Acutaas Chemicals Ltd Management Discussions

Global Economic Overview

The global economy demonstrated remarkable resilience in 2025 despite heightened geopolitical tensions and persistent policy uncertainty, expanding by 3.5%. Growth was supported by resilient global trade, a surge in technology investments, particularly in artificial intelligence, and favourable financial conditions. A weaker US dollar, coupled with proactive fiscal measures in major economies such as the US and Germany, further reinforced economic activity.

On the inflation front, global disinflation continued through 2025, with headline inflation easing from 5.8% in 2024 to 4.1%. However, underlying trends varied by region; core inflation stayed stubbornly high in the United States.

Ultimately, trade acted as a critical economic engine, marked by record-breaking merchandise surpluses in China and a boom in Asian tech exports. Overcoming early-year trade barriers and policy shifts, the global economy closed out 2025 with stronger-than-anticipated momentum.

GDP Growth (2025 to 2027 (P))

Region	2025	2026	2027 (P)
World Output (Global)	3.50%	3.00%	3.40%
Advanced Economies	1.90%	1.70%	1.80%
Emerging Market and Developing Economies	4.50%	3.80%	4.50%

Outlook

The outlook for the remainder of 2026 and into 2027 is shaped by two diverging forces: the shock from the war in the Middle East, which broke out in late February 2026 and led to the closure of the Strait of Hormuz, and AI-driven technological momentum, with growth projected to moderate to 3.0% in 2026 before recovering modestly to 3.4% in 2027. The ongoing conflict continues to weigh heavily on energy-importing nations and more vulnerable economies and has pushed global headline inflation back up to a projected 4.7% in 2026 before it eases to 3.9% in 2027, stalling the disinflation trend that had been in place since the start of 2024. World trade volume growth is also projected to slow sharply, from 5.0% in 2025 to 3.5% in 2026, before recovering to 4.3% in 2027. Conversely, countries and industries integrated into the global technology value chain are seeing a significant lift due to robust AI-driven demand. For the broader chemical industry, this implies that while traditional segments may face pressure from high energy and feedstock costs, elevated freight rates and geopolitical drag, tech-aligned segments are poised for expansion.

(Source: IMF, July 2026; IMF, April 2026)

Indian Economic Overview

India maintained its position as one of the worlds fastest-growing major economies in FY2026, with GDP growth accelerating to 7.7% from 7.1% in FY2025 (measured on the National Statistical Offices revised 2022-23 base series). This expansion was anchored by a robust 7.9% increase in Gross Value Added (GVA), propelled by strong performance across the manufacturing and services sectors. Concurrently, macro stability was bolstered by a sharp drop in food and fuel prices, which helped cool headline inflation to an average of 1.7% between April and December 2025 - a nine-month period that precedes the outbreak of the Middle East conflict in late February 2026.

The Union Budget 2026-27 further strengthens this economic foundation, targeting a 4.3% fiscal deficit while sustaining aggressive public investment. This is supported by strong policy momentum, including over 350 structural reforms such as the simplified GST 2.0 and the implementation of four streamlined Labour Codes. Moreover, the strategic focus has shifted towards frontier industries such as the Semiconductor Mission 2.0 alongside physical infrastructure, highlighted by a 60% expansion of the National Highway network since 2014. Financial inclusion initiatives like PM SVANidhi and expanding digital connectivity continue to ensure this growth remains widespread.

Outlook

India is poised to maintain its global growth leadership, with FY2027 GDP projected to expand between 6.8% and 7.2%, a range set out in the Economic Survey 2025-26, published in January 2026, ahead of the outbreak of the Middle East conflict. Reflecting potential headwinds from volatile oil prices and geopolitical friction, the RBI lowered its FY2027 growth projection to 6.6% in June 2026, from 6.9% in April. The RBI has also raised its FY2027 inflation projection to 5.1% from 4.6% previously, reflecting higher energy and imported input costs following the closure of the Strait of Hormuz. While this remains within the central banks 2-6% tolerance band, it marks a material step up from the subdued levels of FY2026 and points to a firmer input-cost environment for manufacturers through the year.

(Source: Economic Times; MoSPI, Provisional Estimates of Annual GDP for FY 2025-26, 5 June 2026; PIB, Economic Survey 2025-26; India Budget 2026-27; RBI Monetary Policy Statement, June 2026)

Specialty Chemicals Market Overview Global Market

The global specialty chemicals market is currently positioned as a strategically vital segment of the broader chemical industry, characterised by high-performance formulations and technical differentiation. In 2025, the market was valued at $757.98 Billion and is projected to reach $796.84 Billion in 2026. Over the forecast period ending in 2034, the market is expected to expand to $1,167.22 Billion, representing a compound annual growth rate (CAGR) of 4.90%.

