Jeena Sikho Lifecare Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION AND ANALYSIS</dhhead-

Indian Economic Overview

FY26 marked another year of resilience and strong economic fundamentals for India, even as global conditions stayed uneven. India retained its position as the fastest-growing major economy, supported by firm domestic demand, healthy investment activity, and sustained public capital expenditure. On the new 2022-23 base series, real GDP growth is estimated at 7.6% for FY26, higher than the 7.1% recorded in FY25, reinforced by private consumption, government capex, and a strong revival in manufacturing and services. Manufacturing recorded double-digit growth, while the secondary and tertiary sectors expanded by over 9%.

Inflationary pressures eased considerably during the year, aided by favourable food prices and effective supply-side management, with headline retail inflation touching multi-year lows. The Reserve Bank of India maintained a calibrated balance between supporting growth and anchoring inflation, while financial stability remained intact. Bank credit grew steadily, underpinned by strong capital adequacy and improved asset quality.

The governments continued thrust on infrastructure, health, and digital connectivity, together with rationalisation of Goods and Services Tax rates, spurred consumption, employment, and enterprise development. Particularly relevant to our industry, the preventive and wellness healthcare ecosystem gained further momentum through expanded

attention to AYUSH systems, wider insurance linkages, and the Heal in India initiative. The environment remained conducive for traditional healthcare players like Jeena Sikho Lifecare Limited to build scale and deepen patient engagement across urban and rural markets.

Source: Second Advance Estimates of National Income FY 2025-26, Ministry of Statistics and Programme Implementation

Outlook

Looking ahead, Indias economic outlook remains constructive. The foundations laid over recent years, spanning policy reform, formalisation, and infrastructure investment, are expected to yield durable dividends. Real GDP growth for FY27 is projected in the range of 6.4% to 6.9%, with the International Monetary Fund and World Bank placing it near the lower end and the Reserve Bank of India at the higher end, driven by resilient domestic demand, a recovery in private capital expenditure, and steady services momentum.

Certain external factors could introduce volatility. Trade frictions with the United States remained a live theme through the year, though the moderation of additional United States tariffs on Indian goods from 50% to 10% has improved export prospects and trade sentiment. Elevated global energy prices and geopolitical tensions in West Asia continue to represent the principal downside risks, and policymakers are expected to remain agile in monitoring the evolving environment. With inflation expected to stay within manageable bounds, monetary policy may retain room to support growth where needed.

Rural and semi-urban consumption is likely to strengthen further with better agricultural output, while services expansion and export opportunities are expected to broaden. For the healthcare sector, the outlook is especially promising. Continued promotion of traditional systems of medicine under the Ministry of AYUSH, wider insurance coverage for AYUSH treatments, the expansion of Ayushman Arogya Mandirs, and the empanelment of day care therapy centres are likely to deepen access to holistic healthcare. The Heal in India medical value travel programme, backed by a dedicated allocation of around INR 20,000 crore in the Union Budget 2025-26, further enhances the export potential of Ayurvedic treatments.

At Jeena Sikho Lifecare Limited, we view these macroeconomic tailwinds as closely aligned with our growth strategy. The rising demand for alternative medicine, coupled with digital health adoption, improved affordability through insurance, and a growing preference for preventive care, presents a compelling opportunity. As we expand our

hospital footprint, strengthen our product portfolio, and enter new geographies including international markets, we remain confident of sustained growth and long-term value creation for all our stakeholders.

Source: IMF World Economic Outlook; Reserve Bank of India; World Bank India Development Update.

Industry Overview ^

Indian Ayurvedic Products Market

The Indian Ayurvedic products market continued to build strong momentum during the year. The market was valued at INR 1,017.51 billion in 2025, having crossed the trillion-rupee mark, as consumer preference shifted decisively towards natural and chemical-free remedies driven by rising health awareness and concern over the side effects of synthetic alternatives.

Looking forward, the market is projected to grow at a CAGR of 15.52% over 2026-2034, reaching an anticipated value of INR 3,728.75 billion by 2034.

This trajectory keeps the sector among the fastest-growing in wellness and personal care, underpinned by widening distribution, rising digital adoption, and increasing interest in preventive care.

Branded, Organised Players Consolidate Share

The organised market, comprising branded and standardised products, leads with an estimated 70% share in 2025, reflecting stronger consumer trust, regulatory compliance, and brand visibility.

North India anchors National Demand

North India remains the largest region with around a 35% share, benefiting from established manufacturing hubs, deep-rooted consumption patterns, and high e-commerce penetration.

Therapeutic and Nutraceutical Categories Lead

Within the product mix, healthcare categories such as nutraceuticals, dietary supplements, and Ayurvedic medicines occupy the largest share at about 58%, driven by demand for wellness-oriented supplements and herbal formulations.

