Galaxy Medicare Ltd Management Discussions

Galaxy Medicare Limited
For the Financial Year 2025-26

1. Economic and Industry Overview

The Financial Year 2025-26 witnessed steady growth in Indias healthcare and medical devices sector,
supported by increasing healthcare expenditure, expansion of hospital infrastructure, growing
awareness of preventive healthcare, and government initiatives promoting domestic manufacturing
underthe"Make in India" programme.

The Indian medical consumables market continued to experience rising demand from hospitals,
nursing homes, diagnostic centers, government healthcare institutions, and export markets. Demand
for wound care products, surgical dressings, POP bandages, medical tapes, and disposable medical
products remained stable throughout the year.

The healthcare sector is increasingly focusing on quality, affordability, infection control, and patient
safety. These trends create long-term opportunities for companies engaged in manufacturing essential
medical consumables such as Galaxy Medicare Limited.

2. Company Overview

Galaxy Medicare Limited is engaged in the manufacturing, trading, and export of medical devices
and healthcare consumables. The Companys product portfolio includes:

- POP Bandages

- Surgical Dressings

- Medical Tapes

- Wound Care Products

- Healthcare Consumables

- Institutional Medical Supplies

The Company serves multiple customer segments through:

- Own branded products

- OEM manufacturing

- Government procurement agencies

- Hospitals and healthcare institutions

- Export customers

- Distribution and trading networks

This diversified business model helps reduce dependence on any single market segment while
ensuring consistent demand generation.

3. Financial Performance Review
Revenue Performance

During FY 2025-26, the Company reported revenue from operations of approximately Rs. 40.00 Crore
compared with Rs. 39.20 Crore in FY 2024 - 25, reflecting stable growth despite competitive market
conditions.

The Company Focused on:

- Strengthening Customer Relationships.

- Expanding Distribution Reach.

- Improving Product Availability.

- Maintaining Competitive Pricing.

- Enhancing Operational Efficiency

The Healthcare Consumables segment remained the primary contributor to overall revenue.
Profitability Performance

Profit After Tax Increased to Rs. 3.42 Crore from Rs. 3.37 Crore in the Previous Year. The Company
maintained Profitability despite:

- Raw Material Price Fluctuations

- Competitive Pricing Pressure

- Increased Compliance Requirements

- Logistics and Supply Chain Challenges

Managements focus on Cost Control and efficient resource utilization supported profitability during the
Year.

Dividend Recommendation

The Board of Directors has recommended a Final Dividend of Rs. 0.35 Per Equity Share for FY 2025-26,
subject to Shareholders Approval at the Annual General Meeting.

The Recommendation reflects Managements confidence in the Companys Financial Stability while
balancing Future Growth Requirements and Shareholder Returns.

4. Operational Performance.

The Company continued to improve operational efficiencies throughout theyear through:
Manufacturing Excellence

- Better Production Planning.

- Improved Capacity Utilization.

- Reduction in Process Wastage.

- Focus on Product Quality.

Supply Chain Management.

- Timely Procurement of Raw Materials

- Strong Vendor Relationships.

- Inventory Optimization.

- Improved Logistics Coordination.

Customer Service.

- Faster Order Execution

- Consistent Product Quality

- Improved after Sales Support

- Enhanced Customer Retention

The Company remains committed to maintaining high manufacturing standards and regulatory
compliance across all operations.

5. Strengths of the Company.

Galaxy Medicare possesses several strategic strengths that support long term growth.

Established Product Portfolio.

The Company has built a diversified healthcare consumables portfolio catering to multiple healthcare
applications.

Strong Market Presence.

The Company has developed relationships with:

- Hospitals

- Government Agencies

- Medical Distributors

- Export Customers

- OEM Clients

Experienced Management Team.

The Leadership team brings extensive experience in Healthcare product manufacturing, marketing
and business development.

Financial Discipline.

The Company continues to maintain prudent financial management practices, helping sustain
profitability and liquidity.

Quality Focus.

