Accent Microcell Ltd Management Discussions

Global Economy

Navigating Complexity: Resilience Amid Persistent Headwinds

The global economy demonstrated measured resilience in FY 2025-26, even as it contended with a more complex array of structural and geopolitical pressures than in the prior year. According to the IMFs April 2026 World Economic Outlook, global real GDP growth is projected at 3.2% for 2025 and 3.1% for 2026, a modest deceleration attributable to the lingering effects of elevated protectionism, ongoing geopolitical tensions and the economic consequences of the Middle East conflict. Notwithstanding these headwinds, the global economy has proven broadly resilient, supported by technology investment, fiscal and monetary stimulus in select major economies, and the sustained adaptability of the private sector.

Trade Performance: Reconfiguration Under Tariff Pressures

Global trade growth registered at approximately 3.0% in FY 26, underpinned by front-loading of export activity in anticipation of US tariff policy shifts. Emerging market and developing economies (EMDEs) outpaced advanced economies, with EMDE growth running at just above 4.0% against advanced economy growth of approximately 1.5%. The reconfiguration of global supply chains driven particularly by the United States tariff adjustments is creating structural realignment opportunities for competitive emerging market exporters, including India.

Inflation and Monetary Conditions

Global headline inflation continued its downward trajectory in FY 26, easing to approximately 4.2% in 2025 and projected to moderate further to 3.6% by 2026, according to IMF estimates. Advanced economies have largely converged toward their inflation targets, enabling a broad monetary policy pivot: central banks across Europe, Canada, and select Asian economies have commenced rate reduction cycles, improving liquidity conditions and supporting investment activity. The US Federal Reserve maintained a more cautious pace, with inflation risks remaining tilted to the upside due to sustained fiscal expansion and tariff-related price pressures.

Sources: IMF World Economic Outlook, April 2026; IMF World Economic Outlook Update, January 2026; OECD Economic Outlook, May2026.

Indian Economy

Accelerating from Strength:

India Leads Global Growth in FY 26 worlds fastest-growing major economy in FY 2025-26, with GDP growth revised upward to 7.6% by the Reserve Bank of India (RBI) in its April 2026 monetary policy review making India the highest-growth economy among the worlds 20 largest, according to the IMFs April 2026 World Economic Outlook. This performance was powered by robust domestic demand, income and GST rationalisation measures in the Union Budget, a sustained monetary easing cycle that delivered 125 basis points of cumulative rate cuts since February 2025, and the structural benefits of deepening US-India trade relationships.

Inflation and Monetary Policy

One of the defining macroeconomic achievements of FY 26 was the remarkable easing of inflationary pressures. CPI inflation fell to a multi-year low tracking at approximately 2.1% for FY 2025-26, significantly below the RBIs 4% target driven by a steep, prolonged decline in food prices over nine consecutive months. In response, the RBI executed a 125 basis point rate cut cycle commencing February 2025, reducing the repo rate to 5.25%, its lowest level since 2022. This easing of monetary conditions materially improved credit availability, investment appetite and consumer spending across the economy.

Sectoral and Industrial Activity

Indias sectoral performance in FY 26 reflected broad-based strength. The agriculture sector benefited from a normal monsoon and improved rural income. The services sector sustained robust double-digit growth, led by IT services and financial services exports. Manufacturing activity showed notable resilience, with the India Manufacturing PMI remaining in firm expansionary territory through the year. The pharmaceutical sector is a core demand driver for pharmaceutical products and it recorded exports of approximately US$ 31.11 billion in FY 26, compared to US$ 30.38 billion in FY 25, maintaining Indias position as the worlds third-largest producer of pharmaceuticals by volume, supplying approximately 20% of global generic medicine demand.

External Sector and Fiscal Position

Indias pharmaceutical exports reached Rs. 2.74 lakh crore (US$ 31.11 billion) in FY 26, the highest recorded and supported by strong demand from the United States, United Kingdom and emerging market destinations. Service exports continued to grow, reflecting Indias deepening integration into global knowledge and professional services supply chains. Foreign exchange reserves remained robust, providing a significant buffer against external volatility. The Government of India maintained fiscal discipline in FY 26, with the fiscal deficit target on track at approximately 4.4% of GDP.

