Advanced Enzyme Technologies Ltd Management Discussions

Global Economy

The global economy maintained moderate growth through 2025, supported by technology-led investment, accommodative financial conditions and resilient private sector activity. Inflation continued its gradual decline, aided by softer commodity prices and normalising supply chains. Growth, however, remained uneven, with advanced economies facing subdued demand while emerging markets, particularly in Asia, continued to outperform on the back of strong domestic consumption.

The more consequential development for global business conditions has been the geopolitical situation in West Asia. The US-lsrael-lran conflict in early 2025 triggered a partial blockade of the Strait of Hormuz, one of the worlds most critical energy transit corridors, sending oil prices sharply higher. For import-dependent economies such as India, China and Thailand, this has translated into higher energy and input costs, increased logistics expenses and elevated working capital requirements. Fresh Houthi threats against vessels transiting the Red Sea and the Suez Canal corridor have raised the prospect of simultaneous disruptions across two major maritime trade routes. This is adding further pressure on freight costs and supply chain reliability.

Trade policy uncertainty has compounded these pressures. US tariff actions and the resulting supply chain realignments have prompted businesses globally to reassess sourcing dependencies, accelerating diversification away from single-source manufacturing.

For specialty biochemical producers with a strong Indian base and established global distribution, this shift is creating durable sourcing opportunities. Customers across healthcare, food processing, animal nutrition and industrial applications are actively seeking reliable non-China alternatives.

If geopolitical and trade disruptions persist, global growth in 2025 and 2027 could come under pressure. Inflationary risks could rise and emerging markets may face additional strain from currency volatility and higher import bills. Companies combining supply chain resilience, sustainable process credentials and differentiated science-led products are better placed to navigate this environment.

Indian Economy

Indias economic performance in FY 2025-26 was broad-based and resilient, sustaining the countrys position as the fastest growing major economy globally. Rural demand strengthened on the back of healthy agricultural output and normal monsoon conditions. Urban consumption held firm, supported by formal job creation and steady credit expansion.

Public capital investment continued to anchor growth, with government spending on infrastructure, logistics and digital public infrastructure improving supply-side efficiencies across the economy. The financial sector remained in good health, with strong bank capitalisation, improved asset quality and healthy credit growth supporting both investment and consumption. Indias ability to attract sustained foreign direct investment, underpinned by policy stability and a large skilled workforce, has added further durability to this foundation.

The external position remained broadly stable, with foreign exchange reserves at adequate levels. Indias dependence on oil imports, however, keeps it exposed to global energy price movements, with potential consequences for inflation, the current account and currency stability. Food price volatility and supply-side pressures remain additional watchpoints on the inflation front.

Against this backdrop, biotechnology and specialty ingredients are emerging as a sector of growing strategic significance. Policy support for domestic life sciences manufacturing and rising investment in agri nutrition are creating a more supportive environment for Indian producers in this space. The global shift towards sustainable enzyme based alternatives to chemical and thermal processes is adding to this momentum. As global buyers accelerate China+1 diversification, customers across healthcare, food processing, animal nutrition and industrial applications are actively seeking science-led Indian suppliers with proven global credentials.

Industry Overview

Enzymes Market

Market Size

The global enzymes market continues to witness steady growth, driven by its expanding application across a wide spectrum of end-use industries. Valued at US$ 15.2 billion in 2025, the market is projected to grow from US$ 15.1 billion in 2025 to US$ 28.5 billion by 2035, at a CAGR of 5.5%.

The Indian enzymes market is witnessing robust growth, supported by increasing industrial adoption and a favourable policy environment. The market was valued at US$ 500.1 million in 2025 and is projected to reach US$ 952.5 million by 2034, growing at a CAGR of 7.42% during 2025-34.

Enzymes play a critical role in the synthesis of active pharmaceutical ingredients (APIs) and the production of biologies, underpinning their growing relevance in the healthcare sector. Their application is also increasing in nutraceuticals and sports nutrition, alongside broader industrial adoption driven by the need for efficient and sustainable processing solutions.

Their high specificity, efficiency and eco-friendly nature reduce reliance on harsh chemicals and lower energy consumption, aligning well with the global shift towards green and sustainable manufacturing. The market outlook remains positive, supported by advancements in biotechnology, rising consumer preference for natural products and a favourable regulatory environment. Continued innovation in enzyme engineering and immobilisation technologies is further expected to expand application areas and sustain long term growth.

Emerging Trends

Customised enzyme solutions: Growing demand for application-specific enzymes is driving the development of tailored solutions that enhance process efficiency, optimise performance and address unique industry requirements.

Multi-enzyme systems: The adoption of enzyme cocktails and multi-biocatalyst systems is increasing as industries seek integrated solutions capable of delivering improved outcomes across a broader range of applications.

Sustainability-driven applications: Enzyme usage is expanding into emerging areas such as wastewater treatment and biofuel production, highlighting the sectors growing contribution to sustainability and the transition towards a greener economy.

Key Demand Drivers

Industrial expansion: Growing scale across pharmaceuticals, nutraceuticals, animal feed, food processing, detergents, textiles and paper & pulp is driving wider enzyme adoption across regions.

R&D focus: Increased investments in biotechnology and protein engineering are enabling the development of more efficient enzymes. This is improving yield, reducing process time and enhancing product quality across food and beverages, animal nutrition and specialty ingredients.

Eco-friendly solutions and processes: Rising preference for eco-friendly solutions, combined with increasing emphasis on energy efficient and low-chemical processes, is accelerating the adoption of enzyme based technologies across industries.

This shift is enabling reduced energy consumption, minimised chemical usage and improved yields.

Consumer-led segments: Growing use of enzymes in personal care and cleaning products is also driving demand. This is supported by evolving consumer preference for safer, cleaner and more sustainable alternatives to harsh chemicals.

Regulatory and policy support: Sustained government emphasis on biotechnology and innovation, via targeted policies, grants and supportive regulations, is also creating a favourable environment, accelerating market expansion.

Industrial Enzymes Market

Market Size

The global industrial enzymes market is growing steadily, driven by the accelerating shift towards sustainable manufacturing and green chemistry practices. Valued at US$ 7,288.0 million in 2025, it is projected to reach US$ 9,904.4 million by 2030, reflecting sustained adoption across both food and non-food industrial applications.

