Amrutanjan Health Care Ltd Management Discussions

Indian Economy

The Indian economy maintained its position as one of the fastest-growing major economies in the world during FY2025, recording a real GDP growth of 6.5% and nominal GDP growth of 9.8%. Growth momentum was particularly strong in the final quarter, with GDP expanding by 7.4%, supported by robust private consumption and government capital expenditure.

Macro indicators of the Indian economy

• Index of Industrial Production (IIP): Industrial activity, measured by the Index of Industrial Production (IIP), expanded by 4.0% during FY2025, a marked slowdown from the 5.9% growth recorded in FY2024. The slowdown was broad-based, with notable weakness in sectors such as mining and manufacturing. Consumer non-durables, in particular, experienced contraction, even as capital goods and infrastructure goods maintained relatively higher growth rates.

• Retail Inflation: Indias fiscal year 2024-25 witnessed a noteworthy decline in retail inflation, culminating in historically low levels that benefited the households. In March 2025, the CPI stood at 3.34% year-on-year, the lowest since August 2019. Food inflation, based on the Consumer Food Price Index (CFPI), moderated to 2.69%.

• Wholesale Price Index (WPI): During FY2025, Indias Wholesale Price Index (WPI) reflected a sustained moderation in wholesale inflation, driven by easing food, fuel, and manufactured goods prices. The Wholesale Price Index (WPI) inflation for March 2025 (year-on- year) stood at 2.05%, marking a decline from 2.38% in February 2025.

Indian FMCG Industry

In the MAT March 2025 period, the Indian FMCG industry recorded 7.5% growth, comprising 2.9% price growth and 4.4% volume growth. While this performance was slightly subdued compared to the previous year (7.5% vs. 8.5%), price-led growth in FY2025 was notably higher than in MAT March 2024.

The industry showcased remarkable resilience in Q4 FY2025, delivering 11% value growth compared to the same quarter in the previous year, its highest quarterly growth of the year. Notably, the sectors unit growth outpaced its volume growth during the quarter, reflecting strong consumer demand through smaller pack sizes.

Rural markets remained the primary growth driver, outperforming urban markets for the fourth consecutive quarter. In Q4 FY2025, rural growth was around three times faster than urban growth, where consumption continued to soften.

From a channel perspective, traditional trade, which accounts for nearly 90% of the FMCG market, continued to be the key growth engine, especially in the last two quarters of the fiscal year, underscoring its enduring relevance in reaching the Indian consumer.

Source: Nielsen IQ

Indian Consumer Healthcare Industry

The Indian Consumer Health (CH) market is valued at $14bn, growing at 2.5x the global CAGR, OTC being the largest contributor (around 60%), followed by nutrition, personal care, and patient care categories.

The forecast for 2028 is that the Indian OTC market is expected to grow nearly twice the Global consumer health market and is expected to gain 1% share of the global consumer health market and 3% within APAC (4% global share and 14% in APAC in 2023)

Source : IQVIA

The Indian Consumer Healthcare (CHC) industry continued its robust growth trajectory in FY2025, supported by increasing consumer awareness, expanding product accessibility, and a rising preference for preventive and self-care solutions. According to IQVIA, the CHC market sustained healthy momentum, driven by heightened demand in categories such as pain management, digestive health, immunity boosters, and wellness supplements.

Urbanization, rising disposable incomes, and a shift in lifestyle patterns have further propelled category penetration, with millennials and Gen Z emerging as key adopters of health and wellness products. The post-pandemic focus on preventive healthcare has also strengthened the industrys fundamentals, with consumers increasingly seeking OTC (over-the-counter) solutions and Ayurvedic/herbal alternatives for everyday health concerns.

From a distribution perspective, the industry benefited from omnichannel expansion, which combined the reach of traditional retail with the convenience of e-commerce and quick commerce platforms, witnessing rapid adoption across both metro and non-metro markets. Rural markets, aided by improved supply chain penetration and targeted awareness programs, contributed meaningfully to volume growth.

Key growth drivers in FY2025 included

• Increased health consciousness and awareness of preventive care.

• Wider retail availability and deeper rural penetration.

• Digital commerce acceleration, enabling anytime access to CHC products.

• Category innovation in formats, dosage convenience, and herbal formulations.

• Affordability-driven adoption, with smaller pack sizes catering to value-conscious consumers.

With rising healthcare costs and a growing focus on selfmedication for minor ailments, the Indian CHC industry remains well-positioned for sustained double-digit growth in the coming years, supported by favourable demographics, policy support, and evolving consumer preferences.

