Artemis Medicare Services Ltd Management Discussions

(A) COMPANY OVERVIEW

Founded in 2007, Artemis Hospitals has established itself as a leading tertiary and North India, delivering patient centric, high acuity medical care supported by advanced clinical infrastructure and global quality benchmarks. Artemis was conceived with the vision of creating a world class anchored in clinical excellence, transparency, and ethical medical practices.

As on 31^st March, 2026 Artemis operates a super specialty hospital in Gurugram (Delhi NCR) with 700 beds, offering comprehensive inpatient and outpatient services more than 40 specialties and 14 Centers of Excellence. As part of its strategy to build an integrated and capital efficient healthcare ecosystem, Artemis has expanded its care delivery model beyond its flagship hospital through a portfolio of focused platforms including Artemis Lite & Daffodils and Artemis Cardiac Centers. As on 31^st March, 2026, Artemis has the 5 Cardiac centers located in Panipat, Ranchi, Patna, Bikaner, Ludhiana and 1 Artemis Lite center and 1 Daffodils center in New Delhi. These initiatives extend Artemis clinical capabilities healthcare continuum, care, specialty management, post acute rehabilitation, and long term disease monitoring. Operating largely on t asset light and hub and spoke models, these platforms tertiary, and post enhance accessibility, strengthen referral networks, optimize and support scalable growth while maintaining Artemis clinical governance and quality standards.

Artemis has extended its presence through affiliations and strategic initiatives in Raipur with 300+ beds (expected start its operations in FY2027) and VIMHANS (Vidyasagar Institute of Mental Health and Neuro & Allied Sciences), New Delhi with 650+ beds (expected to operationalise FY2029). toward Artemis Hospitals continues to pursue a focused growth from episodic, hospital strategy centered on capacity expansion, technology adoption, and specialty depth. The group plans to scale its bed capacity to approximately 2,000 beds by 2028 through a combination of brownfield expansion and new healthcare assets. Strategic prioritiesinclude strengthening leadership in high acuity specialties, expanding advanced technology platforms, scaling research and education deepening domestic and international patient Artemis operates on a core value framework of Service, Compassion, and Integrity. Its patient first approach, commitment to ethical medical practices,and emphasis on transparency underpin stakeholder trust and support long term value creation.

(B) INDUSTRY STRUCTURE AND DEVELOPMENTS Global Healthcare Industry Structure healthcare provider in The global healthcare industry is among the worlds largest and most dynamic economic sectors, underpinned by structural drivers including ageing populations, rising healthcareinstitution disease burden, increasing healthcare awareness, and rapid technological innovation and encompassing a wide continuum of services, products and to improving health outcomes and quality of life. It spans healthcare delivery, medical devices and diagnostics, health insurance, and rapidly evolving digital health and research ecosystems.

Across geographies, healthcare systems operate through a blend of public, private and hybrid models, shaped tertiary by local demographics, regulatory frameworks and sustainable operating framework. While developed markets demonstrate high healthcare penetration and mature care models, emerging economies are witnessing accelerated capacity creation, technology adoption and structural transformation creating significant opportunities for globally aligned healthcare providers. across the covering preventive and outpatient A key industry shift globally is the transition toward integratedand centric care models, with greater emphasis on continuity of care across primary, secondary, acute settings. This is being enabled by increasing adoption of digital technologies, data driven of high acuity clinical protocols, and minimally invasive treatment approaches. In emerging markets such as India, these trends are further supported by rising incomes, urbanization, and growing demand for high quality, organized healthcare delivery.

Over the coming decade, global healthcare growth will be powered by sustained demand expansion,by rapid technological innovation and the transition integrated, outcome led care models. Healthcare is progressively shifting based treatment to a continuous, interconnected and value driven ecosystem with greater emphasis on prevention, early diagnosis, and long term disease management.

Demographic and Epidemiological Shifts

Demographic and epidemiological trends remain key initiatives,and . structural drivers. Ageing population in developed markets and rising life expectancy worldwide are driving sustained demand for chronic disease management, oncology, cardiology, orthopaedics and neurosciences. Concurrently, emerging economies are experiencing a sharp rise in lifestyle related non communicable diseases, significantly expanding the addressable healthcare market.

Transition

Models

Globally, healthcare systems are transitioning siloed, hospital centric models toward integrated care networks that encompass prevention, diagnostics, acute care, rehabilitation, home healthcare and digital follow ups. This shift efficiency needforimprovedclinicaloutcomes,cost and enhanced patient experience, with providers increasingly focusing on continuity of care and long term patient engagement rather than episodic interventions. of digital health platforms, remote monitoring, and data driven clinical pathways is accelerating this enabling more personalized and proactive transition, care delivery.

Technology-Led Transformation in Healthcare Delivery

Technology has become a central pillar of global healthcare evolution, redefining clinical outcomes, operating efficiency and patient experience. innovationsshaping the future include artificial intelligence, robotics, genomics, precision medicine and digital health platforms, enabling early diagnosis, more accurate interventions, and increasingly personalized treatment pathways. At the same time, digital integration across care delivery is improving coordination, scalability, and data driven decision making.

Shift Toward Value-Based and Outcome-Driven Care

Healthcare operatingsystems worldwide are gradually moving from volume based systems to value based and outcome driven framework, with increasing emphasis on quality, patient safety and cost efficiency. providers to focus on measurable shift clinical outcomes, standardized treatment protocols, and efficient utilization, thereby aligning resource incentives with patient financial centric care delivery. Institutionswith strong clinical governance, measured outcomes and scalable platforms are expected benefit structurally over the long term.

Artemis Hospitals is well aligned with these trends, supported by internationally recognized as JCI and NABH, comprehensive accreditations quality frameworks, and a strong culture of ethical, evidence based care. Its focus on patient safety, clinical excellence and measurable outcomes positions the organization for long term value creation in an increasingly outcomes driven healthcare environment.

