<dhhead>Management Discussion & Analysis Report</dhhead>
Indian Economy
India was the 5th largest economy in terms of 2024 GDP rankings, with an estimated GDP of USD 3.89 trillion. (1) As per current projections India is expected to surpass Japan and become the 4th largest economy in 2025. When adjusted for purchasing power, it is ranked third - only behind China, and United States. (1) India was the fastest growing major economy in 2024 with an estimated GDP growth of 6.5%. In terms of future estimated growth, India is expected to remain the fastest-growing major economy in the coming years - with a projected GDP growth averaging 6.4% a year in the years 2025 to 2030. (1) In light of the trade policy uncertainty, IMF revised down the global growth outlook for 2025, and reduced India’s growth forecast by 30 basis points from the initial estimate of 6.5% to 6.2% for FY25-26(31).
Public and private sector investments and consumption are expected to drive growth amidst conducive polices, rising incomes, and expanding workforce. FY25-26 budget has seen significant tax related reforms- both direct and in- direct taxes. The income tax relief provided for individuals earning up to 12 lacs is expected to bolster consumption.(2) Other reforms in the tax code aimed at streamlining taxation, and provision of targeted concessions in indirect taxes is expected to improve compliance of both businesses and households and facilitate ease of doing business.(2) Reforms around credit availability and financing needs for MSMEs seek to bolster entrepreneurial activity and offer continued support towards ‘Make in India’.(2) Investments in capability building beyond metro cities, coupled with reforms and capital outlays aimed at the agricultural sector and the rural economy are expected to foster inclusive growth.(3)
Indian Healthcare Environment
The healthcare industry on a broad level comprises of healthcare delivery, diagnostics, pharmaceuticals, medical devices, retail and hospital pharmacies, health insurance, and pharma services which include standalone operations such as clinical trials, as well as organisations performing one/ multiple facets of drug development & manufacturing such as Contract Research Organization (CRO), and Contract development & Manufacturing organisation (CDMO).(4) Pharma and medical devices together are estimated to constitute about 30% of the value of the industry.(4) The total healthcare sector is expected to grow at 12% CAGR through 2028.(4)
Despite significant improvements and investments in healthcare infrastructure over the years, there continues to remain significant room for further expansion and investments in the space. The healthcare sector is
considered one of the largest employers in India with many well- trained, and quality medical professionals. However, the number of healthcare professionals (HCPs) and specialists in the country is still relatively low compared to overall patient burden.(5) In the coming years we expect to see sustained demand for trained medical professionals and specialists. The public healthcare policies in recent years have sought to bridge the gap by increasing the number of medical colleges and seats. The number of super specialty seats in institutes as of 2023 has increased to roughly 3 times the number of seats offered in 2017.(6) Additionally,
16 new AIIMS have been announced to be established. FY 2025-26 budget saw a 12% increase in allocation for establishment of new AIIMS, and 15% increase for outlays dedicated towards improvements, and maintenance of existing AIIMS.(7) This trend is expected to continue in coming years as focus on improving access to quality, and specialised healthcare remains a key tenet of
national health policy.
Expenditure on public health continues to be on the rise. A total budget of 99,859 ($ 11.6 billion) has been allocated towards healthcare in FY 2025-26 budget. This constitutes a 10% increase vs previous year’s budget.(7) In terms of
healthcare spend, as a percentage of GDP as well, there has been a significant increase from 1.4% of GDP in FY17-18 to 1.9% of GDP in FY2024-25.(8)
Private sector investments into the sector continue to remain strong. Healthcare has been amongst the top destinations for Foreign Direct Investments (FDI) into the country. In
FY 2024-25, from April 2024 to December 2024 period alone, the FDI inflows in both pharmaceuticals and medical devices has been 11,888 Crore ($1.42 billion). Further,
the Department of Pharmaceuticals has approved 13 FDI proposals worth 7,246 Crore ($ 873 million) for brownfield projects during FY 2024-25.(9)
A growing burden of lifestyle and chronic ailments; an aging population; rising incomes; increased health & wellness awareness; and improved access to healthcare are notable trends that will positively impact the healthcare sector.
Indian Pharmaceutical Market(10,11)
The estimated size of Indian Pharmaceutical Market (IPM) for FY 2024-25 is 233,261 crore ($ 26 billion). The market considered here predominantly comprises of prescription drugs – orals, injectables, generics, biologics, biosimilars, and drug linked devices such as asthmatic inhalers; certain over the counter (OTC) medications such as vitamins, minerals, and other supplements are also included in the
IPM definition as reported by IQVIA, our industry sales insights partner. Exports, and direct sales from companies such as sales to government institutes are not included.
