Aspira Pathlab & Diagnostics Ltd Management Discussions

GLOBAL ECONOMY

In 2024, the global economy demonstrated continued resilience, recording a year-over-year (YoY) growth of 3.3%. This marks a stable performance in the face of ongoing monetary tightening, trade policy uncertainty, and region- specific challenges. The global output based on market exchange rates was slightly lower, at 2.8%, reflecting the divergence between fast-growing emerging markets and slower expansion in advanced economies.

Advanced economies grew by 1.8%, with notable regional variations. The United States expanded at a robust 2.8%, benefiting from strong consumption and a solid labour market. In contrast, the Euro Area posted a modest 0.9% growth, weighed down by weak manufacturing, especially in Germany (-0.2%). These economies continue to navigate a path of gradual recovery, although elevated uncertainty and restrictive monetary policies weigh on investment. Emerging markets and developing economies (EMDEs) recorded a solid 4.3% growth in 2023-24 led by India (6.5%) and China (5%), continuing to be the primary engine of global expansion

On the inflation front, the global prices rose by 5.7%. This reflects continued disinflation trends in advanced economies due to tighter monetary policy and stabilising commodity prices, while inflation remains elevated in some EMDEs.

Despite ongoing challenges including rising protectionism, inflationary pressures, and geopolitical tensions — global economic growth is projected to average ~3.0% in 2025 and 2026. While regional performance varies, steady recovery in advanced economies and targeted structural reforms in emerging markets and developing economies (EMDEs) offer a measure of optimism for medium-term growth.

INDIAN DIAGNOSTIC INDUSTRY

The Indian diagnostic industry is crucial for the countrys healthcare landscape, enabling early disease detection, accurate diagnosis and informed treatment planning. Despite its essential role, the industry remains largely fragmented, with a significant portion of market share held by standalone diagnostic centres and hospital-based laboratories.

Relatively low barriers to entry, coupled with a less stringent regulatory environment, have facilitated the proliferation of unorganised players in the sector. While this has supported market expansion in terms of reach and accessibility, these unorganised entities often face challenges such as operational inefficiencies, limited scalability and inconsistencies in quality. These limitations impede their ability to offer specialised and high-end diagnostic services.

In contrast, organised diagnostic chains have steadily increased their market share by delivering reliable and standardised services at scale. These players benefit from robust financial and operational capabilities, better access to advanced diagnostic technologies and established quality protocols. As a result, they are well positioned to cater to the growing demand. Consumers are increasingly opting for organised networks due to their wider test offerings, quicker turnaround times and consistent quality standards.

Indias diagnostics sector remains underpenetrated relative to global benchmarks, with the number of diagnostic tests conducted per capita significantly lower than that of other developing economies. This indicates considerable untapped potential. Given the countrys large and expanding population, rising incidence of both communicable and non-communicable diseases and a growing shift in consumer behaviour toward preventive care, the industry is poised for robust expansion

Outlook

The Indian diagnostics industry is projected to grow at a healthy CAGR of 10-12% between FY 2025 and FY 2029, reaching a market size of H1,275-H1,375 billion. This growth is expected to be driven by rising health awareness, increasing disposable incomes and a growing burden of lifestyle-related and chronic diseases. The governments focus on strengthening healthcare infrastructure, combined with rapid urbanisation and a shift towards preventive healthcare, is expected to provide impetus to industry expansion. Increased adoption of evidence-based treatment,

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expansion of organised healthcare delivery and deeper integration of digital technologies, such as artificial intelligence, telemedicine and remote diagnostics are poised to transform the sector. The industry is also expected to benefit from an increasing shift in consumer preferences toward wellness, early detection and preventive care.

RECENT TRENDS IN THE INDIA DIAGNOSTICS INDUSTRY

Integrated offerings

An emerging trend in the diagnostic sector is the strategic integration of pathology and radiology services. This enables providers to deliver comprehensive, end-to-end diagnostic solutions that align with the evolving needs of patients and healthcare professionals. Integration enhances diagnostic accuracy, shortens turnaround times and improves patient convenience.

Digital and technology transformation in the industry

The industry is experiencing accelerated digital adoption across operational and customer-facing functions. Increasing competition has encouraged diagnostic service providers to innovate and differentiate through digital channels. Key initiatives include the expansion of home sample collection services, deployment of point-of-care testing solutions and investment in advanced IT infrastructure to enhance service accessibility and operational efficiency. Leading companies are also leveraging data analytics and digital marketing tools to enable informed decision making, deliver personalised customer experiences and strengthen long-term customer engagement and loyalty

Sustainable practices

Given the healthcare sectors substantial environmental footprint and high water consumption, the diagnostics industry is increasingly adopting sustainable practices. There is a growing emphasis on reducing single-use plastics, reducing water consumption and transitioning to eco-friendly alternatives such as recyclable materials. These initiatives reflect the industrys commitment to environmental responsibility and align with the broader global push toward sustainability in healthcare.

