Paras Healthcare Ltd Management Discussions

For information in relation to our business, see "Our Business?" on page 220.

Our results of operations and financial condition are affected by a number of important factors including:

Our results of operations depend significantly on our ability to manage our network of hospitals. We operate eight hospitals under the "Paras Health" brand across five states and one union territory - comprising hospitals in Gurugram and Panchkula in Haryana; Patna and Darbhanga in Bihar; Kanpur in Uttar Pradesh; Udaipur in Rajasthan; Ranchi in Jharkhand; and Srinagar in the union territory of Jammu and Kashmir.

Our core focus is on providing high-quality tertiary and quaternary medical care that is accessible to a large number of patients. We have established hospitals in several underserved regions and have increased the scale of our operations across such locations. While we have historically been dependent on our Mature Hospitals in Gurugram, Patna, Darbhanga and Panchkula (which have been operational for a period over seven years) for a significant portion of our revenues, we are also focusing on scaling operations at our Emerging Hospitals in Ranchi and Udaipur (which have been operational for a period between four to seven years) and our New Hospitals in Srinagar and Kanpur (which have been operational for a period less than four years). Our Emerging Hospitals and New Hospitals are in the early stages of ramp-up and represent key growth drivers within our network.

We evaluate the performance of our hospital network with a focus on operating sustainability, cash flow generation and balance sheet strength, rather than short-term fluctuations in reported profitability. Our financial performance reflects the combined impact of the steady operating performance of our Mature Hospitals and the phased ramp-up of capacity at our emerging and New Hospitals. The following table sets forth details of the revenue from operations and Operating EBITDA generated from our hospitals on the basis of their maturity profile:

Historically, our Mature Hospitals have contributed a substantial portion of our revenue from operations and have demonstrated steady growth, driven primarily by the introduction of new clinical programs, tariff optimisation and improved bed utilisation. For instance, during Fiscal 2025, we introduced liver and bone marrow transplant programs at our Gurugram Hospital, so as to boost patient volumes and revenues. On the other hand, the financial performance of our emerging and New Hospitals is primarily driven by a progressive ramp-up of operations, addition of new specialties, empanelment under government and insurance schemes, increasing occupancy levels and enhanced outreach within their respective catchment areas. In this context, we have expanded specialty offerings at emerging and New Hospitals, such as the introduction of comprehensive oncology services at our hospitals in Ranchi and Udaipur through the installation of LINAC facilities. In addition, growth at our hospitals in Srinagar and Kanpur has been supported by empanelment under CGHS, ECHS and insurance schemes, which has resulted in incremental revenue in addition to revenue from self-pay patients.

Our overall EBITDA performance has improved primarily due to operating leverage at our Mature Hospitals, better absorption of fixed costs at our Emerging Hospitals as occupancy levels increased, and a reduction in EBITDA losses at our New Hospitals. The increase in EBITDA in Fiscal 2026 reflects structural improvements in operating performance. We do not pursue margin enhancement at the expense of clinical outcomes or long-term sustainability. We monitor revenue trends on a same-hospital basis to assess underlying operating performance, and exclude the impact of newly commissioned hospitals when evaluating organic growth. In evaluating EBITDA performance, we focus on the quality of EBITDA, including consistency of performance, cash conversion and resilience across operating cycles. We do not rely on one-time measures or non-recurring items to drive operating performance.

Further, our performance is also influenced by our expansion plans. We have a committed pipeline for hospital expansion in Gurugram, Haryana and in Ludhiana, Punjab, which has been approved by our Board of Directors. In Gurugram, we are expanding our footprint through a long-term lease arrangement and intend to commence operations in Fiscal 2027 with 300 beds. We are also setting up our first hospital in Ludhiana through a long-term lease arrangement, with an expected capacity of 500 beds, which is proposed to commence operations in Fiscal 2028. These expansion plans are expected to increase our bed capacity from 2,211 beds as of March 31, 2026 to 3,011 beds by March 31, 2028. Under these arrangements, the civil structure of the hospitals is constructed by our partners, while our investments are primarily directed towards interior fit-outs, finishing works, selected construction elements and medical equipment. We typically put in place substantial infrastructure and equipment prior to commencement of operations, with operating costs scaling progressively as patient volumes ramp up. The ramp-up period for new hospitals varies based on market characteristics, empanelment under insurance and government schemes, specialty mix and staffing requirements. A new hospital generally requires 12 months to 24 months to achieve optimal utilisation levels and breakeven at EBITDA level, with operating performance improving thereafter.

As our hospital network scales, we benefit from economies of scale through centralised procurement of medical supplies, shared administrative functions and optimised workforce utilisation. This supports cost efficiencies, operational standardisation and the expansion of specialty offerings across our hospitals.

Our results of operations depend on the number of patients that utilize our services across our hospitals, as well as on the utilization rates of the healthcare services that we provide to in-patients and out-patients, including hospitalizations, surgeries, emergency services, consultations, diagnostics including radiology and pathology, and sale of pharmacy products. Patient volumes and utilization levels are key drivers of our revenue and operating performance, and are affected by several factors including demand from local communities for healthcare services, quality and breadth of services provided, reputation of our doctors, advancements in medical technology, the location of our hospitals, seasonal illness cycles and competition from other healthcare providers.

The table below provides certain details of our in-patients and out-patients details during the last three Fiscals:

Our ARPOB increased from Fiscal 2024 to Fiscal 2025 and remained broadly stable in Fiscal 2026, primarily due to the payor mix across our hospitals, which included a higher contribution from patients covered under government schemes and insurance providers. Our Mature Hospitals have demonstrated stable and increasing occupancy levels and ARPOB, notwithstanding competitive intensity in their respective markets. For information on the occupancy rates and ARPOB of each of our hospitals in the last three Fiscals, see "Our Business - Our Hospitals" on page 234. We believe that our Mature Hospitals have headroom for growth, as certain of them currently have a relatively higher proportion of patients covered under government schemes compared to our Emerging Hospitals and New Hospitals. We continue to focus on increasing the proportion of patients covered under private insurance and self-pay segments, which we believe may result in better realizations.

ALOS is an indicator of operational efficiency, as a lower average length of stay contributes to improved throughput and cost efficiency per discharge. We have optimized ALOS across our hospitals through various measures, including the recruitment and retention of experienced clinicians, maintenance of robust operating infrastructure, standardized clinical and discharge protocols, and improved bed management processes. We continue to focus on optimizing ALOS through enhanced coordination across clinical teams, early diagnostic and treatment protocols, technology-enabled bed management and the continued hiring of trained and experienced clinicians.

The mix of healthcare services provided by us also influences our revenues, as more complex procedures typically generate better realizations. Our key departments include CONGOR specialties, and revenues from these specialties accounted for 74.70%, 71.92% and 72.34% of our revenue from operations in Fiscals 2026, 2025 and 2024, respectively. We derive revenue from a diversified portfolio of specialties, which supports growth while reducing concentration risks. Further, no single specialty accounted for more than 25% of our total revenue from operations during the last three Fiscals. For details of our revenue by specialty across our hospitals in the last three Fiscals, see "Our Business - Our Competitive Strengths - Strong Focus on Tertiary and Quaternary Care with High Contribution from CONGOR Specialties" on page 226.

Our hospital occupancy levels and revenue generated from occupied beds are also influenced by factors such as the quality of clinical care delivered, the number and quality of clinicians, retention of medical professionals, breadth of services offered, deployment of medical technology and clinical protocols, and patient convenience. In addition, utilization levels are also affected by demographic factors, connectivity with surrounding cities and towns and local socio-economic conditions.

Our ability to attract and retain medical professionals is critical to our operations, and we expect professional fees paid to doctors and consultants to increase with growth in patient volumes. We have prioritized attracting and retaining our clinicians and other professionals who bring expertise and dedication to patient care. As of March 31, 2026, we had a team of 1,011 doctors and 1,665 nurses.

The table below provides details of our employee benefits expense and retainers and consultants fee in the last three Fiscals:

As we expand our hospital network, we will continue to focus on attracting well-qualified and experienced clinicians to support the quality of healthcare services delivered to patients. While the engagement and retention of doctors and consultants may result in higher employee benefits expense and retainers and consultants fees in the short term, we believe that building and maintaining a strong clinical team is essential to support long-term revenue growth and sustainable operating performance.

