Amanta Healthcare Ltd Management Discussions

Your Board of Directors is pleased to share with you the Business Performance along with the Audited Financial Statements the financial year ended 31st March, 2026.

GLOBAL ECONOMY

The global economy in FY2025-26 experienced a highly complex environment shaped by two distinct phases. During the first part of the year, elevated trade barriers and rising geopolitical uncertainty created pressure on global activity, though these effects were partly offset by technology-led investments, supportive financial conditions aided by a weaker US dollar, and coordinated fiscal and monetary policy measures. This relatively stable balance was later disrupted by the escalation of conflict in the Middle East, which quickly became the dominant driver of global economic outcomes and had a significant impact on commodity prices, inflation expectations, and overall financial conditions.

Growth and Inflation

According to the IMF?s reference forecast in the World Economic Outlook published in April 2026, global GDP growth is projected at 3.1% in 2026 and 3.2% in 2027, compared with an estimated growth rate of about 3.4% in 2024-25. Global headline inflation is expected to rise slightly to 4.4% in 2026 before moderating to 3.7% in 2027, with higher energy prices linked to the Middle East conflictbeingthe keyfactor behind the revised outlook. The impact is expected to vary across regions, with commodityimporting emerging and developing economies likely to face greaterpressure, whileadvanced economies are expected to remainreiativeiy moreinsulated.

Global trade remained fairly resilient through CY2025-26, although the outlook suggests a meaningful slowdown ahead. World trade volume growth is projected to decline from 5.1% in 2025 to 2.8% in 2026 before improving to 3.8% in 2027. This moderation is largely driven by two factors: businesses accelerated imports in early 2025 ahead of expected tariff increases, and rising trade barriers are expected to weigh on global commerce over the medium term. Over time, these pressures may ease as companies diversify suppliers and reorganise global value chains. While both goods and services exports are expected to soften, services trade is likely to remain comparatively stronger due to more favourable structural growth trends and greater resilience.

Key Risks

The balance of risks for the global economy remains tilted to the downside. Geopolitical tensions in the Middle East could trigger a major energy shock, while escalating trade disputes pose an additional threat to global growth. Financial markets may also face volatility if investors reassess expectations around AI-related profitability. At the same time, faster adoption of AI could deliver productivity gains and stronger business dynamism, and any sustained easing in trade tensions would support a healthier growth environment.

Global Economic Outlook

Overall, the global outlook continues to improve gradually, supported in part by the resilience of the US economy. However, tight monetary policy, restrictive financial conditions, and weak trade and investment activity are still expected to weigh on the pace of recovery. Commodityexporting countries remain exposed to challenging financing conditions, and the medium-term outlook for many developing economies has weakened because of slower growth in major advanced economies, subdued global trade, and high borrowing costs, with real interest rates near multi-decade highs. Strengthening institutions, encouraging investment, and reinforcing multilateral cooperation will remain important for achieving sustainable and inclusive long-term growth.

Sources: World Economic Outlook, April 2026: Global Economy in the Shadow of War

Indian Economy

India?s economy demonstrated strong resilience during FY2025-26 despite navigating a challenging global environment marked by trade frictions, geopolitical tensions, and moderating demand across several major economies. The impact of these external pressures, including tariff-related measures by the United States and ongoing uncertainty in the Middle East, was largely mitigated by India?s focus on strengthening domestic demand and advancing trade reforms. These measures helped reinforce the foundation for sustained long-term economic growth.

Key Economic Indicators

According to the IMF World Economic Outlook published in April 2026, India recorded growth of 7.6% in calendar year 2025, with growth projected at 6.5% for CY2026.

These figures reflect stronger-than-anticipated performance during the second and third quarters of the fiscal year. Growth momentum is expected to continue, supported by the reduction of US tariffs on Indian goods from 50% to 10%, which helped counterbalance the economic impact of the continuing conflict in the Middle East.

On the inflation front, India witnessed one of the most significant declines in headline inflation among major economies during 2025. As reported by the IMF, headline inflation moderated from 4.6% in CY2024 to 2.8% in CY2025, primarily due to improved food supply conditions that eased pressure on one of the most volatile components of the consumer basket. Core inflation, however, increased from 3.8% to 4.62% during the same period.

