Aurobindo Pharma Ltd Management Discussions

ECONOMIC REVIEW Global Economy

The global economic growth came in at 3.3% in 2025 at similar level as 2024, amidst abating trade tensions with occasional flare-ups. Despite policy uncertainty global economy remained remarkably resilient. Global inflation reduced from 5.8% in 2024 to 4.1% in 2025.

(%)

Region	2023	2024	2025	2026 (P)	2027
Global economy	3.3	3.3	3.3	3.3	3.2
Advanced economies	1.7	1.8	1.7	1.8	1.7
Emerging markets and developing economies	4.4	4.3	4.4	4.2	4.1

P = Projections

Growth is expected to remain steady in 2026 and 2027, led by the balancing of divergent forces. Fluctuating trade policies continue to cause certain degree of uncertainty though balanced by surging investment in technology, including artificial intelligence (AI), especially in North America and Asia than in other regions. Further support to growth stems from fiscal and monetary support, broadly accommodative financial conditions, and adaptability of the private sector. Global headline inflation is expected to cool down to 3.8% in 2026 and further to 3.4% in 2027, but US inflation will return to target more gradually. Risks to growth may arise due to re-evaluation of technology expectations and escalation of geopolitical tensions. Policymakers need to restore fiscal buffers, preserve price and financial stability, reduce uncertainty, and implement structural reforms to sustain growth.

(Source: IMF World Economic Outlook, January 2026)

Indian Economy

The Indian Gross Domestic Product (GDP) growth is estimated at 7.7% in FY 2025-26, higher than 7.1% recorded in FY 2024-25. The sustained growth momentum is primarily attributable to double digit growth in the manufacturing sector, robust domestic consumption and investment. The year gone by witnessed several challenges from foreign trade partners amidst heightened uncertainty in global trade, imposition of high and punitive tariffs by key partners. Total exports (merchandise and services) were recorded at USD 860 billion in FY 2025-26. Exports are expected to get a substantial boost by the Free Trade Agreement with the European Union concluded in Q4 FY 2025-26, post three years of embargo, India and the United States also signed an interim bilateral trade deal signalling economic cooperation. Continued focus on domestic manufacturing, rationalisation of GST rates and further simplification of compliance requirements across various industries provided relief to corporate India.

During the year, the Reserve Bank of India (RBI) eased its monetary stance, with a view to support growth amid moderating inflation, maintaining the repo rate to 5.5% in October 2025 and further down to 5.25% in December 2025 As of February 6, 2026, the RBIs Monetary Policy Committee kept the repo rate unchanged at 5.25% and maintained a neutral policy stance, focusing on maintaining stability amid global uncertainties. Real GDP growth for FY 2026-27 is projected to range between 6.8% and 7.2%, reflecting steady economic momentum supported by strong domestic demand, continued investment activity and improving macroeconomic stability.

Source: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2219912&reg=3&lang=1

INDUSTRY REVIEW

Global Pharmaceutical Industry

The global pharmaceutical industry grew 9.3% in 2025 to reach an estimated USD 1,939 billion from USD 1,774 billion in 2024. The primary growth drivers including growing incidences of chronic diseases, steady growth of ageing population, rising investments in R&D, advancements in biologics and biosimilars, increased preference for personalised medicine, and spike in digital health applications in the pharmaceutical industry.

Source: IQVIA Market Prognosis, Sep 2025; IQVIA Institute, Dec 2025.

Notes: Global medicine spending is based on IQVIA Market Prognosis with the addition of estimates of COVID vaccine and therapeutic spending which are not otherwise included. Those COVID additions are informed by company financials and published prices and vaccination rates.

Report: Global Medicine Use Trends 2026: Therapy Drivers, Spending Levels, and Policy Evolution. IQVIA Institute for Human Data Science, February 2026.

The pharmaceutical market witnessed fast pace growth with streamlining of regulations, continued advances in GLP-1 agonists, deeper integration of AI and robotics, and steady progress in greenfield and brownfield expansion. The growth was seen across developed markets and pharmerging markets. Emerging markets are acting as strategic growth engines, and new sources of scientific innovation. Ageing population leads to surge in chronic conditions, such as rheumatoid arthritis, cardiovascular disorders, among others. Non-communicable diseases like cardiovascular diseases, cancer, chronic respiratory diseases etc., are responsible for the death of nearly 43 million people annually. The market for complex treatments like biologics and biosimilars is witnessing a rapid rise led by rising chronic disease incidences especially in oncology, and autoimmune and inflammatory disorders.

The integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML) along with novel therapeutic approaches, are being increasingly embedded across the pharmaceutical value chain. These advancements are re-defining healthcare delivery and addressing access disparities. AI is revolutionising drug discovery, development, and manufacturing process and playing an increasingly significant role in precision medicine and in clinical trials. Improving healthcare infrastructure, increasing government focus on healthcare sector, fast paced technological advancements in biologics, personalised medicine, and RNAi-based therapeutics, are proving strong growth impetus to the sector. Investment in pharmaceutical R&D is increasingly steadily, driving product development.

The global pharmaceutical market is estimated at USD 2.6 trillion by 2030, growing at 5-8% CAGR (2026-2030) led by the increasing contribution of new products and the impact of patent expiries, including the growing impact of biosimilars. The growth will continue to be driven by the growing use of medicines in developed markets of innovative therapeutics especially in oncology, immunology, diabetes and obesity drugs. By 2030, usage is projected to reach 4 trillion defined daily doses, with China driving much of the growth while mature markets stabilise.

Source: IQVIA - Global Medicine Use Trends 2026IQVIA; Noncommunicable diseases

Growth in immunology treatments

The awareness of immunological diseases and treatments has witnessed accelerated growth in both developed and developing nations led by rising prevalence of immunological disorders such as rheumatoid arthritis, psoriatic arthritis, type 1 diabetes, and others. The global immunology market size is estimated at nearly USD 180 billion in 2024 and is expected to grow slow at 4-7% CAGR to 2029, reaching USD 234 billion due to the launch of biosimilars. The market growth is expected to slow down slightly due to biosimilar erosion. Up to 2030, several blockbuster brands will lose exclusivity and low-cost versions are expected to enter numerous, popular drug classes. In untreated, underserved or refractory markets, innovators are increasingly focusing on novel pathways and targets, new modalities, such as cell therapies, bi-specifics, T-cell engagers or nanobodies; oral therapies, combination therapies, smaller indications, and inflammation, to target unmet needs with similar efficiency at lower costs. Source: IQVIA– The Global Use of Medicines

Rapid Uptake of GLP-1 Agonists

With the rising prevalence of obesity and diabetes, the growth of the GLP-1 receptor agonist industry is witnessing robust growth. According to the WHO, in 2022, almost 1 in 8 people were suffering from obesity and overweight. GLP-1 receptor agonists aid in the treatment of diabetes and obesity by mimicking the effects of the naturally occurring hormone GLP-1, which regulates appetite and blood sugar levels. The lowering of appetite and the delayed stomach emptying by GLP-1 agonists contribute to the weight loss effect. Steadily there has been a step-up in patient awareness, acceptance and preference for injectable therapies, leading to growth of GLP-1 agonist market globally. The global GLP-1 receptor agonist market was estimated at USD 71 billion in 2025 and is projected to reach USD 202 billion by 2033, at 13% CAGR. The growth is expected to be led by the launch of new GLP-1 receptor agonist products, a robust product pipeline for both diabetes & obesity applications, the high efficacy of these drugs and integration into combination therapies.

Source: Obesity and overweight; GLP-1 Receptor Agonist Market Siz Industry Report, 2033

Oncology

According to WHO, cancer is a leading cause of death globally, accounting for nearly 10 million deaths in 2020, or nearly one in six deaths. Nearly 4,00,000 children develop cancer annually. Oncology drugs include wide range of medications such as targeted therapies, chemotherapy agents, immunotherapies, and hormone therapies to treat cancer. The global oncology drugs market was estimated at USD 242 billion in 2025 and is projected to grow from USD 267 billion in 2026 to USD 667 billion by 2034, at 12% CAGR. The growth is expected to be driven by the rising prevalence of different types of cancer, new drug launches, loss of exclusivity, increasing rate of product approvals, and growing investment in R&D. The per capita use of PD-1/PD-L1 inhibitors has risen rapidly in many high-income countries, leading to their wide adoption due to strong efficacy across a range of solid tumours, including several with tissue-agnostic approvals triggering their use with biomarker testing results.

