Beta Drugs Ltd Management Discussions

In terms of Regulation 34 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 the Management Discussion and Analysis Report (MDAR) is structured as follows:

- INDUSTRY STRUCTURE, DEVELOPMENTS, OPPORTUNITIES & THREATS:

The global pharmaceutical market continues to expand, driven by rising healthcare needs, an ageing population, and the introduction of novel therapies. Oncology remains the fastest-growing therapeutic segment worldwide, propelled by lifestyle changes, earlier diagnosis, and the development of targeted and immune-based treatments. According to IQVIA projections, oncology is expected to account for a significant share of global medicine spending growth over the next decade.

In India, the pharmaceutical market is projected to reach US$38-42 billion by 2028, registering a 7-10% CAGR between 2024 and 2028.

Acute therapies such as anti-infectives and vitamins/minerals recorded improved volumes in 2023.Chronic therapies like cardiac and respiratory care continue to show steady demand. Oncology and immunology are anticipated to lead therapy area growth, supported by increasing patient populations, improved access, and rapid adoption of innovative drugs.

Within oncology, the Indian market is expected to deliver double-digit growth for many years, creating a long runway of opportunity for Beta Drugs.

• Competitive Position in Oncology-

Beta has established a significant presence in the branded oncology business in India, ranking among the top 10 oncology companies. Many of our flagship brands hold Top 5 positions in their respective categories. We have earned strong credibility among prescribers as a trusted, high-quality supplier of life-saving cancer medicines, making these treatments more affordable for large sections of society. Going forward, we aim to:

> Strengthen domestic leadership through robust brand-building focused on patient outcomes and clinical differentiation.

> Launch a large pipeline of innovative products targeting unmet needs and market "white spaces."

> Introduce oncology formulations in novel NDDS platforms — first-of-its-kind in India — over the next three years.

> Our R&D strengths include developing non-infringing processes for molecules going off-patent, addressing complex chemistry challenges, and creating advanced formulations across tablets, capsules, oral liquids, and injectables (solutions, suspensions, lyophilized).

• Strategic Growth Pillars-

Betas sustainable growth strategy in oncology rests on four core pillars:

> Brand Leadership - Building compelling brand equity for leading products through strong clinical differentiation.

> Innovation - Launching novel formulations addressing unmet needs in oncology.

> Integrated Manufacturing - Ensuring best-in-class quality through in-house capabilities and global quality accreditations.

> Global Expansion - Leveraging world-class Indian manufacturing to penetrate export geographies.

• API Integration & Operational Excellence

We entered the API business in 2018-2019 to enhance control over the supply chain. This backward integration has delivered:

> Higher margins and yields.

> Reduced reliance on external suppliers.

> Improved quality and supply reliability.

Currently, 70% of APIs for our formulations are manufactured in-house. API development will remain central to our new product launches and market leadership strategy, while API exports will further enhance operating leverage.Our expanded API production capacity and continuous process improvements position us to serve both domestic and international customers effectively.

• Exports & Global Opportunity

Beta is well positioned to leverage low-cost Indian manufacturing to capture market share in developing countries. We will continue expanding our formulations and API exports over the next three years, targeting leadership in high-quality oncology drugs globally.

• Risk Management Framework

Beta maintains a proactive risk management approach:

> Dedicated risk team continuously monitors market dynamics, commodity prices, currency fluctuations, and regulatory trends.

> Comprehensive asset insurance protects against unforeseen events.

> Preparedness for potential labour disruptions in a labour-intensive industry.

Our diversified revenue streams provide resilience, while our financial strength allows reinvestment in two key areas:

Commercial expansion - deepening domestic and international reach.

Pipeline & technology - strengthening R&D and manufacturing capabilities.

- RISK MANAGEMENT FRAMEWORK:

During the last three years, the company has increased its focus on building its innovative product pipeline in the oncology space and be ready to realize significant growth opportunities both domestically and globally. Your Company has continued to be the preferred supplier of many leading OEMSs and has been successful in expanding its approval base, adding leading players from the industry. Therefore, we expect that your Company will continue to be in a position to gradually expand its market reach and improve its market share. The Company regularly insures all its assets to enable itself in case of any mis-happening. The Company has formed a risk management team which constantly monitors the Indian and international markets and guides the management of any sort of prevailing risk to the company. The commodities prices being internationally traded are affected by the global market demand and supply forces and the dollar rate. The risk management team plays a major role here. Moreover, the industry is labour oriented and business operations of the Company may be materially affected by strikes, lock outs or work stoppage.

- SEGMENT WISE OR PRODUCT WISE PERFORMANCE:

Your company has only one segment that is trading and manufacturing of pharmaceutical products.