Regionally, the Asia-Pacific continues to dominate, holding a 49.60% share in 2025 due to massive production bases in China and India. Unlike the commodity chemical sector, where competition is driven by scale, growth in specialty chemicals is increasingly tied to value creation, formulation expertise, and meeting the sophisticated needs of end-markets like healthcare, agriculture, and electronics.

A defining trend in the current landscape is portfolio migration, where companies are shifting away from undifferentiated commodity chemicals towards high-margin specialty solutions to avoid hypercompetitiveness and margin pressure.

Conversely, specialty segments such as semiconductor chemicals represent a significant bright spot. Fuelled by AI-driven data centre growth, the global semiconductor market is projected to grow well. This provides a robust opportunity for high-performance materials.

Growth is further propelled by the global energy transition, which is creating a strategic need for battery chemicals and materials supporting renewable power systems. As decarbonisation efforts accelerate, specialised materials used in energy storage and electric mobility are gaining strategic importance.

Simultaneously, sustainability and the circular economy are reshaping innovation priorities, with manufacturers increasingly developing bio-based formulations and low-carbon ingredients to meet regulatory mandates and customer sustainability targets. Digitalisation, particularly the adoption of Artificial Intelligence (AI), is also transforming the industry by accelerating R&D discovery, reducing experimental cycle times, and optimising supply chain resilience.

Global Specialty Chemicals Market Size ($ billion)

Year	Market Size ($ billion)
2025	757.98
2034	1,167.22

CAGR: 4.90% (Sources: Fortune Business Insights, Deloitte - 2026 Chemical Industry Outlook)

Indian Market

The Indian specialty chemicals market is undergoing a period of rapid expansion, solidifying Indias position as the sixth-largest producer of chemicals globally and the third-largest in Asia. In 2025, the Indian specialty chemicals market reached a valuation of $67.0 Billion and is projected to grow to $93.4 Billion by 2034, representing a CAGR of 3.65% during 2026-2034.

India is poised to capture a significant portion of international demand as global companies adopt the China+1 strategy to de-risk their supply chains. Regionally, West and Central India (led by Gujarat and Maharashtra) remain the dominant manufacturing hubs due to their advanced infrastructure and proximity to petrochemical feedstocks.

A primary driver for this growth is the surging demand from diverse enduse sectors, including agriculture, pharmaceuticals, and automotive.

As the worlds third-largest producer of agrochemicals, India is seeing massive investments in sustainable crop protection.

The evolution of the chemicals market offers distinct opportunities in high-growth niches. While commodity chemicals remain an industrial staple, the shift towards specialty polymers and electronic chemicals is accelerating. Indias electronic manufacturing is anticipated to double in the next five years, reaching nearly US $250 Billion, which will trigger a significant requirement for ultra-pure solvents, photoresists, and etchants.

Furthermore, the governments focus on sunrise sectors has identified batteries and semiconductors as critical priorities, providing a favourable backdrop for companies such as Acutaas to scale its specialised material offerings.

The industry is also witnessing a transformative shift towards green and sustainable chemistry. Companies are increasingly investing in bio-based surfactants and green solvents to align with global environmental mandates. Despite challenges like stringent regulatory protocols and environmental compliance, these hurdles are increasingly viewed as opportunities for enterprises to adopt sustainable methodologies and attain a competitive advantage.

Indian Specialty Chemicals Market Size ($ billion)

Year	Market Size ($ billion)
2025	67.00
2034	93.40

CAGR: 3.65%

(Source: IMARC)

Key Government Initiatives

The Indian government has implemented several strategic frameworks to bolster the chemicals ecosystem and attract private investment:

Budget Allocation: The Union Budget 2026-27 allocated ?185.72 crore to the Department of Chemicals and Petrochemicals to support sector-specific development.

Production-Linked Incentives (PLI): A dedicated central scheme has been implemented for Bulk Drug Parks with a budgetary outlay of ?1,629 crore, providing central assistance of up to ?1,000 crore per park, and the government is actively considering similar incentives for the broader chemical and agrochemical sectors.

Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR): Integrated manufacturing hubs like Paradip and Dahej have already attracted investments exceeding ?1.7 lakh crore, aiming to generate thousands of jobs and enhance supply chain integration.

Rare Earth Permanent Magnets (REPM) Scheme: A ?27,280 crore financial outlay to develop domestic manufacturing capacity

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(6,000 MTPA) and dedicated rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu.

Quality and Safety Standards: The mandatory implementation of Quality Control Orders (QCOs) for over 150 products and BIS-like certifications for imported chemicals aims to prevent the dumping of substandard materials and ensure global competitiveness.

National Monetisation Pipeline 2.0 (NMP 2.0): Launched in 2026 to unlock value from public assets, with a potential of 16.72 Lakh Crore to support infrastructure development through 2030.