Over the next decade, the global healthcare industry is expected to grow faster than global GDP, supported by inelastic demand, structural tailwinds and continued innovation. Growth is likely to be characterized by:

• Sustained expansion in healthcare expenditure as a percentage of GDP across both developed and emerging markets, driven by ageing population, increasing disease burden, and expanding access to care

• Rapid growth in digital health, outpatient and homebased care

• Increasing consolidation, with large, integrated healthcare platforms gaining share through scale efficiencies, standardized clinical protocols, and stronger negotiating power

• Heightened focus on ESG considerations, including patient safety, data privacy, sustainability, and ethical governance

By 2035, Global healthcare is expected to be:

• More technology driven

• More outcome oriented

• Seamlessly integrated across the care continuum

• Less fragmented industry, with scale players commanding a higher share of industry value

Indian Healthcare Industry

Indias healthcare industry is structurally diverse and rapidly evolving, supported by a large population base, improving economic fundamentals and rising health awareness. The industry comprises both public and private players, with the private sector accounting for a healthcare delivery, care.

The industry operates under a comprehensive regulatory framework covering clinical establishments, medical education, management, data protectionand corporate governance. In recent years, there has been increasing emphasis on standardization, quality accreditation, and transparency, driving a gradual shift toward organized and compliant healthcare delivery.

Indias healthcare sector is undergoing a phase of accelerated structural growth, driven by rising incomes, increasing health awareness, expanding insurance penetration,and sustained public and private investment in healthcare infrastructure. This is further supported by increasing demand for quality care, growing medical value travel, and greater adoption of technology. According to Research analysts, Indias healthcare industry is at an inflection point and is expected to emerge as one of the largest healthcare markets globally over the next decade.

Market Size and Current Landscape

As per the analyst reports, Indias healthcare industry was valued at approximately USD 638 billion (Rs. 52.9 trillion) in FY2025, encompassing healthcare services such as hospitals, diagnostics, medical insurance, telemedicine, digital health, and medical value travel. The sector has witnessed a robust growth, expanding at a CAGR of ~19% between FY2016 and FY2023, reflectingstrong growth in healthcare consumption and rapid formalization of healthcare delivery systems.

The Indian government has allocated Rs. 99,858 crore (USD 11.50 billion) to the healthcare sector in the Union budget 2025 26 for the development, maintenance, and enhancement of the countrys healthcare system. This reflects a 9.78% increase from the previous allocation of Rs. 90,958 crore (USD10.47billion) in FY2025. Indias healthcare sector continues to present a compelling structural opportunity, underpinned by persistent underinvestment in public healthcare relative to global standards. Government healthcare expenditure in India, as a percentage of Gross Domestic Product (GDP), remains significantly lower when compared to both developed economies and several emerging markets. This structural gap limits the capacity of public healthcare infrastructure biomedical waste to fully address the medical needs of a large and rapidly growing population.

As a result, a substantial share of healthcare delivery in India is assumed by the private sector. Private healthcare providers play a critical role in supplementing public infrastructure by offering access to advanced medical technologies, specialized treatments, and wider geographical reach. This dynamic is particularly pronounced in urban and semi urban regions, where rising incomes, greater health awareness, and changing disease profiles have led to increased demand for quality healthcare services. Indias large population base, coupled with increasing life expectancy and a growing burden of non communicable diseases, continues to drive sustained demand for healthcare services. With public healthcare spending expected to remain constrained in the near to medium term, the private healthcare industry is well positioned to bridge the demand supply gap. This creates long term growth opportunities for organized private healthcare providers that can deliver high quality, affordable, and scalable healthcare solutions

Furthermore, increasing penetration of health insurance, favorable regulatory reforms, and growing acceptance of private healthcare services are expected to enhance accessibility and affordability. Collectively, these factors reinforce the strategic importance of private healthcare in Indias overall healthcare ecosystem and provide a strong foundation for sustainable growth over the long term.

Medium-Term Growth Outlook (Next 5 Years)

Indias healthcare sector is expected to sustain its high growth momentum over the medium term. According to industry estimates, USD 638 billion (Rs. 52.9 trillion) in FY2025 to over USD 1.0 trillion (Rs. 83.0 trillion) by FY2028, driven by strong private investment, insurance penetration, and expansion of healthcare infrastructure beyond metropolitan markets.

Long-Term Growth Outlook (Next 10 Years)

Over the longer term, Industry Experts projects a significantly bullish outlook for Indias healthcare sector. Based on its growth assumptions, Indias healthcare market could reach approximately USD 1.52 trillion (Rs. 126.2 trillion) over the decade. This growth trajectory is underpinned by a significant demand supply gap in healthcare infrastructure, rising burden of toward non communicable diseases, and increasing preference for organized, quality driven healthcare providers. While acknowledging challenges such as workforce constraints and uneven access to healthcare in rural areas, it is emphasized that the overall demand supply gap in healthcare infrastructure provides long term visibility for cancer care, and system sustained sector growth.

Strategic Relevance for Artemis Health Care

The high growth outlook underscorescrossed thethe scale of opportunity within Indias healthcare sector. The projected underscoring expansion to over USD 1.52 trillion over the decade, coupled with strongdemandforadvancedtertiary and quaternary care, positions organized healthcare providers such as Artemis Group to participate meaningfully in the healthcare industry could expand from next phase of sectoral growth through capacity expansion, clinical excellence, and technology enabled care delivery.

How Healthcare Business Can Grow in India

India stands at the intersection of strong demand fundamentals and structural under penetration, one of the most compelling healthcare growth stories globally.