Category Overview

In FY2025, the Rs7,643 crore rubefacients category delivered double-digit value growth, with volumes rising to twice the previous years level, recording the second-highest growth in six years after the COVID-19 surge in FY2022. This growth is firmly consumption-driven, signalling a return to sustainable trends.

AHCL outperformed leading competitors, achieving superior volume growth and a significant increase in both value and volume over FY2024.

The Head segment grew to Rs1,933 crore from Rs1,774 crore, while the Body Ache segment reached Rs3,796 crore with healthy double-digit value growth. Despite a smaller base in Body Ache, AHCLs volume growth was multiple times the category average across all quarters. Strong secondary growth in both Headache and Body Ache segments contributed to an overall uplift in primary sales.

Company Overview

Over-the-Counter (OTC) Business Performance

In FY2025, the Companys Over-the-Counter (OTC) segment delivered gross sales of Rs462.48 crore, reinforcing its position as a key driver of overall performance. General Trade (GT) continued to be the dominant contributor, accounting for 84.6% of OTC turnover and registering a healthy 8.0% growth over FY2024. This growth was underpinned by a strong revival in the Headache category, with momentum largely driven by the Chemists channel. Notably, Amrutanjan Headache outperformed the overall category growth in value terms within this channel, a testament to the brands enduring consumer trust, visibility, and preference.

In parallel, the Companys sustained investments in Modern Trade (MT) and E-Commerce yielded measurable results, with both channels increasing their contribution in OTC sales. These emerging channels not only provided incremental revenue streams but also expanded the Companys reach to evolving consumer segments and shopping formats.

Category-Wise Performance

The Headache segment remained the cornerstone of AHCLs domestic sales in FY2025, contributing Rs261.89 crore, which represents 57.6% of the total domestic revenue of Rs454.29 crore. While the segment maintained its leadership position, its share witnessed a marginal dip due to accelerated growth in other categories, reflecting the Companys strategic intent to broaden its portfolio.

The Womens Hygiene category recorded robust performance, with its revenue contribution increasing from 26% to 28% of domestic sales. This growth was driven by the flagship brand Comfy, which maintained its position as the second-largest contributor to the Companys portfolio. Comfy achieved an 18% year-on-year growth, with revenues rising to Rs127.79 crore from Rs108.24 crore in FY2024, underscoring its brand strength and category relevance.

The Body category emerged as the third-largest segment within the OTC business, posting sales of Rs43.62 crore in FY2025. Its contribution to domestic revenue improved slightly from 9.2% to 9.6%, supported by steady consumer demand and increasing category acceptance.

The OTC business continues to benefit from AHCLs multi-brand, multi-category strategy, which balances the strength of its legacy Headache portfolio with emerging high-growth segments such as Womens Hygiene and Body Care. Strategic channel development, especially in MT and E-Commerce, is expected to further enhance penetration, category reach, and revenue diversification in the coming years.

Pain Management

Integrated Marketing Communication (IMC) Strategy

In line with its commitment to strengthening the pain management portfolio, AHCL implemented a comprehensive Integrated Marketing Communication (IMC) plan. This multi-channel approach leveraged television, print, in-shop branding, digital platforms, and large- scale sampling to extend brand reach and drive consumer engagement. The overarching objective was to highlight the superior efficacy of the Companys pain management solutions, thereby driving consideration and trials.

Brand Communication - ‘Har Dard Mitaye Campaign

During the year, AHCL developed a new communication idea for the Amrutanjan mother brand and launched the television campaign ‘Har Dard Mitaye. Purpose-led and emotionally resonant, the TVC celebrated the power of simple acts of kindness, portraying relatable scenarios where individuals endure physical discomfort to help others. The campaign was rolled out across key states, marking one of the highest media investments ever for the brand.

High-Impact Media & On-Ground Activations

To amplify the ‘Har Dard Mitaye campaign, AHCL executed high-impact marketing interventions across television and on-ground platforms.

Key initiatives included

• Strategic Delhi Metro Branding for Amrutanjan Faster Relaxation Roll-on (AFRR), generating high daily impressions among urban commuters.

• Prime-Time Television Partnerships with high-TRP reality shows such as Ishmart Jodi and Bigg Boss, ensuring maximum audience reach.

• Auto Branding in key states to maintain strong local visibility.

Consumer Engagement through Sampling

Product sampling remained a cornerstone of AHCLs consumer engagement strategy, enabling first-hand experience of its product efficacy and quality. Large-scale sampling initiatives were undertaken across:

• High footfall public areas

• Religious and pilgrimage sites

• Gated residential communities

• IT parks, targeting working professionals

Through these initiatives, the Company reached approximately 4 lakh consumers during the year, driving trial, strengthening recall, and fostering long-term brand adoption.

