Sastasundar Ventures Ltd Management Discussions

ECONOMIC OUTLOOK Global Economy

The global economy in FY 2024-25 continued to navigate a period of cautious recovery, marked by persistent inflation in some regions, moderated growth, ongoing geopolitical tensions and structural shifts in trade, technology and climate policy. Following a volatile post-pandemic cycle, the world economy has entered a phase of slower but more stable growth, supported by softening inflation, adaptive monetary policies and improving consumer and investment sentiment.

The International Monetary Fund (IMF) projected global GDP growth at approximately 2.9%-3.1% in FY 2024-25, a marginal improvement over the previous year. However, growth remains uneven across regions and sectors, with advanced economies experiencing deceleration, while emerging and developing economies continue to drive global momentum.

Global growth is projected at 3.0 percent for 2025 and 3.1 percent for 2026, which is below the historical average of 3.7 percent as per the July 2025 World Economic Outlook (WEO). Global headline inflation is expected to fall to 4.2 percent in 2025 and 3.6 percent in 2026, a path similar to the one projected in the April 2025 World Economic Outlook (WEO). The overall scenario does not reflect the differences among countries; however, the forecasts predicting inflation will remain above target in the United States and be more subdued in other large economies.

The Global Economic outlook largely hinges on the evolution of trade policy globally, growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a build-up of financial stress. Geopolitical tensions could disrupt global supply chains and push commodity prices up. Larger fiscal deficits or increased risk aversion could raise long-term interest rates and tighten global financial conditions.

On the upside, global growth could be elevated if trade negotiations lead to a predictable framework and a decline in tariffs.

Policies need to bring confidence, predictability, and sustainability by calming tensions, preserving price and ensuring financial stability, restoring fiscal buffers, and implementing much-needed structural reforms.

Indian Economy

India is set to dominate the global economic landscape, maintaining its status as the fastest-growing major economy for the next two fiscal years, i.e., 2025-26 and 2026-27. The June 2025 edition of the World Banks Global Economic Prospects (GEP) report projects Indias economy to grow at a steady rate of 6.4% in both FY26 and FY27, significantly outpacing global and regional peers, this remarkable performance underscores Indias resilience and its growing significance in shaping the worlds economic trajectory. However, risks to Indias GDP growth hinges around higher than expected US tariff on India, which can shave off growth between 0.20-1% depending on the final US tariffs imposed on India.

Inflation level in India dropped from 5.4% in FY 2024 to 4.9% in FY 2025, enhancing consumer confidence and spending, especially in rural areas. The RBI in its latest August 2025 meet reduced CPI expectation to 3.1% for FY2026 from 3.7% projected in its June 2025 meeting. Interest rate cuts were front loaded by 50bps to 5.50 in June 2025 and CRR were cut by 100bps to 3% in a phased manner effective September 2025 in a gradual manner. These measures coupled with a good monsoon is likely to boost economic growth led by consumption and investments.

The rural consumption remained robust during the reporting year, and the investment activities in India gained momentum. In the years ahead, the Indian economy is anticipated to experience positive growth, especially supported by strong investment activities and increased public expenditure by the Government of India. The revision in the income tax slabs is expected to augment disposable income and drive consumer spending. Favorable monsoon is likely to further boost domestic growth.

India remains a global outperformer with estimated growth of 6.4%-6.8%, led by strong domestic demand, infrastructure investment, and digital innovation. India is benefiting from global supply chain diversification and remains a key destination for capital inflows. In its latest policy meet, RBI expects FY2026 GDP growth at 6.5%, unchanged from its earlier projection in June 2025 Monetary Policy Committee (MPC) meet.

Industry Structure and Developments

Indian Domestic pharma Industry

The Indian pharmaceutical industry continued to demonstrate robust growth and resilience during FY 2024-25, underpinned by strong domestic demand, expanding healthcare access, government initiatives, and increasing awareness of preventive healthcare. India retained its position as the worlds third-largest by volume and fourteenth-largest by value, with the domestic market playing a critical role in sustaining long-term industry growth.

The Indian domestic pharmaceutical market grew by an estimated 9%-11% in FY 2024-25, driven by higher demand for chronic and specialty therapies, greater penetration in Tier II and Tier III cities, and a growing focus on branded generics and wellness products. As healthcare infrastructure continues to expand and per capita income improves, Indias pharmaceutical landscape is evolving rapidly, with increasing emphasis on innovation, compliance, and digital integration.

Indias pharmaceutical industry, valued at around US$58 billion, is projected to reach US$120-130 billion by 2030 and US$400450 billion by 2047. Growth is driven by rising lifestyle diseases, an aging population, increased focus on holistic health, and the growing consumerization of healthcare.

B2B Digital market to expand to USD 200 billion

Indias online B2B marketplaces have the potential to reach US$ 200 billion by 2030, according to sources.

