💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew by 104.55% YoY to INR 20.47 Cr for the half-year ended September 30, 2025, compared to INR 10.01 Cr in the previous year's corresponding period. Standalone sales and other income for FY24 grew 11.07% to INR 13.05 Cr.

Geographic Revenue Split

100% of revenue is derived from Gujarat, India, specifically from hospital operations in Keshod and pharmaceutical distribution via its subsidiary.

Profitability Margins

Consolidated Net Profit Margin for the half-year ended September 30, 2025, was 4.84%, a significant decline from 15.86% in the same period of the previous year. FY24 standalone net profit was INR 2.70 Cr (20.6% margin).

EBITDA Margin

Consolidated Profit Before Tax (PBT) margin for HY Sept 2025 stood at 6.26% (INR 1.30 Cr) compared to 21.17% (INR 2.28 Cr) in HY Sept 2024, indicating a sharp rise in operating costs relative to revenue.

Capital Expenditure

The company has projected a total capital expenditure of INR 8.10 Cr for the expansion of the Keshod Hospital. As of September 30, 2025, INR 5.37 Cr has been utilized for this expansion.

Credit Rating & Borrowing

Not disclosed in available documents; however, finance costs were reported as zero for the half-year ended September 30, 2025, suggesting minimal interest-bearing debt.

⚙️ Operational Drivers

Raw Materials

Medical consumables and pharmaceutical stock-in-trade represent the primary inputs, accounting for 63.37% of total revenue (INR 13.11 Cr) for the half-year ended September 30, 2025.

Import Sources

Primarily sourced from domestic distributors within Gujarat and other Indian states to support hospital and pharmacy operations.

Key Suppliers

Ankur Distributors (subsidiary) handles a portion of pharmaceutical procurement; other specific third-party medical suppliers are not named.

Capacity Expansion

Current expansion is focused on the Keshod Hospital facility (INR 5.37 Cr spent of INR 8.10 Cr budget) and a planned expansion in Veraval to increase bed capacity and service range.

Raw Material Costs

Purchases of stock-in-trade increased by 264.35% YoY to INR 13.11 Cr in HY Sept 2025, significantly outpacing revenue growth and impacting overall profitability.

Manufacturing Efficiency

Capacity utilization metrics for hospital beds are not disclosed, but depreciation increased to INR 0.34 Cr in HY Sept 2025, reflecting new asset commissioning.

Logistics & Distribution

Distribution costs are integrated into the pharmaceutical segment's operating expenses; specific logistics percentages are not disclosed.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through the expansion of existing hospital infrastructure in Keshod and Veraval using IPO proceeds. The strategy includes increasing bed capacity, enhancing diagnostic capabilities, and leveraging the pharmaceutical distribution network of Ankur Distributors.

Products & Services

Healthcare services including inpatient and outpatient treatments, surgical procedures, diagnostic services, and pharmaceutical products sold through retail and wholesale channels.

Brand Portfolio

Sangani Hospitals, Ankur Distributors.

New Products/Services

Expansion of specialized medical departments in the Keshod facility is expected to contribute to higher average revenue per occupied bed (ARPOB).

Market Expansion

Expansion into the Veraval region is a key objective of the IPO proceeds to capture regional healthcare demand in coastal Gujarat.

Market Share & Ranking

Not disclosed; operates as a regional healthcare provider in the Saurashtra region of Gujarat.

Strategic Alliances

The company operates with its subsidiary, Ankur Distributors, to integrate the healthcare supply chain.

🌍 External Factors

Industry Trends

The healthcare sector is shifting toward technology-driven delivery and increased insurance penetration. Sangani is positioning itself by upgrading infrastructure to meet evolving patient needs in semi-urban areas.

Competitive Landscape

Competes with local private clinics and government hospitals in the Junagadh and Veraval districts.

Competitive Moat

The company's moat is based on its established regional presence and the high 'switching cost' associated with trusted local medical practitioners. Sustainability depends on maintaining clinical outcomes and managing rising procurement costs.

Macro Economic Sensitivity

Highly sensitive to healthcare spending trends in India and changes in government health schemes (e.g., Ayushman Bharat) which can affect patient volumes and reimbursement rates.

Consumer Behavior

Increasing preference for organized healthcare facilities over smaller clinics in rural and semi-urban India.

Geopolitical Risks

Low direct impact, though global supply chain disruptions can affect the pricing of imported medical equipment and specialized drugs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Clinical Establishments Act, bio-medical waste management norms, and pharmaceutical distribution licensing requirements.

Environmental Compliance

Must comply with bio-medical waste management rules; specific compliance costs are not disclosed.

Taxation Policy Impact

Effective tax rate for HY Sept 2025 was approximately 22.4% (INR 0.29 Cr tax on INR 1.30 Cr PBT).

Legal Contingencies

The secretarial audit for FY24 did not report any major pending litigations, though management notes that factors like litigation could influence future results.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the recoverability of trade receivables, which grew from INR 2.95 Cr to INR 13.29 Cr in six months, potentially impacting liquidity.

Geographic Concentration Risk

High risk as 100% of operations are concentrated in the Junagadh/Keshod region of Gujarat, making the company vulnerable to regional economic or regulatory shifts.

Third Party Dependencies

Dependent on medical professionals and specialists; inability to retain key talent could disrupt specialized healthcare services.

Technology Obsolescence Risk

Risk of medical equipment becoming outdated; requires continuous reinvestment in diagnostic and surgical technology.

Credit & Counterparty Risk

Significant exposure to insurance companies and government health schemes, which often have longer payment cycles, contributing to the high receivables balance.