Broach Lifecare Hospital Ltd Management Discussions

This chapter on Managements Discussion and Analysis (MD&A) is to provide the stakeholders with a greater understanding of the Companys business, the Companys business strategy and performance, as well as how it manages risk and capital. The following management discussion and analysis is intended to help the reader to understand the results of operation, financial conditions of Broach Lifecare Hospital Limited:

Industry Structure and Development:

Healthcare has become one of Indias largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well as private players.

Indias healthcare delivery system is categorized into two major components - public and private. The government, i.e., the public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of Primary Healthcare Centers (PHCs) in rural areas. The private sector provides the majority of secondary, tertiary, and quaternary care institutions with a major concentration in metros, tier-I, and tier-II cities.

Industry Structure and Development:

Healthcare continues to be one of Indias largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector continued its brisk growth trajectory during FY 2025-26, supported by strengthening coverage, expanding services, and rising expenditure by both public and private players.

Indias healthcare delivery system continues to be categorized into two major components - public and private. The government, i.e., the public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of Primary Healthcare Centers (PHCs) in rural areas. The private sector continues to provide the majority of secondary, tertiary, and quaternary care institutions with a major concentration in metros, tier-I, and tier-II cities.

According to an EY-Parthenon Healthcare Sector Update, Indias healthcare sector delivered strong growth in FY26, driven by rising patient volumes, improving realizations, and a gradual shift toward higher-acuity treatments, with the hospital segment remaining the primary growth engine. Major hospital operators recorded revenue and EBITDA growth of more than 15% year-on-year during the year, with occupancy levels ranging between 60% and 75%, while higher average revenue per occupied bed (ARPOB) and greater contribution from specialties such as cardiology and oncology supported earnings. This performance reflects a broader structural shift in the sector, with hospital operators increasingly focused on disciplined expansion through greenfield and brownfield projects, strategic partnerships, and selective acquisitions, supported by sustained investor interest

Overview of the Company:

We operate our boutique Hospitals under the brand Maple Hospitals and provide dedicated round-the-clock services to patients with heart ailments consisting of non-invasive cardiology services such as, 2D Echocardiography, Electrocardiography, Tread Mill Test, Holter monitoring, Ambulatory Blood Pressure Measurement, Stress test, Dobutamine Stress Echocardiography. Subsequently, in the year June/July 2023 we ventured into interventional cardiac services such as, coronary angiography and stenting, percutaneous coronary intervention (PCI) and primary PCI for acute myocardial infarction as a division. We also provide Ballon mitral-valvuloplasty, permanent pacemaker implantation, cardiac resynchronization procedures, implantable cardioverter-defibrillator (AICD) implantation and procedures for congenital ailments such as coarctation of aorta, stenting and posterior descending artery closure. We also offer a complete range of diagnostic and therapeutic options such as endovascular revascularization, deep vein thrombosis treatment and peripheral angioplasty.

Our Competitive Strengths:

We believe that we deliver cardiology & clinical excellence through quality healthcare service supported by a combination of experienced medical talent, strong clinical and patient safety protocols and investments in new medical technology. We believe that our hospital provides comprehensive cardiovascular healthcare services in a state-of-the art and ultra-luxury facility at an affordable price. We believe our clinical excellence; competitive compensation packages and ethical practices enable us to attract not only patients but also quality doctors and medical support staff. We believe the experience and depth of our Promoter and management team to be a distinctive competitive advantage in the complex and rapidly evolving healthcare industry in which we operate.

Opportunities:

To increase our service offerings : The Company is actively exploring opportunities to broaden its healthcare service portfolio through advanced treatment modalities and patient-centric solutions. This will not only strengthen the Companys market positioning but also enable it to cater to a wider patient base with comprehensive healthcare solutions.

Rising health insurance penetration : Health insurance coverage in India continues to expand, with a growing share of the rural and urban population now covered under some form of insurance or government health financing scheme, supported by continued growth in health insurance premiums nationally. This expanding coverage base, along with the ongoing reach of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY) scheme, presents an opportunity for the Company to broaden its patient base through empanelment.

Digital health adoption : The Governments continued push under the Ayushman Bharat Digital Mission (ABDM), including growth in digital health records and teleconsultation infrastructure, is improving patient access and care continuity. The Company sees an opportunity to leverage digital health tools to strengthen patient engagement, referrals, and follow-up care.

Medical Tourism : With India emerging as a cost-effective and high-quality medical destination, and the Union Budget 2026-27 announcing the establishment of integrated medical hubs with diagnostic and rehabilitation infrastructure in partnership with the private sector, the Company sees continued opportunity in attracting patients seeking advanced, affordable cardiac care.

Increasing our association and empanelment : The Company is consistently increasing its association with leading insurance providers, corporates, government schemes, and international healthcare facilitators. By expanding empanelments and partnerships, the Company aims to enhance patient accessibility, build referral networks, and create sustainable growth opportunities.

Risks and concerns and threats:

While empanelment with insurance companies, corporates, and government schemes increases patient access, it also exposes the Company to challenges such as delayed claim settlements, lower reimbursement rates, and complex compliance requirements, which can strain cash flows.

