Royal Sense Ltd Management Discussions

1. INDUSTRY OVERVIEW

In compliance of Regulation 34(3) and 54(f) read with Schedule V of Securities Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations, 2015, please find Management Discussion and Analysis Report forming part of Annual Report.

At Royal Sense, we specialize in the supply of premium-quality products that adhere to international standards, catering to the needs of hospitals, laboratories, institutions, and clinics engaged in delivering healthcare services. Our extensive portfolio includes a broad range of surgical instruments, accessories, equipment, and related medical supplies. We also offer customization options to meet specific client requirements, ensuring flexibility across a diverse set of specifications.

1. INDUSTRY OVERVIEW

The Indian healthcare and pharmaceutical sector continue to experience robust growth driven by increased health awareness, rising demand for quality medical products, and government initiatives to improve healthcare infrastructure. The demand for diagnostic tools, pharmaceuticals, surgical accessories, and home healthcare devices remains strong, especially in the post-pandemic landscape where preventive healthcare and rapid diagnostics have become critical.

The Indian pharmaceutical industry is the third largest in the world by production volume and 14th by value, and continues to be one of the fastest-growing sectors of the Indian economy. India is widely recognized as the "Pharmacy of the World" due to its leadership in supplying affordable generic medicines globally. The industry comprises key segments such as generic drugs, over-the-counter (OTC) medicines, active pharmaceutical ingredients (APIs), vaccines, biosimilars, biologics, contract development and manufacturing (CDMO/CRAMS), and medical devices & surgical equipment. India is the largest global supplier of generic medicines by volume, accounting for around 20% of the worlds generic medicine exports, and produces over 60% of the global vaccine demand. The country has the largest number of USFDA-compliant pharmaceutical manufacturing plants outside the United States (over 262 facilities, including API plants) and nearly 1,400 WHO-GMP approved manufacturing units. The Indian pharmaceutical market is estimated at US$60.3 billion in 2026 and is projected to reach US$79.7 billion by 2031, supported by government initiatives such as the Production Linked Incentive (PLI) Scheme, increasing healthcare expenditure, and growing exports.

2. BUSINESS OVERVIEW

Royal Sense Limited stands as a beacon of innovation and excellence in the healthcare industry, specializing in medical device and pharmaceutical trading. Established in April 2023, our commitment is unwavering, aiming to provide cutting-edge solutions, superior products, and exceptional service to meet the evolving needs of healthcare professionals and patients globally.

Royal Sense has continued to strengthen its position as a trusted supplier of high-quality medical and healthcare products. The Company caters to a broad client base including hospitals, clinics, diagnostic laboratories, and healthcare institutions across India. With a strong commitment to quality, innovation, and compliance, Royal Sense offers a wide array of medical supplies and equipment tailored to meet international standards.

Core Business Segments:

Pharmaceuticals: Discover groundbreaking pharmaceutical solutions tailored to diverse healthcare needs. Our research-driven approach ensures the highest standards of safety and efficacy. Were committed to inclusivity, reflecting the rich diversity of patients we serve. Explore our range of innovative treatments, designed to improve quality of life and advance medical care. Our products Branded generics, specialty drugs, OTC medicines, biologics, biosimilars.

Surgical & Medical Equipment: We specialize in providing cutting-edge diagnostic tools, surgical instruments and disposables designed to empower healthcare professionals in making accurate and timely clinical decisions. We focus on precision, safety, and cost-effectiveness. Wide range of products including diagnostic devices and surgical consumables.

3. KEY BUSINESS HIGHLIGHTS - FY 2025-26

A. Product Expansion and Launches

During the financial year under review, the Company expanded its product portfolio significantly, launched products across multiple categories including pharmaceuticals, medical devices and healthcare accessories. Notable launches include:

Pharmaceuticals:

CPUDM CV
DFACORT 6 MG TABLETS
DFACORT SYRUP
U DROTRIN MF
STEROCIP 2
PHALAC I-DELAY
I-DELAY
IONFLAM GEL

B. Regulatory Milestone - US FDA Approval

During the year under review, the Company achieved a significant regulatory milestone by obtaining final approval from the U.S. Food and Drug Administration (U.S. FDA) on 15th April, 2025 in respect of the following categories of medical devices:

Nebulizer, Medicinal, Non-Ventilatory (Atomizer) - Nebulizer, Nebulizer Kit and Nebulizer Mask; Pump, Nebulizer, Electrically Powered - Portable Nebulizer; and Pump, Nebulizer, Manual - Nebulizer.

C. First Pharmacy Outlet

The first retail counter of Stergic Pharmacy, a business unit of Stergic Retail Private Limited, has been launched. This marks a significant step towards expanding the Groups presence in the retail healthcare and pharmaceutical segment and is expected to support future business growth.

