Chennai Meenakshi Multispeciality Hospital Ltd Management Discussions

1. INDUSTRY STRUCTURE AND DEVELOPMENTS

The Healthcare sector in India comprises Hospitals, Pharmaceutical Companies & Standalone Pharmacies, Diagnostic Services, Medical Equipment and Supplies, Medical Insurance, Telemedicine Companies, Medical Tourism, and Retail Healthcare.

The Indian healthcare industry increasingly places patients at the center of clinical delivery through personalized treatment protocols, enhanced doctor-patient communication, and integrated technology adoption. Following the structural recovery post-pandemic, the sector has demonstrated resilient growth backed by increased public and private investments across healthcare infrastructure.

The industry continues on a sustainable growth trajectory driven by:

• Higher life expectancy and aging demographics.

• Increasing health consciousness and lifestyle-related preventive health awareness.

• Expanding middle class with rising disposable incomes.

• Increased penetration of health insurance and third-party administration (TPA) coverage.

Indias broader macroeconomic resilience, with GDP growth expanding at an estimated 7.2% for FY 2025-26, continues to provide a favorable backdrop for sector expansion, with the domestic healthcare delivery sector reflecting an estimated growth rate of ~12.59% in FY 2025-26.

2. GOVERNMENT INITIATIVES

The Government of India continues to implement substantial policy reforms and budgetary allocations to bridge the urban-rural healthcare divide:

• Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PM-ABHIM): Focused on augmenting primary, secondary, and tertiary care infrastructure with an outlay of Rs. 64,180 Crore through FY 2025-26.

• Ayushman Bharat (AB-PMJAY): Expanding institutional health insurance coverage and driving inpatient volumes across empanelled tertiary hospitals.

• Ayushman Arogya Mandirs (Health & Wellness Centres): Expanding the operational network of over 1.6 lakh comprehensive primary healthcare centers nationwide.

• National Digital Health Mission (Ayushman Bharat Digital Mission - ABDM): Accelerating digital registries, electronic health records (EHR), and seamless healthcare data interoperability.

3. SIGNIFICANT INDUSTRY HIGHLIGHTS

• NCD Burden: The steady rise in Non-Communicable Diseases (NCDs) such as cardiovascular conditions, oncology, diabetes, and chronic respiratory ailments contributes to increased multi-speciality tertiary care demand.

• Health Insurance Expansion: Higher retail and group health insurance penetration has increased patient affordability for advanced surgical and elective treatments.

• Medical Value Travel (MVT): Indias cost advantage and internationally accredited clinical quality continue to attract global medical tourists.

4. STRENGTHS, WEAKNESSES, OPPORTUNITIES, AND THREATS (SWOT ANALYSIS)

• Strengths:

o Multispeciality Delivery: Comprehensive single-point tertiary care across multiple super-specialties.

o Strategic Urban Location: Situated in the heart of the city, ensuring high visibility, convenience, and emergency accessibility.

o Clinical Talent & Modern Infrastructure: Experienced visiting and full-time consultants supported by advanced diagnostic and operating infrastructure.

• Weaknesses:

o Capacity Constraints: Need for continuous capital expenditure to expand bed strength and modernize specialized medical technologies.

o Operating Margins: Elevated fixed operating costs and clinical talent retention costs impacting bottom-line profitability.

• Opportunities:

o Day-Care & Specialized Procedures: Expansion into high-margin minimal- access surgical procedures and outpatient specialized clinics.

o Digital & Telemedicine Integration: Leveraging digital consultation and remote monitoring channels for expanded patient outreach.

o Corporate & TPA Empanelment: Deepening institutional tie-ups to improve bed occupancy rates.

• Threats & Risks:

o Intense Local Competition: Increasing capacity additions by corporate hospital chains in the immediate catchment area.

o Regulatory & Price Controls: Regulatory caps on procedural costs, consumables, and implants.

o Talent Attrition: Competition for skilled nursing staff, paramedics, and super-specialist doctors.

5. SEGMENT-WISE AND FINANCIAL PERFORMANCE

The Company operates in a single reportable operating segment, viz., Healthcare Services. There was no change in the nature of business during the financial year under review.