Growth Outlook

Indias GDP growth for FY 2026-27 is projected by the RBI at 6.9%, supported by continued government capital expenditure, the lagged effects of monetary easing on private investment, and ongoing gains in domestic manufacturing competitiveness. The IMF has identified India as the primary growth contributor among major economies, supported by the structural tailwinds of a young demographic, digital infrastructure investment and a US-India trade relationship that is increasingly serving to redirect global supply chains in Indias favour.

Microcrystalline Cellulose:

A Versatile Driver of Multi-Industry Growth

The Global MCC Opportunity

Microcrystalline cellulose (MCC), a purified and partially depolymerised cellulose derived from high-quality wood pulp through controlled acid hydrolysis, continues to demonstrate the hallmarks of a mature yet structurally growing ingredient class. Its unique combination of compressibility, chemical inertness, moisture retention, bulking and binding properties makes it indispensable across an expanding range of industries — from pharmaceutical oral solid dosage (OSD) manufacturing, where it functions as a binder, diluent and disintegrant, to functional food formulations, cosmetic stabilisation systems and industrial coatings.

The global MCC market was valued at approximately US$ 1.25-1.56 billion in 2025 across multiple research estimates, and is projected to grow at a CAGR of 6.2%-7.8% through 2030-2033, driven primarily by accelerating generic pharmaceutical production in India and China, increasing demand for clean-label and plant-based food ingredients, and the rapid premiumisation of personal care formulations. Mordor Intelligence estimates the market at US$ 1.35 billion in 2025, projected to reach US$ 1.94 billion by 2031 at a CAGR of 6.23%. Persistence Market Research (May 2026) values the market at US$ 1.56 billion in 2025, projecting growth to US$ 2.50 billion by 2032 at a CAGR of 7.0%. Grand View Research places the 2025 figure at US$ 1.26 billion, with a projected CAGR of 7.8% through 2033, reaching US$ 2.27 billion.

Pharmaceutical Application: The Anchor Demand Driver

The global pharmaceutical market was valued at approximately US$ 1.7 trillion in 2024 and is projected to reach US$ 2.97 trillion by 2034, growing at a CAGR of 5.74% (MarketsandMarkets). Within this, oral solid dosage formulations which account for the dominant share of global drug delivery rely critically on MCC as their primary excipient. Advanced MCC grades, including Silicified MCC (SMCC) and co-processed MCC variants, are gaining rapid adoption for direct compression applications, significantly improving tableting efficiency while eliminating the cost and complexity of wet granulation. MCCs bioadhesive properties are also underpinning new applications in controlled-release and targeted drug delivery formulations.

Food Industry: The Fastest-Growing

End-Market

The food segment has emerged as the fastest-growing application area for MCC globally, driven by an accelerating consumer preference for clean-label, natural and low-calorie products. MCCs multifunctional role as a bulking agent, texturiser, stabiliser and fat replacer makes it particularly valuable in bakery, dairy, sauces and health food applications. The global food market is valued at approximately US$ 9.45 trillion in 2025 and growing at a CAGR of 6.34%, creating a substantial and expanding addressable opportunity for MCC manufacturers with food-grade certification capabilities.

Cosmetics, Personal Care and Industrial Applications

MCC is gaining significant traction in the cosmetics industry as a multifunctional thickening agent, stabiliser and bulking agent in creams, lotions, powders and colour cosmetics. Rising demand for anti-ageing and natural formulations, combined with increasing consumer scrutiny of synthetic ingredients, is accelerating MCC adoption across premium and mass-market personal care. Grand View Research estimates the personal care segment of the MCC market to grow at a CAGR of 8.2%, the fastest across all application segments from 2026 to 2033. Industrial applications including welding electrode manufacture, ceramic processing, paints and rubber provide additional revenue diversification for established MCC producers.

