Narayana Hrudayalaya Ltd Management Discussions

Healthcare Spending & Coverage in India

Indias healthcare expenditure has been steadily rising, reflecting evolving patterns in how care is financed and accessed. Public healthcare spending reached approximately 2.5% of GDP in FY 2025, up from 1.9% in FY 2024. While this marks progress, Indias public health investment remains significantly lower than that of developed nations, which typically allocate around 10% of GDP to healthcare.

Sources: NITI Aayog Report, IBEF Report

A Multi-Tiered Insurance Landscape is Emerging

Indias healthcare system is undergoing a transformative shift toward a uniquely Indian model—one shaped by demographic diversity, fiscal constraints, and innovation. With a low tax-to-GDP ratio, achieving universal healthcare remains a formidable challenge. Simultaneously, out-of-pocket healthcare costs are unaffordable for a large segment of the population.

Despite these constraints, India has made notable progress in improving quality of life, largely due to advancements in the financial ecosystem. The critical question is no longer who pays for healthcare, but how we enable the country to afford it.

A multi-tiered coverage model is taking shape:

Top of the pyramid: Higher-income and formal-sector individuals are increasingly covered by private or employer-sponsored insurance.

Bottom of the pyramid: Government-funded schemes are expanding protection for economically vulnerable populations.

The "missing middle": A large segment of middle-income individuals remains inadequately covered. Although schemes like Ayushman Bharat and employer plans could theoretically cover up to 70% of the population, actual coverage is lower due to enrolment gaps and overlapping schemes. As a result, many in this group still rely heavily on out-of-pocket spending.

To address this critical gap, Narayana Health launched Narayana Aditi—Indias first insurance product tailored for the "missing middle." At a monthly premium of less than _1,000, Aditi offers comprehensive family coverage of up to _1 crore. As Aditi scales, we believe it has the potential to transform affordability and access for millions of Indian families.

Health Insurance Premiums and Spending Trends

Indias health insurance sector has witnessed robust growth, driven by economic expansion, increased consumer awareness, and proactive government initiatives. With a projected compound annual growth rate (CAGR) of 12.8%, the sector is poised for continued expansion. This growth is underpinned by technological innovation, regulatory reforms, and a growing emphasis on financial protection.

Despite this momentum, the insurance ecosystem continues to grapple with a fundamental challenge—trust. A lack of transparency, unanticipated out-of-pocket expenses, and rising costs have made access to health insurance difficult for many. At Narayana Health, we are addressing this challenge at its root through our integrated care model.

We believe that trust is earned through transparency, quality, and compassion. Our integrated care model is designed to minimize unnecessary interventions and ensure that every treatment is medically justified. We have implemented a formal clinical governance framework and outcome monitoring systems that include:

Mandatory second opinions for high-risk surgeries

Audits of procedure rates

Strict adherence to evidence-based clinical guidelines This data-driven approach helps us avoid the pitfalls of overtreatment and ensures consistency in care delivery. We also empower patients with clear, accessible information—because restoring public trust requires not just clinical excellence, but also transparency and accountability.

Our integrated model is designed to deliver high-quality, patient-centered care while keeping costs accessible across the care continuum.

Narayana Aarogyam delivers high-quality preventive care outside the hospital setting, helping patients stay healthier for longer.

Narayana One Health offers comprehensive, coordinated care that spans the full spectrum of healthcare needs.

Narayana Arya Insurance is a no-questions-asked, high-quality insurance product designed to provide peace of mind through simplicity, transparency, and reliability.

Together, these initiatives are not only improving access and affordability but also rebuilding trust in the healthcare ecosystem.

Capacity Creation

We have announced to add 2,000 Beds over the next four years. These additions are focused in areas where we have significant presence and brand loyalty to strengthen access for our integrated care customers.

We view infrastructure as a means to an end—not a metric of success. Our focus remains on building capabilities, bridging systemic gaps, and reshaping how healthcare is accessed, experienced, and trusted. Our approach emphasizes value-based care, where outcomes, affordability, and patient trust are central to performance.

