Universus Photo Imagings Ltd Management Discussions

1. COMPANY OVERVIEW

The Company officially became a public limited entity in November, 2011. As a demerger of Photo Films business of Jindal Poly Films Limited into the company, resulting in the establishment of Universus Photo Imagings Ltd. This transition, effective from April 1 st , 2019, also included the integration of Photographic products and related ventures under Universus Photo Imagings Limited. Prior to this period, the Company was not engaged in any manufacturing or business activities.

Presently, the Company operates a cutting-edge manufacturing facility for X-Ray Films and other assorted products situated in Dadra (UT-Dadra and Nagar Haveli).

2. GLOBAL ECONOMY

In 2025, the global economy recorded resilient yet uneven expansion, with global GDP growth estimated at around 3.4%, reflecting a broadly stable outlook despite multiple divergent forces. Key advanced economies experienced moderate growth, while many emerging markets grew above 4%, keeping the world economy on a steady path. Fiscal policy remained generally measured across major economies, with governments balancing consolidation with targeted support to sustain investment and long-term competitiveness. Monetary conditions gradually eased as inflation moderated, although the pace of disinflation continued to vary across regions, prompting central banks to normalise rates cautiously. Private-sector investment strengthened, driven by surging investments in the technology domain. At the same time, earlier trade realignments and evolving industrial policies continued to reshape global production networks. Geopolitical tensions, tariff-linked trade realignments and supply chain vulnerabilities, remained the most significant watch-outs for the global outlook, with the potential to re-ignite volatility in energy markets, capital flows and global demand.

Technological innovation and digital transformation remain key drivers of economic change. Advances in artificial intelligence, green energy, and other emerging technologies are reshaping industries and creating new economic opportunities. Sustainability and climate action have gained increased attention, with governments and businesses ramping up investments in renewable energy and green technologies, expected to be integral to future economic growth.

Labor markets worldwide are experiencing shortages and skills mismatches, alongside shifting worker preferences such as the rise of remote work, reshaping workforce dynamics. High levels of public and private debt in numerous countries pose ongoing concerns, requiring careful management to balance fiscal sustainability with growth objectives.

3. INDIAN ECONOMY

FY 2025-26 was a year in which India reinforced its position as one of the worlds fastest-growing major economies, supported by robust GDP growth of around 7.4%, resilient domestic demand and sustained public investment. Despite global economic uncertainties, the countrys strong macroeconomic fundamentals continued to create a favourable environment for industries linked to healthcare, diagnostics and medical infrastructure.

The healthcare sector benefited from ongoing investments in medical infrastructure, expansion of diagnostic facilities and growing access to healthcare services across both urban and rural markets. Rising healthcare awareness, increasing demand for diagnostic imaging and the continued expansion of hospitals and diagnostic centres supported demand for medical consumables and imaging products, including X-ray films. Government-led initiatives to strengthen healthcare delivery and improve access to affordable medical services further contributed to sectoral growth.

Policy support remained a key driver of economic activity during the year. The Government maintained a growth-oriented yet fiscally prudent approach, with continued emphasis on infrastructure development, healthcare capacity enhancement, domestic manufacturing and technology adoption. Investments in healthcare infrastructure, particularly in Tier II and Tier III cities, created additional opportunities for diagnostic service providers and healthcare product manufacturers. Measures aimed at improving ease of doing business and strengthening domestic manufacturing capabilities also supported the operating environment for companies engaged in the production and distribution of X-ray films and related imaging solutions.

The monetary environment turned increasingly accommodative as inflation moderated, enabling the Reserve Bank of India to reduce policy rates and support liquidity conditions. Improved credit availability and lower borrowing costs encouraged investment across healthcare institutions and diagnostic centres, supporting capacity expansion and equipment upgrades. These developments positively influenced demand for diagnostic consumables and imaging products.

However, challenges persisted during the latter part of the year. Escalation of geopolitical tensions in the Middle East contributed to volatility in crude oil prices, increased logistics costs and supply chain disruptions. Continued depreciation of the Indian Rupee also exerted pressure on the cost of imported raw materials and components used in the healthcare and imaging products industry. Nevertheless, resilient domestic demand, expanding healthcare infrastructure and supportive government initiatives helped sustain growth momentum.

Overall, Indias economic landscape continued to demonstrate resilience and adaptability, providing a supportive backdrop for the X-ray film industry. Growing healthcare investments, expanding diagnostic services and rising demand for quality medical imaging solutions are expected to create favourable long-term growth opportunities for the sector.

