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Hannah Joseph Hospital Ltd

| Annual Report 2025-26

Report Source

⬤18th Jun 26

Summary : Hospital achieved strong growth, expanded oncology services, and successfully listed IPO, indicating bullish outlook.

Annual Report Analysis & Insights

Financial Disclosures

  1. Total Expenditure increased by 13.28% to ₹7,652.41 Lakhs.
  2. Cost of materials consumed: ₹1,437.52 Lakhs.
  3. Employee benefits expenses: ₹974.73 Lakhs.
  4. Finance costs: ₹292.35 Lakhs.
  5. Depreciation and Amortisation: ₹674.64 Lakhs.
  6. Other expenses: ₹4,317.52 Lakhs.
  7. Trade Receivables Turnover Ratio (Days) decreased by 53.38% to 19 days (FY26) from 40 days (FY25).
  8. Reduction in trade receivables due to adjustment/set-off of advances.
  9. Credit risk from trade receivables is moderate.
  10. Revenue from operations increased by 18.73% to ₹9,205.17 Lakhs.
  11. Hospital and Clinical Services: ₹6,571.76 Lakhs.
  12. Sale of Medicine: ₹2,578.72 Lakhs.
  13. Sale of Food: ₹54.69 Lakhs.
  14. Net Cash From Operating Activities: ₹2,068.12 Lakhs (FY26) vs ₹1,941 Lakhs (FY25).
  15. Net Cash From Investing Activities: -₹1,408.40 Lakhs (FY26) vs -₹1,358 Lakhs (FY25).
  16. Net Cash From Financing Activities: ₹2,495 Lakhs (FY26) vs -₹290 Lakhs (FY25).
  17. Claims against company not acknowledged as debts.
  18. Applications filed for compounding of offenses under Companies Act.
  19. No material adverse effect expected from pending proceedings.
  20. No other money contingently liable; no capital commitments not provided for.
  21. Total Equity: ₹9,736.63 Lakhs (FY26) vs ₹5,193.67 Lakhs (FY25).
  22. Total Assets: ₹13,310.53 Lakhs (FY26) vs ₹9,663.18 Lakhs (FY25).
  23. Equity Share capital: ₹2,269.84 Lakhs (FY26) vs ₹1,669.84 Lakhs (FY25).
  24. Other Equity: ₹7,466.79 Lakhs (FY26) vs ₹3,523.83 Lakhs (FY25).
  25. Transactions with related parties were at arm's length and reviewed by Audit Committee.
  26. Details furnished in Form AOC-2.
  27. Includes professional fees, lease rent, loan repayment, interest paid, and managerial remuneration.
  28. The report is for Hannah Joseph Hospital Limited (standalone).
  29. The Company does not have any Subsidiary Company/Joint Venture/Associate Company.

Corporate Overview

  1. Madurai and across South Tamil Nadu, India.
  2. Manpower shortages.
  3. Pressure to reduce costs while meeting universal healthcare expectations.
  4. Managing effective budgets and regulatory compliance.
  5. Changes in healthcare regulations and increasing competition.
  6. Rising costs of medical equipment, technology, and manpower.
  7. Dependence on skilled medical professionals.
  8. Highly regulated healthcare environment.
  9. Healthcare services focusing on Neurosciences, Cardiac Sciences, Orthopaedics & Traumatology.
  10. Specialized care in Neurosciences and Trauma, expanding into Oncology.
  11. Operates a 150-bedded hospital facility.
  12. Positive and forward-looking, emphasizing continued support and value creation.
  13. Focus on strong operational fundamentals, clinical excellence, and continuous improvement.
  14. Individual patients
  15. Insurance companies
  16. Corporate customers
  17. Hospital and Clinical Services
  18. Sale of Medicine
  19. Sale of Food
  20. 150-bedded hospital facility.
  21. Average Bed Occupancy maintained at 57 beds.
  22. Initiated addition of Oncological (Cancer care) services.
  23. Building and equipping the Oncology department using IPO proceeds.
  24. Planning a branch of Pharmacy & Lab Services in K.K.Nagar, Madurai.
  25. Expanded infrastructure with a 150-bedded hospital facility in 2020.
  26. Unutilized IPO proceeds of ₹3425.00 lakhs invested in term deposits for future utilization.

