Maitreya Medicare Ltd Management Discussions

Industry Structure and Developments

The overall economic development and increasing population have propelled the healthcare sector to become one of Indias largest sectors, both in revenue generation and job creation.

The healthcare industry in India continues to play a crucial role in the nations economic framework, making substantial contributions to growth and employment across diverse sectors such as hospitals, medical devices, clinical trials, telemedicine, medical tourism, health insurance and medical equipment.

The Indian Government is further strengthening the healthcare sector by undertaking structural and sustained reforms and has been announcing conducive policies for encouraging FDI. The Aatmanirbhar Bharat Abhiyaan packages include several short term and longer term measures for the health system, including Production Linked Incentive (PLI) schemes for boosting domestic manufacturing of pharmaceuticals and medical devices. Additionally, India is working towards becoming a hub for spiritual and wellness tourism, as the country has much to offer in Ayurveda and Yoga.

The sector has undergone significant transformations in recent years, fuelled by technological advancements, policy reforms and growing investments. With a population exceeding 1.4 billion, India faces unique challenges in providing accessible and affordable healthcare to its citizens. However, it also presents immense opportunities for innovation and growth.

Despite these advancements, challenges persist, including disparities in healthcare access between urban and rural areas, inadequate infrastructure and the need for skilled healthcare professionals. Nevertheless, with continued efforts towards innovation, collaboration and policy reforms, the Indian healthcare sector is poised for healthy growth and improvement in the coming years.

Opportunities and Threats

Indias healthcare sector continues to offer significant long-term growth opportunities, supported by favourable demographics, rising healthcare awareness, increasing prevalence of chronic and lifestyle diseases, expanding health insurance coverage, and growing investments in healthcare infrastructure. An ageing population, increasing disposable incomes, and greater emphasis on preventive healthcare, wellness, diagnostics, and digital health solutions are expected to drive sustained demand for quality healthcare services.

The Government of India continues to strengthen the healthcare ecosystem through initiatives such as Ayushman Bharat, expansion of Health and Wellness Centres, the Ayushman Bharat Digital Mission (ABDM), Production Linked Incentive (PLI) schemes for medical devices and pharmaceuticals, and increased investments in public healthcare infrastructure. These initiatives are expected to improve healthcare accessibility, affordability, and quality while encouraging greater private sector participation.

Medical tourism remains a major growth opportunity for India owing to its internationally accredited hospitals, skilled medical professionals, advanced treatment capabilities, and significant cost advantage compared with developed countries. Growing global demand for specialized treatments, coupled with improvements in healthcare infrastructure and digital connectivity, is expected to further strengthen Indias position as a preferred healthcare destination.

Tier II and Tier III cities continue to represent one of the largest untapped opportunities for healthcare providers. Increasing urbanisation, improving purchasing power, enhanced connectivity, and limited availability of quality tertiary healthcare services have encouraged both national hospital chains and regional healthcare providers to expand their presence in these markets through greenfield projects, acquisitions, and strategic partnerships.

Rapid adoption of digital technologies including telemedicine, artificial intelligence, electronic health records, remote patient monitoring, robotics, and data analytics is transforming healthcare delivery by improving operational efficiency, patient outcomes, and accessibility. The continued digital transformation of the sector is expected to create new opportunities for innovation and service delivery.

At the same time, the industry faces several challenges. Rising operating costs, inflationary pressures, increasing manpower expenses, and shortages of skilled healthcare professionals continue to impact hospital profitability. The sector also operates within an evolving regulatory framework, with increasing focus on quality standards, patient safety, pricing regulations, data privacy, and compliance requirements, which may increase operational complexity and costs.

The healthcare sector remains highly competitive, with continued capacity expansion by established hospital chains, private equity-backed healthcare platforms, and regional healthcare providers. Pricing pressures, talent retention, and the need for continuous investment in technology and infrastructure present additional challenges. Further, geopolitical uncertainties, global supply chain disruptions, fluctuations in imported medical equipment costs, and economic volatility may affect capital expenditure and operating margins.