Biosimilars or generics pose significant threat to certain drugs. In 2027, a number of backbone therapies will face generic and biosimilar competition. Small molecules - palbociclib in breast cancer, enzalutamide in prostate cancer, and olaparib in a range of solid tumours, will all lose exclusivity in 2027. The PD-1 inhibitors pembrolizumab and nivolumab, are expected to face biosimilar competition starting 2028, with majority of impact on growth in 2029. This lower growth as the result of losses of exclusivity will be offset by continued uptake of novel modalities, including ADCs, bispecific antibodies, and cell and gene therapies, which are expected to account for nearly 20% of oncology spending in 2029, up from 9% in 2024 and 3% in 2019.

Source: https://www.fortunebusinessinsights.com/ oncology-drugs-market-103431; Cancer

Emerging trends in neurology and mental health treatments

The global neurology market is growing, led by the rising incidences of neurological disorders, technological advancements in neurological devices, and increasing demand for minimally invasive procedures. Rising mental health awareness, workplace mental health programs, advancement in treatment modalities, growing incidences of mental disorders, and various government initiatives and policies are giving a boost to the mental health treatment market. There is a steep rise in the prevalence of neurological disorders such as Alzheimers disease, Parkinsons disease, and epilepsy among the global population. New approvals for these diseases, including adacanumab launched in 2021 and lecanemab launched in 2023, are expected to drive growth. A new wave of rare disease neurological treatments, including dozens with orphan designations, have been approved. Other diseases with larger populations such as migraine, depression and anxiety have also seen a range of new treatments approved and launched.

Source: IQVIA 2025 – The Global Use of Medicines; Fortune Business Insights

Antibacterial challenges and solutions

Globally, the demand for antibacterial products is on the rise, driven by rising customer awareness about personal hygiene, the increasing prevalence of bacterial and viral diseases, such as cellulitis, impetigo, and leprosy, among others. Antibacterials act as crucial healthcare resources, but their usage must be carefully managed to mitigate the growing risk of antimicrobial resistance.

Key global markets

North America continued to lead the global pharmaceutical market, in 2025, with high healthcare expenditure, robust regulatory frameworks, and advancements in biologics and personalised medicine. Within North America, the US leads the region, due to substantial investment in R&D, early drug approvals, and a robust pipeline of innovative therapies.

Notes: Developed markets are defined by IQVIA as countries with per capita GDP by purchasing power parity (PPP) >USD50,000/year. Countries are further segmented into higher growth and lower growth based on forecasted 5-year aggregate pharma sales growth exceeding USD 2 billion in two successive editions of the forecasts. The higher growth countries are Australia, Austria, Belgium, Canada, France, Germany, Italy, Japan, Poland, Saudi Arabia, Spain, South Korea, UAE, the UK, and the U.S. Pharmerging markets are defined as countries with per capita GDP by purchasing power parity (PPP) <USD50,000/year and forecasted 5-year aggregate pharma sales growth >USD 2 billion (absolute) in at least two forecasts. These countries are Argentina, Brazil, China, Colombia, Egypt, Greece, India, Indonesia, Mexico, Pakistan, Romania, Russia, Thailand, Turkiye and Vietnam. Spending and growth do not include COVID-19 vaccines and therapeutics.

Report: Global Medicine Use Trends 2026: Therapy Drivers, Spending Levels, and Policy Evolution. IQVIA Institute for Human Data Science, February 2026.

Exhibit 20: High growth developed and Pharmerging markets spending and growth, constant USD, 2015-2030

Source: IQVIA Market Prognosis, Sep 2025; IQVIA Institute, Dec 2025.

Notes: Developed markets are defined by IQVIA as countries with per capita GDP by purchasing power parity (PPP) >USD50,000/year. Countries are further segmented into higher growth and lower growth based on forecasted 5-year aggregate pharma sales growth exceeding USD2bn in two successive editions of the forecasts.The higher growth countries are Australia, Austria, Belgium, Canada, France, Germany, Italy, Japan, Poland, Saudi Arabia, Spain, South Korea, UAE, the UK, and the U.S. Pharmerging markets are defined as countries with per capita GDP by purchasing power parity (PPP) <USD50,000/year and forecasted 5-year aggregate pharma sales growth >USD2bn (absolute) in at least two forecasts.These countries are Argentina, Brazil, China, Colombia, Egypt, Greece, India, Indonesia, Mexico, Pakistan, Romania, Russia, Thailand, Turkiye and Vietnam. Spending and growth do not include COVID-19 vaccines and therapeutics.

