Park Medi World Ltd Management Discussions

Economy Overview Global Economy Overview

The year under review witnessed headwinds from higher trade barriers and elevated uncertainty; however, technology-driven investment, accommodative financial conditions, including a weaker US dollar (vis-a-vis currencies other than INR) and supportive fiscal and monetary policies, offset these pressures. Despite these offsetting factors, the global economy maintained resilience, with growth of around 3.4% in CY 2025, and is expected to moderate to about 3.1% in CY 2026 due to the recent geopolitical developments and energy market disruptions.

Global trade flows remained resilient but increasingly reflected shifting patterns, supply chain reconfiguration and policy adjustments across major economies. Companies accelerated supply chain diversification and strengthened domestic manufacturing capabilities, driving a gradual realignment. Technology-related trade remained a key contributor, partly offsetting slower momentum in other segments. These trends continued to influence sectors linked to capital expenditure, infrastructure and industrial expansion.

Advanced economies grew at a relatively moderate pace expanding by 1.9%, while emerging market and developing economies (EMDEs) grew at a faster rate by 4.4%. Improving supply conditions and the impact of monetary policy helped moderate inflationary pressures compared to recent years. However, regional variations persist, with several economies continuing their gradual movement towards target levels.

Outlook

Geopolitical developments, including tensions in energy- sensitive regions such as West Asia, continue to pose risks to energy markets and supply chains, with potential implications for commodity prices and input costs across industries. Assuming the conflict remains limited in duration and scope, global growth is projected to moderate to 3.1% in 2026 and 3.2% in 2027.

An extended or broader conflict could weaken growth and disrupt financial markets further, increase inflationary pressures and tighten financial conditions. Rising geopolitical fragmentation, a reassessment of AI-driven productivity gains, or renewed trade tensions may further elevate risks. High public debt, fiscal pressures arising from prolonged geopolitical conflicts, and uncertainty around policy responses could further heighten these risks. Conversely, stronger-than-expected productivity gains from AI or a sustained easing of trade tensions could support economic activity.

The outlook remains driven by external factors, including trade policy shifts, financial market movements, elevated public debt and geopolitical developments, particularly in energy markets, which may disrupt supply chains and increase commodity price volatility. Central banks are expected to remain focused on price stability, with policy actions aligned to evolving inflation conditions. Strengthening policy credibility, enhancing adaptability and deepening international cooperation are expected to remain key priorities to navigating current headwinds and future uncertainty.

Indian Economy Overview

The Indian economy sustained strong growth momentum in FY 2025-26, with real GDP growth at 7.7%, supported by domestic demand, investment activity and stable macroeconomic fundamentals. Growth was driven by services and manufacturing. Economic conditions remained resilient despite global uncertainty, including geopolitical tensions, elevated energy prices and supply chain disruptions.

Domestic demand remained the primary driver. Private consumption and fixed investment grew by 7.7% and 7.1% respectively in FY 2025-26. Rural demand remained stable, supported by agriculture, while urban consumption improved with services sector activity, lower tax incidence following the GST rationalisation announced during FY 2026 and higher disposable incomes after direct tax relief measures announced in the Union Budget 2025. Government expenditure on infrastructure supported investment, while GST collections and digital adoption improved efficiency. Employment conditions remained stable, with unemployment at 4.9% in FY 2025-26.

Inflation remained contained during FY 2025-26. Headline CPI inflation remained below the 4% target, with core inflation around 3.7% and core inflation excluding precious metals at around 2.1% during the year, indicating stable underlying price conditions. Food inflation showed moderation during the year, while risks from global commodity prices and supply disruptions remained. The Reserve Bank of India maintained the policy repo rate at 5.25% during FY 2025-26 with a neutral stance. Liquidity remained in surplus, with average daily surplus liquidity improving to Rs2.3 lakh crore, supporting credit growth of around 15.9% during the year.

Fiscal deficit stood at around 4.4% of GDP in FY 2025-26, with continued focus on infrastructure spending. The healthcare sector benefited from these macroeconomic conditions, supported by rising income levels, improved affordability and continued expansion in healthcare access and infrastructure.

Outlook

The Indian economy is expected to maintain a stable growth trajectory, supported by strong domestic fundamentals and continued policy support. Growth is expected to remain driven by domestic demand, with a sustained focus on infrastructure and capital expenditure. Elevated public investment, improving capacity utilisation and stronger corporate and financial sector balance sheets are expected to support a gradual increase in private sector investment.

However, the evolving geopolitical situation in the Middle East, and specifically the risk of a prolonged disruption to shipping through the Strait of Hormuz, introduces a layer of uncertainty that warrants consideration. A sustained closure of this critical energy chokepoint - through which approximately 20% of global oil and gas supplies transit daily - would place significant upward pressure on crude oil prices, with direct consequences for energy-intensive sectors such as aviation, fertilisers, petrochemicals, and logistics. The second-order effects - higher food prices, elevated core inflation, a widening current account deficit, and fiscal pressure that could compress government

capital expenditure in favour of subsidy and operating obligations - would create a more challenging macroeconomic environment for a broad range of industries. This could push

1 headline inflation above the Reserve Bank of Indias comfort band of 4%, with a tolerance of 2%. This would constrain the

2 RBIs ability to maintain an accommodative monetary stance,

r potentially delaying or reversing the rate reduction cycle

and tightening financial conditions for both households and businesses. Indias macroeconomic buffers - including strong foreign exchange reserves of approximately US$700 billion , and a diversified growth base - provide meaningful resilience against these pressures, but a prolonged disruption would test even these foundations. l

f Against this backdrop of potential macroeconomic turbulence, t the domestic healthcare sector stands out as one of the , more resilient segments of the Indian economy. It is expected to sustain growth, supported by rising demand, increasing r insurance penetration and continued infrastructure investment,

t alongside policy efforts to improve access and strengthen t healthcare systems.

Industry Overview

Global Healthcare Industry Overview 3

The global healthcare delivery sector in 2025-26 continues to evolve amid structural shifts in care delivery, technology adoption and patient expectations. Demographic changes, rising chronic disease burden and rapid technological integration drive this transformation.

Despite moderate global economic growth of about 3.4% in CY2025 and 3.1% in CY2026, the healthcare sector continues to outpace broader growth, supported by its essential nature and increasing care complexity.

Approximately 85% of healthcare leaders remain confident about sector expansion, led by digitalisation and connectivity. However, workforce shortages, regulatory changes and supply chain pressures persist. Demand for healthcare services continues to exceed public infrastructure capacity, driving private sector participation and new care models.

Key Trends

1. Technological Evolution and the Demand-Productivity Gap 4

AI and GenAI have become central to addressing the demand-productivity gap. Around 72% of organisations prioritise AI adoption to streamline administrative and clinical workflows. The global healthcare AI market is projected to reach USD 45.2 billion by CY 2026, growing at a CAGR of 44.9% since 2021.