Technology at the Heart of everything

At Narayana Health, technology is not an enabler—it is the foundation of our transformation. Our proprietary digital ecosystem, anchored by platforms like Athma and Medha, is redefining how care is delivered, experienced, and scaled. Athma, our hospital information system, integrates clinical, operational, and administrative workflows—digitizing everything from electronic health records and diagnostics to billing and inventory. Over 50% of consultations are now booked directly by patients through our app, website, or kiosks, marking a decisive shift toward self-service and convenience.

Innovations like the Aadi doctor app and real-time decision support tools have streamlined clinical workflows, reduced discharge times by nearly 50%, and freed up over 100 hours per nurse annually. Meanwhile, Medha is enabling AI-driven insights that personalize care and improve outcomes. Our digital-first approach is not just about efficiency—its about equity. We aim to democratize healthcare through scalable, intelligent, and compassionate systems.

Conclusion and Outlook

Indias healthcare landscape stands at a pivotal moment—where rising demand, shifting disease burdens, and evolving patient expectations are reshaping the way care is delivered and financed. While public spending and insurance penetration are gradually improving, access to quality and affordable care remains uneven.

At Narayana Health, we believe that the future of healthcare lies in building trust expanding access, and delivering value. By combining preventive health, comprehensive treatment, and transparent insurance solutions, we are not only complementing public efforts but also redefining what equitable healthcare can look like in India.

Technology, innovation, and patient empowerment will continue to be the cornerstones of our strategy. We are committed to deliver high-quality, affordable care at scale—while earning the trust of every patient we serve.

NH Consol P&L Review

Financial Performance Overview

The discussions in this section relate to the consolidated, Rupee-denominated financial results pertaining to the year that ended March 31, 2025. The financial statements of Narayana Hrudayalaya Limited and its subsidiaries (collectively referred to as ‘NH) are prepared in accordance with the Indian Accounting Standards (referred to as Ind AS) prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, as amended from time to time. Significant accounting policies used in the preparation of the financial statements are disclosed in the notes to the consolidated financial statements. The following table gives an overview of the consolidated financial results of the Company:

(H in Million)

			( H in Million)
Particulars	FY 2024-25	FY 2023-24	Growth %
Revenue from Operations	54,830	48,902	12.1%
EBITDA	13,684	12,224	11.9%
EBITDA (% Of Revenue)	25.0 %	25.0%	-
PBT	9355	8840	5.8%
PBT (% of Revenue)	17.1%	18.1%
TAX	1,457	980	48.7%
PAT	7,898	7,860	0.5%
PAT (% of Revenue)	14.4%	16.1%

Analysis of Consolidated revenue growth and margin performance

NH Consolidated Operating revenue grew 12.1% YoY reflecting strong operational performance. The Companys performance showed a remarkable resilience against the geo-political volatility which impacted the international patient footfall and maintained the growth momentum by having incremental flow of domestic patients in NH India Hospitals. Also, addition of a facility in Camana bay led to strong pickup in Cayman hospitals as well.

Consolidated EBITDA grew by 11.9%, the Company maintained stable margins this year, reflecting consistent operational efficiency and disciplined cost management. Operating margin remained resilient at 25% supported by a balanced product mix and effective pricing strategies, despite having 1st year of operations in new added facility in Cayman Islands as well as inflationary pressures across various cost items. This stability underscores the strength of our business model and our ability to navigate market fluctuations while preserving profitability. Looking ahead, we remain focused on driving sustainable growth while maintaining margin discipline through strategic investments and continuous process optimization.

Finance Cost rose sharply by 51% from _ 969 Million to _1,464 Million driven by new borrowings for capacity expansion impacting the PBT and PAT.

The effective tax rate increased from 11.1% in FY 2024 to 15.6% in FY 2025, primarily due to the absence of a one-time deferred tax credit that benefited the prior year. In FY 2024, the Company recognized a deferred tax impact stemming from a change in the statutory tax rate, which temporarily lowered the effective tax rate. With this one-time adjustment no longer applicable in FY 2025, the tax rate has normalized, aligning more closely with the underlying statutory rate. This change is accounting-driven and does not reflect a shift in the companys core profitability or tax planning strategy.

