Nureca Ltd Management Discussions

Industry structure and developments

The global home healthcare market continues to witness robust growth, driven by increasing demand for accessible, cost-effective, and high-quality care delivered outside traditional clinical settings. The market was valued at approximately USD 404.26 billion in 2025 and is projected to grow from USD 432.01 billion in 2026 to around USD 1,015.51 billion by 2034, registering a strong CAGR of 11.28% during the forecast period. North America remained the dominant region in 2025, accounting for over 42% of the global market share, supported by advanced healthcare infrastructure, favourable reimbursement frameworks, and high adoption of home-based care solutions, while Asia Pacific is expected to emerge as the fastest-growing region.

Home healthcare encompasses a broad spectrum of services provided in patient residences, including monitoring of acute and chronic conditions, intravenous and nutritional therapy, wound care, respiratory therapy, and post-operative care. These services offer a compelling value proposition by delivering quality care at a significantly lower cost compared to hospital stays or skilled nursing facilities, thereby supporting healthcare system efficiency and patient convenience.

Several structural factors continue to drive market expansion. Rising healthcare costs globally have accelerated the shift toward more economical care delivery models, with home healthcare emerging as a preferred alternative. Additionally, the growing ageing population is a key demand driver. According to the World Health Organization, the global population aged 60 years and above is expected to increase significantly by 2050, leading to higher incidence of chronic conditions and a greater need for long-term care services. The increasing prevalence of chronic diseases, including cardiovascular, neurological, and mobility-related disorders, further reinforces demand for continuous and home-based care.

The market remains highly fragmented, with a large number of players operating across services, devices, and digital health solutions. Industry participants are increasingly focusing on expanding their service offerings, strengthening distribution networks, and enhancing patient engagement through technology-enabled care models. Strategic collaborations, product innovation, and awareness initiatives are also contributing to greater adoption of home healthcare solutions. Furthermore, the rising number of surgical procedures globally is expected to support market growth, as post-acute care at home is increasingly recommended following hospital discharge. Expanding coverage by public and private insurers for home healthcare services is also playing a critical role in improving accessibility and driving adoption. Overall, the sector is well-positioned for sustained growth, supported by favourable demographics, cost efficiencies, and ongoing transformation in healthcare delivery models.

Opportunities and Threats

The home healthcare industry in India presents significant opportunities driven by low per capita healthcare spending compared to developed markets such as the United States, where expenditure levels are substantially higher. As India progresses toward its economic growth ambitions, rising incomes, increasing health awareness, and supportive policy frameworks are expected to accelerate demand for affordable and accessible home-based care. Government initiatives such as Ayushman Bharat and the National Health Mission further enhance the sector s potential by improving access, especially in rural areas. Additional opportunities lie in expanding services to underserved regions through cost-effective models, developing tiered pricing and insurance-linked offerings, leveraging digital platforms and mobile applications for remote care, and utilising data analytics to improve patient outcomes and operational efficiency.

However, the sector also faces notable threats, including low awareness and affordability constraints among large sections of the population, regulatory uncertainties, and uneven healthcare infrastructure across regions. Challenges such as data privacy concerns, limited digital literacy in rural areas, dependence on skilled healthcare professionals, and pricing pressures may impact scalability and profitability. Intense competition from organised and unorganised players, along with the need for continuous technological investment, further adds to the complexity of operating in this evolving industry.

Segment wise or product-wise performance

The continued expansion of smartphone penetration, increasing internet connectivity, and supportive government initiatives have significantly accelerated the growth of the home healthcare market in India. The COVID-19 pandemic acted as a major inflection point, leading to a sustained shift in consumer preference towards home-based care and driving higher adoption of medical devices for remote monitoring and disease management.

In the post-pandemic environment, the industry has undergone a structural transformation in consumer behaviour, with greater emphasis on preventive healthcare, early diagnosis, and continuous health tracking. This shift has also encouraged wider adoption of connected and digital health devices, along with improved patient engagement and self-care practices. As a result, the home healthcare devices market in India has witnessed robust growth, broadly aligned with the overall expansion of the home healthcare ecosystem. The market continues to offer a diverse range of products addressing multiple health needs. Some of the most in-demand categories currently include diagnostic monitoring devices, respiratory care equipment, mobility aids, and other essential home-use medical devices that support chronic disease management and preventive health monitoring.

