Accretion Pharmaceuticals Ltd Management Discussions

FOR THE FINANCIAL YEAR ENDED 31 MARCH, 2026

CAUTIONARY STATEMENT

Forward looking statement

Statements in this Management Discussion and Analysis of Financial Condition and Results of Operations of the Company describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company assumes no responsibility to publicly amend, modify or revise forward looking statements, on the basis of any subsequent developments, information or events. Actual results may differ materially from those expressed in the statement. Important factors that could influence the Companys operations include changes in government regulations, tax laws, economic developments within the country and such other factors globally.

The financial statements are prepared as per the Accounting Standard guidelines and comply with the Accounting Standards notified under Section 129 of the Companies Act, 2013 read with the Companies (Accounting Standards) Rules, 2015. The management of Accretion Pharmaceuticals Limited has used estimates and judgments relating to the financial statements on a prudent and reasonable basis, in order that the financial statements, reflect in a true and fair manner, the state of affairs and profit for the year.

The following discussions on our financial condition and result of operations should be read together with our audited financial statements and the notes to these statements included in the annual report. Unless otherwise specified or the context otherwise requires, all references herein to we, us, our, the Company, Accretion, ACCPL are to Accretion Pharmaceuticals Limited.

GLOBAL ECONOMY

The global economy demonstrated notable resilience during FY 2025-26, maintaining steady growth despite significant headwinds from trade policy uncertainty and geopolitical tensions. According to the IMF January 2026 World Economic Outlook Update — titled Global Economy: Steady amid Divergent Forces — global real GDP growth held steady at 3.3% in 2025, matching the 2024 outturn and representing an upward revision of 0.2 percentage points from the October 2025 WEO projection. This positive revision was driven by front-loading of trade activity prior to tariff implementation, improved financial conditions, fiscal stimulus in select key economies, and the structural resilience of domestic demand across major markets. Headline global inflation continued its disinflationary trajectory, easing to approximately 4.1% in 2025 from 5.8% in 2024, supported by softer commodity prices, disciplined monetary policy, and improved supply chain conditions. Advanced economy inflation converged towards central bank targets at approximately 2.5% in 2025.

World trade demonstrated stronger-than-anticipated performance through FY 2025-26. According to the WTOs Q3 2025 Trade Monitor, actual merchandise trade volume grew approximately 4.5% year-on-year in the first nine months of 2025, significantly outperforming the April 2025 baseline forecast of -0.2%. The total value of world merchandise exports reached US$ 24.43 trillion in 2024, while commercial services exports climbed to US$ 8.69 trillion (+9% YoY). The escalating tariff environment introduced by the US Administration — including a 10% global baseline tariff in April 2025, sector-specific measures through the year, and a 100% tariff on branded pharmaceutical imports effective October 2025 — created significant uncertainty and front-loading effects. However, trade proved resilient through calendar 2025, with WTO data recording a record high in the dollar value of world trade volume in Q3 2025 even as volumes stabilised.

Regional performance remained characteristically divergent. Emerging and Developing Asia outperformed strongly at 5.4% growth in 2025, led by India at an exceptional 7.3%. The United States expanded at 2.1%, constrained by trade policy uncertainty and the lagged effects of prior monetary tightening, while the Euro Areas recovery remained subdued at 1.4%. Sub-Saharan Africa demonstrated resilience at 4.4%, and Middle East and Central Asia accelerated to 3.7%, supported by energy revenues and strategic investment.

Source: https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-update-january-2026 https://www.imf.org/en/publications/weo/issues/2025/04/22/world-economic-outlook-april-2025 https://www.imf.org/en/publications/weo/issues/2025/10/14/world-economic-outlook-october-2025

Source: https://www.wto.org/english/news e/news26 e/stat 28jan26 271 e.htm https://www.wto.org/english/news e/ news25 e/tfore 08aug25 e.htm https://www.wto.org/english/res e/publications e/trade outlook25 e.htm

OUTLOOK

The global economy is projected to sustain growth at 3.3% in 2026, matching 2025 estimates and representing an upward revision of 0.2 percentage points from October 2025 projections. This stability reflects structural economic resilience even as trade policy uncertainty, geopolitical conflicts, and potential tariff escalation remain significant downside risks. Global inflation is expected to ease further to 3.8% in 2026, approaching targets across advanced economies. World trade growth is projected to moderate towards 0.5-1.8% in 2026 as front-loading effects dissipate — reinforcing the importance of supply chain diversification and domestic market depth for pharmaceutical exporters. Central bank rate easing cycles are expected to support investment and consumption in 2026, providing a measured tailwind to global pharmaceutical demand.

Source: https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2233792®=3&lang=1 https://www.mospi.gov.in/uploads/ latestReleases/latest release 1767781372753 1380ce82-f5a5-440d-99e6-e6b35af0deb5 GDP Press Note on FAE 2025- 26.pdf https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2212087®=3&lang=2

GLOBAL ECONOMIC GROWTH PROJECTIONS - 2024 TO 2026 (REAL GDP GROWTH RATE, % CHANGE - IMF WORLD ECONOMIC OUTLOOK UPDATE, JANUARY 2026)

Source: IMF World Economic Outlook Update, January 2026 https://www.imf.org/en/publications/weo/issues/2026/01/19/ world-economic-outl... WTO Global Trade Statistics https://www.wto.org/english/news e/news26 e/stat 28jan26 271 e.htm

INDIAN ECONOMY

India continued to consolidate its position as the worlds fastest-growing major economy during FY 2025-26. The Second Advance Estimate released by the Ministry of Statistics and Programme Implementation (MoSPI) in February 2026 estimated Indias real GDP growth at 7.6% under the revised base year (2022-23), with quarterly growth rates of 7.8% in Q1, 8.4% in Q2, and 7.8% in Q3 FY 2025-26 — reflecting broad based and sustained economic momentum. Under the earlier base year (2011-12), the First Advance Estimate placed growth at 7.4%, with real GDP at ^201.90 lac crore. The RBI had progressively upgraded its growth projection during the year to 7.3%, acknowledging the economys structural resilience. The IMF, in its January 2026 WEO, projected Indias fiscal-year GDP growth at 7.3% for FY25 and 6.4% for Fy26 (under IMF methodology), making India the fastest-growing G20 economy by a significant margin.

A landmark macroeconomic achievement of FY 2025-26 was the dramatic moderation of inflation to historically low levels. The Consumer Price Index (CPI) inflation for the full year is estimated by the RBI at approximately 2.1% — well below the 4% midpoint target, representing the lowest annual average in several years. Monthly CPI inflation declined sharply through the year, reaching 0.25% in October 2025 (a record low under the then- prevailing 2012=100 base year series) before moderating to 3.21% in February 2026 under the new 2024=100 base year. This benign inflationary environment enabled the Monetary Policy Committee to reduce the repo rate in calibrated steps, easing financial conditions and supporting credit growth, private consumption and capital investment across the economy.

On the fiscal front, the Government maintained disciplined macroeconomic management, holding the fiscal deficit at 4.4% of GDP (^15.69 lac crore) — precisely on target with the Budget Estimate, as confirmed by the Revised Estimate in the Union Budget 2026-27 presented on February 1, 2026. Indias external sector remained robust, with total exports (merchandise and services) reaching USD 790.86 billion in April-February FY 2025-26, growing 5.79% year-on-year, and on track to cross the Commerce Ministrys target of USD 850 billion for the full fiscal year. Gross FDI inflows maintained strong momentum at USD 73.31 billion in April-December 2025 (+16% YoY), and Indias forex reserves peaked at an all-time high of USD 728.5 billion in late February 2026.

