Hemant Surgical Industries Ltd Management Discussions

OVERVIEW OF BUSINESS:

Hemant Surgical Industries Limited (HSIL) is an integrated healthcare solutions company engaged in the manufacturing, assembling, importing, marketing, distribution, and servicing of medical equipment and disposables. The Company?s diversified portfolio serves key healthcare segments, including Renal Care, Cardiovascular Care, Respiratory Care, Critical Care, Radiology and Diagnostic Imaging, Ophthalmology, IVF and Reproductive Medicine, Infection Control, Wound-Care Management, and Surgical Disposables. HSIL?s portfolio comprises indigenously manufactured products as well as advanced medical technologies sourced through collaborations with globally recognised companies. In addition to supplying medical equipment and consumables, the Company provides maintenance services and undertakes the establishment and operation of dialysis centres. The Company began its journey by importing and marketing medical disposables, including JMS MediTape, across India in association with JMS Co. Ltd., Japan. HSIL commenced its manufacturing operations in 1999 and has since expanded its manufacturing and assembly capabilities across multiple facilities:

1. Achhad Manufacturing Facility, Palghar: Manufactures dialysis concentrates in liquid and powder forms, hot and cold sterilants, purified water, sanitisers, and other products used in dialysis care. The facility is being upgraded to meet international manufacturing and quality standards.

2. Atgaon Manufacturing and Assembly Facility, Thane: Undertakes the assembly and processing of medical equipment and healthcare products, including dialysis machines, nebulisers, oxygen concentrators, air mattresses, digital thermometers, pulse oximeters, ECG electrodes, dialysers, and silicone Foley catheters. The proposed domestic manufacturing of digital radiology panels and ultrasound machines will also be developed at this facility.

3. Bhiwandi Assembly Facility: Supports the assembly of intravenous infusion sets and medical equipment such as ECG machines, ultrasound systems, patient monitors, and ventilators.

4. Chhatrapati Sambhajinagar Manufacturing Facility: Established for the domestic manufacturing of JMS MediTape. The necessary machinery has been installed and commissioned, clinical validations by JMS Japan have been successfully completed, and production and commercialisation are progressing on a full scale.

Through continued investments in localisation, manufacturing infrastructure, advanced technology, international collaborations, and quality systems, HSIL is strengthening its position as a comprehensive Indian healthcare solutions provider.

OVERVIEW OF THE INDUSTRY

India?s Medical Devices Industry: 2026-2030 Growth Outlook

India?s medical devices industry is entering a period of accelerated growth. The overall market, estimated at approximately US$15-16 billion in 2025, is projected to reach nearly US$50 billion by 2030, representing an expected compound annual growth rate of approximately 20%-27%. India is currently the fourth-largest medical devices market in Asia and ranks among the world?s top 20 medical devices markets.

Segment	Approximate Current Market Position	2030 Market Expectation	Expected Growth
Medical devices industry overall	US$15-16 billion (2025)	Approximately US$50 billion	Approximately 20%- 27% CAGR
Medical equipment and electronics	US$7.7 billion (2023)	Approximately US$24.2 billion	Approximately 17.8% CAGR
Disposables and consumables	US$4.3 billion (2023)	Approximately US$17.1 billion	Approximately 21.8% CAGR
In-vitro diagnostics and reagents Medical-device exports	US$2.0 billion (2023) Approximately US$4 billion (FY2025)	Approximately US$8.5 billion Approximately US$820 billion	Approximately 23% CAGR Strong growth potential

The industry?s growth is being driven by the expansion of healthcare infrastructure, rising health awareness, greater insurance penetration, increasing demand for early diagnosis, growth in medical tourism, technological advancement, and the rising incidence of chronic and lifestyle-related diseases.

Government initiatives such as the National Medical Devices Policy, the Production-Linked Incentive Scheme, medical-device parks, and the broader Make in India programme are encouraging domestic manufacturing, innovation, product localisation, and export development. India?s existing dependence on imported medical devices also presents a substantial opportunity for domestic manufacturers to develop cost-effective and technologically advanced alternatives.

The projected expansion of medical equipment and electronics, disposables and consumables, in-vitro diagnostics, and exports aligns closely with HSIL?s diversified business portfolio. The Company?s investments in diagnostic imaging, dialysis, surgical disposables, ophthalmology, IVF solutions, manufacturing infrastructure, and product localisation position it well to participate in the next phase of growth within India?s medical devices industry.

Source: Management-provided industry estimates, IBEF Medical Devices Industry Report and contemporary industry research. Market projections are approximate and may vary across research sources.

OPERATING RESULTS OF THE COMPANY

The revenue from operations of your Company for the year ended March 31, 2026, stood at Rs. 23,098.71 lakhs. The profit before tax stood at Rs. 2,363.01 lakhs as against profit of Rs. 1,055.53 lakhs in the previous year. The net profit for the year 2026 stood at Rs. 1,823.34 lakhs against profit of Rs. 813.21 lakhs reported in the previous year.

STRENGTH

We offer a diversified range of products.

Existing well-established reputation and customer relationships

Quality Assurance

Stable financial performance with improved margins

Experienced management team with industry expertise and successful track record

COMPETITION:

We face competition from organized and unorganized players in the healthcare industry which have a presence across multiple regions in India. There are various companies offering products and services similar to us. We believe the principal elements of competition in our industry are price, durability, product quality, timely delivery and reliability and most importantly our pace in keeping up with the changing technology in the industry.

To stay competitive, we regularly update our existing facilities/technology and adopt new technology for our manufacturing facilities. We aim to keep our costs of production low to maintain our competitive advantage and our profit margins. We continuously seek new product registrations, marketing 112 authorizations to increase our product offerings.

PROSPECT & OUTLOOK

The management is of the view that the future prospects of your Company are bright and the performance in the current year is expected to be very well. The committed customers of the Company are expected to place more orders, which ultimately affect the top line of the Company, positively.

RISKS AND CONCERNS

The Company has taken adequate preventive and precautionary measures to overcome all negative factors responsible for low trend to ensure steady growth.

INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY

There are well-established procedures for Internal Controls for operations of the Company. The finance & audit functions are well equipped with professionally experienced qualified personnel & play important roles in implementing the statutory obligations. The Company has constituted Audit Committee for guidance and proper control of affairs of the Company.

HUMAN RESOURCES

Human Resources Development, in all its aspects like training in safety and social values is under constant focus of the management. Relations between the management & the employees at all levels remained healthy & cordial throughout the year. The Management and the employees are dedicated to achieve the corporate objectives and the targets set before the company.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Company?s objectives, expectations, predictions and assumptions may be “FORWARD LOOKING” within the meaning of applicable Laws and Regulations. Actual results may differ materially from those expressed herein, important factors that could influence the Company?s operations include domestic economic Conditions affecting demand, supply, price conditions, and change in Government?s regulations, tax regimes, other statutes and other factors such as industrial relations.

For and on behalf of the Board of Directors of
Hemant Surgical Industries Limited
Sd/-	Sd/-
Hanskumar shamji Shah	Kaushik Hanskumar Shah
Chairman & Managing Director	Whole-time Director
DIN: 00215972	DIN: 01483743
Registered Office:
502, 5th Floor, Ecstasy Business Park Co-Op Society Limited,
J.S.D. Road, Mulund West Mumbai -400080
Place: Mumbai
Dated: August 29, 2026