Visibility: Strengthening In-Store Presence

As part of its ongoing efforts to enhance brand presence at the retail level, AHCL strategically deployed Point-of-Sale Materials (POSM) across the country.

A focused initiative was undertaken to promote extra power balm (yellow balm), supported by the installation of high- visibility displays in high-footfall retail outlets. These striking displays effectively drew consumer attention at the point of purchase, reinforced brand identity, and maximized impact in the competitive retail environment. This initiative played a key role in driving engagement and boosting offtake at the store level.

Grocer Channel Expansion: Amrutanjan Faster Relaxation Roll-On

In line with its strategic objective to deepen penetration in lower-town classes, AHCL intensified its focus on the grocer channel for Amrutanjan Faster Relaxation Roll-On (AFRR). Recognising the need for affordable, accessible solutions for this consumer segment, the Company introduced a 2.5 ml low unit pack to drive trials.

The new pack was launched in a hanger format, improving on-shelf visibility and facilitating impulse purchase at the retail level.

Rural Van Operations: Expanding Rural Reach

In alignment with Amrutanjans strategic objective of enhancing rural market penetration, the Company launched targeted van operations across key states — Tamil Nadu, Andhra Pradesh, Telangana, and Jharkhand.

Through this outreach, approximately 1,000 villages were successfully reached, introducing the Amrutanjan product range to previously untapped rural consumers. These villages are now slated for transition into regular coverage areas, ensuring sustained presence and longterm engagement.

As a direct outcome of these initiatives, the Pain Management category witnessed notable growth in rural markets, with its contribution to overall AHCL revenues increasing in FY2025, underscoring the effectiveness of this targeted rural expansion.

All these integrated efforts enhanced brand recall, deepened consumer connection, and reinforced AHCLs leadership in the pain management category.

Womens Hygiene

Market Landscape & Opportunity

Menstrual hygiene remains a critical public health and social development issue in India. With an estimated category penetration of only 46%, and usage heavily concentrated in urban areas, more than half of women, particularly in rural India, still rely on unhygienic alternatives due to limited access, affordability barriers, and low awareness about the benefits of sanitary napkins.

This structural gap presents a significant long-term growth opportunity for affordable, quality sanitary napkins that can reach underserved markets.

Brand Performance: Comfy Sanitary Napkins

Amrutanjans flagship brand in womens hygiene, Comfy, continues to bridge this gap by offering affordable, high- quality menstrual hygiene solutions tailored to the needs of rural and lower-income urban consumers.

Key Highlights

• Retail reach: ~5 lakh outlets, with rural accounting for 60% of distribution.

• Sales growth: +18% YoY, driven by strong penetration gains.

• Variant performance: XL variant up 59%, reflecting consumer preference for longer pads.

• Brand health metrics: Awareness, consideration, and usage all recorded notable year-on-year improvements.

These results reaffirm Comfys positioning as a high-impact, inclusive brand, contributing to both category expansion and womens health outcomes.

Strategic Marketing & Consumer Engagement

Brand Building

• Continued partnership with Shraddha Kapoor as brand ambassador, amplifying the ‘The Power to Be You campaign in a fresh, modern voice.

• Regional marketing activation in Tamil Nadu with a popular local celebrity to deepen cultural resonance.

• Project Disha (5^th consecutive year): On-ground awareness and sampling across Tamil Nadu, Jharkhand, Uttar Pradesh, and Madhya Pradesh.

• Impact: Over 1.5 lakh students reached through menstrual hygiene education sessions and product trials, driving long-term behaviour change.

Innovation & Product Diversification

Recognising the widespread reliance on oral medication for menstrual pain - often with side effects, Amrutanjan launched the Comfy Period Pain Relief Roll-On:

• Ayurvedic, side-effect-free, topical solution—the first of its kind in India.

• Awareness driven through targeted college outreach in Chennai and Bangalore, in partnership with qualified gynaecologists.

• Reach: ~20,000 students engaged through product education and sampling.

• This innovation extends Comfys relevance beyond hygiene into holistic period care.

Visibility & Last-Mile Reach

To strengthen market presence and ensure availability in underserved regions:

• In-store activations and POS visibility tools (including product hangers) boosted retail enquiries and brand recall.

• Rural Van Program launched in Andhra Pradesh & Telangana to expand retail coverage, enhance availability, and deepen penetration in untapped geographies.

Outlook

With category penetration in India still under 50%, the long-term growth potential remains structurally attractive. Amrutanjans strategy for Comfy is anchored on:

1. Rural-first distribution expansion.

2. Sustained education-led adoption programs.

3. Product innovation addressing holistic menstrual needs.

These pillars will continue to drive both commercial growth and positive social impact, reinforcing Amrutanjans position as a trusted partner in womens health.