NH India Hospitals

During the year under review, the India Hospital business recorded income from operations amounting to _ 43,051 Million as against _ 38,858 Million in the corresponding period last fiscal. The following graphs and tables highlight the revenue mix and key drivers for the revenue of periods presented:

3. Key Drivers of Revenue - NH India Hospitals

Particulars	FY 2024-25	FY 2023-24	Growth
ARPP IP(_000)	141.9	129.5	10%
ARPP OP(_000)	4.6	4.3	7%
ALOS	4.5	4.5	0%
IP Footfall (_000)	220	216	2%
OP Footfall(_000)	2,443	2,411	1%

ARPP IP - Average Revenue per Patient (In-Patient)

ARPP OP - Average Revenue per Patient (Out-Patient)

ALOS - Average Length of Stay

IP Footfall: In-Patient Footfall

OP Footfall: Out-Patient Footfall

NH India Hospitals Business Highlights

( H in Million)

Particulars	FY 2024-25	FY 2023-24	Growth
Revenue from operations	43,051	38,858	10.8%
Other Income*	647	543	19.1%
Total Income	43,698	39,401	10.9%
Consumption of Pharma/consumables and Implants	9,974	9,139	9.1%
Employee Benefit Expenses & Professional fee to doctors	16,961	15,506	9.4%
Other operational and administrative Expenses	7,833	7,028	11.5%
EBITDA	8,930	7,728	15.6%
EBITDA MARGIN	20.7%	19.9%

*Excludes Dividend Income

Analysis of NH India Hospitals revenue growth and margin performance

Operating Revenue

The India hospitals has reported a 10.8% year-over-year (YoY) increase in revenue, marking a significant milestone in its financial performance. This growth is primarily attributed to three key factors:

1. Improved Payor Mix: A strategic shift towards a more favourable payor mix has played a pivotal role. The increased share of higher-paying private insurers/domestic walk ins and a reduction in lower-margin payors have enhanced overall revenue quality.

2. Enhanced Realisation Rates: Operational efficiencies and better pricing strategies have led to improved realisation per patient. This includes optimized billing practices, better case mix management, and a focus on high-value specialties.

3. Slight Increase in Patient Volumes: While volume growth has been modest on account of reduced flow of international patients, it has nonetheless contributed positively as despite significant fall in international patient volumes, the domestic business compensated for the same and a modest increase in the overall volumes was seen. Together, these factors reflect the hospitals continued focus on financial sustainability, quality care delivery, and strategic growth. The outlook remains positive as the institution builds on these gains through further innovation and operational excellence.

Consumption

Hospital consumption efficiency improved by 35 basis points (bps) year-over-year, reflecting enhanced cost control and resource optimization. This improvement is indicative of better inventory management, reduced wastage, and more efficient utilization of medical consumables.

The gain underscores ongoing efforts to streamline operations and drive margin enhancement through disciplined consumption practices.

Employee Benefit expenses and Professional fees to Doctors

In FY 2025, Employee Benefits Expenses and Professional Fees to Doctors accounted for 39.4% of revenue, an improvement from 39.9% in FY 2024, despite an increase in absolute costs from _15,506 Million to _16,961 Million.

This marginal improvement in cost ratio reflects operating leverage benefits, where revenue growth outpaced the increase in personnel-related expenses. The rise in absolute costs is primarily attributable to:

• Higher payout to doctors including investment in clinical talent.

• Annual appraisals and salary revisions for staff, in line with market trends and retention strategies.

The improved ratio highlights the hospitals ability to manage workforce costs efficiently while continuing to invest in talent and incentivize performance.

Other operational and administrative Expenses

Hospital Other Operational and Administrative Expenses increased from _7,028 Million (18.1% of operating revenue) in FY 2024 to _7,833 Million (18.2%) in FY25. This marginal increase in cost ratio, despite absolute growth, reflects continued operational discipline. Key contributors include:

1. Provision for Bad and Doubtful Debts

Increased by _209 Million, primarily due to delayed settlement of Government dues. These are temporary in nature with no risk to collectability.