Indian Pharmaceutical Market grew by 8% (value, FY
2024-25 over FY 2023-24) vs. 7.5% (value, FY 2023-24 over FY 2022-23). Price increases accounted for 54% of the overall market growth, while volume growth, and new pack introductions accounted for 17%, and 29% of overall growth respectively.
AstraZeneca Pharma India Limited (the Company) actively promotes products in the therapeutic areas (TAs) of oncology, cardiovascular, diabetes, renal, respiratory, and more recently in rare disease and prevention of infectious disease. Oncology, diabetes, and cardiovascular TAs have registered higher than average market growth for FY 2024- 25, while respiratory TA recorded less than average market growth.
Pharmaceutical Business Environment- Outlook The Indian pharmaceutical market is forecasted to grow at a CAGR of 8.5% between 2024 to 2027 touching ~ $ 35 billion in 2027(11). Some of the factors that would drive the growth include demographic factors such as ageing population & rising income levels; healthcare ecosystem & policy related factors such as increasing health insurance coverage & public health expenditure; factors linked to technology such as AI linked productivity gains & improvements in access
to healthcare; consumerisation trends such as proliferation of e-pharmacies; and factors related to nature & scale of investments.
Key risks that could act as a dampener for growth include
- pricing pressure stemming from expansion of drug price controls & proliferation of generics; risks related to IP infringement & counterfeit drugs; and supply chain
disruptions & growth shocks stemming from geopolitical
uncertainty.
Growth and Demand Drivers
of chronic illnesses: India harbours a high non- communicable disease (NCD) burden. According to the Lancet, over a 100 million people in India are afflicted with diabetes.(12) This number is expected to rise to 139 million by 2035. (13) Obesity is also widespread in the country with prevalence estimates ranging between 128-228 million.(14,15) Cardiovascular disease for a while has been India’s leading cause of death, responsible for close to 27% of total deaths as per previously available estimates.(16) This is followed by COPD which is the 2nd leading cause of death.(17) The prevalence of cancer
has been increasing rapidly - with an estimated 1.41
million new cases in 2022, according to the WHO.(18) The incidence of new cases of cancer is expected to increase by upwards of 2 million by 2040.(19) As India experiences aging population in the coming decades
- the disease burden imposed by chronic illnesses will continue to grow.
23 million households expected to earn over 2 million per annum. The spend on healthcare is expected to rise along with associated increase in the standard of living.
lac crore ($12 billion) for the first 10 months of the fiscal
year. This is about a 10% increase vs same period last year.(21) Government funded initiatives such as PMJAY has helped in significantly expanding health insurance coverage by providing health insurance cover to the economically underprivileged households who otherwise would likely be unable to avail private
insurance. The total number of beneficiaries registered
under PMJAY is upwards of 400 million individuals.
(22) Last year PMJAY was expanded to provide health insurance cover upto 5 lakh per family for all senior citizens (aged 70 and above) irrespective of income group. This expansion is set to benefit about 60 million senior citizens (45 million households).(23)
it was announced that 73 medicines would be added to the list of medicines exempted from basic customs duty. It was additionally announced that duty would be waived off for the drugs provided free of cost under the patient assistance programme. These indirect tax concessions on medicines lower the cost of drug for patients and would help in alleviating the economic burden imposed by debilitating illnesses such as cancer.
healthcare expenditure (CHE) in 2017 down to 46% in 2022.(26) Budget allocation for healthcare has continued to be on the rise. The budgeted healthcare expense
for FY 2024-25 amounts to 1.9% of GDP, which is still significantly lower than NHP target of 2.5% indicating further room for increase in coming years.
omnichannel engagement, which has been in spotlight since the pandemic, is expected to become even more mainstream.(4) This has enabled efficient yet impactful means of engaging with healthcare professionals (HCPs), and various stakeholders. In the healthcare delivery segment, technology and digital platforms have unlocked access to quality healthcare and enabled even specialists to reach more patients via telemedicine. In the diagnostics space, AI has proven to be highly relevant, with demonstrated reliability
and scalability.
and its subset- gene therapies.(4) Contract Development & Manufacturing Organization (CDMO) has been amongst the fastest growing segment within ‘pharma’ services.(4) India has the 2nd largest CDMO footprint after China. Post COVID-19 pandemic, India has established itself as powerhouse for vaccines. The
total value of the vaccine market (excluding COVID-19) has more than tripled since 2021.(10) Policy initiatives such as Promotion of Research and Innovation in Pharma MedTech sector (PRIP) scheme - launched by the government has helped bolster R&D activity in the country.(28)
FY 2021-29 to encourage domestic manufacturing of pharmaceutical drugs.(9) This commitment has been reinforced in current budget by higher allocation
as compared with previous budget. Up to 100%, FDI has been allowed through automatic route for Greenfield pharmaceuticals projects. For Brownfield pharmaceuticals projects, FDI allowed is up to 74% through automatic route and beyond that through government approval.(9) FDI flows into the pharma sector surpassed – 19000 Cr ($ 2.3 billion) during FY24-25.(29) Schemes such as PRIP have helped
accelerate investments in R&D ecosystem and help the industry make strides in its transition from a cost based industry to a value based one.(28)
Risks:
non-scheduled products and an increase in the number of molecules listed on Schedule I of the Drug Price Control Order (DPCO), which are subject to explicit regulatory control. The impact of the DPCO on prices will increase if more products are added to the National List of Essential Medicines (NLEM) and escalate more dramatically if DPCO controls were applied to all forms of molecules on the list.(30)Loss of Exclusivity (LOE) will also lead to proliferation of generics and contribute to negative pricing pressure.