Consistent emphasis on quality assurance helps maintain customer confidence and repeat business.

6. Opportunities.

Management believes significant growth Opportunities exist in the Healthcare Sector.

Expansion of Healthcare Infrastructure.

Increasing investments in Hospitals and Healthcare facilities across India will drive demand for
medical consumables.

Government Healthcare Programs

Government Healthcare initiatives continue to improve access to healthcare services, creating
additional market opportunities.

Export Growth

Emerging Markets in:

- Africa

- Middle East

- South Asia

- South East Asia

offer potential opportunities for expanding exports.

Product Diversification

The Company is evaluating opportunities to introduce value-added healthcare products and expand
its medical consumables portfolio.

OEM Manufacturing Growth

Increasing outsourcing by healthcare brands creates opportunities for OEM manufacturing
partnerships.

7. Risks and Concerns

While the business outlook remains positive, management continues to monitor various risks.

Raw Material Price Volatility

Fluctuations in Prices of:

- Cotton Products

- Chemicals

- Packaging Materials

- Medical Grade Inputs

may affect margins.

Competition

The Healthcare consumables Industry remains highly competitive with both Domestic and
International players.

Regulatory Changes

Changes in Healthcare regulations, quality standards and compliance requirements may impact
operations.

Foreign Exchange Risk

Export Revenues may be affected by currency fluctuations.

Supply Chain Disruptions

Global geopolitical developments and logistics disruptions can impact procurement and delivery
schedules.

Management continuously reviews these risks and implements mitigation measures wherever
necessary.

8. Internal Control Systems and Adequacy

The Company has established adequate internal control systems designed to ensure:

- Protection of Assets.

- Accuracyof Financial Reporting.

- Compliance with Laws and Regulations.

- Efficient Utilization of Resources.

- Prevention and Detection of Fraud.

The Internal Control Framework includes:

Financial Controls.

- Budgetary Controls.

- Authorization Procedures.

- Periodic Financial Reviews.

Operational Controls.

- Inventory Management Systems.

- Production Monitoring.

- Procurement Controls.

Audit Mechanisms.

- Internal Audits.

- Statutory Audits.

- Management Reviews.

- Board Oversight.

The Statutory Auditors have issued an Unmodified Opinion on the Companys Financial Statements for
FY 2025-26.

9. Human Resources.

Employees remain one of the Companys most valuable assets.

The Com pa n/s H R st rategy focuses on:

Talent Development.

- Employee Training.

- Technical Skill Enhancement.

- Leadership Development.

Employee Welfare

- Safe Working Environment.

- Health and Safety Measures.

- Employee Engagement Initiatives.

Industrial Relations

The Company maintained cordial and harmonious industrial relations throughout the year.
Management appreciates the dedication, commitment and contribution of all employees toward the
companys performance.

10. Corporate Governance

Galaxy Medicare remains committed to maintaining high standards of Corporate Governance
through:

- Transparency

- Accountability

- Ethical Business Practices

- Regulatory Compliance

- Stakeholder Engagement

The Board continues to provide strategic guidance while ensuring compliance with applicable laws
and governance standards.

11. Future Outlook (FY 2026 - 27)

Looking ahead, Management remains optimistic about the companys growth prospects.

Key Strategic Priorities Include:

Revenue Growth

- Expansion of Domestic Market Presence.

- Development of New Customer Relationships.

- Strengthening Institutional Business.

Export Expansion

- Entering New International Markets.

- Increasing Export Contribution.

Product Innovation

- New Product Development.

- Enhancement of Existing Product Portfolio.

Cost Optimization.

- Improving Manufacturing Efficiency.

- SupplyChain Optimization.

- Better Working Capital Management.

Shareholder Value Creation.

- Sustainable Profitability.

- Strong Governance.

- Long Term Growth Strategy.

Healthcare remains one of Indias fastest-growing sectors and Galaxy Medicare is well-positioned to
benefit from increasing demand for quality medical consumables and healthcare products.