Adeshwar Meditex Ltd Management Discussions

Introduction:

Managements discussion and analysis ("MD&A") focuses on significant factors that have affected Adeshwar Meditex Limited (the "Company") and such factors that may affect its future performance. This MD&A should be read in conjunction with the audited financial statements and notes, and is intended to help stakeholders assess the companys financial health, growth potential, and long-term strategy. All amounts are expressed in lacs unless otherwise indicated.

The medical devices and healthcare consumables industry continues to experience steady growth, supported by increasing healthcare expenditure, expanding healthcare infrastructure, greater awareness of infection prevention, and rising demand for quality medical products across domestic and international markets. The market for first aid kits, surgical dressings, surgical plastics, and medical disposables has been driven by the growing emphasis on patient safety, improved healthcare access, and increasing regulatory standards governing medical products.

As a company operating in the healthcare and medical industry, Adeshwar Meditex Limited remains focused on delivering innovative solutions, improving patient outcomes, and ensuring operational excellence across our core segments.

Our vision is to be global leaders in the field of sterile surgical wound dressings guided by an unwavering commitment to significantly improve our product offerings through innovation. We will continuously strive to offer differentiated products of high-quality, focused on patient needs. Our vision to grow will be through our efforts to explore business development in the local and export markets diligently following our laid down principles of maintaining international standards of good manufacturing practices, quality, R & D, timely delivery and competitive prices.

Wound Dressing Market:

The global wound care market continues to expand, driven by rising incidences of chronic and surgical wounds and a shift toward advanced and intelligent dressing solutions. Advanced dressing submarkets—including hydrocolloid, hydrogel, foam, and antimicrobial products—are particularly dynamic, fueling growth with higher healing efficacy, patient comfort, and outpatient suitability. Emerging technologies such as telehealth-compatible "smart" dressings and sustainable, ecofriendly materials are transforming product portfolios and market trajectories.

The global surgical dressing materials market is expected to grow steadily, with industry estimates projecting the market to increase from USD 10.4 billion in 2026 to USD 19.0 billion by 2036, reflecting a CAGR of approximately 6.2%. Similarly, the global disposable surgical dressing kits market, valued at USD 4.8 billion in 2025, is projected to reach USD 8.6 billion by 2034, registering a CAGR of 6.7%. Market growth is being driven by increasing surgical procedures, rising prevalence of chronic diseases such as diabetes, growing awareness of infection prevention, and the expanding adoption of advanced wound care products. The increasing shift towards outpatient healthcare, coupled with stringent healthcare quality standards, continues to support demand for sterile, single-use surgical dressing products.

The Asia-Pacific region is expected to be the fastest-growing market, projected to expand at a CAGR of 8.3% from 2026 to 2034, capturing an estimated share of 24.8% in 2025, driven by expanding healthcare infrastructure, rising healthcare expenditure, increasing insurance coverage, and government initiatives to improve healthcare access in countries such as India and China. Rapid growth in medical tourism, an ageing population, and investments in hospital infrastructure across emerging economies are creating significant opportunities for manufacturers of surgical dressings and medical disposables. Overall, the long-term outlook for the global surgical dressing market remains positive, supported by sustained demand for high-quality wound care and infection control solutions.

Other factors that may contribute to the growth of the wound care market in India include: Rising chronic diseases burden, increasing surgical procedures, expansion of healthcare infrastructure, and rapidly growing medical tourism industry.

Opportunities:

The Indian market presents significant growth opportunities for manufacturers and exporters of first aid kits, surgical dressings, surgical plastics, and other medical disposables. Rising healthcare expenditure, expanding hospital and diagnostic infrastructure, increasing awareness of infection prevention and wound care, and a growing burden of chronic diseases are driving sustained demand for quality medical consumables. Government initiatives such as Ayushman Bharat, the Production Linked Incentive (PLI) Scheme for medical devices, and the Make in India programme are further encouraging domestic manufacturing and reducing dependence on imports.

India is also strengthening its position as a global manufacturing and export hub for medical disposables due to its cost competitiveness, skilled workforce, and improving quality standards. Growing demand from emerging markets in Africa, the Middle East, Asia, and Latin America, coupled with increasing global preference for diversified supply chains, offers significant export opportunities. In addition, rising adoption of advanced wound care products, expansion of e- commerce and institutional procurement, and continuous product innovation are expected to support long-term business growth for manufacturers in the medical consumables sector.

Threats:

While the Medicare and pharma market in India shows strong growth, several threats persist in FY 2025-26. There are several obstacles that could prevent the Indian medical consumables market from expanding. Manufacturers frequently face major obstacles from regulatory and compliance norms, which raises production costs and delays the release of new items onto the market. Furthermore, the cost of sophisticated medical supplies including surgical tools, and specialty wound care products restricts their availability, especially in areas with limited resources. Certain regions inadequate healthcare infrastructure further lowers demand since facilities may find it difficult to successfully integrate and use contemporary consumables. Consumer trust can be damaged by worries about product recalls, safety, and quality control, which can impede market growth. Together, these problems highlight how healthcare systems must be improved, made more affordable, and innovative in order to promote long-term growth.

CHANGES IN KEY FINANCIAL RATIOS:

Pursuant to provisions of Regulation34 (3) of SEBI (LODR) Regulation, 2015 read with Schedule V Part B(1) details of changes in Key Financial Ratios is given hereunder:

Key Financial Ratio	FY 2025-26	FY 2024-26
1. Debtors Turnover Ratio	2.01	2.78
2. Inventory Turnover Ratio	1.98	2.77
3. Interest Coverage Ratio	3.25	3.40
4. Current Ratio	4.27	1.98
5. Debt Equity Ratio	0.31	0.95
6. Operation Profit Margin	4.17	4.71
7. Net Profit Margin	0.02	0.02
8. Change in Return on Net Worth	0.03	0.06

*Previous years Figures have been regrouped / rearranged wherever necessary

Risks and concerns:

The nature and the magnitude of the risks associated with the Company are reviewed and placed before the Board periodically. Various measures for modernization have been introduced to reduce the dependency of labour, which also ensures optimum capacity utilization & quality outputs.

Health, safety and Security Environment:

Our Company has always been adopting all possible safety measures concerning the health and safety of the Workers and staffs at all levels. This has improved the morale among the workers and staffs and also the working environment at large. We believe in maintaining the highest ethical standards to strive towards better health for patients worldwide through leading innovation in sterile surgical wound dressings and medical disposables.

Human Resources/Industrial Relations:

Employer-Employee relations continued to remain cordial during the year at all the units of the Company. Necessary measures are being adopted to improve the life, work culture, productivity, efficiency and effectiveness of the workers and staff at all levels. Even under the situation of Non availability of skilled manpower, the costs of recruiting, training and deploying trained labour still remains a major constraint to the Company.

Financial Performance with respect to operational performance:

The Financial performance of the Company for the year 2025-26 is described in the Directors Report under the head operations.

Cautionary Statement:

Statement in this Management Discussion and Analysis Report, Describing the Companys objectives, estimates and expectations may constitute Forward Looking Statements within the meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.