We incur substantial expenditure towards the purchase of medical consumables and drugs, which constitutes a significant portion of our operating expenses. In Fiscals 2026, 2025 and 2024, our purchases of stock-intrade were Rs. 4,347.83 million, Rs. 3,361.29 million and Rs. 3,048.95 million or 26.69%, 25.58%, 26.49% of our total income, respectively. These costs are affected by various factors, including our ability to negotiate with our vendors and the economies of scale available to us as we continue to expand our network.

We source our equipment and supplies from international and local third party suppliers under various arrangements. Our suppliers are selected based on factors such as patient demand, quality, price, profitability, cost effectiveness, supplier history, service levels and delivery capability, which our supply chain management team reviews on a regular basis in consultation with the relevant medical specialities. The purchase of supplies is monitored and conducted by our supply chain management team, who is responsible for establishing a strategic and unified framework for procurement and distribution to our hospitals on a centralized basis, while empowering each hospital to undertake emergent local purchases, where required.

As we grow our operations, our purchases of stock-in-trade are expected to increase in line with growth in patient volumes and specialties offered by us. However, we will continue to optimize the cost of stock-in-trade by leveraging our hospital network and economics of scale to manage procurement costs, while continuing to focus on maintaining clinical quality, patient safety and availability of critical supplies.

We continuously invest in capital expenditure to support the delivery of healthcare services across our hospital network and to maintain the quality, reliability and efficiency of our clinical infrastructure. Capital expenditure is undertaken primarily for the maintenance and upgradation of existing hospitals, completion of ongoing hospital projects, and selective capacity enhancement within existing hospitals, based on demand assessment and operational requirements. Capital allocation decisions are guided by defined return thresholds, balance sheet considerations and expected time-to-maturity of investments. We evaluate proposed expenditures in the context of operating sustainability, clinical requirements and prudent capital deployment.

A portion of our capital expenditure relates to medical equipment and information technology infrastructure, which is critical to maintaining clinical standards, supporting specialties and complying with regulatory and accreditation requirements. The table below provides details of our capital expenses incurred on upgrading and operating our information technology platform and equipment in the years indicated:

The nature, timing and quantum of our capital expenditure, including investments in new medical equipment and technology upgrades, are aligned with our growth strategy and financial planning. We seek to manage such expenditure through the prioritisation of critical upgrades, phased implementation where feasible, and selective deployment across locations, while balancing clinical requirements, operational efficiency and financial discipline.

The healthcare industry is extensively regulated by the central government and state governments, primarily to ensure that quality healthcare services are accessible to the public at affordable rates. Accordingly, we are subject to government regulations applicable to healthcare schemes and PSUs under which patients are treated at our hospitals, including regulations relating to pricing, empanelment, licensing and accreditation, which may influence our revenues and operating performance.

In the past, our results of operations have been affected by certain regulatory interventions, including revisions to prices under CGHS, adoption of CGHS pricing by various state governments and PSUs, price cap on implants imposed by the National Pharmaceutical Pricing Authority, capping of prices of certain blood bank services and fixed price for treatments by state governments during the COVID-19 pandemic. Recently, revisions in package rates under the CGHS and the ECHS were implemented, which resulted in improved realizations from patients covered under these schemes. Further, the central government reduced GST rates on certain medical drugs and consumables, which has led to a reduction in our procurement costs.

In addition, we are also required to comply with various licensing, empanelment and accreditation requirements applicable to our hospitals as well as our healthcare professionals. We have established internal processes and systems to monitor regulatory compliance, accreditation requirements (including NABH and other applicable standards) and patient safety protocols across our hospital network.

The restated consolidated financial information of our Company together with our Subsidiaries (the "Group") comprise the restated consolidated statement of assets and liabilities as at March 31, 2026, March 31, 2025 and March 31, 2024, the restated consolidated statements of profit and loss (including other comprehensive income), the restated consolidated statement of cash flows, the restated consolidated statement of changes in equity for the years ended March 31, 2026, March 31, 2025 and March 31, 2024, and notes to the restated consolidated financial information, including material accounting policy and other explanatory information (collectively, the "Restated Consolidated Financial Information")

The Restated Consolidated Financial Information have been compiled from the audited consolidated Ind AS financial statements of the Group as at and for the years ended March 31, 2026, March 31, 2025 and March 31, 2024 prepared in accordance with the Indian Accounting Standards (referred to as "Ind AS") as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting Standards) Rules 2015, as amended, and other accounting principles generally accepted in India.

Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and accumulated impairment losses, if any. Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated cost of dismantling and removing the item and restoring the site on which it is located.

The cost of a self-constructed item of property, plant and equipment comprises the cost of materials and direct labour, any other costs directly attributable to bringing the item to working condition for its intended use, and estimated costs of dismantling and removing the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. All repair and maintenance costs are recognised in the restated consolidated statement of profit and loss as incurred.

Gains or losses arising from the retirement or disposal of a property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the restated consolidated statement of profit and loss.

Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual values over their useful lives mentioned in Schedule II to the Companies Act, 2013, using the written down value in the restated consolidated statement of profit and loss except for leasehold improvements and temporary structure (buildings).

Freehold land is not depreciated.

The leasehold improvements are depreciated using straight line method over the primary period of the lease or useful life of the assets (generally 10 years), whichever is lower.

Depreciation on additions (disposals) is provided on a pro-rata basis i.e. from (upto) the date on which asset is ready for use (disposed of).

The cost of property, plant and equipment not ready for their intended use is recorded as capital work -inprogress before such date. Cost of construction that relate directly to specific property, plant and equipment and that are attributable to construction activity in general and can be allocated to specific property, plant and equipment are included in capital work-in-progress.

Expenses against the assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses.

Intangible assets are stated at acquisition cost, net of accumulated amortisation and accumulated impairment losses, if any. The cost of such assets includes purchase price, licensee fee, import duties and other taxes and any directly attributable expenditure to bring the assets to their working condition for intended use.

Intangible assets are amortised at 40% per annum on written down value of the assets. The amortisation period, residual value and the amortisation method are reviewed at least at each Restated Consolidated Statement of Assets and Liabilities date. If the expected useful life of the asset is significantly different from previous estimates, the amortisation period is changed accordingly.

Gains or losses arising from the retirement or disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognised as income or expense in the restated consolidated statement of profit and loss.

Inventories of medical drugs, stores and consumables are measured at the lower of cost and net realisable value. The cost of inventories includes expenditure incurred in acquiring the inventories and other costs in bringing them to their present condition and location. The cost of the items constituting the inventory is computed on FIFO basis.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated selling expenses.

The comparison of cost and net realisable value is made on an item-by-item basis.

Provisions/write-downs for obsolescence, damaged and slow-moving inventory are made, wherever necessary and inventory is stated net of such provisions/write-downs.

Cash and cash equivalents include cash in hand, demand deposits with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration?.

The Group enters into leasing arrangements for various assets. The assessment of the lease is based on several factors, including, but not limited to, transfer of ownership of leased asset at end of lease term, lessee?s option to extend/purchase etc.

At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the Restated Consolidated Statement of Assets and Liabilities. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the asset at the end of the lease (if any), and any lease payments made in advance of the lease commencement date (net of any incentives received).

The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group also assesses the right-of-use asset for impairment when such indicators exist.

At lease commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease if that rate is readily available or the Group?s incremental borrowing rate. Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed payments) and variable payments based on an index or rate. Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is re-measured to reflect any reassessment or modification, or if there are changes in in-substance fixed payments. When the lease liability is re-measured, the corresponding adjustment is reflected in the right- of-use asset.

The Group has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in Restated Consolidated Statement of Profit and Loss on a straight-line basis over the lease term.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss ("FVTPL"), transaction costs that are directly attributable to its acquisition or issue.

Trade receivables and debt securities are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Group becomes a party to the contractual provisions of the instrument.