Pharmaceutical Excipients Market: The Broader Landscape

The global pharmaceutical excipients market within which MCC occupies the dominant cellulose-based segment was valued at US$ 11.03 billion in 2025 and is projected to reach US$ 14.86 billion by 2030, growing at a CAGR of 6.1% (MarketsandMarkets, July 2025). The cellulose-based excipients sub-category, which encompasses MCC, SMCC, CCS, CMC and related products, is growing faster than the broader market, driven by the global shift from synthetic to natural and multifunctional ingredients, clean-label formulation preferences and the increasing regulatory emphasis on excipient quality and standardisation. The Asia-Pacific region is expected to register the highest CAGR in pharmaceutical excipients, benefiting from Indias and Chinas scale advantages in generic drug manufacturing.

Sources: Grand View Research, Microcrystalline Cellulose Market Report, 2025 (updated 2026); Persistence Market Research, May2026;

Mordor Intelligence, MCC Market 2026; MarketsandMarkets, Pharmaceutical Excipients Market, July2025; Technavio, MCC Market Analysis, March 2026.

Indian MCC Industry

The Indian MCC market was valued at US$ 43.77 million in 2024 and is projected to grow at a CAGR of 4.34% through 2033, reaching an estimated US$ 64.15 million (Mordor Intelligence). Indias significance in global MCC supply chains extends substantially beyond the domestic market size, however as India is among the worlds largest producers of pharmaceutical formulations, the countrys manufacturers consume MCC at scale for export-oriented drug production. India supplies approximately 20% of the worlds generic medicines by volume, and approximately 50% of US generic demand creating a deeply embedded structural demand for high-quality, pharmacopoeia-compliant excipients.

India as a Global MCC Manufacturing Hub

The convergence of several structural factors is establishing India as a global hub for MCC manufacturing: established pharmaceutical infrastructure and regulatory capabilities; a cost-competitive production base; proximity to wood pulp sourcing supply chains; and, critically, the China + 1 diversification imperative that is driving multinational pharmaceutical companies to validate and qualify India-based excipient suppliers as primary sources. Indian MCC manufacturers with international quality certifications namely EXCiPACT, GMP, US-DMF are particularly well-positioned to benefit from this structural reorientation of global pharma supply chains.

Demand Catalysts - India

• Rapid expansion of Indias pharmaceutical industry: projected to grow from US$ 57.61 billion in 2025 to US$ 130 billion by 2030 (Mordor Intelligence, IBEF 2026).

• Rising demand for pharmaceutical-grade excipients in both domestic formulation and export-oriented manufacturing.

• Growth in nutraceutical and functional food consumption, driven by rising health awareness and disposable incomes.

• Cosmetics market expansion: Indias cosmetics industry, valued at US$ 14.78 billion in 2024, is projected to reach US$ 21.21 billion by 2030 (CAGR 6.13%), driving MCC demand as a stabiliser and texturiser.

• 3D printing of pharmaceuticals emerging as a novel application for MCC as a base material for tailored-release tablet manufacture.

• Government initiatives supporting pharmaceutical innovation (PRIP MedTech Scheme, PLI Scheme) increasing domestic MCC consumption by API and formulation manufacturers.

Sources: IBEF Indian Pharmaceuticals Industry Report, 2026; Mordor Intelligence, Indian MCC Market; Mordor Intelligence, India Cosmetics Market.

Company Overview

Accent Microcell Limited is one of Indias foremost manufacturers of microcrystalline cellulose (MCC) and pharmaceutical excipients, headquartered in Ahmedabad, Gujarat. Incorporated in 2012 and listed on the NSE SME Exchange in December 2023, the Company has established itself as a globally trusted supplier of cellulose-based excipients across 75+ countries, with 19+ years of export experience.

The Companys product portfolio marketed under the Accel, Acrocell, Maccel and Vincel brand families spans 22 grades of MCC with particle sizes ranging from 20 to 180 microns, along with Silicified MCC (SMCC), MCC Spheres, Powdered Cellulose, Co-processed MCC with CMC, Croscarmellose Sodium (CCS) and Magnesium Stearate.