Headline inflation is expected to move towards 4.7% in 2026 as domestic demand strengthens, while remaining comfortably within the Reserve Bank of India?s target range of 2% to 6%. On the currency front, lower foreign investment inflows and monetary easing by the RBI contributed to depreciation of the rupee, with the exchange rate crossing ^90 per US dollar during 2025. Nevertheless, strong participation from retail investors has continued to support stability in broader financial market valuations.

India?s fiscal policy during FY2025-26 remained focused on supporting domestic demand. The Union Budget introduced direct tax relief measures for the middle-income segment to improve disposable income, while government policy emphasised strengthening domestic consumption, supporting recovery in the informal sector, and expanding the tax base. Public capital expenditure remained robust at 3.4% of GDP during the first half of FY2025-26, driven largely by investments in infrastructure and the green transition. The fiscal deficit was maintained at 4.8% of GDP in FY2024-25, with a target of 4.4% for FY2025-26.

Key Risks

India continues to face a number of external and domestic risks. Externally, slower growth among key trading partners, tariff-related disruptions to trade, and volatility in capital flows could affect economic performance. Domestically, the possibility of renewed inflationary pressures, incomplete transmission of policy rate reductions to credit markets, and weaker-than-expected tax collections require ongoing monitoring. However, India?s healthy foreign exchange reserves, stable inflation trajectory, and commitment to fiscal consolidation provide meaningful protection against external shockms.

Outlook

Looking ahead, India?s next phase of growth is expected to be driven by emerging sectors such as Artificial Intelligence, Digital Public Infrastructure, green hydrogen, semiconductors, and advanced manufacturing. These sectors continue to benefit from supportive policy initiatives and increasing private sector participation. In addition, ongoing trade negotiations with the United States are expected to conclude during the year, potentially reducing a significant source of external uncertainty. Supported by strong macroeconomic fundamentals, a young consumer base, and increasingly diversified growth drivers, India remains well positioned to strengthen its role in the global economy over the long term.

Sources: World Economic Outlook, April 2026: Global Economy in the Shadow of War

Decoding the Indian economy FY2026 India Budget Economic Survey

INDUSTRY OVERVIEW

GLOBAL INTRAVENOUS (IV)

FLUIDS INDUSTRY ^w

The global intravenous (IV) solutions market is witnessing robust growth, driven by the increasing demand for fluid therapy across acute and chronic care settings. Valued at USD 14.8 billion in 2025, the market is projected to reach USD 32.3 billion by 2035, expanding at a CAGR of 8.2% between 2026 and 2035

$ 14.8 Billion

2025 Market Size

$ 15.9 Billion

2026 Market Size Growth Drivers

Market growth is underpinned by rising hospitalization rates, an increasing volume of surgical procedures, and the growing need for emergency and critical care therapies. Additionally, the rising prevalence of malnutrition, pre-term births, and chronic conditions such as gastrointestinal disorders, neurological diseases, and cancer continues to fuel demand for IV solutions.

$ 32.3 Billion

2035 Forecast Market Size

8.2%

CAGR (2026-2035)

Key Trends Going Ahead

Rising adoption of pre-mixed and customized IV solutions:

Healthcare providers are increasingly preferring ready-to- use, customized IV formulations that eliminate the need for manual compounding, reducing the risk of contamination and medication errors while improving patient safety and operational efficiency.

Growing focus on ready-to-use nutritional solutions:

Manufacturers are expanding their portfolios of pre-mixed parenteral nutrition products to meet the demand for convenient, standardized, and clinically effective nutritional therapies.

Shift towards home-based and outpatient infusion care:

Advancements in infusion technologies, remote patient monitoring, and home healthcare services are enabling more patients to receive IV therapies outside traditional hospital settings, supporting improved patient convenience and reduced healthcare costs.

Increasing adoption of multi-chamber bags (MCBs):

The use of multi-chamber bags for parenteral nutrition is gaining traction, particularly in home healthcare, owing to their ease of use, enhanced sterility, extended shelf life, and reduced preparation time.

Emphasis on sustainable packaging:

Manufacturers are increasingly investing in environmentally responsible packaging solutions, including the use of recycled materials and eco-friendly adhesives, in line with broader sustainability goals across the healthcare industry.