• Global medicine spending is expected to witness slow growth over the next five years in absolute terms. The growth is to driven primarily by the U.S. (USD 389 billion), high GDP high growth developed countries (USD 155 billion), and the group of high growth and lower GDP countries referred to as Pharmerging countries (USD 121 billion). The U.S. and 14 other countries account for 76% of global growth through 2030, with 83% of the growth from the top eight of these countries. In developed markets, growth is predominately attributed to the adoption of novel drugs, with most global launches reaching these markets within a year. The top eight Pharmerging countries are also expected to drive 83% of growth from pharmerging nations.

Within the bigger European markets, the UK, Germany, and France, benefit from strong regulatory frameworks, government funding for biopharma research, and increased adoption of biosimilars and orphan drugs. Growing incidences of chronic diseases, ageing populations, and expanding access to healthcare are driving market growth. Western Europe has had four straight years of 8% spending growth through 2024 and is expected to slow to 4.5–7.5% through 2029 as a combination of expiry events and payer pressure partly offset by the wider use of novel medicines. Eastern Europe has the highest growth outlook with a range from 7 to 10%, although slowing through the forecast period.

The Asia-Pacific pharmaceutical market is experiencing rapid growth, driven by increasing healthcare access, rising chronic disease prevalence, and government initiatives to improve healthcare infrastructure. China, India, and Japan lead the market, supported by local manufacturing capabilities and expanding clinical research.

USA

The development of targeted therapies, biologics, and personalised medicine, strong government policies, high consumer spending, and extensive biopharma investments characterise the US pharmaceutical market. Estimated at USD 812 billion in 2024, the US pharmaceutical market is expected to witness 3-9% CAGR from 2025 to 2029, to reach an estimated value of USD 1,156 billion by 2029. This growth will be driven by adoption of newly launched innovative products, with an average of 50–55 new medicines launching per year over the next five years, including those in oncology or with specialty or orphan status, as well as some more traditional therapies in diabetes, obesity, and neurology. Growing prevalence of chronic diseases, an ageing population, strong government focus, huge investments in R&D and extensive efforts to improve the affordability & accessibility of pharmaceuticals propel the pharmaceutical markets growth in the US.

Key trends

• Focus on novel therapy: The contribution from new brands is expected to be USD 117 billion over five years as more than 250 new active substances (NAS) are expected to launch in the U.S. in the period. The transformative clinical outcomes of GLP-1 receptor agonists and GLP-1/GIP dual agonists have transformed obesity treatment for both patients and providers, offering a viable medical solution to a condition long viewed as difficult to manage. Another example is the strong focus on precision medicine, approval of cutting-edge drugs such as CAR-T cell therapies for certain cancers, gene therapies and RNA-based treatments.

• Focus on R&D: Investing in the discovery and development of new therapies is a key focus area in the US market. Major players are investing huge amounts in R&D for developing innovative drugs to meet the demands of an ageng population and the increasing prevalence of chronic diseases.

• Growth in biosimilars: The rise of biosimilars presents competition for biologics, particularly in therapeutic areas like oncology and immunology. Branded pharmaceuticals can maintain their market position led by innovation, brand loyalty, and superior efficacy in many cases.

• Patent expiration: Patent expiration of key pharmaceutical drugs has emerged as a significant restraint for the growth of US branded drugs. Once patents expire, generic versions of these drugs enter the market, often leading to a sharp decline in sales for the original branded drugs. The impact of losses of exclusivity is expected to increase dramatically to USD 179 billion from USD 49 billion in the prior five years as both small molecule and biologic product exposure to LOE has increased substantially.

• Strict regulations: The FDA plays a critical role in ensuring the safety and efficacy of drugs, with expedited pathways such as Breakthrough Therapy Designation and Accelerated Approval supporting innovation for high-need conditions. Increasing scrutiny over drug pricing and reimbursement policies is an integral part of the market dynamics.

Europe

The European pharmaceutical market is witnessing steady growth, led by Germany, France, Italy, Spain and the UK. The European pharmaceutical market is characterised by major technological advancements, strong government focus on healthcare, growing prevalence of generics due to patent expirations, biologics, and unwavering focus on advancements in research and development. Biologics and biosimilars are the most lucrative and fastest-growing molecule categories. Cell and gene therapies, and immunotherapies are the fastest-growing areas in terms of R&D, with huge investments. The market focuses on oncology and central nervous system disorders, which typically receive the highest funding for developing novel therapies. In 2024, the medicine spending in the top five European markets was estimated at USD 242 billion and is expected to USD 327 billion by 2029.