1. Government Initiatives

The Government of India has significantly increased its focus on healthcare as a strategic pillar of inclusive economic growth. Public healthcare spending has risen steadily over the last decade, reflecting a policy shift health infrastructure, reducing out of pocket expenditure, and expanding insurance led access to quality care. In the Union Budget 2025 26, healthcare allocation stood at approximately Rs. 99,858 crore, marking a YoY increase of about 9.78%, with emphasis on infrastructure augmentation, strengthening under centrally sponsored schemes. This momentum continued in the Union Budget 2026 27, where healthcare allocations Rs. 1 trillion milestone for the first time, the governments long term commitment to the sector.

These sustained investments are catalysing private sector participation, specialties and technology intensive care, where demand continues to outpace supply. Artemis is closely aligned with this policy led expansion, with its focus on tertiary and quaternary care, brownfield hospitals, super specialty facilities, and investments in digital health infrastructure are designed to complement public capacity while addressing rising demand for advanced private healthcare. Artemis investments in digital health systems and electronic medical records further align with national frameworks such as the Ayushman Bharat Digital Mission, enabling integration architectures.

2. Large Unmet Demand and Infrastructure Gap signific Indiashealthcaresectorcontinuestofacea structural shortfall in core infrastructure, with hospital bed density, doctor to population ratio, and diagnostic global penetration remain benchmarks. This persistent structural shortfall creates a multi decade opportunity for capacity expansion across especially beyond metro cities. year: Beds per 1,000 population 2021-2023)1

Country	Beds / 1,000
Japan	12.6
South Korea	12.8
Germany the across sector.	7.5
France	5.7
China	5.6
United Kingdom	2.4
	y of this
India (total)	1.6

Doctor-to-Population Ratio - Doctors per 10,000 population²

Country	Doctors / 10,000	Year
Population
USA	26.54	2022
Germany	45.93	2023
France	40.09	2023
United Kingdom	33.54	2023
Japan	26.49	2022
China	28.19	2023
India	9.55	2024

This demand supply gap is further accentuated by rising disease burden,particularlyincreasing high acuity life expectancy, and growing healthcare awareness, leading to sustained pressure on existing healthcare systems. The shortfall is particularly pronounced in Tier II and Tier III cities, alongsidecalibrated where access to quality secondary andtertiary care remains limited, creating a multi decade opportunity for capacity expansion and healthcare delivery formalization.

For organized healthcare providers, this structural under penetration translates into strong visibility for long term growth, supported by the need for new hospital infrastructure, expansion of specialized care, and investment in clinical talent and diagnostics. Artemis Health Care is well positioned to capitalize on this opportunity through its focus on high acuity care, scalable hospital formats, and expansion into underserved markets, enabling it to address both capacity gaps and rising demand for quality healthcare services.

3. Rapid Shift Toward Organized Healthcare

Indias healthcare delivery landscape continues to transition from fragmented, standalone setups to organized hospital networks offering standardized protocols, accreditation, transparency, and stronger clinical governance. Organized players are steadily gaining market share through scale, clinical depth, and brandstrength,aspatientsincreasinglyprioritize quality, safety, and continuity of This shift is further supported by rising insurance penetration, corporate tie ups, and greater awareness around outcomes and patient safety, accelerating consolidation with established systems, measurable outcomes, and multi specialty capabilities are structurally better positioned to capture this migration toward organized care. structural shift.Artemisis direct As a JCI and NABH accredited institution, it operates with globally benchmarked clinical governance, robust patient safety frameworks, and ethical practices. Its emphasis on clinical excellence and transparency continuesto strengthen patient trust, referral networks, and internationalpatient flows, providing a sustainable consolidates.

4. Expansion into Tier II and Tier III Cities

Rising income levels, improving insurance coverage, and enhanced physical and digital connectivity driving strong healthcare demand beyond metropolitan markets. The next phase of industry growth is expected to be led by regional hubs, cluster based hospital models, and asset light expansion strategies that enable faster ramp up and improved capital efficiency.

In addition, increasing acceptance of quality private healthcare in non metro markets, coupled with limited availability tertiary care, is creating of advanced eattractiv opportunities for organized providers to establish an early presence and build regional dominance.

Artemis expansion roadmap is closely aligned with this trend, with a focus on calibrated geographic diversification through brownfieldand asset light strategies, enabling capital efficient entry into Tier II and Tier III markets. The upcoming Raipur super specialty hospital exemplifies this approach by extending advanced clinical capabilities under served regional hub. By combining standardized clinical pathways with centralized expertise and shared technology platforms, Artemis aims to replicate quality outcomes while maintainingoperationalefficiency across new markets.

5. Rising InsurancePenetrationand Government

Schemes

Expanding public schemes such as Ayushman Bharat alongside growing private health insurance coverage are improving India. This structural shift is increasing patient footfalls, elective procedure volumes, and early diagnosis, thereby enhancing asset utilizationand revenue visibility for healthcare providers.

Artemis is well positioned to capitalize on this trend through established relationships insurers, TPAs, and government schemes, enabling smoother patient onboarding and settlement. Higher insurance penetration supports increased utilizationof acuityhigh specialities, improving occupancy, case mix, and operating leverage over time.

6. Technology Led Scalability

Technology enables healthcare providers to scale operations efficiently by extending improving clinician productivity, and enhancing patient engagement without proportionate capital investment. Digital platforms, electronic medical records, telemedicine, and AI enabled diagnostics are increasingly central to modern healthcare delivery. Technology remains a central pillar of Artemis growth strategy. The Company continues to embed technology through investments in advanced hospital information systems, integrated clinical workflows, AI enabled diagnostics, robotic surgery platforms, and precision medicine technologies. These initiatives improve clinical outcomes, reduce length of stay, and enhance resource utilization, enabling scalable growth while preserving care quality and patient centricity.