Non-food segments are emerging as a key growth engine, with industries such as textiles, leather and pulp & paper increasingly integrating enzyme based solutions to improve process efficiency, reduce chemical intensity and meet evolving environmental standards. Innovation remains a key pillar of this growth, with continuous advancements enhancing enzyme specificity, stability and scalability across diverse applications, enabling their deployment across more complex industrial workflows.

The Indian industrial enzymes market is experiencing strong growth, supported by expanding end-use industries and increasing focus on sustainable processing. Valued at US$ 271.3 million in 2025, the market is projected to reach US$ 394 million by 2030, growing at a CAGR of 7.7%. India ranked as the third-largest market in 2025 and is expected to retain its position through 2030, growing at a pace that outstrips the overall global market.

The non-food segment, in particular, is witnessing steady expansion, driven by increasing on-ground adoption across core industrial sectors and a gradual shift towards cleaner processing practices. The detergent and cleaning segment is also emerging as a key demand driver, with enzymes enabling effective stain removal at lower temperatures, supporting water and energy savings and aligning with growing consumer preference for high performance yet environmentally responsible solutions.

Emerging Trends

Transition towards green chemistry and sustainable processing:

Enzymes are increasingly replacing conventional chemical processes, enabling lower energy consumption, reduced emissions and minimal chemical waste across industrial applications.

Advancements in enzyme engineering and performance optimisation:

Ongoing developments in protein engineering and biotechnology are enhancing enzyme specificity, stability and scalability, enabling deployment across more complex and large scale industrial processes.

Deepening integration across industrial value chains:

Enzyme usage is expanding from selective applications to multi stage integration across industries such as textiles, leather, pulp & paper, detergents and pharmaceuticals.

Shift towards high performance, biodegradable solutions:

Rising demand for environmentally responsible and high efficiency solutions, particularly in cleaning, industrial maintenance and processing, is accelerating enzyme adoption.

Convergence with global regulatory and sustainability benchmarks:

Tightening environmental norms and increasing alignment with global standards on emissions, water usage and chemical discharge are reinforcing the role of enzymes as a preferred alternative.

Key Demand Drivers

Growth in end-use industries:

Rising production volumes in textile, leather and pulp & paper industries, especially in export oriented clusters, are increasing the demand for enzyme based processing to enhance quality, improve yield and reduce reprocessing costs.

Export compliance and sustainability requirements:

Stringent international standards in sectors such as textiles and leather are pushing manufacturers to adopt enzyme based processes to meet environmental and quality benchmarks.

Rising demand for energy-efficient cleaning solutions:

Increased adoption of enzyme based detergents is being driven by the need for effective performance at lower temperatures, supporting energy and water savings.

Cost optimisation through process efficiency:

Enzymes are enabling reduced water usage, lower energy consumption and decreased reliance on harsh chemicals, making them economically viable for large-scale industrial adoption.

Policy support and biotechnology ecosystem development:

Government-led initiatives and investments in biotechnology are supporting domestic enzyme production, innovation and adoption across industries.

Human Healthcare Enzymes Market

Market Size

The global healthcare specialty enzymes market is witnessing steady growth, supported by rising demand for advanced diagnostics and targeted therapeutic solutions. The market was valued at US$ 4.38 billion in 2025 and is projected to grow from US$ 4.57 billion in 2025 to approximately US$ 8.20 billion by 2035, at a CAGR of 5.47% during 2025-2035.

In India, the healthcare specialty enzymes market is following a similar growth trajectory, with increasing adoption of high purity enzymes across pharmaceuticals, diagnostics, biotechnology research and biocatalysis for human health applications. The dietary supplements segment is emerging as a strong demand driver for digestive and specialty enzymes. This growth is further supported by rising consumer awareness around gut health, immunity and overall wellness, accelerating the uptake of enzyme based formulations across healthcare applications.

Emerging Trends

Shift towards precision and preventive healthcare:

Advances in biotechnology and a deeper understanding of enzymatic functions are enabling more targeted applications across diagnostics, therapeutics and personalised medicine.

Rising role of enzymes in clinical applications:

Enzymes are increasingly being integrated into drug development, disease management and diagnostic processes, expanding their relevance in modern healthcare.

Growing preference for natural wellness solutions:

Digestive enzyme supplements are gaining traction as consumers shift towards gut-health-focused, non- synthetic alternatives.

Digital and retail channel evolution:

E-commerce platforms and organised nutraceutical distribution networks are enhancing accessibility, awareness and reach of enzyme based products.

Key Demand Drivers

Increasing burden of chronic diseases:

Rising incidence of cancer, cardiovascular disease and metabolic disorders is driving the demand for enzyme based interventions across treatment and care.

• Expansion of dietary and sports nutrition segments:

Higher health consciousness and fitness awareness are accelerating adoption of enzyme supplements in lifestyle oriented categories.

Demographic and income tailwinds:

An ageing population, rising disposable incomes and rapid urbanisation are supporting increased spending on healthcare and wellness products.

Improving healthcare access and infrastructure:

Broader access to healthcare services and the growth of organised nutraceutical channels are enabling wider market penetration.

Feed Enzymes Market

Market Size

The global feed enzymes market continues to expand steadily, driven by the increasing need for efficient and sustainable animal nutrition solutions. The market is A projected to grow from US$ 1.45 billion in 2025 to US$ 1.52 billion in 2025 and further to US$ 1.94 billion by 2031, at a CAGR of 5.05% during 2025-2031.

Indias feed enzymes market is steadily expanding, supported by the growing scale and commercialisation of the livestock and aquaculture sectors. The market was estimated at US$ 42.70 million in 2025 and is projected to reach US$ 44.73 million in 2025, while further growing to US$ 55.39 million by 2031, at a CAGR of 4.75%.

Emerging Trends o Efficiency-led feed optimisation:

Increasing use of enzymes to improve digestibility, enhance nutrient absorption and address anti-nutritional factors, improving feed conversion and animal performance.

Shift away from antibiotic growth promoters:

Regulatory restrictions on in-feed antibiotics are accelerating the adoption of enzyme based alternatives such as carbohydrases and phytases to maintain productivity while ensuring compliance.