Applications include AI-assisted diagnostics, digital pathology, patient engagement and revenue cycle management. Ambient technologies reduce clinical documentation time by up to 20%. The shift towards

modular AI architectures supports integrated decisionmaking and operational efficiency.

2. Global Demographic Shifts and Disease Burden 5

The global healthcare landscape is further defined by a transition in the disease burden. Non-communicable diseases (NCDs), including cardiovascular disease, diabetes, cancer and mental health conditions, now account for nearly two-thirds of deaths worldwide. Ageing populations further intensify demand, with about 20% of population in advanced economies expected to be above 65 within five years.

Average years lived with illness increased from 8.7 to 10.2 in the last 25 years and may reach 11.4 by 2050. This shift necessitates long-term, coordinated care models. However, fiscal pressures persist, with debt servicing exceeding healthcare spending in nearly 62 countries and the international development funding that historically filled this gap continues to shrink.

Indian Healthcare Industry Overview 6

The Indian healthcare delivery industry remains one of the fastest-growing sectors. The market reached approximately T6.9 trillion to T7.0 trillion in FY 2025-26 and is projected to grow at a CAGR of 10%-12%, potentially reaching T10.2-T10.8 trillion by FY 2028-29, significantly outpacing mature markets (such as the US, Europe and Japan) growing at 4%-6%.

The private sector accounts for around 67% of the hospital market, with large corporate chains and regional players expanding through greenfield projects, brownfield expansions and acquisitions. The industry is consolidating, with national players strengthening their presence across urban centres and Tier 2 and Tier 3 cities.

The sector is undergoing structural transformation, supported by economic growth, demographic shifts and technology adoption. Continued investment in infrastructure and digital capabilities will remain critical to addressing capacity gaps and improving healthcare outcomes. Operational efficiency and quality of care will define long-term leadership.

Key Trends

1. Infrastructure Gap and Capacity Expansion 7

India faces a significant healthcare infrastructure deficit, with bed density at 1.3 to 1.5 per 1,000 population against the global average of 2.9 and the recommendation of 3.5. Bridging this gap requires over 2.4 million additional beds over the next decade. Private hospitals planned to add 4,000+ beds in FY 2025-26 with around T11,500 crore investment. 8 Large corporate groups have announced capex

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exceeding T30,000 crore to add 14,500 beds by FY 202627, driven by around 50% greenfield and about 40% brownfield expansion. 9

2. Regional Market Dynamics: The Dominance

of North India 10

The healthcare delivery market in North India comprises states such as Haryana, Punjab, Rajasthan, Uttar Pradesh, Delhi and Uttarakhand. North India is expected to lead growth, with market share growing from 30%-32% in FY 2024-25 to 30.5%-33.5% by FY 2028-29. This region has a population of approximately 429 million but only 620,000 to 630,000 hospital beds, indicating a significant unmet need for quality tertiary and quaternary care.

Bed density remains uneven, with Delhi relatively higher (21.5 per 10,000 population). On the other hand, states such as Uttar Pradesh (12.0-13.0), Rajasthan (13.514.5) and Haryana (13.5-14.5) remain below the national recommendation of 20 beds per 10,000 population, creating expansion opportunities in underserved cities.

3. Epidemiological Transition and Leading Causes of Death in India

India is experiencing a shift where chronic lifestyle-related diseases are becoming the primary cause of mortality. The all-cause age-standardised mortality rate (ASMR) declined from 1,513.05 per lakh to 871.09 within 3 decades, while non-communicable diseases (NCDs) now account for 56.7% of deaths in the country.

4. Cardiovascular Disease: The Leading Mortality Factor 11

Cardiovascular diseases (CVDs) account for approximately 31% of all mortalities. The prevalence of heart-related deaths has increased steadily in the last decade. The burden increasingly affects younger populations. Heart disease accounts for 25% of deaths in the 30-44 age group and rises to 35.6% in the 45-54 age group.

Urbanisation and lifestyle factors drive this trend. Mortality remains higher in urban areas (34.2%) than in rural areas (30.1%), linked to stress, pollution, sedentary habits and unhealthy diets. In addition, 85% of individuals with hypertension or diabetes in the South-East Asia remain inadequately managed, increasing the risk of fatal cardiac events.

5. Respiratory Conditions and Chronic Obstructive Pulmonary Disease

Chronic Obstructive Pulmonary Disease (COPD) is the second leading cause of death, with an ASMR of 99.25 per lakh population. Other respiratory infections account

for 9.3% of total deaths, while respiratory diseases as a category comprise 5.7%. These conditions are exacerbated by environmental factors and the lingering effects of global health crises.

6. The Rising Burden of Diabetes and Cancer 12

Diabetes mellitus is another primary driver of mortality, contributing to 3.5% deaths in the recent years. Regional data indicate that the northern and southern regions of India face the highest proportions of diabetes-related deaths.

Cancer cases reached approximately 1.46 million recently, ranking third globally after China and the US. Lung and breast cancers remain the leading sites for males and females, respectively. Cancer incidence in India increased by 12.8% in the last 5 years, highlighting the growing need for expanded oncology infrastructure and early screening initiatives.

Leading Causes of Death in India (Latest Data)

Source: Industry Statistical Reports and Census Data 13

7. Demographic Shifts: Urbanisation and Life Expectancy

Indias demographic profile is shifting, directly increasing healthcare demand. Life expectancy rose by 13 years to 71.56 years in the last 3 decades, driving a higher prevalence of age-related diseases, which account for about 26% of current mortality.

Urbanisation continues to accelerate, with a higher incidence of respiratory, cancer and digestive diseases in urban populations. Tier 2 cities are expected to add 40 million people by FY2026-27, creating new demand centres.

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8. Economic Driver: Income Growth 14

Strong economic growth supports healthcare expansion. Real GDP grew by 7.7% in FY2025-26, driving higher disposable incomes and improving the affordability of quality healthcare services.

9. The Expansion of Health Insurance 15

Health insurance coverage increased from 288 million (FY2015) to 573 million (FY2024), with private coverage rising from 61 million to 312 million. Penetration is expected to reach 45%-50% by FY2026. The shift towards insurance-led payments has increased the share of private insurance to up to 41% of hospital revenues.

10. Rising Investments in the Indian Healthcare space 16

Indias healthcare sector continued to attract strong interest from private equity and venture capital investors during FY2025-26, supported by rising demand for specialised care, expanding hospital networks, increasing insurance penetration and consolidation opportunities across healthcare delivery and diagnostics. The sector recorded announced transactions worth over T10,000 crore during Q2 FY2026 alone across hospitals, diagnostics and specialty care segments. Investor activity remained focused on scalable healthcare platforms with strong regional presence and specialised clinical capabilities. Large transactions, expansion funding and IPO activity across leading hospital chains during FY2025-26 indicate sustained investor interest in the sector post-pandemic.