7. Healthcare Tourism and Indias Role in Global Medical

Value Travel (MVT)

Indias emergence as a global medical tourism hub is a key structural growth driver, supported by cost competitiveness, strong clinical outcomes, and . internationally The medical accredited institutions tourism market is expected to witness sustained double digit growth, driven by increasing global acceptance of India as a preferred treatment destination. Medical tourism is a key growth engine for Artemis, which consistently ranks among preferred for international patients. Its globally accredited to an infrastructure, strong clinical success rates, multilingual support teams, and comprehensive international patient services attract patients seeking complex procedures. Artemis leadership in oncology, cardiac sciences, neurosciences, transplants, and robotic surgery positions it favourably within the global MVT ecosystem. As this segment scales, Artemis is well positioned to benefit from higher case complexity, improved realizations,and diversification of its patient mix. and access to healthcare in Collectively, these structural drivers supported by favourable policy, rising affordability, technological advancement, and global recognition provide a strong runway for sustainable healthcare growth in India. With its clinically differentiated model, disciplined withexpansion strategy, and unwavering focus on quality domestic and innovation, Artemis is well positioned to participate meaningfully in this multi decade growth opportunity claims while continuing to deliver superior patient outcomes and stakeholder value.

Implications for Regional Healthcare Leaders

Over the next decade, global healthcare growth will be driven by long term structural factors such as ageing populations,rising chronic disease burden, technological adoption care models. While these forces operate globally, their on ground impact is most pronounced in high density, economically vibrant regions that benefit from strong demand fundamentals, higher purchasing power and clinical talent availability.

For regional healthcare platforms, particularly those anchored in large urban clusters, the global evolution of healthcare presents a clear opportunity: to build scalable, integrated healthcare ecosystems. Success will increasingly depend on the ability to translate global best practices in clinical excellence, digital enablement, and operational efficiency relevant, high quality care delivery models.

In this context, providers that can combine clinical depth, brand trust, and technology integration with disciplined capacity expansion are likely to emerge as regional leaders. Such platforms are well positioned to drive patient outcomes, attract high quality medical talent, and build sustainable in an increasingly organized and outcomes driven healthcare landscape.

Indian Healthcare Growth: A North India Lens

Indias healthcare sector is entering a phase of sustained, multi decadal growth, underpinned by favourable demographics, rising incomes, improving insurance coverage and persistent infrastructure gaps. Within this broader national especially the Delhi NCR region stands out as one of the most attractive by strong demand fundamentals and evolving care delivery ecosystems.

Why North India Is a Structural Growth Market

North India combines several demand side and supply side advantages that make it structurally attractive for organized healthcare providers: v

• Large Urban Catchment:Delhi NCRservesasa healthcare hub for patients Uttar Pradesh, Rajasthan, Punjab, Uttarakhand and beyond, thereby ensuring a steady inflow of patients across acuity levels.

• High Disease Burden with Rising Complexity: Rapid urbanization and lifestyle changes are increasing demand for care across cardiology, oncology, neurosciences, orthopaedics and critical care.

• Strong Affordability and Insurance Penetration : Higher per capita incomes and employer led insurance adoption support advanced and procedures.

• Medical Value Travel: North India continues attract domestic and international high quality care at competitive costs.

• Talent Availability: Presence of leading medical institutions and clinicians enables centers of excellence to scale faster.

These factors position North India as a long term demand engine, rather than a cyclical or short term opportunity.

How Artemis Can Grow Over the Next 10 Years

For a North India focused healthcare platform, growth over the next decade is expected to be multi dimensional, combining capacity expansion, service depth, operating leverage and ecosystem development. In mature, high density markets, the focus is increasingly shifting to deepening presence within core catchments.

Deepening Presence in a Core Catchment Market

The next phase of healthcare growth is increasingly about depth rather than just geographic spread. In high density regions like Delhi NCR, growth opportunities include:

• Optimizingexisting assets and strengthening clinical depth.

• Higher bed utilization through specialty mix . optimization opportunity,NorthIndia

• Expansion of highacuity services (oncology, transplants, neurosciences). markets, supported

• Development of centers of excellence within existing

• Brownfield ramp up and superior return metrics.

A focused regional strategy allows healthcare providers to achieve brand dominance, referral strength and clinical leadership within a defined competiti geography creating a sustainable from Haryana, Western moat.

Specialty Led Growth and Case-Mix Upgradation

Over the next decade, healthcare revenue growth will be increasingly driven by specialty intensity rather than volume alone. Platforms with strong tertiary positioned

• Rising incidence of non communicable diseases.

• Increased demand for complex, technology enabled procedures.

• Longerpatient engagement cycles and follow up care. to patientsseeking For Artemis like platforms, this translates into:

• Continued focus on strengthening quaternary care capabilities

• Higher average revenue per occupied bed (ARPOB).

• Improved operating

• Stronger clinical differentiation in competitive urban markets.

Expanding Beyond the Hospital Walls

Healthcare growth is no longer confined to the physical hospital asset. Over the next 10 years, leading providers are expected to evolve into integrated healthcare ecosystems, encompassing: e care. preventiv • Diagnosticsand

• Outpatient and day care services.

• Digital patient engagement and follow ups.

• Homebased and chronic care management.

For a North India centric platform, this enables catchment improves continuity of care and enhances lifetime patient value. It also reduces dependence on and inpatient volumes while creating recurring revenue streams.

Leveraging Digital and Data Led Operating

Technology adoption will be a decisive growth lever in the coming decade. Digital tools can enable healthcare providers to:

• Improve clinician productivity.

• Enhance patient experience and retention.

• Optimize operational efficiency including management and clinical pathways.

• Digital tools such as electronic medical records, AI driven diagnostics, and integrated care pathways .