Globally, India features amongst the top exporters of pharmaceutical products by volume and is therefore susceptible to growth shocks stemming from unfavourable changes in trade policy with its trade partners. There could also be material impact in input costs since India also imports certain APIs
and raw materials needed for drug manufacturing and formulation. In light of the uncertainty around trade policy, IMF has recently downgraded global growth outlook for 2025 and has also revised down India’s growth forecast by 30 basis points.(31) Geopolitical tensions have also been elevated in the recent years, and flare ups have the potential to create supply chain imbalances and inflationary shocks.
Business Model
The Company is engaged in the business of distribution and marketing of pharmaceutical products and co-ordinates clinical trial services with an overseas group company.
During the year under review, total revenue from operations is amounting to 17,162.9 million out of which sales of pharmaceutical products is 16,084.3 million (93.7%) and sale of services from clinical trials and marketing support services is 1,048.6 million (6.1%) and other operating revenue is 30 million (0.2%).
Since all the Company’s activities fall within a single business segment, separate segment-wise disclosures are not provided in the financials.
Outlook
The Company’s sales & marketing operations are internally structured around three business verticals, viz. Biopharmaceuticals Business Unit, Oncology Business Unit, and Rare Disease Unit. Biopharmaceuticals business comprises of products targeting the therapeutic areas
of cardiovascular, renal, & metabolic disorders; chronic respiratory conditions; and infectious disease prevention. There are 12 assets in total within the biopharmaceuticals business of which 5 are actively promoted. The Oncology business has a portfolio comprising of 11 assets spanning across tumour types of lung, gastrointestinal, liver, pancreatic, ovarian, endometrial, breast, bladder, prostate cancer, and blood cancer. Rare Disease Unit launched in 2023 seeks to introduce novel therapeutic offerings that serve patients suffering from diseases which afflict a very small percentage of the population, but at the same time are highly debilitating in nature. Currently Rare Disease business has one asset in its portfolio.
Across therapeutic areas that the Company operates in, it has introduced numerous innovative products and secured label expansions in the recent years. The Company has secured 11 product approvals since 2023. Some of the recent new product introductions in oncology include Imjudo, and Enhertu, which are transformative therapies
in hepatocellular carcinoma and HER2 (Human Epidermal Growth Factor Receptor 2) linked cancers. Oncology
business has secured indication extensions in lung, gastric, breast, liver and endometrial cancer. This has profound impact on both depth and breadth of our oncology offerings within various tumour types. In the Biopharmaceutical space, we launched Breztri Aerosphere, which has the potential to reshape maintenance treatment of COPD by improving patient outcomes, and reducing mortality. We also launched Synagis in Octocber 2024, which is the only available, and approved drug in India for the prevention
of RSV infection.(10) Infants, and children who are most vulnerable to the detrimental effects of RSV infection will now be able to receive protection, ahead of and during the RSV season with Synagis. In the cardiovascular, renal
and metabolic space the Company has received approvals to import and market Sodium Zirconium Cyclosilicate (SZC) - a novel potassium binder indicated for treatment
of hyperkalemia in adults. In the rare disease space, the Company is gearing up to launch Eculizumab - India’s first anti-complement therapy, which has received approvals from the health authorities for use in two rare disease indications.
The Company hopes to expand its portfolio further in the country and tap into its robust asset pipeline within therapy areas of oncology, rare disease, cardiovascular, renal & metabolism, respiratory and immunology. The Company
is committed to bringing life changing medicines in these therapeutic areas and make them available for patients in India at the earliest, subject to feasibility and regulatory approvals. The Company will continue to leverage its robust clinical operations, and evidence generation capabilities wherever applicable to further accelerate regulatory milestones. A conducive regulatory environment remains key for determining both feasibility, and speed of new launches in the country.
In FY 2024-25, AstraZeneca was the fastest growing company amongst the top ranked companies by revenue, in IPM. The Company was growing faster than the top 47 companies in the IPM.(10) The Company gained 4 spots in terms of overall rankings by revenue and was ranked #40 in FY 2024-25 vs #44 in FY 2023-24.(10) We hope to continue our good performance by leveraging our strong portfolio across therapeutic areas, and via new product launches.