Key trends

• Losses of Exclusivity:The impact of LOEs in the five largest European markets (Germany, France, Italy, Spain, and the UK), are expected to increase 2.5 times over the next five years with a sequence of large selling brands facing expiry through 2029.

• Biopharma driving innovation: Biopharmaceuticals are transforming the healthcare sector, providing breakthroughs for complex diseases such as autoimmune disorders and rare conditions. These advanced therapies help address unmet medical needs through innovation. Over the next five years, more than 200 NAS are expected to launch in the leading European countries including one-third from cancer drugs and important clusters in neurology, including rare diseases. Other clusters of innovative drugs include next generation biotherapeutics, which include cell and gene therapies and RNA therapeutics, and which partly overlap with oncology treatments.

• Digital health integration: Huge innovative solutions are emerging using digital health integration, such as telemedicine, remote patient monitoring, etc. Europe is also on track to adopt Industry 4.0 to increase precision and consistency in drug manufacturing.

• Technologically-driven R&D: Advanced technologies are extensively being used in novel drug development, including AI, big data, etc. This helps in improving the turnaround time and is in line with the governments aim to provide faster access to quality healthcare.

• Personalised medicines: Tailoring treatments to individual patient needs is gaining significant traction in Europe. Coupled with strong focus on cancer research, this approach is the most effective in improving survival rates among patients.

Pharmerging markets

Pharmerging markets are a combination of countries with low positioning in the global pharmaceutical market, with a high growth rate. India, China, South Africa, Brazil, Russia, Indonesia and Turkey are some of the key pharmerging markets. In the past decade, pharmerging markets witnessed high growth due to the rising demand for cost-effective generics. AI is playing a key role in the transformation of the pharmerging markets by supporting the development and discovery process of new formulations of drugs, helping market players innovate in line with evolving market dynamics. The pharmerging estimated at USD 312.2 billion in 2024, is expected to grow at 3.5-6.5% CAGR to USD 375-405 billion by 2029.

The Asia Pacific market holds a dominant position in the pharmerging markets, due to rise in patent expiration, rapid urbanisation, and a spike in the medical research investments by various governments. Within the Asia Pacific market, China dominates with a strong potential to grow exponentially in the near future.

Typically, pharmerging markets witness volume-driven growth with lesser focus on specialised therapies. As compared to developed markets, low-cost generics or non-original branded products garner a greater share in these markets, with lower shares of originator products. The market scenario is undergoing a shift with an emerging middle-class population who are aspirational. With strong support from government, the pharmerging markets are expected to witness robust growth.

India

Indias pharmaceutical industry (IPM), commonly called the ‘Pharmacy of the World, is the largest provider of generic medicines globally, with nearly 20% share in global supply by volume with exports to 190+ countries. Globally, the IPM ranks third in production by volume and 14^th by value. India is the worlds leading vaccine exporter, supplying 65-70% of the World Health Organizations (WHO) vaccine requirements, particularly for DPT, BCG, and measles. IPM plays a significant role in affordable HIV treatment. Led by the China plus one strategy among large pharmaceutical markets, India is solidifying its position as a key global pharmaceutical supplier. India has a well-established domestic sector comprising approximately 3,000 drug companies and over 10,500 manufacturing units offering over 60,000 generic brands across 60 therapeutic categories. India boasts of the highest number of US-FDA compliant pharmaceutical plants outside of USA. The industry is currently valued at USD 60 billion is expected to reach USD 130 billion by 2030 as per the Indian Ministry of Commerce. The primary growth drivers include rising incidence of chronic diseases, ageing population, growing life expectancy, increased health awareness, expanded access to healthcare services, and a stable regulatory environment encouraging innovation. Governments strong push for the pharmaceutical sector is providing impetus to overall growth. In line with the vision of transforming India into a leading global bio pharma industry and capturing 5% of the global biopharmaceutical market share, in the Union

Budget 2026-27, strong focus was laid on biopharma and biologic medicines in healthcare and manufacturing strategy. The government has also initiated several policies to promote the pharmaceutical sector including PLI scheme for Bulk Drugs, Revamped Pharmaceuticals Technology Upgradation Scheme, scheme for Promotion of Bulk Drug Parks, PLI for Medical Devices etc.

