The global economy in FY 2025-26 continued to navigate a period of extreme volatility, shaped by both global and domestic uncertainties. Tariff-related policy actions by the US administration affected most countries, India included, and weighed on sentiment across several sectors for a large part of FY2026. The terrorist attack in Pahalgam and the subsequent Operation Sindoor marked the first quarter of the year. The financial year ended with heightened geopolitical hostilities as the US and Israel undertook military action, Epic Fury on Iran, which led to a supply shock in oil and gas and a sharp increase in energy prices. Most countries were affected as a result, and India, being largely energy-dependent, was among the most affected. This contributed to an increase in inflation and a moderation in GDP growth.
The IMF projects global economic growth at 3.2% for FY2025-26 and 3.1% for FY2026-27. It projects Indias real GDP growth at 6.6% for FY2025-26 and 6.2% for FY2026-27. This outlook reaffirms Indias position as the worlds fastest-growing major economy, supported by strong private consumption, rural spending, and continued government investment. Despite the several hurdles, India continues to remain the fastest growing economy in the world.
The IMF projects global headline inflation to increase to 4.4% in 2026 and then decline to 3.7% in 2027. These figures reflect an upward revision in the baseline forecast, driven primarily by supply chain disruptions and rising fuel/commodity prices stemming from geopolitical conflicts, particularly in the Middle East.
The Global Economic outlook also largely hinges on the evolution of trade policy globally, growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a build-up of financial stress. Geopolitical tensions could disrupt global supply chains and push commodity prices up. Larger fiscal deficits or increased risk aversion could raise long-term interest rates and tighten global financial conditions.
On the upside, global growth could be elevated if trade negotiations lead to a predictable framework and a decline in tariffs. Policies need to bring confidence, predictability, and sustainability by calming tensions, preserving price and ensuring financial stability, restoring fiscal buffers, and implementing much-needed structural reforms. Also, de-escalation of hostile conditions in West Asia and other countries may further aid growth.
Despite hurdles ranging from high energy prices to a depreciating currency and higher inflation, India is set to maintain its status as the fastest-growing major economy for the next two fiscal years, i.e., 2025-26 and 2026-27. A slew of measures taken by the Government and the RBI is likely to positively impact capital flows and support a stronger currency going forward.
The Reserve Bank of Indias medium-term retail inflation target is 4%, with an upper tolerance limit of 6% and a lower limit of 2%. This 4% target operates within a flexible inflation targeting (FIT) framework. The Government of India, in consultation with the RBI, officially extended this mandate for another five-year period.
While the central target remains 4%, the RBI projects the actual Consumer Price Index (CPI) inflation to average around 5.1% for the ongoing 2026-27 financial year, citing upside risks from global commodity prices and supply-chain disruptions.
In the years ahead, the Indian economy is anticipated to experience positive growth, especially supported by strong investment activities and increased public expenditure by the Government of India and several growth supporting measures undertaken by the Government. The revision in the income tax slabs and rationalisation of GST is expected to augment disposable income and drive consumer spending. A favourable monsoon is likely to further boost domestic growth, although El Nino-related weather patterns remain a key monitorable.
Indias pharmaceutical sector anchors the country as the Pharmacy of the World, supplying approximately 20% of global generic drug demand. With a massive domestic market, the industry sustains long-term growth by transitioning from low-cost, high-volume generic drugs to innovation-driven R&D and Active Pharmaceutical Ingredients (APIs).
The Indian pharmaceutical industry continued to demonstrate robust growth and resilience during FY 2025-26, underpinned by strong domestic demand, expanding healthcare access, government initiatives, and increasing awareness of preventive healthcare. India retained its position as the worlds third-largest by volume and fourteenth-largest by value, with the domestic market playing a critical role in sustaining long-term industry growth.
The Indian domestic pharmaceutical market grew by an estimated 8%-10% in FY2025-26, driven by higher demand for chronic and specialty therapies, greater penetration in Tier II and Tier II cities, and a growing focus on branded generics and wellness products. As healthcare infrastructure continues to expand and per capita income improves, Indias pharmaceutical landscape is evolving rapidly, with increasing emphasis on innovation, compliance, and digital integration.
Indias pharmaceutical industry, valued at around US $58 billion, is projected to reach US $120-130 billion by 2030 and US $400-450 billion by 2047. Growth is driven by rising lifestyle diseases, an aging population, increased focus on holistic health, and the growing consumerization of healthcare.
Indias online B2B marketplaces have the potential to reach US $200 billion by 2030, according to industry estimates.
Several factors are expected to contribute to this growth including increasing Internet penetration, growth of digital infrastructure, favorable regulatory policies, and a conducive cross-border environment. Additionally, instant payments through a Unified Payments Interface (UPI), formalization of businesses through Goods and Services Tax (GST), increased manufacturing activities through Production Linked Incentive (PLI) schemes, and companies adopting de-risk strategies for their supply chains will further contribute to the industrys growth.