Rehydration Category: Electro+

Market Context and Health Relevance

The increasing impact of global warming characterized by rising temperatures and extreme weather events, has heightened the public health risks associated with dehydration and heat stress. Loss of fluids and electrolytes, particularly under high-heat conditions, can lead to a range of adverse health outcomes, including cognitive dysfunction, fatigue, malnutrition, chronic kidney disease, and heatstroke.

Despite growing awareness, the penetration of rehydration solutions in India remains low. Additionally, consumer confusion between WHO-formulated Oral Rehydration Salts (ORS) and rehydration beverages continues to pose a challenge, underscoring the need for sustained education on appropriate hydration solutions.

Product Proposition

Amrutanjan Electro+ is designed as a comprehensive rehydration solution to address these evolving health challenges. Each 200 ml bottle delivers a scientifically balanced blend of electrolytes, glucose, and Vitamin C, meeting 50% of the recommended daily allowance of Vitamin C. Uniquely formulated with a real fruit juice base, Electro+ is available in Apple, Orange, and Lemon flavors, offering both functionality and consumer appeal for everyday hydration needs.

Portfolio Expansion: Addressing Both General and Therapeutic Hydration Needs

AHCL expanded the Electro+ portfolio to address hydration requirements across usage occasions:

WHO-recommended ORS Formula introduced in two convenient formats:

• Tetra Pack - Ready-to-drink solution in apple and orange flavours for quick, on-the-go rehydration.

• Powder Format - Orange flavour for flexible home preparation and dosage control, particularly in medical or recovery settings.

This expansion enables Electro+ to cater to both general lifestyle hydration and therapeutic needs, reinforcing its positioning as a holistic rehydration brand.

Affordability and Accessibility

In line with AHCLs mission of wellness accessibility, the Company introduced Electro+ in a 160 ml pack at Rs25, available in apple and orange flavours. This strategic pricing was aimed at expanding penetration in smaller towns and making premium-quality hydration solutions available to a broader demographic.

Marketing and Consumer Education Television Campaign

The Electro+ TV campaign featuring cricketer Ruturaj Gaikwad continued in FY2025, leveraging his strong connection with youth and sports audiences to enhance brand visibility and credibility.

IPL Digital Activation

For the first time, AHCL executed an IPL-linked digital campaign for Electro+, using Ruturaj Gaikwads association to amplify brand reach. The initiative utilized digital platforms and connected TV to target younger, digitally engaged consumers, significantly strengthening brand awareness.

Consumer Engagement Through Sampling

Sampling remained central to the consumer outreach strategy of Electro+:

• On-ground educational and sampling drives were conducted in Tamil Nadu, Delhi, Maharashtra, Andhra Pradesh, Telangana, Bihar, Uttar Pradesh, Odisha, and West Bengal.

• Sports partnerships were leveraged, including Official Tour Partner status for the Professional Golf Tour of India (PGTI), enabling on-site sampling across multiple events.

• Marathon participation provided natural synergies with hydration and wellness themes.

In total, 1.4 lakh consumers experienced Electro+ through these targeted sampling initiatives.

Visibility Initiatives

To deepen consumer connection at the point of purchase, AHCL rolled out in-store visibility campaigns integrating Ruturaj Gaikwads association across key retail formats.

Additionally, dedicated visibility interventions for new product formats were deployed in all launch states, ensuring consistent brand presence across both urban and semi-urban markets.

Through portfolio diversification, competitive pricing, strategic marketing, and high-intensity sampling, Electro+ strengthened its market position in FY2025, driving higher brand consideration and expanding its consumer base across both general and therapeutic hydration segments.

Recognition & Awards

During the year, AHCL was felicitated by The Economic Times for the second consecutive year, reaffirming its position among the most trusted healthcare brands in India. This recognition was conferred after evaluating over 1,000 healthcare brands nationwide, underscoring the Companys consistent performance, strong consumer connect, and brand leadership in the pain management and wellness segment.

General Trade

AHCLs products are now available in 1.11 million retail outlets across India, reinforcing its commitment to accessibility and availability across town classes. Following network recalibration in the previous year, distribution for the Rubefacient and Headache Relief categories rebounded, contributing to overall footprint recovery.

Per Dealer Offtake (PDO), a key measure of sales velocity, remained ahead of the overall headache relief category for most of FY2025, highlighting strong consumer preference, repeat purchase, and the success of AHCLs retail engagement initiatives.