The Company operates two fully certified manufacturing facilities, Unit I at Pirana, Ahmedabad (2,000 MTPA; 100% utilisation) and Unit II at Dahej SEZ, Bharuch (7,200 MTPA; 95% utilisation) with a combined installed capacity of 9,200+ MTPA. Unit III at Nayka, Kheda, with planned capacity of 2,800 MTPA dedicated to the manufacture of Croscarmellose Sodium (CCS), Carboxymethylcellulose (CMC) and Sodium Starch Glycolate (SSG), is progressing toward commercial commissioning, with trial runs underway as at the date of this Report.

In FY 2025-26, Accent Microcell achieved a landmark revenue milestone of Rs. 34,903.28 lakh, a growth of 31.92% over the previous year while simultaneously executing a transformative shift in its product revenue mix: premium products now constitute 13.12%% of revenue, compared to 3.74% in the prior year. This strategic premiumisation, alongside the highest-ever export revenue of Rs. 22,087 lakh (63.28% of total revenue), underscores the Companys successful evolution from a volume-driven MCC supplier to a value-driven global excipient partner.

Strengths

• Global presence across 75+ countries with 19+ years of export experience

• Advanced dual-manufacturing infrastructure at Pirana and Dahej SEZ

• 22 grades of MCC compliant with USP, EP, BP, JP and IP pharmacopoeias

• EXCiPACT, GMP, FSSC 22000, HACCP and US-DMF certifications

• Strong R&D capability and promoter expertise spanning over two decades

Weaknesses

• Intense competition from established global and domestic MCC manufacturers

• High dependence on imported wood pulp (SAPPI); limited domestic sourcing

• Unit III commissioning delays impact near-term revenue expansion

• Concentrated promoter holding; limited institutional analyst coverage as SME

Opportunities

• China+1 sourcing shift creating large-scale demand for India-based MCC

• Unit III to produce high-value CCS, CMC and SSG specialty excipients

• Expanding pharmaceutical excipients market: US$ 11.0 Bn (2025) to US$ 14.9 Bn (2030)

• MCC penetration growing in cosmetics, food, nutraceuticals and industrials

• Government export incentives: RoDTEP,

Duty Drawback and SEZ benefits

• Rights Issue capital strengthening balance sheet for strategic investments

Threats

• Global trade policy uncertainty and US tariff-related demand volatility

• Geopolitical risks (Middle East conflict) elevating energy and logistics costs

• Evolving international pharmacopoeial and regulatory standards

• Currency risk on export-heavy revenue base (63.28% export revenue)

• Entry of well-capitalised new competitors in the growing specialty excipient space

Operational Performance

FY 2025-26 was a year of decisive operational advancement for Accent Microcell, characterised by three defining developments: the successful scaling of premium product volumes, the sustained expansion of export market penetration and the continued capital investment in Unit III, the Companys most significant infrastructure initiative since inception.

Manufacturing Efficiency and Capacity

Unit-I at Pirana operated at 100% utilisation throughout FY 26, while Unit II at Dahej SEZ maintained 95% utilisation across all four quarters. Together, the two operational units processed at full commercial intensity, demonstrating the underlying demand strength for the Companys product offerings and the operational excellence of its manufacturing teams. The Companys in-house QA and QC laboratories including dedicated microbial testing facilities maintained continuous compliance with the stringent requirements of EXCiPACT, GMP, FSSC 22000 v5.1, HACCP, FSSAI Central Licence and US-DMF standards.

Product Mix Transformation

The most strategically significant operational development of FY 26 was the dramatic reorientation of Accents product revenue mix toward premium grades. Premium product revenue increased from approximately 3.74%

of total revenue in FY 25 to 13.12%% in FY 26, a transformation of a magnitude rarely witnessed in a single year. This shift reflects the culmination of multi-year investments in customer qualification programmes, pharmacopoeial compliance capabilities and the development of higher-grade MCC variants (including SMCC, MCC Spheres and specialty grades) that command superior pricing and margin profiles. The successful commercialisation of premium grades in regulated markets in Europe and North America was a key enabler.