The Company will continue to prioritise investments in its focus disease areas, in line with its strategy.
Oncology
Cancer has become a major cause of mortality in India. There has been a significant rise in incidence of new cancer cases. In 2022 over 1.4 million patients were diagnosed with cancer, and this number is expected to go up significantly in the coming decade. The company is committed to bringing innovative medicines that redefine cancer care and
transform patient outcomes. The Company has life changing medicines across various tumour types of tumour types of lung, gastrointestinal, liver, pancreatic, ovarian, endometrial, breast, bladder, prostate cancer, and blood cancer.
The Oncology business has been the growth engine for the Company in the recent years. AstraZeneca’s Oncology
business features amongst top 3 leading company in terms of revenue in India.(33) The Company was also amongst
the fastest growing companies in Oncology in India in the year 2024 (Value growth).(33) Oncology business in the country has grown by nearly 50% despite featuring amongst the top ranked companies. Tagrisso is amongst
the leading oncology brands (by value) in the country and has been instrumental in delivering transformative patient outcomes for lung cancer patients in India. Lynparza has made significant difference to the lives of ovarian cancer patients all over the country. Having undergone loss of exclusivity in 2024, Lynparza has experienced significant value erosion with launch of more than 16 generic brands (till date). Increased generic proliferation is expected to pose continued headwinds for Lynparza franchise. Imfinzi, our immunotherapy offering, continues to see significant growth and has established itself amongst the leading Oncology brands in India. Enhertu, launched in 2024, has already
transformed the treatment paradigm for breast cancer. It has been one of the most successful launches in India having surpassed the 200 Cr ($ 24 million) milestone in just the first year of launch. Enhertu’s pipeline is expected to further transform patient outcomes across tumour types associated with HER2. Imjudo is the newest product launch in Oncology and aims to improve overall prognosis for patients suffering from hepatocellular carcinoma (HCC). The Company hopes to expand access for Imjudo and extend its benefits to more patients in the country.
Recent policy reforms around indirect taxes for life saving medications are a welcome step towards making novel medicines more accessible to patients. The GST on three of our cancer medications was reduced from 12% to 5%. In the union budget for the fiscal year 2025-26, it was revealed that a number of novel medicines would be newly exempt from basic customs duty, and that the duty would be eliminated for drugs supplied at no charge through the patient assistance programme. These tax relief measures decrease the cost of medications for patients, aiding in reducing the financial strain caused by severe illnesses like cancer.
Our ambition is to eliminate cancer as a cause of death. We seek to transform outcomes for people living with cancer through innovative medicines, powerful combinations, new modalities and a world-class, purpose-driven team.
Biopharmaceuticals
The Company’s biopharmaceutical business spans across disease areas of diabetes, kidney disease, heart failure, chronic respiratory conditions, and prevention of infectious diseases. The Company’s diabetes offering comprises of class of drugs pertaining to both SGLT2 inhibitors, and DPP4 inhibitors. At the forefront of the Diabetes portfolio is Forxiga, which is the innovator brand of dapagliflozin and belongs to the class of SGLT2 inhibitors. Forxiga is still
the No. 1 brand of dapagliflozin by value, despite generics entering well before the anticipated loss of exclusivity, and the launch of 120+ monotherapy brands of dapagliflozin as of date.(10) Forxiga, initially indicated for Type 2 diabetes, has since received approvals for both Chronic Kidney Disease (CKD) and Heart Failure (HF). India harbours a high disease burden of both CKD, and HF. Prevalence estimates of HF, and CKD are upwards of 10 million, and 100 million respectively. Forxiga has been instrumental in shaping CKD, and HF management in the country. Cardiovascular disease continues to be a leading cause of mortality in the country. Brilinta, our biggest brand by value in CVRM has been instrumental in saving lives of patients suffering from acute coronary syndrome. Despite LOE in 2019 and entry of close to 40 generics, Brilinta continues to be distant market leader, growing at double digit growth.(10)
The Company has restructured the Biopharmaceutical business and organised itself to be focussed on specialists, and bring pioneering science in the form novel therapies to address unmet needs. Our goal is to revolutionise care for millions of individuals living with chronic diseases. We are committed to early intervention to protect vital organs and towards developing new treatment modalities that address the interconnected nature of organs and diseases. We seek to leverage our promising pipeline in the cardiovascular, renal, and metabolic spaces to introduce novel therapies
in the country, pending internal feasibility checks, and regulatory approvals. Our aim is to mitigate the burden of chronic diseases by halting disease progression and ultimately paving the way for a cure.