Modern Trade

The Modern Trade (MT) channel maintained its growth momentum in FY2025, achieving sales of Rs51.32 crore, up 15% over the previous year. Over the past 12 years, MT sales have grown more than eightfold, delivering a robust CAGR of 21.4%. This sustained performance underscores the effectiveness of AHCLs strategic initiatives and the rising consumer preference for its portfolio in modern retail formats. The Company remains focused on strengthening its presence in this high-potential channel by leveraging consumer insights, building collaborative retailer partnerships, and executing targeted activations.

Modern Trade Sales Trend

E-Commerce

The Company continued to scale its digital presence in FY2025, expanding availability across leading e-commerce platforms, including Amazon, Flipkart, Big Basket, Netmeds, PharmEasy, Reliance Jio Mart, MedPlus, Apollo, D-Mart Ready, Walmart Best Price (B2B), Metro B2B, Tata 1mg, City Mall, Wellness Forever, and Sasta Sundar.

A key milestone was the rapid expansion of the Quick Commerce (QCOM) channel through partnerships with Blinkit, Swiggy Instamart, and Zepto, enabling delivery within minutes and reinforcing the brands promise of ‘relief in 10 minutes.

E-commerce sales reached Rs9.39 crore in FY2025, marking 33% growth over FY2024, with QCOM sales growing 4x year-on-year, making it the Companys fastest- growing channel.

Exports

After a decline in FY2024, AHCLs export business rebounded strongly in FY2025, with sales of Rs8.19 crore, up 16.3% year-on-year. Africa continued to lead, contributing 68% of total export revenue, while the Middle East share has more than doubled during the year.

From a product lens, the Body segment emerged as the largest contributor at 55% of export sales, up from 42% in FY2024, surpassing the Head category. The Congestion segment also improved its share from 14.2% to 15.6%. This recovery reflects AHCLs sharpened focus on diversifying both its geographical footprint and category mix in international markets.

Manufacturing

Amrutanjan Health Care Limited is a historic brand in India, established in 1893, with a rich legacy of providing trusted and effective health care products. The Company has successfully expanded from its flagship pain balms to a diverse portfolio across pain management, congestion relief, beverages, and womens 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 1,700 MTe, we are well-equipped to meet market demands.

To reach internationally, we established a new Allopathic division with a cGMP-certified facility. This division specializes in manufacturing OTC monograph topical application products for export to the United States and other regulated markets. The facility has been carefully designed and installed to meet all cGMP guidelines.

In our beverage plant, we produce ready-to-serve fruit juices and fruit juices with electrolytes. We follow best practices according to the Food Safety Management Systems ISO 22000. The ‘Fruitnik brand, including ‘Electro+ Rehydrate drinks, marks the companys entry into the health and wellness beverage segment.

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.

Amrutanjan Health Care Limited 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 capitalize on the growing health and wellness market in India and aims to continue delivering value via innovation, strategic growth, and a steadfast dedication to quality.

Women Hygiene

In the womens hygiene category, Comfy sanitary napkins have shown strong momentum, delivered through a successful private label partnership. This initiative has propelled the brand to cross Rs130 crore in revenue in FY2025.

To meet anticipated market demand and ensure long-term scalability, we are now developing our dedicated state- of-the-art manufacturing plant for sanitary napkins at Hyderabad, planning to start commercial production by Q4 2025. This facility represents a pivotal step in securing in-house production capabilities and enhancing supply chain resilience.

The new Comfy unit will be equipped with high-speed, fully automated, next-generation machinery sourced from a globally reputed manufacturer. The plant will launch with an initial capacity of 2.5 million pads per day, with provision for future scale-up based on market needs.

This strategic investment not only supports our growth ambitions but also reinforces our commitment to delivering consistent, high-quality products. With greater control over manufacturing, we aim to strengthen margins, improve responsiveness to market dynamics, and elevate our competitive positioning in the womens hygiene space.

As we move forward, our focus remains on innovation, operational excellence, and creating long-term value for our consumers and stakeholders.

Purchase

In FY2025, our business is faced with many challenges with ongoing Russia Ukraine war coupled with many other global issues also for the material supply issues in many times.

During the entire year, the shipping delays also disrupted most of the imported materials supply chain. Also, the same got impacted due to very frequent geopolitical situations across the globe.

However, due to the favorable reduction in crude oil prices and unfavorable bullish forex rates, with our best procurement strategies applied in sourcing of essential oils, Menthol crystals, paraffin waxes and polymers resulted us a substantial savings of Rs425 lakh in FY2025.

Apart from the above, we had marginal cost impact in sourcing some of our raw materials like sugar, Glucose, Orange juice concentrates etc., for various domestic and international reasons.

