Docmode Health Technologies Ltd Management Discussions

Originally incorporated as "Docmode Health Technologies Private Limited" in Mumbai, Maharashtra in 2017, the company was subsequently converted to a Public Limited company in December 2022 and its name was changed to "Docmode Health Technologies Limited." Thereafter, the name of the Company was further changed from "Docmode Health Technologies Limited" to "Doctrack Solutions Limited" pursuant to the approval granted by the Registrar of Companies (ROC) vide approval letter dated 28^th July, 2026. Under the experienced leadership of our founders with over 25 years of collective expertise in healthcare advertising, health IT, healthcare communications, and event management, Doctrack has evolved into a multi-faceted organization serving diverse stakeholders across the global healthcare ecosystem Doctrack is engaged in the business of offering integrated learning solutions through online and offline learning models to healthcare professionals and learners across the world, spanning the education value chain. The Companys offline learning model includes conferences and workshops, while the online courses are developed and presented by the in-house content development team, medical institutions, associations, subject matter experts, and key opinion leaders. Doctracks primary focus is on providing tech-driven online learning solutions that allow healthcare professionals and learners to engage in self-paced, inclusive, and individualized learning experiences. The Companys online learning model comprises notes, recorded videos, live conferences, and workshops. Additionally, Doctrack provides a platform for inter-professional, cross-industrial learning via panel discussions and courses, as well as leverages its performance assessment tools to enhance the clinical acumen of its users. Beyond learning, the Company operates a network-powered surveys, studies and research offering that enables practising and certified healthcare professionals to participate in and contribute to marketing surveys, clinical studies and research; a knowledge marketing services line that supports medico-marketing organisations with scientific promotional literature, medical writing and customised learning initiatives; clinical research support services delivered under the oversight of an Ethics Committee registered with the Central Drugs Standard Control Organisation; and an online store for healthcare professionals offering books, journals, articles, event passes and memberships. The Company is led by its experienced promoters, who have a collective experience of over 25 years in the fields of healthcare advertising, health IT, healthcare communications, and event management. Doctracks promoters founded the Company with the vision of "Transforming Learning & Practice" in the medical fraternity, and they actively oversee the business development and strategic aspects of the Company. The Company is supported by a team of qualified and experienced professionals who have demonstrated their ability to manage and grow the Companys operations, adapt and diversify its offerings, and leverage market opportunities. The Company is registered as ISO 27001:2013 for Information Security Management System and has also received a "ready" status from Skill India. Contributors: Doctrack collaborates with international medical associations, key opinion leaders, and subject matter experts to develop certified courses for its users. We offer the following services to Health Care Professionals:

OUR SERVICES: a. CME and Learning:

The Companys learning platform at https://doctrack.co.in/ is a learning environment and platform-as-a-service (PaaS) with a learning management system and collaborating content (CPD and CME) in partnership with leading medical institutions, subject matter experts, key opinion leaders, and top professional bodies from across the world. Under this program, the Company offers hybrid and blended learning programmes, such as training workshops, fellowships, and observerships, along with publishing books and journals online.

Target Audience: Doctors, physicians, surgeons, and allied healthcare professionals such as dieticians, physiotherapists, nurses, technicians, and paramedics. i. Certification Programs: As of March 31, 2026, the Company has continued to maintain and develop its certificate and non-certificate programme portfolio, having associated with leading medical associations and universities across the globe. ii. National & International Speaker Programs: The Company organises national and international speaker programmes, inviting key opinion leaders or subject matter experts from various specialisations to facilitate learning and networking initiatives. iii. Live Interactive Case-Based Programs with Polling: The Company facilitates discussions on complicated clinical cases, in which participants share their responses through live polling with real-time results. b. Research and Studies: The Companys research offering is a network-powered survey, studies, and research platform to further evidence-based practice in healthcare. It is a route for practising and certified healthcare professionals to participate in or contribute to marketing surveys, clinical studies, and research, including real-world studies and post-marketing surveillance studies supported by electronic data capture.