On Initial recognition, a financial asset is classified as measured at:

• Amortised cost

• Fair value on other comprehensive income ("FVOCI") - debt investment;

• FVOCI - equity investment; or

• FVTPL

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Group changes its business model for managing financial assets.

A financial asset is measured at the amortised cost if both of the following conditions are met and is not designated as at FVTPL:

• the financial asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest ("SPPI") on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment?s fair value in OCI (designated as FVOCI - equity investment). This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

The Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed, and information is provided to management. The information considered includes:

a) the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management?s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets;

b) how the performance of the portfolio is evaluated and reported to the Group?s management;

c) the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

d) how managers of the business are compensated - e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

e) the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Group?s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

For the purposes of this assessment, ‘principal? is defined as the fair value of the financial asset on initial recognition. ‘Interest? is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers:

a) contingent events that would change the amount or timing of cash flows;

b) terms that may adjust the contractual coupon rate, including variable interest rate features;

c) prepayment and extension feature; and

d) terms that limit the Group?s claim to cash flows from specified assets (e.g. non- recourse features)

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in restated consolidated statement of profit and loss.

These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in restated consolidated statement of profit and loss. Any gain or loss on derecognition is recognised in restated consolidated statement of profit and loss.

These assets are subsequently measured at fair value. Interest income under the effective interest method, foreign exchange gains and losses and impairment are recognised in restated consolidated statement of profit and loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to restated consolidated statement of profit and loss.

These assets are subsequently measured at fair value. Dividends are recognised as income in restated consolidated statement of profit and loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to restated consolidated statement of profit and loss.

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in restated consolidated statement of profit and loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in restated consolidated statement of profit and loss. Any gain or loss on derecognition is also recognised in restated consolidated statement of profit and loss. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Group enters into transactions whereby it transfers assets recognised on its Restated Consolidated Statement of Assets and Liabilities but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.

Where the Group has neither transferred a financial asset nor retains substantially all risks and rewards of ownership of the financial asset, the financial asset is derecognised if the Group has not retained control of the financial asset. Where the Group retains control of the financial asset, the asset is continued to be recognised to the extent of continuing involvement in the financial asset.

The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expire. The Group also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in restated consolidated statement of profit and loss.

Financial assets and financial liabilities are offset, and the net amount presented in the Restated Consolidated Statement of Assets and Liabilities when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

Financial instrument which requires the Group to deliver cash or another financial asset, or otherwise to settle it in such a way that it would be a financial liability, and where Group does not have an unconditional right to avoid such obligation, are classified as financial liability. Such classification is in substance of the contractual arrangement and as per the definitions of the financial liability. Such financial instruments are recognized as financial liability at the full amount, without taking into account the timing of the contingent event. This is as per the rules of contingent settlement provisions. The equity component for such financial instruments will be nil.

Initial recognition of such financial instrument as financial liability will be at fair value and subsequent changes in fair value is recognized in profit or loss (i.e. FVTPL).

The Group recognizes loss allowance using the expected credit loss ("ECL") model for the financial assets which are not fair valued through profit or loss. Loss allowance for trade receivables with no significant financing component is measured at an amount equal to lifetime ECL. For all financial assets with contractual cash flows other than trade receivable, ECLs are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The amount of ECL (or reversal) that is required to adjust the loss allowance at the reporting date is recognised as an impairment gain or loss in the Restated Consolidated Statement of Profit and Loss.

In respect of trade receivables, the Group applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

In respect of its other financial assets, the Group assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Group measures the loss allowance at an amount equal to 12-month expected credit losses, else at an amount equal to the lifetime expected credit losses.

When making this assessment, the Group uses the change in the risk of a default occurring over the expected life of the financial asset. To make that assessment, the Group compares the risk of a default occurring on the financial asset as at the Restated Consolidated Statement of Assets and Liabilities date with the risk of a default occurring on the financial asset as at the date of initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition. The Group assumes that the credit risk on a financial asset has not increased significantly since initial recognition if the financial asset is determined to have low credit risk at the Restated Consolidated Statement of Assets and Liabilities date.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets.

The Group?s non-financial assets, other than inventories and deferred tax assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset?s recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cashgenerating units ("CGUs"). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs.

The recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU (or the asset).

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the restated consolidated statement of profit and loss. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset?s carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortisation, if no impairment loss had been recognised.

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the Restated Consolidated Statement of Assets and Liabilities date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. Expected future operating losses are not provided for.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Group or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Group does not recognize a contingent liability but discloses its existence in the Restated Consolidated Financial Information.

Contingent assets are not recognised but disclosed in the Restated Consolidated Financial Information when an inflow of economic benefits is probable.

Share issue expenses are adjusted against the Securities Premium Account as permissible under Section 52 of the Companies Act, 2013, to the extent any balance is available for utilisation in the securities premium account. Share issue expenses in excess of the balance in the securities premium account is expensed in the Restated Consolidated Statement of Profit and Loss.

Revenue is recognized upon transfer of control of promised products or services to customers/patients in an amount that reflects the consideration the Group expects to receive in exchange for those products or services. Revenue is measured at transaction price net of rebates, discounts and taxes. A receivable is recognised by the Group when the control is transferred as this is the case of point in time recognition where consideration is unconditional because only the passage of time is required. When either party to a contract has performed, an entity shall present the contract in the Restated Consolidated Statement of Assets and Liabilities as a contract asset or a contract liability, depending on the relationship between the entity?s performance and the p ayment. The Group applies the revenue recognition criteria to each component of the revenue transaction as set out below.

Revenue from healthcare services is recognized as and when related services are rendered and include services for patients undergoing treatment and pending for discharge, which is shown as unbilled revenue under other current financial assets. The Group considers the terms of the contract and its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for the services, excluding amounts collected on behalf of third parties (for example, indirect taxes).

Revenue from pharmacy products is recognized as and when the control of products is transferred to the customer. The Group considers its customary business practices to determine the transaction price. The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for the products, excluding amounts collected on behalf of third parties (for example, indirect taxes).

Contract assets are recognised when there is excess of revenue earned over billings on contracts. Contract assets are classified as unbilled receivables (only act of invoicing is pending) when there is unconditional right to receive cash, and only passage of time is required, as per contractual terms.

Unearned and deferred revenue ("contract liability") is recognised when there is billings in excess of revenues.

Interest income is recognised using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. When calculating the effective interest rate, the Group estimates the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but does not consider the expected credit losses.

Sponsorship income is recognized when the underlying obligations are completed as per contractual terms.

The Group?s obligation towards various employee benefits has been recognised as follows:

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid e.g., wages and salaries, shortterm cash bonus, etc., if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the amount of obligation can be estimated reliably.

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts.

Provident fund, employee?s state insurance scheme and labour welfare fund are defined contribution plans. These contributions are recognised as an expense in the Restated Consolidated Statement of Profit and Loss during the period in which the employee renders the related services.

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.

The Group has defined benefit plan, Gratuity.

The Group?s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets, if any.

The calculation of defined benefit obligation is performed annually by a qualified actuary using the projected unit credit method.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, are recognised in other comprehensive income ("OCI"). The Group determines the net interest expense/(income) on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the net defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in restated consolidated statement of profit and loss.

The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on government securities as at the Restated Consolidated Statement of Assets and Liabilities date.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service (‘past service cost? or ‘past service gain?) or the gain or loss on curtailment is recognised immediately in restated consolidated statement of profit and loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs.

The employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service periods or receive cash compensation on termination of employment. Since the compensated absences do not fall due wholly within twelve months after the end of the period in which the employees render the related service and are also not expected to be utilized wholly within twelve months after the end of such period, the benefit is classified as a long-term employee benefit. The Group records an obligation for such compensated absences in the period in which the employee renders the services that increase this entitlement. The obligation is measured on the basis of independent actuarial valuation using the Projected Unit Credit Method. Re-measurement as a result of experience adjustments and changes in actuarial assumptions are recognised in the statement of profit and loss in the year in which such gains or losses arise.

Selected employees of the Group receive remuneration in the form of equity-settled share-based payment instruments for rendering services over a defined vesting period.