Source: https://ddnews.gov.in/en/rbi-projects-inflation-at-2-1-in-fy26-revises-fy27-growth-outlook-upward/ https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2178447®=3&lang=2 https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2238889®=3&lang=2

https://www.mospi.gov.in/uploads/latestReleases/latest release 1770891893893 6b458c0a-c327-4fef-a554-4TI31ea67273 Press Relase of CPI for Jan26.pdf

Source: https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2098352®=3&lang=2 https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2221458®=3&lang=2

https://ddnews.gov.in/en/indias-exports-grow-5-79-to-790-86-billion-between-april-2025-february-2026/ https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2244385®=3&lang=2 https://www.ibef.org/economy/foreign-direct-investment

https://www.business-standard.com/markets/capital-market-news/india-s-forex-reserves-fall-around-30-billion-in- march-126040600313 1.html

OUTLOOK

India is positioned for sustained strong growth in the coming years, supported by macro stability, manageable inflation, resilient consumption, and an accelerating private capex cycle. The IMF projects Indias growth at approximately 6.4% in FY 2026-27 under its methodology, while domestic projections from RBI and the Finance Ministry point to sustained 7%+ growth. Key enablers include continued public infrastructure investment, deepening digital economy penetration, expanding health insurance coverage under Ayushman Bharat, and Indias growing role as a preferred manufacturing destination under China+1 supply chain strategies. Maintaining counter-cyclical fiscal discipline, accelerating credit access for MSMEs, and continuing export diversification will be essential for sustained outperformance. Geopolitical tensions, global commodity price volatility, and any further escalation of trade protectionism remain the primary external risks to Indias growth trajectory.

Source: https://www.arandviewresearch.com/industry-analysis/pharmaceutical-market-report https://www.fortunebusinessinsiahts.com/impact-of-covid-19-on-pharmaceuticals-market-102685

Source: MoSPI Second Advance Estimate, February 2026 https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2233792

MoSPI First Advance Estimate

https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2212087

YEAR-ON-YEAR CPI INFLATION RATE - FY 2025-26

(Monthly CPI Inflation %, Year-on-Year — Consumer Price Index, India)

Source: MoSPI CPI Press Releases

https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2178447

https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2202940

https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2238889

https://ddnews.aov.in/en/rbi-projects-inflation-at-2-1-in-fy26-revises-fy27-a...

GLOBAL PHARMA INDUSTRY OVERVIEW

The global pharmaceutical industry remains one of the worlds most economically significant and structurally resilient sectors, underpinned by fundamental and non discretionary demand drivers: an ageing global population, rising prevalence of chronic and lifestyle-related diseases, expanding healthcare access in emerging markets, and continuous scientific innovation. According to Grand View Researchs 2025 analysis, the global pharmaceutical market was valued at approximately USD 1,645.75 billion in 2024 and is projected to reach USD 2,776.74 billion by 2033, growing at a compound annual growth rate (CAGR) of 6.08%. Alternative sizing from Fortune Business Insights places the 2025 base at USD 1,999.24 billion, projecting expansion to USD 4,035.35 billion by 2034 at a CAGR of 8.19%. Across methodologies, the consensus supports a substantial multi-trillion-dollar market growing at a sustained mid-to-high single-digit CAGR through the end of the decade.

PHARMACEUTICAL INDUSTRY PRODUCT CLASSIFICATION

The global pharmaceutical ecosystem comprises several distinct and interrelated product segments, each with unique manufacturing, regulatory, and market dynamics:

Source: https://www.arandviewresearch.com/horizon/outlook/pharmaceuticals-market-size/alobal https://www.arandviewresearch.com/industry-analysis/pharmaceutical-market-report

y Active Pharmaceutical Ingredients (API): The core chemical compounds responsible for the therapeutic effect in medicines. India is among the worlds top three API manufacturers globally, with the PLI scheme accelerating domestic API self-sufficiency.

y Formulations (Drug Products): Finished dosage forms combining APIs with excipients, including tablets, capsules, injectables, ointments and oral liquids. This segment encompasses the primary manufacturing scope of Accretion Pharmaceuticals Limited.

y Contract Development and Manufacturing Organisations (CDMOs): Service providers offering outsourced drug development, manufacturing, and regulatory support. This is the highest-growth structural segment within the pharmaceutical industry.

y Biologics and Biosimilars: Complex products derived from living organisms, including vaccines, monoclonal antibodies, cell and gene therapies. The fastest-growing pharmaceutical category globally, with a CAGR of 7.17%.

y Over-the-Counter (OTC) Products: Medicines available without prescription for common ailments, supported by the USD 6.3 global wellness economy and growing consumer health awareness.

y Nutraceuticals and Dietary Supplements: Products providing nutritional and preventive health benefits, experiencing accelerating demand across both developed and emerging markets.

PERFORMANCE IN FY 2024-25

In FY 2024-25, global pharmaceutical demand continued its steady upward trajectory, driven by growing incidence of chronic diseases, an expanding elderly population, and wider healthcare access in emerging markets. Specialty drugs, biologics, and treatments for oncology, diabetes, autoimmune disorders and infectious diseases experienced particularly strong volume growth. Conventional (small molecule) drugs continued to hold the largest market share at approximately 54.24% in 2025, while biologics and

biosimilars — growing at a CAGR of 7.17% — rapidly expanded their share. Generic drugs, growing at a CAGR of 7.2%, gained further traction as healthcare systems globally prioritised cost containment. The oncology segment represented 17.62% of the total market by disease indication. Obesity therapeutics emerged as the fastest-growing sub-segment, driven by demand for GLP-1 agonists, with a CAGR of 12.73%.

Source: https://foleyhoaa.com/news-and-insiahts/publications/alerts-and-updates/2025/september/100-us-tariff-on- branded-patented-druas-effective-october-1-2025/ https://www.ropesaray.com/en/insiahts/alerts/2026/04/l00-on- brand-us-imposes-new-tariffs-and-key-exemptions-on-patented-pharmaceuticals https://www.delveinsight.com/ bloa/us-tariffs-2025-impact-healthcare-pharma-strateaies https://pmc.ncbi.nlm.nih.gov/articles/PMC1212319l/

CHALLENGES AND HEADWINDS

Despite fundamental resilience, FY 2025-26 brought substantial headwinds to the global pharmaceutical sector. The most consequential development was the escalation of US pharmaceutical trade policy: beginning with a 10% global baseline tariff in April 2025, the US Administration progressively tightened measures throughout the year. A Section 232 investigation into pharmaceutical imports was launched in April 2025, culminating in a 100% ad valorem tariff on branded and patented pharmaceutical imports effective October 1, 2025.

A formal presidential proclamation in April 2026 codified this framework, while generics were notably exempted — a critical distinction that directly benefits Indian generic and CDMO manufacturers. The US pharmaceutical trade deficit stood at USD 139 billion in 2024, and major global companies collectively committed over USD 265 billion in US manufacturing investments in response. Supply chain disruptions, escalating R&D costs, prolonged regulatory approval timelines, and pricing pressures from governments and payers further tested sector profitability across the year.

GLOBAL PHARMACEUTICALS MARKET SIZE

(Market Value in US$ Billion - 2023, 2024 and 2033 Projection)

YEAR	Market Size (US$ Billion)	CAGR / Remarks
2023	USD 1,562.0 Bn	Base Period
\u25a0 2024	USD 1,645.8 Bn	~5.4% growth YoY (Grand View Research)
2025 (Estimated)	USD 1,738.0 Bn	~5.6% growth YoY
2033 (Projected)	USD 2,776.7 Bn	CAGR of 6.08% (2026-2033)

Source: Grand View Research, 2025

https://www.arandviewresearch.com/industry-analysis/pharmaceutical-market-report Fortune Business Insights

https://www.fortunebusinessinsiahts.com/impact-of-covid-19-on-pharmaceuticals...