Additionally, as a part of an ESG initiative, we had modified our one of the molds for the reduction the plastic consumption to the extent of 25 Te per annum.

We maintained the continual materials availability throughout the year to meet the production requirements with meticulous planning and excellent coordination with the vendors at all times. The inventories of all materials are very well maintained for uninterrupted production despite many fluctuations. This also resulted in the limited stockout situation and seamless flow of the materials.

Logistics

For FY2025, we worked towards optimising over all freight cost to the company. We could reduce the overall freight by optimising Comfys primary and secondary freight by carrying out the activities mentioned below.

• Reengineered comfy secondary carton to utilize the full capacity of the truck

• Increasing the number of packs in the secondary carton

• Long-term contracts and meticulous negotiation helped us to optimize the freight

Segment Wise Freight & Handling

(Rsin lakhs)

Segment	2024-2025	2023-2024
OTC
Net Sales	29,002.99	27,513.44
Freight & Handling Charges	889.91	823.08
	3.07%	2.99%
COMFY
Net Sales	12,396.25	10,525.88
Freight & Handling Charges	641.89	622.19
	5.18%	5.91%
BEVERAGES
Net Sales	3,643.01	3,998.11
Freight & Handling Charges	566.27	661.44
	15.54%	16.54%

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.

Amrutanjan Health Care Limited prioritizes 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 standardized 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 entails rigorous evaluation and continual monitoring of our suppliers and materials, as well as a keen focus on delivering the highest quality output 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.

Furthermore, we have recently inaugurated a cutting-edge 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 will be registered with the USFDA, enabling us to export these products to the USA and other nations.

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 at 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.

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 process supports and controls 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 FY2025, the SAP system process for Manufacturing, Supply Chain and Logistics, and Financial Accounting was 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 benefits we observed in the overall business operations. Revalidating Segregation of Duties (SOD) ensured relevant user access control and authorization. Disaster Recovery, Backup & Restoration and maintaining Audit Trails was ITs some of the priority activities. Proof of Delivery (ePOD) system went live and efforts are made to ensure that our stockiest confirms the timely receipt of goods and is also able to report any issues or concerns regarding supply which are noted and actioned immediately to address the specific concerns and promotes satisfaction.

Sales Force Automation (SFA) is one of the key foundation pillars and we are committed to continuously improve the same. We completed the implementation of the SFA for Modern Trade. We also completed the pilot deployment of Distributor Management System (DMS) across our distributors and stockists. User feedback from the DMS pilot has also been incorporated and the commercial deployment will be rolled out in due course.

We are in constant vigil of the internal and external threats and risks to Information systems. We continue to assess Amrutanjans security posture as information security continue to be our priority. We conducted Vulnerability and Penetration Testing (VAPT) of our environment, network, and applications. Regular security awareness trainings were conducted to ensure AHCL users are aware of the phishing and other social security threats and acts appropriately. With the deployment of various state-of-the-art defensive mechanisms like Bitlocker, End Point Detection (EDR), latest firewall, log analyzers and other partner tools, we were successful in minimizing our risk exposure. Information security requires continuous improvement and we are continuously modernizing our systems to ensure we provide a safe and secure environment for our employee and our customers.

Ongoing Initiatives

SAP Payroll and Travel and Reimbursement Automation is planned for the current year.

AHCL has formed a core team for exploring business goals and benefits which can be delivered through Artificial Intelligence (AI) and Machine Learning (ML) for our customers and stakeholders. We are in the process of training our employees and preparing the action plan for adoption of AI/ML in multiple areas like customer service, marketing, product design and operations.

Advanced Pain Management Centre

The Company has its Advanced Pain Management Centre (APMC) situated in Chennai, Tamil Nadu. The APMC is a distinguished hospital that has achieved certification from the National Accreditation Board for Hospitals & Healthcare Providers (NABH) under the Pre-Accreditation Entry-Level Standards for Small Healthcare Organizations (SHCO) for its non-surgical pain management services. Adhering strictly to NABH guidelines, APMC prioritizes patients safety, subjecting all procedures and processes to regular audits conducted by its in-house quality team.

During the last year, the APMC was shifted to Amrutanjans premises in Chennai, which is a more convenient location. It is dedicated to continuous research on novel and cutting- edge pain management techniques, offering world-class treatment standards. Thousands of patients continue to receive effective care in the APMC for their chronic pain conditions and have immensely benefited.

(b) 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 substockists

• 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

(c) SEGMENT WISE PERFORMANCE

(Rsin lakhs)

Segment	2024-2025	2023-2024
OTC
Net Sales	29,002.99	27,513.44
Segment Results	6,557.17	6,171.60
COMFY
Net Sales	12,396.25	10,525.88
Segment Results	(391.05)	(1,077.25)
BEVERAGES
Net Sales	3,643.01	3,998.11
Segment Results	(243.56)	101.56
Capital Employed	32,350.29	28,531.64

(e) 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.