The BHAVYA Rasayan Scheme: The Government of India has launched the BHAVYA Rasayan Scheme (Bharat Audyogik Vikas Yojana Rasayan) with a total financial outlay of ?3,030 Crore to establish three dedicated, world-class chemical parks. Designed as plug-and-play manufacturing hubs, these parks will cover at least 2,000 acres each and provide essential shared infrastructure, including common effluent treatment plants, solvent recovery facilities, and interconnected pipeline networks. Running from FY2027 to FY2031, the scheme offers central grants of up to ?1,000 Crore per park to enhance cost competitiveness, promote environmental sustainability, and help the Indian chemical industry integrate more effectively into global value chains. (Source: Press Information Bureau)

Outlook

The outlook for the Indian specialty chemicals market remains highly positive, with the total chemical sector projected to reach US $1 trillion by 2040. While the broader industry navigates global uncertainty, the emphasis on high-value segments and domestic manufacturing, supported by the 2034 vision for chemicals, will likely enable India to move up the global value chain.

Global Pharmaceuticals Market Overview

The global pharmaceutical market, valued at US $1,738.0 Billion in 2025, is projected to expand significantly to US $2,776.7 Billion by 2033, representing a CAGR of 6.1%. Growth is primarily propelled by the rising prevalence of chronic diseases, such as cancer, diabetes, and cardiovascular disorders, and an aging global population that requires sustained pharmacological intervention for multiple comorbidities. Furthermore, increasing healthcare expenditure and the rise of organised retail and digital distribution platforms are enhancing treatment access across both developed and emerging markets.

Key industry trends in the pharmaceutical sector are increasingly defined by technological integration and a shift towards precision medicine. The adoption of Artificial Intelligence (AI) is accelerating drug discovery and reducing development timelines, while digital tools are streamlining clinical trial monitoring. There is also a significant expansion in biologics, cell-based therapies, and monoclonal antibodies, which offer higher therapeutic specificity.

Furthermore, the expiration of major drug patents is fuelling the production of cost-efficient generics and biosimilars, broadening patient access. As manufacturers modernise supply chains and focus on quality standards, the market is becoming more resilient and better equipped to manage global disease burdens.

Global CDMO Market Size ($ billion)

Year	Market Size ($ billion)
2025	1,738.00
2033	2,776.70

CAGR: 6.1% (Source: Grand View Research)

CDMO Market

The global pharmaceutical contract development and manufacturing organisation (CDMO) market is experiencing significant growth, valued at US $166.0 Billion in 2025 and projected to reach US $293.6 Billion by 2033, with a CAGR of 7.4% from 2026 to 2033. The Asia Pacific region held the largest market share in 2025, accounting for 38.2% of the global total.

Market expansion is primarily driven by rising pharmaceutical R&D investments and an increasing global prevalence of chronic diseases, cancer, and age-related disorders. Furthermore, pharmaceutical companies are increasingly adopting outsourcing strategies to reduce costs, enhance flexibility, and access specialised production capabilities for complex therapies that they often lack in-house. Small and mid-sized biotech firms, in particular, rely on strategic collaborations with CDMOs to meet manufacturing needs across various development stages.

A defining trend in the CDMO landscape is the major shift from traditional small molecules to biopharmaceuticals, including monoclonal antibodies, vaccines, and mRNA treatments. Biologics now account for over half of the late-stage drug pipeline, and global spending on these medicines is expected to rise by 38% between 2024 and 2028. This evolution has spurred demand for highly specialised niches, such as antibody-drug conjugates (ADCs), peptides, and oligonucleotides.

CDMOs have become essential partners in the supply chain because producing these advanced therapies requires substantial capital and complex infrastructure, including single-use bioreactors and high-level cold-chain logistics. As regulatory bodies like the USFDA continue to approve record numbers of innovative biologics, CDMOs are increasingly providing end-to-end services to accelerate patient access to these life-saving treatments.

Global CDMO Market Size ($ billion)

Year	Market Size ($ billion)
2025	166.00
2033	293.60

CAGR: 7.4% (Source: Grand View Research)

Indian Pharmaceuticals Market Overview

The Indian pharmaceutical market, globally recognised as the Pharmacy of the World, was valued at $68.38 Billion in 2025 and is projected to reach $174.67 Billion by 2034, growing at a robust CAGR of 10.98%. The industry currently ranks third globally by volume and eleventh by value, supplying over 20% of the worlds generic medicines. Growth is primarily driven by the rising prevalence of chronic diseases, such as diabetes and hypertension, and a significant expansion in health insurance coverage, which reached 47.4% in rural areas and 44.3% in urban regions by 2025.

Furthermore, surging export demand and strong government policy support through Production Linked Incentive (PLI) schemes are critical accelerators.

Key trends in the sector include a transformative shift towards biologics and biosimilars, which are expected to reach a 25% market share by 2034. Digital health integration is also reshaping the landscape, with e-pharmacy platforms serving millions of users, while over 80% of life sciences organisations are implementing AI-driven drug discovery.