2. Housekeeping Expenses

Rose from _802.6 million (2.1%) to _872.3 million (2.0%), driven by minimum wage increases across states.

3. Rentals

Increased from _1,019.3 Million (2.6%) to _1,040.3 Million (2.4%) excluding the impact of IND AS 116, due to incremental revenue share arrangements and annual escalations. Also, decrease in IND AS 116 Credits for lease arrangements have lead to increase in rentals by _ 115 Million.

4. Repairs and Maintenance

Grew from _1,447.7 million (3.73%) to _1,571.9 million (3.65%), reflecting ongoing infrastructure upkeep.

5. Business Promotion and Advertisement

Increased from _1,176.6 Million (3.0%) to _1,271.3 Million (3.0%), aligned with continued brand-building efforts.

6. CSR Expenses

Rose from _41.1 Million (0.1%) to _89.8 Million (0.2%), in line with increased statutory obligations.

7. Power and Fuel Costs

Increased from _761.4 Million (2.0%) to _811.8 Million (1.9%). Notably, ESG initiatives contributed to improved energy efficiency, helping contain cost ratios and our Green power for the year increased from 28% to 36% and resultant savings of _ 93 Million.

Despite the increase in absolute expenses, the hospital has effectively maintained cost ratios in line with industry norms, reflecting strong cost governance and strategic reinvestment in operations.

Other Income

Other Income registered a 19.1% year-over-year increase, primarily driven by returns from short-term investments. This uplift reflects improved treasury management and favourable market conditions, resulting in higher yields on surplus funds deployed in short-duration instruments.

The average yield generated from fund deployment was 7%, owing to prudent financial strategy and safe yet effective deployment of funds.

EBIDTA

The Company registered an EBITDA of _ 8,930 Mn (20.7% of Revenue) in 2024-25 for its India business against _ 7,728 Mn (19.9% of Revenue) in 2023-24, a growth of 15.6% YoY. We noticed growth momentum across all our hospitals.

NH Integrated Care

Narayana Healths Integrated Care business continued to build on the foundation laid in FY 2024. With 10 points of presence (clinics) across Bengaluru, the business has rapidly scaled operations since its inception in FY 2024.

Operating revenue grew from _220 Million in FY 2024 to _418 Million in FY 2025, reflecting increasing patient adoption and service expansion. The Insurance vertical was launched in FY 2025. It has covered 4,000 lives by March 2025. It is still in the early stages of its development. The business reported a burn of _645 Million in FY 2025, reflecting continued investments in infrastructure, talent, and technology to support long-term scalability and integrated care delivery. The Integrated Care model remains a strategic pillar for Narayana Health, aimed at delivering accessible, preventive, and continuous care. The early success and rapid scale-up reinforce confidence in its potential to become a significant value driver in the years ahead.

Health City Cayman Islands

Health City Cayman Islands delivered a robust performance in FY 2025, with operating revenue growing by 12.9%, from USD 123.9 Million in FY24 to USD 139.9 Million. This growth was primarily driven by the successful addition of the new facility at Camana Bay, which expanded service capacity and enhanced accessibility for patients.

Notably, the business maintained healthy operating margins, despite the Camana Bay facility being in its first year of operations—a period typically associated with elevated start-up costs and ramp-up investments. This reflects strong operational execution, disciplined cost management, and sustained demand across key specialties.

The performance underscores Health Citys strategic focus on geographic expansion and integrated care delivery, positioning it well for continued growth and value creation in the Caribbean region.

Expansion and Growth Strategy

Narayana Health has embarked on a significant capital expenditure program to enhance its healthcare delivery capabilities and build a robust foundation for future growth. An initial outlay of _3,000 Crore has already been announced, with additional investments currently under consideration.

The current phase of expansion focuses on strengthening existing hubs with a substantial presence, including Bangalore, Kolkata, and Raipur. These investments are aligned with the organizations long-term vision and will enable Narayana Health to broaden its reach, making high-quality, affordable healthcare more accessible to a larger section of society.