GLOBAL CDMO INDUSTRY

The global Contract Development and Manufacturing Organisation (CDMO) industry has established itself as a critical and structurally growing pillar of the pharmaceutical supply chain. By enabling drug developers — from large multinational innovators to emerging biotech firms — to access world-class manufacturing expertise, regulatory compliance capabilities, and scalable production without bearing the full capital burden of in-house infrastructure, CDMOs have become indispensable partners in pharmaceutical value creation. The increasing complexity of new drug modalities (biologics, ADCs, cell and gene therapies), rising development costs, and the strategic imperative of supply chain diversification have collectively accelerated the pharmaceutical industrys shift towards outsourced manufacturing.

According to Fortune Business Insights, the global CDMO market was valued at USD 238.92 billion in 2024, with 2025 estimated at USD 255.01 billion. The market is projected to reach USD 465.24 billion by 2032, growing at a robust CAGR of 9.0% (2025-2032). An updated March 2026 analysis extended the projection to 2034, estimating the market at USD 580.72 billion, growing at a CAGR of 9.90% (2026-2034). This sustained double-digit growth trajectory- nearly 1.5x the rate of the broader pharmaceutical market — underscores the accelerating structural shift towards outsourcing within the global pharmaceutical industry.

KEY DRIVERS

^ Increasing outsourcing by small and mid-sized pharmaceutical companies lacking in-house manufacturing capabilities, seeking to reduce fixed capital costs and access specialised expertise in complex formulation development

^ Rapid growth of biologic and complex therapy CDMOs, driven by the global surge in biosimilar approvals, monoclonal antibody development, and emerging modalities such as ADCs and nucleic acid therapeutics

^ US tariff-driven supply chain restructuring, paradoxically benefiting established CDMO hubs in India and select European countries as global pharmaceutical companies accelerate supply chain diversification before building new US domestic capacity

V Strategic mergers and acquisitions among CDMO players enhancing service breadth, geographic reach and end-to-end manufacturing capabilities for complex modalities

^ Increasing adoption of digitalisation, AI-driven process optimisation, and sustainable manufacturing practices across the CDMO sector, raising quality standards and operational efficiency

Source: https://www.fortunebusinessinsiahts.com/contract-development-and-manufacturina-oraanization-cdmo- outsourcing-market-102502 https://www.fortunebusinessinsiahts.com/press-release/contract-development-and- manufacturina-oraanization-cdmo-market-9673

Source: https://www.fortunebusinessinsiahts.com/contract-development-and-manufacturina-oraanization-cdmo- outsourcing-market-102502 https://www.india-briefina.com/news/indias-rise-as-a-alobal-cdmo-powerhouse- 36108.html/

Accretion Pharmaceuticals Limited

REGIONAL DYNAMICS

North America held the largest CDMO market share at 38.50% (USD 98.1 billion) in 2025, supported by a robust CDMO infrastructure, high clinical trial activity, and a dense concentration of pharmaceutical innovators.

Europe contributed approximately 25.30% (USD 64.24 billion), driven by demand for biologics manufacturing and stringent regulatory- quality-driven outsourcing.

Asia-Pacific, representing approximately 25.20% (USD 64.15 billion) of the 2025 market, is the fastest-growing region — with Indi and China as primary hubs due to their cost advantages, depth of scientific workforce, and growing regulatory capabilities. The BIOSECURE Act in the United States, restricting federal contracts with certain Chinese biotech firms, has materially accelerated the shift of CDMO mandate towards India, creating significant incremental demand.

GLOBAL CDMO MARKET SIZE 2024-2034

(Market Value in US$ Billion — Fortune Business Insights, 2026)

YEAR	Market Size (US$ Billion)	CAGR / Remarks
2024	USD 238.92 Bn	Actual
2025	USD 255.01 Bn	Base Year
2026	USD 273.40 Bn	Estimate
2028	USD 330.22 Bn	Interpolated @ 9.90% CAGR
2030	USD 398.84 Bn	Interpolated @ 9.90% CAGR
2032	USD 465.24 Bn	Projected
2034	USD 580.72 Bn	Projected

Source: Fortune Business Insights, March 2026

https://www.fortunebusinessinsights.com/contract-development-and-manufacturin...

https://www.fortunebusinessinsights.com/press-release/contract-development-an...

INDUSTRY TRENDS

AI-Enabled R&D and Technology-Driven Operations

Pharmaceutical companies are increasingly leveraging Artificial Intelligence (Al) and Machine Learning (ml) to accelerate drug discovery, design more efficient clinical trials, optimise manufacturing processes, and enhance supply chain responsiveness. Generative AI platforms are reducing molecule design timelines from years to months, while AI-driven predictive analytics enables proactive quality management and real-time process monitoring. A national supercomputing facility at NIPER Guwahati and Amgens USD 200 million investment in an AI/data science centre in Hyderabad exemplify the growing convergence of cutting-edge technology and pharmaceutical science in India.

Patent Expiries and Rise of Biosimilars / Specialty Drugs

A significant wave of blockbuster drug patent expirations is creating substantial addressable market opportunities for high-quality generic and biosimilar manufacturers. With over USD 300 billion in branded drug revenues facing patent cliffs through the late 2020s, the market for complex generics and biosimilars is expanding rapidly. This trend directly benefits Indian pharmaceutical manufacturers — including CDMO-oriented companies — that have built strong capabilities in high-quality, cost-competitive formulation manufacturing across multiple therapeutic categories.

Trade Risks and Supply Chain Resilience

The escalation of US import tariffs on branded pharmaceuticals and persistent geopolitical tensions have intensified the global focus on supply chain diversification. Pharmaceutical companies are actively pursuing multi-sourcing strategies for APIs and finished formulations, reducing single-country dependence. This structural shift is creating substantial new opportunities for Indian manufacturers, with Indian CDMOs reporting over 50% year-on-year increases in Requests for Proposals (RFPs) from global pharmaceutical clients. The exemption of generic pharmaceuticals from US tariff measures validates Indias indispensable role in global pharmaceutical supply chains.

Shift Towards Self-Care, OTC and Wellness Products

Post-pandemic behavioural shifts have catalysed sustained demand for preventive healthcare, self-care products and consumer wellness formulations. The global wellness economy, valued at USD 6.3 trillion and forecast to reach USD 9 trillion by 2028, continues to drive demand for nutraceuticals, over-the-counter therapeutics, medicated skincare and personal care products. This trend expands the addressable market for versatile CDMO manufacturers capable of producing pharmaceutical-grade formulations across both prescription and consumer wellness categories.

Higher Standards in Manufacturing Quality and Regulatory Compliance

Regulators globally are raising the bar for pharmaceutical manufacturing quality, demanding digital records, data integrity protocols, continuous process validation, and real-time quality monitoring. Manufacturers that hold internationally recognised certifications — WHO-cGMP, ISO, GLP — and invest proactively in quality systems are increasingly preferred by global buyers seeking reliable, compliant supply partners. The pharmaceutical manufacturing market is growing at 7-8% annually, and quality-certified facilities are capturing a premium in the CDMO outsourcing market.

Source: https://www.weforum.ora/stories/2025/01/2025-can-be-a-pivotal-year-of-proaress-for-pharma https://www.arandviewresearch.com/industry-analysis/pharmaceutical-manufacturina-market https://alobalwellnessinstitute.ora/press-room/press-releases/the-alobal-wellness-economy-reaches-a-new-peak-of- 6-3-trillion-and-is-forecast-to-hit-9-trillion-by-2028

REGIONAL DYNAMICS

North America

North America remains the worlds largest pharmaceutical market, accounting for approximately 41.80% of global revenues in 2025. The United States continues to dominate, driven by high per- capita pharmaceutical spending, robust demand for biologics, specialty medicines, and oncology treatments. However, the sector faces intensifying policy headwinds: government-mandated drug price negotiations under the Inflation Reduction Act, aggressive tariff measures on imported branded drugs (100% duty effective October 2025), and sustained public scrutiny of pharmaceutical pricing are reshaping the commercial landscape. Major companies are committing substantial capital to US domestic manufacturing, creating complex market dynamics with long-term implications for global supply chain architectures.