Target Audience: Doctors, physicians, surgeons, and allied healthcare professionals such as dieticians, physiotherapists, nurses, technicians, and paramedics. c. Knowledge Marketing Services: The Company assists medico-marketing organisations through knowledge marketing services, including the review and presentation of scientific promotional literature, medical writing support and the customisation of learning initiatives, along with CRM solutions.

Target Audience: Medico-Marketing Companies and Medical Associations/Institutions. d. Clinical Research Services:

The Company provides clinical research support services, including study management, post-marketing surveillance, site co-ordination, data management through electronic data capture systems, and regulatory documentation support. The Companys Ethics Committee is registered with the Central Drugs Standard Control Organisation (CDSCO), enabling independent review and oversight of research protocols.

Target Audience: Pharmaceutical companies, biotechnology firms, medical device manufacturers, and academic research institutions. e. Online Store (previously called STORE): The Companys online store for healthcare professionals offers books, journals, articles, event passes, memberships, and other offers on clinical products. The operating model for this business is under review, as described elsewhere in this report.

Target Audience: Doctors, physicians, surgeons, and allied healthcare professionals such as dieticians, physiotherapists, nurses, technicians, and paramedics.

2. ENVIRONMENT AND STATE OF THE INDUSTRY: Global-Economy:

The global healthcare industry continues to demonstrate remarkable resilience and growth momentum in 2025-2026, driven by several key factors including the rising prevalence of chronic diseases, aging demographics, breakthrough advancements in medical technology, and substantial government and private sector investments. According to recent global economic assessments, while overall economic growth patterns remain cautiously optimistic, the healthcare sector continues to outperform traditional economic indicators. The healthcare industry has consistently shown its ability to weather economic uncertainties while maintaining steady growth trajectories. The sustained demand for quality healthcare services, innovative medical devices, and pharmaceutical products continues to drive market expansion, particularly in emerging and developing economies (EMDEs) where expanding middle-class populations, increased disposable incomes, and rapidly improving healthcare infrastructure are creating robust market opportunities. The healthcare sectors resilience can be attributed to fundamental demographic shifts, including the growing prevalence of lifestyle-related diseases, an aging global population, and an increased focus on preventive healthcare and wellness solutions. Additionally, the accelerated adoption of digital health technologies, artificial intelligence in healthcare, telemedicine platforms, and the expansion of healthcare insurance coverage have further strengthened the industrys growth prospects. Key growth drivers for 2025-2026 include: Accelerated digital transformation in healthcare delivery and in professional education; Continued investment in clinical research, real-world evidence generation and drug development; Growing emphasis on evidence-based medicine and on documented clinical and market studies; Rising demand for regulatory compliance, documentation and quality assurance in the industrys engagement with healthcare professionals; Consolidation of empanelled service providers by pharmaceutical companies in response to tighter marketing codes

At the same time, the pharmaceutical industry globally has been operating under increasing pressure on marketing and promotional expenditure, with greater scrutiny of the manner in which manufacturers engage with healthcare professionals. This has driven a shift away from unstructured promotional spending towards documented, auditable and evidence-led engagement, and a corresponding preference for external partners capable of delivering to those standards.

Indian Economic Review:

India has continued to record among the strongest growth rates of the major economies, supported by resilient domestic consumption, sustained public capital expenditure and continued development of both physical and digital infrastructure. The healthcare sector remains a significant contributor to this growth. Indias healthcare sector benefits from several structural advantages, including a large and growing population, increasing healthcare awareness, rising disposable incomes, and a substantial base of skilled healthcare professionals. Government focus on healthcare infrastructure development, digital health initiatives and medical education reform continues to provide a supportive environment for organisations operating in this space. Key factors supporting the growth of Indias healthcare sector in 2025-26 include:

Strong domestic demand for healthcare services, professional education and clinical research;

Government initiatives promoting pharmaceutical research and development;

Expanding healthcare infrastructure across urban and rural areas;

Increased focus on regulatory compliance and quality standards in the engagement between industry and healthcare professionals;

Growing international recognition of Indian clinical research and data management capability;

A favourable investment climate for pharmaceutical and biotechnology companies.