This growth-oriented strategy reaffirms Narayana Healths commitment to innovation, scalability, and its mission to democratize healthcare across India.

Capex Head	FY25	FY25	FY26
	(P)	(A)	(P)
Greenfield/ Inorganic	9,100	5,145	4,240
Brownfield/ Capacity Addition	1,350	159	159
Replacement/ Maintenance	3,237	2,903	2,865
Cayman	2,748	2800	457

Location

Location	Type	No. of Beds	Project Cost		Current Status
			(INR Mn)	Completion
HSR, Bangalore	Greenfield	215	4,900	FY28	Approvals and Plan Sanction in process.
Rajarhat, Kolkata	Greenfield	350	9,000	FY28	Sanctions, Approvals in place, Construction is under progress
Central Bangalore	Lease	220	1,600	FY28	Lease & Construction Agreement is executed, and approvals are in process
South Bangalore	Greenfield	350	8,000	FY29	Approvals and Plan Sanction in process.
Raipur	Expansion	300	5,400	FY28	Sanctions, Approvals in place, Construction is under progress.
South-West Bangalore	Lease	100	840	FY27	Operation & Management Agreement is executed, Construction is under progress.

In summary, Narayana Health delivered a resilient financial performance in FY 2024–25, with consolidated operating revenue growing by 12.1% and EBITDA rising 11.9%, maintaining a stable margin of 25%. While PAT remained flat due to higher finance costs and normalization of the effective tax rate, the underlying business fundamentals remained strong and cash generation continues to remain healthy. The India Hospital business saw a 10.8% revenue increase, driven by an improved payor mix, enhanced realization, and steady patient volumes, alongside disciplined cost management that expanded EBITDA margins. Health City Cayman Islands posted double-digit growth despite start-up costs at the new Camana Bay facility, and the Integrated Care segment scaled rapidly, reflecting strategic intent and early adoption. Supported by a _3,000 Crore capex plan across key geographies, Narayana Health is well-positioned to drive future growth, deepen access, and continue delivering affordable, high-quality care.

NH CONSOL Balance Sheet Review

		FY24-25			FY23-24
	NH India	HCCI Consol	NH Consol	NH India	HCCI Consol	NH Consol
	(INR	(US$	(INR	(INR	(US$	(INR
	Million)	Million)	Million)	Million)	Million)	Million)
Borrowings	14,859	85.0	22,134	9,338	61.2	14,437
Trade Payables	4,887	12.6	5,745	4,950	13.0	6,036
Gross Tangible Assets	37,380	168.9	51,670	26,869	83.3	33,813
Trade Receivables	3,136	29.9	5,555	2,358	22.3	4,219
Inventories	741	5.0	1,103	745	4.3	1,099

Borrowings NH India

Total Borrowings increased from INR 9,338 million as on March 31, 2024 to INR 14,859 million as on March 31, 2025 to fund increased capital expenditure (including greenfield projects) incurred during the year. Further, the Company has also borrowed INR 5,000 million by issue of NCD during the year.

HCCI

Total Borrowings increased from US$ 61.2 million as on March 31, 2024 to US$ 85.0 million as on March 31, 2025, due to increase in loan from First Caribbean International Bank (FCIB) for operating the new facility at Cayman Islands.

Trade Payables NH India

The trade payables have decreased from INR 4,950 million as on March 31, 2024 to INR 4,887 million as on March 31, 2025.

HCCI

The trade payables decreased from US$ 13 million as on March 31, 2024 to US$ 12.6 million as on March 31, 2025.

Assets

Gross Block NH India

Gross Block (tangible assets) increased from INR 26,869 million as on March 31, 2024 to INR 37,380 million as on March 31, 2025. We have made investments in land, medical equipment, new capabilities, and facility transformation across our network.

HCCI

Gross Block (tangible assets) increased from US$ 83.3 million as on March 31, 2024 to US$ 168.9 million as on March 31, 2025 which is due to asset capitalised of new facility in the Cayman Island during the year.