Particulars	Year Ended 31st March, 2026	Year Ended 31st March, 2025
Revenue from Operations	3,703.90	3,481.85
Other Income	111.76	85.36
Total Income	3,815.66	3,567.21
Profit / (Loss) before Interest, Depreciation & Tax (EBITDA)	84.21	64.89
Finance Costs (Interest)	89.81	91.33
Depreciation & Amortization Expense	109.08	116.37
Profit / (Loss) Before Tax (PBT)	(114.68)	(142.81)
Exceptional Items	?	?
Tax Expense:
(a) Current Tax	0.00	0.00
(b) Deferred Tax (Charge / Credit)	(2.96)	(5.44)
Profit / (Loss) for the Year (PAT)	(111.72)	(137.37)
Other Comprehensive Income (OCI):
Items not reclassified to Profit or Loss	(9.48)	(24.87)
Tax relating to items not reclassified	2.39	6.26
Total Comprehensive Income / (Loss) for the Year	(118.81)	(155.99)
Basic & Diluted Earnings Per Share (Rs. )	050)	(1.84)

Review of Operations

• Total Revenue: Total income grew by 6.96% to Rs. 3,815.66 Lakhs in FY 2025-26 from Rs. 3,567.21 Lakhs in FY 2024-25, driven by higher inpatient admissions and improved diagnostic volumes.

• Operating Performance: EBITDA increased by 29.77% to Rs. 84.21 Lakhs compared to Rs. 64.89 Lakhs in the previous year, reflecting optimized operating efficiencies.

• Bottom-Line: Net loss narrowed to Rs. (111.72) Lakhs in FY 2025-26 from Rs. (137.37) Lakhs in FY 2024-25, on the back of revenue growth, reduction in depreciation, and rationalized finance charges.

6. DETAILS OF SIGNIFICANT CHANGES IN KEY FINANCIAL RATIOS

Pursuant to Schedule V, Part B of the SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015

7. RISK MANAGEMENT AND MITIGATION STRATEGY

The Company maintains an enterprise-wide Risk Management Framework overseen by the Board. Key risks and mitigation plans are detailed below:

Risk Category	Inherent Risk & Business Impact	Mitigation Strategy
Cybersecurity & Data Privacy	Risk of unauthorized access to sensitive electronic health records (EHR) and system outages.	Implementation of multi-layered firewalls, encrypted patient databases, periodic vulnerability assessments, and automated data backups.
Hospital-Acquired Infections (HAI) & Clinical Safety	Risk to patient safety and institutional clinical reputation.	Strict adherence to NABH infection- control protocols, structured biomedical waste disposal, continuous clinical staff training, and antimicrobial stewardship programs.
Competitive & Pricing Pressure	Nearby multi-speciality additions affecting patient inflow and procedural margins.	Strategic clinician engagement, transparent bundled pricing for common elective surgeries, and service delivery differentiation.
Regulatory & Statutory Compliance	Requisite healthcare licenses, bio-medical regulations, and environmental compliances.	Dedicated legal and secretarial compliance calendar, periodic internal audits, and proactive monitoring of statutory changes.
Foreign Exchange / Currency Risk	Fluctuations in currency rates.	Negligible / Not Applicable as the Companys revenues and material procurement are domestic- denominated.

8. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has instituted adequate internal financial control systems commensurate with the size and complexity of its healthcare operations. Key features include:

• Documented standard operating procedures (SOPs) across patient billing, pharmacy inventory management, procurement, and clinical administration.

• Periodic internal audits to evaluate operational efficiency, verify asset safeguards, and identify procedural deviations.

• Regular review of internal audit reports and statutory compliance by the Audit Committee of the Board.

9. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

Human capital is the cornerstone of quality clinical delivery. The Company prioritizes continuous nursing upskilling, paramedic training, and physician engagement to ensure patient care standards.

• Total Permanent Employee Headcount: 223 as on 31st March, 2026 (against 236 as on 31st March, 2025).

• Industrial Relations: Employee relations remained harmonious and cordial throughout the year, with zero work disruptions or labor disputes.

10. FUTURE OUTLOOK

The Company remains committed to improving operational efficiency, expanding clinical outreach, and scaling capacity utilization. Management continues to evaluate avenues for clinical specialization, modernization of diagnostic capabilities, and targeted marketing initiatives to drive bed occupancy and achieve sustainable turnaround in the coming financial year.

The increasing focus on digital health solutions, telemedicine and other technological advancements in the healthcare industry has opened new avenues for growth and innovation. Your Company is taking measures to mitigate the risks impacting its operations as discussed above and implementing right strategy to scale its performance.

DETAILS OF IP AND OP FOR 2024-25 AND 2025-26

Year	Inpatients	Outpatients	Total
2024-25	2551	29241	31792
2025-26	2852	29774	32626

11. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates, and expectations may constitute "forward- looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to external economic factors, regulatory changes, healthcare industry dynamics, and local operating

conditions. The Company undertakes no obligation to publicly update or revise any forward-looking statements.

For and on behalf of the Board of Directors of
Chennai Meenakshi Multispeciality Hospital Limited
R. Gomathi	Jayanthi Radhakrishnan
Chairman and Managing	Managing Director
Director	(DIN:09025308)
(DIN: 02900460)
Place: Chennai
Date: 1st September 2026