Deeper Distribution meets Policy Backing

Availability across urban and rural centres through online and offline channels is improving accessibility, while government support continues to strengthen. The Union Budget 2025-26 raised the Ministry of AYUSH allocation to INR 3,992.90 crore from INR 3,497.64 crore in the previous year, and the WHO Global Centre for Traditional Medicine in Gujarat is reinforcing Indias global positioning.

Digital Discovery and Product Innovation

The market is witnessing strong interest across organic skincare, home remedies, and herbal-infused products, alongside greater digital awareness. According to the NSSO AYUSH Survey (2022-23), around 95% of Indians are aware of AYUSH systems, with roughly 53% of urban and 46% of rural individuals using them for prevention or treatment.

We remain committed to scientific validation, through our ongoing research and NABH standards, to differentiate and build consumer trust in a market where organised, quality-backed brands are winning out. Backed by economic tailwinds, institutional support, and changing consumer preferences, the market sets a compelling stage for Jeena Sikho to deepen its presence, innovate responsibly, and generate sustainable value.

Indian Health and Wellness Industry

The Indian health and wellness sector is evolving into a multifaceted ecosystem that embraces both clinical and preventive care. The overall wellness market reached approximately USD 164.35 billion in 2025 and is projected to reach USD 257.94 billion by 2034 at a CAGR of 5.14%. A closely related segment, health and wellness tourism, was valued at USD 20.6 billion in 2025 and is expected to grow to USD 38.6 billion by 2034 at a CAGR of 7.01%.

Underlining this momentum, the Ministry of Health and Family Welfare and the Ministry of AYUSH have scaled the Ayushman Arogya Mandir network to around 1.78 lakh operational centres, of which 12,292 are dedicated Ayush centres providing primary AYUSH- based care through yoga, medicinal plants, and lifestyle counselling. These efforts signal a firm government commitment to promoting holistic health across urban and rural India.

Source: IMARC Group; Ministry of AYUSH; Ministry of Health and Family Welfare

Strategic Alignment

This market backdrop maps closely to the Companys own priorities. Its position within the organised, branded segment, which now commands the larger share of the market, aligns with the decisive consumer shift towards standardised, quality-assured products. A proprietary portfolio of more than 330 SKUs under the Shuddhi brand is well placed to serve rising demand across both healthcare and personal care categories, while a strong presence in North India, the countrys largest regional market, adds further leverage. Product gross margins of around 85%, together with a widening reach across client support centres, e-commerce, clinics, and newly opened over-the-counter channels, allow the Company to translate industry growth into scalable, cash-generative revenue. Its hub-and- spoke, capital-light model supports rapid expansion at modest cost, while continued investment in research, NABH accreditation, and evidence- based protocols reinforces the credibility that increasingly separates trusted, organised players from the unorganised fringe. In short, the same forces powering the market are the ones the Company is built to capture.

Emerging trends

Consumer preference is tilting towards prevention, with nutrition, yoga, naturopathy, and mind-body practices marking a shift from episodic treatment to continuous wellness journeys.

Indias reputation as a wellness hub keeps rising, with retreats, yoga hubs, and Ayurvedic resorts drawing domestic and international travellers. Expanding at around 7% CAGR, wellness tourism is being reinforced by the Heal in India thrust.

Telemedicine, e-health, and mobile platforms are extending reach, while artificial intelligence is enabling dosha-based assessments and tailored recommendations. The WHO technical brief on AI in traditional medicine (July 2025) recognised Indias pioneering work, including Prakriti-based models and the Ayurgenomics project.

Buyers increasingly favour certified, evidence-based providers, with NABH accreditation and Good Manufacturing Practices professionalising the sector.

Following the IRDAI Master Circular on Health Insurance (April 2024), AYUSH treatments are now covered on par with allopathic care, with sub-limits removed and cashless networks mandated, materially improving affordability.

Rising international demand, WHO benchmarks, and progress on quality standardisation are opening export pathways for Indian Ayurveda, reinforced by institutional support and growing scientific validation.

• An integrated model combining Ayurveda healthcare services and products, with strong cross-selling synergies between the two verticals.

• A capital-light structure with low setup cost per bed, break-even at around 35% occupancy, and superior returns on capital employed.

• A broad product portfolio of over 330 SKUs with product gross margins of around 85%, supported by around 592 certified Ayurvedic doctors and a debt-free balance sheet.

• Clinical credibility, evidenced by 50 NABH- accredited facilities and over 180 published research papers.

^Challenges

• Regulatory harmonisation across AYUSH, the National AYUSH Mission, NABH,

and state bodies remains complex to navigate across geographies.

• Standardisation, quality assurance, and consistent evidence-based validation are essential to sustain consumer trust.

