Invicta Diagnostic Ltd Management Discussions

Pursuant to Regulation 34(2)(e) read with Part B of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and Analysis of Invicta Diagnostic Limited (“the Company”) for the financial year ended March 31, 2026 is set out below.

(a) Industry Structure and Developments

The Company operates in the diagnostic healthcare services industry, primarily providing radiology, pathology and tele- radiology diagnostic services. The Companys service portfolio includes advanced radiology and imaging services such as MRI, CT, PET-CT, X-Ray and sonography, together with pathology and clinical laboratory services.

The Indian diagnostic industry continues to remain highly fragmented, comprising standalone diagnostic laboratories, hospital-based laboratories and organised regional and national diagnostic chains. The industry has increasingly witnessed a shift towards organised diagnostic chains, driven by increasing healthcare awareness, demand for quality and standardised diagnostic services and availability of complex diagnostic tests.

The diagnostic industry is supported by several structural growth drivers, including increasing healthcare awareness, ageing population, rising incidence of lifestyle and non-communicable diseases, increasing preventive healthcare, greater penetration of health insurance and increasing demand for early and accurate diagnosis.

The diagnostic sector in Maharashtra is also expected to witness continued growth. Industry information available to the Company indicates that the Maharashtra diagnostic sector has been growing at a healthy rate and that the diagnostic laboratory market in Maharashtra is expected to continue expanding in the coming years.

The radiology segment continues to provide attractive growth opportunities due to increasing demand for advanced imaging services. However, the segment is relatively capital intensive due to the significant investment required in MRI, CT, PET-CT and other specialised equipment.

The Company follows an integrated hub-and-spoke model, under which larger hub centres provide advanced diagnostic services while spoke/collection centres facilitate access and sample collection. This model enables better utilisation of infrastructure and provides opportunities for operational scalability.

During FY 2025-26, the Company continued to strengthen its operations and financial position and remained focused on expanding its diagnostic services and infrastructure.

(b) Opportunities and Threats Opportunities

The Company sees significant opportunities arising from the following factors:

1. Growing demand for diagnostic services

Increasing awareness regarding preventive healthcare and early diagnosis is expected to support demand for diagnostic services.

2. Growth in advanced radiology

Increasing demand for MRI, CT, PET-CT and other advanced imaging services provides an opportunity for the Company to improve utilisation of its existing infrastructure and establish additional advanced diagnostic centres.

3. Expansion of diagnostic network

The Company can expand its geographical presence through establishment of new centres and strengthening of its hub- and-spoke network.

4. Increasing preventive healthcare

The growing focus on preventive healthcare and routine health check-ups provides opportunities for health packages and wellness-related diagnostic services.

5. Technology-enabled diagnostics

Digital reporting, tele-radiology, laboratory information systems, home sample collection and other technology-enabled services can improve patient convenience and operational efficiency.

6. Economies of scale

Expansion of the network can provide economies of scale in procurement, utilisation of medical equipment, technology and other operating resources.

Threats

The Companys principal threats include:

• intense competition from organised diagnostic chains and standalone diagnostic centres;

• pricing pressure;

• rapid technological changes in medical equipment;

• high capital expenditure requirements;

• shortage and retention of qualified radiologists, pathologists, technicians and other skilled personnel;

• regulatory and statutory compliance requirements;

• risks relating to diagnostic quality and patient safety;

• equipment breakdown and technological obsolescence;

• dependence on medical equipment and consumable suppliers;

• IT and cybersecurity risks;

• fluctuations in patient volumes;

• delay in ramp-up of newly established centres;

• increased operating costs;

• concentration of operations in the Maharashtra/MMR region; and

• general economic and healthcare sector conditions.

The Companys hub-and-spoke model and integrated diagnostic offerings are intended to provide operational efficiencies and support the Companys competitive position.

(c) Segment-wise or Product-wise Performance

The Company is primarily engaged in providing diagnostic healthcare services and operates predominantly in one business segment. The principal services provided by the Company comprise:

Particulars	Nature of services
Radiology	MRI, CT, PET-CT, X-Ray, sonography and other imaging services
Pathology	Clinical laboratory and pathological diagnostic investigations
Integrated Diagnostics	Combination of radiology and pathology services
Technology-enabled services	Digital reporting and teleradiology-related services

The Company operates an integrated diagnostic model through its own centres and subsidiaries. The operational model consists of flagship, hub and spoke centres supported by laboratory infrastructure.

The Companys business has historically been predominantly driven by radiology services. The Company also continues to develop its pathology business to strengthen its integrated diagnostic offering.

During FY 2025-26, consolidated Revenue from Operations increased to Rs. 3,235.36 Lakhs from Rs. 3,009.52 Lakhs, registering growth of approximately 7.50%.