Research and development (R&D) in diagnostic

R&D continues to play a critical role in the diagnostics sectors evolution. As the healthcare model transitions from reactive treatment to preventive care and wellness, diagnostics companies are increasingly investing in advanced technologies such as genome sequencing, point-of-care diagnostics, telemedicine and remote testing. These innovations aim to enhance diagnostic accuracy, improve accessibility in underserved regions and enable earlier detection.

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SWOT ANALYSIS STRENGTHS

Well positioned diagnostic chain

The Company has built a strong presence across eastern India, particularly in Gujarat & Maharashtra. With a focus on quality, reliability and accessibility, the Company is well-positioned to expand further in high demand markets.

Technologically advanced clinical infrastructure and trained personnel

The Company leverages advanced clinical infrastructure and trained personnel to deliver high quality, reliable diagnostic services. Its adoption of state-of-the-art technology enhances accuracy, reduces errors and improves efficiency across locations, reinforcing its position as a leading technology driven diagnostic service provider in its region.

Management team with relevant industry experience.

The Company benefits from a seasoned management team with deep healthcare expertise. Their leadership has driven consistent growth, improved efficiency and positioned the Company to adapt to industry changes, sustaining its competitive edge in the evolving Indian diagnostic market.

Commitment to quality

Over three decades, the Company has built a trusted brand known for consistent, high quality diagnostic services. Its commitment to excellence has earned multiple industry awards, recognising its reliability, diagnostic quality and leadership within the healthcare sector.

WEAKNESS

0 Geographical concentration

The Company remains heavily reliant on Maharashtra for its revenue. This geographic concentration increases vulnerability to regional disruptions, policy changes, or intensified competition, which could significantly affect the Companys overall performance and growth potential.

0 Huge Debtors

The outstanding from B2B clients of more than 3 years is higher since covid, consequently affecting working capital and liquidity of the Company

OPPORTUNITIES

fe Regional Growth

Aspira is focusing on becoming a strong regional player, creating opportunities in new locations and within existing facilities.

fe Technological Integration

With a focus on adopting new technologies like chatbots and patient engagement platforms, there are likely opportunities in IT and customer service roles.

fe B2B segment growth

With the B2B segment currently contributing only 31.82% of revenue, there is substantial room for expansion through increased partnerships with hospitals, corporates and healthcare providers. Strengthening this segment can help stabilise revenue and diversify the customer base.

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THREATS

Intense competition

The diagnostic sector is witnessing heightened competition, with national chains and digital-first health tech startups rapidly expanding into regional markets. This intensifying rivalry could pressure margins, impact market share and challenge customer retention in core geographies.

Technological disruption

Rapid advancements in diagnostic technology, especially in radiology and molecular testing, require continuous investment in equipment upgrades. Failure to keep pace may affect service quality, while frequent capital expenditure could strain financial resources and impact profitability.

Cybersecurity and data privacy

With increasing reliance on cloud based lab information systems, the risk of data breaches and ransomware attacks remains high. Any compromise in patient data security could disrupt operations, invite regulatory scrutiny and significantly damage the Companys credibility and trust.

CHALLENGES IN THE DIAGNOSTICS INDUSTRY

Shortage of skilled professionals

The shortage of trained diagnostic professionals remains a key concern for the industry. There is a notable shortage of qualified fulltime doctors, pathologists and laboratory technicians, which has exacerbated the challenge of maintaining consistent quality. This also underscores the importance of employee training and retention strategies across the sector. The issue is particularly pronounced among standalone diagnostic centres, which often struggle to attract and retain experienced professionals, potentially affecting the quahty and accuracy of diagnostic outcomes.

Steep discounts by online players

The emergence of digital-first diagnostic platforms offering great discounts has introduced significant pricing pressure. While these models have improved consumer access, they have also disrupted market dynamics by driving price erosion and compressing margins for traditional diagnostic players. Established brick-and-mortar centres are particularly vulnerable, as they typically operate with higher fixed costs and a greater emphasis on quality infrastructure.

Limited infrastructure

Limited diagnostic infrastructure, especially in semi-urban and rural regions, continues to constrain the industrys ability to provide accessible and high-quality services. The absence of adequate facilities, modern equipment and streamlined operational processes hamper efforts to expand into underserved areas. These limitations not only restrict diagnostic penetration but also affect the consistency and reliability of services provided.