4. INDUSTRY OVERVIEW

The radiology field in India is growing, India is witnessing rapid growth in both the healthcare and medical radiology industries. Numerous hospitals, nursing homes, medical laboratories, and diagnostic centers are being set up to meet the healthcare needs of the growing Indian population.

The market size of wet films is approximately 10 lakh sq. mt. per annum. Demand continues to exist in selected segments; however, the overall market remains under structural pressure due to the increasing adoption of digital imaging technologies. Demand continues to exist in selected Government institutions, smaller healthcare facilities, Tier III and Tier IV markets and certain export destinations. Analog machines continue to be supplied by some manufacturers and various State Governments continue to procure conventional X-Ray Films through tenders; however, the overall market remains under structural pressure due to increasing digitalization.

Apart from this, we are also exploring business in some foreign countries like in Africa and are constantly trying to expand this market.

We are also trying to venture in other field of healthcare industry except Radiology.

5. BUSINESS OVERVIEW AND OPERATIONAL CAPACITY

The Company is engaged in the manufacturing, conversion, distribution, and sale of X-Ray films and NTR (Non-Tearable) films in both matte and glossy finishes. NTR films, known for their durability and high-quality finish, find extensive applications across various segments including photo albums, certificates, playing cards, gift cards, visiting cards, calendars, menu cards, wedding invitations, and modeling portfolios.

The Company procures Jumbo Rolls of X-Ray films and undertakes slitting and packaging operations at its dedicated unit located in Dadra. This facility has an installed monthly capacity of approximately 300,000 square meters, enabling the Company to efficiently meet diverse size requirements across its customer base.

Market Dynamics and Strategic Outlook

With the continued adoption of digital imaging technologies, demand for conventional Medical X-Ray Films has been undergoing structural transformation worldwide. The Company remains focused on serving selected customer segments while maintaining operational efficiency, inventory optimization, working capital discipline and value realization from the existing business.

Simultaneously, the Company is actively evaluating diversification opportunities in healthcare, diagnostics, medical imaging and other value-added product categories by leveraging its manufacturing capabilities, technical expertise and established distribution network.

This balanced strategy is expected to strengthen the Companys long-term sustainability while effectively managing the ongoing transition within the conventional Medical X-Ray Film industry.

Business Outlook

The conventional Medical X-Ray Film market continues to undergo structural transformation with increasing adoption of digital imaging technologies. Nevertheless, demand continues to exist in selected Government institutions, smaller healthcare facilities, Tier III/IV markets and certain export markets. The Company will continue to manage the existing business prudently with focus on operational efficiency, inventory optimization, value realization and working capital discipline, while simultaneously evaluating opportunities in broader healthcare, medical imaging and other value-added product segments.

Analog Radiology - Relevant in Selected Market Segments

Reliable & Accessible: Analog X-ray machines and films remain the most widely used diagnostic tools in semi-urban and rural India, as well as in select international markets.

Cost-Effective: For smaller clinics and nursing homes, analog continues to be the most affordable way to deliver essential healthcare.

Simple & Durable: Film-based imaging does not rely on complex IT systems, electricity back-ups, or costly upgrades. It ensures consistent results, even in resource-constrained environments.

6. FINANCIAL PERFORMANCE

The following are the key financial highlights for the period ended 31st March 2026.

(In Rs Lakhs.)

Particulars		2025-26		2024-25
	Standalone	Consolidated	Standalone	Consolidated
Total Income	3,971.81	3,971.81	6,682.79	7,685.91
Profit from Operations (before Depreciation,	2,065.26	2,065.26	4047.70	4047.70
Exceptional Items and Tax)
Exceptional Items +/(-)
Share of Net Profit/(Loss) of associate		(9,919.54)		5526.98
Profit before tax	2,053.22	(7,866.33)	4,034.41	9561.38
Profit after tax for the year	1,925.91	(7,993.63)	3,174.52	8701.50

7. CHANGE IN KEY FINANCIAL RATIOS

The details of changes in key financial ratios as compared to previous Financial Year are stated below:

Sr. No. Particulars	2025-26	2024-25	Change %
1 Debtors Turnover	24.30%	14.87%	63.37%
2 Inventory Turnover Ratio (in times)	3.30%	2.78%	18.56%
3 Current Ratio (in times)	260.07%	180.59%	44.01%
4 Debt Equity Ratio (in times)	NA	NA	NA
5 Interest Coverage Ratio	NA	NA	NA
6 Net Profit Ratio	102.57%	129.07%	-20.53%
7 Operating Profit Margin	108.71	164.56%	-33.94
(Profit before Depreciation and Tax) (%)
8 Return on Capital Employed (in %)	3.02%	6.07%	-50.32%