The increase in revenue reflects continued demand for diagnostic services and growth in the Companys operational activities.

The Companys operational model is designed to improve capacity utilisation and enable the Company to provide pathology and radiology services through an integrated network..

(d) Outlook

The management remains positive about the long-term prospects of the diagnostic healthcare industry and the Companys ability to participate in the expected growth of the sector.

The Companys future growth strategy is expected to focus on:

• expansion of its diagnostic centre network;

• strengthening its presence in Maharashtra;

• increasing utilisation of existing diagnostic infrastructure;

• establishment of additional centres;

• expansion of advanced radiology services;

• strengthening pathology services;

• improving patient convenience;

• technology adoption and digital reporting;

• strengthening home collection and other patient-centric services;

• improving operational efficiencies; and

• maintaining financial discipline while pursuing growth.

The diagnostic industry is expected to benefit from increasing healthcare awareness, ageing population, rising non- communicable diseases and increasing demand for preventive healthcare. The Companys industry assessment has also identified continued growth prospects for diagnostic services in Maharashtra.

The Company intends to leverage its existing infrastructure, experience, medical capabilities and hub-and-spoke operating model to support its future growth.

However, the actual performance of the Company will depend on patient volumes, utilisation of diagnostic equipment, pricing, competition, operating costs, regulatory developments, availability of skilled manpower and other economic and industry factors.

During the year, the Company commenced commercial operations at its Dadar centre on January 30, 2026. Subsequent to the end of the financial year, the Company further expanded its presence by commencing operations at two new diagnostic centres, one in Pune and another in Nashik, Maharashtra. With these additions, the Companys network has expanded to 10 diagnostic centres and 1 centralised laboratory, through which it provides pathology, radiology, imaging, clinical laboratory and teleradiology services. The expansion strengthens the Companys geographical presence and enables it to provide accessible and comprehensive diagnostic services to a wider customer base

(e) Risks and Concerns

The Company operates in a competitive and regulated healthcare environment. The major risks and concerns identified by the management are as follows:

1. Competition Risk

The diagnostic industry is highly fragmented and competitive, with organised diagnostic chains as well as numerous standalone centres.

Mitigation: The Company seeks to differentiate itself through integrated diagnostic services, advanced radiology capabilities, quality of services, patient convenience and its hub-and-spoke network.

2. Regulatory Risk

The Companys operations are subject to applicable healthcare, biomedical waste, radiation safety, environmental and other regulatory requirements

Mitigation: The Company monitors applicable regulatory requirements and maintains the necessary approvals and licences for its operations.

3. Medical Equipment Risk

Advanced diagnostic services require substantial investment in specialised medical equipment. Equipment failure, technological obsolescence or delays in replacement can affect operations.

Mitigation: The Company maintains and monitors its medical equipment and seeks to optimise utilisation and undertake capital expenditure based on operational requirements.

4. Human Resource Risk

Availability and retention of qualified radiologists, doctors, technicians and other healthcare professionals is critical.

Mitigation: The Company seeks to maintain an experienced professional team and engage appropriately qualified professionals.

5. Diagnostic Quality Risk

Any error in diagnostic testing or reporting may have financial, legal and reputational consequences.

Mitigation: The Company follows established operational and diagnostic procedures and relies on qualified medical and technical personnel.

(f) Internal Control Systems and their Adequacy

The Company has established internal control systems commensurate with the size, nature and complexity of its business.

The internal control framework is designed to provide reasonable assurance regarding:

• safeguarding of assets;

• accuracy and completeness of accounting records;

• reliability of financial reporting;

• prevention and detection of fraud and errors;

• proper authorisation of transactions;

• operational efficiency;

• compliance with applicable laws and regulations; and

• effective monitoring of financial and operational risks.

The Company has established appropriate financial and operational controls for its business activities. The management periodically reviews the adequacy and effectiveness of internal controls and takes corrective measures wherever necessary.

The Audit Committee of the Board provides oversight over financial reporting, internal control systems, audit matters and related areas.

The Board is of the opinion that the Companys internal control systems are adequate and commensurate with the size and nature of its operations.

(g) Discussion on Financial Performance with respect to Operational Performance

The financial performance of the Company during FY 2025-26 was supported by continued growth in its diagnostic operations and investments in its infrastructure.

Discussion on Financial Performance with respect to Operational Performance

The Companys financial performance for FY 2025-26 is summarised below:

(Rs. in Lakhs)

Particulars	Standalone 2025-26	Consolidated 2025-26	Standalone 2024-25	Consolidated 2024-25
Revenue from Operations	2027.66	3235.36	1627.02	3009.52
Other Income	113.25	68.83	146.40	8.61
Total Income	2140.91	3304.19	1773.42	3018.14
Profit Before Tax	725.41	700.84	668.39	656.36
Profit After Tax	552.81	487.32	522.74	492.95

• Standalone Performance

During the year under review, your Company generated total income of Rs. 2,140.91 Lakhs as against Rs. 1,773.42 Lakhs in the previous year. The Company earned Profit Before Tax of Rs. 725.41 Lakhs and Profit After Tax of Rs. 552.81 Lakhs during the year under review, as compared to Profit Before Tax of Rs. 668.39 Lakhs and Profit After Tax of Rs. 522.74 Lakhs, respectively, in the previous year.