11. Operational Driver: Realisations and Service Mix 17

ARPOB has increased significantly, with double-digit growth in FY2024-25 and H1 FY2026, driven by pricing and a shift toward complex procedures. The mix continues to move toward tertiary and quaternary care, with oncology, cardiology, neurology and transplants as key drivers. Occupancy levels remain strong at 60%-70%, supporting operating leverage through efficient capacity utilisation.

12. Digital Transformation and Public Infrastructure 18

Digital integration remains a key priority. Adoption of electronic medical records, Al-assisted diagnostics and tele-ICU models continues to accelerate. Over 500 million digital health IDs have been created, enabling data interoperability and supporting advanced analytics and personalised care.

Company Overview

About the Company

Park Medi World Limited is one of the leading institutional players in the North Indian healthcare delivery landscape, operating a network of 17 multi-super speciality hospitals. The Company was

incorporated as Park Medi World Private Limited in New Delhi on January 20, 2011. Its origins trace back to 1981, when Dr. Ajit Gupta started his professional journey after graduating from the University College of Medical Sciences, Delhi University. It was followed by the launch of the first Park Hospital in 2005, which was later integrated into the Company in 2011 to support regional expansion.

The Company transitioned to a public limited company in December 2024, enabling its Initial Public Offering (IPO) in December 2025. The IPO comprised 56,790,123 equity shares of face value of T2 per share at a price of T162 per share, aggregating to about T9,200 million, including a fresh issue of T7,700 million for debt reduction and expansion, and an offer for

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The registered office is located in Meera Enclave, New Delhi, while corporate operations are based at Park Tower in Udyog Vihar Phase 3, Gurugram. Operating under the Park Hospital brand, the Company is the largest private hospital chain in Haryana and the Tricity area and the second-largest in North India by bed capacity. It manages a network of 17 hospitals, with 16 accredited by NABH (the latest greenfield facility in Panchkula is undergoing the accreditation process), with nine facilities holding NABL certification (labs in 4 additional hospitals are being planned for the NABL accreditation process).

The Company focuses on delivering accessible, quality healthcare, particularly to middle and low income patients, with an emphasis on patient outcomes and operational efficiency. Its service portfolio spans over 30 specialities, including oncology, neurology, cardiology, and renal sciences. As of March 2026, the workforce comprises 1,168 doctors and 2,215 nurses.

Acquisitions-Led Expansion Strategy

Acquisitions continue to play an important role in the Companys network expansion strategy, enabling faster market entry, capacity addition and access to established healthcare catchments across North India. Out of the Companys 17 operational hospitals, 11 hospitals have been added through acquisitions, reflecting the Companys focus on acquisition growth strategy to strengthen its regional presence. The companys most recent acquisition was of a 330 bed, NABH compliant, hospital in Rudrapur, Uttarakhand. It is the largest hospital in the Kumaon region and was commissioned on 2 nd August 2026.

The Company follows a structured acquisition model focused on identifying operational hospitals with scalable infrastructure, established local presence and scope for clinical and operational improvement. The Company primarily evaluates acquisition opportunities in state capitals, district headquarters and locations adjacent to its existing network, enabling better integration, procurement efficiencies and operational coordination. This approach enables quicker operationalisation compared to greenfield developments, while supporting efficient capital deployment.

Proven Integration & Value Creation from Acquisitions

The expansion strategy has progressively extended the Companys presence beyond the Delhi-NCR region through the integration of established healthcare facilities. Our inorganic growth journey began in January 2014 with the acquisition of our Faridabad facility - a 150-bed hospital that marked our first step beyond setting up greenfield facilities and established the template for our acquisition- led expansion model. This was followed in April 2017 by the addition of our 150-bed Karnal facility, deepening our presence in the Haryana corridor. The year 2020 marked a step-up in acquisition scale - in April, we added Healing Touch Super Speciality Hospital in Ambala, a 250-bed facility with further expansion potential, and in November, Park Hospital Behror, a 300-bed facility that anchored our entry into Rajasthan. The pace of growth continued into 2021, with the acquisition of Park Hospital, Palam Vihar in Gurugram (225 beds) in February, followed in July by Nidaan Hospital, Sonipat (225

7s beds), further consolidating our cluster density across Haryana. In

on February 2022, we added Amar Medical and Research Centre in

ey Jaipur, a 250-bed facility that strengthened our Rajasthan footprint.

ity May 2023 saw one of our largest acquisition to date - Grecian

jp Super Speciality Hospital, Mohali (350 beds), which, alongside a

n- planned expansion of 150 beds, significantly elevated our presence

on in the strategically important Tricity region. Most recently, FY2026

oe brought two significant additions - Krishna Super Speciality

on Hospital, Bhatinda (250 beds) in July 2025, extending our Punjab

al cluster, and KP Institute of Medical Sciences, Agra (360 beds) in

od February 2026, marking our entry into Uttar Pradesh. The company

od most recently acquired and commissioned its 11 th hospital. A

1, 330 bed, NABH accredited hospital in Rudrapur, Uttarakhand.

25 The hospital was commissioned on 2 nd August 2026.

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During an acquisition, between definitive agreement signing and closing of the transaction, the Company undertakes refurbishment, hiring of new medical and non medical staff, infrastructure upgrades, expansion of super speciality offerings and integration of standardised clinical and operational processes across facilities. This approach supports quicker operationalisation, improved infrastructure utilisation and expansion of clinical capabilities across the network.

Alongside acquisitions, the Company continues to evaluate selective greenfield opportunities in high-growth healthcare markets to strengthen its regional presence and speciality offerings.

Competitive Advantage

What Sets Park Hospitals Apart: Our Unique Strengths

1. Affordable, Multi-Superspeciality Care from Day One

- Every Park hospital is multi-superspeciality hospital from the day it opens, delivering tertiary and quaternary care at price points that are genuinely accessible to the communities we serve.

2. Industry-Leading Capital Efficiency - Park Medi Worlds average capex of approximately Rs3.5 mn per bed stands at a significant discount to the industry benchmark of Rs9.5 - 10 mn and above - a differential that is not accidental but the product of deliberate and consistently applied operating principles. Efficient hospital layouts - where we accommodate more beds per square foot than peers while remaining fully NABH compliant, made possible by allocating approximately 40% of beds to general wards and 30% to critical care - disciplined sourcing of medical technology, and the selective deployment of high-value equipment allow us to create bed capacity at a fraction of what peers spend, without any compromise on clinical standards or patient outcomes. The downstream benefits of this capital efficiency are far-reaching - faster recovery of initial investment, stronger return metrics, and a business that is entirely capable of funding its own growth through internal accruals. Equally important, a lower cost base enables us to price our services accessibly for middle and lower income patients while simultaneously sustaining healthy operating margins.

3. Proven Distressed Asset Acquisition Playbook -

A refined, repeatable model for identifying, acquiring, renovating, and commissioning distressed hospitals within a very short period of time. 11 acquisitions have been completed till date.