Furthermore, there is an increasing emphasis on API self-reliance to reduce vulnerability to supply chain disruptions, with manufacturing capacity already established for 26 critical materials under the PLI Bulk Drugs scheme.

Indian Pharmaceuticals Market Size ($ billion)

Year	Market Size ($ billion)
2025	68.38
2034	174.67

CAGR: 10.98%

(Sources: IMARC, Press Information Bureau)

Government Initiatives

Production Linked Incentive (PLI) Schemes: These include the PLI for pharmaceuticals (under which ?40,890 Crore of investment had been mobilised as of September 2025), the PLI for bulk drugs (establishing 55,100 metric tonnes of annual capacity for critical APIs/KSMs), and the PLI for medical devices.

Infrastructure Development: The government is establishing three bulk drug parks in Andhra Pradesh, Gujarat, and Himachal Pradesh (total project cost over ?6,306.68 Crore as of February 2026, with central assistance of ?1,000 Crore per park) and three medical device parks in Uttar Pradesh, Madhya Pradesh, and Tamil Nadu to create plug-and-play manufacturing hubs.

Biopharma SHAKTI: Announced in the Union Budget 2026-27 with an outlay of ?10,000 Crore, this initiative aims to build a world-class ecosystem for biologics and biosimilars, including three new NIPERs and 1,000 accredited clinical trial sites.

Research and Innovation (PRIP): The Scheme for Promotion of Research and Innovation in pharma medtech has established seven centres of excellence at NIPERs to move the industry towards innovation-driven growth.

Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP): To ensure affordable access, over 18,646 Jan Aushadhi Kendras are operational as of 28 February 2026, offering generic medicines at prices that saved citizens approximately ?8,000 Crore in FY2025, with a further ?5,637 Crore saved in FY2026 up to 30 November 2025.

Strategic Trade Agreements: Recently concluded or proposed Free Trade Agreements (FTAs) with the European Union, United Kingdom, and New Zealand are expanding market access through zero-duty benefits for numerous pharmaceutical and medical device tariff lines.

(Source: Press Information Bureau)

CDMO Market

The Indian Contract Development and Manufacturing Organisation (CDMO) market is experiencing robust expansion, valued at $8.52 Billion in 2025 and projected to reach $16.53 Billion by 2034, representing a CAGR of 7.39% from 2026-2034. This growth is driven by increasing pharmaceutical outsourcing, a well-established generics base, and a skilled scientific workforce. West India remains the dominant region with a 29.8% market share, supported by manufacturing clusters in Maharashtra and Gujarat.

In 2025, contract manufacturing services led the market with a 53.8% share, owing to its strong demand for active pharmaceutical ingredient production, finished dosage form manufacturing, and biologics outsourcing. Rising cost-efficiency imperatives and global capacity expansion initiatives are fueling the continued dominance. From a therapeutic perspective, oncology is the leading segment, holding a 33.2% share. Indias regulatory credibility is a major competitive advantage, with approximately 650 USFDA-approved manufacturing facilities, representing a quarter of all such plants outside the United States.

Key trends shaping the sector include a significant shift towards biologics and biosimilars, the adoption of end-to-end lifecycle management models, and the integration of AI and digital transformation to improve production efficiency. Supported by government initiatives like the Production-Linked Incentive (PLI) scheme, the market is increasingly attracting foreign investment as global firms seek asset-light models and supply chain diversification.

Indian CDMO Market Size ($ billion)

Year	Market Size ($ billion)
2025	8.52
2034	16.53

CAGR: 7.39%

2025-26

Semiconductor Chemicals Market Overview

Global Market

Global semiconductor sales reached a record $791.7 Billion in 2025, a 25.6% increase, and are projected to reach $1.5 trillion in 2026. This growth is fuelled by emerging technologies like AI, IoT, and 6G. Geographically, Asia Pacific led the surge with 45.0% growth. Productwise, logic devices remained the largest category at $301.9 Billion, followed by memory products at $223.1 Billion, reflecting the intense global demand for high-performance computing power and advanced digital infrastructure.

The global semiconductor chemical market, valued at $16.29 Billion in 2025, is projected to grow to $45.53 Billion by 2034, exhibiting a CAGR of 12.1%. This expansion is primarily driven by the 5G rollout and rising demand for consumer electronics, IoT, and electric vehicles, all of which require high-purity chemicals for lithography and wafer manufacturing.

High-performance polymers are seeing increased use in chip miniaturisation due to their dielectric properties and thermal stability, while acid and base chemicals remain essential for precise etching and cleaning. The integrated circuits segment currently holds the highest market share, supported by intense chip demand in automotive and telecommunication fields.

