Amrutanjan Health Care Ltd Management Discussions

<dhhead>MANAGEMENT DISCUSSION & ANALYSIS</dhhead>

Economic Overview

Global Economy

The global economy demonstratedyear, resilience during FY2025-26 despite continued geopolitical uncertainties, evolving trade dynamics and persistent macroeconomic challenges. While growth moderated across several developed economies due to elevated interest rates and subdued consumer spending, easing inflationary pressures and improving financial conditions supported a gradual recovery in global economic activity.

According to the International Monetary Fund (IMF), global growth remained broadly stable, supported primarily by emerging and developing economies, which continued to contribute a significant share of incremental global GDP. Inflation continued to soften across most major economies as supply chain disruptions eased, commodity prices stabilized and central banks maintained prudent monetary policies. Nevertheless, policy rates in several advanced economies remained above historical averages, resulting in relatively tight financial conditions and cautious capital deployment.

Phase"ESOP2" oftheexistingESOP Geopolitical developments, including continuing conflicts in Eastern Europe and the Middle East, together with evolving global trade policies and supply chain realignments, continued to influence energy prices, freight costs and business confidence. At the same time, companies across industries accelerated efforts to diversify sourcing, regionalize supply chains and strengthen operational resilience.

The global healthcare industry continued its transformation, driven by increasing consumer focus on preventive healthcare, digital health technologies and personalized wellness solutions. Adoption of artificial intelligence, connected healthcare, telemedicine and data-driven diagnostics continued to improve healthcare accessibility and efficiency across several markets. Consumers increasingly prioritized self-care and over-the-counter (OTC) healthcare solutions, creating favourable opportunities for companies operating in consumer healthcare categories.

Environmental sustainability remained a strategic priority globally, with businesses increasing investments in renewable energy, responsible sourcing, circular packaging and carbon reduction initiatives. These structural shifts are expected to continue shaping long-term business strategies across industries.

Overall, while macroeconomic uncertainties persist, the global economy remains supported by resilient labour markets, easing inflation and sustained investments in innovation, technology and healthcare, providing a constructive outlook for medium-term growth.

Indian Economy

India continued to outperform most major global economies during FY2025-26, supported by strong domestic consumption, sustained public infrastructure investments, healthy corporate balance sheets and continued policy reforms. The countrys macroeconomic fundamentals remained robust despite external headwinds, reinforcing its position as one of the fastest-growing large economies globally.

Growth was supported by broad-based expansion across manufacturing, services and construction sectors, while rising private consumption and improving investment activity further strengthened economic momentum. Government initiatives focused on infrastructure development, manufacturing competitiveness, digitalization and ease of doing business continued to enhance Indias long-term growth potential.

Inflation moderated during the year, supported by easing commodity prices and effective monetary policy measures. While food inflation remained subject to seasonal fluctuations, overall price stability improved, contributing to stronger consumer confidence and healthier spending patterns. Indias

banking system remaine/d well capitalised, credit growth remained healthy and foreign exchange reserves continued to provide macroeconomic stability.

The Governments continued emphasis on capital expenditure, logistics infrastructure, digital public infrastructure and manufacturing incentives under various policy initiatives has significantly enhanced Indias competitiveness as a global investment destination. Rapid urbanisation, increasing disposable incomes, favourable demographics and rising formalisation of the economy continue to support sustained consumption growth.

Digital adoption remains one of Indias strongest structural growth drivers. Widespread internet penetration, rapid growth in digital payments and expanding e-commerce and quick commerce ecosystems are fundamentally changing consumer purchase behaviour across both urban and semi-urban markets.

Indias healthcare ecosystem is also witnessing structural transformation, driven by rising healthcare awareness, increasing health insurance penetration, expanding healthcare infrastructure and greater consumer preference for preventive healthcare products. Growing demand for self-medication, wellness solutions and OTC healthcare products presents significant long-term opportunities for consumer healthcare companies.

Looking ahead, Indias favourable demographic profile, rising consumption, ongoing infrastructure investments and policy continuity are expected to support sustainable economic growth, reinforcing its position as one of the worlds most attractive long-term growth markets.

Industry Structure and Development

Industry Overview

The Fast-Moving Consumer Goods (FMCG) industry continued to demonstrate resilience during FY2025-26 despite a dynamic operating environment characterised by inflationary pressures, changing consumer preferences and evolving retail formats. The sector benefited from improving rural demand, stable urban consumption and continued expansion of organised retail, e-commerce and quick commerce platforms.

Consumer spending remained strong, supported by rising disposable incomes, favourable employment conditions and increasing aspirations across both urban and rural India. Premiumisation continued across several FMCG categories as consumers increasingly sought products offering superior quality, convenience, health benefits and enhanced consumer experience.

Health and wellness emerged as one of the strongest long-term consumption trends. Consumers are increasingly prioritising preventive healthcare, immunity enhancement, natural ingredients and scientifically backed formulations.

This shift continues to drive demand across OTC healthcare products, functional foods, nutraceuticals and wellness-focused personal care categories.

Digital transformation is fundamentally reshaping the FMCG landscape. Companies are leveraging data analytics, artificial intelligence, automation and digital consumer engagement to improve product innovation, supply chain efficiency and marketing effectiveness. Digital commerce including e-commerce, quick commerce and omnichannel retail has become an integral growth engine, enabling wider product availability, faster fulfilment and deeper consumer engagement.

Quick commerce has emerged as a particularly important channel for consumer healthcare products, especially in urban markets where immediacy of need significantly influences purchase decisions. Products addressing everyday ailments, wellness and convenience continue to witness increasing adoption across digital platforms.

Sustainability continues to gain strategic importance across the FMCG value chain. Companies are increasingly investing in responsible sourcing, recyclable packaging, resource-efficient manufacturing and carbon footprint reduction to meet evolving consumer expectations and regulatory requirements. These initiatives are expected to strengthen brand equity while creating long-term operational efficiencies.

The Indian FMCG sector also benefited from improving rural demand during the year, supported by better agricultural output, favourable monsoon conditions, government welfare programmes and higher rural income levels. Rural markets are gradually narrowing the growth gap with urban markets, providing incremental opportunities for category expansion and household penetration.

The consumer healthcare segment continues to benefit from increasing awareness regarding self-care, preventive healthcare and early symptom management. Consumers are increasingly seeking convenient, accessible and trusted OTC solutions for common health conditions, supported by greater digital awareness and improved product accessibility across modern trade, pharmacies, e-commerce and quick commerce channels.

While the industry continues to face periodic volatility arising from raw material prices, competitive intensity and evolving regulatory requirements, its long-term fundamentals remain strong. Rising healthcare awareness, favourable demographics, increasing digital adoption, expanding organised retail and sustained innovation are expected to continue supporting healthy growth across the FMCG and consumer healthcare sectors over the medium to long term.

Implications of Economic Overview on AHCL:

While global macroeconomic uncertainties continue to influence commodity prices, freight and supply-chain costs, your Company remains focused on improving sourcing, manufacturing and supply-chain efficiencies, accelerating digitisation and maintaining disciplined cost management. At the same time, the global shift towards preventive care and self-care supports the long-term opportunity for the Companys health and hygiene portfolio.

Indias strong consumption outlook, increasing healthcare awareness, expanding digital infrastructure and growing organised retail provide a supportive foundation for the Companys long-term growth strategy. These trends reinforce its focus on strengthening Amrutanjan and Comfy, expanding distribution beyond traditional strong markets, increasing participation across e-commerce and quick commerce, and investing in consumer-led innovation. With trusted brands and expanding execution capabilities, your

Company remains confident of delivering sustainable and profitable growth.

The shift towards self-care, preventive health and accessible OTC solutions directly supports AHCLs strategy across pain management, womens hygiene and rehydration.

Your Company is positioned to benefit through portfolio expansion, consumer education, wider availability across chemists, traditional trade and digital commerce, and continued investment in manufacturing and supply-chain capabilities. While regulatory change, input-cost volatility and competitive intensity require disciplined execution, trusted brands, expanding distribution and innovation provide a strong foundation for long-term value creation.

Category Overview

The *Rubefacients category continued its growth path in FY26, with both value and volume recording healthy growth, indicating that the category expansion was primarily consumption-led. The category was valued at I8,229 crore in FY26. AHCL outperformed the category and other major players in terms of volume growth, while its value and volume growth remained broadly aligned. This reflects strong underlying consumer demand and reinforces the Companys focus on driving sustainable, consumption-led growth.

