3B Blackbio DX Ltd Management Discussions

Economic Overview

Global economy has been under pressure due to the geo-political development in Eastern Europe and Middle East Countries resulting in a worldwide surge of inflation.

Domestic Economy Despite these global challenges, Indias economy remained strong and continued to grow at a healthy pace. In the financial year 2024 25, India recorded a growth rate of 6.5%, making it the fastest-growing major economy in the world, as reported by the Reserve Bank of India (RBI).

This strong growth was supported by several factors:

Increased government spending on infrastructure and development projects??Healthy financial conditions of banks and businesses

Growing private consumption, as people resumed normal activities after the pandemic

Supportive government and RBI policies that helped manage inflation while encouraging investment and growth

The improvement in consumer spending became a key driver of economic growth. This also led to an increase in industrial activity and better use of production capacity across sectors.

Overall, Indias economic performance in 2024 25 reflects its strong foundation and ability to grow steadily even during global uncertainty. This stable and growing environment also provided a positive backdrop for businesses like ours to expand and move forward with confidence.

1. Industry Structure and Developments Agrochemical

In FY 2024-25, the Indian agrochemical sector experienced demand recovery due to broadly favorable monsoon conditions, driving a projected volume growth of +5%. However, lower agrochemical prices limited revenue growth.

Key factors contributing to this growth include population increase, rising income levels, and changing food consumption patterns, all of which are placing greater emphasis on crop yield and nutritional value. At the same time, challenges such as limited arable land, climate variability, and crop losses due to pests and diseases are reinforcing the need for effective crop protection solutions making agrochemicals a vital component of modern agriculture.

The Government of India has continued to prioritize the agrochemical sector as a strategic industry, recognizing its potential to achieve global leadership. According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the sector is expected to maintain a growth rate of 8 10% through 2025, supported by policy reforms, export incentives, and greater investment in agricultural R&D.

The agrochemicals division reported sales of 1,218.61 Lakh in FY 2024 25, compared to 1,368.51 Lakh in FY 2023 24. The decline in sales in primarily due to a one-time export order worth approximately 158.48 lakh executed in FY 2023-24 for Sudan under a tender-based procurement, which was not repeated. This was previously disclosed in the business update dated January 10, 2024.

The companys agrochemicals division maintains a steadfast commitment to government procurement, primarily facilitated through electronic tenders on platforms such as GeM. Additionally, the division diligently endeavors to expand its customer base into previously untapped regions. Presently, the Agro business operates with minimal debt, consistent with prior projections. Sales within the agrochemical sector remain stable. Furthermore, the company is intensifying efforts to enhance brand recognition for its offerings in micro fertilizers, bio fertilizers, and public health products.

The companys focus has now shifted to the Molecular Diagnostics (MDx), so agrochemicals is just being sustained so as to tap opportunities in existing government business, domestic market and export market as and when it comes.

Molecular Diagnostics

The molecular diagnostics (MDx) market in India continues to show strong growth potential, with the Total Addressable Market (TAM) for companys product range is currently estimated at approximately 350 450 crore for open system PCR kits. However, the seasonal breakout of diseases both vector borne like Dengue/Chikungunya or viral infections like flu can impact these numbers. The industry is expected to grow at a compound annual growth rate (CAGR) of 8 10% over the next few years, driven by rising adoption of PCR assays across diagnostic laboratories, hospitals, and various government-led healthcare initiatives.

This robust growth is being propelled by several key factors:

Increasing prevalence of infectious diseases, cancer, and genetic disorders

Greater awareness and acceptance of personalized medicine and companion diagnostics

Advancements in molecular technologies improving test accuracy and turnaround time

Expanding healthcare infrastructure and expenditure, especially in Tier II and Tier III cities

Government initiatives supporting precision medicine, genetic testing, and public health screening programs

The field of molecular diagnostics is undergoing rapid technological transformation. Growing technologies techniques such as RT- PCR and next-generation sequencing (NGS) are playing a pivotal role in redefining diagnostic capabilities. RT-PCR continues to be widely used due to its high sensitivity and specificity, particularly for detecting infectious diseases and genetic mutations. Meanwhile, NGS enables large-scale genomic analysis, facilitating early detection of complex diseases including cancers and inherited conditions.