Geographically, the Asia Pacific is the dominant hub, hosting major facilities in China, Japan, and South Korea. However, the market faces restraints from geopolitical vulnerabilities and stringent environmental regulations. Nevertheless, rapid advancements in AI and device miniaturisation create significant opportunities for manufacturers to develop niche, high-purity chemical formulations for next-generation fabrication processes.

Global Semiconductor Chemicals Market Size ($ Billion)

Year	Market Size ($ Billion)
2025	16.29
2034	45.59

CAGR: 12.1%

(Source: Semiconductor Industry Association (Feb 2026), Semiconductor Industry Association (June 2026), Fortune Business Insights)

**South Koreas $576 Billion AI Gambit:** South Korea is orchestrating a great leap forward, transforming its landscape into a high-tech fortress. Anchored by a monumental $576 Billion strategy, the nation aims to cement global leadership in the AI-chip era. This sweeping drive, powered by Samsung and SK Hynix, focuses on a triple axis of semiconductors, physical AI, and data centres. By dominating the High-Bandwidth Memory (HBM) market, South Korea has claimed pole position in the AI race. The micro-level growth is equally rapid. The South Korean semiconductor materials market, valued at $1.69 Billion in 2024, is projected to reach $3.82 Billion by 2035 at a 7.70% CAGR. Demand for advanced fab materials, such as etchants, is skyrocketing as the nation builds new hubs to meet the burgeoning and insatiable global appetite for technological innovation and excellence. These advancements represent a strategic shift towards long-term industrial self-reliance. (Sources: Reuters, Spherical Insights)

Indian Market

Indias semiconductor market was valued at $59.78 Billion in 2025 and is projected to reach $180.20 Billion by 2034, growing at an 11.95% CAGR from 2026 to 2034. This expansion is fuelled by government initiatives like the $76,000 Crore PLI scheme and surging demand from AI, 5G, and electric vehicles. Consumer electronics dominates demand at 30.4% while South India remains the primary regional contributor, accounting for 36.2% of domestic revenues.

Growth is accelerated by massive industrial projects, including Tata Electronics $11 Billion fab and Microns assembly facility in Gujarat. As the digital economy scales towards $1 trillion, the demand for ultra-pure materials and specialised chemicals remains a critical tailwind for the domestic chemical industry.

Indian Semiconductor Market ($ Billion)

Year	Market Size ($ Billion)
2025	59.78
2034	180.20

CAGR: 11.95%

(Sources: IMARC, Grand View Research)

India Semiconductor Mission 2.0

Announced in the Union Budget 2026-27, ISM 2.0 marks a shift from capacity creation to technological depth. ISM 1.0 built the base: a $76,000 Crore incentive framework under which ten projects representing $1.60 Lakh Crore of investment had been approved across six states as of December 2025. ISM 2.0 now targets what those fabs will consume - semiconductor equipment and materials, full-stack Indian intellectual property, and more resilient supply chains - delivered through industry-led research and training centres. The $1,000 Crore provided for FY2027 funds this remit alone; manufacturing incentives continue separately under the Modified Programme for Semiconductor and Display Manufacturing, which carries an outlay of $8,000 Crore for the same year. By targeting 3nm and 2nm technology nodes, India aims to rank among the worlds leading semiconductor nations by 2035. Leveraging indigenous technologies like the DHRUV64 microprocessor, the mission secures national digital sovereignty and reduces reliance on global supply chains, marking a strategic transition from policy formulation to production readiness. (Source: Press Information Bureau)

Battery Chemicals Market Overview Global Market

The global lithium-ion battery market surpassed $150 Billion in 2025, marking a 20% year-on-year increase and a sixfold deployment growth compared to 2020. This expansion is fundamentally driven by electric vehicles, which now account for 70% of total lithium-ion deployment, followed by grid-scale energy storage at over 15%. This shift signifies a major transition from 2015, when portable electronics dominated half of the demand, to a landscape where batteries are strategic pillars for automotive and power infrastructure.

Directly tied to this momentum, the global battery chemicals market is valued at US $73.5 Billion in 2026 and is projected to hit US $127.6 Billion by 2033, representing a CAGR of 8.2%. Lithium-ion battery chemicals remain dominant, commanding 44% of the market share, while cathodes represent the largest application segment at 46%. Regionally, the Asia Pacific leads with a 62% share, though North America is rapidly accelerating due to domestic gigafactory investments.

Global Battery Chemicals Market Size ($ Billion)

Year	Market Size ($ Billion)
2026	73.50
2033	127.60

CAGR: 8.2%

(Source: IEA, Persistence Market Research)

Indian Market

Indias battery market is on a high-growth trajectory, valued at $14.01 Billion in 2026 and projected to reach $23.30 Billion by 2031 with a 10.71% CAGR. Demand for advanced chemistry cells (ACC) is expected to grow at a 39% CAGR between 2025 and 2030, from a base of 40 GWh in 2025.

