QMS Medical Allied Services Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION AND ANALYSIS REPORT </dhhead>

Industry Structure and Developments

Healthcare has become one of India’s largest sectors, both in terms of revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services, and increasing expenditure by public as well as private players.

India’s healthcare delivery system is categorised into two major components - public and private. The government, i.e., the public healthcare system, comprises limited secondary and tertiary care institutions in key cities and focuses on providing basic healthcare facilities in the form of Primary Healthcare Centers (PHCs) in rural areas. The private sector provides most secondary, tertiary, and quaternary care institutions with a major concentration in metros, tier- I, and tier- II cities.

Indias competitive advantage lies in its large pool of well-trained medical professionals. India is also cost-competitive compared to its peers in Asia and Western countries. The cost of surgery in India is about one-tenth of that in the US or Western Europe. The low cost of medical services has resulted in a rise in the country’s medical tourism, attracting patients from across the world. Moreover, India has emerged as a hub for R&D activities for international players due to its relatively low cost of clinical research.

Opportunities and Threats

QMS MAS sees significant opportunities in expanding its current offerings across existing and new institutional clients. Our online and retail business continues to grow, supported by our own consumer healthcare brand, Q Devices, which has maintained a positive growth trajectory during FY 2025-26.

The Indian healthcare industry is currently on the rise as there is significant investment from both the private and public space, with a specific interest in preventative healthcare as well as patient support solutions. QMS MAS stands ready with it’s wide range of offerings and highly trained and capable national workforce to attend to the requirements of our institutional clients in both the pharmaceutical and insurance domains.

The requirements for high quality diagnostic medical devices is also growing significantly amongst both medical practitioners as well as patients. QMS MAS with it’s extensive experience in validating, sourcing, importing & distribution of the same is perfectly placed to cater to these requirements and fulfil them with the highest quality of service and product.

Opportunities are rife for QMS MAS with a possibility of expansion into the hospital segment for product distribution as well as executing servicee projects with various state governments in the public domain. We will also look to be the first to acquire prime and innovative medical technologies that will supplement all our revenue lines including our product distribution, screening services and point of care distributions.

Segment/ Product wise Performance

During FY 2025-26, QMS MAS continued to strengthen its healthcare services portfolio, managing 106 camp projects and 20 Patient Support Programs (PSPs) across multiple therapy areas.

Our product distribution channel continues to remain an important contributor to revenue, with QMS associating with established healthcare brands and supplying a broad portfolio of medical and healthcare products. During FY 202526, our services division conducted a total of 32,380 screening camps across the country, contributing to preventive healthcare, patient engagement, early detection and continuity of care.

Our Point of Care Division, supported by its portfolio of devices and consumables, continues to serve institutional clients and remains an important part of the Company’s growth journey.

Future Outlook

QMS MAS is perfectly positioned to expand it’s business operations on a national scale. The healthcare is constantly growing due to influx of funds into healthcare infrastructure development as well as other delivery systems. This influx requires tertiary services to flourish such as high class medical technology as well as the requisite screening services, for which we stand ready.

Risk and Concerns

The risk factor that constantly looms over the healthcare industry in general is a change in government policy that may happen due to socio-economic or socio-political issues.

Price-caps, increase in red-tape and regulatory overhauls will affect sale and profitability. Increase on import duties for medical devices also tends to create a challenging environment to operate in.

Internal Control Systems and their adequacy

The Company’s internal control system is structured to ensure there is prevention of loss, no unlawful use and no disposal of its assets. There are stringent processes in place that are functioning with rigid oversight by management. The management is constantly informed of all transactions, all of which are authorised as per the relevant processes. The Company maintains its books of accounts and reports financial statements in accordance with all applicable accounting standards. The Company has hired internal auditors to examine several aspects of the Company’s operations. Management and the Board’s Audit Committee periodically evaluate the audit reports. Consequent to implementation of Companies Act, 2013 (Act), the Company has complied with the specific requirements in terms of Section 134(5)(e) of the Act calling for establishment and implementation of an Internal Financial Control framework that supports compliance with requirements of the Act in relation to the Directors’ responsibility statement.

