QMS Medical submits Q4FY26 monitoring agency report

QMS Medical Allied Services Limited has submitted the Monitoring Agency Report for the quarter ended March 31, 2026, to the National Stock Exchange of India. The disclosure was made in compliance with Regulation 32(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

CARE Ratings Limited, appointed as the monitoring agency, verified the utilization of proceeds from the company's Rights Issue. The issue size aggregated to ₹12.05 crore, comprising equity shares allotted during the period from September 12, 2025, to September 22, 2025.

The agency confirmed that there was no deviation from the objects of the issue. The funds were primarily allocated for the acquisition of a further 25% stake in a subsidiary, general corporate purposes, and issue expenses. The monitoring agency verified the utilization through bank statements, management certificates, and Chartered Accountant certificates.

Utilization of Proceeds

The company reported that the total amount utilized as of the end of the quarter was ₹12.05 crore. The acquisition of the subsidiary stake and issue expenses were fully utilized, while general corporate purposes saw a utilization of ₹0.01 crore during the quarter for payments to creditors.

Item Head	Original Cost (₹ Crore)	Amount Utilised (₹ Crore)
Acquisition of Further 25% stake in Subsidiary	10.00	10.00
General Corporate Purpose	0.35	0.35
Expenses for the Issue	1.70	1.70
Total	12.05	12.05

General Corporate Purpose Details

The funds allocated for general corporate purposes were utilized for routine business expenditures. The company provided a board resolution dated September 23, 2025, approving the fund utilization for expenses incurred in the ordinary course of business, including payments to creditors and statutory dues.

Item Head	Amount (₹ Crore)
Payment to creditors	0.01

The monitoring agency noted that the actual allotment of shares was slightly lower than the planned issue size due to SME rights issue norms requiring allotment in specific lot sizes. The revised cost of objects was approved by the board.

QMS Medical Allied Services has significantly increased its ownership in Saarathi Healthcare, acquiring an additional 25% stake for ₹140 million. This strategic move elevates QMS Medical's total ownership in Saarathi Healthcare to 76%, marking a substantial expansion of its control over the healthcare entity.

Acquisition Details

Aspect	Details
Acquirer	QMS Medical Allied Services
Target	Saarathi Healthcare
Stake Acquired	25%
Transaction Value	₹140 million
Resulting Ownership	76%

Strategic Implications

This acquisition represents a significant consolidation move by QMS Medical Allied Services in the healthcare sector. By increasing its stake to a controlling 76%, QMS Medical is positioned to have a more substantial influence on Saarathi Healthcare's operations and strategic direction.

The ₹140 million investment for a 25% stake implies a valuation of approximately ₹560.00 million for the entirety of Saarathi Healthcare. This valuation provides insight into the perceived value and potential of Saarathi Healthcare in the current market.

Market Impact

The healthcare sector in India continues to see consolidation and strategic investments. This move by QMS Medical Allied Services aligns with the broader trend of companies seeking to strengthen their market positions through increased ownership in promising healthcare entities.

Investors and market watchers will likely be keen to observe how this increased stake translates into operational synergies and potential growth opportunities for both QMS Medical Allied Services and Saarathi Healthcare in the coming months.