Tejnaksh Healthcare Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The Indian healthcare industry continues to be one of the key growth sectors of the Indian economy. The sector comprises hospitals, diagnostics, pharmaceuticals, medical devices, health insurance, telemedicine, digital healthcare and other allied healthcare services. The industry is witnessing structural growth on account of increasing healthcare awareness, changing demographics, rising life expectancy, increasing prevalence of lifestyle and chronic diseases, higher healthcare expenditure and growing demand for quality and specialised healthcare services.

The private sector continues to play a significant role in secondary, tertiary and specialised healthcare delivery. There is also increasing healthcare infrastructure development beyond major metropolitan cities, particularly in Tier-II and Tier-III markets, where demand for organised and quality healthcare services remains significant. Increasing insurance penetration and government-sponsored healthcare programmes are further supporting access to organised healthcare.

During FY 2025 26, the healthcare sector continued to witness increased investments in infrastructure, technology and specialised healthcare facilities. Digital healthcare, telemedicine, artificial intelligence, electronic health records, diagnostics and remote monitoring are increasingly becoming integral to healthcare delivery. The continued emphasis on healthcare infrastructure and digitalisation is expected to improve accessibility, efficiency and quality of healthcare services.

Government initiatives such as Ayushman Bharat, PM-JAY, PM-ABHIM and the National Health Mission continue to support healthcare accessibility, infrastructure development and wider insurance coverage. These initiatives, together with increasing private investment, are expected to contribute to the long-term development of the healthcare ecosystem.

OPPORTUNITIES AND THREATS

The healthcare sector offers significant opportunities arising from increasing healthcare expenditure, growing health insurance coverage, rising demand for specialised and preventive healthcare, expansion of organised healthcare in underserved markets and increasing adoption of technology.

For the Company, opportunities exist in strengthening its specialised healthcare services, improving utilisation of existing facilities, expanding its presence in emerging markets, developing new service offerings and leveraging technology to improve operational efficiency and patient experience. The growing demand for quality healthcare in Tier-II and Tier-III cities also provides opportunities for selective and sustainable expansion.

The principal challenges include intense competition, increasing medical and operating costs, shortage and retention of skilled healthcare professionals, regulatory and compliance requirements, high capital expenditure for expansion, dependence on specialised medical equipment and consumables, and increasing cybersecurity and data privacy risks. The Company continues to monitor these factors and undertake appropriate measures to mitigate their potential impact.

SEGMENT-WISE / PRODUCT-WISE PERFORMANCE

The Company operates principally in the Medical and Healthcare Services segment. The Companys operations comprise specialised healthcare services and related healthcare activities.

During FY 2025 26, the Company remained focused on improving healthcare delivery, enhancing patient experience, maintaining quality standards and optimising the utilisation of its available resources. As the Companys operations are primarily concentrated in a single business segment, separate segment-wise performance is not materially applicable. The overall performance of the business is reflected in the Companys financial results.

The Company continues to focus on strengthening its core healthcare capabilities and improving operational efficiency while evaluating opportunities for sustainable expansion in areas aligned with its expertise and resources.

OUTLOOK

The outlook for the Indian healthcare industry remains positive, supported by increasing healthcare awareness, demographic changes, growing insurance penetration, rising incidence of chronic diseases, infrastructure requirements and technological advancement.

The Company believes that the continuing development of organised healthcare, particularly in underserved markets, provides opportunities for sustainable growth. The Company intends to focus on strengthening its existing operations, improving utilisation of healthcare facilities, enhancing specialised services, adopting relevant technologies and exploring opportunities in attractive markets.

Management remains cautiously optimistic about the Companys prospects and will continue to balance growth initiatives with prudent capital allocation, operational discipline and appropriate risk management.

RISKS AND CONCERNS

The Company operates in an environment subject to various business, operational, financial and regulatory risks. Key risks include competition, changes in healthcare regulations, increasing manpower and medical costs, availability of skilled professionals, technology and cybersecurity risks, supply-chain disruptions and changes in healthcare demand.

Healthcare is a highly regulated and service-intensive industry, and maintaining appropriate quality and safety standards is critical. Any adverse regulatory development, operational disruption or reputational issue may affect the Companys performance.

The Company has established processes for identifying, assessing and monitoring key risks. Management periodically reviews material risks and undertakes appropriate mitigation measures to ensure business continuity and protect stakeholder interests.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Company has established an internal control framework commensurate with the size, nature and complexity of its operations. The internal control systems are designed to provide reasonable assurance regarding the reliability of financial reporting, safeguarding of assets, operational efficiency, prevention and detection of errors and fraud and compliance with applicable laws and regulations.

The Companys internal audit and management review mechanisms periodically evaluate key processes and controls. Significant observations, wherever identified, are communicated to the appropriate management level and corrective measures are undertaken.

Based on the assessments and reviews conducted during the year, the Company believes that its internal control systems are adequate and operating effectively.

HUMAN RESOURCES / INDUSTRIAL RELATIONS

Human resources remain a critical component of the Companys healthcare operations. The Companys ability to deliver quality services depends on the availability of qualified medical professionals, nurses, technicians, administrative personnel and other support staff.

The Company believes that development of a skilled and motivated workforce is essential for sustaining service quality and supporting future growth. Industrial relations during the year remained cordial and satisfactory, with no material industrial relations issues affecting the Companys operations.

OVERALL ASSESSMENT

FY 2025 26 continued to present a favourable long-term environment for the Indian healthcare sector. Increasing healthcare awareness, insurance penetration, government support, infrastructure development, technological advancement and demand for specialised healthcare are expected to remain key growth drivers.

The Company remains focused on strengthening its healthcare operations, maintaining high standards of quality and patient care, improving operational efficiency and pursuing growth opportunities in a disciplined manner. Management will continue to closely monitor industry developments and associated risks while maintaining focus on sustainable growth and long-term stakeholder value creation.