MATOR GROWTH DRIVERS

Consolidating position in core geography

The Company aims to strengthen its foothold in existing markets by establishing additional diagnostic centres and increasing franchisee partnerships with local entrepreneurs. The Company also plans to enhance laboratory capacity and expand its test menu through the integration of cutting-edge technologies. Additionally, the Company will develop new hubs to create additional clusters, while simultaneously strengthening existing ones with spoke centres. This expansion will enhance operational efficiency, reduce turnaround times and ensure greater consistency in service delivery.

4 - Expanding to adjacent geographies

The Company intends to expand into key regions across Eastern and North-Eastern India, targeting areas exhibiting rising demand for high-quality healthcare services. The Company will replicate its proven hub-and-spoke model in these geographies, which will enable it to achieve economies of scale. The Company will also implement its polyclinic model to attract greater patient footfall, broaden service accessibility and enhance operational effectiveness, thereby positioning itself to capture a larger share of these adjacent markets.

4- Supplementing organic with inorganic growth

The Company seeks to complement its organic growth through selective acquisitions and strategic partnerships with established diagnostic centres across Eastern and North-Eastern India and abroad. The Company will evaluate potential acquisition targets based on key criteria, such as brand recognition, customer base and technical capabilities. These strategic acquisitions will enable the Company to expand its reach, enrich its service portfolio and seamlessly integrate well-established local players into its growing network, accelerating it growth in new markets.

4 - Leveraging technology

The Company plans to integrate advanced digital technologies, including Artificial Intelligence (AI) and Machine Learning (ML) to deliver a seamless, convenient and future-ready healthcare experience. The Company will strengthen customer engagement by expanding digital touchpoints for appointment scheduling, report access and secure online payments. By utilising AI and ML, the Company aims to enhance diagnostic precision, offer personalised healthcare solutions and optimise internal workflows, thereby improving patient satisfaction, operational efficiency and business growth.

4 - Engagement in B2B and corporate partnerships

The Company aims to strengthen its B2B segment by forging strategic corporate partnerships to diversify its revenue streams. The Company will actively pursue institutional clients, leveraging referral networks and lead generation strategies to secure long-term diagnostic service contracts. Through these partnerships, the Company seeks to expand its customer base, increase brand visibility and drive consistent, high-volume business, ultimately boosting revenue and strengthening its position in the healthcare diagnostics sector.

COMPANY OVERVIEW

Aspira Pathlab & Diagnostics Limited (ASDL/The Company) is a leading pathology specialist, with Pan-India presence. ASDL is one of the leading players in the diagnostics space, with footprint in both B2B and B2C marketplace. The Company offers best-in-class pathology and diagnostic services to individual patients, hospitals, other healthcare providers, and businesses. The Company, with a wider presence in Maharashtra India, enjoys a loyal customer base, that reflects on its strength as a brand, providing superior diagnostic testing and services.

Each year, it reaches a new milestone, touching the lives of numerous patients and healthcare professionals by offering actionable health insights. ASDL ideology is founded on technological supremacy, patient centric approach, and dependable diagnostic results. It performs diagnosis and test like Covid-19, urine, stool, X-ray, Ultra sound sonography, Blood test etc with highly developed and advanced equipment. ASDL ideology is founded on technological supremacy, patient centric approach, and dependable diagnostic results.

The Company strategizes to focus on wellness, technology, footprint expansion, while increasing efficiency and productivity. It is also integrating sustainability across the value chain to offer long-term value creation for all its

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stakeholders. The Company envisages these strategies to unlock growth on new frontiers and drive expansion with the same spirit.

NETWORK OF LABS

Aspira is focused on establishing itself as a strong regional player before scaling up its operations. Although we follow an asset light model, other costs are significantly high. Most of these cost is front ended and the payback period is high. We are therefore working on building the right systems and aggressively optimize the cost. We are adopting new technologies that would improve customer experience. Some of these are use of Chatbot, improving website, implementing patient engagement platform, Customer Service, etc.

Also concentrating more on HLM, trying to expand area by targeting newly setup hospitals and laboratory and trying to achieve more technology and advancement.

Financial performance (in INR Lakhs) Particulars	FY 2024-25	FY 2023-24	FY 2022-23
Revenue from operations	2199.90	1320.49	1445.69
EBITDA	391.38	1171.95	191.41
Profit/(Loss) after Tax	207.26	(267.22)	(8.87)

Key Financial Ratio Particulars	FY 2025	FY 2024	Variance	Reason for major variance
Current ratio (in times)	2.26	2.10	7.53%
Debt-Equity ratio (in times)	0.10	0.11	(7.01%)	-
Debt service coverage ratio (in times)	3.12	(0.65)	(583.47%)	Increase on account of profit made during the year as compared with loss made during corresponding year.
Return on equity ratio (in %)	18.54%	(23.34%)	(179.41%)	Increased due to profit made during the year as a result of the same shareholders equity increased.
Inventory turnover ratio	45.90	31.21	47.06%	Increase is on account of increase in sales.
Trade receivables turnover ratio (in times)	9.58	5.77	66.12%	Increase is on account of increase in sales.
Trade payables turnover ratio (in times)	5.84	4.99	17.22%
Net capital turnover ratio (in times)	7.35	5.78	27.17%	Increase is on account of increase in sales.