• Attracting and retaining skilled AYUSH practitioners, and securing quality- certified herbal raw materials, remain ongoing constraints.

• Limited public awareness and the perception of insufficient scientific rigour continue to affect wider acceptance.

Opportunities

• Wellness tourism and the Heal in India programme, including Ayush visa facilitation, open scale opportunities for integrated centres.

• The Ayushman Arogya Mandir rollout, government panels, and Uttar Pradeshs newly launched cashless Ayurveda scheme broaden institutional demand.

• AYUSH insurance parity, digital and tele-wellness, corporate wellness, OTC expansion, and international entry beginning with the UAE widen the addressable market.

• Rising lifestyle disorders such as diabetes, hypertension, and cardiovascular conditions continue to lift demand for alternative healthcare.

Threats

• Competition is intense across organised, unorganised, and overseas players, with easy access to free online information.

• Wellness demand is sensitive to macroeconomic shifts, tariffs, energy prices, and travel disruption.

• Any lapse in quality or service consistency could affect brand equity, while evolving regulation may raise compliance costs.

Conclusion

Indias health and wellness industry is in the midst of a structural transformation, powered by supportive policy, rising health consciousness, the growth of wellness travel, and rapid digital enablement. Government initiatives, from the expansion of AYUSH centres and insurance parity to the Heal in India medical value travel push, are widening both access and credibility, while consumers increasingly treat preventive care as a lifelong commitment rather than an occasional choice. This creates a fertile platform for organised, quality- led operators to deepen geographical reach, integrate services from clinical care to holistic retreats and digital wellness, and reinforce trust through scientific validation. Positioned at the meeting point of tradition and modern delivery, players that pair clinical rigour with scale and brand trust are well placed to emerge as national leaders in holistic healthcare, delivering measurable outcomes for patients and lasting value for stakeholders over the FY27 horizon and beyond.

Company Overview

Rooted in a mission to bring Ayurveda into everyday, mainstream healthcare, Jeena Sikho Lifecare Limited (JSLL) has grown into one of Indias foremost organised players in alternative medicine. The Company pairs ancient healing systems with modern clinical delivery and scientific validation, offering care across in-patient treatment, out-patient consultation, and a fast-growing range of Ayurvedic products that span both prevention and cure. With each passing year, we strengthen our resolve to become the trusted choice for natural, side-effect- free healthcare across the country and beyond.

We operate a network of wellness centres, hospitals, and clinics under the Shuddhi Ayurveda brand. As of FY26, we ran 61 operational hospitals and 58 clinics and day-care centres across 23 states and more than 100 cities and towns, supported by a capital-light business model that keeps operations agile while enabling rapid expansion. Our facilities provide treatments rooted in Ayurveda, Panchakarma, Naturopathy, and Homeopathy, delivered by around 592 certified Ayurvedic doctors and

around 779 supporting healthcare personnel, and reinforced by robust quality protocols. With 2,300 operational beds and the largest expansion pipeline in our history, we are committed to reaching more lives, especially in underserved markets.

Our product vertical complements our services with a wide portfolio of over 330 proprietary Ayurvedic medicines, health kits, and wellness products developed in-house. Distributed through client support centres, e-commerce, pharmacies, and our healthcare centres, and carrying gross margins of around 85%, this segment continued to see strong traction and contributed 52% of revenue in FY26. With expansion into over-the-counter markets and international entry beginning with the UAE, we are well positioned to capture growing demand for natural health solutions.

FY26 was a landmark year. We migrated to the NSE and BSE mainboards in August 2025, and adopted Ind AS post migration to the main board. Our strategic clarity, experienced leadership, and deep- rooted brand ethos enable us to operate with purpose and foresight, laying the foundation for sustainable long-term growth as we blend tradition with innovation and continue to create meaningful impact for our patients and stakeholders.

Operational Highlights

FY26 marked a significant phase of expansion and operational scale-up for Jeena Sikho Lifecare Limited. We increased inpatient capacity from 1,600 operational beds in the previous year to 2,300 by year-end, with beds occupied rising from 850 to 1,288. This scale-up is supported by a robust pipeline, taking total announced capacity to 2,861 beds, with 561 beds recently added and a further 445 beds in the pipeline, setting the stage for continued growth. Our IPD volumes rose 65% year on year to 40,454 patients, while OPD footfalls increased 69% to 5.70 lakh. Medicine order volumes more than doubled, from 4.43 lakh to 11.83 lakh, and active operational centres increased from 115 to 119. This growing trust reflects both patient satisfaction and our ability to deliver integrated, high-touch alternative healthcare at scale.