Europe

Europes pharmaceutical market operates in an environment of subdued economic growth, tightly controlled drug pricing, and strong government focus on supply security and healthcare cost containment. There is robust and growing demand for biosimilars — where multiple European markets have among the highest adoption rates globally — and high-quality generics. The EUs comprehensive pharmaceutical legislation overhaul, focused on incentivising innovation while improving medicine accessibility, is reshaping the regulatory and commercial landscape. Regulatory authorities are emphasising supply chain resilience and strategic autonomy in pharmaceutical manufacturing, creating opportunities for approved non-European manufacturers that consistently demonstrate EMA-standard quality compliance.

Asia - Pacific

Asia-Pacific is the worlds fastest-growing pharmaceutical market, underpinned by rising healthcare coverage, expanding middle-class demand, significant government investment in healthcare infrastructure, and a highly cost-competitive manufacturing base. India and China remain the pre-eminent pharmaceutical manufacturing hubs, while ASEAN markets offer rapidly expanding demand for branded and generic medicines. Indias CDMO sector is experiencing particularly dynamic growth, as regulatory capabilities deepen and China+1 supply diversification strategies gain traction. The broader Asia-Pacific healthcare market is projected to reach USD 5 trillion by 2030, contributing approximately 40% to global healthcare growth — creating a significant and expanding market context for Indian pharmaceutical manufacturers.

Source: https://www.imf.org/en/publications/weo/issues/2026/01/19/world-economic-outlook-update-january-2026 https://www.fortunebusinessinsights.com/contract-development-and-manufacturing-organization-cdmo-outsourcing- market-102502

GLOBAL PHARMA OUTLOOK

The global pharmaceutical industry is positioned for sustained mid-to-high single-digit growth over the next 3-5 years, underpinned by fundamental, non-discretionary demand drivers: an ageing global population, rising prevalence of chronic and lifestyle diseases, expanding healthcare access in emerging markets, and continuous scientific and medical innovation. The industry is expected to reach approximately USD 2.00-2.35 trillion by 2030, with biologics, biosimilars, complex generics, and consumer wellness products representing the primary growth vectors.

Advances in AI-enabled drug discovery, digital health integration, and personalised medicine will reshape the sectors innovation paradigm, while supply chain resilience — a strategic imperative following the disruptions of the COVID-19 pandemic and subsequent geopolitical shocks — will continue to drive outsourcing to diversified, quality-certified manufacturers. Regional dynamics will diverge: North America and Europe will focus on pricing efficiency, biosimilar adoption, and reshoring incentives; Asia-Pacific — led by India — will lead in volume growth, supported by manufacturing competitiveness, rising domestic healthcare access, and China+1-driven CDMO outsourcing expansion.

Critically, the exemption of generic pharmaceuticals from US tariff measures — despite the imposition of 100% duties on branded and patented drugs — provides a structural tailwind for Indian generic and CDMO manufacturers. As innovators invest in new US domestic capacity (a process estimated to take 5-8 years to materialise at scale), Indias established, WHO-cGMP and FDA-approved manufacturing base remains indispensable to global pharmaceutical supply chains throughout the medium term. Management of Accretion Pharmaceuticals Limited believes that the Company is well-positioned to capitalise on these favourable structural dynamics.

Source: https://www.ibef.org/industry/pharmaceutical-india https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2221080

https://health.medicaldialogues.in/latest-news/indias-pharma-sector-3rd-largest-by-volume-

11th-by-value-globally-167056

Source: https://www.arandviewresearch.com/industry-analysis/pharmaceutical-market-report https://www.ropesaray.com/en/insiahts/alerts/2026/04/100-on-brand-us-imposes-new-tariffs- and-key-exemptions-on-patented-pharmaceuticals

https://www.fortunebusinessinsights.com/impact-of-covid-19-on-pharmaceuticals-market-102685

INDIAN PHARMA INDUSTRY OVERVIEW

Indias pharmaceutical industry occupies an unrivalled position in the global healthcare ecosystem. The country ranks 3 rd globally by production volume and — as confirmed by the Economic Survey 2025-26 — has been upgraded to 11 th globally by value, a significant advancement reflecting the sectors growing sophistication and output quality. India produces over 60% of the worlds vaccines, supplies approximately 20% of global generic medicines by volume, and manufactures approximately 60,000 generic brands across 60 therapeutic categories. With over 3,000 pharmaceutical companies, approximately 10,500 manufacturing facilities, and the highest number of US FDA-approved manufacturing plants outside the United States (650+), Indias pharmaceutical infrastructure is without peer among emerging market nations. The industrys cumulative turnover in FY 2023-24 was £4,17,345 crore, with a five-year average growth rate of 10.08%.

Indias pharmaceutical sector serves as a critical pillar of the nations export economy. Pharmaceutical exports surged to USD 30.47 billion in FY 2024-25 (+9.4% YoY), and in FY 2025-26 (April-February), exports reached USD 28.29 billion (+5.6%), on track for another strong full-year performance. The United States remains the largest single export destination at approximately 31% of total pharmaceutical exports. Africa, Europe, and emerging Asian markets represent significant and expanding export volumes, directly relevant to ACCPLs primary export geographies. The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana has issued 42.48 crore Ayushman cards (as of December 2025) and authorised health coverage of £1.60 lac crore, dramatically expanding the domestic pharmaceutical demand base. The Jan Aushadhi Kendra network crossed 18,646 operational outlets by March 2026, making quality generic medicines accessible across India.

Source: https://ddnews.aov.in/en/indian-pharma-exports-jump-over-9-to-usd-30-47-billion-in-2024-25-commerce-secretary/ https://www.tribuneindia.com/news/india/indias-pharma-exports-cross-usd-28-billion-till-february-likely- to-end-up-with-growth -in-rupee-terms-in-fy26 https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2210432 https://www.pib.gov.in/PressRelese Detailm.aspx Rs.PRID=2222493 https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2236292

Source: https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2204595 I https://www.pib.aov.in/PressReleasePaae.aspx Rs. PRID=2158120 I https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2201284&rea=3&lana=1

Performance in FY 2025-26

Indias pharmaceutical industry demonstrated continued global leadership in FY 2025-26. Export performance remained robust with pharma exports crossing USD 28 billion by end- February, on track for a record annual performance. Domestic market growth was driven by rising chronic disease prevalence, health insurance expansion under Ayushman Bharat, and government subsidy programmes for essential medicines. The PLI schemes delivered measurable outcomes: cumulative investment under PLI-Pharmaceuticals reached £40,294 crore, 87,535 direct jobs were created, and £2,328 crore in incentives were disbursed in Fy25 alone. Indias transition to a net exporter of bulk drugs represents a landmark structural achievement in reducing import vulnerability. Overall, the industry reinforced its standing as the Pharmacy of the World, delivering affordable, quality medicines to patients across 150+ countries.

Source: https://www.ropesaray.com/en/insiahts/alerts/2026/04/l00-on-brand-us-imposes-new-tariffs-and-key- exemptions-on-patented-pharmaceuticals https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2158120 https://www.ibef.orq/industry/pharmaceutical-india

Challenges

Despite strong fundamentals, the Indian pharmaceutical industry navigated several challenges in FY 2025-26. The threatened imposition of US tariffs on generic pharmaceuticals — though ultimately exempted in the final framework — created a period of significant uncertainty in the first half of the year, temporarily affecting investment decisions. Regulatory tightening in key export markets demanded sustained investment in quality compliance and data integrity systems. Dependence on imported APIs and Key Starting Materials, primarily from China, remains a structural vulnerability, though PLI-driven domestic API production is progressively reducing this dependence. Domestic price controls under the Drug Price Control Order (DPCO) continued to limit pricing flexibility across a significant segment of the market, while competitive intensity in the export generics market maintained pressure on per-unit margins.

