Bliss GVS Pharma Ltd Management Discussions

ANNEXURE - VII TO BOARDS REPORT

Economic Overview

Global Economy

The global economy demonstrated resilience in CY 2025 despite heightened trade tensions and policy uncertainty. Growth was supported by front-loading of trade, supply chain realignment, relatively accommodative financial conditions and sustained investment in technology, resulting in global GDP expansion of 3.4%.

Improved supply chain efficiency and a gradual moderation in labour markets contributed to easing inflationary pressures, with global inflation declining to 4.1%. This, along with broadly stable capital flows and reduced currency volatility, provided central banks with greater policy flexibility and enabled a measured and calibrated easing of monetary conditions.

Global trade remained steady, supported in part by preemptive shipment acceleration ahead of anticipated tariff revisions, particularly in pharmaceuticals and chemicals. However, underlying trade dynamics continued to be shaped by evolving trade policies and tariff structures.

Growthperformancevariedacrossregions.Advancedeconomies expanded by 1.9%, with the United States maintaining steady momentum driven by domestic consumption and continued investment in advanced technologies. Emerging market and developing economies recorded stronger growth of 4.4%, supported by export stability in China and consistent trade activity across several Asian economies.

Outlook1

The global outlook continues to be shaped by shifting trade policies and fiscal pressures. Despite these challenges, global GDP growth is projected at 3.1% in CY 2026, supported by sustained policy interventions and resilient domestic demand aided by monetary easing measures. Further, growth in sub-Saharan Africa is projected at 4.3% in CY 2026, supported by macroeconomic stabilisation and structural reform initiatives in primary economies.

Geopolitical tensions in West Asia continue to disrupt global energy supply chains and trade flows, fuelling inflationary pressures. If the crisis persists, it could weigh on global economic growth and weaken investor confidence over the medium term. Consequently, inflation is projected to edge up to 4.4% in CY 2026, before declining to 3.7% in CY 2027, due to easing labour market conditions and subdued demand for tradable goods.

Currency movements are likely to remain broadly stable, alongside a moderation in wage growth. In this context, central banks may continue to pursue a calibrated approach to monetary easing, which could support overall economic activity.

Indian Economy

In FY 2026, the Indian economy sustained strong growth momentum, supported by a recovery in urban consumption due to tax rationalisation measures. Despite a challenging external environment, real GDP grew by 7.7%, reinforcing Indias position among the fastest-growing major economies. Inflation remained moderate during the year, with the Consumer Price Index (CPI) around 3.48%, supported by improved supply chains and lower input costs.

On the supply side, industrial activity strengthened, with manufacturing sectors contributing meaningfully to overall output. In particular, the pharmaceuticals and medicinal chemicals segment recorded healthy growth, supported by steady demand and capacity expansion.

Policy support remained an important driver of industrial development. Government initiatives such as the Production Linked Incentive (PLI) schemes continued to encourage domestic manufacturing, reduce import dependence and enhance export competitiveness across pharmaceuticals, bulk drugs and medical devices. These measures are facilitating capacity creation, improving infrastructure and reinforcing Indias standing as a global pharmaceutical manufacturing hub.

Indias current account deficit widened during the year, primarily due to an increase in the merchandise trade deficit. While capital remained uneven, foreign exchange reserves continued to provide a reasonable buffer against external volatility.

Outlook5

The Indian economy is likely to remain uncertain and projected at 6.6% in FY 2026-27. This outlook is supported by relatively stable inflation and supportive supply-side dynamics, which are likely to sustain consumption and investment activity. However, prolonged global supply chain disruptions, heightened volatility in global financial markets, and weather-related shocks continue to pose downside risks to the domestic growth outlook.

Despite these challenges, inflation is projected at 5.1%, supported by favourable supply-side conditions, including adequate reservoir levels and the continued benefits of GST rate rationalisation.