These instruments generally vest in a graded manner over the vesting period. Accordingly, the fair value determined at the grant date is recognised as an expense over the respective vesting periods of each tranche on an accelerated amortisation basis. The total compensation expense is based on the Group?s estimate of the number of instruments expected to vest.

Income tax comprises current and deferred tax. It is recognised in restated consolidated statement of profit and loss except to the extent that it relates to an item recognised directly in equity or in other comprehensive income.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to set off the recognised amounts, and it is intended to realise the asset and settle the liability on a net basis or simultaneously.

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. Our Company?s Managing Director assesses the financial performance and position of the Group, and makes strategic decision and has been identified as the chief operating decision maker. The Group is engaged in the business of providing healthcare services, which has been defined as one business segment. Accordingly, the Groups activities/business is reviewed regularly by the Holding Companys Managing Director from an overall business perspective, rather than reviewing its services as individual standalone components.

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

Business combinations, other than through common control transactions, are accounted for using the purchase (acquisition) method. The cost of an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair value on the date of acquisition.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the re-assessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in Other Comprehensive Income (OCI) and accumulated in other equity as capital reserve. However, if there is no clear evidence of bargain purchase, the entity recognises the gain directly in other equity as capital reserve, without routing the same through OCI. Consideration transferred includes the fair values of the assets transferred, liabilities incurred by the Group to the previous owners of the acquiree, and equity interests issued by the Group.

Consideration transferred does not include amounts related to the settlement of pre-existing relationships. Any goodwill that arises on account of such business combination is tested annually for impairment.

A contingent liability of the acquiree is assumed in a business combination only if such a liability represents a present obligation and arises from a past event, and its fair value can be measured reliably. On an acquisition- by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interest?s proportionate share of the acquiree?s identifiable net assets.

Transaction costs that the Group incurs in connection with a business combination, such as stamp duty for title transfer in the name of the Group, finder?s fees, legal fees, due diligence fees and other professional and consulting fees, are expensed as incurred.

There have been no changes in our accounting policies during Fiscals 2026, 2025 and 2024.

EBITDA, EBITDA Margin, Operating EBITDA, Operating EBITDA Margin, PAT Margin, Return on Equity, EBIT, Adjusted EBIT, Capital Employed, Adjusted Capital Employed, Return on Capital Employed, Adjusted Return on Capital Employed, Net Worth, Return on Net Worth, Debt to Equity and Adjusted Debt to Equity (together, "Non-GAAP Measures"), presented in this Draft Red Herring Prospectus is a supplemental measure of our performance and liquidity that is not required by, or presented in accordance with, Ind AS, Indian GAAP, IFRS, U.S. GAAP or any other GAAP. Further, these Non-GAAP Measures are not a measurement of our financial performance or liquidity under Ind AS, Indian GAAP, IFRS, U.S. GAAP or any other GAAP and should not be considered in isolation or construed as an alternative to cash flows, profit for the years or any other measure of financial performance or as an indicator of our operating performance, liquidity, profitability or cash flows generated by operating, investing or financing activities derived in accordance with Ind AS, Indian GAAP, IFRS, U.S. GAAP or any other GAAP. In addition, these Non-GAAP Measures are not standardized terms, hence a direct comparison of these Non-GAAP Measures between companies may not be possible. Other companies may calculate these Non-GAAP Measures differently from us, limiting its usefulness as a comparative measure. Although such Non-GAAP Measures are not a measure of performance calculated in accordance with applicable accounting standards, our Company?s management believes that they are useful to an investor in evaluating us as they are widely used measures to evaluate a company?s operating performance.

The table below provides a reconciliation of EBITDA and EBITDA Margin. EBITDA is calculated as profit

or loss before tax plus finance costs and depreciation and amortization expense. EBITDA Margin is calculated as EBITDA divided by total income.

The table below provides a reconciliation of Operating EBITDA and Operating EBITDA Margin. Operating EBITDA is calculated as profit or loss before tax plus finance costs and depreciation and amortization expense, less fair value gain on financial instruments and other income. Operating EBITDA Margin is calculated as Operating EBITDA divided by revenue from operations.

The table below provides a reconciliation of PAT Margin. PAT Margin is calculated as profit or loss for the year divided by total income.

The table below provides a reconciliation of Return on Equity:

The table below provides a reconciliation of EBIT, Capital Employed and Return on Capital Employed:

The table below provides a reconciliation of Adjusted EBIT, Adjusted Capital Employed and Adjusted Return on Capital Employed:

The table below provides a reconciliation of Net Worth and Return on Net Worth:

The table below provides a reconciliation of Debt to Equity and Adjusted Debt to Equity:

Our total income comprises:

(i) revenue from operations; and

(ii) other income.

Revenue from operations comprises:

(i) revenue from sale of services - Healthcare;

(ii) Revenue from sale of product - Pharmacy; and

(iii) other operating revenues.

(i) Revenue from sale of services - Healthcare includes Operating income - in patient department; and Operating income - out patient department.

(ii) Revenue from sale of product - Pharmacy includes revenue generated from sale of products at our pharmacies located in each of our hospitals.

(iii) Other operating revenues include sponsorship income from various customers for carrying out activities/events as per agreed terms, and scrap sales.

Other income includes

(i) interest income from banks and income tax refund;

(ii) gain on sale of property, plant and equipment (net);

(iii) other non-operating income from

(a) rental income;

(b) unwinding of discount on financial assets;

(c) gain on termination of lease;

(d) foreign exchange fluctuation gain (net);

(e) liabilities no longer required written back; and

(f) miscellaneous income.

Our expenses comprise

(i) purchase of stock-in-trade;

(ii) changes in inventories of stock-in-trade;

(iii) employee benefit expense;

(iv) finance costs;

(v) depreciation and amortization expenses;

(vi) retainers and consultants fee;

(vii) fair value changes on financial instruments; and

(viii) other expenses.

Purchases of stock-in-trade comprises of purchases of pharmacy, medical and laboratory consumables related to in-patient services and pharmacy and medical consumables related to sale of pharmacy products to outpatient and other items necessary for the provision of healthcare services during the relevant Fiscal.

Changes in inventories of stock-in-trade refers to the difference of inventories as at the end of the year and inventories as at the beginning of the year.

Employee benefits expense primarily comprises

(i) salaries and wages;

(ii) contribution to provident fund and other funds;

(iii) staff welfare expenses; and

(iv) share based payment expenses.

Finance costs primarily comprises interest expense on

(i) borrowings; and

(ii) lease liabilities; and other borrowings costs which includes interest on our loans taken from banks (term loans, working capital and vehicle loan), interest on lease liabilities and other borrowing costs.

Depreciation and amortisation expenses comprises

(i) depreciation on property, plant and equipment;

(ii) amortisation of intangible assets; and

(iii) depreciation of right-of-use assets.

Other expenses primarily include

(i) power, fuel and water;

(ii) rent and facility fees;

(iii) repairs and maintenance on buildings, plant and equipments and others;

(iv) house keeping expenses;

(v) laundry expenses; (vi) patient food and beverages;

(vii) outsourced medical services;

(viii) security expense;

(ix) corporate social responsibility expense;

(x) legal and professional fees;

(xi) traveling and conveyance;

(xii) printing and stationery;

(xiii) communication expense;

(xiv) insurance;

(xv) rates and taxes;

(xvi) advertisement, marketing and outreach expenses;

(xvii) loss on leasehold modification;

(xviii) loss allowance;

(xix) bank charges;

(xx) foreign exchange fluctuation loss (net);

(xxi) loss on sale of property, plant and equipment (net);

(xxii) lab expenses; and

(xxiii) miscellaneous expenses.

The following table sets forth certain information with respect to our results of operations on a consolidated basis for Fiscals 2026, 2025 and 2024:

• In April 2025, we completed a preferential allotment of 3,375,527 Equity Shares to 360 ONE Special Opportunities Fund - Series 12 and Axis New Opportunities AIF - Series II at a price of Rs. 237 per Equity Share, aggregating to Rs. 800.00 million.

• Pursuant to business transfer agreements each dated May 23, 2025, we acquired the radiology operations of ClearMedi Healthcare Private Limited at our hospitals in Gurugram and Patna (effective December 31, 2024), Panchkula (effective March 31, 2025) and Ranchi (effective March 31, 2024), as a result of which the radiology services previously outsourced by us are now conducted in-house.