This explosion is fuelled by the $18,100 Crore PLI-ACC scheme and the PM E-DRIVE initiative, which have accelerated EV adoption in the two- and three-wheeler segments. Declining lithium-ion pack prices and expanding telecom and data-centre backup needs further anchor this demand.

India is rapidly transitioning from a materials importer to a domestic hub through the National Critical Mineral Mission. Lithium Iron Phosphate (LFP) remains the dominant chemistry, driving demand for iron phosphate, graphite, and electrolyte materials. Emerging segments like sodium-ion and solid-state batteries (the latter projected for a 33.5% CAGR) are gaining traction to mitigate mineral supply risks.

Geographically, 72% of capacity is concentrated in Gujarat, Tamil Nadu, and Maharashtra. These trends highlight significant opportunities in electrolyte additives and cathode precursors to support Indias burgeoning gigafactory pipeline.

(Source: Mordor Intelligence, ET Energy)

Company Overview

Acutas Chemicals Limited (formerly Ami Organics Limited) is a premier R&D-driven global chemical company with over two decades of expertise. We are transitioning from an advanced pharmaceutical intermediates specialist into a multi-vertical leader powering global health and new-age technologies.

At Acutas, we play a key role in manufacturing advanced pharmaceutical intermediates and niche specialty chemicals, including electrolyte additives for lithium-ion batteries and photoresist chemicals used in the semiconductor industry. With a strategic presence across domestic and international markets, we have established ourselves as a trusted global player in the specialty chemicals industry.

Our Department of Scientific and Industrial Research (DSIR)-approved in-house R&D centre is supported by dedicated teams across research and development, quality control, quality assurance and regulatory affairs. Manufacturing operations are carried out through state-of-the-art, GMP-compliant facilities located in Sachin, Ankleshwar and Jhagadia in Gujarat, and Greater Noida in Uttar Pradesh.

Key Highlights, FY2026

• Officially rebranded from Ami Organics Limited to Acutas Chemicals Limited to reflect a sharper focus on multi-vertical specialty solutions.
• Awarded the EcoVadis Platinum Accreditation in August 2025.
• Completed Phase 1 capex of electrolytes additives plant at the Jhagadia facility (2,000 MTPA capacity each for VC and FEC).
• Established Indichem Inc., a joint venture with South Koreas J & Materials Co. Ltd., to produce and supply advanced semiconductor chemicals in South Korea and global markets.
• Integrated high automation via Distributed Control Systems (DCS) at Ankleshwar, and Jhagadia facilities (Phase 1 of electrolytes additives plant) to ensure operational precision and safety.

Metric	Value
Revenue from Operations	?13,394 Mn
EBITDA	?4,804 Mn
EBITDA Margin	35.9%
Metric	Value
Profit After Tax	?3,564 Mn
PAT Margin	26.6%
Countries served since inception	55
Employees	1,000+
Products across four business verticals	610+
Customers	600
Manufacturing facilities	5 (South Korean Manufacturing capex is ongoing)
R&D team members	130+

Our Pharma Intermediates Business

Pharmaceutical intermediates remain at the core of our business, reflecting decades of expertise in complex chemistry and process development. We manufacture advanced intermediates for regulated and generic APIs as well as New Chemical Entities (NCEs), with a portfolio of over 500 products spanning 17+ therapeutic segments and serving global pharmaceutical leaders.

During the year, we continued to scale our Contract Development and Manufacturing Organisation (CDMO) platform, which was the principal driver of growth in this segment. Four products were successfully validated under the CDMO model during FY2026, adding to our anchor innovator contract and building a pipeline that will be commercialised progressively as customer offtake scales. Our capability to manufacture up to the N-1 stage across multiple routes of synthesis, backed by backward integration to basic chemicals, continues to position us as a preferred development and supply partner for global innovators.

Our commitment to quality and regulatory excellence remained unwavering. During the year, our Ankheshwar manufacturing facility completed a Good Manufacturing Practices (GMP) inspection by the Pharmaceutical and Medical Devices Agency (PMDA), Japan, without any critical or major observations. The subsequent GMP compliance certification further strengthened our credibility as a trusted global manufacturing partner.

Our Semiconductors Business

Acutaas Chemicals has established a pioneering position as Indias only manufacturer of electronic-grade photoresist chemicals, entering the sector through acquisition of Baba Fine Chemicals in 2023. A defining strategic milestone in FY2026 was the international expansion into South Korea via the joint venture Indochem Inc., which places us in one of the worlds top three semiconductor markets.

This hub is designed to meet the stringent Just-in-Time (JIT) inventory requirements of global leaders in Korea. While manufacturing facility is currently under construction in South Korea, the R&D centre is already operational. This expansion aligns with a strategy where India serves as the manufacturing backbone, while overseas entities provide the highest front end for advanced electronic chemicals.