• OVERVIEW & OUTLOOK:

The Indian pharmaceutical market will likely grow substantially, with medicine spending expected to reach US$38-42 Billion by 2028, reflecting a CAGR of 7-10% between 2024 and 2028. Acute therapies like anti-infectives and vitamins/minerals saw improved volumes in 2023, while chronic therapies, including cardiac and respiratory segments, continue to perform well.

Oncology and immunology are expected to lead growth across therapy areas, driven by the introduction of new treatments and the expansion of patient populations. Oncology drugs market is expected to grow at a fast clip across the world primarily driven by an ageing population and lifestyle changes making population susceptible to cancer. In India the Oncology drugs market is expected market to grow in double digits for the next many years to come. Therefore, Beta Drugs being a leader in the oncology segment has long runaway ahead both in terms of opportunities and growth.

Our multiple segments of revenue provide us diversification benefits and substantial financial strength. Our financial strength enables us to reinvest in two key areas: building commercial capabilities both domestic and international and building a robust pipeline while expanding our technology capabilities.

- RISK AND CONCERNS:

During the last three years, the company has increased its focus on building its innovative product pipeline in the oncology space and be ready to realize significant growth opportunities both domestically and globally. Your Company has continued to be the preferred supplier of many leading OEMSs and has been successful in expanding its approval base, adding leading players from the industry. Therefore, we expect that your Company will continue to be in a position to gradually expand its market reach and improve its market share. The Company regularly insures all its assets to enable itself in case of any mis-happening.

The Company has formed a risk management team which constantly monitors the Indian and international markets and guides the management of any sort of prevailing risk to the company. The commodities prices being internationally traded are affected by the global market demand and supply forces and the dollar rate. The risk management team plays a major role here. Moreover, the industry is labour oriented and business operations of the Company may be materially affected by strikes, lock outs or work stoppage.

- INTERNAL CONTROL SYSTEM:

The Company has in place an adequate system of internal control commensurate with its size and nature of its business. These have been designed to provide reasonable assurance that all assets are safeguarded and protected against loss from unauthorized use or disposition and that all transactions are authorized, recorded and reported correctly and the business operations are conducted as per the prescribed policies and procedures of the Company. The Audit committee and the management have reviewed the adequacy of the internal control systems and suitable steps are taken to improve the same.

- FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE:

During the year, Revenue of the Company increased by 13.56% i.e. from Rs 19,935.01 lakhs to Rs 22,639.12 lakhs .Profit before tax is Rs 2,084.05 and Prof after tax is Rs 1,543.21 lakhs.

- HUMAN RESOURCES DEVELOPMENT AND INDUSTRIAL RELATIONS:

Your Company firmly believes that its human resources are the key enablers for the growth of the Company and important asset. Hence, the success of the Company is closely aligned to the goals of the human resources of the Company. Taking into this account, your Company continued to Invest in developing its human capital and establishing its brand on the market to attract and retain the best talent. Employee relations during the period under review continued to be healthy, cordial and harmonious at all levels and your Company is committed to maintain good relations with the employees.

- KEY FINANCIAL RATIOS:

Following are ratios for the current financial year and their comparison with preceding financial year:

Sr. No.	Ratios	As at March 31, 2025	As at March 31, 2024	Variance	Explanation for any change in the ratio by more than25% as compared to the preceding year
1	Debtor Turnover	4.45	4.20	5.82%
2	Inventory turnover	5.73	7.27	-21.15%
3	Interest coverage ratio	5.38	29.15	-81.54%	Profits reduced due to Extraordinary expenses pursuant to the preferential issue.
4	Current Ratio	4.18	2.38	75.15%	Due to Funds received from Compulsory Convertible Debentures being issued
5	Debt-Equity Ratio	1.00	0.05	1992.57%	Due to Compulsory Convertible Debentures being issued.
6	Operating Profit Margin(%)	11.62%	15.45%	-24.76%	Profits reduced due to Extraordinary expenses pursuant to the preferential issue.
7	Net Profit Margin (%)	7.01%	11.10%	-36.86%	Profits reduced due to Extraordinary expenses pursuant to the preferential issue & Interest Provision booked on CCD.
8	Return on Equity Ratio	11.96%	18.91%	-36.75%	Profits reduced due to Extraordinary expenses pursuant to the preferential issue & Interest Provision booked on CCD.

- CAUTIONARY STATEMENT:

Statement in this Management Discussion and Analysis Report, describing the Companys objectives, estimates and expectations may constitute Forward Looking Statements within the meaning of applicable laws or regulations. Actual results might differ materially from those either expressed or implied.

Dated: 03.09.2025	By Order of the Board of Directors
Place: Panchkula
	sd/-
	Rahul Batra
	Chairman & Managing Director
	(DIN: 02229234)