• The Ministry of Health & Family Welfare, Government of India, notified revised CGHS package rates effective October 13, 2025, superseding all prior circulars, which are applicable to empanelled healthcare organisations and medical reimbursement claims.

• The central government reduced GST rates on 33 life-saving drugs and medicines from 12% to nil, and on three life-saving drugs used for the treatment of cancer, rare diseases and other severe chronic conditions from 5% to nil. GST on all other drugs and medicines was also reduced from 12% to 5%.

Total income increased by 23.94% from Rs. 13,142.07 million in Fiscal 2025 to Rs. 16,287.84 million in Fiscal 2026 on account of an increase in revenue from operations and other income for reasons indicated below:

Revenue from operations increased by 24.10% from Rs. 12,940.63 million in Fiscal 2025 to Rs. 16,059.52 million in Fiscal 2026, primarily on account of an increase in revenue from sale of services - Healthcare by 23.82% from Rs. 12,458.66 million in Fiscal 2025 to Rs. 15,426.70 million in Fiscal 2026, and an increase in revenue from sale of product - Pharmacy by 28.57% from Rs. 473.67 million in Fiscal 2025 to Rs. 608.98 million in Fiscal 2026.

The table below provides a break-up of our revenue from operations:

We witnessed an increase in revenue from sale of services - healthcare primarily on account of an increase in volumes and consequent revenue from key specialties across our hospitals by hiring new doctors and consultants, primarily in cardiac sciences, oncology, orthopaedics and neurosciences.

Our total in-patient revenue increased by 22.22% from t 10,282.69 million in Fiscal 2025 to t 12,567.53 million in Fiscal 2026 and out-patient revenue increased by 31.40% from t 2,175.97 million in Fiscal 2025 to t 2,859.17 million in Fiscal 2026.

We also witnessed growth in revenue from operations across our hospitals. The table below sets forth details of revenue generated from our Mature Hospitals, Emerging Hospitals and New Hospitals in Fiscals 2026 and 2025:

Other income increased by 13.34% from t 201.44 million in Fiscal 2025 to t 228.32 million in Fiscal 2026, primarily on account of an increase in interest income from banks from t 122.60 million in Fiscal 2025 to t 178.53 million in Fiscal 2026; and decrease in interest on income tax refund from t 19.95 million in Fiscal 2025 to t 1.81 million in Fiscal 2026.

Total expenses increased by 13.82% from t 13,642.43 million in Fiscal 2025 to t 15,527.51 million in Fiscal 2026, primarily on account of an increase in purchases of stock in trade, employee benefits expenses, finance costs, depreciation and amortization expenses and retainers and consultant fees.

Purchase of stock-in-trade increased by 29.35% from t 3,361.29 million in Fiscal 2025 to t 4,347.83 million in Fiscal 2026, primarily due to growth in overall business operations, increase in the number of procedures undertaken, and an increase in contribution from specialties with relatively higher material costs.

Net change in inventories of stock in trade was t (45.61) million in Fiscal 2026 compared to t 7.12 million in Fiscal 2025. Inventories at the end of the year in Fiscal 2025 was t 204.18 million while inventories at the beginning of the year were t 211.30 million. For Fiscal 2026, inventories at the end of the year was t 249.79 million while inventories at the beginning of the year were t 204.18 million.

Employee benefits expense increased by 4.46% from t 1,738.06 million in Fiscal 2025 to t 1,815.65 million in Fiscal 2026, primarily on account of an increase in salaries and wages from t 1,564.90 million in Fiscal 2025 to t 1,650.54 million in Fiscal 2026 due to annual increments and employee cost rationalization in line with the growth in business operations. This was partially offset by a decrease in contribution to provident fund and other funds from t 80.48 million in Fiscal 2025 to t 76.51 million in Fiscal 2026; and a decrease in staff welfare expenses from t 92.68 million in Fiscal 2025 to t 85.22 million in Fiscal 2026.

Finance costs increased by 27.56% from t 909.19 million in Fiscal 2025 to t 1,159.78 million in Fiscal 2026, primarily on account of increase in interest expense on: (i) borrowings from t 543.14 million in Fiscal 2025 to t 623.93 million in Fiscal 2026 on account of loans availed for purchase of medical equipment and increased working capital requirements; (ii) lease liabilities from t 333.32 million in Fiscal 2025 to t 526.15 million in

Fiscal 2026 due to additional lease arrangements entered into during the year; and (iii) decrease in other borrowing costs from Rs. 32.73 million in Fiscal 2025 to Rs. 9.70 million in Fiscal 2026.

Depreciation and amortization expenses increased by 24.22% from Rs. 1,155.78 million in Fiscal 2025 to Rs. 1,435.66 million in Fiscal 2026 on account of increase in

(i) depreciation of property plant and equipment from Rs. 1,033.91 million in Fiscal 2025 to Rs. 1,183.82 million in Fiscal 2026 due to continued capital expenditure, including the purchase of medical equipment, the expansion of bed capacity, and renovation activities across existing facilities;

(ii) amortization of other intangible assets from Rs. 14.52 million in Fiscal 2025 to Rs. 10.63 million in Fiscal 2026; and

(iii) depreciation of right-of-use assets from Rs. 107.35 million in Fiscal 2025 to Rs. 241.21 million in Fiscal 2026 due to additional lease arrangements entered into during the year.

Retainers and consultants fee increased by 9.80% from Rs. 3,589.47 million in Fiscal 2025 to Rs. 3,941.20 million in Fiscal 2026, primarily due to an increase in the number of retainers and consultants engaged by us at our new hospitals, as well as hiring of new professionals at our existing hospitals.

Other expenses decreased by 0.30% from Rs. 2,881.52 million in Fiscal 2025 to Rs. 2,873.00 million in Fiscal 2026. This decrease was primarily on account of a decrease in:

• Loss allowance from Rs. 203.96 million in Fiscal 2025 to Rs. 97.01 million in Fiscal 2026, primarily due to improved collections of outstanding receivables from previous years, which resulted in lower provisioning requirements during Fiscal 2026;

• Outsourced medical services expenses from Rs. 496.04 million in Fiscal 2025 to Rs. 252.74 million in Fiscal 2026, pursuant to the acquisition of radiology operations of ClearMedi Healthcare Private Limited.

This decrease was partially offset by increases in (i) rent and facility fees from Rs. 234.40 million in Fiscal 2025 to Rs. 314.36 million in Fiscal 2026 due to higher rental charges and increased expenses in line with the expansion of our operations during the year; and (ii) patient food and beverage expenses from Rs. 94.65 million in Fiscal 2025 to Rs. 113.06 million in Fiscal 2026 due to higher patient volumes and the growth in our business operations.

For the reasons discussed above, profit before tax was Rs. 760.33 million in Fiscal 2026 compared to loss before tax of Rs. 500.36 million in Fiscal 2025.

Current tax expense increased to Rs. 352.66 million in Fiscal 2026 compared to Rs. 54.93 million in Fiscal 2025, primarily due to an increase in profit before tax during the year. Deferred tax credit (net) was Rs. (30.67) million in Fiscal 2026 compared to a deferred tax charge (net) of Rs. 24.54 million in Fiscal 2025, primarily on account of changes in deferred tax assets arising from temporary differences during the year.

For the various reasons discussed above, we recorded a profit for the year of Rs. 438.34 million in Fiscal 2026, compared to a loss for the year of Rs. 579.83 million in Fiscal 2025.

• We completed a full year of operations at our hospitals in Srinagar and Kanpur.

Total income increased by 14.18% from Rs. 11,510.23 million in Fiscal 2024 to Rs. 13,142.07 million in Fiscal 2025 primarily on account of an increase in revenue from operations, for reasons indicated below:

Revenue from operations increased by 14.62% from Rs. 11,290.39 million in Fiscal 2024 to Rs. 12,940.63 million in Fiscal 2025, primarily on account of an increase in revenue from sale of services - healthcare by 14.64% from Rs. 10,867.30 million in Fiscal 2024 to Rs. 12,458.66 million in Fiscal 2025, and an increase in revenue from sale of product - pharmacy by 13.30% from Rs.418.05 million in Fiscal 2024 to Rs. 473.67 million in Fiscal 2025. This was complemented by an increase in other operating revenues from Rs.5.04 million in Fiscal 2024 to Rs. 8.30 million in Fiscal 2025.