Regulatory Landscape:

The Uniform Code for Pharmaceutical Marketing Practices, 2024 and the professional conduct requirements applicable to registered medical practitioners have continued to reshape the manner in which the pharmaceutical and healthcare industry engages with healthcare professionals. Expenditure that was previously unstructured is now required to be documented, justified and, in defined cases, disclosed. Manufacturers are correspondingly required to satisfy themselves as to the processes of the service providers they engage. These developments increase compliance obligations for manufacturers and correspondingly increase the value of partners whose documentation, disclosure and record-keeping practices are capable of withstanding scrutiny. The practical effect observable in the market is a consolidation of empanelled service providers: clients are working with fewer partners, and selecting those partners on the basis of process rather than price alone.

The Company believes that these regulatory developments are, over the medium term, favourable to its business. The Company has for several years designed and delivered its educational and research programmes to internationally accepted standards of independence and documentation, and this has become a basis on which clients select and retain service providers rather than merely a cost of compliance.

Implications for the Company:

Three consequences follow for the Company. First, the shift of industry expenditure from unstructured promotion towards documented education and evidence generation is directionally favourable to the Companys principal service lines. Second, the consolidation of empanelled providers favours organisations able to offer several services within a single compliance framework, which the Company is able to do. Third, competition within the empanelled group is on price and delivery quality, which places a premium on a low and largely variable cost base of the kind the Company has moved towards during the year under review.

The Companys consolidated Operating Revenue for the year ended March 31, 2026 was Rs. 2,551.59 Lakhs as against Rs. 4,177.29 Lakhs in FY 2024-25, a change of 38.91%. The Other Income was Rs. 139.54 Lakhs for the year ended March 31, 2026 as against Rs. 92.98 Lakhs in FY 2024-25. Operating Expenses were Rs. 2,705.34 Lakhs for FY 2025-26 as against Rs. 4,466.79 Lakhs in FY 2024-25. Profit Before Tax was Rs. (14.21) Lakhs for FY 2025-26 as against Rs. (196.52) Lakhs in FY 2024-25, while Profit After Tax was Rs. (13.49) Lakhs for FY 2025-26 as against Rs. (202.64) Lakhs in FY 2024-25. The overall tax expense was Rs. (0.72) Lakhs for FY 2025-26 as against Rs. 6.12 Lakhs in FY 2024-25. The basic and diluted EPS for the year was Rs. (0.43) as against Rs. (6.45) in FY 2024-25. The Cash and Cash Equivalents amounted to Rs. 17.77 Lakhs as at March 31, 2026, against Rs. 183.50 Lakhs as at March 31, 2025. The movement in revenue for the year reflects the transition of a portion of the Companys business to a reseller and distributor-led distribution model, under which the Companys share of the end-customer value is lower than under a directly billed engagement, together with the exercise of pricing discipline on renewals under which engagements not meeting the Companys revised margin thresholds were not pursued. The corresponding reduction in direct selling and market development costs, and the structured cost rationalisation programme implemented during the year, supported an improvement in operating margins. The Companys operating margin for the first half of the financial year improved over the corresponding period of the previous year. Depreciation for the year increased following the completion and capitalisation of platform development work previously carried as capital work-in-progress. Finance costs remained significant in relation to the scale of the business, and their reduction is an objective for the period ahead.

Changes in Key Financial Ratios:

Explanations in respect of ratios recording a variance in excess of 25% are to be inserted on finalisation of the audited financial statements for the year ended March 31, 2026. The Companys ratios for the year are expected to reflect the change in the distribution model, the reduction in the fixed cost base, the capitalisation of platform development work and the movement in borrowings during the year.

The Companys approach for the coming year is one of consolidation. The objective is to secure and grow the business that the Company is already winning, to extend reach through appointed partners rather than through fixed selling cost, to hold the cost base at its rationalised level, and to convert improved operating margins into cash. The Company does not propose to add new business lines or new products during the coming year.

