Aprameya Engineering Ltd Management Discussions

a) Industry Structure and Developments:

Healthcare continues to be one of Indias largest and fastest-growing sectors, both in terms of revenue generation and employment. The sector comprises hospitals, medical devices, diagnostics, pharmaceuticals, clinical trials, telemedicine, digital health, medical tourism, health insurance, and healthcare infrastructure. Rising healthcare awareness, increasing life expectancy, growing incidence of lifestyle diseases, technological advancements, and sustained investments by both Government and private players continue to drive the sectors long-term growth.

Indias healthcare delivery system is broadly classified into two major segments - public and private. The public healthcare system continues to strengthen through increased Government investment in Primary Health Centres (PHCs), Community Health Centres (CHCs), district hospitals, medical colleges, and tertiary care institutions. Simultaneously, the private healthcare sector continues to expand rapidly through investments in multispecialty hospitals, super-specialty centres, diagnostic facilities, ambulatory care, and advanced medical technologies, particularly across Tier-I, Tier-II and Tier-Ill cities.

Indias competitive advantage continues to be supported by its large pool of highly s kill ed medical professionals, cost-efficient healthcare services, and growing manufacturing capabilities in the medical devices sector. Healthcare delivery costs in India remain significantly lower than those in developed economies, making the country an attractive destination for medical tourism. In addition, India is increasingly emerging as a global hub for medical research, clinical trials, contract manufacturing, and innovation in healthcare technologies.

The healthcare sector has emerged as one of the countrys largest employers and continues to generate significant employment opportunities. Increasing adoption of Artificial Intelligence (AI), robotics, digital healthcare platforms, remote patient monitoring, and data-driven healthcare solutions is expected to transform healthcare delivery while creating new opportunities for skilled professionals across the healthcare ecosystem.

b) Indian Economic Environment:

India continues to remain among the worlds fastest-growing major economies, supported by resilient domestic demand, improving infrastructure, robust Government capital expenditure, favourable

demographics, and increasing private sector investments. Stable macroeconomic fundamentals, controlled inflation, improving tax collections, and continued policy reforms are expected to support sustainable economic growth over the medium term.

Government initiatives such as Make in India, Production Linked Incentive (PLI) Scheme, Ayushman Bharat, PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), and the continued focus on domestic manufacturing are expected to strengthen Indias healthcare ecosystem and reduce dependence on imported medical technologies.

India continues to attract strong foreign direct investment across manufacturing, healthcare, pharmaceuticals, electronics, and technology sectors. Continued emphasis on ease of doing business, infrastructure development, digital transformation, and manufacturing competitiveness is expected to further enhance Indias position as a preferred global investment destination.

With rising disposable incomes, increasing healthcare awareness, expanding health insurance coverage, and growing investments in healthcare infrastructure, India is expected to remain one of the fastest- growing healthcare markets globally.

c) Industry Structure and Developments:

Indias healthcare industry continues to witness structural transformation driven by increasing Government expenditure, expanding private sector participation, technological advancements, rising health insurance penetration, and growing demand for quality healthcare services. Healthcare infrastructure development remains a national priority with significant investments being made in hospitals, medical colleges, critical care facilities, diagnostic centres, and digital healthcare infrastructure.

d) Dual Structure: Public and Private Sectors:

Indias healthcare delivery system continues to operate through two complementary segments:

Public Healthcare, which focuses on expanding affordable healthcare access through Primary Health Centres (PHCs), Community Health Centres (CHCs), district hospitals, AIIMS, Government Medical Colleges, and various national healthcare programmes.

Private Healthcare, which continues to lead investments in secondary, tertiary, and quaternary healthcare services through multispecialty hospitals, corporate hospital chains, specialty centres, diagnostics, and advanced medical technologies.

While Government initiatives continue to improve healthcare accessibility and infrastructure across the country, the private sector remains the primary driver of innovation, advanced treatment technologies, specialised healthcare services, and investment in modern healthcare infrastructure.