The table below provides a break-up of our revenue from operations:

We witnessed an increase in revenue from sale of services - healthcare primarily on account of an increase in volumes and consequent revenue from key specialties across our hospitals by hiring new doctors and consultants, primarily in cardiac sciences, oncology, orthopaedics and neurosciences, as well as the commencement of operations at our hospital in Kanpur in April 2024.

Our total in-patient revenue increased by 11.46% from Rs. 9,225.33 million in Fiscal 2024 to Rs. 10,282.69 million in Fiscal 2025 and out-patient revenue increased by 32.52% from Rs. 1,641.97 million in Fiscal 2024 to Rs. 2,175.97 million in Fiscal 2025.

We also witnessed growth in revenue from operations across our hospitals. The table below sets forth details of revenue generated from our Mature Hospitals, Emerging Hospitals and New Hospitals in Fiscals 2025 and 2024:

Other income decreased by 8.37% from Rs. 219.84 million in Fiscal 2024 to Rs. 201.44 million in Fiscal 2025, primarily on account of a decrease in

(i) interest income from income tax refund from Rs. 33.21 million in Fiscal 2024 to Rs. 19.95 million in Fiscal 2025; and

(ii) miscellaneous income from Rs. 29.69 million in Fiscal 2024 to Rs. 15.24 million in Fiscal 2025.

This decrease was primarily offset by an increase in interest income from banks from Rs. 105.65 million in Fiscal 2024 to Rs. 122.60 million in Fiscal 2025.

Total expenses increased by 19.21% from t 11,443.93 million in Fiscal 2024 to t 13,642.43 million in Fiscal 2025, primarily on account of an increase in

(i) purchases of stock-in-trade;

(ii) employee benefits expense;

(iii) finance costs;

(iv) depreciation and amortization expense;

(v) retainers and consultants fee; and

(vi) other expenses.

Purchase of stock-in-trade increased by 10.24% from t 3,048.95 million in Fiscal 2024 to t 3,361.29 million in Fiscal 2025, primarily due to an increase in contribution from specialties with relatively higher material costs, as well as the completion of a full year of operations at our Kanpur and Srinagar hospitals.

Net change in inventories of stock in trade was t 7.12 million in Fiscal 2025 compared to t (81.83) million in Fiscal 2024. Inventories at the end of the year in Fiscal 2024 was t 211.30 million while inventories at the beginning of the year was t 129.47 million. For Fiscal 2025, inventories at the end of the year was t 204.18 million while inventories at the beginning of the year was t 211.30 million.

Employee benefits expense increased by 3.91% from t 1,672.58 million in Fiscal 2024 to t 1,738.06 million in Fiscal 2025, primarily on account of an increase in salaries and wages from t 1,497.66 million in Fiscal 2024 to t 1,564.90 million in Fiscal 2025 due to annual increments and hiring of employees in new and existing hospitals. This was partially offset by a decrease in contribution to provident fund and other funds from t 80.75 million in Fiscal 2024 to t 80.48 million in Fiscal 2025; and staff welfare expenses from t 94.17 million in Fiscal 2024 to t 92.68 million in Fiscal 2025.

Finance costs increased by 35.57% from t 670.64 million in Fiscal 2024 to t 909.19 million in Fiscal 2025, primarily on account of an increase in interest expense on:

(i) borrowings from t 355.84 million in Fiscal 2024 to t 543.14 million in Fiscal 2025 on account of loans availed for capital expenditure and working capital requirements across our hospitals; and

(ii) lease liabilities (as per the requirement of Ind AS) from t 291.70 million in Fiscal 2024 to t 333.32 million in Fiscal 2025.

Depreciation and amortization expense increased by 43.19% from t 807.17 million in Fiscal 2024 to t 1,155.78 million in Fiscal 2025, primarily on account of an increase in

(i) depreciation of property plant and equipment from t 697.69 million in Fiscal 2024 to t 1,033.91 million in Fiscal 2025, primarily due to the capitalization of the assets of our Kanpur hospital during the year;

(ii) amortization of other intangible assets from t 7.95 million in Fiscal 2024 to t 14.52 million in Fiscal 2025; and

(iii) depreciation of right-of-use assets from t 101.53 million in Fiscal 2024 to t 107.35 million in Fiscal 2025.

Retainers and consultants fee increased by 22.10% from t 2,939.84 million in Fiscal 2024 to t 3,589.47 million in Fiscal 2025, primarily due to the hiring of new clinicians and healthcare professionals across our hospitals.

Fair value gain on financial instruments was nil in Fiscal 2025 as compared to t (133.84) million in Fiscal 2024, primarily on account of the absence of any outstanding financial instruments requiring fair value measurement during Fiscal 2025. In Fiscal 2024, pursuant to an addendum to the share purchase and shareholders? agreement effective March 28, 2024, Commelina Ltd waived its right to require our Company to provide a buy-back option. Consequently, there were no further contractual obligations on our Company, and the related financial instruments were reclassified as equity and other equity in Fiscal 2024. Accordingly,

no fair value adjustments were required or recorded in Fiscal 2025.

Other expenses increased by 14.33% from Rs. 2,520.42 million in Fiscal 2024 to Rs. 2,881.52 million in Fiscal 2025. This increase was primarily on account of an increase in:

• Advertisement, marketing and outreach expenses from Rs. 248.23 million in Fiscal 2024 to Rs. 379.30 million in Fiscal 2025 on account of increased marketing expenditure undertaken for the launch of new hospitals and the strengthening of our brand presence;

• Housekeeping expenses from Rs. 328.12 million in Fiscal 2024 to Rs. 362.18 million in Fiscal 2025 on account of commencement of operations at new hospitals and increased manpower costs;

• Power, fuel and water from Rs. 196.10 million in Fiscal 2024 to Rs. 243.03 million in Fiscal 2025 pursuant to completion of a full year of operations at our New Hospitals in Srinagar and Kanpur;

• Loss allowance from Rs. 104.62 million in Fiscal 2024 to Rs. 203.96 million in Fiscal 2025 on account of increase in mix of credit revenues, with higher mix of receivables from TPAs and government schemes falling in higher ageing buckets;

• Repairs and maintenance - plant and equipment from Rs. 157.03 million in Fiscal 2024 to Rs. 177.67 million;

• Repairs and maintenance - others from Rs. 86.18 million in Fiscal 2024 to Rs. 98.34 million in Fiscal 2025;

• Security expense from Rs. 85.09 million in Fiscal 2024 to Rs. 96.05 million in Fiscal 2025 on account of commencement of operations at our New Hospitals and inflationary increases in manpower costs; and

• Legal and professional fees from Rs. 65.75 million in Fiscal 2024 to Rs. 73.27 million in Fiscal 2025.

This increase was partially offset by a decrease in rent and facility fees from Rs. 331.86 million in Fiscal 2024 to Rs. 234.40 million in Fiscal 2025, pursuant to our Patna Hospital transitioning from a revenue share model to a partial fixed rent model.

For the reasons discussed above, loss before tax was Rs. 500.36 million in Fiscal 2025 compared to profit before tax of Rs. 66.30 million in Fiscal 2024.

Current tax expense decreased to Rs. 54.93 million in Fiscal 2025 compared to Rs. 201.83 million in Fiscal 2024 on account of a reduction in overall profit before tax, which is mainly attributable to losses incurred by our hospitals in Kanpur and Srinagar in Fiscal 2025. Deferred tax charge (net) was Rs. 24.54 million in Fiscal 2025 compared to Rs. 17.78 million in Fiscal 2024, primarily on account of the creation of additional expected credit loss provisions during Fiscal 2025, in respect of which deferred tax assets were recognised in accordance with applicable accounting standards.