As Indias economy is expected to grow from US $3.75 trillion to US $6 trillion over the next decade, a significant portion of this growth is anticipated to come from the digital economy, projected to expand from the current US $402 billion in FY2023, about 11.74% of GDP, to almost 20% of Indias GDP by 2030. While the initial US $100 billion of growth came from consumer digitisation, the next substantial expansion is expected to be driven by business digitisation and online transactions, specifically through B2B online marketplaces.
E-pharmacy in India has rapidly transformed healthcare by making medicines easily accessible online. This growth is driven by the convenience of ordering medicines online, particularly beneficial for the elderly and those in remote areas, and the cost savings offered by various platforms. As of 2025, Indias e-pharmacy market continues to expand rapidly, propelled by growing internet penetration, tech adoption, and evolving healthcare demands. Estimated at around US $4.50 billion in 2025, according to industry estimates, with a CAGR of 44% since FY2019, when the market was valued at approximately US $0.50 billion.
Despite this momentum, the e-pharmacy sector in India continues to grapple with several persistent challenges that could potentially impede its growth. A major concern is the regulatory ambiguity surrounding online pharmacies. This not only affects operational consistency but also discourages new entrants and investments in the sector. Data privacy and cybersecurity also remain critical issues. As e-pharmacies handle sensitive health and personal information, the risk of data breaches or misuse has raised alarms among both consumers and regulators. Ensuring robust data protection mechanisms is essential to building user confidence. Additionally, there exists a trust deficit among a significant portion of the population. Many users are still hesitant to rely on online platforms for medicines due to concerns about the authenticity of drugs, proper storage conditions, and whether prescriptions are being properly validated. Addressing these concerns through transparent practices, verified supply chains, and stronger oversight will be crucial in sustaining the sectors credibility and long-term growth.
The diagnostics industry has surfaced as a standout segment within Indias expanding healthcare ecosystem, underpinned by attractive margins and robust growth opportunities. This relentless growth is being driven by an aging population, a rising incidence of chronic diseases, increasing demand for preventive diagnostics, and supportive government policies such as the PLI scheme.
However, the market remains highly fragmented: standalone diagnostic centres continue to dominate, followed by private hospital-based laboratories, while national chains hold a modest 6% market share, highlighting both scalability challenges and ample headroom for consolidation. Pathology segments account for roughly 58% of the market, with 42% dominated by radiology services, including CT scans, MRI, nuclear imaging, and ultrasounds. This entrenched structure not only underscores the fragmented nature of the industry but also signals strategic opportunities for partnerships, consolidation, and model innovation in an increasingly competitive landscape.
The Digital Healthcare business forms substantial part of its business.
The Company is a Core Investment company (CIC) and carry on business under subsidiary companies. The Material business is operating on digital platforms of healthcare, namely:
a) Sastasundar App - Consumer-focused digital healthcare platform consisting of pharmacy, diagnostics and wellness; b) retailershakti.com - B2B digital platform for pharmaceutical and wellness products.
This business is being carried on by subsidiary, namely, Sastasundar Healthbuddy Limited (SHBL). The Company holds 78.89% shareholding of SHBL and balance 21.11% is being held by Rohto Pharmaceuticals Co., Ltd. of Japan (16.43%) and Envision India Fund, Mauritius (4.68%).
Sastasundar App is a B2C platform for pharmacy, wellness and diagnostics. For B2B operations, there is a digital platform in the name of RetailerShakti.com and RetailerShakti APP for medicine, wellness products and FMCG products. The operations are now PAN India and it leverage Digital Technology to expand data-driven efficient Supply Chain. The RetailerShakti supplies products to retail pharmacies and local stores.
During the year under review, the Company rolled-out of its private-label range under the JITO Health initiative. JITO Health is dedicated to providing high-quality alternative medicines that offer the same effectiveness as branded alternatives, but at a fraction of the cost.
Another vertical of healthcare is Diagnostic business. The Company has separate step-down subsidiary called Genu Path Labs Limited to operate its diagnostic business. The Company is focusing on Eastern India initially for its diagnostic vertical.
The Indian healthcare sector is expected to grow significantly in the upcoming years. Rising income levels, an ageing population, growing health awareness, and a changing attitude towards preventive healthcare are expected to boost healthcare services demand in the future. The low cost of medical services has resulted in a rise in the countrys medical tourism, attracting patients from across the world. Moreover, India has emerged as a hub for R&D activities for international players due to its relatively low cost of clinical research. The Government also aims to develop India as a global healthcare hub.
The gap in access to healthcare can be filled by the digital system of distribution, which is data-driven and efficient. The Company focuses on establishing the most efficient ecosystem both in terms of cost and consumer efficiency. Looking at the potential growth in pharmacy, diagnostic, and wellness, and the positive growth in use of digital medium, the managements outlook is positive.