Several factors are expected to contribute to this growth including increasing Internet penetration, growth of digital infrastructure, favorable regulatory policies, and a conducive cross-border environment. Additionally, instant payments through a Unified Payments Interface (UPI), formalization of businesses through Goods and Services Tax (GST), increased manufacturing activities through Production Linked Incentive (PLI) schemes, and companies adopting de-risk strategies for their supply chains will further contribute to the industrys growth.

As Indias economy is expected to grow from US$ 3.75 trillion to US$ 6 trillion over the next decade, a significant portion of this growth is anticipated to come from the digital economy, projected to expand from the current US$ 402 billion in FY2023, about 11.74% of GDP to almost 20% of Indias GDP by 2030. While the initial US$ 100 billion growth came from consumer digitization, the next substantial expansion is predicted to be driven by business digitization and online transactions, specifically through B2B online marketplaces.

E-pharmacy in India

E-pharmacy in India has rapidly transformed healthcare by making medicines easily accessible online. This growth is driven by the convenience of ordering medicines online, particularly beneficial for the elderly and those in remote areas, and the cost savings offered by various platforms. As of 2025, Indias e-pharmacy market continues its impressive surge, propelled by growing internet penetration, tech adoption, and evolving healthcare demands. Estimated at around US$ 4.50 billion in 2025, according to sources, with a CAGR of 44% from FY2019 at US$ 0.50 billion.

Despite this momentum, the e-pharmacy sector in India continues to grapple with several persistent challenges that could potentially impede its growth. A major concern is the regulatory ambiguity surrounding online pharmacies.This not only affects operational consistency but also discourages new entrants and investments in the sector. Data privacy and cybersecurity also remain critical issues. As e-pharmacies handle sensitive health and personal information, the risk of data breaches or misuse has raised alarms among both consumers and regulators. Ensuring robust data protection mechanisms is essential to building user confidence. Additionally, there exists a trust deficit among a significant portion of the population. Many users are still hesitant to rely on online platforms for medicines due to concerns about the authenticity of drugs, proper storage conditions, and whether prescriptions are being properly validated. Addressing these concerns through transparent practices, verified supply chains, and stronger oversight will be crucial in sustaining the sectors credibility and long-term growth.

Indian Healthcare & Diagnostic Market Outlook

The diagnostics industry has surfaced as a standout segment within Indias expanding healthcare ecosystem, underpinned by attractive margins and robust growth opportunities. This relentless growth is being driven by an aging population, a rising incidence of chronic diseases, increasing demand for preventive diagnostics, and supportive government policies such as the PLI scheme.

However, the market remains highly fragmented: standalone diagnostic centres continue to dominate, followed by private hospital-based laboratories, while national chains hold a modest 6% market share, highlighting both scalability challenges and ample headroom for consolidation. Pathology segments account for roughly 58% of the market, with 42% dominated by radiology services, including CT scans, MRI, nuclear imaging, and ultrasounds. This entrenched structure not only underscores the fragmented nature of the industry but also signals strategic opportunities for partnerships, consolidation, and model innovation in an increasingly competitive landscape.

SASTASUNDAR DIGITAL HEALTHCARE NETWORK

The Sastasundar Digital Healthcare business forms substantial part of its business.

The Company is a Core Investment company (CIC) and carry on business under subsidiary companies. The Material business is operating on digital platforms of healthcare, namely:

a) Sastasundar App - Consumer-focused digital healthcare platform consisting of pharmacy, diagnostics and wellness;

b) retailershakti.com - B2B digital platform for pharmaceutical and wellness products.

This business is being carried on by subsidiary, namely, Sastasundar Healthbuddy Limited (SHBL). The Company holds 72% shareholding of SHBL and balance 28% is being held by Mitsubishi Corporation and Rohto Pharmaceuticals Co., Ltd. of Japan.

The subsidiary company, Sastasundar Healthbuddy Limited which had earlier entered into the strategic partnership deal of B2C E-pharmacy with Flipkart Group has during the year, sold its entire stake and ended the partnership deal. Post completion of the deal, Sastasundar App has been launched, which is B2C platform for pharmacy, wellness and diagnostics.

For B2B operations, there is a digital platform in the name of RetailerShakti.com and RetailerShakti APP for medicine, wellness products and FMCG products. The operations are now PAN India and it leverage Digital Technology to expand data-driven efficient Supply Chain. The RetailerShakti supplies products to retail pharmacies and local stores.

Another vertical of healthcare is Diagnostic business. The Company has separate step down subsidiary called Genu Path Labs Limited to operate its diagnostic business. The Company is focusing on Eastern India initially for its diagnostic vertical.

OPPORTUNITIES & THREATS

Opportunities

1. We are working to expand and grow the network of seller pharmacies across PAN India.

2. We are working towards appropriate, accessible, affordable, scalable, and sustainable personal-centric digital health solutions.

3. We have an opportunity to solve one of the biggest problems of India, i.e., consistent access to affordable healthcare.

