rent on the existing 136 India centres and ₹10.1 cr does the same for the three US clinics, which contributed two thirds of FY26 profit and receive nothing for expansion.

• Nitin Bindlish founded the company in 2017 after observing, while running a dental laboratory business in Delhi, that parents of children with special needs had few affordable options (YourStory, 2018). He is a chartered accountant who previously worked at KPMG, American Express and Aon Hewitt. The company is registered with SEBI as a For-Profit Social Enterprise, offered therapy on a pay-as-you-like basis from ₹1 during the pandemic, and has served 58,000 children since 2018.

• At an issue price of ₹239, the post-offer market cap comes to ₹500 cr, being 100.7x FY26 earnings, 6.1x sales and 31.0x EV/EBITDA. Those earnings are ₹4.96 cr, two thirds of which came from three allergy clinics in Virginia acquired in June 2025, while a quarter of revenue comes from billing promoter entities.

• Mefcom Capital Markets is the sole banker to this issue and has a thin mainboard record. has led only two mainboard IPOs before this, Globe Civil Projects in June 2025 and Annu Projects very recently, in August 2026. Annu Projects got listed on September 2, 2026 at a 27% discount to its issue price of ₹99, despite a GMP of 6% and subscription of 3x.

• The issue is priced 17% below what private investors paid three months ago. Between March and May 2026 the company placed ₹5.89 cr at ₹284 and ₹290, a weighted average of ₹289, with the last tranche on May 27, 2026. The three largest allottees were Myong Zin Park, Jeffrey Daniel Shiring and Jennifer Lee Switzer, all individuals, with no institutional participation.

• The company's entire borrowing of ₹3.61 cr is owed to Eighth Fold Circle Private Limited at 14% interest. Nitin Bindlish was a director of Eighth Fold until February 2024. Six months later it entered a joint venture with Rays of Belief, funded the capital expenditure of nine centres, and sold those centres to the company in March 2025.

• No institutional investor holds a meaningful stake. Non-promoter shareholders own 8.28% before the offer, the largest being Manish Agarwal, an individual, at 2.23%, followed by KAPICO Investment Co. L.L.C at 1.22% and Rainmatter, Zerodha's investment arm, at 1.09%.

Business

• Rays of Belief operates under the Mom's Belief brand and provides assessment and therapy for children aged 18 months to 15 years with autism, ADHD, cerebral palsy, Down syndrome, intellectual disability, learning disabilities and developmental delays. Each child is assessed using licensed third-party tools, given an individualised plan, and taken through occupational therapy, speech and language therapy, behavioural support and special education. Parents are trained to continue the therapy at home.

• The network covers 136 centres in India across 57 cities and 20 states, plus three overseas. Company Learning Centres run in partnership with Licensed Professionals are the main format at 27% of FY26 revenue, where a paediatrician or therapist provides premises and referrals in exchange for a revenue share and an engagement-linked honorarium. Wholly owned centres contributed 5%. Eleven school collaboration centres and one research centre together contributed under 1%.

• Of the 136 India centres, 34 are Early Intervention Centres. These are not standalone premises: company therapists visit a partner doctor's clinic two or three times a week to screen and assess children, then refer them to a full-service centre for therapy. They are counted in the headline centre number alongside full centres.

• Referrals rather than advertising drive enrollment. Outreach runs through continuing medical education programmes for paediatricians, OPD camps, school tie-ups, ASHA and ANM worker training and digital channels.

• Domestic revenue is concentrated in North India at 43% of the FY26 total, followed by East at 24% and South at 21%. By city tier, Tier 2 cities contributed ₹14.4 cr of the ₹26.2 cr of centre revenue, Tier 1 ₹8.73 cr and Tier 3 ₹3.08 cr.

• The business is asset-light and leases almost everything. The company owns no property, 91 of its 136 centres are on leases of 11 months to 3 years with 5% to 10% annual escalation, and 12 operate rent-free in premises provided by Licensed Professionals.

• The company has one subsidiary, Mom's Belief US Inc., and one step-down subsidiary, Allergy & Immunology Virginia LLC, both incorporated in April 2025 and acquired in June 2025. It has no joint ventures or associates. Nine centres were taken over from Eighth Fold Circle Private Limited in March 2025, ending a joint venture signed seven months earlier. Separately, the company wound down its Network Centre model, a franchise-style arrangement launched in FY19 under which independently owned therapy centres operated under the Mom's Belief brand using its protocols and training. The company found it could not enforce clinical and operational standards at centres it did not run, and all 30 centre closures between FY24 and FY26 were Network Centres.

Promoters and Leadership

• Nitin Bindlish, a chartered accountant since 2004, founded the company in 2017 and is the sole executive director. He was appointed Managing Director in April 2025 for a five-year term and drew remuneration of ₹0.73 cr in FY26.

• Carving Futures Pte. Ltd. holds 91.43% of Rays of Belief and founder Nitin Bindlish holds 48.69% of Carving Futures, which translates to a look-through economic interest of around 45% in Rays of Belief before the offer. He holds just 0.29% directly in Rays of Belief.

Financials