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

The key highlights of the Companys standalone and consolidated financial performance for the financial year ended March 31, 2026, are summarized below:

Particulars	F.Y. 2025-26		F.Y. 2024-25
	Standalone	[Consolidated	Standalone	Consolidated
Revenue from Operations	15,229.73	17,287.65	14,486.74	15,601.41
Other Income	35.47	105.31	45.58	171.58
Total Income	15,265.20	17,392.96	14,532.32	15,772.99
Operating expenditure before Finance cost, depreciation and amortization	13,179.98	14699.88	12,154.79	13060.66
Earnings before Finance cost, depreciation and amortization (EBITDA)	2,085.22	2,693.08	2377.53	2,712.33
Less: Depreciation	350.97	393.93	339.83	382.54
Less: Finance Cost	789.03	655.16	595.53	463.58
Profit before Tax	945.22	1,643.99	LIGN=TOP> 1,442.17	1,866.21
Less: Current Tax	277.00	459.35	426.00	559.69
Less: Short/Excess provision for Income Tax	8.35	8.51	1.12	(14.66)
Less: Deferred tax Liability (Asset)	(9.21)	(15.55)	(27.01)	(48.66)
Profit after Tax	669.08	1,191.68	1,042.06	1,369.84
Less: other Comprehensive income	0	0	0	0
Total Comprehensive income	669.08	1,191.68	1,042.06	1,369.84

*Previous year figures have been regrouped / re-arranged wherever necessary.

The key aspects of the Companys performance during the financial year 2025-26 are as follows:

I. Standalone Performance

• For the financial year ended 2025-26, the Companys standalone revenue from operations reached Rs.15,229.73 Lakhs as compared to Rs.14,486.74 Lakhs recorded during the previous financial year 2024-25. This represents an increase of 5.13% over the previous year.

• The Companys standalone EBITDA stood at Rs.2,085.22 lakh during FY 2025-26 as against Rs.2,377.53 lakh in FY 2024-25, reflecting a decrease of 12.30%.

• The standalone Profit After Tax (PAT) stood at Rs.669.08 lakh for FY 2025-26 as compared to Rs.1,042.06 lakh in FY 2024-25, representing a year-on-year decline of 35.80%.

II. Consolidated Performance

• For the financial year ended 2025-26, the Companys consolidated revenue from operations was Rs.17,287.65 Lakhs, compared to Rs.15,601.41 Lakhs in the previous year 2024-25. This represents a growth of 10.81% over the previous year.

• The consolidated EBITDA stood at Rs.2,693.08 lakh for FY 2025-26 as compared to Rs.2,712.33 lakh in FY 202425, reflecting a marginal decrease of 0.71%.

• The consolidated Profit After Tax (PAT) was ^1,191.68 lakh during FY 2025-26 as against Rs.1,369.84 lakh in FY 2024-25, representing a year-on-year decline of 13.01%

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS

Our Company believe that our employees are key contributors to our business success and its ability to maintain growth depends to a large extent on our strength in attracting, training, motivating and retaining employees. We focus on attracting and retaining the best possible talent. Our Company looks for specific skill-sets, interests and background that would be an asset for its kind of business.

As of March 31, 2026, Our Company’s permanent workforce stood at 1037 employees. Our manpower is a prudent mix of the experienced and youth which gives us the dual advantage of stability and growth. Our work processes and skilled resources together with our strong management team have enabled us to successfully implement our growth plans.

Details of Significant Changes in Key Financial Ratios (>=25% change)

Ratio	Figures As At 31.03.202 6	Figures As At 31.03.202 5	% Change From Last Year	Explanation for Change in Ratio (for more than 25% in comparison with last year)
Debtors Turnover/Trade Receivables Turnover Ratio (Times)	2.70	2.75	-1.82%	No significant change during the year.
Inventory Turnover (Times)	2.24	2.07	8.21%	No significant change during the year.
Current Ratio (Times)	1.42	1.54	-7.79%	No significant change during the year.
Debt Equity Ratio (Times)	0.87	0.88	-1.14%	No significant change during the year.
Operating Profit Margin (%)	13.70%	16.41%	-16.51%	Decrease due to reduction in EBITDA margin during FY 2025-26.
Net Profit Margin (%)	4.38%	7.17%	-38.91%	Decrease in net profit margin due to lower profitability compared to previous year.
change in Return on Net Worth (%)	6.42%	11.84%	-45.78%	Decrease due to lower profitability and increase in shareholders’ funds.
Debt Service Coverage Ratio (Times)	1.99	2.20	-9.55%	No significant change during the year.
Creditor Turnover/Tra de Payables Turnover Ratio (Times)	5.52	5.11	8.02%	No significant change during the year.
Net capital turnover ratio (Times)	3.91	3.60	8.61%	No significant change during the year.
Return on Capital employed	8.17%	11.74%	-30.41%	Decrease due to lower return generated on capital employed.
Return on investment	0.00%	0.00%	0.00%	No change during the year.