Within the Rubefacients category, the Headache segment maintained a growth trajectory in FY26, broadly in line with the previous year, across value and volume. The category grew from I1,929 crore in FY25 to I2,014 crore in FY26. AHCL continued to deliver growth during the year, with Amrutanjan Headache recording volume growth ahead of the overall headache category, reflecting continued consumer preference and strengthening brand momentum.

The Body Ache segment was valued at I4,173 crore in FY26 and delivered near-double-digit value growth over a higher base in FY25. While AHCL operates from a relatively smaller base in this segment, its volume growth was significantly ahead of the category across all quarters of FY26, indicating increasing consumer acceptance of the Companys Body Ache portfolio.

These positive category trends were also reflected in the Companys internal sales performance, with strong secondary sales growth across the Headache and Body Ache segments, as well as the overall Rubefacients portfolio. This momentum translated into near double-digit growth in primary sales for the Rubefacients category, reinforcing AHCLs strong market presence and continued growth momentum.

Company Overview

OTC Business

The Companys Over-the-Counter (OTC) segment delivered gross sales of I518.6 crore in FY26, maintaining a strong growth performance during the year. General Trade (GT) continued to be the mainstay of the segment, contributing 84.4% of total OTC turnover and registering a healthy 12% growth over FY25. This performance was led by the Chemists channel, the Companys largest contributor, where AHCL recorded volume growth 1.8 times that of the Headache category, underscoring the strength of the Companys brands and sustained consumer demand.

The Company continued to strengthen its presence across emerging and high-growth channels, with focused investments in E-Com and Q-Com resulting in increased share of OTC sales. At the same time, growing contributions from export markets supported the diversification of the

Companys revenue streams and expanded its reach beyond domestic markets. Together, these initiatives reinforce

AHCLs strategy of building a more diversified and resilient growth engine for its OTC business.

CHANNEL CONTRIBUTION (%)

The Headache segment continued to anchor AHCLs domestic business in FY26, generating gross sales of I282.04 crore and contributing 55.6% to the Companys total domestic revenue of I 507.45 crore. While the segment continued to be the largest contributor to the portfolio, its share moderated during the year, reflecting the increasing contribution of the Companys diversified portfolio and the strong growth delivered by its emerging categories.

AHCLs multi-category, multi-brand strategy continued to gain momentum during the year. The Womens Hygiene (WH) category delivered a strong performance, with its contribution to the overall portfolio increasing from 28% to 30%. This growth reflects the Companys sustained investments in the category and its efforts to build scale and strengthen consumer relevance.

Comfy, AHCLs flagship Womens Hygiene brand and the second-largest contributor to the portfolio, continued its strong growth momentum, registering an 18% increase in revenue in FY26 over FY25. The WH category achieved a significant milestone during the year, with gross revenue reaching I151.31 crore, compared with I127.79 crore in the previous financial year.

Marketing Activities

STRATEGIC APPROACH Building salience at scale while creating category-relevant experiences at the point of viewing, purchase and product trial.

During FY 2025-26, Amrutanjan continued to strengthen its market presence through an integrated marketing approach combining brand communication, strategic media investments, retail visibility and consumer-centric activations. The programme was designed to keep the Companys trusted propositions visible across the consumer journey from mass and regional media to neighbourhood retail, workplaces, public gatherings and emerging rural markets.

The years interventions were organised around the distinct growth requirements of five business priorities: Pain Management, Congestion, Womens Hygiene, Beverages and Rural Expansion. Within each category, communication was linked to a clear role. Television and high-impact properties built broad awareness; in-store visibility supported consideration at the point of purchase; sampling enabled first-hand experience; and rural vans strengthened last-mile access and retailer coverage.

The Body category further strengthened its position as the third-largest contributor to the OTC portfolio, recording sales of I50.29 crore in FY26. At the same time, the Companys entry into the Personal Care category began contributing to overall revenues, marking another step forward in AHCLs journey towards building a broader and more diversified portfolio. These developments underscore the Companys continued progress in expanding beyond its core categories, creating new growth engines, and strengthening its position as a multi-category, multi-brand consumer healthcare organisation.

CATEGORY CONTRIBUTION (%)

New launches were supported within their natural category context. Advanced Ortho Pain Relief Oil extended the Body portfolio; Relief Nasal Spray broadened the congestion range; Comfy Slimfit XXL Night Pads addressed the fast-growing night-use segment; and Comfy Womens Razors expanded the personal-care adjacency of the Comfy franchise. This category-led approach enabled innovation to benefit from the trust, media support and retail presence of the relevant portfolio.

- Pain - Head & Body: Refreshed communication, high-impact media, in-store visibility, sampling and Advanced Ortho Pain Relief Oil.

- Congestion: Integrated television and digital communication, range visibility and Relief Nasal Spray.

- Womens Hygiene: Sustained TV support, retail activation, education-led sampling, Comfy Night Pads and Womens Razors.

- Beverages: Electro+; Enerlyte: consumer education, retail visibility, digital influence and large-scale product trial.

- Rural Expansion: Van-led retailer and distributor outreach across small towns and villages.

The Pain - Head & Body portfolio was supported by a refreshed television campaign created to widen the range of occasions associated with Amrutanjans pain-relief solutions. Two new films were developed around multiple

Category Entry Points (CEPs), allowing the communication to connect the brand with a broader set of everyday needs rather than a single, narrow moment of pain. The Companys CEP led communication strategy focuses on increasing brand relevance across multiple consumption occasions, thereby broadening consumer reach and accelerating penetration of the AHCL pain management portfolio.

The films brought together Yellow Balm, White Balm and Headache Roll-On, highlighting use occasions across indoor and outdoor settings. By presenting the portfolio as a practical companion in familiar situations, the campaign underlined the multifunctionality of the range while keeping the product role easy to understand. Relatable storytelling helped the communication remain emotionally accessible without diluting the core promise of trusted relief.

The campaign was executed across all key states for the pain category and was supported by high-impact properties. This provided a consistent national and regional platform for the portfolio, while allowing market-level media choices to reflect category strength and consumer relevance.

COMMUNICATION ROLE Use familiar occasions to make the breadth of the pain portfolio more visible, contemporary and easy to recall.

Head & Body: High-Impact Reach and Regional Salience

High-impact television support included the Kaun Banega Crorepati association during FY 2025-26.

Amrutanjan amplified the television campaign through associations with high-visibility entertainment properties. During FY 2025-26, Hindi-speaking market media support commenced with high-impact properties, including an association with Kaun Banega Crorepati. The brand also continued its association with Bigg Boss Kannada to build awareness and consideration in Karnataka.

These partnerships placed Amrutanjan within programmes that attract sustained audience attention and repeat viewing. The objective was not simply to add media weight, but to reinforce the campaigns message within culturally relevant, high-engagement environments. Regional market selection enabled the Company to combine broad reach with local relevance.

The year also included high-impact transit and outdoor visibility. Auto-rickshaw and other branding extended presence into neighbourhoods and high-footfall urban locations. Together, television, transit and outdoor interventions created multiple opportunities for consumers to see and remember the brand during their daily routines.

INTEGRATED EFFECT Mass-media visibility was reinforced through transit and local-market assets, creating continuity between entertainment, commuting and retail environments.

Pain-category shop boards and parasite placements showcased the portfolio across general and modern trade.

In-store execution translated campaign awareness into stronger product visibility at the point of purchase. Head-range posters, communication for Amrutanjan Faster Relaxation Roll-On 2.5 ml and complete-range displays were deployed to make the portfolio easier to notice and understand within crowded retail environments.

In Tamil Nadu, pain-category shop boards were used to build awareness and consideration beyond the store interior. Across general trade and modern trade, parasite placements showcased the complete product range, helping the brand occupy visible space without relying only on the primary shelf. This execution was undertaken in Delhi, Uttar Pradesh, Bihar, Gujarat, Madhya Pradesh, Maharashtra, Tamil Nadu, Telangana, Karnataka and Andhra Pradesh.

The retail programme complemented the broader communication plan by placing product and usage cues closer to the purchase decision. By maintaining common visual assets across posters, boards and display units, the brand strengthened recognition while enabling retailers to present a more complete pain-management portfolio.