Trade and policy developments are anticipated to create additional opportunities for major sectors. A proposed Free Trade Agreement between India and the European Union is likely to enhance market access for pharmaceuticals and medical devices, improve cost competitiveness through tariff liberalisation and support export growth over the medium term.

Industry Overview

Global Pharmaceutical Industry

Pharmaceuticals play a critical role in public health and economic development by preventing and treating chronic diseases, enhancing quality of life and supporting sustainable economic growth. The global pharmaceutical market is witnessing robust expansion, driven by rising demand for innovative therapies and the increasing healthcare needs of an aging population. The market was valued at $ 1772.65 billion in 2025 and is projected to grow steadily, reaching $ 1881.67 billion in 2026 and $ 3219.76 billion by 2035 at a Compound Annual Growth Rate (CAGR) of 6.15%7.

Ongoing trends in disease treatment, coupled with the accelerated adoption of innovative therapies, are contributing to a sustained increase in global medicine consumption. Policy changes, trade dynamics and technological advancements are reshaping medicine use and spending worldwide. By 2030, global medicine consumption is expected to approach four trillion doses, with China accounting for most of the growth while mature markets remain largely stable8.

Spending and growth by regions9 North America

North America accounts for 36% of the global pharmaceutical market in 2025 and is projected to reach $671.37 billion in 2026. Market growth is driven by advanced clinical research infrastructure, high rates of drug approvals, innovation, substantial healthcare expenditure and an aging population.

Europe

Europe is expected to remain the second-largest market, driven by rising disease prevalence, increased R&D investments, adoption of AI and continued product launches and strategic collaborations.

Asia Pacific

The Asia Pacific region is projected to experience the fastest growth, fuelled by heightened awareness of disease management, strong demand for innovative medicines and increased investments and partnerships that enhance healthcare accessibility.

Latin America

The Latin American pharmaceutical market is anticipated to reach $ 104.22 billion in 2026. Growth is underpinned by rising demand for specialty drugs, expanding health insurance coverage, increased healthcare investments and contributions from key markets such as Brazil, Mexico and Argentina through local manufacturing, imports and strategic partnerships.

Indian Pharmaceutical Industry10

Over the years, the Indian pharmaceutical sector has evolved into a critical, high-impact industry, establishing India as one of the largest and most advanced producers of medicines globally. With more than 3,000 companies and 10,500 manufacturing units, the industry ranks 3rd globally by volume and 11th by value. India is known as the ‘Pharmacy of the World for supplying high-quality, affordable medicines that enjoy wide acceptance across international markets. Efficient manufacturing, supported by a skilled scientific workforce and large-scale production capabilities, ensures a consistent supply of essential medicines without compromising quality standards.

Emerging technologies, particularly AI, are becoming a key growth driver by accelerating R&D, enabling personalized medicine, strengthening supply chains, and enhancing sustainability. These developments are transforming India from a supplier of affordable medicines into a leader in healthcare innovation.

Government initiatives like the Production Linked Incentive (PLI) schemes are driving domestic pharmaceutical manufacturing and lowering import reliance. These programs have successfully averted 3,591 crore in imports of key starting materials, drug intermediates, and Active Pharmaceutical Ingredients (APIs). This achievement upgrades national self-reliance and scales up Indias production capabilities.

To further promote medical tourism, the Government announced plans in Budget 2026–27 to establish five integrated medical hubs offering diagnostic and rehabilitation services in collaboration with the private sector. India is poised to assume a greater role in global healthcare, reflecting significant progress from earlier public health challenges.

Trends and Innovations

Global Growth and Export Strength

India continues to be the worlds largest supplier of generic medicines, contributing around 20% of global supply and producing nearly 60,000 brands across 60 therapeutic categories1. Strong export performance, coupled with steady foreign investment, reflects global confidence in Indias quality standards and reinforces its position as a key driver of affordable healthcare worldwide.