Source: Investing in Indias Pharmaceutical Industry: Key Growth Prospects

COMPANY OVERVIEW

With four decades of rich experience, Aurobindo Pharma Limited (the Company), one of the Indias leading contributors to the pharmaceutical sector, has emerged as an integrated knowledge-driven global pharmaceutical company. The Company develops, manufactures, and commercialises a wide range of generic pharmaceuticals, branded specialty pharmaceuticals and injectables, active pharmaceutical ingredients, complex offerings including, biosimilars, peptides, and metered dose inhalers, globally in over 150 countries. Leveraging our widespread reach, we excel in bringing agile solutions to millions of patients.

Headquartered in Hyderabad, India, we operate 32 modern manufacturing and packaging facilities in several countries (28 in India, 1 each in USA, China, Portugal and Brazil) with a workforce of over 40,000. These manufacturing facilities are approved by leading regulatory agencies, including the US FDA, UK MHRA, EDQM, Japan PMDA, WHO, Health Canada, South Africa MCC, and Brazil ANVISA. In addition, we have 6 R&D centres spread across an area of 16,000 sq.m and a proficient team of over 1,500 experienced scientists.

Being R&D focused with a multi-product portfolio, we have earned a repute to follow tight production schedules, enabled by timely availability of raw materials and finished products. Our seamless business model allows us to reduce time-to-market and encash market opportunities. Our strong in-house R&D capabilities, enables us to develop niche oral, sterile, specialty injectable products, biosimilars, and peptide-based products, involving clinical and end-point studies. Our strong commitment to R&D enables us in swiftly filing patents, Drug Master Files (DMFs), Abbreviated New Drug Applications (ANDAs), and formulation dossiers, globally.

We own a widespread product portfolio spanning major therapeutic and product areas, namely, CNS, Anti-Retroviral, CVS, Antibiotics, Gastroenterological, Anti-Diabetics and Anti-Allergic. We aim to develop complex molecules, differentiated offerings, broad-spectrum products, and newer technologies to scale-up the global healthcare sector. We are continuously expanding our horizons led by backward integration into the key starting materials (KSMs) and intermediates. Building on the foundation of being one of the worlds largest integrated pharmaceutical companies, we are leveraging our strengths across generics and APIs while creating momentum through biosimilars, biologics manufacturing, and complex therapies.

Manufacturing review

During the year, seven units received EIRs from the US FDA, and the Company has successfully ramped up the manufacturing facility in China as well as the backward integration plants of Pen-G and 6-APA. APL also has two manufacturing facilities under the construction stage one in the US and the other in India. Post commercialisation of the units mentioned above, APL will have operational manufacturing capabilities in complex generic products, including injectables, inhalers, topical and transdermal products, biosimilars and biologics CMO.

PERFORMANCE OVERVIEW Formulations business

During FY26, our Formulations business (including Puerto Rico) clocked 29,606 crore revenue, constituting 88% of the total revenue. The US and Europe accounted for 73% of the total revenue. Over 50 billion units of different dosage forms, such as tablets, capsules, injectables, etc., were successfully manufactured in our 19 state-of-the-art formulation manufacturing facilities spread across India, Portugal, the US, and Brazil.

US formulations

During FY26, our US formulations business was marginally down 3% y-o-y to 14,408 crore primarily impacted by lower transient product sales. In dollar terms, revenue stood at USD 1,631 million. We maintained our top position in terms of prescription volume share in the US as per IQVIA data for the quarter ended March 2026. We have a strong presence across generic orals, injectables, OTC, and branded oncology segments. During the year, we launched 42 products within the US formulations segment, including specialty products.

Europe formulations

Ranked among the top 10 generic pharmaceutical companies in eight of the ten countries where we operate—including four of the top five EU markets—we have established a strong presence across Europe and the UK. Our comprehensive commercial infrastructure spans pharmacy, hospital, and tender sales channels. France and the Netherlands are our top two markets in Europe, together contributing 31% of our total revenue from the region.

During FY26, our Europe formulations segment revenue scaled the significant milestone of €1 billion and grew 23% y-o-y to 10,315 crore led by higher volumes and new product launches. In Euro terms, revenue grew 9% y-o-y to EUR 1,007 million. The consistent efforts to improve profitability of the European business has resulted in improved margins driven by increased share of inhouse supplies and the Company is focusing on further enhancing the capacities to cater the increasing demand.

Growth Markets formulations

During FY26, our Growth Markets saw a strong sales growth of 10% y-o-y to 3,499 crore or USD 397 million, driven by successful geographical expansion and strong sales momentum. The segment contributed to 10 % of the total revenue of the Company. Indonesian market coupled with other key markets such as Canada, South Africa have witnessed good traction. The other key markets include Canada, the Domestic market (India), Mexico, and Brazil. Domestic formulation sales stood at

302 crore during the year.