Head & Body: Product Experience and Portfolio Expansion

Consumer sampling and in-store visibility for Advanced Ortho Pain Relief Oil supported awareness, consideration and trial.

Product sampling remained central to Amrutanjans consumer-engagement strategy. Activities were conducted across high-footfall public locations and transit hubs, prominent religious and pilgrimage destinations, gated residential communities, corporate offices, IT parks and other workplace environments. With this targeted outreach programme, approximately 4 lakh consumers were contacted during the year.

Festival-led programmes created concentrated opportunities for trial. At the Ganpati Festival, around 50,000 consumers were reached across key metros in Maharashtra. The Pandharpur Wari initiative reached around 1.3 lakh consumers across key towns in the state of Maharashtra and was supported by audio and video activities at bus stations.

In addition to the above initiatives, a separate Jiffy activation was reoriented from a smaller set of gyms, parks, residential communities and corporate locations to 60 high-footfall touchpoints around outlets, strengthening local visibility and consumer contact.

Advanced Ortho Pain Relief Oil

In 2025-26, AHCL launched Advanced Ortho Pain Relief Oil as an extension of the Body portfolio. In-store visibility was executed across Andhra Pradesh, Assam, Delhi, Jharkhand, Karnataka, Kerala, Odisha, Tamil Nadu, Telangana, Uttar Pradesh and West Bengal. The launch was also integrated into sampling activity across high-footfall areas, corporates, pilgrimage locations and mandis in Tamil Nadu, Karnataka, Kerala, Andhra Pradesh, Telangana, Maharashtra and Gujarat.

Congestion: Making Everyday Relief More Relevant

During the year, Amrutanjan Relief Inhaler strengthened its consumer connect through refreshed television communication built around everyday situations in which nasal congestion can interrupt important moments. The campaign showed how blocked breathing can affect work, studies and social interactions, and positioned timely relief as a way to regain focus and confidence.

A light-hearted storytelling approach made the communication accessible to a wide cross-section of consumers, with particular relevance for younger audiences. Product integration remained central: familiar situations demonstrated the role of the inhaler without allowing the story to overshadow the benefit. This balance helped make the brand feel more contemporary while retaining the dependability associated with Amrutanjan.

The campaign was rolled out across leading regional television networks and supported through digital platforms, enabling consistent messaging across consumer touchpoints. In Tamil Nadu and Karnataka, television support and on-ground activity were complemented by congestion-range posters. The integrated approach was designed to build awareness and consideration while helping consumers recognise the breadth of the Relief portfolio.

COMMUNICATION ROLE Show quick, effective nasal-congestion relief within situations that are familiar, consequential and easy to remember.

Congestion: Extending the Relief Portfolio

Relief Nasal Spray

In FY 2025-26, AHCL entered a new congestion-care format with the launch of Relief Nasal Spray. The launch complemented the existing Relief portfolio and broadened the ways in which consumers could address nasal congestion. By placing the new format within the established Relief franchise, the Company was able to build on existing trust while expanding the categorys product architecture.

In keeping with the integrated category approach, Nasal Spray was not treated as a stand-alone corporate launch; it formed part of the broader congestion story supported by television, digital communication and range visibility.

A connected portfolio at retail

Congestion-range posters helped present products as a coherent family rather than isolated SKUs. This approach supports easier navigation at the point of purchase and gives retailers a clearer way to recommend products against consumer needs. It also creates a platform for future innovation under a recognisable category promise.

Across communication and retail execution, the emphasis remained on a direct consumer benefit: dependable relief that helps consumers return to the moments that matter. The combination of contemporary storytelling, regional media and product-format expansion reinforced Amrutanjan Relief as a relevant solution for everyday nasal congestion.

PORTFOLIO ROLE Use the trust of the Relief franchise to introduce a new format while maintaining one clear congestion-care narrative.

Rehydration Category

Climate change is contributing to a rise in the frequency and intensity of extreme-heat events globally, making elevated temperatures an increasingly persistent feature of the environment. The World Meteorological

Organization (WMO) confirmed that 2025 was the second or third warmest year on record, with the global average temperature approximately 1.43 deg C above the 1850-1900 pre-industrial average. In India, the annual mean land-surface air temperature in 2025 was 0.28 deg C above the 1991-2020 long-term average, making it the eighth warmest year since records began in 1901.

Prolonged exposure to high temperatures places additional stress on the human body, increasing perspiration and the loss of fluids and essential electrolytes. Inadequate replacement of these losses can result in dehydration and associated symptoms such as fatigue, weakness, dizziness, muscle cramps, and reduced physical and cognitive performance. Severe heat exposure may also lead to heat exhaustion and heatstroke, while extreme heat can aggravate certain cardiovascular, respiratory, renal, and metabolic health conditions.

Against this backdrop, maintaining adequate hydration is becoming increasingly important for a broad range of consumers, including outdoor workers, athletes, commuters, students, travellers, and individuals leading active lifestyle. While water remains fundamental to everyday hydration, situations involving prolonged heat exposure, intense physical activity, or excessive sweating may increase the need to replenish both fluids and electrolytes to support the restoration of the bodys fluid balance.

Amrutanjan recognises the growing relevance of hydration as a consumer health need and the opportunity to support consumers through appropriate hydration solutions. The evolving climate landscape, changing lifestyles, and increasing awareness of preventive health are expected to further strengthen consumer focus on hydration, wellness, and everyday health management, creating opportunities for the Company to innovate and address emerging consumer needs through relevant and responsible solutions.

Rehydration New Launch: Meeting the Diverse Needs of Consumers

As a consumer driven organisation, AHCL remains committed to addressing the evolving health and wellness needs of consumers through relevant, science-backed solutions. Recognising that rehydration needs vary across consumer groups and their usage occasions, the Company has adopted a differentiated portfolio approach. With the launch of Enerlyte, alongside the existing Electro+ range available in Tetra and Powder formats, AHCL has further strengthened its presence in the rehydration category and expanded its ability to address diverse consumer needs.

Enerlyte has been introduced to address the growing need for everyday hydration. In the context of Indias hot climate and increasingly active lifestyles, consumers may experience fluid and electrolyte loss due to heat exposure, travel, work, and physical activity. While plain water remains fundamental to daily hydration, consumers often have limited options between conventional beverages and therapeutic rehydration solutions. Enerlyte is positioned to address this space by offering a convenient and science-backed hydration solution suited to everyday consumption occasions.

With the introduction of Enerlyte and the continued availability of Electro+ in Tetra and Powder formats, AHCL has further broadened its rehydration portfolio to address the distinct rehydration needs of different consumers. This portfolio expansion reinforces the Companys commitment to delivering accessible, science-backed health and wellness solutions while strengthening its position in the evolving rehydration category.

Banners, posters, education material, quick-commerce leaflets and flanges supported the Electro+ portfolio.

Electro+ received extensive brand support during FY 2025-26, with visibility initiatives deployed across multiple consumer and retail touchpoints. Banners, A4 and 3D posters, education posters, quick-commerce leaflets and flanges were used across states to build awareness and consideration for the brand and its formats.

Education was central to the programme. Retail material highlighted usage occasions and helped distinguish between WHO ORS and non-WHO ORS rehydration drinks. By combining product visibility with practical information, the brand sought to make the category easier to navigate and to improve the relevance of our portfolio across different hydration needs.

A counter-top unit combined education with visibility, allowing key usage information to sit close to the product and the purchase decision. This was particularly important for a category in which consumer understanding can determine format choice and usage occasion.

The activity was designed as a connected system rather than a collection of isolated materials. Large-format assets created noticeability, smaller retail units sustained presence near purchase, and sampling enabled consumers to experience the product.

CATEGORY-BUILDING ROLE Combine visibility and simple consumer education to improve understanding, consideration and confident format choice.

Sports Association: Professional Golf Tour of India (PGTI):

Amrutanjan strengthened its engagement with fitness and sports-oriented consumers through a targeted sampling initiative at the Professional Golf Tour of India (PGTI). The association activity provided an effective platform to demonstrate Enerlytes relevance in supporting hydration and electrolyte replenishment during prolonged physical activity and outdoor exposure.