Despite these challenges, the long-term outlook for the Indian healthcare industry remains positive. Strong structural demand drivers, supportive government policies, rising health awareness, increasing insurance penetration, technological innovation, and continued investment in healthcare infrastructure are expected to sustain the sectors growth momentum over the coming years.

Outlook

The global economy is expected to witness steady but moderate growth amid persistent geopolitical tensions, trade uncertainties, inflationary pressures, and evolving monetary policies across major economies. According to the International Monetary Fund (IMF), global Gross Domestic Product (GDP) growth is projected at approximately 3.1% in 2026, improving marginally to 3.2% in 2027. The outlook is supported by easing inflation, resilient labour markets in several advanced economies, and gradual stabilization in global supply chains. However, downside risks remain due to geopolitical conflicts, commodity price volatility, tighter financial conditions, and trade-related uncertainties.

India continues to be one of the fastest-growing major economies in the world despite global economic headwinds. The IMF projects Indias real GDP growth at around 6.4% in 2026, while other estimates place growth in the range of 6.5 6.6%, supported by strong domestic consumption, sustained public infrastructure investment, robust services sector performance, digital transformation, and ongoing structural reforms. Although external risks such as higher energy prices and geopolitical uncertainties persist, Indias macroeconomic fundamentals, improving manufacturing activity, and resilient investment climate are expected to support long-term economic expansion.

The Indian healthcare industry continues to be one of the countrys fastest-growing sectors, driven by rising healthcare awareness, increasing prevalence of chronic diseases, expanding health insurance coverage, growing investments in healthcare infrastructure, rapid adoption of digital health technologies, and favourable government initiatives. The sector comprises hospitals, diagnostics, pharmaceuticals, medical devices, telemedicine, health insurance, clinical research, and medical tourism. The Indian healthcare market is projected to reach approximately USD 610 640 billion by 2026, reflecting sustained double-digit growth driven by increasing healthcare expenditure and improved access to quality healthcare services. The hospital segment remains the largest contributor to the sector and is expected to continue expanding due to increasing demand for quality healthcare services, rising private sector investments, and capacity expansion across Tier II and Tier III cities. The industrys long-term outlook remains positive, supported by favourable demographics, technological advancements, and continued policy support for strengthening healthcare infrastructure.

Risks and Concerns

Risks are an unavoidable and integral part of any enterprise. Efficient management of business risks is a key factor that determines growth, profitability and at times, even survival. In the last few years, the healthcare industry in India has been witnessing increased consolidation even among the larger players. Further, Government intervention, by way of an active regulatory regime, be it in terms of price control or capping of margins on medicines and implants has been stepped up. State and Central Healthcare coverage schemes are also impacting industry margins. At Maitreya Hospitals, we continue to strive for a focused approach on risk identification, management and mitigation. We are documenting operational risks and concerns at the unit level as well as the strategic and financial risks at the enterprise level in the form of a robust risk register. The aim is to improve responsibility accounting and bring the right stakeholders to focus on appropriate risk mitigation and monitoring measures at various levels within an organisation.

Segment - Wise or Product - Wise Performance.

Your Company operates in only one segment

Internal Control Systems and Their Adequacy

The Company has an adequate system of internal control to safeguard and protect from loss, unauthorized use or disposition of its assets. All the transactions are properly authorized, recorded and reported to the Management. The Company is following all the applicable Accounting Standards for properly maintaining the books of accounts and reporting financial statements. The Internal auditor of the company checks and verifies the internal control and monitors then in accordance with policy adopted by the company. The company continues to ensure proper and adequate systems and procedures commensurate with its size and nature of its business.

Discussion on Financial Performance with respect to Operation Performance (In 000)

During the current period, your company has earned total revenue of Rs. 449532.78 as against Rs. 448530.34 in the previous year. The company has earned a net profit of Rs. (13248) as compared to Rs. 18993.43 in the previous year.

Human Resource

The primary objective of any human resource management is to ensure the availability of competent and willing workforce to the organisation as well as to meet the needs, aspirations, values and dignity of individuals / employees and having due concern for the socio economic problems of the community and the country. During the year, your company focused on these objectives keeping mind the disastrous Covid Pandemic that has engulfed the entire world.