Bacil Pharma Ltd Management Discussions

For the Financial Year 2024 25

[As required under Regulation 34(2)(e) of the SEBI (LODR) Regulations, 2015 and Section 134 of the Companies Act, 2013]

1. Industry Structure and Developments

The Indian pharmaceutical industry continues to be a key player in the global healthcare ecosystem. With India being one of the largest providers of generic medicines worldwide, the sector is recognized for its high-quality standards, affordable pricing, and robust research capabilities. The governments initiatives such as the Production Linked Incentive (PLI) scheme, enhanced regulatory frameworks, and R&D encouragement are expected to further bolster the growth of the sector. In FY 2024 25, the industry witnessed increasing integration of digital technology, AI-led drug discovery, and backward integration by major players. However, price control regulations, dependency on imported APIs, and global supply chain disruptions remained key concerns.

2. Business Overview and Operational Highlights

BACIL Pharma Limited is primarily engaged in healthcare solutions focusing on the development, manufacturing, and distribution of pharmaceutical formulations including tablets, capsules, ointments, injectables, and specialty products. All operations comply with the relevant regulatory and quality standards. Though the Company did not generate revenue from its core business activities in FY 2024 25, it recorded a significant improvement in its financial position due to increase in other income. The Company also strategically acquired a 29.81% stake in CNX Corporation Limited, making it an associate company.

3. Financial Performance Overview (Standalone)

Particulars	FY 2024 25 (	in Lakhs) FY 2023 24 ( in Lakhs)
Total Revenue	66.14	13.05
Total Expenses	25.39	18.95
Profit Before Tax	40.76	(5.90)
Profit After Tax	40.05	11.38
Earnings Per Share ( )	0.69	(0.10)

The increase in revenue was mainly attributable to other income and prudent cost control measures. The company reported a net turnaround from a loss in FY 2023 24 to a healthy profit in FY 2024 25.

4. Opportunities and Threats Opportunities:

? Rising demand for affordable medicines in emerging markets.

? Increasing government focus on domestic manufacturing and R&D.

? Strategic investment in CNX Corporation Limited opening new business synergies.

Threats:

? Regulatory compliance complexities.

? Volatility in raw material pricing.

? Global geopolitical tensions affecting pharma supply chains.

5. Outlook

The Company is optimistic about its growth trajectory and is actively exploring operational expansion and revenue generation strategies in core pharmaceutical verticals. The investment in CNX Corporation is expected to unlock strategic value in the coming years. BACIL Pharma continues to explore further investment opportunities and product innovation.

6. Risks and Concerns

The Company has a structured risk management framework in place. Key risks include: ? Non-receipt of regulatory approvals for new product lines.

? Market entry of low-cost competitors.

? Currency fluctuations affecting import costs.

Risk mitigation strategies involve internal audits, compliance monitoring, and diversification of vendor base.

7. Internal Control Systems and Adequacy

The Company has established internal control systems aligned with the size and complexity of its operations. Internal Audit is conducted periodically, and findings are reported to the Audit Committee. The systems are reviewed for effectiveness and strengthened where necessary.

8. Human Resources / Industrial Relations

BACIL Pharma places high value on its human capital. During FY 2024 25, the company maintained cordial employee relations and continued to focus on employee development and regulatory training. As of March 31, 2025, the company had an adequate number of employees across departments.

9. Cautionary Statement

This report contains forward-looking statements that involve risks and uncertainties. Actual results, performance, or achievements could differ materially from those expressed or implied. The Company assumes no obligation to publicly revise any such forward-looking statements to reflect future events or circumstances.

For & on behalf of the Board of
Directors
BACIL PHARMA
LIMITED
	Sd/-
REGISTERED OFFICE
Office G2/G3, Samarpan Complex, Next To	CHAITALI KALPATARU SHAH
Mirador Hotel, Link Road, Opp Satam	Director
Wadi, Chakala, Andheri (East), Sahar P & T	DIN: 11167778
Colony, Mumbai, Maharashtra, India,
400099
Place: Mumbai
Date: 05/09/2025