Product sampling enabled participants and attendees to experience the brand first-hand, while visibility across the golf course reinforced Enerlytes association with endurance, active lifestyles and timely rehydration. The initiative complemented the brands broader consumer-outreach programme by connecting its functional hydration proposition with a credible professional sporting environment.

An influencer-led Facebook and Instagram campaign supported Electro+ Rehydrate in Tamil Nadu and Odisha.

Digital communication positioned the brand as a smart and effective daily rehydration solution that helps combat tiredness and boost energy. The influencer-led campaign ran on Facebook and Instagram in Tamil Nadu and Odisha, using locally relevant digital voices to build awareness and consideration.

Sampling and physiotherapy activity at marathons was complemented by a quick-commerce sampling initiative.

On-ground engagement connected the brand with active-consumer context. Sampling and physiotherapy activities were undertaken at marathons, where hydration and recovery needs were naturally relevant. The Company also undertook a large-scale quick-commerce sampling programme through which 3 lakh consumers were reached directly. Education posters explaining the usage occasions of WHO ORS and non-WHO ORS rehydration drinks were distributed with samples.

The combined programme linked reach with understanding and experience. Digital content created relevance; sports environments provided a credible occasion for trial; quick commerce delivered samples directly; and retail education supported subsequent choice. Together, these interventions strengthened the Amrutanjans role of having a rehydration portfolio serving distinct needs and occasions.

Womens Hygiene: Strengthening Presence and Driving Inclusive Growth

Menstrual hygiene continues to be an important public health priority in India, with sanitary napkin penetration remaining below 50% and significantly higher in urban areas than in rural markets (Urban is 1.6 times of Rural). In rural India, many women continue to rely on traditional alternatives such as cloth, driven by factors including limited access, affordability constraints, and gaps in awareness.

This highlights a significant opportunity to expand the category and improve access to affordable menstrual hygiene solutions, particularly across underserved markets.

Comfy Sanitary Napkins, AHCLs flagship brand in the Womens Hygiene segment, continues to focus on addressing this opportunity by offering affordable, quality menstrual hygiene solutions designed to meet the needs of rural and lower-income urban consumers. The brands predominantly rural outlet presence reflects its commitment to expanding access and promoting inclusive menstrual hygiene adoption.

Comfy delivered strong double-digit sales growth of 19% in FY26 over FY25, with the XL variant recording significant growth of 44%, reflecting evolving consumer preferences and increasing adoption of longer-length pads.

The brand also continued to strengthen its consumer franchise, with key brand health indicators including awareness, consideration, usage and satisfaction of the brand (among users) showing a consistent upward trajectory over the years. This sustained improvement reflects growing consumer acceptance of Comfy and reinforces the brands increasing relevance in supporting better menstrual hygiene practices among women across India.

Womens Hygiene: Sustained Brand Building and Retail Visibility

Comfy television support was reinforced through hanger packs, standees and other point-of-purchase assets.

Comfy continued to receive sustained television support throughout the year, enabling the brand to maintain strong visibility and reinforce its presence across key markets. The campaign was aired across states. This communication enabled the brand to deepen its presence in established markets while progressively extending consumer confidence to additional growth geographies.

The television campaign was designed to build awareness for the Comfy brand while familiarising consumers with its expanding range of variants. Consistent communication across markets helped reinforce Comfys core proposition of providing dependable and accessible menstrual-hygiene solutions while improving recognition of the different products available within the portfolio. The use of television also enabled the brand to reach consumers at scale, strengthen recall and maintain continuity in its communication throughout the year.

Importantly, sustained support for the Comfy brand provided a strong platform for portfolio expansion. As new variants and usage-specific offerings were introduced, the campaign ensured that product-level communication benefited from the familiarity and trust already associated with Comfy. This integrated approach helped create a cohesive portfolio narrative, strengthened consideration across consumer segments and supported Comfys continued expansion within the womens hygiene category.

Retail visibility translated this awareness into a stronger in-store presence. Comfy hanger packs improved product visibility in compact retail environments, while standees, posters and sun boards helped the brand communicate at the point of purchase. Nearly 20,000 outlets across Andhra Pradesh, Telangana and Tamil Nadu were covered through sun boards and A3 posters during this intervention.

The brand also expanded visibility within business-to-business retail chains in Karnataka, Telangana and West Bengal to support volume purchase. Shop boards in Uttar Pradesh and Bihar extended awareness beyond the shelf, while executions in West Bengal demonstrated the role of standees and hanger packs in making variants easier to notice.

Womens Hygiene: Education, Trial and Consumer

Confidence

School-based sampling was undertaken in Tamil Nadu, Andhra Pradesh, Telangana, Uttar Pradesh and Jharkhand.

For Womens Hygiene, consumer engagement combined product trial with awareness and education. School-based activity was undertaken in Tamil Nadu, Andhra Pradesh, Telangana, Uttar Pradesh and Jharkhand, bringing the brand into settings where information and access can influence long-term category adoption.

Through this school programme activity the objective is to sampling around 2.5 lakh schoolgirls. This education-led approach has a strategic role beyond immediate trial. By providing product exposure in an appropriate setting, the programme reduced hesitation, improve familiarity with the category and build confidence in product use. At the same time, the integration of sampling with media and in-store visibility creates continuity - consumers encounter the brand through communication, experience the product through outreach and recognise it again at retail.

The programme reflects Comfys broader objective of expanding access to menstrual-hygiene solutions across diverse markets. The emphasis remained on respectful engagement, practical information and availability, supported by a portfolio designed to address varied usage occasions.

ENGAGEMENT ROLE Use education and product trial to build familiarity and confidence, while media and retail execution sustain recognition and access.

Womens Hygiene: New Launch - Innovation for Evolving Usage Occasions

Comfy Slimfit XXL Night Pads

In line with the Companys plan to expand into premium sanitary napkins, Comfy Slimfit XXL Night Pads were launched in

FY 2025-26. The launch responded to increasing consumer demand in the fast-growing night-pads segment and extended the Comfy portfolio into a clearly defined usage occasion.

Dedicated in-shop activation supported the introduction, using product-led visibility elements to distinguish the new variant and explain its night-use role. The launch benefited from the wider Comfy television campaign and from the retail infrastructure created through hanger packs, standees, posters and boards.

Comfy Womens Razors

In Q4 FY 2025-26, AHCL launched a range of Comfy Womens Razors as part of its entry into adjacent personal-care categories. The launch expanded the relevance of the Comfy franchise beyond menstrual hygiene while retaining its focus on womens personal-care needs.

Rural Expansion: Reaching the Last-Mile Retailer

Amrutanjan continued to expand its presence in small towns and villages through dedicated rural van initiatives. The programme had two connected objectives: to widen rural market coverage for the AHCL portfolio and to strengthen the distributor and sub-distributor network required for sustained availability.

The van activity covered Uttar Pradesh, Tamil Nadu, Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, Jharkhand, Andhra Pradesh and Telangana. Mobile assets carried portfolio communication into underserved markets, supporting retailer engagement, product awareness and promotion closer to the point of sale.

Approximately 1,000 villages were reached through rural outreach, introducing the product range to previously untapped consumers. These villages were identified for transition into regular coverage areas, linking activation with a longer-term route-to-market objective rather than treating the van programme as a one-time event.

The initiative also supported last-mile visibility by enabling the Company to engage retailers directly, demonstrate the breadth of the portfolio and strengthen local distribution relationships. Pain Management benefited from the rural outreach, with its contribution to AHCL revenues increasing in FY26.

C LOS I N G PE RS PEC T I V E TO S U M U P MARKETING ACTIVITIES:

An Integrated System for Sustainable Brand Growth

Across FY 2025-26, Amrutanjans marketing activities were anchored in a simple principle: each category requires a distinct consumer story, but growth is strongest when communication, trial, retail visibility and availability work together. The years programme therefore balanced mass reach with category-specific execution.

From awareness to experience

Television and high-impact entertainment properties built broad salience for Head & Body and Comfy. Regional television and digital communication made Relief more contemporary and relevant to everyday congestion occasions. Influencer content placed Electro+ within a daily rehydration context. Across categories, the role of communication remained disciplined: establish the problem, demonstrate the proposition and make the product easier to remember.

From experience to consideration

Sampling at pilgrimage destinations, festivals, workplaces, schools, marathons, high-footfall locations and through quick commerce enabled first-hand product engagement.

