Nureca Ltd Management Discussions

For the Financial Year Ended 31 March 2025 Global and Domestic Economic Environment

The global economy in FY25 remained mixed, shaped by inflationary pressures, geopolitical uncertainties, and ongoing supply chain realignments.

Despite global headwinds, Indias economy continued to grow strongly, supported by robust domestic demand, digital acceleration, and increased health awareness post-pandemic.

The healthcare and wellness sector in particular saw rising adoption of preventive health products, diagnostics, and home healthcare solutions — trends that directly supported Nurecas business model.

Industry Structure and Developments

The Indian healthcare devices and wellness products market continues to expand rapidly, fueled by:

• Higher health consciousness among urban and semi-urban consumers.

• Growth of e-commerce, especially quick commerce platforms.

• Increasing focus on affordable, home-based monitoring solutions.

• Regulatory tightening aimed at improving medical device standards.

The addressable market for home healthcare devices is projected to grow at a double-digit CAGR over the next five years, presenting significant opportunities for agile, consumer-focused companies like Nureca.

Company Overview

Nureca Limited is a digitally native, consumer healthcare company with a leading presence in categories such as home diagnostics, wellness devices, and personal fitness equipment under brands like Dr Trust and Dr Physio The Companys differentiated strategy is built around four pillars:

1. Product Innovation

2. Omnichannel Distribution

3. Direct-to-Consumer (D2C) Excellence

4. In-House Manufacturing Capabilities

Financial Performance

In FY25, Nureca Limited delivered a strong operational recovery.

Revenue from Operations grew by 18.7% year-on-year to 109.15 crore, driven by deeper digital channel penetration, expanded quick commerce presence, and higher consumer demand across wellness categories. The launch of products on Blinkit, Swiggy Instamart, and Zepto significantly improved the Companys accessibility and brand visibility among urban consumers seeking urgent healthcare solutions.

Other Income rose by 20.4% to 12.66 crore, reflecting effective treasury management and better returns on surplus funds.

Total Income for the year stood at 121.81 crore, marking an 18.9% increase over FY24.

On the cost side, Total Expenses increased by 15.3% to 121.06 crore. The rise in expenses was mainly due to higher procurement costs aligned with business growth, expanded logistics to support faster deliveries, and strategic investments in marketing and brand building.

Crucially, operational improvements, particularly in inventory management, enabled the Company to contain cost growth relative to revenue growth.

As a result, Profit Before Tax (PBT) turned positive at 0.74 crore, compared to a loss of 2.54 crore in FY24, marking a major turnaround in financial performance.

This reflects the early success of Nurecas efforts to create a leaner, faster, and more consumer-responsive organization.

1. Strengthening Manufacturing Capabilities

FY25 was a transformational year for Nurecas manufacturing strategy.

Key achievements include:

• Approval of a New Manufacturing Facility:

Nureca Technologies Private Limited received industrial policy approval to establish a health and wellness equipment manufacturing plant at Village Sundra, SAS Nagar, Punjab.

• Global Certifications Secured:

o US FDA annual registration obtained, allowing the Company to manufacture and export medical devices to the United States.

o ISO 9001:2015 and ISO 13485:2016 certifications achieved for quality management systems.

o CDSCO approvals obtained for production and compliance within India.

• Manufactured Product Portfolio:

The new facility focuses on critical categories including BP monitors, nebulizers, massagers, thermometers, orthopedic cushions, heating pads, and breast pumps.

The expanded manufacturing footprint enhances supply chain security, margin expansion potential, and product customization capabilities.

Going forward, the Company intends to deepen investments in manufacturing automation, local sourcing, and process optimization to further boost competitiveness.

2. Quick Commerce Growth

Recognizing shifting consumer behavior toward faster delivery expectations, Nureca aggressively scaled its quick commerce strategy during FY25:

• Products launched and scaled on Blinkit, Swiggy Instamart, and Zepto platforms.

• Key urban markets achieved delivery times under 30 minutes for select products.

• Quick commerce contributed significantly to incremental sales, particularly for high-frequency health monitoring and wellness devices.

The Company plans to expand its quick commerce presence further by adding more SKUs, creating exclusive bundles, and launching dedicated marketing campaigns targeting instant purchase behaviors.

3. Strengthening Direct-to-Consumer (D2C) Capabilities

Nureca continued to invest in its own D2C platform, with improvements in website UX, digital marketing, influencer engagement, and customer service operations.

The D2C channel helps the Company build deeper consumer relationships, achieve better margins, and gather valuable first- party consumer insights.

Working Capital Management

Efficient inventory management remained a focus area.

The Company successfully reduced inventory carrying costs through improved demand forecasting and operational discipline, leading to better cash flow utilization.

The positive change in inventories during FY25 also reflects improved agility in responding to dynamic market demand.

• Manufacturing Expansion: Operationalize and scale production at the Punjab facility to support local and export markets.

• Quick Commerce Leadership: Deepen partnerships, expand product assortment, and optimize fulfillment models for quick commerce platforms.

• Innovation Pipeline: Launch new health, wellness, and fitness SKUs aligned to emerging consumer needs.

• Export Growth: Leverage US FDA certifications to expand into North American and Middle Eastern markets.

• Technology Investment: Invest in CRM, AI-driven personalization, and operational analytics for better decisionmaking.

Risk Management

The Company recognizes key risks including:

• Supply Chain Volatility: Fluctuations in raw material costs and availability.

• Regulatory Compliance: Maintaining certifications and compliance standards for domestic and international markets.

• Competitive Intensity: Managing price competition, particularly on quick commerce platforms.

• Macro Risks: Inflation, currency fluctuations, and global economic uncertainties.

Proactive risk identification and mitigation strategies are in place, with regular oversight by senior management.

Outlook

Nureca Limited enters FY26 with cautious optimism and clear strategic priorities.

Building on its strengthened manufacturing base, quick commerce leadership, and expanding digital capabilities, the Company aims to accelerate revenue growth, enhance profitability, and drive sustainable shareholder value creation.

The long-term fundamentals for preventive healthcare and wellness remain strong, and Nureca is well-positioned to capitalize on these trends through innovation, operational excellence, and customercentric execution.