The Respiratory portfolio has presence in disease areas of Asthma, and COPD. Fasenra is a respiratory biologic used for severe uncontrolled asthma of the eosinophilic phenotype. This has proved to be a transformational therapy for management of severe Asthma in the country and is the leading respiratory biologic in terms of value.
We are eager to extend the benefits of Fasenra to other diseases and indications where it has proved to be relevant and will be pursuing regulatory approvals for the same.
Breztri aerosphere, launched recently, is indicated for use in maintenance therapy of COPD patients. COPD is the 2ndleading cause of mortality in the country. There is an unmet need to improve patient outcomes and reduce mortality
in COPD. Breztri, backed by strong evidence of mortality reduction and improved patient outcomes, can help address this gap.
The Company seeks to tap into its promising and robust pipeline in respiratory & immunology and launch novel therapies in the country - subject to feasibility and regulatory approvals. Our ambition is to transform respiratory and immunology care for millions of patients worldwide, moving beyond symptom control to disease modification, remission and, one day, cure.
Infectious diseases are a significant cause of mortality and hospitalisation. The Company seeks to protect patients from serious viral and bacterial infections and provide protection for those who are most vulnerable. To that end, the Company launched Synagis last year, during the RSV season to protect infants from RSV infection and serious illness, and hospitalisation. Synagis, is currently the only available and approved prophylactic therapy in the country which is approved to protect vulnerable children, such as pre-term infants, from contracting RSV infections and their associated potential adverse consequences.
Up to 4% of the population are immunocompromised, and at a higher risk of hospitalisation from any infection.
AstraZeneca is working on research, testing and development of medicines which can protect patients from serious viral and bacterial infections and provide long- lasting immunity to millions. The Company will evaluate introducing assets emerging from the pipeline that address unmet need of providing protection against high-risk infections- subject to feasibility and regulatory approvals.
Rare Disease
The launch of Koselugo in 2023 marked the Company’s foray into the rare disease segment. Koselugo is the only approved treatment for pediatric neurofibromatosis type 1 (NF1) patients with inoperable plexiform neurofibromas (PN). This is a highly debilitating condition, with low awareness levels given its rarity, and paucity of treatments. The Company is looking forward to expand its rare disease portfolio by launching Soliris (Eculizumab) which is the
first and only approved anti-complement medical therapy indicated for treating two rare conditions- Paroxysmal Nocturnal Hemoglobinuria (PNH) and atypical Hemolytic Uremic Syndrome (aHUS), both in children and adults.
Being born with a rare disease is inherently inequitable. We are committed to taking bold steps to overcome societal and policy challenges and improve health equity for people living with rare diseases.
This includes improving access to treatment, and diagnostics. Rare disease patients –regardless of where they live – face significant obstacles to accessing quality healthcare and treatment. We hope to overcome these obstacles by making novel treatments available in the country. Our pipeline in rare disease spans a broad spectrum covering multiple disease areas. Continued policy support will remain key to help us overcome the challenges of treating rare diseases.
Building on our Legacy
It has been 45 years since AstraZeneca started its operations in the country, and the Company has left an indelible mark on the healthcare sector. The Company has evolved over the years, and experienced multiple innovation curves and product life cycles. The Company has a rich legacy of introducing innovative medicines to improve the lives of patients and has established numerous therapies as the gold standard of care across various disease areas. It has played instrumental role in shaping how diabetes is managed - moving beyond glucose control to influence patient outcomes. It has been instrumental in establishing dapagliflozin as the standard of care in both chronic kidney disease and heart failure in India. In the cardiovascular space, the Company had redefined the treatment protocol for ACS patients and has established Ticagrelor as the preferred oral antiplatelet therapy. In the respiratory space, the Company has played an instrumental role in improving the adoption of biologics in the country and in reducing the
dependency on oral corticosteroids amongst severe asthma patients. The Company’s Oncology business has been instrumental in the success of the organisation. It has been our growth engine over the past decade and continues to redefine the paradigm of cancer care in the country. Across various tumour types spanning across lung, ovarian, and breast cancer, the Company has delivered transformational therapies such as Tagrisso, Lynparza, Imfinzi, and Enhertu. More recently the Company has been making inroads into tumour types of gastrointestinal, liver, and endometrial cancer.
Partnerships have been integral to our success story. We have forged several successful partnerships in the past, and continue to leverage partnerships both within the industry, and externally with policy makers, and institutions to help us achieve our ambition of transforming patient outcomes
in our focus disease areas. We have leveraged partnerships with other established players to reach new markets and help more patients avail our therapies. The Company has set up COEs across India in collaboration with several leading institutes in disease areas of diabetes, cancer, and respiratory to advance the health care ecosystem to manage
patients holistically. The Company’s more recent partnership with the government include – partnership with government
of Karnataka to screen patients for lung cancer across all district hospitals by leveraging AI based diagnostics offered by Qure AI. The Company has also supported various hospitals and clinics across the country with capabilities that would aid in the identification of the patients who would stand to benefit the most from the use of biologics
in management of severe asthma. We are also exploring partnerships with key associations to spotlight rare diseases in the country. Our collaboration with Indian Academy of Paediatrics (IAP) and National Neonatology Forum (NNF) was instrumental in raising the awareness around RSV and need for preventive solutions.