For the various reasons discussed above, we recorded a loss for the year of Rs. 579.83 million in Fiscal 2025, compared to a loss for the year of Rs. 153.31 million in Fiscal 2025.

We have historically financed the expansion of our business and operations primarily through debt financing, owned funds and funds generated from our operations. From time to time, we may obtain loan facilities to finance our short term working capital requirements. Our cash flows from operations are influenced by several factors, including EBITDA levels, working capital requirements and capital expenditure, and we monitor liquidity at a consolidated level to support ongoing operations and committed expansion plans. We prioritise liquidity management and maintain adequate cash balances and access to banking facilities to meet our operational needs.

We believe that after taking into account the expected cash to be generated from our business and operations,

the Net Proceeds from the Fresh Issue and the proceeds from our existing bank loans, and new loans for any new expansion or capital expenditure we will have sufficient capital to meet our anticipated capital requirements for our working capital and capital expenditure requirements.

The following table sets forth certain information relating to our cash flows in the periods indicated:

Net cash generated from operating activities was Rs. 1,635.12 million. Profit before tax was Rs. 760.33 million. Primary adjustments consisted of depreciation and amortisation expense of Rs. 1,435.66 million; loss on foreign exchange fluctuation (net) of Rs. 17.71 million; gain on sale of property, plant and equipment (net) of Rs. 1.05 million; finance costs of Rs. 1,159.78 million; share-based payment expenses of Rs. 3.38 million; loss on modification of financial assets of Rs. 6.05 million; unwinding of discount on financial assets of Rs. 33.99 million; interest income of Rs. 180.34 million and loss allowance of Rs. 97.01 million.

Adjustments for changes in working capital in: trade receivables were Rs. (1,246.82) million; other assets were Rs. 38.45 million; inventories were Rs. (55.98) million; trade payables were Rs. 157.86 million; and other liabilities and provisions were Rs. 15.30 million. Cash generated from operations in Fiscal 2026 was Rs. 2,173.35 million. Income tax paid (net) was Rs. 538.23 million, which is higher mainly due to a reduction in losses incurred by our New Hospitals, as well as an overall increase in profit generated from our Mature Hospitals and Emerging Hospitals in Fiscal 2026.

Net cash generated from operating activities was Rs. 861.90 million. Loss before tax was Rs. 500.36 million. Primary adjustments consisted of depreciation and amortisation expense of Rs. 1,155.78 million; gain on foreign exchange fluctuation (net) of Rs. 1.15 million; loss on sale of property, plant and equipment (net) of Rs. 0.34 million; finance costs of Rs. 909.19 million; liabilities no longer required written back of Rs. 2.51 million; interest income of Rs. 159.31 million; unwinding of discount on financial assets of Rs. 36.72 million; and loss allowance of Rs. 203.96 million.

Adjustments for changes in working capital in: trade receivables were Rs. (986.75) million; other assets were Rs. (146.53) million; inventories were Rs.15.14 million; trade payables were Rs. 530.97 million; and other liabilities and provisions were Rs. (22.02) million. Cash generated from operations in Fiscal 2025 was Rs. 960.03 million. Income tax paid (net) was Rs. 98.13 million, which is lower mainly due to a reduction in overall profit before tax, attributable to losses incurred by our New Hospitals in Fiscal 2025.

Net cash generated from operating activities was Rs. 924.77 million. Profit before tax was Rs. 66.30 million. Primary adjustments consisted of depreciation and amortisation expense of Rs. 807.17 million; loss on foreign exchange fluctuation (net) of Rs. 1.87 million; gain on sale of property, plant and equipment (net) of Rs. 2.71 million; finance costs of Rs. 670.64 million; unwinding of discount on financial assets of Rs. 35.95 million; gain on termination of lease of Rs. 4.72 million; liabilities no longer required written back of Rs. 6.60 million; interest income of Rs. 141.60 million; fair value gain on financial instruments of Rs. 133.84 million; and loss allowance of Rs. 104.62 million.

Adjustments for changes in working capital in: trade receivables were Rs. (361.05) million; other assets were (19.02) million; inventories were Rs. (100.85) million; trade payables were Rs. 135.63 million; and other liabilities and provisions were Rs. 50.01 million. Cash generated from operations in Fiscal 2024 was Rs. 1,029.90 million. Income tax paid (net) was Rs. 105.13 million which is low mainly due to receipt of refunds relating to previous financial years during the current year.

Net cash used in investing activities was Rs. 2,394.10 million in Fiscal 2026, primarily on account of payments for purchase of property, plant and equipment and intangible assets (including capital work in progress, capital advances and payable for purchase of property, plant and equipment) of Rs. 1,694.17 million; proceeds from sale of property, plant and equipment of Rs. 5.90 million; investments in bank deposits (net) of t 858.94 million and interest received from bank deposits of Rs. 153.11 million.

Net cash used in investing activities was Rs. 1,472.51 million in Fiscal 2025, primarily on account of payments for purchase of property, plant and equipment and intangible assets (including capital work in progress, capital advances and payable for purchase of property, plant and equipment) of Rs.1,366.64 million; proceeds from sale of property, plant and equipment of t 12.83 million; investments in bank deposits (net) of t 234.61 million; and interest received from bank deposits of t 115.91 million.

Net cash used in investing activities was t 1,940.55 million in Fiscal 2024, primarily on account of payments for purchase of property, plant and equipment and intangible assets (including capital work in progress, capital advances and payable for purchase of property, plant and equipment) of t 1,975.54 million; proceeds from sale of property, plant and equipment of t 28.49 million; investments in bank deposits (net) of t 76.43 million; and interest received from bank deposits of t 82.93 million.

Net cash generated from financing activities was t 858.89 million in Fiscal 2026, primarily on account of proceeds from issue of equity share capital (net of issue expenses) of t 691.25 million; proceeds of non-current borrowings of t 2,745.85 million; and movement in current borrowings (net) of t 958.82 million. This was partially offset by repayment of non-current borrowings of t 2,440.15 million; repayment of principal portion of lease liabilities of t 10.77 million; repayment of interest portion on lease liabilities of t 461.03 million; and finance costs paid of t 625.08 million.

Net cash generated from financing activities was t 828.17 million in Fiscal 2025, primarily on account of proceeds of non-current borrowings of t 1,440.76 million and movement in current borrowings (net) of t 791.71 million. This was partially offset by repayment of non-current borrowings of t 420.79 million; repayment of principal portion of lease liabilities of t 4.21 million; repayment of interest portion of lease liabilities of t 402.44 million; and finance costs paid of t 576.86 million.

Net cash generated from financing activities was t 939.78 million in Fiscal 2024, primarily on account of proceeds of non-current borrowings of t 1,429.84 million and movement in current borrowings (net) of t 415.99 million. This was partially offset by repayment of non-current borrowings of t 320.25 million; repayment of principal portion of lease liabilities of t 3.44 million; repayment of interest portion of lease liabilities of t 211.74 million; and finance costs paid of t 370.62 million.

As of March 31, 2026, we had total borrowings (consisting of non-current borrowings of Rs. 4,542.10 million and current borrowings of Rs. 3,998.91 million) of Rs. 8,541.01 million. Our Adjusted Debt to Equity ratio (calculated as total debt divided by tangible net worth, where total debt is the sum of current and non-current borrowings, and tangible net worth is total equity less intangible assets and goodwill) was 2.20 as of March 31, 2026.

The following table sets forth certain information relating to our total borrowings as of March 31, 2026, and our repayment obligations in the periods indicated:

The table below sets forth details of our contingent liabilities that have not been accounted for in our Restated Consolidated Financial Information as at the dates indicated:

For further information, see "Financial Information - Restated Consolidated Financial Information - Note 32. Commitments and Contingencies? on page 357 and "Summary of Contingent Liabilities" on page 7 5.

Estimated amount of contracts remaining to be executed which is of capital nature (net of advances) and which have not been provided for in the Restated Consolidated Financial Information, amounts to Rs. 187.98 million, Rs. 245.97 million and Rs. 317.76 million as at March 31, 2026, March 31, 2025 and March 31, 2024, respectively.

