Gujarat Kidney & Super Speciality Ltd Management Discussions

Overview

The objective of this report is to convey the Managements perspective on the Health Care industry. This Report should be read in conjunction with the Companys financial statements, the schedules and notes thereto and other information included elsewhere in the Annual Report and Annual Accounts 2025-26.

The Company is primarily engaged in the Healthcare Sector with infrastructure of hospitals with multi Speciality services in various districts of Gujarat like Vadodara, Bharuch, Ankleshwar, Godhra, Ahmedabad and Anand in India and in Dubai. The Company is introducing modern technology and equipments for the treatment of patients. With an objective of focus on core business and strategic initiatives, the Company has outsourced its pathological operations and pharmacy management.

The medical facilities provided for treatment across all the locations include - Urology, IVF, Gynecology, Orthopedic, Cardiology, Dental, Chiropractic, etc.

Standalone revenue for the year increased from 3516.70 lacs to 4010.02 lacs as compared to previous year and Profit before tax (PBT) from 1209.67 lacs to 1254.70 lacs increased by 3.72% compared to that of the previous year.

Consolidated revenue for the year stands at 8201.34 lacs during the Financial year under review, the Company has acquired stakes in Harmony Medicare Pvt Ltd, Parekh Hospital Pvt Ltd, Patel Hospital (Partnership), and Patel Pharmacy (Partnership) during the period under review. All the entities are operating efficiently.

Indias healthcare sector continues to present significant growth opportunities, driven by increasing healthcare awareness, rising prevalence of lifestyle and chronic diseases, expanding health insurance coverage, growing disposable incomes, and supportive government initiatives aimed at strengthening healthcare infrastructure. The increasing demand for quality tertiary care services in Tier-II and Tier-III cities, coupled with greater adoption of digital healthcare solutions such as telemedicine and electronic health records, is expected to support sustained growth in the hospital industry. The growing emphasis on preventive healthcare, wellness programmes, and specialised medical services also provides opportunities for hospitals to expand their service offerings and enhance patient engagement.

The hospital industry continues to face challenges arising from increasing competition, shortage of qualified doctors, nurses and allied healthcare professionals, rising manpower and operating costs, and inflationary pressures on medical consumables and equipment. The sector is also subject to evolving regulatory requirements, pricing controls on certain medical products and treatments, cybersecurity risks associated with digital health systems, and increasing patient expectations regarding quality of care and service standards. Any adverse changes in government policies, reimbursement mechanisms, or economic conditions may also impact the financial and operational performance of healthcare providers. The Company continues to monitor these risks and adopts appropriate strategies to mitigate their potential impact while maintaining a strong focus on quality patient care and sustainable growth.

The Company is exposed to various business risks, including changes in the regulatory environment, inflationary pressures, shortage and retention of skilled healthcare professionals, cybersecurity and data privacy risks, and disruptions arising from public health emergencies or other unforeseen events. The Company also faces operational risks relating to patient safety, clinical quality and compliance with applicable healthcare standards. To mitigate these risks, the Company has established appropriate internal controls, governance mechanisms, risk management processes and quality assurance systems. The management continues to monitor the evolving business environment and undertakes timely measures to safeguard the interests of patients, employees, shareholders and other stakeholders while ensuring sustainable growth.

The Company remains focused on strengthening its position as a trusted provider of quality healthcare services through continuous improvement in clinical outcomes, patient experience and operational excellence. During FY 2026-27, the Company will continue to optimise capacity utilisation, strengthen its specialty and super-specialty services, enhance operational efficiencies and leverage technology to improve service delivery.

The Company also intends to focus on expanding its referral network, deepening relationships with insurance companies and corporate clients, investing in employee training and clinical capabilities, and maintaining high standards of quality, patient safety and regulatory compliance.

The management remains committed to prudent financial discipline and sustainable growth while pursuing opportunities that align with the Companys long-term strategy and create enduring value for patients, shareholders and other stakeholders.

The change in the key financial ratios as compared to previous year is stated below :

The Company has proper and adequate systems of internal control ensuring efficiency of operations, statutory compliances, reporting and recording of transactions. The system is supported by management and internal audit.

The Companys human resource policy lays stress on motivating and training people for better work culture and environment and continuous improvement in productivity, efficiency and service quality.