Source: https://web-assets.bcg.com/45/16/f1efbcae4bb7a0a270fbfc9ab496/bcg-ipso-whitepaper-unleashing-the-tiger.pdf https://www.bcg.com/publications/2025/india-unleashing-the-tiger-indian-crdmo-sector

https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/indias-cdmo-market-set-to-double-by-

2028-amid-asias-healthcare-boom/articleshow/118086689.cms

INDIAN PHARMACEUTICAL MARKET

(Market Value in US$ Billion — 2021 to 2030 Projection)

YEAR	Market Size (US$ Billion)	Context
2021	USD 41 Bn	Post-pandemic base
FY 2023-24	USD 50 Bn	3rd by volume; upgraded to 11th by value
- 1 FY 2025-26 (Est.)	USD ~60 Bn *. \u2713	Robust export and domestic growth
2030 (Projected) s	USD 120-130 Bn s /	CAGR ~10%; Bain & Co. / IBEF projection

Source: IBEF India Pharma Report 2025 https://www.ibef.org/industry/pharmaceutical-india

Economic Survey 2025-26

https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2221080

https://www.ibef.org/blogs/indian-pharma-industry-to-touch-us-130-billion-by-.

INDIAN CDMO INDUSTRY

Indias Contract Development and Manufacturing Organisation (CDMO) sector is experiencing an extraordinary period of growth and global recognition. According to the BCG-IPSO White Paper (Unleashing the Tiger) released in February 2025 — a landmark collaborative report by the Boston Consulting Group and Indias Innovative Pharmaceutical Services Organisation — Indias broader CDMO market is valued at approximately USD 7 billion and is projected to double to USD 14 billion by 2028, capturing 4-5% of the global CDMO market. The narrower CRDMO (Contract Research, Development and Manufacturing) segment, estimated at USD 3-3.5 billion in 2024, is projected to reach USD 22-25 billion by 2035 at a CAGR of approximately 15% — nearly double the global average rate of expansion.

KEY DRIVERS OF GROWTH

^ Strong API and Generic Drug Manufacturing: Indias established expertise in Active Pharmaceutical Ingredients and generic drug production — backed by the worlds largest number of FDA-approved manufacturing facilities outside the US — provides an unmatched foundation for CDMO growth and client confidence.

V Cost Competitiveness: Indian CDMO services are priced approximately 20% lower than Chinese counterparts and 70-80% lower than Western facilities in terms of operational costs, delivering compelling value propositions to global pharmaceutical clients seeking to optimise their outsourcing economics.

^ Supply Chain Diversification: Global pharmaceutical companies are actively diversifying supply chains in response to the BIOSECURE Act, US-China trade tensions, and COVID-era supply shocks. Indian CDMOs witnessed a 50% year-on-year surge in RFPs in 2024, with momentum continuing strongly into FY 2025-26.

^ Regulatory Strength: With 650+ USFDA-approved plants and 2,000+ WHO-GMP approved facilities, Indias regulatory credentials across all major markets are unmatched among emerging pharmaceutical manufacturing hubs.

^ IPSO Formation: The establishment of the Innovative Pharmaceutical Services Organisation — a consortium of 11 leading Indian CRDMOs — in 2025 signals the sectors growing strategic cohesion, collective lobbying capability, and global ambition.

Source: https://www.india-briefina.com/news/indias-rise-as-a-alobal-cdmo-powerhouse-36108.html/ https://www.biospectrumindia.com/features/l8/27404/can-indias-cdmos-lead-the-next-biopharma-wave.html

Broader APAC Healthcare Context

Indias CDMO growth is embedded within the broader Asia-Pacific healthcare expansion. The APAC healthcare market is projected to reach USD 5 trillion by 2030, contributing approximately 40% to global healthcare growth — driven by rising income levels, expanding health insurance coverage, and significant government investment in healthcare infrastructure. India is positioned to capture a disproportionate share of APACs pharmaceutical manufacturing growth given its established infrastructure, deep regulatory track record, comprehensive product capabilities, and structural cost advantages.

Source: https://ddnews.aov.in/en/indian-pharma-exports-jump-over-9-to-usd-30-47-billion-in-2024-25-commerce- secretary/

https://www.tribuneindia.com/news/india/indias-pharma-exports-cross-usd-28-billion-till-february-likely-to-end-up- with-growth-in-rupee-terms-in-fy26

https://www.ropesgray.com/en/insights/alerts/2026/04/100-on-brand-us-imposes-new-tariffs-and-key-exemptions-on-

patented-pharmaceuticals

Perks of Outsourcing Drug Production to India

Extensive government support for local drug manufacturing through PLI, SPI, PRIP, PMBJP and FDI

liberalisation schemes, reducing risk for long-term manufacturing partnerships

Second-largest pharmaceutical and scientific workforce globally, offering depth, breadth and cost efficiency of technical expertise

Among the most competitive pharmaceutical manufacturing cost structures in the world, including labour, utilities and infrastructure

Capital expenditure up to 70% lower than comparable developed-country pharmaceutical manufacturing facilities, reducing capital deployment risk for outsourcing clients

Vast raw material availability, established domestic supply chain ecosystems, and a large domestic customer base providing scale and sourcing efficiency

Highest number of USFDA-approved and WHO-GMP approved manufacturing facilities outside the United States, providing regulatory assurance to global buyers

Key Government Initiatives
1 Initiative	Focus Area	Financial Outlay / Key Update (FY 2025-26)
Strengthening of Pharmaceutical Industry (SPl) Scheme	Infrastructure support & technoloay uparadation for pharma clusters and MSMEs	5500 Crores (FY 2021-22 to FY 2025-26); 7 API-CF projects approved; 210 reaistrations under RPTUAS; max incentive raised to 52 crore per beneficiary (Sep 2024)
PLI Scheme Pharmaceutical Formulations	Boost domestic pharmaceutical manufacturina and exports	515,000 Crores outlay; 540,294 crore cumulative investment arounded; 52,328 crore disbursed in FY25; 87,535 direct jobs created; 28 areenfield sites established
PLI Scheme Bulk Drugs / APIs	Reduce API import dependence; build domestic self-reliance	56,940 Crores outlay; 34 projects commissioned; India became net exporter of bulk druas in FY25 (surplus 52,280 crore vs. deficit 51,930 crore in FY22)
Pradhan Mantri Bhartiya Janaushadhi Pariyojana (pmbjp)	Affordable aeneric medicines via Jan Aushadhi Kendras	18,646 Kendras operational (March 2026); 2,110 medicines + 315 suraical items listed; FY25 sales 52,022.47 crore; cumulative citizen savinas ~538,000 crore
FDI Liberalisation in Pharma	Attract foreian investment in pharmaceutical manufacturina	100% FDI (areenfield); up to 74% FDI automatic route (brownfield); FDI inflows April-December 2025: USS 73.31 billion (+16% YoY)
/ Budget Allocation (FY 2025-26) Dept. of Pharmaceuticals	Strenathen pharmaceutical infrastructure, innovation and manufacturina	55,268.72 Crores (+28.8% over FY25 BE); includes 51,400 crore for Bulk Drua Parks and 51,460 crore for Medical Device Parks
Promotion of Research & Innovation in Pharma (PRIP Scheme)	Encouraae pharma & MedTech R&D, innovation and Centres of Excellence	55,000 Crores (FY 2023-28); 7 Centres of Excellence at NIPERs; 111 research projects approved; 5720.97 crore already supportina CoEs and active research

Source: https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2204595 https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2158120 https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2236292 https://www.pib.aov.in/PressReleseDetailm.aspx Rs.PRID=1805146 https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2173970

https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/indias-cdmo-market-set-to-double-by-

2028-amid-asias-healthcare-boom/articleshow/TI8086689.cms

KEY INDUSTRY TRENDS

Export Momentum and Biosimilar-Led Growth Despite Tariff Uncertainty

Indian pharmaceutical exports maintained their strong upward trajectory in FY 2025-26, with exports crossing USD 28.29 billion in April-February and expected to achieve approximately USD 30 billion for the full year — matching FY 2024-25s record performance. Despite the uncertainty created by threatened US tariff measures on generics earlier in the year, Indian pharmaceutical companies retained their dominant position in the US generic drug market, supplying approximately 47% of US generic drug prescriptions. The exemption of generic pharmaceuticals from the final US tariff proclamation of April 2026 validated Indias strategic indispensability to the US healthcare system and reinforced the structural sustainability of Indias pharmaceutical export model.