Education material added context where the category required it, particularly for menstrual hygiene and rehydration. This combination supported informed trial rather than product distribution alone.

From consideration to availability

Shop boards, posters, standees, hanger packs, parasite placements, flanges and counter-top units strengthened visibility close to purchase. Rural vans expanded this principle beyond established retail, supporting distributors, sub-distributors and retailers across the states covered and creating a pathway from activation to regular market coverage.

Innovation within trusted category platforms

Advanced Ortho Pain Relief Oil, Relief Nasal Spray, Comfy Slimfit XXL Night Pads and Comfy Womens Razors were integrated within the categories whose trust and infrastructure could best support them. By connecting innovation to established category stories, Amrutanjan strengthened portfolio breadth while retaining the familiarity and reliability at the heart of the brand.

Modern Trade (MT)

The Modern Trade (MT) channel continued its growth trend in FY 26, clocking a revenue of 52.59 Crs when compared to I51.32 Crs during the previous financial year. Over the last 13 years, the MT channel has expanded over nine-fold, achieving an impressive Compound Annual Growth Rate (CAGR) of 19.7%.

This consistent performance underscores the success of AHCLs strategic initiatives and the increasing consumer demand for its portfolio in the modern retail environment. The Company remains focused on deepening its presence in this high-potential channel by leveraging consumer insights and collaborative retail partnerships.

Strengthening Distribution Reach and Market Accessibility

AHCL continued to strengthen its distribution footprint during FY26, expanding the availability of its products to 1.12 million retail outlets across India. This extensive distribution network enables the Company to enhance product accessibility across diverse town classes and markets, supporting its commitment to addressing the evolving healthcare and wellness needs of consumers nationwide.

As part of its focused distribution strategy, the Company undertook a time-bound, targeted initiative to expand its presence across chemist outlets, one of its key channels. The initiative resulted in a meaningful increase in chemist outlet coverage, further strengthening AHCLs market reach and improving the availability of its products at key consumer touchpoints.

The company undertook some key initiatives to drive sales and distribution and it has impacted positively on the key lead indicators:

Lead Indicators	Increase in FY 26 over FY 25 (In %)
Sales Infrastructure (Stockist network)	9%
Total Direct Outlets Covered	12%
Effective Outlets Coverage	7%
Productive Calls	6%
Sales Man Productivity	8%
Total Lines Sold	35%

A key measure of brand performance, Per Dealer Offtake

(PDO), reflects the sales velocity of products at the retail level. The sustained improvement in PDO over the years demonstrates strong consumer demand, increasing brand preference, and healthy market momentum.

This performance underscores the effectiveness of AHCLs sales and distribution initiatives, complemented by focused consumer engagement efforts, and reinforces the strength of the Companys brands and their growing relevance among consumers.

Digital Acceleration: Expanding Reach Through E-commerce and Quick Commerce

AHCLs continued focus on strengthening its digital presence delivered strong results in FY26, with the Companys products becoming increasingly accessible across leading e-commerce and digital platforms. The Company expanded its presence across platforms including Amazon D2C, City Mall, DMART ECOM, Flipkart, Netmeds, PharmEasy, SastaSundar, Tata 1mg, BigBasket B2C, Blinkit, Flipkart Hyperlocal, Swiggy, and Zepto. As a result, the E-commerce (ECOM) channel recorded revenue of I14.12 crore in FY26, registering robust growth of 48.8% over the previous year.

A significant highlight during the year was the rapid expansion of the Quick Commerce (QCOM) channel, reinforcing AHCLs strategy of enhancing consumer convenience and enabling faster access to its products. The Company strengthened its partnerships with leading platforms, including Blinkit, Swiggy Instamart, Zepto, and Flipkart Hyperlocal, enabling consumers to access select products within minutes and supporting the Companys proposition of delivering quick and effective relief.

The QCOM channel emerged as the fastest-growing channel for the Company, recording revenue of I 7.55 crore in FY26, representing a robust 84.2% growth over the previous year.

This strong performance reflects the increasing relevance of convenience-led consumption and the growing adoption of digital-first purchase occasions.

AHCL remains committed to accelerating its digital transformation and strengthening its presence across ECOM and QCOM platforms. Continued investments in these channels will focus on expanding consumer reach, enhancing accessibility and convenience, and creating sustainable growth opportunities for the Company.

Exports: Expanding Global Presence and Strengthening Export Growth

AHCLs Export business delivered its strongest performance in the last 13 years, recording revenue of I 11.15 crore in FY26, representing an impressive 36.1% growth over the previous year. The Export business has maintained a strong growth trajectory, registering a CAGR of 18.1% over the past 13 years, reflecting the Companys sustained efforts to build and expand its international presence.

Africa continued to be the largest contributor to export revenue, accounting for 81% of total exports in FY26. While the contribution from the Middle East and Southeast Asia moderated during the year, revenues from other international markets doubled compared with the previous year, indicating encouraging progress in geographical diversification.

From a category perspective, the Head segment regained momentum during FY26, contributing 45% of total export revenue. The Body segment continued to be the leading category, contributing 46% and remaining marginally ahead of the Head segment.

The strong performance of the Export business reflects

AHCLs continued focus on expanding its geographical footprint, diversifying its international market presence, and strengthening its category portfolio across global markets. These efforts are expected to support the Company in building a more diversified and sustainable international growth platform.

As part of our global growth strategy, Amrutanjan Healthcare Limited launched Amrutanjan Relief in the United States through Amazon US in FY 25-26, marking a significant milestone in the Companys international expansion journey.

The launch introduced Amrtanjans trusted pain relief expertise to the worlds largest consumer healthcare market, with a portfolio of topical pain relief products designed to address muscle aches, joint pain and everyday body discomfort.

Leveraging over 130 years of heritage, trusted formulations and consumer confidence built over generations, the brand aims to establish a strong presence in the US OTC healthcare category.

The initial launch through Amazon provides a scalable digital-first platform to build brand awareness, generate consumer adoption and gain valuable market insights This initiative reflects Amrutanjan Healthcares long-term vision of building a global consumer healthcare business while delivering sustainable growth and creating long-term value for its shareholders.

Manufacturing

Amrutanjan Health Care Ltd (AHCL) continues to be a cornerstone of Indias Over-the-Counter (OTC) healthcare landscape.

Founded in 1893, the Company has evolved from a single-product entity (the iconic yellow pain balm) into a diversified consumer goods player with a significant presence in pain management, congestion relief, beverages, and feminine hygiene. Guided by a century-old commitment to wellness, the Company continues to innovate and grow its presence, both domestically and internationally.

Our OTC manufacturing units are certified to ISO 9001 Quality Management System standards and fully adhere to Good

Manufacturing Practices and the regulations outlined in the Drugs and Cosmetics Act. We uphold the highest quality standards during manufacturing to ensure effective, defect-free products. With a capacity of 1,800 MT, we are well-equipped to meet market demand.

To expand our global presence, we have established a new Allopathic division, supported by a cGMP-certified manufacturing facility. This division is dedicated to the production of OTC monograph topical application products intended for export to the US and other regulated markets.

In line with cGMP requirements, qualified and trained personnel have been recruited, and all manufacturing and support processes are carried out exclusively by this trained workforce. The facility has been thoughtfully designed, constructed, and commissioned in full compliance with all applicable cGMP requirements.

In our beverage plant, we produce ready-to-serve fruit juices and fruit juices with electrolytes, following best practices according to the ISO 22000 Food Safety Management System.

Management provides a safe working environment for all employees. We also have a safety committee that conducts regular safety audits to ensure standards are maintained. Employees are motivated to improve operations through training and quality circle meetings for continuous improvement.

Overall, we take pride in advancing our digital transformation efforts, enhancing our online presence and e-commerce capabilities to connect with a younger, tech-savvy consumer base.

AHCL remains committed to high standards of corporate governance, transparency, and ethical conduct. The Company ensures compliance with all regulatory requirements and promotes responsible business practices to create long-term value for stakeholders.

The Company is well-positioned to capitalise on the growing health and wellness market in India and aims to continue delivering value through innovation, strategic growth, and a steadfast dedication to quality.