The Company believes in leveraging technology to accelerate better health outcomes. In the diagnostics space the Company has been able to make meaningful difference in some of the focus disease areas. Some of the recent initiatives include partnerships for DDISH testing across
the country to facilitate HER2 testing for cancer therapy selection. The Company in collaboration with Qure AI has been able to leverage the power of Artificial intelligence to identify patients with suspicious radiographic lung markers and facilitate their referral for a confirmed diagnosis of lung cancer. This has facilitated early detection and is a significant step in helping eliminate lung cancer as a cause of death. In terms of customer engagement, the Company is leveraging immersive technologies such as Augmented reality (AR), and Virtual reality (VR) to better communicate value proposition of our drugs and deliver a differentiated
customer experience. The Company has also co-developed and implemented various beyond the pill solutions across the years. A recent initiative which has made a notable impact was the digital cardiac rehabilitation programme for acute coronary syndrome, and heart failure patients, which supported over 600 cardiac care centers across the country.
The Company had also partnered with Alveofit- to offer
IoT enabled handheld spirometers at hospitals across the country. This partnership aims to embed latest technological advancements in diagnosing and managing lung disorders and associated non-communicable diseases like asthma, pulmonary fibrosis and COPD. The Company has also been active in engaging with and leveraging digital platforms for building disease awareness. The Company has curated
and deployed several digital outreach programmes and campaigns which have been impactful and have reached millions of users, and also garnered strong engagement. Some of the recent highlights include – RSV awareness drive, and the Beyond Sugar & Heart Mitra campaigns.
Our employees have been instrumental in shaping the success of the Company. The Company hopes to attract and retain top talent and provide them with the right exposure and opportunities to grow. We have been awarded "great place to work" for the 7th year in a row. The company is dedicated to inclusion & diversity and seeks to create
an equitable environment where people can realise their potential. The Company has also received awards and external recognition for building credentials in diversity and inclusion. The Company had been recognised as amongst the 100 best companies to work for women for multiple years in a row. More recently, in 2024 the Company received D&I award by OPPI, the country’s largest MNC pharma industry association, and Silver award for Best Employer for Women as per ASSOCHAM 2024.(34)
The Company believes in investing in its people and nurturing their growth. The Company launched Management Development Program (MDP) in collaboration with IIM-B to help equip future leaders of the organisation with learnings and tools to apply in solving business problems and delivering great results. The Company also continues to emphasise continuous learning for people development.
It has made available multiple avenues and tools to learn new skills, and hone existing expertise. Apart from
industry leading educational platforms, the Company also actively offers cross functional/cross country immersion stints to help its people develop cross cultural leadership, build global networks, and replicate best practices, and learnings in various markets. Internally we are investing in AI and productivity tools to help employees improve their productivity and augment their day-to-day tasks. AZ has provided access to various NLP platforms including Chat GPT 4.1 to its employees. It has also developed courses to help employees get familiarised with AI tools, its workings, and on applying AI for business applications. AI is also
being leveraged extensively across functions for specific use
cases and applications like content design in marketing.
The Company is passionate about caring for the environment and seeks to be a positive change agent by reducing carbon emissions, water consumption and waste generation. We believe that our health is ultimately tied
to the health of our planet. Various studies reinforce the adverse health risks associated with pollution, and the mortality and morbidity burden imposed by air pollution. It is estimated that globally about 9 million deaths in a year can be attributed to pollution, and that India has amongst the highest number of air pollution-related deaths.
AstraZeneca, globally has undertaken efforts to make transformational improvements in improving our air quality, and towards decarbonisation. Our ambition is to accelerate the delivery of net-zero healthcare, proactively managing our environmental impact, and investing in nature and biodiversity. We truly believe, bold climate action and investments in nature and biodiversity are vital to drive
positive global health outcomes. With that, we expanded our focus on air and water management from last year, investing in one of our focus areas-‘Natural Resource’ conservation.
We are taking action to protect and restore ecosystems by limiting environmental impacts across our value chain, investing in nature, biodiversity and water stewardship. The Providing & Augmenting Natural-resource-based Interventions (PANI) programme aims to transform
waterbodies to enhance groundwater recharge, agriculture, and domestic water use, with a focus on addressing saline drinking water challenges. The programme involves local assessments of groundwater, rainfall, and canal water to improve water availability.