Sources: Intravenous Solutions Market Size, Statistics 2035, Report I Global Market Insights

INDIAN INTRAVENOUS (IV) FLUIDS INDUSTRY

The India intravenous solution market was valued at USD 1.99 billion in 2025 and is projected to reach USD 2.99 billion by 2034, registering a CAGR of 4.62% between 2026 and 2034, as per the IMARCH Group?s India Intravenous Solution Market Forecast 2026-2034.

Growth Drivers

The rapid expansion of India?s healthcare infrastructure is a major factor driving the growth of the intravenous solution market. The India hospital market, valued at USD 193.4 billion in 2025, is projected to reach USD 364.6 billion by 2034, growing at a CAGR of 7.30%. Hospital bed capacity has also increased from 1.1 million to 1.3 million, supported by strong private sector investments and government initiatives aimed at strengthening healthcare delivery.

The development of multispecialty hospitals, modern medical colleges, and expanding corporate hospital networks, particularly across Tier II and Tier III cities, is improving access to quality healthcare while creating sustained demand for intravenous solutions used in emergency care, surgical procedures, critical care, and routine inpatient treatments.

Another key growth driver is the rising prevalence of chronic diseases and India?s ageing population. The increasing incidence of diabetes, cancer, cardiovascular disorders, and gastrointestinal conditions is driving greater demand for intravenous therapies across a wide range of clinical applications.

At the same time, the country?s expanding elderly population is contributing to higher healthcare utilization, as older adults are more likely to require hospitalization, surgical interventions, and long-term disease management. The resulting increase in hospital admissions and critical care treatments is boosting the consumption of intravenous fluids, including parenteral nutrition, electrolyte solutions, and injectable drug delivery formulations, supporting the market?s long-term growth trajectory.

Government Support

The Indian Government has consistently backed the pharmaceutical and IV fluids sector through policy, investment, and institutional infrastructure, as per an IBEF report dated Feb 2026.

• The PLI Scheme for pharmaceuticals carries an outlay of ^15,000 crore (USD 2.04 billion) from 2020-21 to 2028-29, aimed at boosting manufacturing, attracting investment, and supporting product diversification.

• The Biopharma SHAKTI Initiative, announced in Union Budget 2025-26 with a ^10,000 crore (USD 1.11 billion) fund, focuses on biologics, biosimilars, R&D infrastructure, and the creation of a 1,000-site clinical trial network.

• A Rs.60,000 crore (USD 7 billion) API push was announced in December 2025 to reduce import dependence on critical raw materials and strengthen domestic pharmaceutical manufacturing.

• Union Budget 2025-26 allocated ?5,268 crore (USD 602 million) to the Department of Pharmaceuticals, a 28.8% increase over the previous year.

• The Ayushman Bharat Digital Mission (ABDM) is building a national digital health infrastructure, with over 73.98 crore health accounts created and 49.06 crore health records linked as of early 2025.

• Programs such as the Rashtriya Kishor Swasthya Karyakram (RKSK) and the National Digital Health Mission are improving healthcare accessibility, awareness, and treatment adoption, supporting demand for intravenous solutions.

Key Trends Shaping the Industry

Growing demand for total parenteral nutrition (TPN):

The adoption of TPN is increasing across intensive care units, neonatal care, and oncology departments to provide nutritional support for patients unable to consume food orally or enterally. Expanding ICU capacity and the implementation of standardized clinical nutrition protocols are further driving demand.

Shift towards premixed and ready-to-use IV solutions:

Hospitals are increasingly preferring prefilled and ready- to-use intravenous formulations to improve operational efficiency, minimize manual preparation, reduce contamination risks, and enhance dosing accuracy, particularly in emergency and critical care settings. Expansion of domestic manufacturing capacity: Pharmaceutical manufacturers are investing in new intravenous solution manufacturing facilities and expanding production capabilities to meet rising domestic demand, strengthen supply chain resilience, and support export opportunities.

Rising adoption of non-PVC IV bags:

Healthcare providers are transitioning to DEHP-free, non- PVC IV bags to enhance patient safety, particularly for neonates, oncology patients, and individuals requiring longterm intravenous therapy. Manufacturers are increasingly introducing eco-friendly alternatives using advanced polymer materials.