Source: https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2158120 https://www.pib.gov.in/PressReleasePage.aspx PRID=2236292

https://www.ibef.org/news/electronics-pharma-sectors-corner-70-of-production-linked-incentive-pli-disbursements-in-fv25

Policy Push — PLI for APIs and Expansion of Affordable Generic Access

The Production Linked Incentive scheme for bulk drugs delivered landmark results in FY 2024-25, and momentum continued into FY 2025-26: India became a net exporter of bulk drugs, with the trade balance swinging from a Rs.1,930 crore deficit in FY 2021-22 to a Rs.2,280 crore surplus. The fifth round of the PLI scheme for bulk drug manufacturing was launched to further expand domestic API capacity. Simultaneously, the Jan Aushadhi Kendra network crossed 18,646 outlets by March 2026, making quality generic medicines accessible at 50-90% lower prices than branded equivalents to millions of Indians — driving domestic generic pharmaceutical consumption volumes.

Technology and Investment Acceleration — AI, Drug Discovery and Global Majors

India is witnessing a material upgrade in pharmaceutical research infrastructure and digital capabilities. A national supercomputing facility at NIPER Guwahati targets AI and computational chemistry workloads for drug discovery. Amgens USD 200 million investment in a Hyderabad AI/data science technology centre marks a landmark commitment by a global innovator to Indias scientific capabilities. The formation of IPSO — the 11-member Indian CRDMO consortium- signals the sectors collective aspiration to compete at the highest tiers of global pharmaceutical outsourcing, including complex biologics and novel drug modalities.

Regulatory Strengthening and Quality Elevation

Facing international regulatory scrutiny, the Indian pharmaceutical industry has responded with significant investments in quality systems, data integrity infrastructure and manufacturing compliance. The government has simultaneously strengthened the CDSCO framework, expanded drug testing capacity, and introduced risk-based inspection protocols. Companies holding WHO-cGMP, ISO and other international certifications are increasingly preferred by global buyers, creating a meaningful quality premium in the CDMO and export formulation market — directly benefiting manufacturers like Accretion Pharmaceuticals that have maintained certified standards throughout.

Source: https://www.pib.gov.in/PressReleseDetailm.aspx Rs.PRID=2148570 https://www.india-briefina.com/news/indias-rise-as- a-global-cdmo-powerhouse-36108.html/ https://timesofindia.indiatimes.com/city/quwahati/citys-supercomputing-facility- to-enhance-druq-innovation-in-ne/articleshow/1233TI305.cms

Source: https://www.ibef.ora/bloas/indian-pharma-industry-to-touch-us-130-billion-by-2030 https://www.ibef.org/industry/pharmaceutical-india https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2221080 Source: https://ddnews.aov.in/en/indian-pharma-exports-jump-over-9-to-usd-30-47-billion-in-2024-25-commerce-secretary/ https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2158120 https://www.pib.aov.in/PressReleasePaae.aspx Rs.PRID=2204595 https://www.business-standard.com /economy/news/aari-pharma-electronics-enaineerina-made-up-50-of-fy25-exports-aovt- 125051600462 1.html

INDIAN PHARMA OUTLOOK

Growth and Opportunities

The Indian pharmaceutical industry is well-positioned for sustained, robust growth over the medium-to-long term. The domestic market is projected to reach USD 65-70 billion by the end of FY 2025-26 and USD 120-130 billion by 2030, growing at a CAGR of approximately 10% — driven by a compelling confluence of structural demand drivers, comprehensive policy support, and deepening global competitive advantages. Key growth opportunities include the rapid expansion of biosimilar manufacturing capabilities, the deepening of the CDMO sector as global outsourcing mandates shift towards India under China+1 strategies, and the progressive scaling of domestic API production under PLI incentives. The India-UK Free Trade Agreement, under advanced negotiation, is expected to eliminate tariffs on Indian pharmaceutical exports to the UK and ease regulatory barriers, further expanding Indias global pharmaceutical footprint. Indias unique and comprehensive positioning across the full pharmaceutical value chain — from APIs and generic formulations to CDMO services and emerging biologics — creates a resilient and diversified export and domestic growth platform.

Challenges

Despite the optimistic medium-term outlook, the Indian pharmaceutical sector faces several challenges requiring proactive management. Regulatory tightening and pricing pressures in key export markets continue to demand sustained investment in quality compliance and regulatory affairs capabilities. The structural dependence on imported APIs and KSMs — particularly from China — remains a vulnerability despite meaningful progress under PLI schemes. Any future broadening of US tariff measures to encompass generic pharmaceuticals would represent a significant headwind, though the political economy of such a move is complex given Indias role in keeping US drug prices affordable. Domestic price controls under the DPCO continue to limit pricing flexibility, while talent competition, rising scientific workforce costs, and infrastructure requirements for complex drug modalities pose medium-term operational pressures for the sector.

Source: https://www.ibef.org/industry/pharmaceutical-india

https://www.ibef.org/blogs/indian-pharma-industry-to-touch-us-130-billion-by-2030 https://www.pib.gov.in/PressReleasePage.aspx Rs.PRID=2221080

https://health.medicaldialogues.in/latest-news/indias-pharma-sector-3rd-largest-by-volume-

11th-by-value-globally-167056

COMPANY OVERVIEW

Accretion Pharmaceuticals Limited, headquartered at 29, Xcelon Industrial Park-1, Behind Intas Pharmaceuticals, Vasna-Chacharwadi, Taluka Sanand, District Ahmedabad - 382 213, Gujarat, India was established in 2012 and has grown into a dynamic, full-spectrum Contract Development and Manufacturing Organisation (CDMO) serving both domestic and international pharmaceutical markets. The Companys WHO-cGMP, GLP and ISO-certified manufacturing facility in Ahmedabad produces a comprehensive range of pharmaceutical formulations across all major dosage forms, including Tablets, Capsules, Oral Liquids (Syrups, Suspensions, Drops), External Preparations (Ointments, Creams, Gels, Lotions, Medicated Shampoos, Mouthwash) and Oral Powders (Sachets, Dry Syrups). ACCPLs therapeutic portfolio spans antibiotics, antibacterials, antifungals, antihistamines, antiallergics, antitussives, anticold preparations, antiulcer, antacid, vitamin and supplement formulations, and cardiac therapeutics — providing significant commercial resilience across therapeutic demand cycles.

Accretions business model is built on delivering high-quality, cost-competitive contract manufacturing services to pharmaceutical companies and merchant exporters, enabling its clients to bring affordable medicines to market efficiently. The Company exports to 30+ countries, with primary markets in Africa, Southeast Asia, and Latin America — regions with rapidly growing pharmaceutical demand and strong acceptance of high-quality Indian generic formulations. The Companys robust financial growth, strategic focus on direct exports, and diversified product portfolio position it for sustained success in the CDMO segment.