Outlook

Nureca Limited enters the current financial year with measured optimism and a focused strategic outlook. Building on its strengthened manufacturing capabilities, established presence in quick commerce channels, and expanding digital ecosystem, the Company aims to drive sustainable revenue growth while progressively improving operational efficiency and profitability.

The underlying demand drivers for preventive healthcare, home diagnostics, and wellness solutions in India continue to remain strong, supported by rising health awareness, increasing digital adoption, and favourable demographic trends. The Company remains well-positioned to leverage these structural opportunities through continued product innovation, deeper channel penetration, and disciplined execution across operations. With a continued focus on customer-centricity and operational excellence, Nureca seeks to create long-term value for all stakeholders in a competitive and evolving healthcare landscape.

Risks and concerns

The Company acknowledges several key risks that may impact its operations and performance. These include supply chain volatility arising from fluctuations in the cost and availability of raw materials, as well as the need to ensure continuous compliance with evolving regulatory requirements across domestic and international markets.

The Company also operates in a highly competitive environment, particularly on digital and quick commerce platforms, where pricing pressures and margin challenges are significant. In addition, broader macroeconomic factors such as inflation, currency movements, and global economic uncertainties may influence demand patterns and cost structures. To address these risks, the Company has implemented proactive identification and mitigation frameworks, supported by ongoing monitoring and regular oversight by senior management to ensure resilience and business continuity.

Internal Control and Its Adequacy

A strong internal control culture remains a key priority for the Company. It has established comprehensive systems, controls, and policies across all major processes to ensure reliable financial reporting, timely evaluation of operational and strategic performance, adherence to applicable laws and regulations, safeguarding of assets, and efficient use of resources. These structured controls support effective compliance with the SEBI LODR Regulations.

The Company has also developed well-documented Standard Operating Procedures (SOPs) for various functions, which are periodically reviewed and updated in line with evolving business requirements. The Internal Auditors continuously evaluate the effectiveness of internal controls and monitor compliance with SOPs, providing the Audit Committee and the Board with independent and objective assurance on the adequacy of risk management, control, and governance processes. The scope and authority of the internal audit function are clearly defined and approved by the Audit Committee, and audits are conducted based on a risk-oriented annual plan developed in consultation with key stakeholders and past audit findings. Significant observations are regularly reviewed and tracked by the Audit Committee.

The Audit Committee also engages with the Company s Statutory and Internal Auditors to consider their views on the financial statements, including the financial reporting framework, compliance with accounting standards and policies, and the effectiveness of internal controls. Additionally, senior management periodically evaluates business processes, systems, and controls to identify opportunities for improvement, recommend value-enhancing measures, and ensure timely implementation of corrective actions. Regular management reviews of business segments and key functions help in continuously monitoring performance and strengthening control mechanisms.

Financial Performance Review Key highlights for the year

GMV for the year was at Rs. 2029.86 million as compared to Rs. 1,730 million in FY25, an increase of 17.51% EBITDA was Rs. 82.78 million as compared to Rs. 49 million in FY25, an increase of 68.94% EBITDA margin stood at Rs. 5.53 % as against 4.01% in FY25, margin increased by 37.91% PAT stood at Rs. 20.82 million; it was Rs. 8.46 million in FY25, increased by 146.10% Cash and Cash Equivalents stood at Rs. 14.61 million, while Investments were at Rs. 10.12 million & Investments in Bank deposits as Financials assets stood as 1038.88 Million as of March 31, 2026 a showcase of the strength in the Balance Sheet

Analysis of the profit & loss statement

1. Revenue

Revenue from operations increased by 34.02% from Rs. 1,096.61 million in FY25 to Rs. 1469.93 million in FY26. Other income decreased by 34.89% and accounted for a 5.22% share of the total revenue reflecting the Company s dependence on its core business operations.