Strengthening healthcare infrastructure: Ongoing investments by government and private healthcare providers in hospital expansion, particularly across Tier II and Tier III cities, are improving access to intravenous therapies and supporting sustained market growth.

Outlook

The India intravenous solution market is poised for sustained growth through the forecast period, driven by expanding healthcare infrastructure, increasing chronic disease prevalence, and rising awareness about clinical nutrition. Private sector investments in hospital construction and government initiatives to improve rural healthcare access will continue supporting market expansion.

Sources:

India Intravenous Solution Market Size, Industry Report 20341 IMARC Group

Amanta Healthcare Limited is an Ahmedabad-based pharmaceutical manufacturer specialising in sterile dosage forms. Incorporated in 1994, the Company commenced operations as a large volume parenterals and IV parenteral formulations manufacturer and has since then evolved into one of India?s most versatile sterile dosage manufacturers, spanning formulation and development through to full-scale commercial production.

At the heart of Amanta?s manufacturing capability is its expertise in two technologies: Aseptic Blow-Fill-Seal (BFS) and Injection Stretch Blow Moulding (ISBM). These technologies enable the Company to produce sterile liquid parenterals ranging from 0.5 ml to 1,000 ml pack sizes.

The Company?s product portfolio spans six therapeutic segments: Fluid therapy - (IV Fluid), Formulations, Diluents and Injectables, Opthalmic, Respiratory Care and Irrigation Solutions.

This breadth of coverage, combined with the ability to develop customised solutions in containers, closures, and drug delivery systems, positions Amanta as a comprehensive sterile manufacturing partner for domestic and international pharmaceutical companies.

Amanta?s manufacturing facility is spread across 25 acres near Kheda, Ahmedabad, with a built-up area of 25,000 sq. mts. The facility operates under ISO certification and cGMP compliance, with Grade “B” manufacturing areas, Grade “A” filling zones, continuous particle monitoring, and SCADA- controlled processes. Together, these facilities support the Company?s growing contract manufacturing business across 21 countries.

Guided by the belief that “It?s all about life”, Amanta Healthcare Limited continues to build on its technical foundation, expanding its product portfolio and geographic reach as it progresses toward the next phase of growth.

Innovation is a defining thread in Amanta?s identity, articulated through its guiding philosophy of Innovision. The Company has developed proprietary innovations including SteriPort, a next-generation IV fluid container. The Company was also the first in India to introduce ISBM technology with Polypropylene (PP), significantly reducing plastic grammage per container compared to conventional manufacturing methods. These technologies reflect Amanta?s commitment to improving clinical outcomes through better-designed drug delivery systems.

SWOT ANALYSIS STRENGTHS

Amanta?s core strength lies in its specialised,

0 technology-led manufacturing capabilities built up over more than three decades in sterile liquid parenterals.

Pioneer in ISBM Technology Amanta was the first company to bring Injection Stretch Blow Moulding (ISBM) technology to India, and continues to hold a 50-60% domestic market share in this segment, commanding premium pricing. Its flagship SteriPort platform, built on this technology, offers superior sterilisation, lower contamination risk, and strong drug compatibility, positioning Amanta as a category leader in the polypropylene IV bottle segment.

> Diversified, Integrated Product Portfolio

With 47 products registered across 120 international jurisdictions, Amanta?s range spans six therapeutic segments. These include fluid therapy, formulations, diluents and injectables, ophthalmics, respiratory solutions, and irrigation solutions, manufactured using both Aseptic BFS and ISBM technologies across LVP and SVP categories. This breadth provides resilience across end markets and clinical applications.

Strong, Improving Financial Position

Revenue and EBITDA have grown steadily over FY21-26, with PAT growing over 42% year-on-year in FY26. The Company?s debt-to-equity ratio has improved sharply from 3.43x in FY23 to 1.06x in FY26, supported by full repayment of outstanding preference shares, reflecting significant deleveraging and strengthened financial discipline.

Newly Listed, Well-Capitalised Public Company

Amanta?s IPO in September 2025 was met with overwhelming demand, oversubscribed 82.61 times overall. The proceeds are earmarked for capacity expansion at Hariyala, Kheda, providing the Company with a clear capital base to fund its growth pipeline without over-leveraging the balance sheet.