Focus on low-emission livestock production:

Growing emphasis on reducing methane emissions in dairy and beef farming is expanding the role of enzymes in improving sustainability outcomes.

Advancements in enzyme stability and performance:

The development of heat stable enzymes is enabling their effective integration into feed pelleting , processes, enhancing consistency and efficacy.

Dominance of carbohydrases in feed applications:

Carbohydrases continue to lead the segment owing to their critical role in improving nutrient availability and overall feed efficiency.

Broadening scope of enzyme applications:

Enzyme usage is expanding beyond traditional applications to address evolving nutritional, regulatory and environmental requirements in ,animal nutrition. ¹

Key Demand Drivers

Global

Alternatives to antibiotics: Enzymes are emerging as effective, natural substitutes to support animal health and performance amid tightening regulations on antibiotic use on animals.

Sustainable farming focus: Greater emphasis on environmentally responsible agriculture is driving enzyme adoption to reduce waste and improve feed efficiency.

? Technological advancements: Ongoing h

R&D is enabling the development of more targeted and high performance enzyme solutions.

Domestic

? Growing livestock production: India has one of the largest livestock populations globally, with increasing demand for milk and poultry products driving the need for nutritionally efficient feed solutions. Rising commercialisation of dairy and poultry farming is further accelerating enzyme adoption to improve feed conversion ratios and productivity.

Aquaculture expansion: India is among the leading aquaculture producers globally, with strong growth in shrimp and fish farming. Increasing export demand and intensification of aquaculture practices are driving the need for specialised feed formulations, supporting enzyme usage to enhance digestion and reduce feed costs.

Improved distribution networks: Stronger partnerships between enzyme manufacturers, feed mills and large integrators are improving market reach, product availability and technical support, leading to wider adoption.

Evolving regulatory framework: Strengthening quality standards and oversight by bodies such as BIS and FSSAI are enhancing product credibility.

This is driving greater acceptance of scientifically formulated feed additives, including enzymes.

Vertical integration: Leading players are increasingly establishing manufacturing and supply chain infrastructure closer to key agricultural regions. This is improving supply reliability and enabling faster market penetration.

Shift towards scientific feeding practices: Increasing awareness among farmers and integrators regarding balanced nutrition and performance optimisation is , driving the transition from traditional feed to enzyme fortified formulations.

Food Enzymes Market

Market Size

The global food enzymes market is witnessing steady growth, driven by evolving consumer preferences and expanding applications across food processing. Valued at US$ 2.49 billion in 2025, the market is projected to reach approximately US$ 4.74 billion by 2035, at a CAGR of 5.55%.

The Indian food enzymes market is witnessing steady growth, supported by the rapid expansion of the food processing industry and evolving consumer preferences. The market was valued at US$ 475.1 million in 2025 and is projected to reach US$ 790.3 million by 2034, growing at a CAGR of 5.82% during 2025-2034.

Emerging Trends

Clean-label and natural ingredients: Growing preference for minimal and recognisable ingredients is supporting enzyme usage as a natural alternative to synthetic additives.

Functional food applications: Increasing demand for health-focused foods is expanding enzyme applications across fortification, digestive health and specialised nutrition segments.

Customised enzyme solutions: Development of application-specific enzyme blends is gaining traction, enabling food manufacturers to optimise process outcomes and improve product consistency.

E-commerce expansion: Improved accessibility through digital channels is broadening the reach of enzyme based and fortified products to a wider consumer base.

Digital integration: Increasing use of technology in food processing is enabling more precise and efficient enzyme application, reducing waste and improving process control.

Key Demand Drivers

Rising processed food demand and lifestyle shifts:

Urbanisation, growth in nuclear families and a larger working population with limited time for meal preparation are driving increased consumption of packaged and convenience foods. This is supporting broader enzyme usage across food processing applications.

Food & beverage industry expansion: Growth of the organised food processing sector is creating sustained demand for enzyme solutions. Additionally, expanding applications across alcoholic and non- alcoholic beverages are adding to this momentum.

Health awareness and nutrition focus: Increasing consumer awareness around nutrition, digestive health and clean-label products is driving demand for functional and enzyme based food solutions. Digestive and functional applications are among the fastest-growing categories.

Technological advancements and product enhancement: Progress in biotechnology and increased R&D investments are enabling the development of more efficient, application-specific enzymes. Enzymes are increasingly used to improve texture, flavour, aroma, shelf life, nutritional value, as well as food preservation and waste reduction.

Policy support: Government initiatives promoting food processing are fostering a favourable ecosystem for enzyme adoption.

Market Size

The global probiotics market is rapidly expanding due to rising consumer demand for gut health products, preventive healthcare and functional foods. Innovations in strains, personalised nutrition and supportive regulatory frameworks are further accelerating this momentum. Estimated at US$ 93.13 billion in 2025, the market is projected to reach US$ 138.53 billion by 2030 growing at a CAGR of 8.28%.

Within this broader landscape, the Indian probiotics market is witnessing robust growth, supported by increasing awareness of the link between digestive wellness and overall immunity, particularly across urban and semi-urban populations. The rising incidence of lifestyle-related digestive disorders, coupled with favourable government initiatives promoting functional foods and nutraceuticals, continues to accelerate adoption. The market was valued at US$ 2.5 billion in 2025 and is projected to reach US$ 10.77 billion by 2034, growing at a CAGR of 17.09% during 2025-2034.

Emerging Trends

? Mainstreaming of functional nutrition: Probiotics are increasingly integrated into everyday foods and beverages as consumers shift towards health enhancing dietary choices.

? Diversification of application formats: Probiotic ingredients are finding wider use across dairy, cereal based and non-dairy segments, broadening their application base.

• Shift towards stable ingredient formats: Growing inclination toward dry and powdered probiotic formats due to their superior stability during storage and flexibility in formulation.

? Science-backed product positioning: Increasing reliance on clinical research and validation is supporting health claims and building consumer trust.

? Advancements in formulation technologies:

Innovations are improving probiotic viability, delivery efficiency and compatibility across a wider range of products.

o Expansion into new use cases: Continuous product innovation is enabling probiotics to move beyond , traditional applications into diverse food and beverage categories.