Strategic Focus Areas:

Reseller and Distributor Network: The Company has concluded reseller and distributor arrangements covering a majority of its current services and products. Appointed partners undertake front-end market development and client engagement in defined territories and market segments, while the Company retains responsibility for content, platforms, delivery and quality. This model expands market coverage without a corresponding increase in fixed selling cost, converts a portion of fixed selling cost into variable partner compensation, and allows the Companys own resources to be concentrated on delivery and margin management. The Company recognises that, where business is transacted through a partner, its share of the end-customer value is lower than under a directly billed engagement, and that reported topline may be affected as a result. The Company will continue to expand partner coverage into territories and segments not presently addressed.

Growth of the Traditional, Directly Billed Business: The Company will continue to place emphasis on its traditional business of directly billed engagements with pharmaceutical and healthcare clients. These engagements are repeat in nature, are supported by documented service arrangements, and provide reasonable revenue visibility. Managements focus is on renewing and expanding mandates from existing clients, on improving realisations, and on exercising pricing discipline rather than pursuing volume for its own sake. Margin Protection: The Company will maintain the cost rationalisation measures implemented during the year, covering manpower deployment, delivery costs, technology and infrastructure spends and discretionary overheads. Engagement-level margin thresholds will continue to be applied, and engagements that do not meet those thresholds will not be pursued. Management intends that the benefit of any recovery in volume should accrue to operating profit rather than be absorbed by a re-expansion of cost. Review of the Online Portal Business: The Company is evaluating its options for the online portal business, which has not generated returns commensurate with the resources deployed on it. The options under consideration include operating the business through reseller arrangements and the monetisation or divestment of certain components of the platform. No binding commitment has been entered into as at the date of this report, and any transaction will be undertaken in accordance with applicable law and with such approvals as may be required. Regulatory Compliance as a Differentiator: The Uniform Code for Pharmaceutical Marketing Practices, 2024 and the professional conduct requirements applicable to registered medical practitioners continue to reshape the manner in which the industry engages with healthcare professionals. The Companys compliance-led approach to programme design, documentation and disclosure is expected to support the retention and expansion of client relationships as clients restructure their engagement models and consolidate their empanelled providers. Balance Sheet and Cash: Management will continue to direct attention to the ageing of trade receivables and the discipline of collections, to the level and cost of borrowings, and to the conversion of operating profit into cash. The reduction of finance costs is an explicit objective for the period ahead.

Key Highlights: a. Existing Client Relationships: Repeat mandates from long-standing pharmaceutical and healthcare clients remain the principal source of revenue and the most cost-efficient source of growth available to the Company. b. Distribution Reach: The reseller and distributor network extends coverage into territories and client segments that were not economically addressable through a direct sales force, and does so at variable rather than fixed cost. c. CME and Learning: The Companys continuing medical education and professional development platform continues to be supported by institutional and association tie-ups and by tech-led delivery, and is increasingly taken to market through appointed partners. d. Research and Studies: The shift in industry spend from traditional promotion towards data-driven and documented engagement continues to support this line, assisting clients in addressing communication gaps, understanding practice behaviour and improving the return on their expenditure. e. Operating Leverage: Following the cost rationalisation undertaken during the year, incremental volumes can be absorbed at a materially lower marginal cost, supporting margin recovery as volumes are restored. f. Regulatory Tailwinds: Increased compliance obligations on manufacturers favour service providers with documented, auditable and independent processes, and the Company has operated to such standards for several years.

Financial Performance Outlook:

The Companys financial objective for the coming period is the restoration of sustainable operating profitability rather than the maximisation of reported revenue. Management accepts that the transition to a reseller and distributor-led distribution model, together with the exercise of pricing discipline on renewals, may moderate reported topline. In exchange, the Company expects a materially lighter and more variable cost base, improved and more predictable operating margins, and better conversion of operating profit into cash. The Companys approach to sustainable performance emphasises:

Growth of the traditional, directly billed business with existing clients;

Extension of market coverage through the reseller and distributor network at variable cost;

Maintenance of the rationalised cost base and of engagement-level margin discipline;

Rationalisation of business lines that do not generate returns commensurate with the resources deployed on them; Improved working capital management, collection discipline and reduction in the cost of borrowing; Strategic allocation of capital to the service lines generating the highest returns.