High Asset Utilisation and Operational Discipline

SteriPort utilisation rose from 73% to 90% and SVP utilisation from 89% to 98% between FY23 and FY26, with overall utilisation reaching 96%. This reflects strong demand visibility and efficient asset management, providing a solid operating base for the capacity expansion underway.

Established Distribution Network and Export Reach

A domestic network of 320+ distributors and stockists, supported by 100+ sales personnel, combined with exports to 21 countries and a longstanding two-decade presence in the UK, gives Amanta meaningful reach across both branded domestic and international markets.

Experienced Leadership and Governance Framework

The Company is led by a management team with over 30 years of industry experience, supported by a Board comprising professionals with deep expertise across finance, manufacturing, regulatory affairs, and investment banking, reinforcing strong oversight as Amanta transitions into a listed entity.

Insulated from Global Trade Volatility

Amanta?s international business remains largely insulated from current global trade tensions. The Company?s export network of 21 countries is concentrated in emerging and semi-regulated markets, with no material procurement or sales exposure to the United States, Middle East, or Russia, the regions most directly affected by ongoing tariff disputes and geopolitical tensions. This geographic positioning reduces the risk of supply disruption or regulatory uncertainty arising from trade conflicts, and allows the Company to pursue its international expansion with a notable degree of stability

WEAKNESSES

As a mid-sized, recently listed manufacturer scaling rapidly, Amanta faces structural challenges typical of a company in transition from a private, single-facility operation to a larger, more complex public enterprise. Single-Site Manufacturing Concentration Amanta?s entire manufacturing operations are concentrated at one facility in Hariyala, Kheda, Gujarat. While the site is well-certified and operating near full capacity, this concentration creates exposure to operational disruption from regulatory action, natural events, or infrastructure issues, with no alternate production base to fall back on.

Revenue Concentration in SteriPort and Domestic Market

SteriPort alone contributes approximately 42-44% of revenue from operations, and the domestic market accounts for 68% of total revenue. While this reflects a strong core franchise, it also means performance is closely tied to the continued success of a single product platform and a single geography.

Working Capital Intensity

Net Working Capital Days stood at 141 in FY26, reflecting the working-capital-intensive nature of the business. As the Company scales production and expands into new markets, managing working capital alongside growth will require continued discipline.

OPPORTUNITIES

Amanta stands at the intersection of multiple growth vectors including capacity expansion, export diversification, value-added portfolio nl&ln shifts, and sustainability-led cost efficiency. These enablers align closely with the Company?s positioning as a focused sterile liquids manufacturer entering its next phase of scale.

Indian Pharma Industry Poised for Growth

The Indian pharmaceutical sector is expected to expand significantly over the coming years, driven by exports, complex generics, and specialty therapies. As the industry shifts from volume-driven generics toward value-added platforms including injectables and novel drug delivery systems, Amanta?s established base in sterile liquid parenterals positions it to capture this transition.

Expansion in Regulated and Semi-Regulated Export Markets

With a long-standing presence in the UK and active product registrations across 120 jurisdictions, Amanta is well placed to deepen its footprint in regulated markets such as the UK, Zimbabwe, Sudan, Cambodia, the Philippines, and Ethiopia, while continuing to grow in emerging and semi-regulated geographies across Africa, Latin America, and South East Asia.

Rising Demand for Complex Sterile Formulations

The industry-wide shift toward closed-container IV systems, preservative-free ophthalmics, and inhalation solutions plays directly to Amanta?s strengths in ISBM technology and its growing SVP portfolio. SteriPort?s adoption in oncology, critical care, paediatrics, and anaesthesia reflects this broader trend toward higher-value, differentiated sterile products.

Capacity Expansion Driving Operating Leverage

With SteriPort capacity scaling from 6.6 Cr to approximately 12 Cr bottles and SVP capacity expanding from 20.9 Cr to a predicted 31.7 Cr units by FY27, Amanta is positioned to convert existing fixed-cost infrastructure into meaningful incremental revenue and margin expansion.