Policy Support and Quality Improvement

Government initiatives are enhancing sector competitiveness and affordability. Reforms such as GST 2.0 have streamlined taxation, while the revised Schedule M has strengthened manufacturing quality in line with global standards. Planned alignment with ICH and PICs is expected to improve international acceptance of Indian pharmaceutical products further.

Regulatory Reforms and Innovation Push

Ongoing regulatory reforms are enabling faster approvals, increased digitalisation and improved ease of doing business. These developments are supporting Indias shift from being the ‘pharmacy of the world to an innovation-driven pharmaceutical hub.

Growth opportunities

Expanding Trade Agreements and Global Access

Indias expanding trade partnerships with regions such as Europe, Africa and New Zealand are enhancing market access for pharmaceuticals and medical devices. These agreements are expected to boost exports, attract investment, and strengthen Indias position as a reliable supplier of affordable healthcare solutions.

Market Diversification and Export Stability

Indian pharmaceutical exporters are expanding into emerging and new markets, including Nigeria, Tanzania and France across bulk drugs, surgical products and formulations. This diversification reduces reliance on specific countries and enhances resilience against trade disruptions and tariff-related risks.

Global Partnerships and Collaboration Opportunities

Collaboration with global pharmaceutical companies, research institutions and healthcare systems are becoming central to innovation. The evolving market dynamics, Indian pharma companies are viewed as partners in development and manufacturing alongside their role as suppliers across global markets.

China Plus One Opportunity

Geopolitical shifts with China are encouraging global companies to diversify sourcing, creating opportunities for India. Increased partnerships with Indian Contract Development and Manufacturing Organisations (CDMOs) and investments in advanced capabilities are strengthening Indias position in high-value pharmaceutical manufacturing. The global CRDMO market is expected to reach $303 billion by 2028, further strengthening Indias role in high-value pharma manufacturing and innovation1.

Growth of Global Capability Centres (GCCs)

Approximately 50% of leading global pharmaceutical companies have established Global Capability Centres (GCCs) in India. Utilising local talent and digital capabilities, these centres are evolving into strategic innovation hubs, using AI, analytics and automation, to enhance drug discovery and development, strengthening Indias role as a global innovation hub1.

Challenges

Geopolitical Challenges and Supply Chain Risks

Global geopolitical tensions, including US–China trade dynamics, are reshaping supply chains and encouraging localisation. While this presents opportunities for India, dependence on limited source for APIs and critical materials remains a key risk.

Rising Trade Barriers and Regulatory Pressure

Increased trade protectionism, higher tariffs and stringent import regulations are creating uncertainty for exporters. Additionally, tighter compliance requirements in key markets such as the US and EU are raising costs and extending approval timelines.

Pricing Pressure and Buyer Consolidation

Pricing pressure and consolidation among buyers in major export markets are impacting margins in the generics segment. However, companies focusing on quality, compliance, and innovation are better positioned to navigate these challenges and capture greater global market share.

African Pharmaceutical Industry

TheMiddleEastandAfricapharmaceuticalmarketisexpected to reach $ 80.05 billion in 2025 and grow to approximately $ 141.3 billion by 2034, at a compound annual growth rate (CAGR) of 6.52%. Market expansion is driven by the rising prevalence of chronic diseases, increasing healthcare expenditure and strong government support for local manufacturing and healthcare infrastructure development.

Growth is sustained by improved access to medicines, the increasing adoption of digital health technologies, and regulatory advancements, including initiatives led by the African Medicines Agency (AMA) to streamline approval processes. However, structural challenges remain, including fragmented regulations, high dependence on imported APIs and the presence of substandard and counterfeit medicines1.

In Sub-Saharan Africa, sectoral growth is driven by high disease burden, increased international aid and investment alongside expanding health insurance coverage and supportive government policies. Additionally, there is a growing on emphasis on local manufacturing and public–private partnerships to strengthen healthcare delivery systems.