Export Operations

Export revenue reached Rs.22,087 lakh in FY 26, representing 63.28% of total revenue, the highest absolute export revenue in the Companys history and a clear validation of Accents competitive standing in international pharmaceutical supply chains. The Companys export client base across 75+ countries now encompasses multinational pharmaceutical companies, generic drug manufacturers, contract manufacturing organisations, nutraceutical producers and personal care brands in all major regulated markets, including the United States, European Union, United Kingdom, Australia, Japan and South Korea.

Unit III - Progress Update

Construction and installation at Unit III, Nayka (Kheda), are progressing toward commercial readiness. As disclosed under Regulation 30 of SEBI (LODR) Regulations, 2015, the implementation schedule has been realigned from the indicative timelines set out in the DRHP, primarily on account of two consecutive abnormal monsoon seasons adversely impacting on-site execution, and extended regulatory approval timelines. Trial runs for the production of Croscarmellose Sodium (CCS), Carboxymethylcellulose (CMC) and Sodium Starch Glycolate (SSG) are progressing steadily.

Financial Performance

In FY 2025-26, the Company delivered the highest revenue, highest EBITDA and highest PAT in its history, a trifecta that reflects not merely topline growth but structural improvement in revenue quality, operating leverage and financial health.

Revenue from Operations

Revenue from Operations grew by 31.92% to Rs. 34,903.28 lakh in FY 2025-26, from Rs. 26,457.69 lakh in the preceding year. This growth significantly outpaces the Companys FY 25 topline growth of 8%, signalling a structural step-change in commercial momentum rather than cyclical buoyancy. The growth was driven by three concurrent tailwinds: the large-scale adoption of premium MCC grades in regulated export markets, the sustained ramp-up at Dahej Unit II to near-full capacity utilisation, and strong underlying pharmaceutical and nutraceutical demand across the Companys primary end-markets.

EBITDA

EBITDA for FY 26 rose by 31.34% to Rs. 6,345.83 lakh, from Rs. 4,831.78 lakh in FY 25. EBITDA margin was maintained at 18.18% (FY 25: 18.26%), a marginal compression of 8 basis points reflecting continued prudence in cost management even as the Company scaled revenues significantly. The H2 FY 26 EBITDA of Rs. 3,695.32 lakh (17.62% margin) and H1 FY

26 EBITDA of Rs. 2,650.51 lakh (19.02% margin) reflect the typical second-half skew in pharmaceutical industry procurement patterns.

Profit After Tax

Profit After Tax (PAT) grew by 32.65% to Rs. 4,385.85 lakh in FY 26, from Rs. 3,306.29 lakh in FY 25. PAT margin improved marginally to 12.57% (FY 25: 12.50%), reflecting the benefits of operating leverage on a larger revenue base. Interest cover remained extraordinary at 46.54x (FY 25: 3.26x), underscoring the Companys essentially debt-free capital structure and superior cash generation. Profit Before Tax (PBT) grew by 33.13% to Rs. 5,826.18 lakh.

Balance Sheet Strengthening

The Companys Net Worth increased substantially to Rs. 27,548.46 lakh as at 31^st March 2026 (Share Capital: Rs. 2,398.90 lakh; Reserves and Surplus: Rs. 25,149.56 lakh), from Rs. 19,479.27 lakh in the prior year, an increase of approximately 41.4%, driven by Rights Issue capital proceeds and strong internal profit accretion. Total assets grew to Rs. 32,170.70 lakh from Rs. 22,837.44 lakh, primarily reflecting capital deployment in Unit III (Fixed Assets: Rs. 15,483.28 lakh vs. 6,075.63 lakh in FY 25 (both including CWIP- Capital Work in Progress). Trade Receivables of Rs. 9,129.86 lakh are commensurate with the Companys expanded revenue scale.