2. Expenses

Total expenses increased by 24.29% from Rs. 1207.53 million in FY25 to Rs. 1500.81million in FY26 primarily due to increase in cost of goods sold, increase in employee cost and also during the year ended, the Company has recognised a fair value loss of ? 83.50 millions on investments which being material and non-operating in nature, has been separately disclosed under Other Expenses as per Ind AS 1 to facilitate better understanding of the Company s financial performance. The cost of goods sold (constitutes 63.06% of the Company s revenue from operations) increased by 36.26% from Rs. 680.12 million to Rs. 926.76 million owing to increase in operations. Other expenses (constitute 25.22% of the Company s revenue from operations) increased by 9.40% from Rs. 338.82 million to Rs. 370.69 million mainly due to, the Company has recognised a fair value loss of Rs. 83.50 millions on investments which being material and non-operating in nature, has been separately disclosed under Other Expenses as per Ind AS 1 to facilitate better understanding of the Company s financial performance during the year.

Analysis of the Balance Sheet

1. Source of Funds

Net worth decreased by 6.96% from Rs. 1942.85 million in March 31, 2025 to Rs. 1807.60 million in March 31, 2026 owing to Buyback of Shares of 458255 Nos at 330 per share leading to outflow of 151.22 Million and Buyback Expense of 5.46 and accrual of gain to Reserves by Rs. 21.55 million and loss on derecognition of investment in wholly owned subsidiary of 0.10 Million. The Capital Employed decreased by 7.69% from Rs. 1,975.77 million as on March 31, 2025 to Rs.1823.8 million as on March 31, 2026. Return on average capital employed, a measurement of returns derived from money invested in the business, increased from 1.04% in FY25 to 3.59% in FY26.

2. Application of funds

Cash and cash equivalents and other bank balances decreased from Rs. 462.53 million as of March 31, 2025 to Rs.414.19million as of March 31, 2026. The Investment portfolio decreased from Rs. 10.43 million as on March 31, 2025 to Rs. 10.12 million as on March 31, 2026 owing to sale of investments in mutual funds and purchase of bank fixed deposits. New Land was purchased worth 66.65 million during the year. Advance of 5.78 Million was done for Building construction.

3. Working capital requirements

Current assets decreased by Rs. 752.78 million from Rs. 1899.53 million in March 31, 2025 to Rs. 1146.76million in March 31, 2026. Inventories of the Company increased by Rs. 75.88 million from Rs. 399.18 million as on March 31, 2025 to Rs.475.06million as on March 31, 2026. Current liabilities of the Company increased by Rs. 3.78million from Rs. 123.99 million as on March 31, 2025 to Rs.137.77 million as on March 31, 2026.

4. Margins

The EBITDA margin of the Company has increased to 5.63% in FY26 from 4% in FY25. This rise was a result of increase in revenue. Net profit margins of the Company increased from 1.07% in FY 2024- 25 to 1.47% in FY 2025-26. Gross Margin of the Company decreased from 38% in FY25 to 37% in FY26 due to additional discounting in events.

Financial performance concerning operational performance The Company s revenue during FY25-26 stood at Rs. 1469.93 million against Rs. 1,096.61 million in the previous year, recording an increase of 34.01%.

Significant changes in key financial ratios

Return on Net worth (PAT / Net Worth)

Material developments in Human Resources / Industrial Relations front, including number of people employed.

Nureca s human resource philosophy focuses on empowering employees to enhance their productivity, efficiency, and overall contribution to the organisation. The Company is committed to attracting top talent across diverse functions and fostering their development to support both professional and personal growth. It provides a safe, inclusive, and growth-oriented work environment that encourages individual advancement and well-being.

The Company actively builds employee capabilities and competencies to align with shared organisational goals. Its people development initiatives strengthen human capital and support sustained business growth. Nureca also emphasises retaining and leveraging its knowledge base by involving employees in strategic initiatives, thereby deepening their engagement and preparing them for future leadership roles.

As on 31 March 2026, the Company had a total of 154 employees on its payroll.