In parallel, we strengthened our revenue mix through focused growth across both verticals, expanding high-incidence, high-margin therapies such as liver care, infertility, sexual wellness, and musculoskeletal conditions, supported by free screening campaigns and health camps that convert around 30% of attendees into inpatient treatment. Average revenue per bed improved to 58,300 from 58,200. We advanced cashless integration with insurers and remained empanelled with CGHS, CAPF, ECHS, and Air India, as well as the state governments of Uttar Pradesh, Bihar, Haryana, and Punjab.

We also expanded to 50 NABH- accredited facilities, with three more in the pipeline. During the year, we deliberately reduced our government panel exposure, with government panel revenue moderating from 5117.8 crore to 536.0 crore, or from 25% to 4% of revenue, to lower receivables risk and protect cash flows.

Financial Highlights

Key Financial Ratios

At Jeena Sikho Lifeoare Limited (JSLL), we have established a robust risk management framework designed to proactively identify, evaluate, and mitigate potential business risks. This structured approach ensures continuity, oomplianoe, and competitiveness across all aspects of our operations. The key risks and our strategic responses are outlined below.

Regulatory Risk

Oversight of the safety, efficacy, and standardisation of herbal and alternative treatments is tightening, and each change to the rulebook can lift compliance costs and paperwork. The Company stays ahead of this by working strictly within applicable laws and standards, a discipline reflected in its 50 NABH-accredited facilities, with three more under way, and by holding tight quality controls from formulation through to bedside care.

Reputational Risk

Brand Equity is central to our expansion strategy, and any damage, whether from quality issues, misinformation, or dissatisfaction, could adversely affect operations and stakeholder trust. We continue to invest in

building and protecting the Shuddhi brand under the active leadership of our founder, Acharya Manish Ji, maintaining visibility through national campaigns, digital platforms, and public awareness initiatives, while focusing on service consistency across all touchpoints.

Third-Party Dependency Risk

Product manufacture and franchise- run service delivery lean on outside partners, which brings exposure around quality, compliance, and reputation. These ties are held together by firm contracts and regular audits, with the Company partnering only reputed manufacturers that meet its standards and keeping a close watch on franchisee performance.

Litigation and Receivables Risk

Treatment-related grievances can spill into legal action and adverse publicity,

and heavy reliance on government panels can stretch collection cycles. The Company holds a zero- tolerance line on quality, places care only with qualified doctors, and runs dedicated contact centres to settle concerns quickly; during the year it also trimmed government panel exposure to shorten receivable cycles and safeguard liquidity.

Cybersecurity and Data Privacy Risk

Growing reliance on teleconsultation, e-commerce, and the new health card means more patient and transaction data flows through digital systems, raising the stakes on security and privacy.

The Company addresses this through access controls, its integrated IT framework, and continued strengthening of data- protection practices as digital channels expand.

Human resources

People are the foundation on which the Companys growth is built, and investing in them stays a constant priority. Its clinical and support base brings together around 592 certified Ayurvedic and Naturopathy doctors and around 779 supporting healthcare personnel, with practitioners at franchise centres kept on the Companys own payroll so that standards of care never waver. As of 31 March 2026, the total workforce stood at 4,299 full-time employees.

A spirit of enquiry runs deep, evidenced by more than 180 research papers published during the year, and is nurtured through steady investment in training and capabilitybuilding. By pairing experienced specialists with ambitious younger talent, the Company sustains a workforce that is at once stable and inventive, with several long-serving leaders anchoring its culture and steering it through each new phase of growth.

Internal control systems

The Companys internal control architecture is scaled to match the reach, complexity, and character of its operations. It brings together well- documented policies and procedures, integrated information-technology systems, a considered delegation of authority, clear segregation of duties, and a structured cycle of internal audit and review. With the shift to the mainboard and the adoption of Ind AS, the incoming statutory auditors carried out a close examination of leasehold and related accounting treatments. Together, these controls work to keep operations efficient, protect the Companys assets, and secure compliance with the laws and regulations that frame the business, above all those governing the stewardship of resources and the integrity of financial reporting.

The Audit Committee returns to key findings and control measures at regular intervals, tightening governance, sharpening accountability, and keeping improvement continuous across the organisation.

Disclaimer

The statements in this section that look ahead reflect the Companys current reading of its prospects, its intentions, and its expectations for the period to come. Being forward-looking, they carry risks and uncertainties, some foreseeable and some not, along with other variables that could push actual results some distance from what is expressed or implied here. Shifts in the broader economy, movements in the regulatory environment, or events that cannot be anticipated may each weigh materially on how the business performs. The assumptions on which these statements rest are built from information drawn from internal and external sources as at the date of this report, and they remain open to change, so outcomes may differ. Readers should therefore regard these statements as speaking only as of the date they are made. Save where the law requires it, the Company takes on no obligation to revisit or revise them in light of fresh information, later events, or changed circumstances.