Trade Receivables NH India

The trade receivables (net of provision for doubtful receivables) increased from INR 2,358 million as on March 31, 2024 to INR 3,136 million as on March 31, 2025. There is increase in credit revenue, however collections have delayed from government players.

HCCI

The trade receivables (net of provision for doubtful receivables) increased from US$ 22.3 million as on March 31, 2024 to US$ 29.9 million as on March 31, 2025. This increase is in line with revenues growth.

Inventories NH India

The inventory value decreased from INR 745 million as on March 31, 2024 to INR 741 million as on March 31, 2025.

HCCI

The inventory increased from US$ 4.3 million as on March 31, 2024 to US$ 5 million as on March 31, 2025.

Material developments in Human Resources / Industrial Relations front

In FY 2024-25, we developed and launched the Consultant module on SAP Success Factors. With this, the entire Consultant (Doctor) life-cycle is now mapped to a fully automated HRMS completing the implementation of Success Factors. This brought in significant automation on all processes of clinician management from hiring, onboarding, training, compliance, payroll and compensation for all doctors associated with the organisation. The NH brand continues to carry a respectable goodwill in the field of Healthcare delivery and is one of the most sought-out workplaces for good talent. Being spread across geographical locations have helped us to leverage our expertise across the group entities. We leveraged on this equity of the brand in developing customised agenda to attract talent from the market, engage them meaningfully, and retain them effectively to create a bench of talent in the organisation.

The Company acknowledges the value every employee brings with him / her and continuously strives to nurture competence and potential. Trainings continue to be conducted for both Clinical and Non-Clinical areas, and also in technology, which has helped us raise the quality of performance and output. We have also launched employee well-being programmes to cater to the mental and physical health of each employee. As an organisation, we continue to strongly believe in being compliant with all statutes and labour-related Acts, we also ensure that our partners and vendor organisations who work as an integral part of service delivery at NH, are also following the same standards of compliance. This is closely monitored by a central team and also at each location where NH has its presence.

Training and Development

Our commitment at NH is to invest continuously in the holistic development of our workforce. Our training and development programs provide learning opportunities for our associates and help them upskill, stay up-to-date on the latest advancements in the constantly evolving world of healthcare, and become more effective in their roles. Associates can choose from a wide range of skill-building programs with varied methodologies like classroom training, virtual training, and digital learning, programs focusing on skill and competence enhancement. Our associates are encouraged to participate in external training and education programs that update them on the latest trends in industry and domain and enhance their skills to perform better in their roles.

To build a continuous learning culture at NH, EdSpark, our Digital Learning Management System (LMS), has evolved to cover a larger population with more training offerings being launched on the platform. Our cutting-edge learning platform makes it easy for our associates to access learning opportunities. Our associates are more engaged in learning as we offer a wide variety of knowledge repositories with a competence-based approach (Clinical, Non-Clinical, Functional, Business Skills, Compliance, e-books, Podcasts, etc), learners are self-directed, and all our courses are easy to access, i.e., available asynchronously, from multiple devices.

As a part of our Talent Development agenda, we invest in developing Senior and Middle-level Leadership, focusing on operational excellence, cross-functional skill development, and core leadership skill development. Training our Nursing and patient-facing associates on interpersonal & communication skills is the core L&D agenda. Designing impactful Clinical Programs in collaboration with our internal Doctors and Consultants to build clinical capability for enhanced patient outcomes has been the hallmark of last year performance. There are many policy-related mandatory training that all new hires must complete. The L&D Team continued its efforts to develop the skills necessary to continuously offer the best possible patient experience through the execution of Service Excellence Programs round the year thereby emphasizing our commitment to rendering compassionate care and providing high-quality medical care.

Recruitment

An increasingly competitive landscape has resulted in a hyper-competitive talent market scenario in healthcare. However, our records of talent retention have been regarded as best in industry, with a strong engagement model which enables us to retain key and critical talent in the company. One of the positive outcomes of our development agenda has led us to identify and fill more positions internally into key leadership position giving us the ability to retain and nurture talent within.