Our Battery Chemicals Business

We entered the battery chemicals space in 2022 through our subsidiary, Ami Organics Electrolytes Limited (Acutaas Chemicals Electrolytes Private Limited w.e.f July 28, 2025). Since then, we have developed essential electrolyte additives for lithium-ion battery cells and emerged as a global Pioneer among non-Chinese players to innovate at scale. Our key products in this segment include Vinylene Carbonate and Fluoroethylene Carbonate, among others.

Commodity Chemicals Business

We also manufacture specialty fine chemicals such as parabens, methyl salicylate, and niche KSMs for industries including cosmetics, agrochemicals, and fine chemicals. Over the years, we have built a portfolio of 30+ products and served 400+ customers across 55+ countries.

Growth Enablers Rapid Scaling of the Pharmaceutical CDMO Engine

Our Advanced Pharmaceutical Intermediates segment, specifically the Contract Development and Manufacturing Organisation (CDMO) vertical, is a primary growth engine. Beyond our anchor innovator contract, we have successfully validated four additional CDMO products. By manufacturing up to N-1 stages, we remain a preferred partner for global innovators.

Pioneering Leadership in Battery Chemicals

Acutasis Indias pioneer electrolyte additives manufacturer, identifying a niche, high-barrier entry point into the energy storage sector. With Phase 1 capex completed at the Jhagadia facility, we have established a 2,000 MTPA capacity for both Vinylene Carbonate (VC) and Fluorothylene Carbonate (FEC). Phase 2 Capex for the additional product is ongoing with clear visibility of customers demand for all three products.

Strategic Global Gateway via South Korea

The establishment of Indichem Inc. in South Korea- one of the worlds top three semiconductor markets- is a critical strategic move. This joint venture allows Acutasis to meet the strict Just-in-Time (JIT) inventory requirements of global electronics leaders. While the manufacturing facility is under construction, the R&D centre is already operational, sending samples of ultra-high-purity materials to prospective customers in Korea, Japan, and Taiwan to accelerate time-to-market.

World-Class Automated Manufacturing and Calibrated Capex

Acutasis maintains a calibrated capex strategy, building plants only when there is certain demand visibility. Our newest manufacturing facilities utilise industry-leading automation, such as Distributed Control Systems (DCS) and Powder Transfer Systems (PTS), to ensure operational consistency and safety. Furthermore, all plants are Multi-Purpose Plants (MPP), allowing for rapid scalability and the ability to switch products with minimal modifications.

Supply Chain Resilience and Strategic Diversification

We have successfully de-risked our future by diversifying into new revenue segments, reducing dependence on any single industry. This resilience is bolstered by a proactive supply chain strategy, where 59% of raw material sourcing is localised within India. This domestic focus allowed Acutasis to perform strictly as per expectation despite global shipping and raw material volatility in FY2026.

Challenges and Risks

As a manufacturer of advanced pharmaceutical intermediates and specialty chemicals, Acutasis Chemicals operates in a highly regulated environment that requires strict adherence to quality and compliance standards. Any failure to meet these requirements could affect operations, financial performance and reputation.

Accurate demand forecasting is equally important, as misjudgements can create inefficiencies and impact profitability. We also operate under stringent environmental, health and safety regulations, and any non-compliance or adverse regulatory change could disrupt business operations.

In addition, Acutasis Chemicals depends on strong customer and supplier relationships, and any disruption could materially affect performance. Unplanned or prolonged interruptions in manufacturing operations could further impair business continuity and financial outcomes.

Risk Management

Our risk management framework is designed to identify, assess and mitigate risks in accordance with the Companies Act, 2013, and the SEBI (Listing Obligations and Disclosure Requirements) Regulations. In line with Regulation 21 of the SEBI Listing Regulations, the Board has constituted a Risk Management Committee, comprising an Independent Director, to oversee the Companys risk strategy and governance. Further strengthening this framework, we have adopted the Three Lines of Defence model and established a dedicated Risk Coordinator (RC Group) to drive effective risk identification, monitoring and mitigation across the organisation.