? Nutritional gaps: Changing dietary habits and the resulting micronutrient deficiencies are increasing reliance on probiotics for better nutrient absorption.

? Government support: Policy incentives promoting the food and nutraceutical sectors are creating a favourable growth environment.

Pet Probiotics Market

The global pet probiotics market is witnessing steady growth, supported by rising pet ownership and increasing focus on animal health and nutrition. Estimated at US$ 807.3 million in 2025, the market is projected to reach US$ 1,139.5 million by 2035, at a CAGR of 3.5%.

Emerging Trends

o Product innovation and targeted formulations: Ongoing R&D is enabling development of strain-specific probiotics tailored to different species, breeds and life stages.

o Evolution of delivery formats: Introduction of

chewable tablets, powders and liquid supplements is improving ease of administration and overall product effectiveness.

? Premiumisation and multifunctionality: Demand is rising for advanced formulations that combine probiotics with prebiotics, vitamins and other nutrients.

Nutraceuticals Market

Market Size

The global nutraceuticals market continues to expand steadily, driven by increasing consumer focus on preventive healthcare and overall wellness. Valued at US$ 626.19 billion in 2025, it is projected to grow from US$ 672.29 billion in 2026 to approximately US$ 1,102.94 billion by 2035, at a CAGR of 5.82% during 2026-2035.

The Indian nutraceuticals market is witnessing strong and sustained growth, driven by increasing health awareness and a structural shift towards preventive healthcare. It was valued at US$ 8.93 billion in 2025 and is projected to reach US$ 23.09 billion by 2034, growing at a CAGR of 11.14% during 2026-2034.

The nutraceuticals market, comprising dietary supplements, functional foods and beverages and protein products, is expanding as consumers focus on preventive healthcare and wellness.

In India, dietary supplements lead in consumption and pharmaceutical channel distribution, followed by functional foods and protein supplements. Demand is driven by rising incidence of lifestyle diseases such as diabetes, cardiovascular conditions and obesity, along with higher disposable incomes and growing health awareness.

Personalised nutrition: Consumer demand for customised solutions based on individual health needs and lifestyles is growing steadily.

Plant-based supplements: Preference for plant- derived and vegan nutraceutical products is rising, supported by broader dietary shifts towards natural ingredients.

Clean-label products: Growing demand for minimally ¹ processed products is driving preference for \ transparent ingredient profiles.

Integration with traditional medicine: Modern science i is increasingly being blended with ayurvedic and herbal formulations, particularly in the Indian market.

Digital health integration: Apps, wearables and digital platforms are enabling more personalised approaches ¹ to nutrition and health tracking.

Key Demand Drivers

Health awareness and preventive healthcare shift:

Increasing focus on wellness, nutrition, immunity and preventive healthcare, post-pandemic, is driving the daily incorporation of nutraceuticals and dietary supplements. Rising healthcare costs are further encouraging consumers to adopt preventive solutions.

Lifestyle diseases and weight management concerns: Growing incidence of diabetes, obesity, cardiovascular conditions and other lifestyle related diseases is accelerating demand for nutraceuticals, including weight management and metabolic health products.

Fitness trends and active lifestyles: Rising participation in fitness activities is boosting demand for sports nutrition and performance enhancing nutraceuticals.

Demographic shifts and ageing population: An ageing population with higher nutritional requirements is driving demand for products supporting joint health, cognitive function and overall vitality.

Urbanisation and lifestyle changes: Sedentary habits, changing dietary patterns and increasing urbanisation are creating nutritional gaps, driving higher consumption of nutraceuticals.

Rising disposable incomes: Higher per capita income, particularly in emerging markets, is enabling increased spending on premium and specialised health products.

Retail and e-commerce expansion: Growth of organised retail and digital platforms is improving accessibility and penetration, especially across Tier 2 and 3 markets.

Product innovation and expanding solutions:

Continuous development of new formats and targeted nutraceutical solutions is expanding the addressable market.

Policy and government support: Favourable policies, including 100% FDI allowance and investments in healthcare infrastructure, are strengthening the sector and supporting growth.

Enzyme Industry: SWOT Analysis

Strengths

o Robust market growth and expanding applications:

The global enzymes market continues to witness steady growth, driven by increasing adoption across food processing, pharmaceuticals, biofuels, animal nutrition and industrial manufacturing. It is projected to expand at a CAGR of 6.5% from 2026 to 2035.

Technological advancements in enzyme engineering:

Advances in biotechnology, including machine-learning-guided enzyme design, synthetic biology and high-throughput screening, are accelerating the development of high performance enzymes with improved stability, activity and specificity.

Diverse and versatile application base:

Enzymes remain integral across industries, enabling process efficiency, cost optimisation and sustainability benefits in sectors ranging from healthcare to industrial processing.

Food processing: Used to improve texture, enhance flavour, extend shelf life and increase the nutritional value of food products.

Biofuels: Critical in breaking down biomass into fermentable sugars for the production of ethanol and other biofuels.

Pharmaceuticals: Integral to drug development and the manufacturing of biopharmaceutical products.

Textile and leather processing: Enable cleaner processing by reducing chemical usage while improving operational efficiency.

This wide-ranging applicability across industries reduces dependence on any single segment and supports diversified growth.

Sustainability alignment:

Growing emphasis on sustainable processes is accelerating the shift towards enzymes as alternatives to conventional chemical methods. Their use helps lower energy consumption and reduce waste across sectors such as biofuels, textiles, detergents and food processing. This alignment with global environmental priorities positions the industry favourably amid tightening regulatory norms and increasing focus on green manufacturing.

Weaknesses

Elevated production costs:

Enzyme manufacturing is inherently capital-intensive, requiring advanced biotechnological processes, specialised infrastructure and skilled expertise. This results in a higher cost structure, which can limit penetration in cost-sensitive markets and among smaller industry participants.

Regulatory complexity across markets:

The industry operates within stringent and often fragmented regulatory frameworks. In the United States, enzymes classified under food additives or Generally Recognised as Safe (GRAS) categories must undergo detailed safety evaluations by the United States Food and Drug Administration (US FDA). In Europe, approvals under Regulation EC No. 1332/2008 are frequently delayed due to harmonisation challenges across member states. Managing such multi-region compliance requirements can be resource-intensive and may slow down product commercialisation.