Segment Wise Freight & Handling

		Rs. In lakhs
Segment	2025-2026	2024-2025
OTC Products
Net Sales	32,831.73	29,002.99
Freight & Handling	890.27	889.91
Charges
	2.71%	3.07%
Womens Hygiene &
Personal Care
Net Sales	13,990.66	12,396.25
Freight & Handling	542.39	641.89
Charges
	3.88%	5.18%
Beverages
Net Sales	3,156.09	3,643.01
Freight & Handling	567.61	566.26
Charges
	17.98%	15.54%

Women Hygiene

In Feminine Care, we have commissioned our Greenfield

Sanitary Napkin Manufacturing Facility at Seetharampur Village, Shabad Mandal, Rangareddy District, Telangana, approximately 45 km from Hyderabad. The I150 crore investment marks a major milestone in the Companys manufacturing journey and strengthens its commitment to delivering high-quality feminine hygiene products under the Comfy brand.

Spread across 10 acres with a 1.40 lakh sq. ft. built-up area, the facility is AHCLs fifth manufacturing plant and has been strategically located to leverage Hyderabads strong industrial ecosystem, excellent road connectivity, skilled workforce, and efficient access to key markets across India. The project also contributes to the economic development of the surrounding rural communities by creating sustainable employment opportunities.

Designed as a state-of-the-art manufacturing facility, the plant features two fully automated high-speed production lines from Japan, making it one of Indias fastest sanitary napkin manufacturing facilities. With a planned annual production capacity of 700 million sanitary napkins, the plant combines advanced automation, precision manufacturing, and robust quality systems to ensure consistent product quality and operational excellence.

The facility is expected to generate 200 direct and 150 indirect employment opportunities, supporting local talent while strengthening the regional manufacturing ecosystem.

Sustainability has been integrated into the plants design through rainwater harvesting, an on-site Sewage Treatment

Plant (STP), waste recycling systems, and energy-efficient

LED lighting. The Company also plans to incorporate solar power in the future, reinforcing its long-term commitment to responsible manufacturing.

This investment reflects AHCLs vision of building future ready manufacturing capabilities, enabling the Make in India initiative. By combining advanced technology, large-scale production capacity, sustainable practices, and local employment generation, the Telangana facility is well-positioned to meet the growing demand for quality feminine hygiene products and strengthen AHCLs leadership in the sector.

Research & Development, Quality, and Safety

Our Research and Development team adheres to a Quality by Design (QbD) approach in the development of new products that are both efficacious and provide significant value to our customers. Our flagship products have undergone comprehensive clinical studies, which validate their efficacy and safety. Furthermore, we actively explore innovative technologies in the design of our packaging to enhance our competitive advantage. The other initiatives of R&D include

a. Enhancement of existing products in terms of Quality and Efficacy. b. Collaborating with alternate suppliers to mitigate single vendor risk. c. New product evaluation through lab tests, pilot trials and consumer evaluation.

Amrutanjan Health Care Limited prioritises quality in all facets of our operations, guided by a steadfast commitment to quality management principles. Our foremost objective is to ensure the well-being of our consumers by adhering to stringent regulatory standards and consistently meeting their expectations for safety, quality, and performance in all our products.

To accomplish this, we have implemented standardised quality management systems at all our operational sites. These systems are designed to eliminate defects and enhance productivity, operating under the Good Manufacturing Practices outlined in the Indian Drugs

& Cosmetics Act. Our Quality Management System for the Over-The-Counter (OTC) division and the Food Safety Management System for the Food and Beverage (F&B) division are aligned with ISO standards, further underscoring our dedication to quality and safety.

We are committed to building quality and safety into our products at every stage of production. This includes rigorous inspections of incoming materials, in-process stages, and finished products, as well as ongoing monitoring of our suppliers and raw materials. We also focus on delivering the highest-quality outcomes to ensure consumer satisfaction.

We have established a robust Quality Management System (QMS) that spans the entire spectrum of our operations, encompassing research and development, raw material procurement, manufacturing, packaging, and delivery. This comprehensive approach ensures that quality is ingrained in every aspect of our business.

To demonstrate our unwavering commitment to quality and food safety, our management systems undergo rigorous annual audits by TUV certification bodies, ensuring ongoing compliance with established standards.

We have recently commissioned a state-of-the-art manufacturing facility for Allopathic products, equipped with advanced manufacturing and testing equipment in compliance with cGMP regulations. Products outlined in the USFDA OTC Monograph guidelines are registered with the USFDA and exported to the USA.

World of Amrutanjan (WOA) Stores

AHCLs World of Amrutanjan Stores are one-of-a-kind experience stores which invite consumers to try, buy and provide feedback on all Amrutanjan products. These concept stores in Delhi, Ahmedabad, and Chennai are supported by modern infrastructure and applications for quick billing and payment transactions using any of the online payment modes of convenience. The WOA Stores are under CCTV surveillance for improved user safety.

Opportunities and Threats

The OTC business segments pain management sector remains a significant contributor to the overall OTC segment. The majority of the Companys revenue (62%) is derived from the Head and Body categories, reaffirming their role as the primary revenue contributors for the Companys growth in the future.

Threats as foreseen by AHCL for the upcoming year:

- Low penetration of AHCL products in P3 markets and strong competition, challenging the Companys market penetration

- Increase in packaging material costs, impacting the

Companys profit margins

- Changes in regulatory compliances, impacting the Companys business plans Growth drivers (opportunities) in the upcoming year:

- Building distinctiveness to existing brands by addressing consumer needs

- Launching new products to cater to the evolving consumer needs across existing and new categories, harnessing The Amrutanjan Way

- Expansion of existing brands to weaker markets

- Distribution: Continuous improvement by setting specific annual milestones Scaling-up by setting specific targets during the appointment of distributors, super stockists, and sub Building the D2C channel

- Deploying specific growth plans to drive MT and e-Commerce

- Continuing to invest in brand-building, using mass media, digital channels, sampling, and merchandising

SEGMENT WISE PERFORMANCE

	2025-2026	2024-2025
OTC Products
Net Sales	32,831.73	29,002.99
Segment Results	8,344.36	6,557.17
Womens Hygiene &
Personal Care
Net Sales	13,990.66	12,396.25
Segment Results	(272.16)	(391.05)
Beverages
Net Sales	3,156.09	3,643.01
Segment Results	(634.86)	(243.56)
Capital Employed	36,491.80	32,350.29

Risk and Concern

A risk is a potential event or non-event, the occurrence or non-occurrence of which can adversely affect the objectives or strategy of the Company or result in opportunities being missed. Risk is measured in terms of the likelihood of occurrence and potential impact if it materializes. COVID-19 remains a potential risk, with any new variant potentially leading to hospitalizations and lockdowns, causing hardship for the population and disrupting the progress of the economic resurgence. The two greatest risks for the economy at this stage stem from inflationary pressures and supply-side concerns.

The unpredictable fluctuation in key raw material prices, risk of new product launches not panning out, supply chain disruptions, and major changes in government policies and regulations are some of the long-term risks associated with the business. At Amrutanjan, risks are classified under preventive, strategic, and external categories.

Risk Management

Risk management is a structured, consistent, and continuous process across the organization for identifying, assessing, and making decisions on responses to, and reporting on opportunities and threats that may affect the achievement of the Companys objectives. Risk management does not aim to eliminate risks, as that would simultaneously eliminate all chances of rewards or opportunities. Instead, constant efforts are made to analyze their potential impact, assess the changes to the risk environment, and define actions to mitigate any adverse impacts.

Amrutanjan Health Care Limited (AHCL) has implemented a risk management framework that ensures timely identification, analysis, and assessment of risks and potential consequences, formulation of specific mitigation strategies, and their seamless execution. The framework recognizes that risks are highly interconnected and interdependent. This evolved approach views risks within a coordinated and strategic framework, integrated throughout the organization.

The Risk Management Committee, which is chaired by the Chairman & Managing Director and comprises three Non-executive Directors, the CFO, and the COO, monitors organization-wide risk management activities and reports biannually to the Board of Directors.

The follow-up action is reverted on, with a timeline and status.

Statutory compliances are monitored through a fully automated compliance monitoring tool, and a quarterly compliance dashboard is presented to the Board.

The Company has also established an in-house Internal Audit wing, reporting to the Chairman and Managing Director (CMD) for conducting audits, internal checks on processes, and providing suggestions for further improvements in the areas audited. This team coordinates with the Internal Auditors to ensure the successful closure of their audit observations. The Internal Auditors have a free right to access all required information. The Audit Committee functions independently, with complete access to the Internal Auditors and Statutory Auditors.