Compensation

Our compensation philosophy is designed to provide a competitive advantage in terms of better reputation, increased employee satisfaction and a stronger employer brand in the hospital industry. Our compensation strategies ensure a fair work life balance by providing competitive monetary and non-monetary benefits which are aligned to the market. As a part of the strategy, every year we benchmark salaries against market and implement a merit-based increment, which are core success of the hospital.

We have also launched aggressive incentive plans which are customised to the group of participants and linked directly to outcomes from each role.

Risk and Concerns

The Company (NHL) continues to invest in people, processes, and technology to ensure timely identification, continual monitoring, and mitigation of critical risks that could impact our operations. The formulation of a comprehensive risk strategy and robust mitigation actions are key differentiators in our journey toward sustainable excellence.

1. Cybersecurity and Data Privacy

Cyber risks remain a top concern in healthcare. NHL maintains heightened surveillance and invests in advanced cybersecurity infrastructure to protect digital assets. In line with the Digital Personal Data Protection Act (2023), we are proactively preparing for full compliance once the rules are notified.

2. Fire Safety and Emergency Preparedness

Fire risk is mitigated through infrastructure upgrades, fire-resistant materials, and regular training including mock drills. We foster a culture of vigilance and prevention across all facilities.

3. Environmental and Climate Risks

We recognize the growing impact of climate change and environmental regulations. NHL is enhancing energy efficiency, water conservation, and biomedical waste management practices to reduce environmental footprint and ensure regulatory compliance.

4. Business Continuity and Disaster Recovery

NHL is developing robust business continuity plans to ensure uninterrupted operations during pandemics, natural disasters, or IT outages. These include scenario planning, backup systems, and crisis communication protocols.

5. Supply Chain and Vendor Management

We are strengthening our supply chain resilience by diversifying vendors, monitoring critical supplies, and implementing risk-based vendor assessments to mitigate disruptions.

6. Reputational Risk

Patient experience, clinical outcomes, and public perception are central to our reputation. We monitor feedback channels, social media, and media coverage to proactively manage reputational risks.

7. Workforce and Talent Management

Attracting and retaining skilled healthcare professionals is vital. NHL invests in continuous training, employee well-being, and leadership development to mitigate workforce-related risks.

8. Technology Obsolescence

We continually assess and upgrade medical and IT infrastructure to avoid obsolescence and ensure delivery of cutting-edge care.

9. Expansion and Integration Risks

As NHL expands its footprint, we are mindful of risks related to integration of new facilities, cultural alignment, and operational consistency. Structured onboarding and governance frameworks are in place to manage these transitions.

10. Internal Controls and Governance

Our internal control systems are robust and commensurate with the scale of operations. The Audit, Risk, and Compliance Committee, supported by the Internal Audit Team, ensures continuous evaluation and improvement of risk management systems. A dynamic risk register is maintained and reviewed periodically.

Key Financial Ratio Analysis

Standalone

Ratios	FY 2024-25	FY 2023-24
(i) Debtors Turnover	16.35	17.81
(ii) Inventory Turnover	16.96	17.48
(iii) Interest Coverage Ratio	7.35	10.29
(iv) Current Ratio	1.50	1.17
(v) Debt Equity Ratio	0.73	0.55
(vi) Operating Profit Margin (%)	18.71%	18.24%
(vii) Net Profit Margin (%) or sector-specific equivalent ratios, as applicable.	12.01%	13.00%
(viii) Details of any change in Return on Net Worth	21.42%	25.66%

Consolidated

Ratios	FY 2024-25	FY 2023-24
(i) Debtors Turnover	11.22	11.76
(ii) Inventory Turnover	10.32	11.83
(iii) Interest Coverage Ratio	7.39	10.17
(iv) Current Ratio	2.18	1.75
(v) Debt Equity Ratio	0.67	0.56
(vi) Operating Profit Margin (%)	23.28%	22.96%
(vii) Net Profit Margin (%) or sector-specific equivalent ratios, as applicable.	14.40%	15.74%
(viii) Details of any change in Return on Net Worth	24.29%	31.47%