Market Position:

The Companys combination of an established client base, a large verified network of healthcare professionals, a breadth of service lines delivered within a single compliance framework, and a distribution network operating at variable cost provides a basis on which the business can be grown without a return to the fixed cost structure that constrained profitability in earlier periods. Your Directors consider that the measures implemented during the year under review have established the conditions necessary for that growth to be profitable.

The Company has selected the accounting policies described in the Notes to Accounts, which have been consistently applied, and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as on March 31, 2026, and of the Profit or Loss of the Company for the year. The financial statements have been prepared in accordance with the applicable Accounting Standards notified under section 133 of the Companies Act, 2013 read with the relevant rules issued thereunder and other accounting principles generally accepted in India. The significant accounting policies and practices followed by the Group are disclosed in the Notes to the Consolidated Financial Statements for the year.

Related Party transactions are defined as transactions of sale / purchase of goods / services made by the Company with Promoters, Directors, Key Managerial Personnel, Subsidiaries, Associates, or other parties in which Promoters or Directors are having significant interest / control directly or indirectly, which may have potential conflict of interest with the Company. There were no material transactions during the year under review that were prejudicial to the interests of the Company. All transactions covered under related party transactions were regularly ratified and/or approved by the Board, the guiding principles being arms length, fairness, and transparency. Please refer to Note No. 35 of the standalone financial statements and Note No. 36 of the consolidated financial statements for details of related party transactions during the year.

The Companys Human Resource (HR) department is committed to developing and maintaining a high-performing workforce that is aligned with the Companys strategic goals. With this objective, it has implemented a number of innovative practices and invested in best-in-class processes to create an enabling environment for its employees. During the year under review, the Company consolidated delivery around fewer and better-utilised teams as part of its cost rationalisation programme. The reallocation of front-end market development to appointed resellers and distributors permitted a corresponding redeployment of the Companys own manpower towards delivery, client servicing and quality assurance. Emphasis was accordingly placed on multi-skilling, internal mobility and cross-functional deployment, so that consolidated teams were able to support a broader range of programmes without a loss of delivery quality. Learning and development for employees continued to be delivered largely through the Companys own platforms, at negligible incremental cost. The Company remains committed to providing opportunities for growth and career advancement within the organisation and to enabling its employees to work effectively in an evolving digital environment.

The Company continued to invest in its people, its association relationships and the scientific standing of its work during the year. Initiatives in the areas of reward and recognition, health and wellness, and learning and development were sustained through a demanding operating period, and the Company records its appreciation of the manner in which its colleagues absorbed the organisational changes described in this report. The Companys engagement with medical associations and professional bodies was maintained and extended during the year, including with the Endocrine Society of India, the Heart Failure Association of India and the Research Society for the Study of Diabetes in India. Globally recognised key opinion leaders continued to be engaged across therapeutic areas for the design and delivery of the Companys programmes, and work undertaken with the Companys involvement continued to result in publication in Indian and international peer-reviewed journals. Particulars of awards, recognitions, association tie-ups, publications and key opinion leader engagements for the financial year 2025-26 are to be confirmed and updated in accordance with the records of the Company.