The Audit Committee continues to monitor the effectiveness of internal control over the use of new technologies that impact the financial controls and reporting the risks.

Internal Control Systems and their Adequacy

The adequacy of the internal control systems and key processes is audited quarterly in selected areas by qualified external auditors and is reported to the Audit Committee.

Discussion on Financial Performance concerning Operational Performance

The Companys financial performance concerning operational performance can be enumerated below:

Financial Performance

Particulars	FY2026	FY2025	Growth%
Operations
Net Sales	50,167.77	45,050.54	11.36%
Other operating income	87.50	131.09
Revenue from Operations	50,255.27	45,181.63	11.23%
Cost of materials consumed	24,436.15	22,320.73
	48.62%	49.40%
Employee benefits expenses*	6,501.42	5,910.27
	12.94%	13.08%
Advertisement and Selling expenses	6,003.83	5,611.04
	11.95%	12.42%
Other expenses**	6,631.08	5,519.53
	13.19%	12.22%
Total Expenditures	43,572.48	39,361.57
Earnings before interest, tax, depreciation and amortisation	6,682.79	5,820.06	14.82%
(EBITDA)
EBITDA %	13.30%	12.88%
Depreciation and Amortisation	631.90	652.61
Operating Profit	6,050.89	5,167.45	17.10%
Operating Profit %	12.04%	11.44%
Other Income	1,757.39	1,767.87
Interest cost	19.50	21.92
Profit before tax	7,788.78	6,913.40	12.66%
Tax expenses	1,997.00	1,829.93
Profit After Tax	5,791.78	5,083.47	13.93%

*- Includes Impact on new Labour code reported under exceptional item - INR 125.17 lakhs **- Includes Lease rent reported under exceptional item - INR 760.50 lakhs

OTC - Gross Margin (%)

Information Technology

Our Go-Digital and Go-Global vision is the central theme for our digital transformation journey and adds value to AHCL customers and stakeholders alike.

SAP Enterprise processes support and control our core functions and all areas critical for our business. General IT control plays a pivotal role in ensuring that the system controls are maintained and followed diligently. During

FY2026, the SAP system processes for Manufacturing, Supply Chain and Logistics, and Financial Accounting were refined and aligned with the business goals.

Our transportation management module underwent improvements for further reduction of freight and transportation charges, and it was deployed across multiple AHCL locations. Many of the manual business processes were replaced with SAP automated controls, and we observed benefits in the overall business operations. Revalidating Segregation of Duties (SOD) ensured relevant user access control and authorisation. Disaster Recovery, Backup & Restoration, and maintaining Audit Trails were some of the priority activities of IT.

Sales Force Automation (SFA) is one of the key foundation pillars, and we are committed to continuously improving the same. We completed the implementation of the SFA for Modern Trade.

We successfully implemented the Distributor Management

System (DMS) for more than 387 distributors, significantly enhancing distributor engagement and operational visibility.

In FY2027, we plan to expand the platform to cover 400 distributors, further strengthening our sales and distribution network.

We are in constant vigilance of the internal and external threats and risks to Information systems. We continue to assess AHCLs security posture as information security continues to be our priority. We conducted Vulnerability and Penetration Testing (VAPT) of our environment, network, and applications. Regular security awareness training was conducted to ensure AHCL users are aware of phishing and other social security threats and act appropriately.

With the deployment of various state-of-the-art defensive mechanisms like BitLocker, Endpoint Detection and

Response (EDR), the latest firewall, log analysers, and other partner tools, we were successful in minimising our risk exposure.

Information security requires continuous improvement, and we are continuously modernising our systems to ensure we provide a safe and secure environment for our employees and our customers.

Ongoing Initiatives

We have implemented a cloud email solution in AHCL, and several strategic digital transformation initiatives are currently underway. The implementation of SAP Payroll and the Travel & Reimbursement Automation solution is progressing as planned and is expected to be completed during FY2027.

The Company accelerated its digitisation initiatives at the Comfy Plant as part of its strategic vision to enhance operational efficiency, strengthen process governance, and support sustainable business growth. Key initiatives include the implementation of digital solutions across manufacturing, supply chain, quality, finance, and human resources, enabling standardised processes, improved data accuracy, enhanced operational visibility, and faster decision-making. The ongoing adoption of integrated digital platforms and automation is expected to reduce manual interventions, improve productivity, strengthen compliance, and establish a scalable digital foundation to support future business expansion and continuous operational excellence. The Company plans to complete these digitisation initiatives during FY2027.

Human Capital:

At AHCL, our philosophy of Building Brand and Building People continues to guide our people practices and priorities. Over the past year, the Human Resources function has strengthened its focus on driving a high-performance culture by enhancing employee experience, digitising key processes, and aligning talent strategies closely with business objectives.

During the year, we have made significant progress in creating a more agile and responsive HR ecosystem. With a strong emphasis on simplification and speed, several process improvements have been implemented to enable faster decision-making and seamless execution across functions and divisions.

Our commitment to attracting, developing, and retaining high-quality talent remains steadfast. We have further strengthened our talent acquisition strategies to bring in the right capabilities while continuing to invest in building internal talent pipelines. Focused learning and development initiatives, coupled with structured career progression opportunities, have enabled employees to enhance their skills and take on larger responsibilities.

Employee engagement and rewards & recognition have been a key area of focus, with initiatives designed to foster collaboration, inclusion, and a strong sense of belonging. We continue to create platforms for employees to voice their ideas, contribute meaningfully, and align their aspirations with organisational goals.

The Company remains committed to recognising and rewarding performance, ensuring that high performers are provided with differentiated growth opportunities. Our leadership team actively engages with employees to promote a culture of transparency, innovation, and continuous improvement.

As we move forward, our diverse and capable workforce will continue to be the cornerstone of our success. By nurturing talent, strengthening capabilities, and fostering an inclusive and performance-driven environment, we are confident of sustaining our growth momentum and delivering long-term value.

Age Analysis:

The following analysis demonstrates that our Company is dominated by the Age group between 30-39 years constitutes to 36% of the total strength of 661 employees of the company. There are 114 employees who are aged above 50 years and constitute 17% of the total employees.

Performance Management System:

The Companys Performance Management System (PMS) continues to be effectively enabled through our HRMS platform, Darwinbox, further strengthening transparency, consistency, and accessibility across the organisation. Over the past year, continued refinements have been made enhance user experience and reinforce the credibility of the system among employees.

The PMS framework supports structured goal setting, ongoing performance tracking, and periodic reviews, thereby fostering a culture of accountability and continuous improvement. The system ensures clarity in expectations and provides employees with greater visibility into their performance outcomes.

It also enables the management to objectively identify high performers and employees requiring additional development support, facilitating a differentiated approach towards performance evaluation, rewards, and recognition.

By aligning individual performance with organisational goals, the PMS plays a critical role in driving business outcomes. The Company remains committed to further strengthening the system to ensure it remains robust, fair, and aligned with evolving organisational priorities.

Learning and Development:

The Company continues to follow a structured approach in identifying learning and development needs through performance reviews and ongoing interactions with department and team leaders. This ensures that capability-building initiatives remain aligned with both individual development goals and organisational priorities.

With a diverse workforce, the Company places strong emphasis on reinforcing a common value system and culture. During the year, focused training interventions were organised with internal and external training resources in the field of GMP, Sales capability enhancement and managerial & leadership development. To strengthen good governance, programs were conducted on Codes of Conduct as refresher programs and mandatory awareness sessions on POSH across the organisation. We apply both classroom and digital platforms to impact these training interventions.

A key area of focus continues to be the sales force. During the year, customised learning programs were rolled out across India in collaboration with external experts to strengthen frontline capabilities in product knowledge and advanced selling skills. These programs were designed to enhance selling effectiveness, improve productivity, and refine the working approach of our sales teams.

The Company remains committed to building a continuous learning culture by providing employees with relevant opportunities to upgrade their skills and competencies, thereby enabling them to contribute more effectively to business growth.

Occupational Health and Safety:

The Company remains committed to maintaining the highest standards of occupational health and safety across all its operations. During the year, all manufacturing plants continued to demonstrate strong safety performance, with zero fatalities reported.