ARV formulations

During the year, the ARV business posted a strong growth of 34% y-o-y to 1,384 crore or USD 157 million driven by additional business opportunities.

API business

During FY26, the API segment reported a 6% decline y-o-y to 4,047 crore. impacted by global market dynamics and pricing pressures which were partly offset by the volume gains and improved asset utilisation. The business accounted for 12% of the total revenue.

We continue to strive to supply superior quality APIs meeting stringent requirements. We employ strict cost control and efficiency measures in R&D, supply chain, and manufacturing operations.

OPERATIONAL PERFORMANCE

• Recorded revenue of 33,653 crore, EBITDA of

6,856 crore, with EBITDA margin at 20.4%

• Research & Development (R&D including depreciation) spend was 1,590 crore, ~5% of revenue

• Filed 29 ANDAs with the US FDA, of which 4 are specialty products

• Received final approval for 37 ANDAs from the US FDA of which 3 are specialty products

• Launched 42 products in USA

FINANCIAL PERFORMANCE

Particulars ( Crore)	FY26	FY25	Y-o-Y% growth
Revenue from Operations	33,653	31,724	6.1%
Other Income	492	622	-20.9%
Total Income	34,145	32,346	5.6%
EBITDA	6,856	6,605	3.8%
EBITDA margin	20.4%	20.8%	-45 bps
PAT	3,503	3,484	0.6%
PAT margin	10.4%	11.0%	-57bps

Significant Financial Ratios

Ratios	March 31, 2026	March 31, 2025
DebtorsTurnover	5.2	6.0
InventoryTurnover	3.0	3.1
Interest Coverage Ratio	14.5	12.2
Current Ratio	1.8	1.9
Debt Equity Ratio	0.03	0.08
Operating Profit Margin	20.4%	20.8%
(%) (EBITDA margin %)
Net Profit Margin (%)	10.4%	11.0%
Return on Equity (ROE)%	9.9%	11.1%
Cash conversion cycle	217	201
Return on Capital	12.9%	14.5%
Employed
Fixed asset turnover	2.1	2.1

OUTLOOK

We continue to see multiple growth levers through expansion of the base business, new product launches (Adquey - topical ointment), the ongoing acquisition (Lannett), and the expanding pipeline across oral, transdermal and respiratory products from our Dayton and Raleigh facilities.

Our backward integration efforts across Pen-G, 6-APA and Amoxicillin continue to strengthen supply security, reduce import dependency and improve long-term margin profile. Based on current operating levels, we expect annualised Pen-G production to exceed 10,000 metric tonnes, with capacity utilisation levels exceeding 80% at consistent yields.

Biosimilars and Biologics

Aurobindo Pharma continues to strengthen its presence in the global biologics market through the advancement of its biosimilars portfolio and biologics contract manufacturing platform. During the year, the Company made meaningful progress across commercialisation, strategic partnerships, regulatory approvals, pipeline development and manufacturing capacity expansion, reinforcing the foundations for long-term growth.

The biosimilars business continued to advance its commercialisation strategy across Europe. During the year, supplies were initiated to key markets including France, Germany, Portugal and the United Kingdom to support product launches and market expansion. Following the successful launch of Bevqolva in the UK, the Company expanded its commercial portfolio with Dazublys, Zefylti and Dyrupeg, further strengthening its presence in regulated markets and enhancing patient access to high-quality biologic therapies.

To accelerate commercialisation and broaden market reach, CuraTeQ entered into a supply and distribution agreement with STADA for two EMA-approved biosimilars across select European territories, including France and Germany. The Company is also pursuing partnerships across additional growth markets to expand its global footprint, strengthen market access and maximise the value of its biosimilar portfolio.

The regulatory and development pipeline continued to advance steadily. During the year, Dyrupeg and Bevqolva received approvals from Health Canada, while two additional biosimilar applications remain under review, with approvals expected during 2026. The Company also remains on track to file its Denosumab biosimilar with the European Medicines Agency during 2026, followed by a filing with the US FDA, further strengthening its late-stage biosimilars pipeline.