As diagnostic needs evolve, molecular diagnostics is gaining prominence as a vital tool for early and accurate disease detection. The sectors ongoing innovation and growing application across clinical and public health settings highlight its expanding role in Indias healthcare ecosystem.

In summary, the Indian MDx market is positioned for sustained growth, supported by disease burden, increasing demand for precision diagnostics, technology-driven improvements, and enabling government policies. This upward trend underscores the strategic importance of molecular diagnostics in shaping the future of healthcare delivery in India.

The diagnostics division of your company is engaged in Design, Development Manufacturing and Commercialization of qPCR tests, Rapid tests, NGS based Molecular Diagnostic Kits and Extraction Kits for reliable testing on patient samples. We are the only molecular company globally to integrate offerings for Rapid Diagnostics (Lateral Flow) NGS solutions and covering the entire range of molecular diagnostic solutions in its true sense.

With the largest range of Indian IVD and CE-IVD products in the molecular diagnostics segment and our growing portfolio, we are considered as one of the leading molecular diagnostic kit manufacturers not only in India but also in the international markets.

In the molecular diagnostics division, our sales have been increasing at a rate of 25%-30% as evident in the numbers below. We have been consistently growing in sales for the past four (4) years.

FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25
2,653.00 Lakh	4,413.00 Lakh	5,675.61 Lakh	7,813.15 Lakh

Sales: 3B BlackBio Dx Limited Standalone Diagnostic Business (Non-COVID)

However, the total sales for the Molecular Diagnostics division was 8,428.25 Lakh in FY 2024-25 against 6,085.20 Lakh in FY 2023-24 (including sales from the UK subsidiary - TRUPCR? Europe Limited).

International Business / Exports

TRUPCR? assays have achieved widespread recognition and acceptance in over 70 countries, covering key regions including the UK, Europe, the Middle East, APAC, LATAM, and North America (inclusive of the United States and Canada). Building on this momentum, we are now strategically expanding into the African market through collaborations with new channel partners. Our efforts to strengthen global reach remain ongoing, with active onboarding of distributors across additional geographies.

We have successfully completed product registrations in several countries, while regulatory submissions are underway in others, ensuring compliance with regional medical device frameworks. These approvals play a critical role in enabling smoother market access and improving customer preference across diverse markets.

Our participation in international tenders both directly and via distribution partners has led to the award of annual rate contracts in several countries across the Middle East, Southeast Asia, and Europe. These contracts solidify our presence and contribute significantly to our global business value. Simultaneously, we are engaged in high-level discussions with leading international distributors.

We are also focused on penetrating untapped markets especially South-East Asia and Africa through strategic marketing initiatives, which are projected to deliver measurable outcomes in the coming financial year. Our growing traction in the Middle East reflected in a steady increase in orders from key countries validates the effectiveness of our market strategies and highlights the strong demand for our solutions.

Notably, our export business has shown a robust growth of over 97% (excluding COVID-related sales) compared to the previous fiscal year. This remarkable increase is attributed to higher order volumes from our UK subsidiary and a surge in international demand strengthened by newly awarded contracts and successful validations of our assays in key global accounts. These achievements emphasize the high quality and reliability of our products and the technical excellence we consistently deliver to our global customers.

Even with high competition across markets, we are strategically positioned for a growth of 20-25% in the international business in the FY 2025-26. We aim to leverage our established strengths, capitalize on new opportunities to sustain our upward trajectory in the coming fiscal year.

FY 2021-22	FY 2022-23	FY 2023-24	FY 2024-25
391.48 Lakh	694.46 Lakh	868.99 Lakh	1,710.41 Lakh

Sales: Export - 3B BlackBio Dx Limited Standalone Diagnostic Business (Non-COVID)

PERFORMANCE OF THE UK SUBSIDIARY

Our UK subsidiary, TRUPCR? Europe Limited (TPE), has become a strategic growth contributor, gaining significant traction across Europe with its "Made in UK" product portfolio. The Manchester facility integrating sales, marketing, technical support, and R&D has enabled proactive response and efficient service delivery. Enhanced by EU-compliant branding and streamlined logistics, TPE has successfully expanded into LATAM and African markets.