8. RISKS AND CONCERNS

Presently the Company is engaged in the business of manufacturing, selling & distributing X-Ray films and due to shrinking business of X-Ray Films Business and increase in digitalization, it may be difficult for the Company to sustain in market unless new products will be launched in the future. In addition to above said, the Company has identified following categories of risks associated with the business: political, social, and economic risks, market risk, technology selection risk, capital structuring risk, exchange and interest rate risk, credit risk, liquidity risk, foreign currency risk, and commodity price risk. The Management evaluates these risks prior to making decisions in these areas.

9. OPPORTUNITIES AND THREATS Opportunities

The company stands to benefit significantly from Indias rapidly evolving healthcare landscape. Embracing technological advancements, such as digital health platforms and AI-driven diagnostics, positions the company to stay competitive and improve service delivery. The resumption of OPD services and growing awareness of health insurance are expected to drive increased patient volumes and revenue stability.

Continued investments in modern medical technologies ensure high-quality care and operational efficiency. Indias MedTech sector, currently valued at $14 billion and expected to reach $30 billion by 2030, is rapidly emerging as a global force. Ranked 4th in Asia and among the top 20 worldwide, India has surpassed $4 billion in medical device exports, driven by innovation, cost-effective manufacturing, and government initiatives like Make in India and Aatmanirbhar Bharat.

Key growth enablers include a large domestic healthcare market, skilled workforce, strong R&D, medical tourism, improved infrastructure, and increasing foreign investments. However, there is a crucial need to boost domestic production of capital equipment like CT and MRI machines to reduce import reliance.

We are also contributing to this vision, equipped with strong facilities, there is immense scope for expansion. Additionally, a thriving ecosystem of over 4,000 health-tech startups and supportive government initiatives create further opportunities for strategic growth and innovation.

THREATS

- Occurrences such as the Russia-Ukraine conflict and evolving regulatory changes introduce market uncertainties and pose challenges in maintaining compliance.

- The swift shifts in consumer preferences, economic circumstances, and global trade dynamics necessitate a capacity for adaptability to ensure sustained growth.

- Covid pandemic has created havoc on business, need to explore different technology to grow.

10. SEGMENT PERFORMANCE

The Company has one business segment namely photographic product which recorded revenue of Rs. 1,877.66 lacs and Profit after tax of Rs. 1,925.91 lacs in F. Y. 2025-26.

11. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The company is having sufficient industry professionals to carry out its operations and follows good management practices. These are basically its human resources assets and integral to the Companys ongoing success. They have played a significant role and enabled the Company to deliver superior performance. The total number of employees in the Company stands at 38.

11. INDUSTRIAL RELATIONS

During the year under review, harmonious industrial relations were maintained in your Company.

12. INTERNAL CONTROL SYSTEM

The company has a proper and adequate system of internal controls and that all assets are safe guarded and protected against loss from unauthorized use or disposition, and all the transactions are authorised, recorded and reported correctly. Management continuously reviews the internal control systems and procedures to ensure orderly efficient conduct of business. The review included adherence to the management policies and safeguarding the assets of the company.

The company ensure that adequate systems are in place for an effective internal control. The audit findings are reported on a quarterly basis to the Audit committee of the Board headed by a non-executive independent Director.

13. SUSTAINABILITY INITIATIVES AND CORPORATE SOCIAL RESPONSIBILITY

Our company places a strong emphasis on environmental responsibility by implementing sustainable practices throughout our operations. This includes energy conservation, waste reduction, and water management strategies. We also engage with local communities through social development programs focusing on education, healthcare, and environmental awareness. This commitment to sustainability creates lasting value for stakeholders and contributes to a greener, more socially responsible future.

14. RESEARCH AND DEVELOPMENT

Research and development (R&D) play a crucial role in our companys growth and innovation. We have a dedicated R&D team that continuously explores new technologies, materials, and processes to enhance our product offerings. Our R&D initiatives focus on improving product quality, developing new applications, products to address emerging market trends. Through collaboration with industry experts, academic institutions, and customers, we stay at the forefront of technological advancements. By investing in R&D, we aim to meet evolving customer needs, drive product innovation, and maintain our competitive advantage in the market.

15. CAUTIONARY STATEMENT

Statement in this Management Discussion and Analysis Report describing the Companys objectives, projections, estimates and expectations may be a forward looking statement within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied.