June Industries Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

OVERVIEW OF COMPANY:

June Industries Limited (Formerly known as Kashyap Tele-Medicines Limited) is a public limited company incorporated in India and listed on BSE Limited. During the financial year, the Company has strategically shifted its business focus from Information Technology and Software Services to the trading of pharmaceutical, hygiene and cleanroom products. This strategic transformation aligns the Company with the growing healthcare and pharmaceutical distribution sector in India and enables it to capitalize on emerging opportunities in the pharmaceutical supply chain. The Company has its registered office in Navi Mumbai, Maharashtra, and its corporate office in Ahmedabad, Gujarat. The Company is committed to building a sustainable pharmaceutical trading business by emphasizing regulatory compliance, quality products, efficient distribution and customer satisfaction.

1. INDUSTRY STRUCTURE AND DEVELOPMENT:

India continues to be one of the fastest-growing pharmaceutical markets globally and is widely recognized as the "Pharmacy of the World." The Indian pharmaceutical industry has established itself as a leading producer of generic medicines, vaccines and Active Pharmaceutical Ingredients (APIs), supplying medicines to more than 200 countries. Supported by a strong manufacturing base, favorable government policies, increasing healthcare awareness and growing domestic demand, the Indian pharmaceutical market continues to demonstrate resilient growth.

The Indian pharmaceutical market is estimated to have crossed USD 65 billion during FY 2025-26 and is expected to reach nearly USD 130 billion by 2030, driven by increasing healthcare expenditure, rising life expectancy, expansion of health insurance coverage and increasing prevalence of chronic diseases. The Government of Indias initiatives such as Ayushman Bharat, Production Linked Incentive (PLI) Scheme for Pharmaceuticals, Pradhan Mantri Bhartiya Janaushadhi Pariyojana and continued investment in healthcare infrastructure are expected to create significant opportunities across the pharmaceutical value chain.

The pharmaceutical wholesale trading industry plays a vital role in ensuring the uninterrupted availability of medicines across hospitals, pharmacies, healthcare institutions and retail distribution networks. The sector has witnessed increasing demand owing to expansion of organized retail pharmacies, growth of e- pharmacies, improvement in logistics infrastructure and implementation of digital supply chain management systems. Increasing emphasis on quality assurance, traceability, inventory optimization and regulatory compliance has further strengthened the organized pharmaceutical distribution ecosystem.

During the year under review, June Industries Limited commenced its transition towards pharmaceutical products trading. The Company intends to establish a diversified portfolio comprising pharmaceutical formulations, hygiene products and cleanroom consumables while leveraging its management capabilities and business network. Although the Company is presently in the initial stage of business transformation, management believes that the long-term fundamentals of the Indian pharmaceutical distribution industry provide substantial opportunities for sustainable growth and value creation.

2. OPPORTUNITIES:

1. Rapid Growth in Indian Pharmaceutical Market

Indias pharmaceutical industry continues to witness robust growth supported by increasing healthcare expenditure, rising disposable income, greater health awareness and expanding access to healthcare facilities. The pharmaceutical wholesale distribution sector is expected to benefit significantly from increasing demand for quality medicines and healthcare products across urban as well as rural markets.

2. Expansion of Organized Pharmaceutical Distribution

The pharmaceutical distribution industry is gradually shifting from fragmented unorganized players to organized wholesale distributors who comply with regulatory standards, maintain product traceability and ensure timely deliveries. This transition provides significant opportunities for professionally managed companies to expand their customer base and strengthen market presence.

3. Government Healthcare Initiatives

Government initiatives such as Ayushman Bharat, Jan Aushadhi Scheme, expansion of healthcare infrastructure and increasing allocation towards healthcare are expected to enhance pharmaceutical consumption across the country. Growing institutional demand from hospitals, clinics and healthcare providers is likely to support long-term business growth.

4. Increasing Demand for Hygiene and Cleanroom Products

Growing awareness regarding infection prevention, workplace hygiene, pharmaceutical manufacturing standards and healthcare safety has significantly increased the demand for hygiene products and cleanroom consumables. This presents an attractive opportunity for the Company to diversify its product portfolio and cater to specialized customer segments.

5. Digitalization of Pharmaceutical Supply Chain

Increasing adoption of ERP systems, digital inventory management, online procurement platforms and technology-driven logistics is improving supply chain efficiency across the pharmaceutical industry. The Company intends to leverage digital solutions to optimize procurement, inventory management and customer servicing, thereby enhancing operational efficiency and competitiveness.

CHALLENGES:

The Indian pharmaceutical wholesale trading industry continues to offer significant growth opportunities; however, it is also exposed to several operational, regulatory and economic challenges. The Company continuously evaluates these risks and adopts appropriate measures to strengthen its business model and ensure sustainable growth.

1. Regulatory Compliance

The pharmaceutical industry is one of the most regulated sectors in India. Wholesale distributors are required to comply with various regulations relating to drug licensing, storage conditions, product traceability, GST compliance and quality standards prescribed under the Drugs and Cosmetics Act and related regulations. Any changes in regulatory requirements may increase compliance costs and impact operations.

2. Pricing Pressure

The pharmaceutical market is highly competitive with increasing pressure on product pricing due to government regulations under the Drug Price Control Order (DPCO), competition among distributors and procurement by institutional buyers. Sustaining profitability while maintaining competitive pricing remains a key challenge.

3. Supply Chain Disruptions

The pharmaceutical distribution business depends upon timely procurement and uninterrupted supply of products from manufacturers. Any disruption arising from raw material shortages, transportation bottlenecks, geopolitical developments or manufacturing delays may impact product availability and customer service.

4. Working Capital Management

The wholesale pharmaceutical business generally requires adequate working capital to maintain inventories and extend credit to customers. Efficient inventory planning, receivable management and cash flow monitoring are essential for maintaining liquidity and operational efficiency.

5. Intense Competition

The Indian pharmaceutical distribution market comprises several organized and unorganized players competing on pricing, product availability and customer service. Continuous improvement in operational efficiency, customer relationships and product portfolio will be essential to maintain competitiveness.

Despite these challenges, the Company believes that its strategic focus, prudent financial management and customer-centric approach will enable it to successfully capitalize on emerging opportunities within the pharmaceutical distribution sector.

STRENGTH:

June Industries Limited is in the process of establishing its presence in the pharmaceutical wholesale trading industry. The Companys key strengths are expected to support its long-term growth and business sustainability.

1. Strategic Business Transformation

The Company has successfully realigned its business objectives from Information Technology to pharmaceutical products trading, thereby entering a sector with strong long-term growth potential supported by increasing healthcare expenditure and rising demand for pharmaceutical products.

2. Asset-Light Business Model

The Companys wholesale trading model enables it to operate with comparatively lower capital expenditure requirements than pharmaceutical manufacturing businesses. This provides operational flexibility and allows management to focus on business expansion and efficient utilization of financial resources.

3. Experienced Management

The Company is led by an experienced management team committed to maintaining high standards of corporate governance, regulatory compliance and ethical business practices. Management continues to evaluate business opportunities for expanding the Companys product portfolio and customer base.

4. Focus on Customer Satisfaction

The Company intends to build long-term relationships with pharmaceutical manufacturers, distributors, hospitals, healthcare institutions and retail customers by ensuring timely delivery, quality products and reliable customer support.

5. Financial Discipline

The Company continues to maintain a debt-free capital structure and adopts a prudent approach towards financial management. This provides financial flexibility for future expansion and enables the Company to pursue growth opportunities in a disciplined manner.

OVERALL REVIEW OF COMPANY

During the Financial Year 2025-26, the Company undertook a significant strategic transformation by changing its principal business activity from Information Technology and Software Services to the trading of pharmaceutical, hygiene and cleanroom products. This transition marks an important milestone in the Companys long-term growth strategy and positions it to participate in one of Indias fastest-growing industries.

The Company is presently in the initial phase of developing its pharmaceutical trading business and is focused on establishing reliable sourcing arrangements, strengthening its distribution network and building long-term relationships with manufacturers, healthcare institutions and retail customers. Management believes that Indias expanding healthcare infrastructure, increasing pharmaceutical consumption and supportive government initiatives provide a strong foundation for sustainable future growth.

The Company intends to gradually expand its product portfolio to include pharmaceutical formulations, hygiene products, cleanroom consumables and other healthcare-related products, while maintaining strict compliance with applicable regulatory requirements. The management remains committed to improving operational efficiency, strengthening internal processes and creating long-term value for all stakeholders.