Sustainability and Cost Optimisation as Strategic Differentiators

With ESG performance increasingly influencing customer, investor, and regulatory expectations, Amanta?s 10.8 MW captive solar power project, expected to generate annual savings of ^9 crores from FY27, strengthens both its cost position and its credentials as a responsible manufacturing partner for global pharmaceutical companies.

Growing CDMO and Contract Manufacturing Demand

As global pharmaceutical companies diversify their supply chains away from concentrated sourcing geographies, India?s positioning as a credible, cost-effective manufacturing hub creates opportunity for Amanta to deepen existing contract manufacturing relationships and pursue new partnerships built on its WHO-GMP certified, ISBM-pioneering capabilities.

THREATS

The global pharmaceutical industry remains exposed to volatility, regulatory tightening, and global uncertainty. While Amanta?s core business is comparatively resilient, several external risks warrant ongoing monitoring.

Foreign Exchange Risk

Operating across 21 export markets exposes Amanta to currency fluctuations that could affect realised revenue and margins on international sales, particularly as the Company expands its share of export-driven, high-margin SVP business.

Pricing Pressure and Competitive Intensity

Amanta operates in a competitive landscape shaped by both domestic generic manufacturers and international players from lower-cost geographies. Continued price erosion in commoditised segments could pressure margins, reinforcing the importance of Amanta?s shift toward differentiated, higher-value products such as SteriPort and SVP.

Single-Site Manufacturing Concentration

With its entire manufacturing base concentrated at a single facility in Hariyala, Kheda, Gujarat, Amanta carries operational risk from any disruption, whether regulatory, environmental, or infrastructural, at this site, underscoring the importance of robust business continuity planning as the Company scales.

Talent and Capability Gaps

As Amanta scales capacity, broadens its product pipeline, and pursues entry into regulated markets, the availability of skilled talent in regulatory affairs, quality systems, and advanced manufacturing will be important to sustaining the pace of execution without compromising compliance or quality standards.

REVIEW OF OPERATIONS

Amanta Healthcare Limited, delivered consistent and steadily growing financial performance in FY2025-26. The revenue grew to ^288 crores, a 5% increase on an annualised basis. EBITDA for the year stood at ^63 crores, reflecting a stable margin of approximately 22%, underpinned by effective cost control and improved absorption of fixed overheads. Profitability strengthened significantly during the period, with full-year PAT growing 42% year-on-year to ^15 crores, compared to ^10.5 crores in the previous year. PAT margin expanded by 100 basis points to 5%, supported by scale efficiencies and gradual margin normalisation. Overall, the financial performance reinforces our confidence in the Company?s business fundamentals. The Company remains focused on sustaining margins, improving return ratios and maintaining a disciplined balance sheet as it progresses into the next phase of growth.

Sr. No. Particulars	March 31, 2026	March 31, 2025
1 Revenue (^ crores)	288	275
2 EBITDA (^ crores	63	61
3 Operating Profit Margin (EBITDA) %	22.0%	22.2%
4 PAT (^ crores)	15	11
5 Net Profit Margin %	5.0%	4.0%
6 Return on Net Worth %	6.75%	10.89%
7 Debtors Turnover Ratio	6.10	5.54
8 Inventory Turnover Ratio	1.24	1.42
9 Current Ratio	1.69	1.20
10 Long-term Debt Equity Ratio	0.74	1.37
11 Interest Coverage Ratio	2.14	1.53

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES

The Company views its employees as its most valuable assets that play a critical role in driving organisational success.

The Company remains committed to building a work environment that encourages collaboration, continuous learning, innovation, and professional development.

The Company focuses on attracting, developing, and retaining talent by providing opportunities for skill enhancement, career progression, and knowledge development. Various training and development initiatives are undertaken throughout the year to strengthen employee capabilities and align workforce competencies with evolving business requirements. Amanta also encourages employees to pursue professional growth through structured learning programmes and higher education opportunities wherever relevant. By fostering a culture of engagement, inclusivity, and performance excellence, the Company seeks to create an environment that supports both individual growth and organisational objectives.

As on March 2026, the Company had 506 employees on its rolls.