In dense urban markets like Delhi NCR, digital enablement becomes a competitive necessity, supporting both growth and margin resilience. tertiary and quaternary

Participating in Industry Consolidation through The Indian healthcare sector remains fragmented, particularly outside the largest nationalchains, creating Over the next decade, this trend is expected to accelerate, driven by:

• Rising capital requirements for technology and compliance.

• Preference for trusted brands among patients and insurers.

• Entry of long term institutional capital into healthcare.

Regionally strong platforms are well placed to participate in this consolidation either through or asset light models enabling scale expansion and preserving balance sheet discipline.

Strategic Takeaway

The coming decade represents a defining phase for Indian healthcare, particularly in high density urban regions like North India. For platforms such as Artemis, long term value creation will be driven by:

• Strengthening leadership in core markets.

• Expanding specialty depth and clinical excellence.

• Leveraging digital capabilities efficiency.

• Maintaining capital discipline while pursuing growth.

• Building enduring patient trust and institutional credibility.

Healthcares inherent resilience, coupled with digital enablement and ecosystem development, positions Artemis to deliver sustainable growth with long term visibility, making them integral to Indias evolving healthcare landscape.

(C) OPPORTUNITIES AND THREATS Opportunities

• Premiumization of Healthcare Demand

Healthcare consumption in India is gradually moving up the value chain, with patients increasingly opting for quality, branded, and outcome driven care. This "premiumization" is Tier I markets, where willingness to pay for advanced procedures, superior infrastructure, and clinician expertise is rising. Artemis, with its positioning is well placed to acuity improved realizations benefit from this shift and a richer case mix.

• Structural Growth in Indian Healthcare Demand astrongcaseforconsolidation Indias healthcare benefitfrom sector continues to long term structural drivers such as demographic expansion, rising life expectancy, increasing incidence of lifestyle and chronic diseases, and improving tertiary andDemand insuranceforpenetration. quaternary care remains strong across high acuity specialties neurosciences, orthopaedics, critical care and organ transplantation.Artemis strong clinical outcomes and established position in complex care enable it to participate meaningfully in this expanding demand landscape.

• Capacity Expansion and Scalable Growth

The planned expansion of bed capacity from approximately 700 beds to nearly 2,000 beds over the medium term provides a platform for multi year scalable growth,withsignificant potential to improve operating leverage and deeper specialty penetration as new capacity stabilizes. A disciplined approach focused on brownfield expansion & Asset Light operating model thatenhancescapitalefficiency, enables faster ramp up, and allows and clinical talent. Over time, this supports sustainable growth while preserving clinical quality, governance standards and return metrics.

Care • CaseMixShift

The rising burden of non communicable diseases is structurally shifting demand toward chronic, multi disciplinary, and high complexity treatments. This not only increases average revenue per patient but also extends the care cycle through follow ups, rehabilitation, and long term management. Artemis strength in specialties and neurosciences positions duration, t engagement model. patien value

• High-Acuity and Technology-Driven Care

Advances in medical technology are accelerating the shift towards more complex surgeries, precision led treatments and minimally invasive procedures, continue to reshape care delivery and patient expectations.

Artemis investments in advanced platforms such as the M6 CyberKnife, robotic assisted surgery and to manage high end diagnostics tions, research complex case profiles, improve clinical outcomes and deliver superior patient experience, supporting a favourable case mix, higher ARPOB trajectory and competitive urban markets where technology and outcomes increasingly drive patient choice. are subject to evolving

• Medical Value Travel and International Patients

India remains a preferred destination for high quality medical value travel, supported by cost competitiveness, clinical expertise and globally accredited facilities. Artemis strong clinical outcomes, globally accredited infrastructure, and established International Patient Services framework, global insurer empanelments and coordinated end to end care delivery position it well to expand its patient portfolio while maintaining diversified streams, ethical pricing and quality standards.

• Research, Education and Academic Integration

The growing emphasis on evidence based medicine and clinical research creates opportunities for institutions and . Artemis DSIR innovation recognized research foundation, participation collaborationssupport clinical differentiation,enhance clinician engagement and facilitate access to emerging therapies and treatment protocols and strengthens its positioning edge care.

• Digital Health and Technology Enablement

Digital transformation across clinical diagnostics, continuesto enhance efficiency, safety and continuity of care. Ongoing investments in hospital information systems, PACS, digital patient journeys and cybersecurity infrastructure strengthen operational performance, improve turnaround times driven clinical and administrative decision making. Over time, this supports scalability without proportional capital investment and drives margin resilience. such as oncology, transplants,

Threats and Risks

• Talent Availability and Workforce Constraints

The healthcare sector continues to face shortages of skilled clinicians, nurses and allied professionals, particularly in specialized and high acuity disciplines. Competition for top medical talent is intensifying as organized players expand capacity, leading to potential cost inflation and retention challenges. Artemis mitigates this risk through structured training and developmentprograms,academic opportunities and a value driven culture focused on clinical excellence, service quality and professional engagement.

• Regulatory and Compliance Environment

Healthcare operations regulatory and compliance requirements across clinical governance, pricing controls, accreditation, data protection, biomedical waste management and labour regulations. Increasing regulatory oversight, including potential price caps and standardization of treatment protocols, may impact flexibility and profitability. Strong governance frameworks, regular internal audits, adherence to JCI and NABH standards and proactive compliance management support effective international risk mitigation and operationalcontinuity. revenue

• Cost Pressures and Margin Sensitivity

Rising costs related to medical consumables, energy, advanced technology and skilled clinicians and other manpower may impact margins in a price sensitive environment with increasing insurer and corporate influenceon pricing. continuous technology upgrades and infrastructure investments may elevate capital intensity. Artemis addresses this through clinical efficiency, specialty mix optimization, disciplined procurement and technology enabled asacentreforcomplexandcutting productivity improvements, supporting margin resilience while maintaining quality of care.