Process sensitivity and operational constraints:

Performance of enzymes is highly dependent on controlled conditions such as temperature, pH and substrate environment. Maintaining these parameters at scale adds operational complexity and increases processing costs across industrial applications.

Dependence on specific biological inputs:

Production processes rely on select microbial strains and plant-based raw materials. Variability in availability or quality, driven by environmental disruptions or geopolitical developments, can affect production stability and supply consistency.

Opportunities

Sustainability-led shift towards green chemistry:

As ESG expectations tighten globally in 2026, industries are increasingly transitioning away from conventional chemical processes towards enzymatic alternatives. Applications such as bio-bleaching, waste treatment and eco-friendly detergents are witnessing strong adoption, positioning enzymes at the core of sustainable manufacturing practices.

Growth in emerging economies:

Rapid industrialisation and rising consumption across markets such as India, China, Brazil and South Africa continue to drive demand for enzymes. Brazil remains a key market in South America, supported by biofuels and animal nutrition demand, while India is emerging as one of the fastest-growing markets due to expansion in food processing and pharmaceuticals.

Rising demand for specialised enzymes:

Customised enzyme solutions designed for niche applications, such as lactose-free dairy, gluten-free foods and nutraceutical formulations, are gaining traction. This trend is supported by increasing consumer awareness around health and wellness, alongside advancements in biotechnology.

Expansion into B2C health and wellness segments:

A notable industry shift is underway, with enzyme manufacturers moving beyond traditional B2B models into direct-to-consumer offerings. Segments such as gut health, preventive nutrition and specialty nutraceuticals are emerging as high-growth, high- margin opportunities.

Increasing role in biofuel production:

With governments promoting renewable energy adoption, enzymes such as cellulases are becoming essential in the conversion of biomass into ethanol and other biofuels, reinforcing their importance in the global energy transition.

Advancements in biotechnology and digital innovation:

Progress in enzyme engineering, supported by machine learning, synthetic biology and high-throughput screening, is accelerating the development of next-generation enzymes. These innovations are expanding application potential across pharmaceuticals, industrial processing and green chemistry.

Threats

Competition from conventional alternatives:

Chemical catalysts continue to act as cost-effective substitutes in certain applications. To maintain competitiveness, enzyme manufacturers must consistently demonstrate superior efficiency, cost benefits and sustainability advantages.

Volatility in raw material costs:

Prices of key microbiological and plant-based inputs remain susceptible to fluctuations due to environmental factors and geopolitical disruptions, impacting production costs and margin stability.

Macroeconomic and supply chain pressures:

Global inflationary trends, elevated interest rates and ongoing supply chain realignments are contributing to uncertainty in input availability and pricing. These factors can disrupt procurement cycles and affect overall cost structures.

Economic Slowdown impacting demand:

Periods of economic uncertainty can dampen industrial output and consumer spending, leading to reduced demand across key end-use sectors such as food processing, pharmaceuticals and industrial manufacturing.

Public perception around GMO usage:

Concerns regarding the use of genetically modified organisms in enzyme production continue to influence consumer sentiment and market acceptance. Building trust through transparency, regulatory compliance and effective communication remains essential.

Company Overview

Advanced Enzyme Technologies Limited (also referred to as Advanced Enzymes, or Your Company) is a science-led, research-focused organisation with an established global presence in the enzymes and probiotics industry. It is among the largest Indian players engaged in the research, development, manufacturing and marketing of over 400 proprietary products derived from a portfolio of more than 65 indigenous enzymes and probiotics.

Your Company is committed to delivering eco-conscious and sustainable solutions across a wide range of industries, including human healthcare and nutrition, animal nutrition, baking, fruit and vegetable processing, brewing and malting, grain processing, protein modification, dairy processing, textile processing, leather processing and other specialty applications. Each solution is designed to improve product quality, enhance process efficiency and support industries in transitioning from traditional thermal, chemical and mechanical processes to enzyme integrated, sustainable alternatives.

Access to effective healthcare, improved animal nutrition and responsible industrial processing are at the core of your the Company works towards. Having pioneered enzyme manufacturing in India, Advanced Enzymes continues to lead advancements in research and the development of new applications across industries. Its structural advantages, including low overheads, in-house fermenter development and over three decades of technical expertise, have enabled your Company to deliver consistently strong margins.

Advanced Enzymes Company operates through Four wholly owned direct subsidiaries, Four direct subsidiaries and Five step-down wholly owned subsidiaries, with a presence across more than 45 countries. It focuses on building long-term customer relationships through customised enzyme solutions, technical expertise and superior service.

Subsidiaries

Your Company operates through a diversified subsidiary network that strengthens its global presence and enhances its capabilities across multiple segments and geographies.

Advanced Enzymes USA (AEU)

AEU, a wholly owned direct subsidiary, primarily serves the North American and Latin American markets through its subsidiaries, Cal-lndia Foods International (doing business as Specialty Enzymes and Biotechnologies), Advanced Supplementary Technologies Corporation, Enzyme Innovation Inc. and Starya Labs Inc. In FY 2025-26, AEU reported consolidated revenue of Rs 2,122 million and a profit after tax (PAT) of Rs 784 million.

Advanced Supplementary Technologies Corporation (AST)

AST, a wholly owned subsidiary of AEU, is a leading manufacturer of enzyme based nutraceutical supplements supporting cardiovascular health, anti-inflammatory functions, joint health, digestion and colon health. Its products use non-genetically modified, natural ingredients that undergo rigorous testing by a team of scientists and specialists. AST focuses on delivering high-quality, safe and effective formulations to support healthy lifestyles.

Cal-lndia Foods International (doing business as Specialty Enzymes and Biotechnologies - SEB)

Established in 1985, SEB is a wholly owned subsidiary of AEU and a prominent enzyme producer in the Western Hemisphere. It provides comprehensive enzyme solutions for healthcare and nutrition markets across North and Latin America. SEB is known for its expertise in developing customised enzyme blends and a wide portfolio of high performance products.