In biologics contract manufacturing, the Company achieved a significant milestone with the launch of TheraNym, its biologics CMO platform. Commissioning activities for TheraNym Unit 1, a 60 kL integrated mammalian cell culture facility, are progressing as planned and are expected to be fully completed by the end of 2026. The facility is expected to provide large-scale, end-to-end biologics manufacturing capabilities and strengthen the Companys position in the rapidly growing global biologics outsourcing market.

To support future growth and ensure long-term manufacturing-readiness, the Company is expanding both bulk drug substance manufacturing and fill-finish capacities. These investments are intended to support the growing product portfolio and align manufacturing capabilities with anticipated demand beyond 2028.

Collectively, these developments reflect the Companys strategic expansion into higher-value biologics opportunities. With growing commercial traction, a strengthening regulatory pipeline, expanding manufacturing capabilities and the emergence of its biologics CMO platform, Aurobindo Pharma is well positioned to create sustainable growth drivers for the future. Going forward, the Company remains focused on disciplined execution, operational excellence, prudent capital allocation and long-term value creation for all stakeholders.

HUMAN RESOURCES

Human capital is a crucial aspect of the organisation. We provide a conducive, safe, productive and diverse work culture fostering inclusivity and equality irrespective of gender and/or religion. Across business functions, several training and development programmes are conducted through tie-ups with reputed institutions. We offer leadership development through training, coaching, and mentorship programs. We strive to use technology for effective talent development, employee engagement, and performance management. We enable our dynamic and resilient team to make effective decisions to further organisational growth. We empower our employees to be able to align personal goals with organisational goals. We remain committed to prioritising employee health and well-being. We strive to encourage, value and reward all employee efforts. We continue to realign our strategies as per the ever-evolving macro environment, as deemed fit. Various projects are undertaken to integrate our global workforce, in conjunction with a collaborative environment. As of March 31, 2026, the Company had a total of 27,000+ permanent employees and 13,000+ contractual employees.

— Read more on pages 116 of this Report

RISK MANAGEMENT

We recognise risk management as an indispensable part of our organisational structure to help us achieve our objectives. We have a comprehensive Enterprise Risk Management (ERM) framework in place to be able to proactively tackle all major risks, both internal and external, and ensure strict compliance with all applicable rule and regulations. The ERM is designed to strengthen our brand equity and ensure a robust financial health. ERM is an important aspect to ensure business continuity.

The ERM has been developed by the Treadway Commission, and is based on the COSO ERM Framework 2017. With a view to minimise the impact of any foreseeable risks on business operations, the ERM framework helps in risk identification, assessment and devising adequate strategies. This enables us to remain competitive and leverage market opportunities to be able to maximise enterprise value for all stakeholders. The risk management policy along with our quarterly financial results are reviewed by the Board of Directors on a regular basis.

The risk management process covers all important aspects of the business, ensuring proper designing and execution in line with organisational goals. All risks are addressed across all key business functions.

INTERNAL CONTROL SYSTEMS

Keeping in mind the size and complexity of our business operations, we have built a robust internal control framework which enables us to protect our assets, restrict unauthorised use or disposition, and ensures strict regulatory compliance. The internal control system is responsible for strict compliance with corporate policies, complete authorisation, recording and reporting of all business transactions, prevention of frauds and errors, protection of sensitive data, and maintaining proper accounting controls. Other important functions include preparation of reliable financial and other records, monitoring operations, ensuring proper execution of authorised transactions, and aiding the audit process. The internal control system thus results in optimal resource utilisation resulting in better operational efficiency and productivity.

Business-specific compliances are periodically audited and reviewed by specialised third-party consultants and professionals. An Audit Committee is commissioned to ensure effective monitoring of business operations and proper functioning of the internal audit functions. The Committee is responsible of reviewing the observations of the internal audit, periodically, and recommend appropriate actions. The evaluation of the existence and adequacy of operations is the primary objective of the internal assessment, in addition to ensure strict compliance with Companies Act, 2013, SEBI Listing regulations and policies of the Company. The internal controls aid in timely detection and prompt redressal of any variations in business operations.

CAUTIONARY STATEMENT

This document contains forward-looking statements regarding expected future events and financial and operating results of Aurobindo Pharma Limited. As these statements rely on assumptions, they are inherently subject to risks and uncertainties. There is a significant risk that these assumptions and predictions may not prove to be accurate. Readers are cautioned against placing undue reliance on forward-looking statements, as various factors could cause actual future results and events to differ materially from those expressed in these statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications, and risk factors outlined in the Managements Discussion and Analysis of the Annual Report for FY26.