• Cybersecurity and Data Protection

Increasing digitalization of healthcare systems elevates exposure to cybersecurity threats, data privacy risks and system disruptions,which can affect patient trust and operational continuity. Increasing regulatory focus on data privacy further elevates compliance requirements. Artemis ISO 27001certified informationsecurity framework, robust IT governance and continuous monitoring mechanisms enhance data protection, patient confidentiality and resilience.

• Competitive Intensity

The Indian healthcare sector continues to witness capacity additions by large hospital chains, regional players and new institutional entrants backed by capital, intensifying competition may lead to pressure on occupancy ramp up, pricing, and talent acquisition. Artemis differentiates itself through clinical outcomes, high acuity specialization, advanced technology adoption, patient centric service delivery and strong brand credibility, enabling it to compete on quality, brand trust, and outcomes rather than price alone.

• Execution Risk in Expansion

Planned capacity expansion and entry into new geographies involve execution risks related to project timelines, cost overruns, and ramp up of occupancy and clinical services. Artemis calibrated approach focusing on brownfield expansion, cluster strategy, and phased commissioning helpsmitigate these risks while maintaining capital discipline.

• Technology Obsolescence and Capex Intensity

Rapid advancements in medical technology may require continuous upgrades to remain increasing capital expenditure requirements. Failure to adopt relevant technologies in a timely manner could impact clinical positioning. Artemis addresses this through selective, ROI driven investments in globally benchmarked technologies aligned with specialty growth.

(D) OUTLOOK

The Indian healthcare sector is expected to continue its structural growth trajectory, supported by favourable demographics, rising chronic disease burden, increasing health insurance penetration,growing awareness of quality healthcare, and continued demand for advanced tertiary and quaternary care services. The shift towards organized healthcare, higher acuity treatments andoutcome driven regulatory changes, care models is expected to further strengthen demand for well governed, clinically differentiated hospital

Artemis remains focused on strengthening its position as a leading tertiary and quaternary care provider through calibrated capacity expansion, specialty depth enhancement and continued investments in clinical excellence. The planned increase in bed capacity over the medium term, primarily through brownfield expansion, Asset light operating model and specialty led additions, is expected to support sustainable volume growth while unlocking operating leverage as occupancy stabilizes, supporting clinical quality, governance standards, margin expansion and improved return ratios over the medium term.

High acuity and technology intensive specialities such as oncology, cardiac sciences, neurosciences, orthopaedics, organ transplantationand critical care are expected to remain key growth drivers. Artemis continued focus on advanced inkeymarkets.This medical technologies, including robotic surgery, precision treatments and image guided therapies, is expected to support a favourable case mix, improved clinical outcomes and stable ARPOB growth, and improved clinical outcomes, while strengthening its positioning complex care segments where differentiation and pricing power are higher.

The outlook for medical value travel remains

India continuing to attract international competitiveness, clinical expertise and globally accredited infrastructure. Artemis established international patient services framework, supported by global insurer empanelments, multilingual support and coordinated care pathways, is expected to enable steady growth in international patient volumes while maintaining diversified revenue streams, ethical pricing and quality benchmarks. Beyond inpatient care, the gradual evolutiontoward integrated healthcare ecosystems presents an opportunity to expand into outpatient, diagnostics, engagement models. This can improve patient lifetime value, strengthen referral networks, and create more predictable and recurring revenue streams over time. Digital transformation is important role in healthcare delivery, operational and patient engagement. Artemis ongoing investments in hospital information systems, patient engagement, clinical analytics and cybersecurity infrastructure are expected to enhance care coordination, reduce turnaround times and support data driven clinical and administrative decision making. Over time, driven decision making can also data support standardization of outcomes and reduction clinical variability.

The Company remains cognizant of risks relating talent availability, cost inflation, cybersecurity and competitive intensity. Focused .around clinician engagement, training and development,

procurement discipline, technology enabled productivity improvements and robust governance frameworks are expected to support operational resilience. maintaining a balanced payer mix and disciplined capital allocation will be critical to sustaining margins and returns Overall, Artemis is well positioned to capitalize on the evolving healthcare landscape, supported by a strong clinical foundation, differentiated specialty and disciplined growth strategy. While the external environment remains dynamic, the Companys focus on quality, governance, patient centric al amid care and long term value creation and deliver consistent outcomes for patients, clinicians and all stakeholders.

(E) RISK AND CONCERNS

The Indian healthcare sector continues discipline a dynamic risk landscape shaped by regulatory changes, shifting payer increasing competitive intensity. While long term growth fundamentals remain strong, these factors may influence operational performance and profitability. Artemis is proactively strengthening governance, operational agility and strategic planning frameworks to adapt to sectoral changes while sustaining long term growth and resilience. A key emerging riskistherisinginfluenceofinstitutional payers, including insurance companies and government schemes. While improving access and driving volumes, this trend may lead to pricing standardization, on realizations, and longer receivable cycles, impacting working capital management. At the same time, regulatory environment is becoming more structured and stringent, with greater focus on pricing transparency, patient safety, and data protection, potentially compliance requirements. Artemis is aligning its pricing, revenue cycle management and compliance systems with to enhance access, build scale efficiencies term volume led sustainability.

The capital intensive nature of healthcare delivery, coupled with ongoing investments in technology and capacity expansion, requires disciplined capital allocation efficient asset utilization up of new facilities may impact the return metrics. shortages of skilled clinicians and allied professionals, along with rising compensation challenges for service delivery and cost management. Artemis adopts a disciplined capital allocation approach, phased capacity ramp ups and targeted clinician hiring models to optimize returns while strengthening clinical depth and service quality.