4. Owned Asset Model - Almost all of the hospitals (land, building and equipment) are owned, not leased thereby eliminating rental expense of 6-7% of revenues and providing complete operational flexibility.

5. Cluster-Based Expansion Strategy - Geographically concentrated hospital networks that share specialist talent, diagnostic equipment, and procurement infrastructure which drives better asset utilisation, stronger margins, and deeper community brand presence.

6. Fully Funded Growth Runway to 5,740 Beds - Our

expansion to 5,740 beds by FY 2028 will be executed at

a blended capex of approximately Rs3.6 mn per bed which will be entirely funded through internal accruals, with no dependence on external capital or equity dilution. Growth at Park does not come at the cost of the balance sheet.

7. Exceptional Balance Sheet Strength and Access to Capital - As of FY26, the Company carries negligible gross term debt of H282 mn, generates net cash from operations of approximately H3,291 mn per annum, a figure expected to grow each year, and holds fixed deposits of H3,141 mn. With an unleveraged balance sheet, the Company retains significant debt-raising capacity. Additionally, with promoter holding at 82.9%, there is ample headroom to raise equity capital should an exceptional opportunity arise. This combination of internal generation, debt headroom, and equity flexibility give Park a funding optionality that few peers in the organised healthcare sector can match.

8. Industry-Leading Profitability and Return Metrics -

Park Hospitals delivers EBITDA margins of 26-27% and PAT margins of 16-17%, positioning it among the most profitable hospital networks in the organised sector. These margins are the structural outcome of a capital-efficient operating model built on owned assets, centralised procurement, a full-time consultant workforce, and cluster- driven operational leverage. Underpinning these margins is a Return on Capital Employed that reflects the quality and discipline of capital allocation across the network - a metric that will only improve as newly commissioned hospitals mature along their occupancy curves and the earnings contribution of the broader network compounds over time.

9. Full-Time Consultant Model with Industry-Lowest Attrition - Exclusively full-time doctors, available 24x7, measured only on patient satisfaction and clinical outcomes - with one of the lowest attrition rates in the organised sector.

10. Differentiated Hiring Philosophy -Focus on hiring the operating teams instead of marquee doctors - delivering equivalent clinical outcomes at a fraction of the cost, with far greater institutional loyalty.

11. Comprehensive Robotic and Advanced Clinical Capabilities - Five robotic surgical systems including two Da Vinci 5 th Generation Xi platforms, making Park one of the most comprehensively equipped robotic surgery networks in North India.

12. NABH and NABL Accreditation Across the Network

- 16 hospitals are NABH accredited (17 th hospital is undergoing accreditation) and nine major laboratories are NABL accredited (additional 4 are being planned for accreditation) - providing an institutional framework of quality, safety, and clinical governance.

13. Doctor-Led Management Structure - Clinical leadership remains closely integrated with operational decisionmaking, enabling stronger alignment between patient care priorities and hospital administration.

14. 63 DNB Medical Seats - A Teaching Institution at Scale - Government recognition of Parks clinical depth, teaching capability, and treating a large volume of patients helps in creating a natural internal talent pipeline and a culture of clinical excellence and continuous learning.

15. Cluster-Level Procurement and Vendor Relationships

- Centralised, bulk procurement through long-standing vendor relationships, with prompt payment terms that secure meaningful discounts - keeping opex and capex structurally lower than peers.

16. Multi-Channel Growth Model - A flexible growth toolkit combining inorganic acquisitions, greenfield development, and the newly introduced Operate and Manage model

- enabling capital-efficient expansion across diverse market contexts.

17. Deep Community Trust and Word-of-Mouth Driven Volumes - Patient volumes driven by clinical outcomes, affordability, and community trust rather than marketing spend or marquee doctor pull - creating a more durable and cost-efficient demand engine.

OPPORTUNITIES AND THREATS

Opportunities

1. Indias Healthcare Infrastructure Deficit

India continues to face a significant shortage of quality healthcare infrastructure, particularly across North India and underserved states. Uttar Pradesh, for instance, has bed density levels of nearly 12-13 beds per 10,000 population, creating a sizeable addressable market for tertiary and quaternary care expansion across cities such as Varanasi, Allahabad, Kanpur, Agra, Gorakhpur etc. The widening gap between healthcare demand and available infrastructure is expected to support long-term growth opportunities for organised hospital networks.

2. Rising Demand for Healthcare Services

Rising urbanisation, increasing healthcare awareness, higher disposable incomes, and improving access to organised healthcare are driving sustained demand for multi-speciality and super-speciality services. Demand for complex procedures, critical care, oncology, cardiac sciences, and transplant services continues to increase across both metro and non-metro markets.

3. Increasing Health Insurance Penetration

Expansion in private health insurance, employer-provided coverage, and government healthcare schemes is

improving affordability and broadening patient access to 5 organised healthcare providers. Industry estimates indicate

5 health insurance penetration in India may increase from

r nearly 40% to approximately 50% by 2026, supporting

f higher utilisation of elective and tertiary care procedures.

4. Evolving Disease Profile in India

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Indias disease burden is increasingly shifting towards non-communicable diseases such as cardiovascular disorders, cancer, diabetes, neurological ailments, and renal diseases. The growing prevalence of lifestyle-related illnesses is expected to support sustained demand for advanced diagnostics, robotic surgery, oncology, organ transplantation, and high-acuity healthcare services. f

5. Medical Tourism

India continues to strengthen its position as a cost-efficient destination for complex medical treatment, supported by experienced clinicians, advanced technology adoption, and competitive pricing relative to global markets. The deployment of robotic-assisted surgery systems, specialised oncology services, and advanced tertiary t care capabilities may support higher international patient

, inflows from neighbouring countries and other regions.

l 6. Growing Need for Healthcare Services Amidst Changing Demographics

Rising life expectancy, growth in the elderly population, increasing incidence of chronic illnesses, and greater , awareness regarding preventive healthcare are

contributing to higher long-term demand for quality healthcare services across India.

7. Expansion into Tier II and Tier III Cities

Limited availability of quality tertiary care infrastructure in smaller cities presents a meaningful expansion opportunity for organised healthcare providers. The Companys cluster-led expansion model and experience in scaling hospital operations may support deeper penetration across emerging urban centres while improving regional healthcare accessibility.

j 8. New and Emerging Healthcare Delivery Models

r Increasing adoption of asset-light healthcare formats

including operate-and-manage models, public-private partnerships, brownfield acquisitions, and hybrid expansion strategies is creating opportunities for faster and relatively capital-efficient network expansion across multiple geographies.

9. Increasing Public-Private Partnerships

, Government focus on expanding healthcare access

through collaboration with private healthcare providers is creating opportunities for participation in PPP-led hospital j projects, specialised healthcare infrastructure, diagnostics,

and regional healthcare development initiatives.

i 10. Digital Transformation

Growing adoption of telemedicine, electronic medical records, AI-enabled diagnostics, robotic-assisted surgery, remote patient monitoring, and digital healthcare platforms is reshaping healthcare delivery. Investments in advanced 5 technologies including iMARS robot-assisted surgery

systems and specialised oncology infrastructure may support higher clinical complexity, operational efficiency, and patient outreach.