A defining milestone was achieved in FY 2025-26 when Accretion Pharmaceuticals Limited completed its Initial Public Offering on the NSE Emerge SME Platform. The IPO — comprising a fresh issue of 29,46,000 equity shares at 5101 per share — was oversubscribed 7.67 times, reflecting strong investor confidence in the Companys business model and growth prospects. The listing on 21 May, 2025 raised approximately 52,975.46 Lacs, which the Company is deploying towards working capital augmentation and capacity expansion. Post-IPO, the paid-up capital stands at 511,11,60,000 (1,11,16,000 equity shares of 510 each). The Company is promoted by Mr. Harshad Nanubhai Rathod (Chairman, Director & CFO), Mr. Vivek Ashokkumar Patel (Managing Director), Mr. Hardik Mukundbhai Prajapati (Director) and Mr. Mayur Popatlal Sojitra (Director).

Position of Accretion Pharmaceuticals Limited in the Global Pharma Landscape

y Leverages Indias cost-effective, quality-certified manufacturing infrastructure to deliver high-quality generic formulations at globally competitive prices to 30+ country markets.

y Export market diversification across Africa, Southeast Asia and Latin America — high- growth regions with accelerating pharmaceutical demand and favourable acceptance of Indian generics.

y WHO-cGMP, GLP, ISO certifications, Cambodia GMP, Rwanda GMP, Nigeria GMP, Malawi GMP provide international regulatory assurance and fulfil quality requirements of export destination country drug regulatory authorities.

y Niche CDMO positioning: specialising in full-service outsourced manufacturing across a comprehensive range of dosage forms — a breadth of capability that differentiates the Company as a one-stop partner.

y IPO proceeds being strategically deployed to expand manufacturing capacity and strengthen working capital, positioning the Company for accelerated revenue growth in FY 2026-27 and beyond.

y Well-placed to benefit from global pharmaceutical companies China+1 supply diversification strategies, creating incremental CDMO outsourcing mandates for quality certified Indian manufacturers.

Position of Accretion Pharmaceuticals Limited in the India Pharma Landscape

y Operates as a dynamic, certified CDMO from its Ahmedabad facility strategically located in Gujarat, one of Indias premier pharmaceutical manufacturing and export clusters.

y Comprehensive range of formulations across multiple dosage forms and therapeutic categories, reinforcing competitive capabilities in the generics contract manufacturing segment.

y Strong, long-term client relationships enabling tailored, customer-centric manufacturing solutions and sustained revenue visibility.

y Skilled pharmaceutical workforce aligned with cGMP principles, enhancing operational efficiency, product quality and regulatory compliance across all manufacturing operations.

y Beneficiary of Indias comprehensive pharmaceutical sector support framework Production Linked Incentive (pli), Promotion of Research and Innovation in Pharma MedTech Sector (PRIP), Scheme for Strengthening of Pharmaceuticals Industry (SPl), Ayushman Bharat — supporting long-term CDMO sector growth and market expansion.

FINANCIAL PERFORMANCE

For FY 2025-26, the company reported revenues of approximately 38,962.71 Lacs (389.63 crore) and Net Profit After Tax of approximately 3966.73 Lacs (39.67 crore) as compared to FY 2024-2025 revenues of 35,737.62 Lacs (357.38 crore), with a net profit of approximately 3679.35 Lacs (36.79 crore) — representing strong year-on-year growth momentum. The deployment of IPO proceeds toward working capital and capacity expansion supported continued revenue growth in H2 FY26 and is expected to sustain momentum beyond.

REVENUE FROM OPERATIONS (f IN LACS)

(FY 2023-24 to FY 2025-26 — Accretion Pharmaceuticals Limited)

Financial Year	Revenue from Operations(fLacs)	YoY Growth
FY 2023-24	33,366.52 Lacs	Base Year
FY 2024-25	35,737.62 Lacs	+70.4%
FY 2025-26	38,962.71 Lacs	+56.21%

EBITDA AND EBITDA MARGIN

(FY 2023-24 to FY 2025-26 — f Lacs and Percentage)

Financial Year	EBITDA (f Lacs)	EBITDA Margin (%)
FY 2023-24	3748.93 Lacs	22.25%
FY 2024-25	31,188.08 Lacs	20.71%
FY 2025-26	31495.14 Lacs	16.68%

PROFIT AFTER TAX (PAT) AND NET PROFIT MARGIN (FY 2023-24 to FY 2025-26 — f Lacs and Percentage)

Financial Year	PAT (f Lacs)	Net Profit Margin (%)
FY 2023-24	3387.52 Lacs	11.51%
FY 2024-25	3679.35 Lacs	11.84%
FY 2025-26	3966.75Lacs	10.79%

VERTICAL-WISE REVENUE MIX - FY 2025-26

(Domestic vs. Export Revenue Distribution — Accretion Pharmaceuticals Limited)

Revenue Vertical	Approximate Revenue Share	Key Markets / Remarks
Export Revenue L J	~ Rs. 766.45 lacs	Africa, Southeast Asia, Latin America, Middle East \u2014 30+ countries k 4
r Domestic Revenue	~ Rs. 8196.27 lacs	India \u2014 merchant exporters and domestic pharmaceutical clients

FINANCIAL RATIO

The following table presents the key financial ratios of Accretion Pharmaceuticals Limited:

Particulars	FY 2025-26	FY 2024-25	% Change	Reason for Change
Debtors Turnover Ratio	5.27	6.57	(20%)	Receivables grew faster than sales; longer collection cycle.
Inventory Turnover Ratio	3.16	2.78	13.46%	Higher revenue base improved stock turnover.
Interest Coverage Ratio	16.39	7.80	110%	Lower interest cost and higher EBIT post-IPO deleveraging
r Current Ratio k 4	r 2.90 k 4	r 1.44 k 4	r n 101.28% k 4	r A significant increase in current assets and improvement in the Companys liquidity position as compared to the previous year k 4
Debt- Equity Ratio	0.23	0.92	(75.59%)	Reduction in borrowings and/ or increase in shareholders equity.
Operating Profit Margin (%)	15.54%	19.52%	(20%)	Higher input and overhead costs during capacity scale-up.
Net Profit Ratio (%)	10.79%	11.84%	(8.90%)	Operating margin dip, partly offset by lower interest outgo.
Return on Net Worth (%)	17.67%	44.44%	(60%)	Enlarged equity base post-IPO dilutes near-term returns.

INTERNAL CONTROL AND ITS ADEQUACY

Accretion Pharmaceuticals Limited has established a robust and comprehensive internal control system commensurate with the scale, complexity and nature of its operations. The internal control framework provides reasonable assurance regarding the achievement of operational, financial, and compliance objectives. The framework is designed to ensure:

y Accuracy and Reliability of Financial Reporting: The Company maintains rigorous financial reporting controls, including a structured chart of accounts, periodic management reviews, reconciliation procedures, and a structured month-end and year-end closing process. These controls ensure financial statements are prepared in accordance with applicable accounting standards and present a true and fair view of the Companys financial position and performance, consistent with SEBI Listing Regulations, 2015 requirements applicable to listed SME entities.

y Compliance with Applicable Laws, Regulations and Internal Policies: The Company has implemented a comprehensive compliance management framework covering all applicable regulatory requirements — including the Companies Act, 2013, SEBI Listing Regulations, 2015, GST, Income Tax Act, Customs Regulations, Pharmaceutical Manufacturing Regulations (Schedule M, WHO-cGMP), Environmental Standards, and NSE Emerge SME listing Obligations. A dedicated compliance calendar and periodic legal and secretarial reviews ensure timely and complete adherence across all regulatory domains.

y Operational Efficiency and Safeguarding of Assets: Operational controls encompass production planning and scheduling, inventory management and valuation, procurement and vendor management procedures, quality assurance and quality control protocols, and fixed asset management including periodic physical verification. Access to systems and manufacturing areas is appropriately restricted. The Companys WHO-cGMP framework provides an additional, internationally validated layer of operational discipline and quality governance.

y Prevention and Detection of Frauds and Errors: The Company maintains a zero- tolerance policy for fraud and has implemented segregation of duties, multi-level authorisation hierarchies, surprise stock counts and cash verifications, and a Board-approved whistleblower policy as key preventive mechanisms. The internal audit function is conducted by independent qualified professionals, with findings and management responses reported directly to the Audit Committee of the Board on a periodic basis.