Increasing digitalization introduces cybersecurity and data privacy risks, necessitatingcontinuous in IT infrastructure and governance frameworks. Further, intensifying competition from established players and Additionally, new entrants may impact occupancy, pricing, and talent acquisition, particularly in key investing in secure digital infrastructure, differentiated clinical outcomes and patient experience to mitigate cyber risks, compete effectively in urban markets and strengthen itsmedicalvaluetravelproposition portfolio While Indias growing role in medical value travel presents opportunities, sustaining global standards in clinical outcomesandpatientexperienceremains rising internationalpositions competition wellto pursuesustainablegrowth . Overall, navigating these risks will require continued focus on governance, operational efficiency, clinical discipline to ensure sustainable growth and long term value creation. Artemis leverages strong governance, operational efficiency, clinical excellence and financial to evolve, convert sectoral challenges into drivers of sustainable growth and long term value creation. technologicaladvancements,and The availability and retention of skilled clinicians, nurses and allied healthcare professionals remain a key challenge for the healthcare sector, particularly tertiary and quaternary care specialties. attrition talent,increasingwagepressuresandclinician may impact service continuity, capacity utilization and operating costs. Artemis continuesto focus on clinician engagement, training, academic collaboration and a culture of professional development to mitigate workforcerelated risks. pressure Healthcare operations are subject to complex and evolving the regulatory requirements across pricing, clinical governance, accreditation, biomedical waste management, data protection and labour regulations. Changes in government increasing policies, reimbursement frameworks or compliance standards may impact operating flexibility, costs and timelines. Artemis maintains robust compliance systems, regular audits and proactive regulatory monitoring to and improve long ensure operational flexibility, minimize disruption and reinforce trust with stakeholders.

(F) INTERNAL CONTROL SYSTEMS AND THEIR EFFICIENCY

The Company has established adequate internal control and framework. Any delaysinramp commensurate with the size, scale and Additionally, complexity of its operations. These controls are designed to ensure the orderly and efficient conduct of business, safeguarding of assets, accuracy and completeness of accounting records, and compliance with applicable laws, regulations and The internal control framework covers financial reporting, operational processes, information technology systems and compliance functions. The Company has implemented appropriate internal financial controls with reference to financial statements, definedapproval investment including mechanisms, segregation of duties and system driven checks and validations.Increasing focus has also been placed on strengthening IT controls and data security in line with growing digitalization.

An independent internal functionconducts audit risk based audits across key areas of operations and Committ totheAudit financialsand reports its findings Management actions arising from audit observations reviewed periodicallytoensuretimelyimplementationand continuous The Audit Committee of the Board provides oversight of the internal control systems and their operating effectiveness.

Based on the evaluation carried out during the year, the management believes that the Companys internal control systems are adequate and operate effectively.

(G) FINANCIAL PERFORMANCE AND OPERATIONAL PERFORMANCE

Consolidated Financial Performance

(Amount in Lacs)

Particulars	For the year ended March 31, 2026	For the year ended March 31, 2025
Income
Revenue from operations	108,124.24	93,691.67
Other income	2,982.92	3,298.59
Total Income (I)	111,107.16	96,990.26
Expenses
Operative expenses	65,162.07	56,521.05
Purchases of stock in trade
Changes in inventories of Stock in trade		0.54
Employee benefits expense	16,606.68	14,837.26
Finance costs	2,768.72	3,194.48
Depreciation and other amortization expense	4,806.64	4,516.49
Other expenses	7,537.83	7,153.86
Total expenses (II)	96,881.94	86,223.68
Profit before exceptional items & Tax (III) = (I)-(II)	14,225.22	10,766.58
Exceptional item (IV)	307.44
Profit before Tax (V) = (III)-(IV)	13,917.78	10,766.58
Total Tax Expense (VI)	3,546.26	2,548.96
Profit after tax for the year (V)- (VI)	10,371.52	8,217.62

Revenue Performance

Operating revenue for the year stood at Rs. 108,124 Lacs, compared to Rs. 93,692 Lacs in the previous year. Revenue growth was primarily driven by improved ARPOB, higher inpatient volumes and sustained demand for high acuity tertiary care services.

Profitability

EBITDA for the year was Rs. 21,801 Lacs, with an EBITDA margin of 20.2%, compared to Rs. 18,478 Lacs . and 19.7%, respectively, in the previous year. Margin performance benefited from operating leverage, favourable specialty mix and cost optimization initiatives, partly offset by inflationary pressures on manpower and medical consumables.

Profit After Tax (PAT) stood at Rs. 10,372 Lacs, compared to Rs. 8,218 Lacs in the previous year.

Cost Structure

Operating expenses were Rs. 65,162 Lacs, representing 60.3% of operating revenue, while Employee costs amounted to Rs. 16,607 Lacs, representing 15.4% of operating revenue. The Company continued on procurement discipline, productivity improvements and cost rationalizationwithout compromising clinical quality.

Capital Expenditure and Cash Flows

Capital expenditure during the year was Rs. 23,982 Lacs, primarily towards medical equipment, technology upgrades and capacity expansion initiatives. Operating cash flows amounted to Rs. 13,195 Lacs, supporting internal funding requirements and maintaining balance sheet strength.

Overall, financial performance remained closely aligned with operational outcomes, reflecting disciplined execution, strong clinical fundamentals and prudent cost management.

Operational Performance

During the year under review, Artemis continued to deliver stable operational performance supported by sustained demand for tertiary and quaternary care services, a favourable specialty mix and continued focus on clinical quality and efficiency.