Enzyme Innovation Inc. (El)

El, a wholly owned subsidiary of SEB, focuses on marketing and business development of industrial enzymes across the Americas. It serves industries such as baking and milling, brewing and malting, fruit and vegetable processing, animal feed, protein modification, grain alcohol, pulp and paper, waste management, wine and detergents.

El specialises in delivering customised solutions tailored to specific industry requirements.

Starya Labs Inc. (Starya)

Starya, California, US, was formed as a wholly owned subsidiary of Advanced Enzymes, US in FY 2024-25 through spin-off and transfer of enzyme/probiotic laboratory testing services together with certain assets and liabilities related to the SEB. It is an ISO-17025 certified analytical laboratory that delivers comprehensive testing services for raw materials and finished products.

Advanced Bio Agro Tech Limited (ABTL)

Incorporated in 2004, ABTL is a subsidiary (60% stake) of your Company focused on enzyme based solutions for animal nutrition, particularly in poultry and cattle.

It has established a strong presence in the Indian sub-continent and key Southeast Asian markets, including Vietnam, Thailand, Malaysia and the Philippines. In FY 2025-26, ABTL reported revenue of Rs 556 million and PAT of Rs 66 million.

Advanced Enzytech Solutions Limited (AESL)

AESL, a wholly owned subsidiary incorporated in 2008, provides eco-friendly enzyme solutions for industries such as textiles, leather, paper, detergents and cleaning aids. It focuses on replacing conventional chemical processes with sustainable, enzyme based alternatives.

In FY 2025-26, AESL reported revenue of 71 million and PAT of Rs 14 million.

JC Biotech Private Limited (JC Biotech)

Incorporated in 1991, JC Biotech operates in the nutraceutical, biopharmaceutical and biochemical segments. It became a subsidiary of your Company in 2016, with the shareholding subsequently increased to 95.72%. In addition to its existing product portfolio, it is exploring opportunities in algae-based DHA production.

In FY 2025-26, JC Biotech reported revenue of Rs 728 million and PAT of Rs 29 million.

Scitech Specialities Private Limited (Scitech)

Scitech, acquired in 2021 (51% stake), is a manufacturer of specialty effervescent products with presence across India, Southeast Asia, the Middle East, North Africa, Eastern Europe, the US, Canada and Australia.

In FY 2025-26, Scitech reported revenue of Rs 669 million and PAT ofRs 45 million.

Saiganesh Enzytech Solutions Private Limited (Saiganesh Enzytech)

Saiganesh Enzytech specialises in extraction and processing of papain enzyme from papaya latex. Incorporated in 2022, the Company acquired a 50% stake in January 2023. The enzyme is widely used in food and human nutrition applications. In FY 2025-26, it reported revenue of Rs 157 million and PAT of Rs 22 million.

Advanced Enzymes Europe B.V. (AEE BV)

AEE BV, a wholly owned subsidiary based in the Netherlands, serves as your Companys European platform and holds 100% equity in evoxx Technologies GmbH. In FY 2025-26, AEE BV reported consolidated revenue of Rs 319 million and PAT of Rs 25 million.

evoxx technologies GmbH (evoxx)

evoxx, a wholly owned subsidiary of AEE BV, is an industrial biotechnology company focused on the development of enzymes and bioactive ingredients such as oligosaccharides and polysaccharides, primarily for food and health applications. Drawing on a strong scientific team, evoxx develops innovative ingredients aimed at delivering measurable health benefits to consumers. In FY 2025-26, evoxx reported revenue of Rs 319 million and PAT of Rs 50 million.

Advanced Nutrazyme Private Limited (ANPL)

ANPL is a wholly owned subsidiary of Advanced Enzymes, incorporated in 2025. ANPL has been established to operate with a focus on developing and offering a range of nutrition and wellness products. The formation of ANPL aligns with your Companys strategy to strengthen its presence in the high-growth nutrition and wellness space and expand its portfolio beyond core enzyme offerings. In FY 2025-26, ANPL reported revenue of Rs 0.02 million.

Manufacturing Facilities

Advanced Enzymes operates a network of nine world-class manufacturing facilities globally, equipped with large-scale capabilities across fermentation, recovery, purification and formulation. These facilities cater to a diverse set of industries, including animal nutrition, nutraceuticals, pharmaceuticals, poultry, cosmetics and other specialty segments. All manufacturing plants are certified to ISO and WHO cGMP standards, reflecting adherence to the highest benchmarks of quality and safety. Facilities in the US are primarily focused on the mixing and blending of enzymes and probiotics.

Business-wise Performance

During the year, the enzymes and bio-solutions industry operated in a volatile environment shaped by geopolitical tensions, including the ongoing US-lran-lsrael conflict. Disruptions in energy markets, particularly constraints in natural gas availability, led to a shift towards alternate fuels, resulting in a notable increase in coal prices, thereby impacting manufacturing costs for fermentation-led processes.

Input cost pressures intensified across key materials. Prices of packaging materials and plastics witnessed sharp escalation, while salts and solvents also recorded consistent increases, affecting downstream processing and formulation costs.

Supply chain dynamics remained challenging, with transportation, freight forwarding and insurance costs rising significantly, impacting both sourcing and global distribution efficiency. On the demand side, inflationary

pressures in key markets such as the US, along with workforce rationalisation, led to more cautious consumption, particularly in discretionary nutrition and wellness segments.

Despite these near-term headwinds, the industry continues to benefit from structural demand drivers, including the increasing shift towards sustainable, bio-based and process-efficient solutions across food, healthcare and industrial applications.

Human Nutrition

The Human Nutrition vertical remained the largest contributor to your Companys overall revenue during FY 2025-26, reporting Rs 4,674 million and registering a growth of 15% year-on-year. The segment continues to benefit from a diversified geographic mix, with domestic and international markets contributing 32% and 31%, respectively (Rs 2,406 million from India and Rs 2,268 million from overseas markets).

Enzymes

Within Human Nutrition, the enzymes portfolio was led by Serratiopeptidase, your Companys key anti-inflammatory product. The molecule contributed 23% to consolidated revenue, with sales increasing to Rs 1,732 million during FY 2025-26 from Rs 1,193 million in the previous year, reflecting steady demand across key markets.