The Company operates in a complex and evolving environment and faces several risks that could affect its business. The Company recognises these potential pitfalls and has put in place necessary safeguards and mitigation measures. Awareness of these risks and their proactive management are central to sustaining performance and protecting stakeholder interests. a. Channel Risks: As the Company provides integrated learning solutions through online and offline learning models to healthcare professionals and learners engaged in the medical fraternity, the Company relies heavily on the engagement of good learners and healthcare professionals. Serving this community demands continuous enhancement of content quality, technology and mentoring capability. Effective channel management, including direct marketing, referrals and digital optimisation, is essential to maintain engagement and retention. b. Reseller and Distributor Risk: With a majority of the Companys current services now taken to market through appointed resellers and distributors, the Companys revenue is to that extent dependent on the performance, conduct and continuity of its partners. Partner underperformance, partner attrition or conduct inconsistent with the Companys compliance standards could affect revenue and reputation. c. Margin and Pricing Risk: Competitive pressure within a consolidating group of empanelled service providers, and the transition to a partner-led distribution model, may affect realisations. A failure to hold the rationalised cost base would compound this effect. d. Obsolescence Risk: Evolution in technologies and disruptive business models can drastically alter the nature and volume of skills in demand. Educational content, technology and methodologies can quickly become outdated, necessitating agile curriculum development and continuous content updates. e. Regulatory Risk: The Companys clients operate in a regulated environment, and changes in the codes and rules governing engagement with healthcare professionals may affect the manner and the volume of business placed with the Company. f. Execution Risk: Despite well-defined and thoughtfully designed processes, there is a possibility of failure during the delivery of services because of external factors, mishaps or human error. Failures in the form of time delays, quality issues or cost overruns may lead to financial loss, penalties, loss of reputation and customer exits. g. Credit and Collection Risk: A significant portion of the Companys revenue is billed on credit terms. Delay or default in collection would affect working capital and increase the Companys reliance on borrowings. h. Financing and Interest Rate Risk: The Companys finance costs remain significant in relation to the scale of its operations. Adverse movements in the cost or availability of finance could constrain operations. i. Information Security and Data Privacy Risk: The Company holds professional and study-related data, and any compromise of that data would carry regulatory, contractual and reputational consequences. The Companys mitigation approaches are varied and effectively address the above risks. Some of the standard risk mitigation approaches employed by the Company include: Continuous research, agile curriculum development and strategic partnerships to mitigate obsolescence risk; A broad network of business partners and other channel partners, thus preventing over-reliance on a single partner or a small group, with partners selected after a detailed assessment of their financial viability, operational capability, adherence to quality and focus on customer service; Written arrangements with resellers and distributors defining territory, scope, performance expectations, quality and compliance obligations and termination rights, supported by periodic performance review; Retention by the Company of ownership of content, platforms and delivery standards, notwithstanding the appointment of partners; Defined engagement-level margin thresholds, with engagements below those thresholds not being pursued;

Investment in technology across the value chain to manage operations efficiently, obtain real-time visibility and deliver a consistent experience for customers; Client-wise credit assessment, monitoring of receivable ageing and structured collection follow-up; Design of processes to the stricter of the applicable regulatory standards, so that changes in codes do not require the reconstruction of delivery models; Maintenance of the Information Security Management System certified to ISO 27001:2013, with defined access controls and audit trails; Promotion of a culture of quality and process orientation to minimise execution issues. The Company has a Risk Management Policy covering the above mitigation approaches to manage all probable and possible risks to the Company.

10. INTERNAL CONTROLS AND THEIR ADEQUACIES:

The Company has a comprehensive internal control framework that is designed to achieve the objectives of operational efficiency and quality, process and regulatory compliance, safety of assets, accuracy of reporting, and management of risk. The key components of the internal control framework include: A clear organisational hierarchy with well-defined roles and responsibilities; Documented and published policies and procedures; A well-defined authority matrix; Regular reviews by management, including monitoring of performance against budgets; Engagement-level margin review and approval prior to acceptance of business; Defined processes for the appointment, review and, where necessary, termination of resellers and distributors; Internal and statutory audits to ensure compliance; A well-defined system of recording and maintaining audit trails; Oversight by the Board of Directors and by the Audit Committee.

The internal control framework is reviewed and updated on a regular basis to ensure that it remains effective in meeting the needs of the business. The Company has put in place adequate internal financial controls commensurate with the scale of its operations.

11. CAUTIONARY STATEMENT:

Statements in this management discussion and analysis describing the Companys views about the industry, objectives, estimates, and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Actual results, performances, or achievements could differ materially from those expressed or implied in such statements. Readers are cautioned not to place undue reliance on the same.