(f) 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.

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.

(g) Discussion on Financial Performance concerning Operational Performance

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

Financial Performance

(Rsin lakhs)

Particulars	FY2025	FY2024	Growth%
Operations
Net Sales	45,050.54	42,012.06	7.23%
Other operating income	131.09	110.99
Revenue from Operations	45,181.63	42,123.05	7.26%
Cost of materials consumed	22,320.73	21,182.68
	49.40%	50.29%
Employee benefits expenses	5,910.27	4,769.36
	13.08%	11.32%
Advertisement and selling expenses	5,611.04	5,242.28
	12.42%	12.45%
Other expenses	5,519.53	5,747.60
	12.22%	13.64%
Total Expenditures	39,361.57	36,941.92
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)	5,820.06	5,181.13	12.33%
EBITDA %	12.88%	12.30%
Depreciation and Amortization	652.61	605.69
Operating Profit	5,167.45	4,575.44	12.94%
Operating Profit %	11.44%	10.86%
Other income	1,767.87	1,634.83
Interest cost	21.92	15.67
Profit Before Tax	6,913.40	6,194.60	11.60%
Tax expenses	1,829.93	1,697.34
Profit After Tax	5,083.47	4,497.26	13.03%

(h) Material Developments in Human Resources/Industrial Relations Front, including the Number of People Employed Human Capital

At Amrutanjan, we firmly believe in "Building the Brand & Building People." Over the past year, our Human Resources team has actively driven initiatives aimed at enhancing employee engagement, streamlining processes, and aligning HR practices with the companys strategic goals. Our focus remains on enabling our people to perform at their best by simplifying processes and accelerating execution.

We continue to prioritize attracting top talent while also nurturing and developing our in-house teams. A key objective is to retain high performers by offering unique growth opportunities, fostering a culture of learning, and providing a platform to showcase their potential.

Through the adoption of best HR practices and robust systems, we have implemented various talent management strategies that help us attract and retain skilled professionals. Our employees remain dedicated to achieving their individual goals, which in turn contribute to the overall success of the organization. This alignment empowers Amrutanjan to stay on course with its growth philosophy.

Our top management is deeply committed to engaging the workforce by introducing innovative ideas and practices that enhance productivity and foster continuous improvement. At the heart of our success lies our diverse, talented, and experienced workforce—our greatest strength in todays highly competitive landscape.

Age Analysis

The company workforce is predominantly composed of employees aged 30 to 39 years, who represent 39% of the total employees strength. This makes them the largest age group within the organization. Additionally, approximately 15% of the total workforce is aged above 50 years.

Performance Management System The Performance Management System (PMS) has been fully automated through our HRMS software - Darwinbox, ensuring greater transparency and consistency across the organization. This automation enhances trust in the system, enabling employees to view PMS at Amrutanjan as a robust and comprehensive framework.

The system empowers management to effectively identify high and low performers, ensuring that rewards and recognition are aligned with merit and performance, and that the right talent is acknowledged and nurtured.

Learning and Development

At Amrutanjan, we follow a systematic approach to identifying learning and development (L&D) needs. These are derived through performance reviews and in close consultation with function and department leaders, ensuring that development initiatives are aligned with both individual and organizational goals.

Given our culturally diverse workforce, we prioritize regular refresher training programs on the Code of Conduct to reinforce ethical standards across the organization. Additionally, mandatory POSH (Prevention of Sexual Harassment) awareness programs have been conducted both in-person and virtually, ensuring comprehensive coverage and compliance.

We have also rolled out training programs on:

• Good Manufacturing Practices (GMP)

• Sales enablement skills

• Managerial and leadership competencies

A key focus of our L&D strategy has been on enhancing the effectiveness of our sales force. We executed customized learning programs across India, facilitated by external experts, aimed at enhancing frontline employees selling skills and work habits. These programs were tailored to address real-time challenges and elevate overall performance in the field.

Occupational Health and Safety

All our manufacturing plants have consistently demonstrated a high level of safety performance, with zero fatalities reported during the year — a testament to our strong safety culture.

Our Environment, Health, and Safety (EHS) practices are closely monitored by the Management Team, ensuring that all necessary precautionary measures are in place to protect the health and well-being of our employees. We remain committed to maintaining a safe, secure, and compliant work environment across all locations.