Probiotics

The Probiotics business continued to scale, driven by its increasing incorporation into blended and application based solutions. Consolidated probiotic revenues stood at Rs 216 million during FY 2025-26, supported by growing demand across gut health, immunity and wellness categories.

Note: All the numbers mentioned under the Business-wise Performance section are on consolidated basis.

Biocatalysts

The Biocatalysts segment continued to gain traction, reporting revenues of Rs 247 million during the year compared to Rs 174 million in the previous year.

Your Company is advancing enzyme based solutions aimed at replacing traditional chemical processes across pharmaceuticals, perfumery and agriculture, with encouraging early-stage customer validation.

Animal Nutrition

The Animal Nutrition vertical delivered strong growth during the year, with revenue of Rs 946 million, reflecting a year-on-year increase of 25%. Growth was driven by the commercialisation of products supported by long-term registrations in Asian markets, along with improving traction in the domestic market. The focus remains on enzyme-led feed solutions that enhance nutrient absorption and overall animal performance.

Bioprocessing

The Bioprocessing business recorded an overall growth of 15% during FY 2025-25, with mixed performance across its sub-segments.

Food Processing

The Food Processing business witnessed a strong recovery during the year, with revenues reaching Rs 967 million, reflecting a growth of 19% year-on- year. Performance was supported by robust demand across baking and dairy applications in both India and the European markets.

Non-Food Processing

The Non-Food Processing business, which primarily caters to textile and leather industries, remained largely stable, registering revenue of Rs 209 million, a marginal growth of 0.2% during the year. While demand conditions remain moderate, your Company continues to explore opportunities to expand enzyme based applications as industries gradually shift towards more sustainable processing practices.

Developments During FY 2025-26

Intellectual Property Development

Your Company has filed three patent applications focused on sugar management technologies, mitigation of gluten sensitivity/intolerance and biocatalysis applications in pharmaceuticals, respectively.

Dossier Filing with US FDA

Three GRAS dossiers have been filed with the US FDA. These applications support the use of food processing enzymes in baking, brewing, starch processing and oligosaccharide production.

Incorporation of Advanced Nutrazyme Private Limited

ANPL was incorporated in July 2025 as a wholly owned subsidiary to expand your Companys presence in the nutrition and wellness segment. The subsidiary will focus on the development, sales and distribution of nutrition and wellness products, supporting portfolio diversification beyond core enzyme offerings.

Collaboration for Setting Up of a Group Captive Wind Power Plant

The Board has approved the collaboration of the Company for a group captive wind power project through a Special Purpose Vehicle (SPV), with an investment of up to 25% equity stake as a captive user. This marks a step towards increasing renewable energy usage and strengthening long-term energy sustainability.

Research and Development

Advanced Enzymes operates a robust global R&D network comprising seven state-of-the-art facilities across India, the US and Germany. These facilities are dedicated to developing, validating and scaling up innovative technologies for commercial enzyme production. The centres specialise in cloning industrial enzymes in safe microbial hosts, including strains for thermostable and mesophilic enzymes. Specialised labs focus on process development, applied microbiology, life sciences and industrial applications, optimising enzyme solutions for diverse industries.

Your Company is establishing a new R&D centre in Nashik to significantly enhance its innovation scale and technical leadership in enzymes. The facility is being designed to accelerate the discovery, engineering and commercialisation of advanced enzyme solutions, with focused capabilities in strain development, protein engineering and fermentation. It will play a critical role in building differentiated, high performance products and advancing your Companys expansion into industrial enzymes. The centre is expected to be operational in the latter half of FY 2026-27.

To accelerate innovation, Advanced Enzymes has strengthened its digital and analytical capabilities through deployment of advanced protein engineering data management tools and Al-driven in silico platforms. Combined with high-throughput screening systems and improved screening methodologies, these tools enable faster evaluation of variants, better traceability and reduced development timelines.

Your Company continues to expand its enzyme libraries and develop next-generation engineered proteins for applications across food, nutrition and biocatalysis. Recent innovations include solutions for pharmaceutical intermediates, bakery applications, industrial biomass hydrolysis, sugar reduction and enhanced protein digestion, improving process efficiency, product quality and customer profitability.

In probiotics and nutraceuticals, your Company is advancing clinically relevant solutions targeting gut health, carbohydrate metabolism and allergy management. These solutions are supported by proprietary enumeration techniques and advanced digestion models for humans and pets.

Advanced Enzymes also collaborates with customers to replace conventional chemical processes with enzymatic solutions, improving yields, reducing impurities and addressing effluent treatment challenges. Through such initiatives, it continues to promote sustainable, bio-based alternatives across industries including pharmaceuticals and animal nutrition.

Financial Overview

Revenue from Operations

Your Companys consolidated revenue from operations stood at Rs 7,458 million in FY 2025-26 as compared to Rs 6,369 million in FY 2024-25. This includes international sales of Rs 3,731 million, reflecting a growth of 8% from FY 2024-25 and domestic sales of Rs 3,727 million, reflecting a growth of 28% from FY 2024-25. Revenue generated from international and domestic sales was equally distributed, with both segments contributing 50% to your Companys total revenue.

Finance Costs

Finance costs stood at Rs 26 million in FY 2025-26 as compared to Rs 35 million in FY 2024-25.

Profitability

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), excluding other income, stood at Rs 2,291 million in FY 2025-26 as compared to Rs 1,944 million in FY 2024-25. Profit after tax (PAT) was ,736 million during FY 2025-26 increased by 30% as compared to Rs 1,340 million during FY 2024-25.

Other Income

Other income for FY 2025-26 was Rs 348 million in comparison to Rs 330 million in FY 2024-25.

Depreciation and Amortisation

Depreciation and amortisation for FY 2025-26 changed to Rs 401 million as compared to Rs 365 million in FY 2024-25.

Net Worth and Returns

As of March 31,2026, shareholders net worth stood at Rs 16,320 million in FY 2025-26, as against Rs 14,209 million in the previous financial year.

Return on Equity (RoE) was 11 % in FY 2025-26, as compared to 10% in FY 2024-25. (Return ratio is calculated based in average shareholders funds).