The growing demand for modular operation theatres, intensive care units, mobile diagnostic solutions, robotic-assisted surgery, advanced imaging systems, digital healthcare platforms, and integrated turnkey healthcare infrastructure presents significant long-term opportunities for companies operating in the healthcare infrastructure and medical technology sectors. The Governments continued emphasis on indigenous manufacturing under the Make in India initiative and the increasing adoption of advanced healthcare technologies are expected to further accelerate growth in the Indian medical devices and healthcare infrastructure industry over the coming years.

e) Indias Competitive Advantage:

India continues to enjoy a significant competitive advantage owing to its large pool of highly skilled healthcare professionals, cost-efficient healthcare delivery, and rapidly expanding healthcare infrastructure. The cost of major medical procedures in India remains substantially lower than that in developed economies such as the United States, Europe, and several Asia-Pacific countries, while maintaining internationally accepted quality standards. This affordability, combined with clinical excellence, has positioned India as one of the worlds preferred destinations for medical value travel.

India is also emerging as a global hub for clinical research, biotechnology, pharmaceutical innovation, digital healthcare, and medical device manufacturing. The Governments continued emphasis on Make in India, Production Linked Incentive (PLI) Schemes, and strengthening of the domestic medical technology ecosystem is encouraging significant investments in research, innovation, and indigenous manufacturing.

f) Healthcare Infrastructure: Demand-Supply Gaps:

Despite significant progress, Indias healthcare infrastructure continues to face a substantial demand-supply gap, creating long-term opportunities for healthcare infrastructure companies.

India currently has approximately 1.9-2.0 million hospital beds, which remains below the estimated requirement of over 4.5 million beds to adequately serve its growing population. Hospital bed availability continues to remain around 1.3-1.5 beds per 1,000 population, compared with the global average of nearly 3 beds per 1,000 population.

The country also continues to face shortages of specialist doctors, nurses, and allied healthcare professionals, particularly in Tier-II, Tier-Ill, and rural regions. While healthcare infrastructure has improved considerably over the last decade, increasing urbanisation, rising disease burden, and growing healthcare awareness continue to generate significant demand for new hospitals, medical colleges, critical care facilities, diagnostic centres, and advanced healthcare infrastructure.

To bridge these gaps, both Government and private healthcare providers continue to invest aggressively in capacity expansion. Large hospital chains are expanding into Tier-II and Tier-Ill cities, while State Governments continue to establish new medical colleges, super-speciality hospitals, trauma centres, cancer care facilities, and critical care infrastructure.

g) Policy and Budgetary Support:

The healthcare sector continues to receive strong policy support from the Government of India through sustained investments in healthcare infrastructure, medical education, digital health, and indigenous manufacturing.

The Union Budget 2026-27 has further strengthened allocations for healthcare infrastructure, expansion of medical colleges, establishment of new AIIMS, health research, and critical care facilities. Continued funding under the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), Ayushman Bharat, PM-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), and the National Health Mission (NHM) is expected to accelerate healthcare infrastructure development across the country.

h) Major Government initiatives include:

- Expansion of AIIMS and Government Medical Colleges across the country.

- Development of new district hospitals, trauma centres, cancer care centres, and critical care blocks.

- Strengthening digital healthcare through the Ayushman Bharat Digital Mission.

- Continued support for domestic manufacturing of medical devices under the PLI Scheme.

- Expansion of medical education and allied healthcare workforce through new institutions and increased training capacity.

i) Medical Devices Sector: A Growth Engine:

Indias medical devices industry continues to be one of the fastest-growing segments within the healthcare sector and is expected to witness sustained long-term growth, supported by rising healthcare expenditure, increasing localisation, technological innovation, and Government policy support.

The Indian medical devices market is projected to reach approximately US$50 billion by 2030, driven by increasing demand for advanced diagnostics, imaging systems, minimally invasive surgery, robotic surgery, critical care equipment, and digital healthcare technologies.

Key growth drivers include:

- Increasing adoption of smart hospitals, Artificial Intelligence (AI), robotics, digital health, and remote patient monitoring.

- Rising healthcare expenditure and health insurance penetration across Tier-II and Tier-Ill cities.

- Continued Government support under the Production Linked Incentive (PLI) Scheme and the Make in India initiative.

- Expansion of indigenous medical device manufacturing and import substitution.

- Growing investments by multinational companies in research & development, innovation centres, and manufacturing facilities in India.

- Rising demand for modular operation theatres, hybrid OTs, mobile diagnostic solutions, and integrated healthcare infrastructure.