Employee Stock Option Plan (ESOP):

Our company has successfully implemented the vesting and exercising of Employee Stock Option Plan 2020 (ESOP) to selected 26 employees . ESOP Phase - II was also implemented with 45 employees as part of the ESOP - Phase 2. This ESOP have greatly helped the management to retain their best talents.

Leadership and Succession Planning

To strengthen our leadership team and drive the next phase of growth and sustainability, we have strategically hired senior-level talent while ensuring a strong Person- Organization fit.

The management is committed to building a future-ready leadership pipeline by investing in leadership development programs, conducted both in-house and through external sponsorships. These initiatives aim to continuously enhance leadership capabilities through structured interventions and proven methodologies.

As part of our succession planning strategy, we have identified high-potential employees and launched a Leadership and Strategic Development Program in collaboration with a renowned university. This initiative is designed to groom and prepare future leaders to take on critical roles, ensuring long-term organizational continuity and success.

Employee Engagement

We have strengthened our employee engagement initiatives by implementing regular “Pulse Surveys”, transitioning from an annual to a bi-annual survey model. This more frequent feedback mechanism enables us to capture realtime insights and take proactive steps to enhance the work environment.

The feedback collected through these surveys supports the development of targeted strategies and interventions aimed at improving our work culture, systems, and processes.

The Pulse Survey scores over the years are illustrated in the graph below, reflecting our ongoing commitment to listening, adapting, and growing with our people.

Employee Engagement Survey - Over the Years

We have continued to enhance employee engagement through a series of meaningful initiatives aimed at building a connected, transparent, and supportive workplace culture.

Key highlights include:

• Workplace Engagement Activities & Wellness Programs: Regular engagement initiatives, wellness drives, and annual tours have been executed to promote employee well-being, work-life balance, and camaraderie across teams.

• Human Rights Policy Implementation: We have developed and implemented formal policies on Human Rights, reinforcing our commitment to ethical practices and respectful workplace behavior.

• HR Process Automation: Routine HR processes have been automated through our HRMS - Darwinbox Application, significantly improving operational efficiency, speed, and accuracy.

• “Program Konnect” - New Employee Integration: We established regular discussion loops with new employees under “Program Konnect” to help them understand HR services, address concerns early, and identify potential areas for process improvement.

• Town Hall Meetings: Periodic town halls with employees across all levels promote a cohesive culture, ensure transparency, and encourage open feedback sharing between leadership and teams.

• Moonlighting Evaluations: We have initiated moonlighting assessments to proactively identify and address any external engagements that could potentially impact employee productivity or violate organizational policies.

These initiatives reflect our ongoing commitment to employee-centric practices, fostering a workplace that values openness, well-being, and continuous improvement.

Relationship with the Union

Amrutanjan places strong emphasis on maintaining positive employee relations and shares a healthy, collaborative relationship with its affiliated union — the Amrutanjan Health Care Limited Employees Union. The company enjoys a cordial and constructive rapport with the Union, and representatives are regularly engaged in discussions on industrial relations (IR) matters. By fostering open communication and mutual respect, potential conflicts are proactively addressed and resolved amicably, ensuring harmony between the Union and management.

Rewards and Recognition

The company continuously updates its incentive programs to motivate the sales force in achieving their goals and to duly reward their efforts. We have implemented a dynamic variable pay policy that evaluates performance at multiple levels — company-wide, departmental, and individual — to determine the disbursement of variable pay. This approach ensures a mutually beneficial relationship, where both the organization and employees gain from strong individual performance.

Long service and loyalty are highly valued at Amrutanjan, with employees being recognized and rewarded appropriately for their dedication. Such recognition encourages employees to build long-term careers within the organization.

Our goal is to empower employees to perform at their best through effective interventions and evolving methods. Organizational transformation is a continuous process aimed at maintaining relevance and driving sustained business growth. With forward-looking human resource strategies and practices aligned closely with business needs, Amrutanjan is well-positioned for significant growth in the years ahead.

(i) Details of significant changes in key financial ratios 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 the Company including return on net worth:

Particulars	FY2025	FY2024
Debtors Turnover Ratio	8.71
10.41
Inventory Turnover Ratio	16.09	14.59
Interest Coverage ratio	NA	NA
Current ratio	3.44	4.23
Debt-equity ratio	NA	NA
Operating profit margin (%)	11.44%	10.86%
Net profit margin (%)	11.25%	10.68%
Return on net worth (%)	15.56%	15.59%

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 (%)	Profit 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 FY 2025-26, 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 localized product strategies will be key enablers for sustaining growth.

To summarize, 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.

	For and on behalf of the board
Place: Chennai	S. Sambhu Prasad
Date: August 12, 2025	Chairman and Managing Director