The Companys stated strategic intent is to build a full-stack, comprehensive healthcare ecosystem spanning consumer pharmacy and diagnostics (B2C), business-to-business pharmaceutical supply chain (B2B), and omni-channel healthcare touchpoints, underpinned by warehousing, automation and artificial-intelligence-led operating efficiencies. Management has articulated scaling consolidated revenue, supported by continued expansion of warehousing capacity, deeper retailer penetration for Retailer Shakti, scale-up of the HealthBuddy network, and the roll-out of the Companys private-label range under the JITO initiative, which management believes carries the potential for higher gross margins over time.
The Board and management believe that the combination of an inventory-light, capital-efficient B2C model, a rapidly compounding B2B distribution platform, and disciplined capital allocation towards automation should support continued revenue growth and a gradual path towards operating profitability, although the timeline to segment-level and consolidated EBITDA breakeven will depend on the pace of scale-up, competitive intensity and the Companys ability to execute planned capacity additions.
The Companys Risk Management Committee and Board periodically review the key risks affecting the business. The principal categories of risk identified include:
? Business and competitive risk: the risk that intensifying competition in the digital health and e-pharmacy space could compress margins or slow customer and retailer acquisition.
? Regulatory risk: changes in laws and regulations governing pharmacies, e-commerce of drugs, data protection and foreign investment could affect the Companys operating model.
? Execution and integration risk: risk associated with timely execution of warehousing capacity expansion, automation rollout, and the proposed corporate restructuring (SHBL merger and financial services demerger).
? Liquidity and capital risk: continuing operating losses in certain segments necessitate continued access to capital on acceptable terms.
? Technology and cybersecurity risk: given the Companys reliance on digital platforms, the Company is exposed to risks around data security, system availability and cyber threats.
? Concentration and counterparty risk: dependence on key suppliers, logistics partners and retail pharmacy relationships.
The Company seeks to mitigate these risks through a combination of internal controls, insurance, diversification of its supplier and retailer base, continued investment in technology and cybersecurity, and ongoing monitoring by the Risk Management Committee and the Board.
The segment wise consolidated financial performance on year-to-year basis is given below:
(Rs. In Lakhs except for EPS)
| Revenue | FY 2025-26 | FY 2024-25 |
| Financial Services | 1,333.64 | 2,284.16 |
| Healthcare Network | 1,28,316.06 | 1,08,811.30 |
| Others | 2,276.89 | - |
| Total Revenue | 1,31,926.59 | 1,11,095.46 |
| Other Income | 5,827.08 | 5,984.05 |
| Total Income | 1,37,753.67 | 1,17,079.51 |
| EBITDA before exceptional item | 615.40 | 381.41 |
| EBIT before exceptional item | (44.89) | (201.47) |
| Share of Profit/(Loss) of associates and joint ventures accounted for using equity method | - | (1,080.40) |
| Profit/(Loss) before exceptional item and Tax | (123.06) | (1,303.59) |
| Exceptional Item | (112.70) | (19,062.91) |
| Profit/(Loss) before Tax | (235.76) | (20,366.50) |
| Profit/(Loss) after Tax | (144.73) | (13,354.30) |
| EPS | 0.37 | (28.66) |
In compliance with the requirement of the SEBI (Listing Obligations & Disclosure Requirements) (Amendment) Regulations, 2018, the key financial ratios of the Company along with explanation for significant changes (i.e., for change of 25% or more as compared to the immediately previous financial year will be termed as significant changes), has been provided hereunder:
| SI No. Particulars | FY 2025-26 | FY 2024-25 |
| 1 Debtor to sales (in days) | - | - |
| 2 Inventory to Turnover Ratio (in Months) | - | - |
| 3 Interest Coverage ratio | - | - |
| 4 Current ratio | - | - |
| 5 Debt Equity ratio* | - | - |
| 6 Operating profit Margin (%) | - | - |
| 7 Net Profit Margin (%) | - | - |
| 8 Return on Net Worth (%) | (0.35%) | (0.27%) |
| 9 EPS- Basic and Diluted | (0.30) | (0.22) |
There is no borrowing in the Company.
Your company has an adequate Internal Audit and Control system across all businesses. The internal control systems provide, among other things, reasonable assurance of recording transactions of operations in all material respects and of providing protection against significant misuse or loss of company assets. Your company believes in the conduct of its affairs in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity, and ethical behaviour. The internal processes have been designed to ensure adequate checks and balances at every stage. Internal audit is conducted to assess the adequacy of our internal controls, procedures, and processes, and the Audit Committee of the Board reviews their reports. Policy and process corrections are undertaken based on inputs from the internal auditors.
Your company was able to grow last year only because of the employees of the company and their hard work. The group employed a total 2,760 employees in the last year. Your company also utilizes independent contractors and temporary personnel to supplement our workforce, if required. The relation of the employees with your company is considered good.
Statements in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various risks and uncertainties, including but not limited to changes in government policies and regulations, tax laws, economic conditions affecting demand and supply, competitive pressures, and other factors over which the Company does not have direct control. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statement on the basis of any subsequent developments, information or events.
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