These structural growth drivers are expected to create significant longterm opportunities for companies engaged in turnkey healthcare infrastructure, medical technology integration, and indigenous medical device manufacturing.

j) Positioning of Aprameya Engineering Limited within the Healthcare Sector:

Aprameya Engineering Limited has established itself as a trusted healthcare infrastructure company with over two decades of experience in delivering integrated turnkey healthcare solutions across Government and private healthcare institutions. The Company offers end-to-end solutions encompassing planning, design, engineering, procurement, installation, testing, commissioning and maintenance of healthcare infrastructure projects.

The Companys expertise spans modular operation theatres, intensive care units (ICUs), neonatal and paediatric intensive care units (NICUs/PICUs), dialysis centres, catheterization laboratories, electrophysiology laboratories, mobile diagnostic solutions and prefabricated healthcare infrastructure. Through strategic partnerships with leading global and domestic medical technology companies, Aprameya provides advanced medical equipment integration and comprehensive lifecycle support services.

During the year, the Company continued to strengthen its capabilities through its majority (70%) owned subsidiary, Aprameya Medtech Private Limited, which is establishing a Medical Equipments & Devices manufacturing facility with a built-up area of approximately 45,000 sq. ft. The facility is expected to become operational during 2027 and will support the Companys long-term strategy of indigenous manufacturing under the Governments Make in India initiative.

The Company has also commenced development of its own medical device portfolio with the successful launch of HystoPress range of products, an intelligent fluid management system for hysteroscopic procedures. Going forward, management intends to expand its product portfolio across operation theatres, womens healthcare, minimally invasive surgeiy and critical care segments.

The Company has successfully executed several advanced healthcare projects including Mobile CT Scan Systems, Electrophysiology

Laboratories, Modular Operation Theatre Complexes, Robotic Surgery Solutions and integrated hospital infrastructure projects.

k) Market Presence and Expansion:

The Company has established its operational presence across Gujarat, Rajasthan, Maharashtra and Delhi and continues to expand into Bihar, Odisha, Chhattisgarh, Uttarakhand and other emerging healthcare markets. The Companys growing geographical footprint is expected to strengthen its market position while reducing regional concentration.

l) Execution and Outlook:

Having executed healthcare infrastructure projects exceeding Rs300 crore, installed more than 2,000 critical care beds and completed projects across premier Government hospitals and medical institutions, the Company has developed strong project execution capabilities. Supported by a healthy order pipeline, expanding manufacturing capabilities and increasing recurring service revenues, Aprameya Engineering Limited remains well-positioned to participate in Indias growing healthcare infrastructure sector.

m) Strengths, Weaknesses, Opportunities and Threats:

Strengths

- Over two decades of experience in healthcare infrastructure and medical technology integration.

- Proven execution capability across turnkey healthcare projects in multiple states.

- Strong and long-standing relationships with leading global medical technology OEMs.

- Appointed as the exclusive channel partner of Sonoscape Medical Pvt. Ltd., the Indian subsidiary of Sonoscape Medical Corp., for West India and South India for its complete Minimally Invasive Surgery (MIS) portfolio, including laparoscopy and endoscopy systems,

further strengthening the Companys presence in advanced surgical technologies and medical equipment solutions.

- Growing indigenous manufacturing capabilities through its subsidiary namely Aprameya Medtech Private Limited, supporting the Governments Make in India initiative and expanding the Companys product portfolio.

- Dedicated and skilled in-house engineering and service team providing comprehensive installation, commissioning, preventive maintenance and after-sales support.

- Diversified business model encompassing turnkey healthcare infrastructure, medical equipment integration, indigenous manufacturing and lifecycle support services.

- Healthy balance sheet supported by improving operating cash flows, prudent working capital management and reduced borrowings.

- Established execution capabilities with a growing pan-India presence across Government and private healthcare institutions, supported by expanding regional operations and service infrastructure.

Weaknesses

- Significant dependence on Government healthcare infrastructure projects.

- Manufacturing operations are presently under implementation and expected to commence during 2027.

- Limited presence in international markets.

- Dependence on imported high-end medical equipment and technology supplied through OEM partners.

Opportunities

- Continued expansion of healthcare infrastructure across India.

- Increasing Government expenditure under Ayushman Bharat, PM- ABHIM and other healthcare initiatives.

- Rising demand for modular hospitals, critical care infrastructure and integrated turnkey healthcare solutions.

- Growing opportunities in indigenous medical device manufacturing under the Make in India initiative.

- Expansion of recurring revenues through AMC, CAMC and lifecycle maintenance services.

- Increasing adoption of robotic surgery, digital healthcare and AI- enabled medical technologies.