OPPORTUNITIES, THREAT, RISKS AND CONCERNS

The Indian pharmaceutical industry continues to offer attractive long-term growth opportunities driven by increasing healthcare expenditure, growing prevalence of chronic diseases, rising awareness regarding preventive healthcare and expansion of healthcare infrastructure across the country. The pharmaceutical wholesale distribution sector is expected to benefit from increasing demand for quality medicines, organized supply chains and digital transformation of healthcare services.

However, the business also faces certain risks including changes in regulatory policies, pricing controls, supply chain disruptions, increasing competition, fluctuations in procurement costs and changing customer preferences. The Company continuously monitors these developments and adopts appropriate risk mitigation measures through effective procurement planning, regulatory compliance, efficient inventory management and prudent financial controls.

The Company also recognizes risks relating to customer credit, liquidity management and operational continuity. Accordingly, emphasis is placed on maintaining adequate internal controls, strengthening vendor relationships and ensuring timely monitoring of receivables and working capital.

Management remains confident that the Companys strategic repositioning into pharmaceutical trading, combined with disciplined execution and sound governance practices, will enable it to successfully address these challenges and capitalize on emerging opportunities.

FUTURE OUTLOOK:

The long-term outlook for the Indian pharmaceutical industry remains positive, supported by favourable demographics, increasing healthcare awareness, rising income levels and continued government focus on healthcare infrastructure. The pharmaceutical wholesale trading sector is expected to grow steadily with increasing demand from hospitals, retail pharmacies, healthcare institutions and organized distribution channels.

June Industries Limited intends to strengthen its position by expanding its product portfolio, developing strategic relationships with reputed manufacturers and suppliers and enhancing operational efficiency through technology-driven business processes. The Company also proposes to explore opportunities in specialized healthcare products, hygiene solutions and cleanroom consumables to diversify its revenue streams.

Management remains committed to building a sustainable and scalable pharmaceutical trading business through disciplined financial management, customer-centric operations, regulatory compliance and continuous improvement in business processes. The Company believes that its strategic transformation provides a strong platform for long-term growth and sustainable shareholder value creation.

3. FINANCIAL CONDITION AND OPERATIONAL PERFORMANCE:

a. Share Capital

The Company presently has one class of equity shares. The Authorized Share Capital of the Company is Rs15,00,00,000 divided into 15,00,00,000 Equity Shares of Rs1/- each. The issued, subscribed and paid-up share capital of the Company as on 31st March, 2026 stood at Rs4,77,22,000, comprising 4,77,22,000 Equity Shares of Rs1/- each.

There was no change in the issued, subscribed and paid-up share capital during the financial year under review.

b. Shareholder Funds

The total Shareholders Funds of the Company stood at Rs17.88 Lakhs as on 31st March, 2026 as against Rs63.95 Lakhs as on 31st March, 2025. The reduction in shareholders funds was primarily attributable to the loss incurred during the year under review.

c. Profit & Loss account

The Company reported a Loss after Tax (PAT) of Rs46.06 Lakhs for the financial year ended 31st March, 2026 as against a marginal loss in the previous financial year. The loss was mainly attributable to higher employee benefit expenses, administrative costs and penalties incurred during the year.

d. Fixed Assets

As per the audited Financial Statements for the year ended 31st March, 2026, the Company does not own any significant fixed assets. The Companys operations continue to remain asset-light, enabling greater operational flexibility and efficient utilization of financial resources.

e. Net Worth

The Return on Net Worth (RONW) for the financial year ended 31st March, 2026 stood at (4.69%), reflecting the loss incurred during the year.

f. Income

The revenue from operations for the financial year ended 31st March, 2026 stood at Rs19.70 Lakhs. The Companys operating revenue primarily comprised income from Projects & Services amounting to Rs3.60 Lakhs and Software Sales amounting to Rs15.60 Lakhs, reflecting the Companys continued focus on technology-driven software solutions and digital services.

g. Earnings before Interest, Tax and Depreciation (EBITDA)

The Company reported an EBITDA loss of Rs46.06 Lakhs during the financial year ended 31st March, 2026 as compared to a nominal EBITDA loss in the previous year. The decline was primarily due to increased operating expenses and employee-related costs during the year.

h. Earnings per share (EPS)

The Basic and Diluted Earnings per Share (EPS) for the financial year ended 31st March, 2026 stood at Rs(0.097) per equity share as against Rs(0.000) per equity share in the previous year.