The Audit Committee of the Board of Directors provides strategic oversight over the internal control framework, reviews internal audit findings, monitors the implementation of corrective actions, and ensures that internal controls remain effective, risk-focused, and aligned with the Companys growth objectives. The Audit Committee met periodically during FY 2025-26 to review and discuss internal control matters. Management believes that the existing internal control system is adequate and operating effectively, providing reasonable assurance regarding the reliability of financial and operational information.

RISK MANAGEMENT

Operating in a globally competitive, scientifically complex, and heavily regulated industry, Accretion Pharmaceuticals Limited recognises that effective risk identification, assessment and mitigation is integral to achieving sustainable growth and protecting shareholder value. The Companys risk management framework is embedded in strategic and operational decision-making and is overseen by the Board of Directors and its Committees. Key risk categories, their nature, and the Companys mitigating strategies are detailed below:

Regulatory Risk

Nature of Risk: The pharmaceutical manufacturing sector is subject to stringent and continuously evolving regulatory requirements across domestic and international jurisdictions, including the Central Drugs Standard Control Organisation (CDSCO) in India, the US FDA, WHO Prequalification, and country-specific regulatory bodies across 30+ export destination markets. Any regulatory action — including warning letters, import alerts, manufacturing suspensions or product recalls — could materially impact the Companys operations, client relationships and reputation. International regulatory bodies are progressively raising standards for manufacturing quality, data integrity and documentation.

Mitigation: The Company mitigates regulatory risk through continuous monitoring of regulatory developments across all key markets, proactive investment in quality management systems, maintenance of WHO-cGMP, GLP and ISO certifications, regular internal quality audits and third-party regulatory audits, dedicated regulatory affairs personnel, and ongoing training of manufacturing staff in current Good Manufacturing Practice (cGMP) requirements.

Market Risk

Nature of Risk: The Company faces pricing pressures from pharmaceutical market dynamics, competitive intensity from other CDMO manufacturers, and exposure to demand fluctuations in export markets. Foreign currency risk — particularly USD, EUR and other export market currencies against the Indian Rupee — can impact export realisations and profitability. Client concentration risk, with significant revenues derived from a limited number of key clients, amplifies the impact of any single client relationship change.

Mitigation: The Company addresses market risk through continuous product portfolio diversification across dosage forms and therapeutic categories, active expansion into new export geographies (targeting 40+ countries), development of direct client relationships to reduce dependence on merchant intermediaries, and progressive pricing optimisation through higher-margin product and market focus. Currency risk is monitored regularly, with natural hedging and operational adjustments employed where feasible.

Operational Risk

Nature of Risk: Dependence on an uninterrupted supply of raw materials — particularly imported Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs), primarily from China — poses supply chain vulnerability. Any disruption in raw material availability due to geopolitical factors, supplier concentration, quality issues, or import policy changes could impact production schedules and customer commitments. Operational risks also include manufacturing process failures, equipment downtime, and human resource attrition in key technical roles.

Mitigation: The Company maintains relationships with multiple qualified suppliers across geographies for critical materials, maintains strategic raw material inventory buffers commensurate with production requirements, and is progressively qualifying alternative domestic API sources as PLI-driven Indian API production expands. The IPO funded working capital provides additional flexibility for raw material procurement and inventory management. Preventive maintenance programmes and trained personnel reduce equipment and process risk.

Financial Risk

Nature of Risk: The Companys financial risks include interest rate exposure on borrowings (substantially reduced post-IPO deleveraging), working capital pressures from the extended receivables cycle inherent in the export CDMO business model, and the risk of customer defaults or delayed payments impacting cash flows. Elevated debtor days in the export business require active working capital management and can constrain operational flexibility.

Mitigation: Post-IPO debt reduction has materially lowered interest exposure and the debt-equity ratio. The Company actively manages the receivables cycle through rigorous credit assessment of new clients, regular collection follow-up, and maintenance of Letters of Credit and advance payment terms for new export relationships. Progressive client diversification is expected to reduce concentration risk over the medium term. The strengthened equity base post-IPO provides financial resilience.

Reputational Risk

Nature of Risk: In the pharmaceutical industry, product quality is the non-negotiable foundation of commercial relationships and market trust. Any quality lapse, product recall, adverse patient event, or regulatory action associated with the Companys manufactured products could cause immediate and lasting reputational damage, impacting existing client relationships, the Companys ability to win new mandates, and its standing with regulatory authorities in export markets.

Mitigation: ACCPL maintains stringent quality control systems at every stage of the manufacturing process — from incoming raw material testing and approval, through in-process quality controls, to final product release testing and stability monitoring. The Companys WHO-cGMP and ISO certifications provide continuous external validation of its quality management systems. Ongoing investment in quality infrastructure, testing equipment and personnel training reinforces this commitment. A dedicated Quality Assurance team operates independently from production to provide objective quality governance.

SWOT ANALYSIS

The following 2*2 matrix presents a structured assessment of Accretion Pharmaceuticals Limiteds internal strengths and weaknesses, and the external opportunities and threats shaping its operating environment as of FY 2025-26:

STRENGTHS

^ Extensive expertise across diverse pharmaceutical capabilities and advanced manufacturing technologies.

^ Proven track record of consistent quality and on-time delivery across 30+ export markets.

^ Established long-term client relationships with reputed merchant exporters and direct customers.

^ Highly experienced management team and skilled workforce with deep pharmaceutical industry knowledge.

y WHO-cGMP, GLP and ISO-certified Ahmedabad facility ensuring world class operational and quality excellence.

^ IPO-funded capacity expansion and working capital reinforcement enhancing scalability and market reach.

^ Operates five production lines Tablets, Capsules, Oral Liquids, Oral Powders, and External Preparations and supported by a wide and diverse product portfolio.

OPPORTUNITIES

^ Global pharmaceutical companies increasingly choosing India as preferred CDMO partner under China+1 supply diversification strategy.

^ Rapid expansion in CDMO demand from emerging markets — Africa, Southeast Asia, Latin America and Middle East & Central Asia.

y Government PLI schemes, PRIP, PMBJP and enhanced DoP budget creating a conducive ecosystem for contract manufacturers.

^ Rising demand for affordable generics, OTC wellness products and nutraceuticals in domestic and export markets.

WEAKNESSES

^ Dependence on imported Key Starting Materials (KSMs) and APIs affecting supply reliability and delivery schedules.

^ Revenue concentration risk significant share of income from a limited number of clients.

^ Exposure to foreign currency fluctuations impacting export realisations and margins.

^ Elevated debtor days and working capital cycle requiring active monitoring and management.

THREATS

^ Evolving regulatory policies and rising quality standards could increase compliance costs and disrupt business continuity.

^ US tariff escalation and geopolitical trade tensions may disrupt global pharmaceutical supply chains.

^ Competitive pressure from larger Indian and global CDMO and generic players may compress margins and market share.

^ Price controls, reimbursement pressures and currency headwinds in key export markets affecting profitability.