Return Ratios

Return on Capital Employed (ROCE) improved to 21.30% in FY 26 from 22.40% in FY 25, an improvement reflecting the superior returns generated on the Companys invested capital base. Return on Equity (ROE) was 18.65%, improving from 18.44%, consistent with the improvement in PAT margins on an expanding equity base. The Company remained essentially debt-free, with a Debt-to-Equity ratio of 0.01x, ensuring minimal financial risk and substantial headroom for future capital deployment.

Particulars
( in Lakhs)	FY 2025-26	FY 2024-25	YoY Change (%)
Revenue from Operations	34,903.28	26,457.69	+31.92%
Other Income	676.67	640.86	+5.59%
Total Income	35,579.95	27,098.55	+31.30%
EBITDA	6,345.83	4,831.77	+31.34%
EBITDA Margin	18.18%	18.26%	(0.44%)
Depreciation	465.64	421.35	+ 10.51%
Interest Cost	54.01	34.55	+56.32%
Profit Before Tax	5,826.18	4,375.86	+33.14%
Profit After Tax (PAT)	4,385.85	3,306.29	+32.65%
PAT Margin	12.57%	12.50%	+0.55%

Key Financial Ratios - FY 2025-26 vs FY 2024-25

Particulars ( in Lakhs)	FY 2025-26	FY 2024-25	Reasons for Change
Current Ratio (Times)	3.56	5.08	Increase in liquid assets; Rights Issue proceeds received
Debt-to-Equity Ratio (Times)	0.00	0.01	Company remains virtually debt-free
Debt Service Coverage Ratio (Times)	46.54	3.26	Strong operating cash flow; minimal debt obligations
Return on Equity Ratio (%)	18.65%	18.44%	Improved profitability; expanded equity base
Net Profit Ratio (%)	12.57%	12.50%	Stable margins; operating leverage in premium mix
Return on Capital Employed (%)	21.3%	22.40%	Higher revenue growth and improved asset utilisation
Inventory Turnover Ratio (Times)	6.54	4.84	Recategorisation; inventory management optimisation
Receivables Turnover Ratio (Times)	4.47	4.46	Revenue scale-up; extended credit terms in select export markets
Payables Turnover Ratio (Times)	14.42	11.38	Payment cycle aligned with extended procurement agreements
Net Capital Turnover Ratio (Times)	2.97	2.12	Capex-led expansion in fixed assets; Rights Issue capital deployment

Internal Control

Systems And Their Adequacy

Accent Microcell maintains a robust and well-documented internal control framework, designed and continuously refined to align with the Companys scale of operations, the regulatory complexity of its global pharmaceutical supply commitments and the heightened standards of governance expected of a listed entity.

The Board oversees the Companys internal control systems to ensure its adequacy and effectiveness for its current scale and complexity of operations. Our internal systems are continuously evolving in line with the Companys growth ambitions and the increasing stringency of the regulatory environments in which it operates.

Outlook

As Accent Microcell enters FY 2026-27, it does so with its strongest-ever financial foundation, its most diversified product portfolio and a strategic expansion programme of Unit III that will extend its reach into the fastest-growing segments of the global pharmaceutical excipient landscape.

1. Growing Global Demand for MCC and Specialty Excipients

The global pharmaceutical excipients market is projected to reach US$ 14.86 billion by 2030 (CAGR 6.1%, MarketsandMarkets), with MCCs sub-segment growing at 6.2%-7.8%. Every incremental gain in global oral solid dosage production particularly in India, which is projected to double pharmaceutical output to US$ 130 billion by 2030 creates proportional and compounding demand for high-quality MCC. The Companys premium product mix, combined with its broad pharmacopoeial compliance, positions it to capture disproportionate value from this growth.