Continuing our work in Maharashtra, we picked Nagpur and Satara as focus regions with our implementation partner OneStage and IICare to build, rejuvenate and beautify water bodies- to boost agricultural livelihoods through rainwater harvesting, ensuring water security, promoting irrigation and fishing, and introducing household-level waste management to reduce water pollution and health issues.
Additionally, as a part of this initiative, AstraZeneca (our global entity) has committed $ 71 million to fund India’s largest biodiversity restoration project, in support of climate action and human health. The initiative seeks to plant and maintain an estimated more than 60 million plants and
trees in Meghalaya by working with local communities and experts. AstraZeneca will also support farmers restore 22,670 hectares, supporting biodiversity and soil conservation, as well as climate and catchment health
co-benefits. Work is underway to enable further planting of millions of trees. The Company has also taken numerous steps which will reduce our carbon footprint on a day-to- day basis- such as electric vehicle subsidies for employees, converting company vehicle fleet from IC to EV, tracking carbon footprint at functional level and facilitating meetings, and programmes with lean footprint.
The Company is active in community outreach and in making a positive difference for communities by supporting the underprivileged and marginalised sections of society. The Company believes that our youth have the potential to become positive change agents in the community and can play a pivotal part in inculcating healthy attitudes towards
leading a healthy lifestyle which can go a long way towards prevention of chronic diseases like diabetes, cardiovascular disease, cancer and respiratory diseases. This is the essence behind the Company’s flagship Young Health Program (YHP). Last year, we continued our engagement
in the existing and 2 new HICs in Yelahanka, Dasarahalli, Thubarhalli, Hoodi, increasing awareness and knowledge of parents, teachers and community leaders on NCD prevention to create a supportive and enabling environment for project beneficiaries and young people. This year,
we successfully reached more than 1,20,000 community members, engaged with 15,200 young people including (50% girls) aged 10-24 years through 80 peer educators
working with 10 schools, 15 health centers, 500 parents, 10 community leaders, and 10 government stakeholders, 50 teachers.
The Company will continue to strive towards being pioneers in science, lead in specialist disease areas, and transform patient outcomes. The Company will continue to emphasise transparency and high standards of ethics in all its operations. Patient centricity remains at the core of our actions and guides our day-to-day decision-making. The
Company is committed towards upholding the UCPMP 2024 guidelines which should encourage more ethical practices in the industry and make it a more level playing field- one that’s rooted in science, and patient centricity. The Company will remain committed to high product quality, which underpins the safety and efficacy of its medicines. The Company will maintain a strong focus on cost optimisation and controls and is undertaking measures to reduce unproductive discretionary and non-customer facing spending. It also continues to develop simple and more efficient processes to encourage accountability and improve decision-making and communication.
Inspired by its purpose and values, the Company is committed to transforming the future of healthcare by unlocking the power of what science can do- for people, society and planet.
Internal control systems and their adequacy The Company has appropriate internal control systems comprising of internal policies, standard operating procedures, defined approval authority with limits, management supervision, checks and balances within and outside IT systems, line monitoring and reviews by
Cross Functional Teams (CFT), including risk reviews. The Company has a defined Internal Controls Framework, known internally as the Financial Controls Framework (FCF). Such FCF controls are subject to periodic attestation by defined control owners and independent management testing. TheCompany’s internal control system is also subject to other assurance work such as through management appointed consultants and the Internal Auditors appointed by the Audit Committee. Internal audits for the financial year 2024-25 were carried out by independent auditors based on the audit plan approved by the Audit Committee. The plan included audits of the depots of the Company and key processes within Operations and Marketing units, including enabling functions. The Audit Committee and the Management
have reviewed the findings from the Internal Audit and appropriate remediation steps are being taken to implement the recommendations. In addition, the Company’s Internal Finance Controls were independently tested and validated by the external auditors. The Company monitors and manages risks in its interactions with third parties through its Third-Party Risk Management (3PRM) framework. This
framework provides the methodology, guidance and tools for managing third-party risks related to Anti-Bribery and Anti-Corruption, Data Privacy, Confidentiality, Trade Control, Competition, Product Communication and Product Security.
Discussion on financial performance with respect
to operational performance
During the year ended March 31, 2025, the Company’s total income was at 17,569.2 million as against 13,303.3 million reported in the corresponding previous year.
The total cost was at 15,037.7 million during the year as compared to 11,272.2 million in the previous year. The profit after tax was 1,157.4 million during the year compared to 1,615.1 million in the previous year.