Cash and Cash Equivalents

Cash and cash equivalents stood at Rs 1,159 million in FY 2025-26, as compared to Rs 1,077 million in the previous financial year.

Details of significant changes (i.e., change of 25% or more as compared to the immediately preceding financial year) in key financial ratios, along with detailed explanation:

Particulars	FY 2025-26	FY 2024-25	Variance (%)	Rationale
Current Ratio (times)	9.78	9.09	8	NA
Debt-Equity Ratio (times)	0.01	0.02	(50)	Due to increase in the shareholders equity and lower utilisation of working capital
Inventory Turnover Ratio	4.21	4.05	4	NA
Debtors Turnover Ratio	5.14	5.52	(7)	NA
Operating Profit Margin (%)	31%	31%	Nil	NA
Net Profit Margin (%)	23%	21%	9	NA
Interest Coverage Ratio	71.92	44.39	60	Due to reduction in the interest expenses on account of lower utilization of working capital and increase in the EBIT

Outlook

Your Company remains focused on delivering a sustainable growth trajectory, supported by its core Human and Animal Nutrition segments and increasing geographic diversification across Asia and Europe. Proactive measures to manage external disruptions, including tariff related challenges, are aimed at protecting market share while ensuring customer continuity.

Innovation continues to anchor growth, with a focused pipeline of advanced enzymatic, probiotic and biocatalyst solutions across human nutrition, food and industrial applications. Advanced Enzymes is prioritising high impact, scalable products, supported by strong internal capabilities and growing emphasis on proprietary research and scientific validation. Investments in R&D remain a priority, with a new large scale R&D centre under development in Nashik, expected to be operational in the second half of FY 2026-27.

In Human Nutrition, the Company is advancing its B2C strategy through the incorporation of Advanced Nutrazyme Private Limited, creating a dedicated platform to scale its wellness portfolio, including the WELLFA brand. Currently at an early stage, this segment

is expected to evolve into a meaningful long-term growth driver. In Animal Nutrition, the Company continues to build momentum through product registrations and expansion of enzyme based feed solutions that enhance nutritional efficiency and performance across key markets.

Your Company continues to evaluate disciplined inorganic opportunities, particularly in animal nutrition and probiotics, targeting capabilities that offer strong technical and geographic synergies.

Product development is increasingly aligned towards high-value, sustainable solutions, with a growing focus on biocatalysis as a green alternative to conventional chemical processes across pharmaceuticals and allied industries. Your Company is also advancing applications in high-protein foods and specialised formulations, including integrated enzymes & probiotics solutions.

Sustainability remains embedded across operations and innovation, with continued focus on bio-based solutions and increasing adoption of renewable energy to improve efficiency and reduce environmental impact.

Risk Management

Risk Category	Market Risks & Threats	Mitigation Strategies
Geopolitical & Trade	Exposure to shifting global trade policies, tariffs and geopolitical uncertainties that may impact demand and market access.	Agile cost management practices, including supply chain adjustments, inventory planning and selective price optimisation to mitigate external shocks.
Market & Competitive	Intensifying competition and pricing pressures across key markets and product categories.	Technical differentiation through research-backed offerings, continuous product innovation and expansion into new application areas.
Regulatory & Compliance	Increasingly stringent and evolving regulatory requirements across global markets, potentially affecting product approvals and continuity.	Proactive investment in regulatory filings, approvals and compliance frameworks to ensure sustained market access and future growth.
Operational & Financial	Variability in business performance due to demand cycles, customer procurement patterns and operational contingencies.	Focus on operational excellence, efficiency improvements and long-term performance tracking to enhance stability and margins.
Innovation & Technology	Risk of technological disruption and emergence of new or alternative solutions impacting existing offerings.	Continued investment in research and development, capacity expansion and advancement of core technologies to stay ahead of industry shifts.
Environmental & Energy	Dependence on conventional energy sources and exposure to energy cost fluctuations.	Transition towards sustainable energy solutions and efficiency initiatives to ensure cost stability and environmental responsibility.
Intellectual Property	Potential infringement may dilute returns on R&D and weaken competitive positioning.	Ongoing patent filings, along with protection through trademarks and trade secrets.
Consumer Demand	Changing consumer preferences may impact demand for existing products.	Continued investment in R&D and product innovation to stay aligned with evolving trends.
Product Quality	Failure to meet quality standards may result in recalls, liabilities and reputational impact.	Robust quality control processes, multi-stage testing and adherence to global standards.
Foreign Exchange	Currency fluctuations may affect export realisations and margins.	To manage this risk, the Company may need to implement strategies, including hedging, diversification and monitoring market developments.

Material Developments in Human Resources/lndustrial Relations

Advanced Enzymes continues to emphasise on building a people centric organisation by nurturing talent and fostering a positive, performance driven workplace culture. Its focus remains on attracting skilled professionals and supporting their development through structured learning, well-being and engagement initiatives.

Employees are provided with opportunities for continuous learning, collaboration and access to resources that enable them to perform and grow. Your Company also prioritises safe and healthy working conditions, while encouraging a culture of agility, innovation and adaptability.

Inclusivity and open communication remain central to your Companys approach, with initiatives aimed at strengthening team cohesion and cultivating a sense of belonging. It remains aligned with evolving industry requirements, ensuring that its workforce is future-ready and equipped to meet emerging challenges.

As of March 31,2026, your Company employed over 400 employees (standalone basis), representing diverse backgrounds and capabilities, across its operations.

Internal Control Systems and their Adequacy

Strengthening governance through robust internal controls and proactive risk management, your Company ensures operational integrity and resilience across its operations. It has established a comprehensive internal control framework to drive efficient operations, ensure regulatory compliance and enable timely risk identification and mitigation. A structured two-way communication mechanism across levels supports swift response to evolving internal and external factors. Risk management is embedded within business processes, with departments maintaining risk registers to track key exposures and mitigation actions. The framework is periodically reviewed by internal auditors to ensure its effectiveness.

The IT function continues to enhance systems to address evolving security needs and improve operational responsiveness. Internal financial controls are regularly evaluated and tested, with oversight from both internal and external auditors, ensuring strong governance and reliability.