2025-26

Risk Category	Generic Description	Qualitative Mitigation Measure
Geopolitical Risk	Disruptions arising from international conflicts, shipping volatility, and shifting trade policies affecting global logistics.	We localise 59% of sourcing in India and utilise the South Korean JV to meet Just-in-Time requirements of global customers.
Operational Risk	Potential failures in internal processes, safety protocols, or systems that could impact manufacturing and production continuity.	We operate world-class, automated plants supported by Distributed Control Systems (DCS) as well as have rigorous global SOPs in place in older plants.
Raw Material Risk	Volatility in the pricing or availability of essential chemical feedstocks due to external supply chain shocks.	We are leveraging 90%+ backward integration to basic chemicals.
Demand Risk	Fluctuations in market appetite influenced by global economic cycles or shifts in specific end-user industries.	We are diversifying our business into two high-growth verticals. Our Pharmaceutical intermediates business majorly caters to chronic diseases, which typically do not see major demand disruption unless a new drug is introduced.
Product Risk	Risks associated with product obsolescence, rapid commoditisation, or failure to meet stringent quality benchmarks.	We are systematically reshuffling the portfolio towards higher-value specialty products and securing long-term contracts for validated CDMO molecules.
Competition Risk	Pressure from global and domestic players that could lead to market share loss or downward pricing pressure.	We maintain a 50–90% global market share in key intermediates and pioneering high-barrier sectors like electrolyte additives and semiconductors.
Customer Risk	Over-reliance on a limited number of large clients where the loss of a contract impacts the top line.	We serve a diverse base of 600 customers across 55+ countries while securing long-term agreements with customers.
Technology Risk	Obsolescence of manufacturing processes or failure to innovate at the pace of global industry advancements.	Implementing advanced technology platforms like flow and photochemistry.
Forex Risk	Exposure to foreign exchange rate fluctuations that impact the value of international trade and procurement.	We are balancing global sales with a 59% domestic procurement strategy to create a qualitative natural hedge.
Environment Risk	Regulatory changes regarding emissions or failure to meet global sustainability and ESG benchmarks.	Our advanced wastewater treatment systems and ISO-certified facilities strengthen responsible waste management, environmental stewardship and regulatory compliance. We have received Ecovadis Platinum rating which is also a testament to our focus on sustainability practices.

Human Resources

At Acutaa, we regard human capital as one of our most important assets, recognising that the commitment and continuous efforts of our people are central to our success. As of 31st March 2026, we have employed 1,007 people, forming a strong and capable workforce. With a strong focus on training and development, we invest in upskilling our employees to enhance productivity and adaptability. By fostering a culture of continuous learning, we equip our teams with the knowledge and tools needed to perform effectively and build long-term organisational resilience in a competitive environment.

We are also committed to inclusive practices, ensuring equal opportunities and welcoming diverse perspectives across the organisation. This approach strengthens innovation, collaboration and team cohesion. In addition, we encourage cross-functional teamwork, enabling employees across departments to share expertise and develop creative solutions to complex challenges. Together, these efforts help us build a dynamic, agile workforce prepared to meet the evolving needs of the industry.

Financial Performance

Particulars	Numerator/Denominator	UoM	As of 31st March 2026	As of 31st March 2025	Change in %	Remark for Deviation
Current ratio	Current assets / current liabilities	Times	3.82	3.91	(2.46%)	Due to reduction in cash and cash equivalent including bank balances and increase in current borrowings
Debt-equity ratio	Total debt / equity	Times	0.02	0.01	149.76%	Due to increase in debt
Debt service coverage ratio	Earnings available for debt service / interest + instalments	Times	120.06	30.08	299.12%	Due to increase in earnings available for debt service
Return on Equity Ratio	Profit after tax / average shareholders equity	Percentage	23.3%	16.0%	45.60%	Due to substantial increase in PAT
Inventory turnover ratio	Total turnover / average inventories	Times	6.51	5.98	8.90%	Due to higher turnover
Trade receivables turnover ratio	Total turnover / average accounts receivable	Times	4.10	4.05	1.20%	Due to higher turnover
Trade payables turnover ratio	Total purchases / average accounts payable	Times	3.84	3.92	(2.09%)	Due to higher purchase

Internal Control Systems and Their Adequacy

At Acutaxas, we have extensive internal control systems appropriate for the scale and complexity of our operations as well as the nature of our business. They offer a fair level of assurance regarding the efficacy and efficiency of our business operations, the accuracy of our financial reporting, and adherence to all relevant legal and regulatory requirements. The management regularly tests and updates the internal control systems, which combine modern and old processes for both design and operational effectiveness, and the Statutory Auditors conduct audits of the same. Senior Management and the Audit Committee receive reports on significant audit observations, actions taken in response, and recommendations made thereon for their consideration. The reputed audit company M/S, K.C. Mehta & Co. LLP (Chartered Accountants), which specialises in internal audits and assurance, has been hired by Acutaxas Chemicals. The Audit Committee reviews and approves the yearly internal audit plan to guarantee adequate coverage at the start of each fiscal year. The Management and Audit Committees examine the status of identified actions, the progress of the internal audit plan, and important observations made during internal audits on a quarterly basis.

Cautionary Statement

Management Discussion and Analysis remarks that describe the industry landscape, our objectives, plans, estimates, and expectations may be considered forward-looking statements under applicable securities laws and regulations. The actual outcomes could be very different from the stated or anticipated ones. Economic factors that impact supply and demand, pricing conditions in the domestic and international markets where we operate, competitive pressures in these markets, changes in governmental regulations, tax laws and other statutes, and incidental factors are all significant variables that could have an impact on the results.