Threats

- Delays in Government tendering processes and project execution.

- Foreign exchange fluctuations impacting imported medical equipment.

- Global supply chain disruptions.

- Increasing competition within the healthcare infrastructure sector.

- Technological advancements requiring continuous investment in innovation and product development.

n) Risk Management:

Aprameya Engineering Limited follows a structured risk management framework to identify, assess and mitigate strategic, operational, financial and regulatory risks that may impact business performance. The Company periodically reviews its risk management processes and implements appropriate mitigation measures in line with changing business and economic conditions.

o) Key Risk Areas and Mitigation Measures:

- Execution and Project Delays: Risks arising from site readiness, statutoiy approvals and project coordination are managed through detailed project planning, continuous monitoring and regular customer engagement.

- Dependence on Government Projects: The Company continues to diversify its customer base by increasing participation in private healthcare projects and expanding its geographical presence across multiple states.

- Supply Chain and OEM Dependency: Procurement risks are mitigated through strategic relationships with multiple OEM partners, diversified sourcing and effective inventory management.

- Working Capital Management: The Company maintains a disciplined approach towards receivable management, project billing and cash flow monitoring to ensure adequate liquidity.

- Manufacturing and Technology Risks: The Company continues to invest in indigenous product development, manufacturing capabilities and quality systems through Aprameya Medtech Private Limited.

- Geographical Expansion: Expansion into new markets is supported through experienced regional teams, local partnerships and phased execution strategies to minimise operational risks.

p) Financial and Operational Performance Overview:

In FY26, Aprameya Engineering Limited tried its best to deliver performance, but owing to the delayed realization of its debtors, the liquidity of the Company was stuck for a considerable time and the Company could not bid for the various tenders.

q) Key financial highlights for FY26:

Revenue from Operations: Rs 5474.75 Lacs (vs Rs 13570.71 Lacs in FY25)

EBITDA: Rs 1090.67 Lacs in comparison to Rs. 2499.34 Lacs in previous year PAT: Rs 504.11 Lacs ( Rs. 1611.61 Lacs in previous year )

EPS: Rs 2.65 versus Rs. 9.27 in the previous year

Total Comprehensive Income: t 507.70 Lacs in comparison to previous year of Rs. 1609.33 Lacs

Despite moderate working capital intensity, Aprameya continues to maintain a lean operating model, supported by efficient project execution and expanding regional presence.

r) Outlook:

Aprameya Engineering Ltd enters FY26 with strong momentum, backed by a healthy order book, growing demand for healthcare infrastructure, and increasing focus on modular and technology-led solutions.

The company expects continued opportunities in both government and private healthcare segments, especially in Tier 2 and 3 cities. With its presence in high-growth markets and planned expansion into new states, Aprameya aims to strengthen its execution footprint and deepen OEM-led solution offerings.

s) Key growth drivers going forward include:

- Rising healthcare capex across states

- Greater demand for turnkey and mobile medical units

- Expanding service revenues through AMC/ CAMC contracts

- Increased adoption of robotic surgery and digital diagnostics

- With a solid foundation, lean business model, and experienced team, Aprameya remains well-positioned to scale operations and contribute meaningfully to Indias healthcare infrastructure growth.

t) Internal Control Systems and Adequacy:

The Company has an effective and reliable internal control system, commensurate with its size and operations. It ensures compliance with statutory requirements, safeguards assets, prevents frauds and errors, and supports accurate and timely financial reporting. The system is regularly reviewed through internal audits, self-assessments, and statutory audits to maintain its effectiveness.

u) Accounting Treatment:

The financial statements have been prepared in accordance with the prescribed accounting standards.

v) Human Resources

The Company follows a policy of building strong teams of talented professionals. People remain the most valuable asset of your Company. The Company recognizes people as its most valuable asset and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature and operations of the Company. The number of people employed by the Company as at 31st March 2026 was 42.

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 therefor;

CAUTIONARY STATEMENT:

The Management Discussion and Analysis report containing your Companys objectives, projections, estimates, and expectations may constitute certain statements which are forward-looking within the meaning of applicable laws and regulations. The statements therein could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operation include weather behavior, raw material availability and prices, cyclical demand, pricing in the Companys principal markets, changes in the governmental regulations, tax regimes, forex markets, and economic developments within India and in the countries with which the Company conducts business, and other incidental factors.