Risk Factors

  1. Highly regulated healthcare environment
  2. Dependence on skilled medical professionals
  3. Intense competition from providers
  4. Rising medical equipment costs

Key Drivers

  1. Strong revenue and profit growth
  2. Expanding into oncology services
  3. Successful IPO listing on SME platform
  4. High demand for specialized healthcare

Auditor’s Report

  1. Unmodified opinion on true and fair view of financial statements.
  2. Unmodified opinion on adequacy and operating effectiveness of internal financial controls.
  3. Appropriateness of capitalization of costs.
  4. Test for impairment of Assets.
  5. Going concern basis of accounting.
  6. Materiality of misstatements in financial statements.
  7. No specific emphasis of matter section, but detailed compliance and internal control assessments are provided.

Board Commentary

  1. Dr. Arunkumar Nalina re-appointed as Non-Executive Director.
  2. No change in the composition of the Board of Directors during the period under review.
  3. Recommended a final dividend of ₹2/- per equity share for FY 2025-26.
  4. Represents 20% of the face value of ₹10/- per share.
  5. Subject to approval of shareholders at the Annual General Meeting.
  6. Risk Management Policy implemented and monitored.
  7. Adequate Internal Financial Controls in place.
  8. Vigil Mechanism Policy established for reporting concerns.
  9. No significant orders/material orders passed by Regulators/Courts/Tribunals.
  10. No material changes or commitments affecting financial position.
  11. No frauds reported by Statutory Auditors.
  12. No application or proceedings pending under Insolvency and Bankruptcy Code.
  13. No undisputed amounts payable in arrears for more than six months.
  14. IPO proceeds will support building and equipment for Oncology department.
  15. Unutilized IPO Proceeds of ₹3425.00 lakhs invested in term deposits.
  16. No estimated amount of contracts remaining to be executed on capital account.

Corporate Governance

  1. Vigil Mechanism Policy established for reporting concerns.
  2. Sexual Harassment of Women at Workplace (POSH) Policy in place.
  3. Code of Conduct for Directors and Senior Management Personnel.
  4. Prevention of Insider Trading Regulations compliance.
  5. Board is duly constituted with proper balance of directors.
  6. Independent Directors submitted declarations of independence.
  7. Independent Directors possess high repute, integrity, and expertise.
  8. Audit Committee.
  9. Nomination and Remuneration Committee.
  10. Stakeholder Relationship Committee.
  11. Corporate Social Responsibility Committee.
  12. Risk Management Committee.
  13. No specific governance concerns highlighted in the reports.

Management Discussion & Analysis

Future Strategy

  1. Furthering healthcare services in Neurosciences and Trauma.
  2. Adding Oncological (Cancer care) services.
  3. Establishing a branch of Pharmacy & Lab Services.
  4. Enhancing service offerings, strengthening clinical excellence, and maintaining high patient care standards.
  5. Emphasis on operational efficiency, cost optimization, and sustainable growth.

Industry Overview

  1. Positive outlook for healthcare industry.
  2. Growing demand for specialized care in neurosciences, cardiac sciences, and trauma management.
  3. Higher demand for advanced diagnostic facilities and complex surgical procedures.

Macroeconomic Outlook

  1. Indian healthcare industry shows resilient growth.
  2. Driven by increasing healthcare awareness, rising income levels, and insurance expansion.
  3. Shift towards preventive healthcare, digital health services, and specialized treatments.

Operational Focus Areas

  1. Patient-centric care, operational excellence, and continuous improvement in clinical outcomes.
  2. Attracting, retaining, and developing skilled medical professionals.
  3. Training, skill development, and continuous learning for clinical expertise.
  4. Promoting teamwork, accountability, and patient-centric care.

Performance Drivers

  1. Higher patient volumes and improved revenue realization.
  2. Enhanced operational efficiencies and focus on specialized healthcare services.
  3. Improved patient mix and better revenue realization.
  4. Improved asset utilization and operational efficiency.

Risk Control Measures

  1. Established appropriate risk management and internal control systems.
  2. Risk Management Committee frames, implements, and monitors policy.
  3. Internal control systems supported by regular internal audits.
  4. Vigil Mechanism Policy for reporting genuine concerns.
  5. Observations and recommendations from audits are reviewed periodically.

Critical Risks

  1. Operating in a highly regulated healthcare environment.
  2. Regulatory, operational, financial, and human resource-related risks.
  3. Clinical and operational risks from complex medical procedures.
  4. Dependence on skilled medical professionals and increasing competition.
  5. Rising costs of medical equipment, technology, and manpower.
  6. Risks related to patient safety and quality of care.