11. Government Initiatives Strengthening Indias Healthcare Ecosystem

Continued government focus on healthcare infrastructure development, expansion of public healthcare insurance schemes, medical education, and digital health initiatives is expected to improve healthcare accessibility and strengthen the long-term outlook for organised healthcare providers.

12. Private Sector Leadership Driving Innovation and Growth in Healthcare

Organised private healthcare providers continue to play a significant role in expanding advanced clinical capabilities, introducing newer technologies, and improving healthcare access across underserved regions. Strong execution capabilities, operational scale, and access to capital position leading healthcare operators to participate in Indias expanding healthcare ecosystem.

Threats & Risks

1. Shortage of Healthcare Professionals

The healthcare industry continues to face a shortage of experienced doctors, nurses, paramedical staff, and specialised clinicians. Competition for medical talent across expanding hospital networks may increase employee costs and affect operational scalability.

2. Inadequate Healthcare Infrastructure

Constraints in healthcare infrastructure including ICU capacity, diagnostic infrastructure, specialist availability, and emergency care systems across several regions may create operational pressures as patient volumes increase.

3. Challenges in Healthcare Financing

Delays in insurance claim settlements, extended receivable cycles from institutional payors, and reimbursement delays under government healthcare schemes may impact working capital management and liquidity. Significant dependence on government-supported healthcare schemes may further increase collection cycle risks.

4. Regulatory Risks

The healthcare sector operates under stringent regulatory frameworks governing pricing, medical devices, pharmaceuticals, clinical protocols, accreditations, and hospital licensing. Changes in reimbursement rates, pricing controls by authorities such as the NPPA, or delays in obtaining and renewing critical licenses may affect profitability and operations.

5. Competitive Intensity

Expansion by large corporate hospital chains, regional healthcare providers, and government-backed medical institutions across North India may increase competitive pressures across key markets, potentially affecting occupancy ramp-up, pricing, and patient acquisition.

6. Integration and Ramp-Up Risk from Acquisitions

Expansion through acquisitions and brownfield integration involves operational and financial risks including delays in

commissioning, occupancy stabilisation, integration of clinical systems, and achievement of targeted profitability levels.

7. Rising Input and Operational Costs

Inflationary pressures relating to medical equipment, pharmaceuticals, consumables, utilities, employee expenses, and technology infrastructure may affect operating margins, particularly in an environment of regulated pricing and reimbursement constraints.

Operational Performance

The Company tracks operational efficiency through bed utilisation, patient throughput, and revenue generation per clinical unit. As of 31 March 2026, total bed capacity increased to 3,610 beds from 3,000 beds in March 2025, reflecting capacity expansion to address rising tertiary and quaternary care demand in North India. We added over 20% of our opening capacity or 610 beds in FY26 alone, and will be adding 59% capacity or 2,130 beds in FY27 and FY28. Operational beds as of 31 st March 2026 were 3,410. The network maintains a balance between critical care and general ward capacities, with 956 Intensive Care Unit (ICU) beds supporting high-acuity treatment. The bed occupancy rate improved to 64.1% for the year ended March 31, 2026, from 61.6% in the previous fiscal cycle, indicating stronger utilisation and improved case mix.

The ARPOB increased to T28,005 per day during FY 2025-26 from T26,206 in FY 2024-25, reflecting improved realisations. While this figure is lower than some competitors, the Company continues to prioritise affordability alongside volume-driven growth. The Average Length of Stay (ALOS) decreased to 6.28 days in FY26 from 6.53 days in FY25, indicating clinical efficiency and effective management of patient recovery pathways. ALOS has reduced from 7 days in FY23, a reduction of 10% over 3 years, which reflects 2 things. First, the growing adoption of robotic-assisted surgery across our network. Minimally invasive robotic procedures result in significantly less surgical trauma, lower infection risk, and faster post-operative recovery compared to conventional open surgery. Second, improvements in clinical protocols, post-operative care pathways, and the early mobilisation of patients have contributed to faster recovery across departments.

Surgical throughput is supported by c.100 advanced operating theatres located across 17 hospitals. The service mix continues to shift towards super-speciality care, with cardiology, neurosciences and urology contributing significantly to IPD revenues.

A notable aspect of the operational performance is the organisations integration with government health insurance schemes and Public Sector Undertakings (PSUs). Approximately 82% of the revenue for FY 2025-26 was generated from these schemes, including the Central Government Health Scheme (CGHS), Ex-Servicemen Contributory Health Scheme (ECHS), Employees State Insurance (ESI), Indian Armed forces, Central Armed Police Forces, Indian Railways, and other Public Sector Enterprises. It compares to 88.6% of revenue in FY25 from Government and PSUs, a drop of 656 bps year on year. This revenue model ensures a consistent volume of patients, particularly in Tier II and Tier III cities where private insurance penetration remains low but public coverage is expanding.

Meaningful Shift in Payor Mix

The Companys payor mix has undergone a significant and deliberate transformation over the past three years - one that reflects both the maturation of our hospital network and the conscious broadening of our patient base beyond government scheme beneficiaries. Government Schemes and PSUs, which accounted for 92.0% of revenue in FY23, have moderated to 82.0% in FY26 - a reduction of 998 basis points over three years. This moderation has been accompanied by a meaningful increase in the contribution of Self-Pay patients, which has grown from 4.0% in FY23 to 9.8% in FY26, and Insurance patients, which have grown from 4.0% to 8.2% over the same period. Together, the Self-Pay and Insurance segments now account for 18.0% of revenue - more than twice their combined share three years ago. This shift is significant for several reasons. Selfpay and insurance patients typically generate higher ARPOB than government scheme patients, improving revenue quality and supporting margin expansion. A more diversified payor mix also reduces concentration risk, insulating the business from the impact of any delays or changes in government scheme reimbursements. As our network matures, our brand recognition deepens, and our clinical capabilities in higher-acuity specialties expand, we expect this payor mix evolution to continue.

Payor Mix (as a % of Revenue)

Specialty Mix: A Deliberate Evolution Toward Higher- Acuity Care

The Companys specialty mix has undergone a consistent and meaningful transformation over the past four years - one that reflects the deliberate deepening of clinical capabilities across our network and the progressive shift toward higher-acuity, higher- complexity care. The six key superspecialties of Neurology, Urology, Gastroenterology, Cardiology, Orthopaedics, and Oncology collectively accounted for 56.9% of revenue in FY26, up from 49.2% in FY23 - an increase of 763 basis points over three years. Each of these specialties has grown its revenue share consistently over this period, with Cardiology showing one of the most impressive trajectories - growing from 7.5% in FY23 to 10.8% in FY26 - reflecting the significant investments we have made in interventional cardiology infrastructure and clinical talent across the network. Oncology has similarly

demonstrated strong momentum, growing from 4.9% to 6.4% over the same period, as our cancer care capabilities have expanded and deepened. Orthopaedics has grown from 5.4% te 6.3%, supported by the increasing adoption of robotic-assistec joint replacement procedures across our hospitals.

This shift has been mirrored by a corresponding reduction in the revenue share of Internal Medicine - from 41.2% ir FY23 to 29.5% in FY26 - a natural and healthy evolution as our hospitals mature and their superspeciality capabilitie strengthen. Internal Medicine remains an important entry poin into the Park network, directing patients toward the appropriate superspeciality care - but the growing proportion of revenue from complex, procedure-driven specialties is a direct drive of ARPOB improvement, margin accretion, and the overal elevation of clinical depth across our network. This trend i expected to continue as we invest further in robotic surgery organ transplantation, advanced oncology, and other high acuity clinical programmes in the years ahead.

Specialty Mix (% of Revenue)

I) Financial Overview - Profit & Loss Statement

The Company delivered a strong financial performance in FY26,

, with the highest Annual Revenue, EBITDA and PAT. Revenue i a

from operations grew 21% year on year to Rs16,794 million from Rs13,936 million in FY25. This growth was driven by a l combination of improved operating performance, across existing

l hospitals - reflecting higher occupancy levels and an increase l in Average Revenue Per Occupied Bed - and the addition of 3 two new hospitals in Bhatinda and Agra during the year. t

i EBITDA, excluding other income, grew 20% year-on-year to i Rs4,443 million in FY26, compared to Rs3,710 million in FY25.

r EBITDA margins remained broadly stable at 26.5%, as against

l 26.6% in FY25 - a resilient outcome that reflects the temporary

5 dilutive impact of the Bhatinda and Agra hospitals, currently in

,, their early ramp-up phase. Normalising for the drag from these - newly commissioned hospitals, the underlying margin profile of the mature network remains strong and is a direct reflection of the Groups structurally efficient operating expenditure framework and owned-asset model.

Profit After Tax grew 27% year-on-year to Rs2,736 million in FY2026, from Rs2,154 million in FY2025. PAT margins expanded by 83 basis points to 16.3%, compared to 15.5% in FY2025. This improvement was principally driven by a meaningful reduction in interest cost, following the deployment of IPO proceeds toward the retirement of existing term debt. With gross term debt now reduced to negligible levels, the Companys finance cost burden has declined significantly - converting a greater proportion of operating earnings into bottom-line profit.

Particulars (INR mn)	FY26	FY25	YoY Change %
Total Revenue	17,110	14,260	20%
Revenue from Operations	16,794	13,936	21%
Total Expenses	13,564	11,403	19%
EBITDA (ex Other income)	4,443	3,710	20%
EBITDA Margin % (ex Other income)	26.5%	26.6%	-16 bps
Profit before Tax (PBT)	3,546	2,857	24%
PBT Margin (%)	21.1%	20.5%	62 bps
Net Profit	2,736	2,154	27%
Net Profit Margin (%)	16.3%	15.5%	83 bps
EPS (INR)	6.87	5.60	23%

Balance Sheet

The balance sheet as of 31 st March 2026 reflects the same discipline and financial rigour that characterises Park Medi Worlds operating model. Gross term debt (excluding lease liabilities) stands at a negligible T282 million on a consolidated basis, and net debt (excluding lease liabilities) is negative Rs3,230 millions - meaning the Company is effectively net cash positive. Net operating cash flow for FY2026 stood at Rs3,291 million - a figure that provides full and self-sufficient funding visibility for the Companys stated growth plan to 5,740 beds by March 2028, without the need to raise any significant debt or equity dilution. During the year, the Company deployed Rs4,869 mn toward capex and acquisitions - a significant investment cycle encompassing

the Panchkula greenfield construction, the acquisition and commissioning of hospitals in Bhatinda and Agra, equipmenl upgrades across the network, and the acquisition of Febris Hospital in Narela, Delhi.

Debtor days improved significantly from 161 days in FY2025 to 129 days as of 31 st March 2026, reflecting a combination ol improved collections discipline, greater efficiency in government claims processing driven by digitisation and automation, and a continued focus on payor mix management. This improvement in working capital efficiency has been a meaningful contributor to operating cash flow during the year, and the structural factors driving it - particularly the ongoing digitisation of governmenl claims - are expected to sustain this improvement going forward, with debtor days expected to stabilise in the range of 110 days, plus or minus 5 days.

Particulars (INR mn)	FY26	FY25
Equity	864	769
Reserves	19,356	9,752
Non Controlling Interests	823	668
Net Worth	21,043	11,189
Non Current Liabilities
Non Current Borrowings	190	3,843
Lease Liabilities	1,314	564
Long Term Provision	137	107
Deferred Tax Liabilities	158	122
Total Non Current Liabilities	1,800	4,635
Current Liabilities
Current Borrowings	2,089	2,382
Lease Liabilities	49	33
Trade Payables	1,090	1,361
Short Term Provisions	745	808
Other Financial Liabilities	924	844
Other Current Liabilities	180	133
Current Tax Liabilities	212	7
Total Current Liabilities	5,289	5,568
Total Liabilities	7,089	10,204
Total Equity + Liabilities	28,131	21,392
Particulars (INR mn)	FY26	FY25
Non Current Assets
Fixed Assets	7,878	7,155
Capital work-in-progress	1,231	371
Goodwill	3,899	1,180
Right of use Assets	1,302	558
Other Intangible Assets	12	10
Financial Assets	1,864	1,106
Deferred Tax Assets	274	239
Other Non Current Assets	85	109
Non Current Tax Assets	709	326
Total Non Current Assets	17,254	11,054
Current Assets
Inventories	29	25
Trade Receivables	5,935	6,135
Cash & Bank Balance	4,314	3,608
Other Financial assets	301	381
Other Current Assets	299	189
Total Current Assets	10,878	10,338
Total Assets	28,131	21,392
102

Key Financial Ratios

Particulars	FY26	FY25	YoY Change	Reason for Change (in case change is >25%)
ROE% 1	17%	21%	-440 bps	Moderated due to equity raise
ROCE% 2	16%	18%	-201bps	at the end of Q3 FY26
Debtor Days	129	161	-32	Stronger collections during the year and Govt.s push towards timely payments
Current Ratio	2.1	1.9	0.2x
Gross Term or
Non Current Bank
Debt (including				Term Debt
Current maturity	282	4,580	-4,298 Repaid from
of non current borrowings) (INR mn)				IPO proceeds
				Term Debt
Net Debt 3 (INR mn)	-3,230	2,108	-5,339	Repaid from IPO proceeds & Strong cash generation
Interest Coverage Ratio 4	8.1	6.6	1.5	Repayment of debt and strong operational performance
Debt to Equity 5	0.2	0.6	-0.4	Repayment of debt and raising of funds through equity

1. RoE is calculated as profit after tax for the year divided by average total equity.

2. RoCE is calculated as a percentage of EBIT (before exceptional items) divided by capital employed. EBIT is calculated as profit for the year plus tax expenses and finance costs and excludes Other Income. Capital employed is calculated as sum of total equity plus total borrowings, plus lease liabilities, plus deferred tax liabilities, less deferred tax assets.

3. Net debt is total debt less cash and cash equivalents and long term unencumbered Fixed Deposits. Total debt includes current and non-current borrowings i.e. Term debt and Working Capital both and excludes lease liabilities.

4. Interest coverage = Profit before depreciation, interest and tax (PBDIT) / interest and finance charges

5. Debt to equity ratio is calculated as total debt divided by total equity. Debt includes lease liabilities

Growth Outlook: A Fully Funded, Clearly Defined Roadmap to 5,740 Beds

Park Medi World enters FY27 with a clearly defined and fully funded expansion roadmap. The Company is targeting a total network capacity of 5,740 beds by 31 st March 2028

- an addition of approximately 2,130 (including Panchkula and Rudrapur commissioned in FY27 so far) beds over the next two years - delivered through a calibrated combination of greenfield developments, capacity expansions, strategic acquisitions, and Operate and Manage arrangements. Growth will remain concentrated within the states where Park already has an established presence - namely Delhi, Uttar Pradesh, Punjab, Haryana and Uttarakhand - deepening cluster density, strengthening referral networks, and maximising the operational and commercial synergies that our model generates. The expansion will be executed across the following hospitals, in chronological order:

The Medicity Hospital, Rudrapur, Uttarakhand - 330 beds - August 2026

The recently announced acquisition marks our entry in the state of Uttarakhand making it the 6 th state where we now have presence. It is a well established multi super-speciality hospital, the largest in the Kumaon region, is NABH accredited, had a turnover of H 557 million in FY26 and is profitable. The hospital was commissioned on 2 nd August 2026.

Febris Multi-Superspeciality Hospital, Narela, Delhi - 200 beds - November 2026

Febris Multi-Superspeciality Hospital in Narela, Delhi is a 200- bed facility acquired by the Company in December 2025 under the provisions of the Insolvency and Bankruptcy Code. This acquisition deepens Park Medi Worlds presence in the National Capital Region, one of Indias primary medical tourism hubs, and takes our Delhi NCR capacity to 1,200 beds upon commissioning.

Park Hospital Platinum, Expansion of existing Healthcare Infrastructure in Palam Vihar, Gurugram, Haryana - 100 beds

- November 2026

We are expanding our footprint in Palam Vihar, Gurugram with Park Hospital Platinum - a 100-bed super-specialty facility set to commission in November 2026 under a 30 year lease structure, thus keeping the expansion, asset light. Our existing 225 bed facility in Palam Vihar delivered a revenue of H2,446 million at 86% occupancy in FY26. This addition lifts Parks consolidated Gurugram capacity to 750 beds. Anchored in high-acuity, tertiary disciplines, Platinum deepens Parks presence in a micromarket where it already holds clinical and brand equity-while broadening the regions access to complex, advanced care.

Mehar Hospital, Zirakpur - 150 beds - November 2026

The company has recently announced the acquisition of a 150 bed hospital in Zirakpur (part of the Tricity catchment) at a valuation of Rs1,070 million. This will take the groups bed capacity in the Tricity area to 1,000 beds.

Hospital in Gorakhpur, Uttar Pradesh - 400 beds - April

2027

Our 2 nd addition in the state of Uttar Pradesh will be a 400-bed hospital in Gorakhpur, operated under a 30-year Operate and Manage agreement. Together with Agra, this facility establishes Park Medi Worlds presence across 2 of Uttar Pradeshs most strategically important and populous healthcare markets - a state that ranks among the top five in India for non-communicable disease burden and where the demand for quality, affordable tertiary care significantly outpaces organised supply.

Mohali Expansion, Punjab - 150 beds - September 2027

The capacity expansion of our existing 350-bed Mohali hospital by 150 beds will take this facility to 500 beds - consolidating Park Medi Worlds position as the largest private healthcare service provider in the Tricity region of Mohali, Chandigarh, and Panchkula. This expansion leverages existing infrastructure, clinical teams, and brand presence, delivering incremental capacity at a significantly lower cost per bed than greenfield development.

Ambala Expansion, Haryana - 200 beds - October 2027

The expansion of our existing 250-bed Ambala facility by 200 beds will be dedicated entirely to oncology - including oncology radiation - addressing one of the most acutely underserved clinical needs across the Haryana-Punjab corridor. As cancer incidence continues to rise across North India, a dedicated oncology expansion in an established Park facility represents both a significant clinical investment and a meaningful step toward making advanced cancer care accessible and affordable in a geography where organised oncology infrastructure remains scarce.

Rohtak Greenfield Hospital, Haryana - 250 beds - January

2028

Our newest greenfield development - a 250-bed multisuperspeciality hospital in Rohtak - will be commissioned in January 2028, adding a strategically important node to our Haryana cluster and establishing Parks presence in one of the states most significant emerging district headquarters. Rohtaks proximity to Delhi NCR, combined with its rapidly growing population and limited organised healthcare infrastructure, makes it a compelling market for the Park model.

Capital Efficiency and Funding

The total incremental capex required to deliver this 1,780-bed addition (excluding Panchkula) is estimated at approximately Rs6,280 million. Critically, the entire expansion programme is expected to be funded largely through internal accruals and existing cash on books, with no major requirement for additional debt or equity dilution.

# Hospital	City	State	Beds	Type	Date of Commissioning
1 The Medicity Hospital	Rudrapur	Uttarakhand	330	Acquisition - Owned	Aug-26
2 Febris, Narela	Delhi	Delhi	200	Acquisition - Owned	Nov-26
3 Park Hospital Platinum	Gurugram	Haryana	100	Acquisition - Lease	Nov-26
4 Mehar Hospital	Zirakpur	Punjab	150	Acquisition - Owned	Nov-26
5 Lalji Superspeciality	Gorakhpur	Uttar Pradesh	400	Acquisition - O&M	Apr-27
6 Grecian Hospital	Mohali	Punjab	150	Expansion - Owned	Sep-27
7 Healing Touch	Ambala	Haryana	200	Expansion - Owned	Oct-27
8 Rohtak	Rohtak	Haryana	250	Greenfield - Owned	Jan-28

CSR, Sustainability, and HR Policies

The Company maintains a structured framework for corporate social responsibility and human resource management, aligning growth with community welfare and clinical excellence.

Corporate Social Responsibility

A dedicated CSR Committee oversees initiatives in healthcare awareness, community outreach and access to affordable medical services for underserved populations. CSR expenditure has remained consistent, with R61 million in FY26 and R59 million in FY25.

The wellness for all approach focuses on health camps, rural primary care and awareness programmes on non-communicable

diseases. These initiatives align with the Companys engagement in government health schemes by enabling patient identification and referral to its super-speciality network.