The sites ISO 13485:2016 certification by BSI, UK reaffirms our commitment to quality and regulatory standards, bolstering customer confidence and facilitating broader market access. In FY 2024 25, TPE delivered a notable increase in sales over FY 2023 24, aligning well with expectations.

With revenue growth surpassing 90% in FY 2024 25, our UK operations clearly reflect the effectiveness of our strategic investments. We project continued growth of 20 25% in the current fiscal year, positioning the subsidiary as a central pillar in our global expansion efforts.

FY 2023-24	FY 2024-25
? 664,059	? 1,287,580

RAPID KIT VERTICAL (LATERAL FLOW TECHNOLOGY)

The Rapid Kit manufacturing facility is now fully operational, and R&D efforts are underway to optimize additional products with strong market potential beyond the current range. With regulatory approvals from CDSCO, Government of India, for the existing TRURAPID? product line, we plan to expand the portfolio progressively as new products are finalized by the R&D team. The company has added some novel products in Rapid Kit vertical for detection of Antimicrobial Resistance (AMR) genes.

NEXT-GEN SEQUENCING (NGS) VERTICAL

We have started getting some traction for the TRUNGS? assays from the customers however, it is very low. The NGS market is at a very nascent stage and is dominated by Whole Genome Sequencing, Whole Exome Sequencing, NIPT etc. TRUNGS? is focussed on very niche products in this segment, hence, it will be difficult to quantify and forecast the benefits at this point. With the TRUNGS? vertical, we are keeping ourselves technologically viable so that we can offer all the molecular diagnostics solutions to our customers under one roof.

We had launched the "TRUNGSR Solid Tumor Panel" for detection genes associated with solid tumors such as lung, gastro-intestinal/colorectal, breast, liver and ovarian tumors. And now, after extensive R&D efforts, we have added PAN-MYELOID NGS Panel, BRCA Plus Kit & Endometrial Cancer Panel in this vertical.

DIGITAL PCR (NEW R&D)

As our R&D team is committed to the development of innovative products, we endeavor to bring to market new products that not only meet but exceed industry standards for quality, performance, and reliability.

Continuing our journey for R&D, our team has been working on the development of assays based on Digital PCR (dPCR) technology which enables absolute quantification of target nucleic acids. We are hopeful that the products under this segment will be available for commercial launch by Q2 / Q3 of FY 2025-26.

By leveraging the capabilities of dPCR technology, our R&D team has the opportunity to develop innovative assays that address key challenges in healthcare & biotechnology. This could lead to the development of valuable diagnostic tools with significant impact on disease detection, treatment monitoring, and research advancements.

SUMMARY

The company has become a market leader in India in the molecular diagnostic segment. The consolidated revenue of the company stands at 9,646.86 Lakh in the FY 2024-25 against 7,412.47 Lakh in the FY 2023-24.

2. Outlook & Opportunities

The field of molecular diagnostics is undergoing rapid transformation, driven by continuous technological advancements that are significantly enhancing diagnostic accuracy, sensitivity, and turnaround time. Core technologies such as polymerase chain reaction (PCR) and next-generation sequencing (NGS) continue to lead this evolution. PCR remains a widely adopted method for the detection of infectious agents and genetic mutations due to its precision and reliability, while NGS enables comprehensive genomic profiling, offering critical insights into complex diseases such as cancer and inherited disorders.

While the Indian molecular diagnostics market has historically been dominated by multinational companies and concentrated in metro cities, the landscape is beginning to shift. The introduction of cost-effective, indigenously developed diagnostic kits and the establishment of PCR testing centers in smaller towns and semi-urban areas are expanding access and awareness. This democratization of advanced diagnostics is expected to drive substantial growth in the coming years.