2. Unit III: Transformative Revenue Expansion

Upon commercial commissioning, Unit III will manufacture three high-value specialty excipients—Croscarmellose Sodium (CCS), Carboxymethylcellulose (CMC) and Sodium Starch Glycolate (SSG)—strengthening the Companys presence in attractive, high-growth pharmaceutical excipient segments with robust global demand. The facility is expected to enhance the Companys product portfolio, deepen its export presence while serving domestic customers, and create a scalable platform for future growth. The proposed Phase II expansion is intended to further augment manufacturing capabilities and broaden the Companys addressable market over the long term.

3. China+1 and the India Sourcing Opportunity

Global pharmaceutical manufacturers are actively qualifying India-based excipient suppliers as alternatives to China-sourced material, driven by supply chain resilience considerations, regulatory preference for diversified sourcing, and Indias demonstrably competitive production economics. The Company, with its established international certifications, 19+ year export track record and deep customer relationships in the US, EU, Australia and Japan is uniquely positioned to capture this structural demand migration. Export revenue, which grew 56% YoY in FY 26 to Rs. 22,087 lakh, is expected to continue growing faster than the domestic segment in FY 27 and beyond.

The Companys Strategic Priorities For FY 2026-27 Encompass:

• Timely commissioning of Unit III;

• Deepening market penetration in North American and European regulated markets through expanded US-DMF filings and customer qualification programmes;

• Accelerating the adoption of SMCC, MCC Spheres and co-processed MCC grades by multinational CDMOs; and

• Sustaining the quality and governance standards that underpin long-term customer trust and regulatory standing.

The Board of Directors and Management of the Company approach FY 2026-27 with measured confidence, supported by a robust financial foundation, a motivated and experienced workforce, and a strategic agenda that is well-aligned with the most compelling long-term growth opportunities in global pharmaceutical excipient manufacturing.

Human Resources

At Accent Microcell, people are recognised as the primary engine of competitive advantage in a sector where formulation science, quality precision and customer relationship depth determine long-term market position. The Companys human resources strategy is anchored on four dimensions: talent acquisition, continuous capability development, employee well-being and a culture of accountability and innovation.

As at 31^st March 2026, Accent Microcell employed over 271 professionals across its corporate headquarters and all operational manufacturing facilities. The Companys talent base encompasses manufacturing technicians, quality assurance and quality control scientists, regulatory affairs specialists, sales and marketing professionals, and financial and administrative personnel.

Key HR Priorities - FY 26

• Technical Skills Development: Regular training and skills workshops focused on evolving pharmacopoeial standards, new product grades and advanced manufacturing techniques, ensuring the workforce remains at the leading edge of excipient science.

• Regulatory Capability: Specialised training in EXCiPACT, FDCA, GMP, GLP, ISO - 9001:2015, HALAL, KOSHER, FSSAI, FSSC 22000 and US-DMF compliance procedures, enabling all quality-facing personnel to meet the requirements of the Companys most demanding international customers.

• Leadership Pipeline: Targeted leadership development programmes to build the next generation of technical and commercial leaders from within the organisation, supporting succession planning and operational continuity.

• Employee Well-Being: Comprehensive health and wellness initiatives, including Employees Compensation along with Medical actual Extension, safety training and work-life balance programmes, designed to sustain engagement, reduce attrition and maintain a motivated workforce across all facilities.

• Diversity and Inclusion: A merit-based performance evaluation framework and a zero-tolerance approach to discrimination, ensuring equitable opportunities for all employees regardless of gender, background or role.

Industrial relations at all manufacturing facilities remain harmonious. The Company has not experienced any material labour disputes or disruptions during FY 26. Management acknowledges the pivotal contribution of every member of the Accent team and remains committed to ensuring that the Companys people strategies continue to support the delivery of its ambitious growth roadmap.

Cautionary Statement

Certain statements made in this Management Discussion and Analysis Report may contain forward-looking statements which may be based on various assumptions about the companys current and future business strategies as well as the environment in which it operates. Due to risk and uncertainties, actual results could significantly or materially differ from those that were indicated or inferred. These risks and uncertainties include the influence of domestic and international economic and political situations, the volatility of interest rates and the stock market, new rules and government policies that may have an impact on enterprises, and the capability to carry out its goals.