Human Resource Policies

The workforce includes 1,168 doctors and 2,215 nurses as of March 31,2026, supported by 843 allied health professionals and 2,197 support staff. The HR strategy prioritises full-time clinician recruitment to ensure care continuity and operational stability. The Company invests in leadership development, governance training and continuous medical education. Collaboration with international institutions enables doctors to engage in webinars and skill enhancement programmes, ensuring that the groups clinical practices align with global standards.

Subsidiary Performance (for year ending 31.03.26)

The Company operates through a decentralised structure and operated 15 hospitals as on 31 st March 2026.

Revenue in FY26

# Hospital	Subsidiary	City	State	Beds	Type	(INR mn)	Contribution %
1 Park Hospital, New Delhi	Park Medi World Limited	Delhi	Delhi	200	Greenfield	1,290	8%
2 Park Hospital, Sec 47, Gurugram, Haryana	Park Medicenters And Institutions Private Limited (PMCI)	Gurugram	Haryana	275	Greenfield	2,479	15%
3 Park Hospital, Faridabad, Haryana	Aggarwal Hospital And Research Services Private Limited	Faridabad	Haryana	150	Acquisition	802	5%
4 Park Hospital, Panipat, Haryana	Park Medicity India Private Limited (PMI)	Panipat	Haryana	175	Greenfield	929	5%
5 Park Hospital, Karnal, Haryana	DMR Hospitals Private Limited	Karnal	Haryana	150	Acquisition	342	2%
6 The Signature Hospital, Gurugram, Haryana	Park Medicity (North) Private Limited (PMCN)	Gurugram	Haryana	150	Greenfield	1,049	6%
7 Healing Touch Super Speciality Hospital, Ambala, Haryana	Blue Heavens Health Care Private Limited	Ambala	Haryana	250	Acquisition	1,722	10%
8 Park Hospital, Behror, Rajasthan	Kailash Super-Speciality Hospital Private Limited	Behror	Rajasthan	300	Acquisition	578	3%
9 Park Hospital, Palam Vihar, Haryana	Umkal Health Care Private Limited	Gurugram	Haryana	225	Acquisition	2,446	14%
10 Nidaan Hospital, Sonipat, Haryana	Narsingh Hospital & Heart Institute Private Limited	Sonipat	Haryana	225	Acquisition	1,208	7%
11 Amar Medical & Research Centre, Jaipur, Rajasthan	Ratangiri Innovations Private Limited	Jaipur	Rajasthan	250	Acquisition	949	6%
12 Park Hospital, Patiala, Punjab	Park Medicity (World) Private Limited (PMCW)	Patiala	Punjab	300	Greenfield	889	5%
13 Grecian Super Specialty Hospital, Mohali, Punjab	R G S HEALTHCARE LIMITED	Mohali	Punjab	350	Acquisition	1,974	12%
14 Krishna Super Speciality Hospital, Bhatinda, Punjab	Mahip Hospitals Private Limited	Bhatinda	Punjab	250	Acquisition	169	1%
15 KP Institute of Medical Sciences, Agra	K P S Wellness Private Limited, SVPD Healthcare Private Limited	Agra	Uttar Pradesh	360	Acquisition	84	0%
TOTAL				3,610		16,909 (1)	100%

(1) The reason for difference from reported figures is, additional INR 5 mn of revenue booked in Devina Derma & INR 120 mn of Intercompany elimination

Risk and Mitigation Strategy

Risk Name	Key Risk	Mitigation Strategies
Clinical Personnel Risk	High doctor attrition rate may affect continuity of care and clinical outcomes, degrading care quality	The Company focuses on full-time consultant hiring, structured training programmes and performance- linked incentives to improve retention.
Financial Counterparty Risk	High dependence on government schemes (around 82% of revenue comes from public schemes) may lead to payment delays and working capital pressure.	The Company is working towards increasing the share of private insurance and self-pay patients, reduce debtor days and strengthen the cash flow cycle.
Regional Concentration	Significant revenue concentration in Haryana and Delhi exposes the business to risks related to regional policy, economic or demand fluctuations.	The Company is expanding into new markets such as Uttar Pradesh, Punjab and Uttarakhand to diversify its geographic presence.
Acquisition Risk	Integration of acquired hospitals may face challenges related to clinical practices, culture, systems and legacy IT infrastructure.	Standard operating procedures and centralised oversight are used to align operations and improve efficiency across facilities.
Regulatory Risk	Operations require multiple licenses and approvals, including radioactive and clinical permits. Delays in renewals may disrupt service flow.	A structured compliance framework with periodic reviews to ensure timely renewals and adherence to regulations.
I Expansion Execution Risk	Large-scale expansion may face delays, cost overruns, slower occupancy ramp up and may temporarily dilute return metrics and profit margins.	The Company follows a phased expansion plan, backed by internal accruals and disciplined capital allocation.
Interest Rate Risk	Changes in interest rates or macroeconomic conditions may increase the cost of future borrowings.	The Company has reduced leverage post-IPO and maintains liquidity to limit dependence on external funding.

Internal Audit and Controls

Park Medi World Limited has established a robust risk management and internal control framework to safeguard patient safety and organisational integrity. This system is overseen by the Risk Management Committee of the Board, which is tasked with identifying potential financial, operational, and cyber vulnerabilities across all 17 hospitals. The committee periodically reviews the organisations business continuity plans and updates the risk mitigation protocols at least once every two years.

The internal control framework includes regular financial audits and continuous monitoring of operational KPIs. The Audit Committee, composed of experienced independent directors, ensures the transparency and accuracy of the groups financial reporting in compliance with Indian Accounting Standards. To manage the risks associated with legal and regulatory claims, the organisation utilises a comprehensive statutory compliance checklist that tracks the validity of all medical and environmental licenses.

Internal Control Feature	Mechanism of Implementation
Financial Integrity	Quarterly audits by Agiwal & Associates under Ind AS
Risk Governance	Oversight by Board Risk Management Committee
Clinical Quality	Adherence to NABH and NABL protocols across all units
Data Security	In-house IT team managing firewalls and EMR encryption
Ethical Vigilance	Whistleblower policy and internal vigilance department

The cybersecurity framework is managed by an in-house IT team that has implemented firewalls, data encryption, and strict access management protocols to protect sensitive patient records and medical history. The organisation also adheres to the Information Technology Act, 2000, and is managing the transition to full compliance with the Digital Personal Data Protection Act, 2023.

Clinical safety is maintained through a rigorous culture of accountability. Every hospital undergoes regular internal audits of its medical protocols, and the group has adopted a whistleblower policy to encourage the reporting of any ethical or clinical deviations. The persistence of these controls is evidenced by the groups ability to maintain its NABL and NABH accreditations even as it accelerates its operational scale.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied in such statements due to factors beyond the Companys control. The Company does not commit to publicly amend, change, or revise any forward-looking statements based on subsequent developments.