During FY 2024 25, the company continued to strengthen its position in the molecular diagnostics space. Our growing portfolio of high-quality, reliable diagnostic kits has seen increasing demand across both private and public sector laboratories. We have successfully scaled up production to meet market requirements and are continuously expanding into next-generation molecular diagnostic technologies, in line with emerging healthcare needs.

These efforts are aligned with our commitment to advancing healthcare accessibility and supporting the shift toward precision and preventive diagnostics. As the industry evolves, the company remains well-positioned to leverage new opportunities and play a key role in shaping the future of molecular diagnostics in India.

3. Discussion on Financial Performance with Respect to Operational Performance / Segment Wise or Product-Wise Performance

The company has become a market leader in India in the molecular diagnostic segment. The consolidated revenue of the company stands at 9,646.86 Lakh in the FY 2024-25 against 7,412.47 Lakh in the FY 2023-24. The EBITDA stand at 6,519.25 Lakh in the FY 2024-25 against 4,551.38 Lakh and PAT stand at 4,769.10 Lakh against 3,210.12 Lakh.

Financial Performance (Standalone):

S.No. Particulars	2024-25	2023-24	% Change
I Sales Turnover	9052.97	7072.45	28.00
II Profit before Depreciation	6478.49	4731.30	36.93
Less: Depreciation	85.74	86.85	-1.28
III Profit before Tax (PBT)	6392.75	4644.45	37.64
Less: Provision for Tax	1636.80	1223.10	33.82
IV Net Profit after Tax	4755.95	3421.35	39.00

Financial Performance (Consolidated)

S.No. Particulars	2024-25	2023-24	% Change
I Sales Turnover	9646.86	7412.47	30.14
II Profit before Depreciation	6508.40	4538.93	43.39
Less: Depreciation	108.59	105.71	2.72
III Profit before Tax (PBT)	6399.81	4433.22	44.36
Less: Provision for Tax	1630.71	1223.10	33.33
IV Net Profit after Tax	4769.10	3210.12	48.56

4. Risk and concerns

Development of Molecular Diagnostic Market is a slow process, as it requires investments to create new set ups / convince existing customers with free samples to switch their suppliers and brand establishing by word of mouth. Thus, one needs to exist for a long time period in this market to reap the rewards.

The agrochemical industry is depended on monsoon and pest attack. With global warming weather pattern is becoming unpredictable, which is a risk.

5. Opportunities & Threats

a. Environmental, Health & Safety (EHS): We operate in a setting where EHS standards continue to evolve and where hazards such as fires/explosions, failures of mechanical or pollution-control systems, and accidental spills or releases of hazardous substances can occur. Such events may trigger regulatory shutdowns, fines, reputational damage, and loss of market share. We mitigate these risks through continuous horizon scanning for legal changes, regular SOP updates and training, upgrades to safety systems, preventive maintenance and integrity testing, routine spill/effluent monitoring, emergency drills that reinforce an EHS-first culture, and periodic independent audits.

b. Regulatory Changes: Health authorities across different markets continue to tighten requirements around registration, safety, labelling, pharmacovigilance/post-market surveillance and environmental stewardship. While this adds time and cost to approvals, it also rewards manufacturers with strong evidence packages, transparent claims and audit-ready systems. The Company is strengthening regulatory framework, harmonising documentation, and investing in training so that compliance becomes a competitive advantage for us within India and internationally.

c. Pricing Pressure and Changes in Market Dynamics: Our segment faces new entrants, shifting competitor go-to-market strategies, rising competitive intensity, and disruptive technologies and channels (e.g., point-of-care, automation). These dynamics can affect revenue, profitability, market share, brand equity, and business continuity, and may accelerate obsolescence. We respond with a diversified product portfolio by adding different technologies in our portfolio like Rapid, NGS and digital PCR. Not only technology, we have a broad & less-concentrated customer base, sustained customer engagement, structured market intelligence, continued R&D and technology refresh, and adaptability to access emerging technologies faster. We are shifting towards higher-value use cases (syndromic panels, viral load, AMR), quick QC/validation support, reagent-rental contracts to mitigate this risk.