Our Company had imported capital goods under Export Promotion Capital Goods Scheme ("EPCG") and saved custom duty amounting to Rs. 253.94 million as of March 31, 2026 (Rs. 253.94 million as of March 31, 2025 and Rs. 253.94 million as of March 31, 2024). As per the EPCG terms and conditions, our Company needs to export goods six times of duty saved on import of capital goods on FOB basis within a period of six years. The balance export obligation which amounted to Rs. 1,049.91 million as of March 31, 2026 (Rs. 1,256.93 million as of March 31, 2025 and Rs. 1,348.41 million as of March 31, 2024) is pending to be exported by our Company. In case, our Company is unable to export services within the prescribed timeline, then our Company may have to pay duty on import of capital goods, including interest and penalty thereon.

We have committed to leases which had not yet commenced. The total future cash outflows (undiscounted) for leases that had not yet commenced were as follows:

Our significant lease arrangements are in respect of premises of hospitals, nursing hostels, clinics and medical equipments.

For further information on our commitments and contingencies, see "Financial Information - Restated Consolidated Financial Information - Note 32. Commitments and contingencies? on page 357.

Except as disclosed in the Restated Consolidated Financial Information or elsewhere in this Draft Red Herring Prospectus, there are no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that we believe are material to investors.

In Fiscals 2026, 2025 and 2024, payments for purchase of property, plant and equipment and intangible assets (including capital work in progress, capital advances and payable for purchase of property, plant and equipment) were Rs. 1,694.17 million, Rs. 1,366.64 million and Rs. 1,975.54 million, respectively. The following table sets forth our non-current assets as at the periods indicated:

We enter into various transactions with related parties in the ordinary course of business. These transactions are primarily in relation to managerial remuneration, rent and facility fees, loans to wholly-owned subsidiaries, loans from related parties and interest expenses on loan taken, and outsourced medical services.

For further information relating to our related party transactions, see "Restated Consolidated Financial Information - Note 34 - Related parties disclosures" on page 359.

Our Statutory Auditors have included certain remarks in relation to the feature of recording audit trail (edit log) facility for accounting software used by our Company in their audit reports as of and for the years ended March 31, 2026, March 31, 2025 and March 31, 2024, pursuant to the requirements of Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as amended, which do not require any corrective adjustments in the Restated Consolidated Financial Information. For more information, see "Financial Information - Restated Consolidated Financial Information - Note 46. Statement of restated adjustments - Part C. Nonadjusting events" on page 378 and "Risk Factors - 21. Our Statutory Auditors have included certain remarks in relation to the feature of recording audit trail (edit log) facility in the accounting software used by our Company in their audit reports for the years ended March 31, 2026, March 31, 2025 and March 31, 2024, pursuant to the requirements of Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014. We cannot assure you that similar remarks will not form part of our financial statements in the future, which could have an adverse effect on our reputation, the trading price of our Equity Shares, results of operations, financial condition and cash flows" on page 41.

We are exposed to the following risks arising from financial instruments:

• Credit risk;

• Liquidity risk; and

• Market risk.

Our Board has overall responsibility for the establishment and oversight of our risk management framework. The Board have authorized the Managing Director to establish the processes, who ensures that executive management controls risks through the mechanism of properly defined framework.

Our risk management policies are established to identify and analyze the risks faced by us, to set appropriate risks limits and controls, and to monitor risks and adherence to limits. Risk management policies are reviewed regularly to reflect changes in market conditions and our activities. We have, through our training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

Credit risk is the risk of financial loss to us if a customer or counterparty to a financial asset fails to meet its contractual obligations. Our exposure to credit risk is influenced mainly by the individual characteristics of each financial asset. The carrying amounts of financial assets represents the maximum credit risk exposure.

A default on a financial asset is when the counterparty fails to make contractual payments as per agreed terms. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

We have a credit risk management policy in place to limit credit losses due to non-performance of counterparties. The Group monitors its exposure to credit risk on an ongoing basis. Assets are written off when there is no reasonable expectation of recovery. Where loans and receivables are written off, we continue to engage in enforcement activity to attempt to recover the dues.

We closely monitor the credit-worthiness of the receivables through internal systems that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts. We use a simplified approach (lifetime expected credit loss model) for the purpose of computation of expected credit loss for trade receivables.

Credit risk related to cash and cash equivalents and bank deposits is managed by only investing in deposits with highly rated banks and diversifying bank deposits and accounts in different banks. Credit risk is considered low because the Group deals with highly rated banks.

Other financial assets measured at amortized cost includes security deposits, contract assets, accrued interest on fixed deposits and other receivables. Credit risk related to these financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system are in place to ensure the amounts are within defined limits. Credit risk is considered low because we are in possession of the underlying asset (in case of security deposit) or as per trade experience (in case of unbilled revenue from patient and other receivables from revenue sharing arrangements). Further, we create provision by assessing individual financial asset for expectation of any credit loss basis 12 month expected credit loss model.

Expected credit loss for trade receivables under simplified approach.

Liquidity risk is the risk that we will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. Our approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due.

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect our income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

We have international transactions and are exposed to foreign exchange risk arising from foreign currency transactions (imports). Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not our functional currency. We have not hedged our foreign exchange payables for Fiscal 2026.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Our interest rate risk arises from:

• Borrowings which are made at market rate of interest at the time of borrowings.

• Bank deposits which are made at market rate of interest at the time of deposit.

This exposes us to cash flow interest rate risk.

For further information, see "Financial Information - Restated Consolidated Financial Information - Note 3 7. Financial risk management? on page 364.

Except as described in this Draft Red Herring Prospectus, to our knowledge, there have been no unusual or infrequent events or transactions that have in the past or may in the future affect our business operations or future financial performance.

Our business has been subject, and we expect it to continue to be subject, to significant economic changes that materially affect or are likely to affect income from continuing operations identified above under "- Significant Factors Affecting our Results of Operations??" and the section "Our Business" on pages 381 and 220, respectively.

Our business has been subject, and we expect it to continue to be subject, to significant economic changes arising from the trends identified above in " - Significant Factors Affecting our Results of Operations and Financial Condition" and the uncertainties described in "Risk Factors" on pages 381 and 22, respectively. To our knowledge, except as discussed in this Draft Red Herring Prospectus, there are no known trends or uncertainties that have or had or are expected to have a material adverse impact on revenues or income from continuing operations.

Other than as described in "Risk Factors?", "Our Business" and "Management?s Discussion and Analysis of Financial Condition and Results of Operations" on pages 22, 220 and 381, respectively, to our knowledge there are no known factors that may adversely affect our business prospects, results of operations and financial condition.

Except as set out in this Draft Red Herring Prospectus, we have not announced and do not expect to announce in the near future any new business segments other than in the normal course of business.

We operate in a competitive environment. See "Our Business", "Industry Overview" and "Risk Factors" on pages 220, 162 and 22, respectively, for further information on competitive conditions that we face across our various business verticals.

Changes in revenue in the last three Fiscals are as described in "- Fiscal 2026 compared to Fiscal 2025", and "- Fiscal 2025 compared to Fiscal 2024" above on pages 401 and 403, respectively.

Our chief operating decision maker ("CODM"), i.e., our Managing Director, examines our performance from a service perspective and has identified ‘Healthcare services? as a single business segment. We are operating in India which constitutes a single geographical segment. The CODM reviews internal management reports to assess the performance of the segment "Healthcare services".

For further information, see "Financial Information - Restated Consolidated Financial Information - Note 35 - Segment information"" on page 362.

Given the nature of our business operations, we are not dependent on any single or few customers for our revenue from operations. There are no transactions with a single external customer which would amount to 10 percent or more of our revenue from operations.

Our business is not subject to seasonal variations, however, our income and profits may vary from quarter to quarter depending on factors including change in weather, outbreak of viral and seasonal diseases. See "Risk

Factors - Our quarterly results may fluctuate for a variety of reasons and may not fully reflect the underlying performance of our business" on page 60.

Except as disclosed in this Draft Red Herring Prospectus, to our knowledge no circumstances have arisen since March 31, 2026 that could materially and adversely affect or are likely to affect, the trading or profitability, or the value of our assets or our ability to pay our liabilities within the next 12 months.