Insurance providers and government health schemes often negotiate stringent pricing, leading to reduced margins compared to self-paying patients. This could impact profitability despite higher patient volumes.

The availability and retention of qualified doctors, nurses, and healthcare professionals remain a significant challenge. Constraints in medical education capacity, coupled with rising manpower costs and talent migration, can affect service quality and operational efficiency.

The sector faces increasing competition from established hospital chains, diagnostic centers, and emerging healthcare startups, with the industry witnessing continued capacity build-out through greenfield and brownfield expansion. Price competitiveness and the need for continuous investment in infrastructure and technology may exert pressure on margins.

Public health expenditure in India, while expanding, remains relatively modest as a share of GDP, and stagnant financing alongside the rising burden of non-communicable diseases may increase pressure on private healthcare infrastructure to absorb growing patient volumes.

Changing laws, rules and regulations in India and legal uncertainties, including adverse application of tax laws, in the jurisdictions in which we operate may adversely affect our business and results of operations.

Segment wise or product-wise performance:

The Company currently has only one segment of business i.e., Healthcare Services. The Revenue from Operations for the Financial Year 2025-26 is Rs. 599.47 lakhs against the previous years revenue of Rs. 317.94 lakhs. The total expenses of the Company during the Financial Year 2025-26 are Rs. 582.62 lakhs against the previous years expenses of Rs. 250.91 lakhs. The Company has earned net profit of Rs. 8.68 lakhs against the previous years Profit of Rs. 53.59 Lakhs.

Outlook

The Indian healthcare sector is expected to sustain its growth momentum in the coming years, supported by rising patient volumes, increasing health insurance penetration, continued government focus on digital health infrastructure, and growing demand for specialty and high-acuity care such as cardiology and oncology. With hospital operators across the industry continuing to expand capacity through greenfield and brownfield projects and strategic partnerships, the Company believes it is well-positioned to benefit from this structural growth, given its focused expertise in cardiac care.

The Company remains committed to strengthening its service offerings across non-invasive and interventional cardiology, deepening its empanelment with insurance providers, corporates and government health schemes, and exploring opportunities in medical tourism given Indias growing recognition as a cost-effective, high-quality healthcare destination. The Company will also continue to invest in clinical talent, patient safety protocols and medical technology to maintain its competitive positioning in an increasingly competitive healthcare landscape.

While the Company remains cautiously optimistic about its growth prospects, it will continue to closely monitor evolving regulatory requirements, reimbursement pressures from insurance and government schemes, and talent availability, and will adapt its strategy as needed to sustain long-term, profitable growth.

Internal control systems and their adequacy

Adequate internal control systems commensurate with the nature of the Companys business, size and complexity of its operations are in place and have been operating satisfactorily. Internal control systems comprising of policies and procedures are designed to ensure reliability of financial reporting, timely feedback on achievement of operational and strategic goals, compliance with policies, procedure, applicable laws and regulations. Internal control systems are designed to ensure that all assets and resources are acquired economically, used efficiently and adequately protected.

Financial performance and operational performance

During financial year 2025-26, the Company continued its growth trajectory and registered improved performance in terms of revenue.

SR. No. Ratios	Current Reporting Period	Previous Reporting Period	% of Change	Reason for variance
1 Current ratio	3.09	5.23	40.98%	Mainly on Account of increase in Current Assets.
2 Debt Equity Ratio	NA	NA	NA	N.A.
3 Debt Service coverage ratio	NA	NA	NA	N.A.
4 Return on Equity Ratio	0.01	0.26	96.38%	N.A.
5 Inventory Turnover Ratio	0.45	NA	NA	N.A.
6 Trade Receivables turnover ratio	7.79	17.07	59.25%	Mainly on Account of Increase in Sales.
7 Trade payables turnover ratio	1.52	203.08	99.25%	Mainly on Account of Increase in Purchase results in increase in creditors.
8 Net capital turnover ratio	2.52	2.38	6.07%	Mainly on Account of Increase in Sales.
9 Net profit ratio	0.01	0.27	94.59%	Mainly on Account of Increase in Sales.
10 Return on Capital employed	0.02	0.17	86.89%	Mainly on Account of Increase in Sales.
11 Return on investment	0.64	0.17	283.60%	Mainly on Account of Decrease in Investments

Material developments in Human Resources / Industrial Relations front, including number of people employed:

We believe that our employees are the backbone of our organization. We are committed to provide equal opportunities to all our employees and it emphasizes on welfare of its employees and it strives to engage and retain talented workforce at all levels. There exist peaceful and amicable relations with our employees. As on 31 st March, 2026, there were total 19 (Nineteen) permanent employees on the pay roll of the Company.

Cautionary Statement:

Statements made in this report describing the Companys objectives, projections, estimates, and expectations may be forward-looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied, depending on various factors beyond the Companys control.

By Order of the Board of Directors
Broach Lifecare Hospital Limited

Date: September 5, 2026
Place: Bharuch

Shachi Jaykumar Vyas	Jaykumar Narendra Vyas
Whole-time director	Managing Director
DIN: 09063799	DIN: 08736387