Environment, Health and Safety (EHS) practices are closely monitored by the management team, with a strong focus on prevention, risk mitigation, and continuous improvement. Necessary measures and safeguards are consistently implemented to ensure a safe and healthy working environment for all employees.

The Company continues to reinforce safety awareness through regular monitoring, adherence to established protocols, and a proactive approach towards employee well-being, thereby fostering a culture of safety across the organisation.

Leadership and Succession Planning:

The Company continues to strengthen its leadership pipeline with a clear focus on building a future-ready talent pool that can drive sustained growth and organisational excellence. During the year, efforts were made to further enhance leadership capabilities through a mix of strategic hiring at senior levels and focused development of internal talent, ensuring strong person organisation fit.

Leadership development remains a key priority, with a range of structured interventions conducted both in-house and in collaboration with reputed external institutions. These programs are designed to enhance strategic thinking, decision-making, and people leadership capabilities across levels.

As part of our succession planning framework, high-potential employees have been systematically identified and are being nurtured through targeted development initiatives. The Company continues to invest in structured leadership and strategic learning programs in association with renowned institutions, aimed at grooming future leaders and ensuring continuity in critical roles.

Through these initiatives, we are building a robust leadership bench strength that will support the Companys long-term growth ambitions while fostering a culture of accountability, innovation, and excellence.

Employee Engagement:

The Company focus on employee engagement by fostering a culture of open communication and continuous feedback. During the year, regular Pulse Surveys were conducted, enabling more timely insights into employee sentiment.

These structured feedback mechanisms have helped the Company better understand employee perspectives and identify key areas of improvement. The insights derived have been instrumental in designing targeted interventions to enhance the overall work environment, organisational culture, and internal processes.

The Company remains committed to acting on employee feedback and creating a more inclusive, responsive, and engaging workplace. The Pulse Survey scores over the years reflect the progress made in strengthening employee engagement and are presented graphically below.

We had also organised workplace engagement activities, wellness programs like sessions on mental health and wellbeing, Health Programs for women about balancing work and personal front and annual tours for employees. Automated routine tasks of HR processes to bring more efficiency and speed through our HRMS Darwinbox.

Established regular discussion loops with new employees through Program Konnect to share HR services, policies and get feedback while settling down. Periodic "Town hall" meetings with employees across the level contributes more cohesive work culture, transparency, identifying areas of improvements and sharing feedback. Initiated moonlighting evaluations to identify any moonlighting prospects which might affect working conditions.

RELATIONSHIP WITH UNION

The Company believes in placing strong emphasis on maintaining harmonious industrial relations and fostering a collaborative work environment. AHCL enjoys a cordial and constructive relationship with its affiliated union,

Amrutanjan Health Care Limited Employees Union. During the year, the management has actively engaged with union representatives on matters relating to employee welfare and industrial relations. A structured approach of open communication and mutual consultation has been followed, ensuring that all relevant issues are discussed transparently and resolved amicably.

The Company remains committed to building trust and strengthening this relationship by proactively involving union representatives in key discussions, thereby minimising potential conflicts and promoting a stable and positive workplace environment.

REWARDS AND RECOGNITION

The Company always pays attention to the Rewards and Recognition framework with a focus on driving performance, motivation, and employee engagement.

During the year, incentive programs were further refined to align with evolving business priorities, particularly to motivate the sales force towards achieving their targets and delivering superior results. We had also framed a structured reward and recognition program apart from our incentive program, keeping in view the business priorities of our sales employees growth and development.

The performance-linked incentive structure remains a key component of our total rewards philosophy, with a well-balanced design that links payouts to the Companys performance, departmental outcomes, and individual contributions. This integrated approach ensures that performance is recognised holistically, fostering a strong alignment between employee efforts and organisational success.

In addition, the Company continues to recognise and celebrate long service through structured reward programs, reinforcing employee commitment and encouraging long-term association with the organisation.

Our continued focus is on enabling employees to perform at their best through meaningful recognition, fair reward practices, and ongoing enhancements to our HR interventions. As the organisation evolves, these practices will be further strengthened to support business growth and sustain a high-performance culture.

AHCL remains well-positioned for future growth, supported by progressive human resource strategies that are closely aligned with the Companys business objectives and evolving workforce needs.

NEW WAGE CODE:

The Company is closely aligned with the evolving regulatory framework under the Code on Wages, 2019, which is part of the Government of Indias labour law reforms aimed at simplifying and standardising wage-related legislation. The Codes seek to bring greater clarity and uniformity in the definition of wages, ensure timely payment, and promote transparency and compliance across organisations.

During the year, the Company undertook a comprehensive review of its compensation structures and payroll practices to assess alignment with the provisions of the Codes and readiness for implementation. Necessary evaluations were carried out to ensure that wage definitions, components of remuneration, and statutory compliance are in line with the prescribed guidelines.

The transition towards the new wage framework is being approached in a structured and compliant manner, with a focus on minimising impact on employees while ensuring adherence to regulatory requirements. The Company continues to monitor developments and implementation timelines notified by the authorities and remains prepared to adopt the changes as and when they come into effect.

Through these efforts, the Company reaffirms its commitment to fair compensation practices, statutory compliance, and transparent governance, while safeguarding employee interests.

MOONLIGHTING EVALUATION:

The Company has initiated a structured approach towards evaluating moonlighting practices to ensure alignment with organisational policies and business interests. These assessments are aimed at proactively identifying any external engagements that may potentially impact employee productivity, performance, or conflict with the

Companys code of conduct.

A balanced and transparent framework is being followed to review such cases, with due consideration to employee responsibilities, confidentiality obligations, and overall organisational impact. The objective is to maintain fairness while safeguarding the Companys interests.

Details of significant changes in key financial and return on net worth

In compliance with the SEBI (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018, the company is required to provide details of significant changes (change of 25% or more as compared to the immediately previous financial year) in key sector-specific financial ratios.

Given below are the key financial ratios identified by

Company including return on net worth:

Particulars	FY2026	FY2025
Debtors Turnover Ratio	8.63	8.71
Inventory Turnover Ratio	15.56	16.09
Interest Coverage Ratio	NA	NA
Current Ratio*	2.31	3.44
Debt-equity Ratio	NA	NA
Operating Profit	12.04%	11.44%
Margin (%)
Net Profit Margin (%)	11.52%	11.25%
Return on Net Worth (%)	15.64%	15.56%

*The variance is primarily on account of incremental payable for the Capex project and Provision created for exceptional items.

Formulas used for the calculation of the ratios:

Ratio	Formula
Debtors Turnover Ratio	Revenue from operations/ Average of opening and closing trade receivables
Inventory Turnover Ratio	Revenue from operations/ Average of opening and closing inventory
Current Ratio	Current assets / Current liabilities
Operating Profit Margin (%)	Earnings before interest and tax/ Revenue from operations
Net Profit Margin (%)	Profit after tax / Revenue from operations
Return on Net Worth (%)	Profit after tax / Equity

Outlook

The Indian FMCG industry is poised for steady growth in FY2027, supported by a resilient domestic economy, improving rural consumption, and a gradual recovery in discretionary spending. While inflationary pressures in key commodity categories have moderated, stable pricing and continued demand for essentials are expected to sustain momentum. Rural markets, which have consistently outpaced urban growth in recent quarters, are likely to remain the primary growth driver, aided by higher agricultural output, government-led rural development programs, and improving income levels.

Urban markets are projected to witness moderate but steady expansion, with premiumisation, health & wellness trends, and digital commerce adoption shaping consumption patterns. E-commerce and quick commerce channels are expected to deliver high growth, enhancing product accessibility and convenience for consumers. Traditional trade will continue to dominate the distribution landscape, while modern trade formats will strengthen their contribution in urban centres.

Category growth will be supported by innovations in smaller, affordable packs to drive penetration. The integration of digital marketing, data-led consumer insights, and localised product strategies will be key enablers for sustaining growth. theTo summarise, the following will be the growth enablers to drive growth:

- Rural penetration

- Product affordability

- Format innovation

- Omni-channel engagement

Cautionary Statement

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, and expectations may be forward-looking within the ambit of applicable laws and regulations. Actual results, performance, and achievements might differ substantially or materially from those expressed or implied. The Companys performance could also be affected due to the failure of the monsoon, which in turn may increase the input costs, major political and economic changes in India, and changes in applicable laws.