4. SEGMENT WISE / PRODUCT WISE PERFORMANCE:

The Company presently operates in a single business segment. Accordingly, segment-wise reporting is not applicable. Following the change in the Companys main object, the management is focusing on establishing and expanding its pharmaceutical products trading business. As the business grows, the Company shall review the need for segment reporting in accordance with the applicable Accounting Standards.

5. RISKS, CONCERNS AND THREATS:

The pharmaceutical wholesale trading business is exposed to various business, financial and operational risks including regulatory compliance risk, supply chain disruptions, inventory management risk, customer credit risk, liquidity risk, pricing pressure, competition, product quality risk and changes in healthcare regulations.

The Company continuously evaluates these risks through an effective risk management framework and adopts appropriate mitigation measures including vendor evaluation, prudent inventory management, monitoring of receivables, strengthening internal controls and maintaining compliance with applicable laws and regulations. The Company also focuses on developing long-term relationships with reliable suppliers and customers to minimize operational risks.

Management believes that timely identification and effective management of these risks will enable the Company to achieve sustainable business growth while protecting stakeholders interests.

6. INTERNAL CONTROL SYSTEM AND THEIR ADEQUACY:

The Company has aligned its current systems of internal financial control with the requirement of Section 134(5)(e) of the Companies Act, 2013. It includes policies and procedures adopted by the Company for ensuring orderly and efficient conduct of its business, thereby covering not only the controls pertaining to financial statements but also include strategic and operational controls pervasive across the entire business. The Company has an adequate system of internal financial controls commensurate with the size and nature of its business operations. The internal control framework is designed to ensure orderly and efficient conduct of business, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information.

The Audit Committee periodically reviews the adequacy and effectiveness of the internal control systems, internal audit findings and compliance with applicable laws and regulations. Appropriate corrective actions

are taken wherever necessary to strengthen the overall control environment.

The Statutory Auditors have also reviewed the adequacy of internal financial controls over financial reporting as part of their audit procedures.

7. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS:

The Company firmly believes that its employees are one of its most valuable assets and recognizes the importance of developing a competent, motivated and professional workforce.

During the financial year under review, the Company continued to maintain cordial industrial relations. Management remains committed to providing a transparent, performance-oriented and healthy working environment that encourages professional development, teamwork and ethical conduct.

The Company continues to strengthen its organizational capabilities in line with its transition into pharmaceutical trading and remains focused on attracting and retaining skilled professionals to support future business growth.

8. DETAILS OF SIGNIFICANT CHANGES (I.E. CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS, ALONG WITH DETAILED EXPLANATIONS THEREFOR:

Details of Key Financial Ratios and any change in Return on Net Worth of the Company including explanations therefore are given below:

Ratio	31st March, 2026	31st March, 2025	% change*
Current Ratio	1.40	0.22	5.22%
Debt- Equity Ratio	This ratio is not applicable to the Company as there is no debt raised by the Company
Debt Service Coverage ratio	This ratio is not applicable to the Company as there is no debt raised by the Company
Return on Equity ratio	(2.58)	(0.00)	>100%
Inventory Turnover ratio	This ratio is not applicable to the Company as the Company does not hold inventory
Trade Receivable Turnover Ratio	This ratio is not relevant as there are no major customer balances outstanding in current year and previous year.
Trade Payable Turnover Ratio	This ratio is not applicable to the Company does not have any trade payables
Net Capital Turnover Ratio	1.12	(10.53)	(>100%)
Net Profit ratio	(2.34)	(0.00)	(>100%)
Return on Capital Employed	(2.58)	(0.00)	>100%
Return on Investment	This ratio is not applicable as the Company does not have any investment which generate return on investment

Notes:

The major reason for variation in Current Ratio and Net Capital Turnover Ratio is mainly due to increased payables for expenses.

The major reason for change in profitability and margin related ratios is mainly due to the reason that the profit / (loss) for the current year is impacted due to penalty charged by BSE Limited and increased employee benefit expenses.

* The numbers in brackets represent that the numbers are in negative.

	For and on behalf of Board of Directors of
	For June Industries Limited
Date : 04th July, 2026	(Formerly known as Kashyap Tele-Medicines Limited)
Place: Navi Mumbai
	Sd/-
	Mr. Kalpesh Bipin Sheth
	Managing Director
	DIN: 00405151