4. RESEARCH & DEVELOPMENT

The Company has made focused investments in R&D to strengthen its product pipeline and introduce innovative offerings in the diagnostics and pharmaceutical segments. Customization of medical products to meet specific clinical requirements continues to be a key area of innovation.

5. Outlook for FY 2025-26

We aspire to be the premier provider of cutting-edge medical devices and pharmaceuticals, delivering impactful solutions that enhance patient care, improve health outcomes, and inspire trust worldwide. Building on its strong foundation, Royal Sense aims to:

Expand its domestic and global distribution network. Launch new therapeutic and diagnostic products. Explore strategic alliances and partnerships to strengthen its supply chain and technology base. Continue enhancing its regulatory capabilities to penetrate regulated international markets.

Through our unwavering commitment to our vision and values, we strive to make a meaningful difference in the lives of patients, healthcare professionals, and communities worldwide. Together, we are shaping the future of healthcare, one innovative solution at a time.

6. Risk Management

The Company remains vigilant in monitoring risks associated with supply chain disruption, regulatory changes, pricing pressure, and market competition. Contingency measures, diversification strategies, and quality assurance systems are in place to mitigate such risks effectively.

We are driven by a clear strategy, future-focused mindset, and a commitment to innovation, aiming to establish ourselves as a comprehensive, one-stop destination for customers seeking end-to-end solutions across the healthcare spectrum. Our offerings encompass medical equipment, surgical instruments and consumables, laboratory equipment and reagents, diagnostic tools, sanitary products, pharmaceuticals, medicines, and cosmetics—meeting the diverse and evolving needs of the healthcare industry.

We supply our products to the Ministry of Health of Various states like Uttar Pradesh, Himachal Pradesh, Rajasthan, Jammu & Kashmir and in domestic by our self or through distributors/sub-distributors. we also supply to both to Govt. Institutions and private hospitals in all over India.

7. Competition:

We operate in a highly competitive environment characterized by the presence of numerous unorganized players and a limited number of organized competitors. The absence of significant entry barriers in our industry increases the risk of competition from new entrants, further intensifying market dynamics.

Despite these challenges, we believe we are well-positioned to compete effectively, owing to the consistent quality of our products and our commitment to customer satisfaction. The key factors influencing competitiveness in our sector include the strength of client relationships, brand reputation, product quality, and pricing.

We actively compete with both organized and unorganized players to secure direct engagements with customers, and we continue to focus on enhancing our value proposition to strengthen our market position.

8. Prospect & Outlook

The management remains optimistic about the future prospects of the Company and anticipates strong performance in the current financial year. With continued support from our committed customer base and a steady increase in order volumes, the

Company expects a positive impact on its revenue growth and overall financial performance.

9. Discussion on Financial Performance with respect to Operational Performance

The details of the financial performance of your Company are reflected in the Balance Sheet, Profit & Loss Account and other Financial Statements, appearing separately. Highlights are provided below:

(Rs. In lakhs)

Particulars	Standalone 2026	Consolidated 2026
Revenue from Operations	3774.57	10337.59
Other Income	8.95	11.09
Total Income	3783.52	10348.68
Profit/(Loss) Before Tax	405.26	996.04

The financial performance of your Company has been further explained in the Directors Report of your Company for the year 2026, appearing separately.

10. Human Resources

The Company continually enhances its organizational structure and places strong emphasis on adopting best-in-class Human Resource practices. Continuous training and development programs are undertaken to strengthen management capabilities and improve overall operational efficiency.

Our objective is to foster a work environment where every individual is empowered to realize their full potential. Employees are encouraged to contribute their best efforts, and a culture of innovation is promoted to support both short-term goals and long-term strategic objectives.

The Company is proud to maintain a positive and collaborative work culture, with employees expressing high levels of satisfaction and enjoying a strong, respectful relationship with the management.

11. Cautionary Statement

This Management Discussion and Analysis contains certain forward-looking statements relating to the Companys expectations, objectives, projections, and outlook for the industry and its operations, which are based on current estimates and assumptions in accordance with applicable laws and regulations.

These statements are subject to inherent risks and uncertainties. Actual results may differ materially from those expressed or implied due to various factors including, but not limited to, fluctuations in market demand and supply, changes in input costs and availability, regulatory changes, taxation policies, judicial or governmental decisions, industrial relations, and broader economic and political developments.

The Company advises investors and stakeholders to exercise caution in interpreting and relying on these forward-looking statements, as they are not guarantees of future performance.

By order of the Board of Directors For Royal Sense Limited

Place: Delhi Dated: 17th July, 2026

sd/- Rishabh Arora (Managing Director) DIN: 09745543