d. Supply Chain & Logistics: Volatility in freight and customs, shortages of critical reagents and disposables single-source dependencies, and geopolitical or public-health disruptions can affect production costs, schedules, on-time delivery, customer satisfaction, and revenue recognition. We mitigate by maintaining safety stocks for critical components, enforcing supplier quality agreements and audits, diversifying freight modes, running an S&OP process with forecasting, and maintaining business-continuity plans and optimized Incoterms.

e. Liquidity: Capital-market volatility can constrain access to equity or debt, affecting profitability, cash flows, and day-to-day operations. We maintain regular monitoring of cash-flow with early-warning indicators, ensure sufficient credit lines are in place across subsidiaries in the required currency, and optimize working capital (receivables, inventory, payables).

f. Tax: Complex rules and divergent interpretations can lead to disputes, reassessments, and reputational risk, with implications for cash flows and operations. Our mitigation includes regular monitoring of proposals and rule changes, strong compliance controls, proper documentation and periodic internal reviews.

6. Internal Control Systems and their Adequacy

The company has an elaborate system of internal controls to ensure optimal utilization of companys resources and protection thereof, facilitating accurate and speedy compilation of accounts and management information reports and compliance with laws and regulations. The company has a well-defined organization structure, authority levels and internal guidelines and rules for conducting business transactions. The internal Auditors and companys internal audit department conduct regular audits to ensure adequacy of internal control system, adherence to management instruction and compliance with laws and regulations of the country as well as to suggest improvements.

7. Human Resources

The Company firmly believes that Human Resources and knowledge capital are vital for business success and creating value for stakeholders. The Company recognizes the fact that people drive business success, strengthening its efforts to build leadership at all levels. It emphasizes on the freedom to express views, competitive pay structure, performance-based reward system and growth opportunities and internal job opportunities, critical assignments within the organization for career options for the employees. The industrial relations at both the units have remained quite cordial with total dedicated efforts from employees.

The total number of employees as on 31^st March 2025 was 85.

8. Details of Significant Changes (i.e., Change of 25% or More as Compared to the Immediately Previous

Financial Year) in Key Financial Ratios, along with Detailed Explanations therefore, including

S.No. Ratios	FY 2024-25	FY 2023-24	Explanation for significant change
a. Debtors Turnover	2.65	2.11	Improved due to increase in Credit Sales
b. Inventory Turnover	11.04	8.80	Improved due to increase in Sales
c. Interest Coverage Ratio	661.16	356.22	Improved due to reduction in outstanding loan and increase in EBIT
d. Current Ratio	7.11	7.04	NA
e. Debt Equity Ratio	0.00	0.00	NA
f. Operating Profit Margin (%)	51.94%	44.49%	NA
g. Net Profit Margin (%)	49.44%	43.31%	NA

9. Details of any Change in Return on Net Worth as Compared to the Immediately Previous Financial

Year along with a Detailed Explanation thereof:

S. No. Ratios	FY 2024-25	FY 2023-24	Explanation for significant change
a. Return on Net Worth (%)	23.13%	19.28%	NA

10. Cautionary Statement

The Management Discussion and Analysis report containing your Companys objectives, projections, estimates and expectation may constitute certain statements, which are forward looking within the meaning of applicable laws and regulations. The statements in this management discussion and analysis report could differ materially from those expressed or implied. Important factors that could make a difference to the

Companys operation include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, changes in the governmental regulations, tax regimes, forex markets, economic developments within India and the countries with which the Company conducts business and other incidental factors.

	FOR AND ON BEHALF OF THE BOARD
DHIRENDRA DUBEY	NIKHIL KUBER DUBEY
CHAIRMAN & MANAGING DIRECTOR	CHIEF FINANCIAL OFFICER & WHOLETIME DIRECTOR
DIN: 01493040	DIN: 00538049
PLACE: BHOPAL
DATE: 14th August 2025
	For BAHETI & Co.,
	Chartered Accountants
	(DEEPAK BAHETI)
	PARTNER
	Firm Registration No. 006287C
	Membership No. 075063
Place: Bhopal
Date: 14th August 2025
	Peer Review No: 013931
	UDIN: 25075063BMGYCW2430