Significant changes in Financial Ratios
During the year, the significant changes in the financial ratios of the Company, which are more than 25% as compared to the
previous year are summarised below:
Rs.In Million
Financial Ratio Current Ratio |
2024-25 |
2023-24 |
Change |
Reason for change |
1.9 |
2.6 |
(26.9%) |
Decrease is on account of increase in higher provision due to factory exit |
|
Debt-Equity Ratio |
4.6% |
0.6% |
666.7% |
Increase is on account of increase in lease liability |
Return on Equity Ratio |
15.6% |
24.8% |
(37.1%) |
Decrease is on account of lower net profit after tax due to higher exceptional expense |
Trade payables turnover ratio |
1.0 |
0.7 |
42.9% |
Increase is on account of change in credit terms with vendors |
Net profit ratio |
6.7% |
12.5% |
(46.4%) |
Decrease is on account of lower net profit due to higher exceptional expense |
Return on Capital employed |
19.6% |
30.9% |
(36.6%) |
Decrease is on account of lower earnings due to higher exceptional expense |
Development in Human Resources / Industrial
Relations
Everything we do is underpinned by our dedication to being a Great Place to Work. We recognise that our people are our greatest asset and know what’s possible with a talented and diverse team. Delivering great employee experiences is a strategic initiative that sits within our People & Sustainability strategic priority. We create great employee experiences that ignite innovation, unite diverse talent and unlock capacity.
We do this by being champions of inclusion and diversity, and by fostering personal growth and enterprise leadership through continuous learning and development. We enable our people to thrive in a dynamic, inclusive and high-
performing culture, driven by our Values and behaviours, so together, we can show what science can do for people, society and the planet.
Inclusion and Diversity (I&D)
At AstraZeneca, we place Inclusion before Diversity. That is because we first focus on creating a culture of inclusion and belonging, which enables us to attract and retain a rich and diverse workforce. Our global commitment to inclusion and diversity is woven into what we do, and is reflected in our Values and the behaviours that underpin them.
We continue to focus on fostering an environment promoting ‘Speak your Mind’ and ‘Listen Up’ thus building an Inclusive Culture. One of the ways we adopted to leverage the strength and diversity of our teams across is by launching ‘180? Reverse Mentoring’ where the Country Leadership Team was being mentored by diverse employees across roles, experiences to establish well-rounded cohorts and enable cross-generational and inquiry-based conversation. Another impactful initiative is the ‘LeAderZ Lounge’ – informal connects between Country Leadership Team and employees that foster rich dialogue and diverse perspectives to drive continuous learning.
Psychological safety remains a long-term priority at AstraZeneca. We ensure that all employees feel
psychologically safe to contribute wholly and to the best of their abilities. In line with our I&D agenda to foster a thriving and productive work environment, we have conducted ‘Psychological Safety Workshops’ for all leaders and people managers at AstraZeneca India.
As of March 31, 2025, women comprise approximately 22% (180) and men approximately 78% (621) of our total workforce. Gender diversity on our Board stands at 75%. Among our Country Leadership Team, 4 out of 14 members (29%) are women.
In 2024, our inclusion and diversity efforts were recognised externally:
industry association
Learning and Development
Attracting, retaining and developing talented individuals is key to our growth and success. We achieve this by cultivating a great place to work that values and rewards
innovation, entrepreneurship and outstanding performance.
Central to our success is ensuring all our employees have the potential to develop and grow and we are committed to being a great place to work. We are committed to creating a culture of lifelong learning and development, building future-ready capabilities through targeted and inclusive programmes that support growth from early talent to enterprise leaders.
Our digital learning portal supports a continuous learning mindset, underpinning a high-performing and innovative organisation. Our development programmes help us to unlock potential, drive innovation and foster an inclusive culture- building the capabilities of diverse future leaders in support of our People strategy. 87% of our employees believe that in the last 12 months, they have improved their existing skills, or learned new skills, or had a development opportunity.
Employee Feedback and Engagement
Encouraging employees to provide continuous feedback through various mechanisms helps us foster an inclusive culture and be a great place to work. We collect feedback through onboarding surveys, exit interviews, and our annual employee engagement survey. We encourage managers
to listen to the workforce by providing them with access to the aggregated survey results for their teams. To ensure full transparency, we share our survey results with the Board of Directors, Country Leadership Team, line managers, and employees. In our most recent survey (November 2024), we continued to score highly, achieving an average result of 83% across all questions. Our response rate also reflects the high levels of engagement with 92% of all employees choosing to participate in the survey.
In recognition of our ongoing commitment to creating a positive and inclusive workplace, we earned the ‘Great Place to Work’ certification for the seventh consecutive year in 2024.
CAUTIONARY STATEMENT
Statements made in the Management Discussion and Analysis Report describing the Company’s objectives, projections, estimates, and expectations may be forward- looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include amongst others, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which it operates, changes in government regulations, tax laws, and other statutes and incidental factors.
References:
Mar’24
et. al, Mar’23
For values reported in , conversion to USD based on rate of exchange $1 = 83
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