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Net profit ratio (in %)	9.42	(20.24%)	(146.56%)	Increased on account of increase in profit and Increase in sales during the year as compared with loss made during corresponding year.
Return on capital employed (in %)	18.03	(20.54%)	(187.78%)	Increased on account of increase in profit during the year as compared with loss made during corresponding year
Return on investment (in %)	NA	NA	NA	-

HUMAN RESOURCES MANAGEMENT

Aspira is a new age lab. Human resources are the key to performance. As of March 31, 2025, the company has 141 employees on its payrolls. The focus during the year has been around enhancing the productivity of the workforce and increasing the team. The growth in business was achieved with marginal increase in workforce strength. The Company strongly believes that its competitive advantage draws strength from its highly skilled workforce. Through a range of development activities, the Company helps its employees nurture their professional skills and leadership abilities, thus charting a clear career path. The automation in HR has significantly improved employee experience, which, in turn, has increased productivity. The vision of the Companys senior leadership guides and shapes the future of ASDL. The Company will continue to invest in the talent of its employees to achieve its business goals and fuel expansion.

IT & DIGITAL INFRASTRUCTURE

Digital strategy plays an important role in customer engagement. The Company focuses on enhancing its IT and automation across value chain to create a digital ecosystem for all its stakeholders. The ASDL has launched app named Aspira Health for all its patients, with easy access to download reports, book tests and find nearest diagnostic centers. Further for those patients whose email address is not registered test reports are sent to them on WhatsApp. ASDL also provide home visit facility for blood sample collection. The Company maintains a robust IT and digital infrastructure to stay ahead of competition and deliver an outstanding performance.

CAUTIONARY STATEMENT

Statement in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include global and Indian demand and supply conditions, finished goods prices, input materials availability and prices, cyclical demand and pricing in the Companys principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries within which the Company conducts business and other factors such as litigation and labour negotiations. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent development, information or events or otherwise.

	For and on behalf of the Board of Directors Aspira Pathlab & Diagnostics Limited
	Dr. Pankaj J Shah	Mr. Nikunj Mange
Date: August 12, 2025	Managing Director & CEO	Executive Director
Place: Mumbai	DIN :- 02836324	DIN: 08489442

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Annexure - V

Statement on Conservation of Energy, Technology Absorption & Foreign Exchange Earnings and Outgo A. CONSERVATION OF ENERGY

i. the steps taken or impact on conservation of energy: The operations of your Company are not energyintensive. However, significant measures are being taken to reduce energy consumption by using energy efficient equipment. The Company has taken initiatives to conserve energy and consume less energy like Shutting off the lights when not in use. The Company has designed its facilities keeping in view the objective of minimum energy loss. The Company has taken all steps to conserve Energy in workplaces by educating and training employees to conserve energy.

Energy saving LED lights are installed at various laboratories and collection centers.

ii. the steps taken by the company for utilizing alternate sources of energy: The Company being in the service industry does not have any power generation units and did not produce/generate any renewable or conventional power.

iii. the capital investment on energy conservation equipments: The Capital investment on energy conservation equipments is insignificant.

B. TECHNOLOGY ABSORPTION

i. Efforts made towards technology absorption-

The Company being in service industry has adopted all new technology in terms of new software and hardware and latest machinery with automated processes available in the current Techno-environment to the size, scale and complexity of operations.

ii. Benefits derived from technology absorption-

Technology absorption has helped the Company to provide better and accurate results to the Customers.

iii. in case of imported technology (imported during the last three years reckoned from the beginning of the financial year-

a. the details of technology imported; - Nil

b. the year of import; - N.A

c. whether the technology been fully absorbed; - N.A

d. if not fully absorbed, areas where absorption has not taken place, and the reasons thereof;

iv. the expenditure incurred on Research and Development.: Nil C FOREIGN EXCHANGE EARNINGS AND OUTGO:

The Company has not earned nor spent foreign exchange during the year under review .

	For and on behalf of the Board of Directors Aspira Pathlab & Diagnostics Limited
	Dr. Pankaj J Shah	Mr. Nikunj Mange
Date: August 12, 2025	Managing Director & CEO	Executive Director
Place: Mumbai	DIN :- 02836324	DIN: 08489442