• Consolidated Performance

During the year under review, your Company generated consolidated total income of Rs. 3,304.19 Lakhs as against Rs. 3018.14 Lakhs in the previous year. The Company earned Consolidated Profit Before Tax of Rs. 700.84 Lakhs and Consolidated Profit After Tax of Rs. 487.32 Lakhs during the year under review, as compared to Consolidated Profit Before Tax of Rs. 656.36 Lakhs and Consolidated Profit After Tax of Rs. 492.95 Lakhs, respectively, in the previous year.

Overall, the Company witnessed healthy growth in operating revenue and profitability on a standalone basis, while consolidated operations continued to record revenue and PBT growth during the year.

(h) Material Developments in Human Resources / Industrial Relations Front, Including Number of People Employed

Human resources continue to be an important component of the Companys operations, particularly because diagnostic services require qualified medical professionals, radiologists, laboratory personnel, technicians and other trained personnel.

As at March 31, 2026, the Company had 131 employees, as compared with 104 employees as at March 31, 2025. The Company continues to focus on:

• recruitment and retention of competent personnel;

• employee training and development;

• maintaining a professional and performance-oriented work environment;

• employee welfare;

• compliance with applicable labour laws; and

• strengthening human resources in line with the Companys expansion plans.

The Companys operations also depend upon qualified doctors, radiologists, laboratory professionals and technical personnel. The Company seeks to maintain an appropriate mix of internal and consultant professionals to support its diagnostic network.

The industrial relations environment remained cordial and satisfactory during FY 2025-26, and the Company did not experience any material industrial relations issues during the year.

(i) Details of Significant Changes in Key Financial Ratios

In accordance with the requirements of Regulation 34(2)(e) read with Part B of Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the details of significant changes in key financial ratios, i.e. changes of 25% or more as compared to the immediately preceding financial year, are given below:

Sr. No.	Particulars	March 31, 2026	March 31, 2025	% Change	Remarks
1	Debtors Turnover Ratio	0.00	0.00	N.A.	There were no credit sales during the period.
2	Inventory Turnover Ratio	54.10	49.65	8.96%	No significant change.
3	Interest Coverage Ratio	180.25	187.11	(3.66%)	No significant change.
4	Current Ratio	9.61	2.33	312.44%	Significant change
5	Debt Equity Ratio	Nil	0.15	(100.00%)	Significant change
6	Operating Profit Margin (%)	30.40%	32.29%	(5.85%)	No significant change.
7	Net Profit Margin (%)	27.26%	32.13%	(15.16%)	No significant change.

Significant Changes Current Ratio:

The Current Ratio increased from 2.33 times as at March 31, 2025 to 9.61 times as at March 31, 2026, representing an increase of 312.44%. The significant increase was primarily due to an increase in current assets, including short-term investments in fixed deposits having maturity of more than three months but less than one year, and an increase in short- term loans and advances during FY 2025-26.

Debt Equity Ratio:

The Debt Equity Ratio decreased from 0.15 times as at March 31, 2025 to Nil as at March 31, 2026, representing a decrease of 100%. The change was primarily due to repayment of the outstanding debt during FY 2025-26, resulting in the Company becoming debt-free as at March 31, 2026.

Other Key Ratios:

The Debtors Turnover Ratio remained at Nil as the Company had no credit sales during the year. Inventory Turnover Ratio, Interest Coverage Ratio, Operating Profit Margin and Net Profit Margin did not register a change of 25% or more during FY 2025-26 and therefore do not require detailed explanation under the prescribed criteria.

(j) Return on Net Worth

Particulars	March 31, 2026	March 31, 2025	% Change
Return on Net Worth (Using Average Networth Criteria)	17.87%	47.07%	(62.03%)

The Return on Net Worth decreased from 47.07% in FY 2024-25 to 17.87% in FY 2025-26, representing a decrease of 62.03%.

The decrease was primarily attributable to the substantial increase in the Companys shareholders equity during FY 2025-26. The increase in the equity base was proportionately higher than the increase in profit for the year, resulting in a lower return on the enlarged equity base.

For and on behalf of the Board of

Invicta Diagnostic Limited (Formerly Known as Invicta Diagnostic Private Limited)

Sanket Vinod Jain

Managing Director

DIN: 08299039

Place: Mumbai

Date:25.08.2026