The Company operated a bed capacity of approximately 700 beds at Gurugram Hospital during the year. Average Occupancy Rate stood at 63.0%, compared to 64.1% in the previous year, reflecting utilizationacross key steady clinical specialties. Inpatient volumes were 34,428 patients. Case mix acuity remained favourable, supported by higher contributionfrom complex and technology intensive procedures. Average Revenue per Occupied Bed (ARPOB) increased to Rs. 82,435, compared to Rs. 76,447 in the previous year, reflecting higher clinical complexity improved realizations.

Operational clinical protocols, optimal resource deployment and continued investments in medical technology and digital systems. Management remains focused on improving utilization levels, enhancing specialty depth and maintaining quality and patient safety standards.

Comparative Year-on-Year Performance Table

Particulars	2025-26	2024-25
Operating Revenue (Rs. in Lacs)	108,124.24	93,691.67
EBITDA (Rs. in Lacs)	21,800.58	18,477.55
EBITDA Margin (%)	20.2%	19.7%
Profit After Tax (Rs. in Lacs)	10,371.52	8,217.62
Bed Capacity (Nos.)	700	700
Average Occupancy Rate (%)	63.0%	64.1%
Volumes (Nos.)	34,428	31,417
ARPOB (Rs.)	82,435	76,447

(H) SEGMENT WISE PERFORMANCE:

As part of its strategy to develop an integrated and capital efficient healthcare ecosystem, Artemis has expanded its care delivery model beyond its flagship tertiary hospital through a portfolio of focused platforms, including Artemis Lite, Daffodils, and Artemis Cardiac Centers. These centers are located across select geographies to support Artemis broader care continuum. The platforms extend Artemis clinical capabilities services, specialty care, post acute rehabilitation, and long term disease management. Predominantly operating on assetlight and hub and spoke models, these initiatives enhance accessibility, strengthen referral networks, optimizeutilizationof high acuity hospital infrastructure, and enable scalable growth while maintaining Artemis clinical governance, quality standards, and operational discipline. The Revenue mix of the centers is as follows.

(I) MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Human resources continueto be a key strength and strategic enabling for the Companysoperations.Artemis Hospitals places strongemphasisonattracting, developing and retaining skilled medical professionals, nurses and support staff to deliver high standards of clinical care and service excellence.

As on March 31, 2026, the Company had a total workforce of 2,055 employees, including doctors, nurses, allied healthcare professionals and administrative personnel, as compared to 2,077 employees in the previous year. The Companys workforce remained aligned with its operational requirements, supporting specialty expansion and capacity augmentation across its facilities.

The Company continued to focus on capability building through structured training and development initiatives, including continuousmedical education (CME), clinical skill enhancement programs, nursing training, leadership development programs and functional across preventive training across and outpatient levels. These initiatives are aimed at strengthening clinical outcomes, patient safety and service quality. In an environment of increasing competition for talent, the Company also focused on clinician engagement, retention, and building internal talent pipelines. Employee engagement and performance management remained key focus areas during the year, supported by transparent performance appraisal systems, learning and development opportunities, structured career progression and recognition programs aligned individual performance with organizational objectives and values. The Company continues driven andtofoster values based performance culture that promotes accountability, collaboration, continuous learning.

Industrial relationsacross all locations remained stable and cordial during the year. There were no material instances of labour unrest or disruptions, and the Company maintained harmonious relations with its workforce. Artemis continued to comply with all applicable labour laws, statutory regulations and ethical employment practices.

The health, safety and well being of employees remained a priority. The Company continued to implement prevention protocols workplace safety measures, infection and employee wellness initiatives to ensure a safe and supportive work environment.

The management believes that the Companys people centric culture, structured human resource practices and stable industrial relations foundation to support operational performance and long term growth.

(J) KEY FINANCIAL RATIOS

Following are Key Financial Ratios computed on Standalone basis:

Particulars	FY 2025-26	FY 2024-25	Movement (%)
Current Ratio	1.73	2.52	(31.32)
Interest Coverage Ratio	6.26	4.58	36.58
Debt Equity Ratio	0.26	0.31	(14.98)
Debt Service Coverage	1.77	2.44	(27.59)
Inventory Turnover ratio	22.35	24.12	(7.33)
Debtors Turnover Ratio	4.53	4.42	2.54
Creditors Turnover Ratio	7.40	6.66	11.15
Net Capital Turnover Ratio	4.54	5.97	24.04
Operating Profit Margin	20.28%	20.01%	1.33
Net Profit Margin	9.75%	9.14%	6.74
Return on Equity ratio	12.59%	14.43%	(12.72)
Return on Capital Employed	14.55%	13.35%	8.99
Return on Investment	11.63%	10.40%	11.83

Significant changes in Ratios (i.e. 25% or more as compared to the immediately previous financial year)

Particulars	Significant changes
Current Ratio	Decreased on account of deployment of funds for capital project expansion
Interest Coverage provide a strong Ratio	Profit increase resulted in favourable increase in the ratio.
Debt Service Coverage ratio	Reduced due to higher prepayment of Debt from surplus cash to save interest cost

(K) DETAILS OF ANY CHANGE IN RETURN ON NET WORTH AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR ALONG WITH A DETAILED EXPLANATION THEREOF

Particulars	FY 2025-26	FY 2024-25	Explanation for change
Return on Net Worth	12.59%	14.43%	Not

CAUTIONARY STATEMENT:

The above statements are perceived by the Directors based on the current scenario and the data available as on date of the statements in this Management Discussion and Analysis that describe the Companys objectives, projections, estimates, expectations ‘forward looking statements which are within the meaning of applicable laws and regulations. These statements and forecasts involve risks and uncertainty because they relate to events and depend upon circumstances that may occur in the future. There are a variety of factors that may cause real events or trends to vary significantly from those reflected or implied by these forward looking statements and predictions. Important developments that could impact Companys performance include increased material costs, technology developments, significant changes in the political and economic environment, tax laws and labor relations.