4. We have this opportunity to operate as a national distributor for international supply chain.

5. This is the occasion for us to continue to strengthen digital technology to expand data-driven efficient supply chain and appropriately leverage customer base and capital to grow.

6. Increased Digital Penetration even in Tier 2 and Tier 3 cities and in remote locations provides a lucrative opportunity. Threats

1. We operate in the domain of healthcare, which is highly regulated, and therefore, any adverse regulation may affect our growth.

2. We operate with a high-technology backbone, and therefore, data security is a threat.

3. We are subject to the risk of changes in technologies and/or the introduction of new technology, which calls for the need for constant technological upgradation.

4. Supply chain management and quality control are ongoing challenges.

OUTLOOK

The Indian healthcare sector is expected to grow significantly in the upcoming years. Rising income levels, an ageing population, growing health awareness, and a changing attitude towards preventive healthcare are expected to boost healthcare services demand in the future. The low cost of medical services has resulted in a rise in the countrys 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. The Government also aims to develop India as a global healthcare hub.

The gap in access to healthcare can be filled by the digital system of distribution, which is data-driven and efficient. The Company focuses on establishing the most efficient ecosystem both in terms of cost and consumer efficiency. Looking at the potential growth in pharmacy, diagnostic, and wellness, and the positive growth in use of digital medium, the managements outlook is positive.

RISKS AND CONCERNS

1. We work in a highly regulated environment, and therefore, any adverse regulatory changes pose a risk.

2. We carry the risk of mindless competition primarily based upon heavy discounts on the back of capital. Recent years have also marked the advent of online portals and web aggregators into parts of the diagnostic business value chain. In order to establish rapid salience, the new entrants are not shy of utilizing pricing as a marketing tool.

3. We carry the risk of a digital base and therefore, exposure to data security threats.

4. We are operating in a highly competitive and fragmented industry, and our business, financial condition, and results of operations may be adversely affected if we are not able to compete effectively.

5. We carry the risk of changes in technologies and/or the introduction of new technology could reduce demand or the failure of our equipment, information technology, and other technological systems.

6. Due to rising instances of self-medication, drug abuse, counterfeit and substandard drugs, ensuring product authenticity and traceability remains a challenge.

FINANCIAL PERFORMANCE

The segment wise consolidated financial performance on year-to-year basis is given below:

(Rs. In Lakhs except for EPS)

Revenue	FY 2024-25	FY 2023-24
Financial Services	2,284.16	2,095.26
Healthcare Network	1,08,811.30	1,35,475.67
Total Revenue	1,11,095.46	1,37,570.93
Other Income	5,984.05	6,041.04
Total Income	1,17,079.51	1,43,611.97
EBITDA before exceptional item	381.41	6,582.59
EBIT before exceptional item	(201.47)	5,668.80
Share of Profit/(Loss) of associates and joint ventures accounted for using equity method	(1,080.40)	(8,617.72)
Profit/ (Loss) before exceptional item and Tax	(1,303.59)	(3,049.84)
Exceptional Item	(19,062.91)	-
Profit/ (Loss) before Tax	(20,366.50)	(3,049.84)
Profit/ (Loss) after Tax	(13,354.30)	585.26
EPS	(28.66)	2.79

Details of significant changes in key financial ratios, along with explanation

In compliance with the requirement of the SEBI (Listing Obligations & Disclosure Requirements) (Amendment) Regulations, 2018, the key financial ratios of the Company along with explanation for significant changes (i.e., for change of 25% or more as compared to the immediately previous financial year will be termed as significant changes), has been provided hereunder:

Sl. No.	Particulars	FY 2024-25	FY 2023-24
1	Debtor to sales (in days)	-	-
2	Inventory to Turnover Ratio (in Months)	-	-
3	Interest Coverage ratio	-	-
4	Debt Equity ratio*	-	-
5	Operating profit Margin (%)	-	-
6	Net Profit Margin (%)	-	-
7	Return on Net Worth (%) **	(0.27%)	(0.32%)
8	EPS- Basic and Diluted	(0.22)	(0.28)

* There is no borrowing in the Company.

** The changes in Return on Net Worth has been recorded on account of extraordinary exceptional items recorded in the previous year.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your company has an adequate Internal Audit and Control system across all businesses. The internal control systems provide, among other things, reasonable assurance of recording transactions of operations in all material respects and of providing protection against significant misuse or loss of company assets. Your company believes in the conduct of its affairs in a fair and transparent manner by adopting the highest standards of professionalism, honesty, integrity, and ethical behaviour. The internal processes have been designed to ensure adequate checks and balances at every stage. Internal audit is conducted to assess the adequacy of our internal controls, procedures, and processes, and the Audit Committee of the Board reviews their reports. Policy and process corrections are undertaken based on inputs from the internal auditors.

HUMAN RESOURCES

Your company was able to grow last year only because of the employees of the company and their hard work. The group employed a total 1,657 employees in the last year. Your company also utilizes independent contractors and temporary personnel to supplement our workforce, if required. The relation of the employees with your company is considered good.