ENVIRONMENT, HEALTH AND SAFETY (EHS)

The Company places strong emphasis on maintaining a safe and healthy work environment across its facilities. Strict occupational safety protocols are followed, including real-time monitoring, hazard controls, and regular safety audits, to minimise workplace risk for all employees. Proactive health programmes such as routine health check-ups, ergonomic assessments, and vaccination drives support the physical and mental well-being of the team. In addition, employees undergo regular training, fostering a culture of safety, awareness, and accountability throughout the organisation.

In FY2025-26, the Company conducted 35 health and safety training sessions in fire safety, first aid, chemical handling, and emergency preparedness.

Training Sessions Organised

RISK MANAGEMENT

The Company recognises that the achievement of its strategic objectives is influenced by a variety of internal and external risks. To address these challenges effectively, the Company has established a structured risk management framework that enables the timely identification, assessment, mitigation, and monitoring of potential risks. This framework supports business continuity, operational resilience, and sustainable long-term growth

KEY RISKS AND MITIGATION STRATEGIES

Risk	Description	Mitigation
Failure to Maintain Timely Supply of Compliant Medicines	Availability of APIs and key starting materials, along with uninterrupted finished product supply to export markets, is critical. Delays in manufacturing or logistics can cause shortages, lost sales, and reputational damage.	Diversify supplier base across multiple vendors to reduce single-source dependency; maintain reserve stocks of critical materials; use multi-sourcing and long-term vendor contracts; proactive demand planning with key export customers.
Compliance Risk	Non-compliance with cGMP and regulations enforced by authorities such as the US FDA, UK MHRA, WHO, and CDSCO can delay approvals, attract penalties, or result in plant shutdowns, affecting product pipeline execution and reputation.	Adherence to cGMP, ISO standards, and applicable FDA regulations; regular internal and external audits with gap analysis; SOPs and CAPA processes to address deviations; oversight through quality committees and management reviews; validated quality systems.
Customer Health, Safety and Product Quality	Deviations in manufacturing or product specifications can pose patient safety risks and damage market reputation.	Dedicated quality management processes with strict specification adherence; regular site audits; prompt recall procedures for any defective or nonconforming products.
Pricing Pressure and Competitive Risk	Intense competition from domestic and international generic manufacturers, combined with consolidation among distributors and government efforts to lower drug costs, pressures margins and market share.	Focus on complex, differentiated products (SteriPort, SVP) to reduce exposure to commoditised segments; prioritise operational efficiency and cost optimisation; build long-term partnerships with distributors and suppliers to stabilise pricing and supply.
Data Privacy and Cybersecurity	Increasing digitalisation exposes the Company to cyber threats and data breaches at enterprise and operational levels.	Strengthen cybersecurity frameworks through monitoring, penetration testing, and employee awareness programmes aligned with global standards.

ADEQUACY OF INTERNAL CONTROL SYSTEMS

Amanta Healthcare Limited, maintains a robust internal control framework commensurate with the scale and nature of its operations. The Company believes that asset protection and sustained business efficiency are best achieved through well-defined internal controls and standardised operational processes. The internal control and risk management system is structured in alignment with the principles and criteria set out in the organisation?s corporate governance code, forming an integral part of the overall organisational structure. Its effective functioning draws on the coordinated efforts of personnel across functions, each operating within their defined areas of responsibility. The Board of Directors provides overarching guidance, strategic oversight, and support to the Executive Directors, senior management, and the relevant monitoring and support committees.

CAUTIONARY STATEMENT

The Management Discussion and Analysis contains ‘forward-looking statements?, identified by words like ‘plans?, ‘expects?, ‘will?, ‘anticipates?/ believes?, ‘intends?, ‘projects?, ‘estimates? and so on within the meaning of applicable securities laws and regulations concerning the company?s future business prospects and business profitability. All statements that address expectations or projections about the future, the Company?s strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. All these prospects are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, ability to manage growth, competition (both domestic and international), economic growth in India and the target countries worldwide, ability to attract and retain highly skilled professionals, time and cost overruns on contracts, ability to manage international operations, Government policies and actions with respect to investments, fiscal deficits, regulations, interest and other fiscal costs generally prevailing in the economy etc. Past performance may not be indicative of future performance. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future nor shall the Company update any forward-looking statements made from time to time by or on its behalf.