Key Trends and Growth Opportunities Digitalisation and E-Health Growth

The adoption of e-health solutions, telemedicine and digital prescription systems is enhancing access to healthcare services and improving operational efficiency. These technologies facilitate patient adherence monitoring, automate pharmacy operations and support informed clinical decision-making. As digital infrastructure continues to grow, it is expected to drive innovation, improve patient outcomes and enhance efficiency across the pharma value chain.

Rising Demand for Affordable Medicines

Emerging African markets present significant growth opportunities for pharmaceutical companies, backed by rising demand for affordable and accessible medicines, particularly in urban centres. Supportive regulatory frameworks and government incentives are further encouraging investments in local manufacturing and distribution capabilities.

AI Transformation in Pharmaceutical R&D

Within research and development (R&D) and drug discovery, AI-assisted algorithms optimize processes by selecting the right candidate molecules, screening vast chemical libraries, and accelerating lead identification. Ultimately, these targeted computational capabilities successfully minimize both the time and financial costs of bringing new therapies to light.

Regulatory and Trade Acceleration

Regulatory harmonization initiatives and cross-border partnerships are accelerating drug approvals and market access across Africa. Collaborative trade frameworks and regional cooperation enable manufacturers to expand beyond single-country operations. This shift unlocks greater scale and ensures long-term sustainability for pharmaceutical innovation on the continent.

Africa Posing Opportunities for India High Potential Market

Africa is an increasingly vital export market for Indian pharmaceutical firms. As improving African healthcare systems drive demand for affordable medicines, Indian companies are strategically positioned to support this growth, aided by bilateral trade agreements that streamline regulatory processes.

R&D Investments

Africa faces severe health challenges from infectious diseases like malaria and tuberculosis, alongside rising chronic conditions like diabetes and hypertension. Indian pharmaceutical companies can address these by investing in R&D for tailored treatments. Partnering with African research institutes can accelerate drug development and innovation while facilitating the transfer of cutting-edge medical technologies.

Supply Chain Diversification

Geopolitical shifts and Western price erosion have forced Indian pharma conglomerates to strategically pivot their export focus. Emerging markets in Africa (such as Nigeria) have seen significant export growth, allowing Indian firms to command better margins on branded generics compared to highly commoditized markets.

Capacity Building & Joint Ventures

To reduce dependency on imports, African governments are increasingly pushing for regional manufacturing hubs. This shift creates lucrative opportunities for Indian firms to participate in joint ventures, technology transfers, and contract manufacturing (CDMO services) to help build local African ecosystems.

Company Overview

Bliss GVS Pharma Limited, established in 1984, is engaged in the manufacturing, marketing, trading and exporting of pharmaceutical formulations, including suppositories, pessaries, capsules, tablets and syrups, catering to international markets.

Headquartered in Mumbai, India, the Company is recognised as one of the worlds leading manufacturers of suppositories and pessaries, with over four decades of expertise in these specialised dosage forms. It has established a strong global presence across countries, with a particularly robust footprint in Sub-Saharan Africa. Backed by a legacy rooted in quality, innovation and trust, the Companys formulations serve diverse healthcare systems worldwide, reflecting its commitment to delivering reliable and impactful therapeutic solutions.

The Companys research and development centre, certified by Indias Department of Scientific and Industrial Research (DSIR), is equipped with pilot-scale capabilities, advanced analytical laboratories for method validation and ICH-compliant stability chambers. Its manufacturing facilities comply with stringent global standards, including EU GMP, US FDA, WHO GMP, OHSAS-18001:2007 and ISO14001:2004 certification, providing a robust and sustainable platform for the development and delivery of high-quality pharmaceutical products. This operational framework is backed by an exceptionally strong capital structure reflecting net-zero debt, alongside a continuous corporate commitment to strict working capital optimisation.

Human Resource Management

Bliss GVS Pharma Limited views its employees as a vital asset and is strongly committed to cultivating a safe, inclusive, and engaging workplace. The Company utilizes comprehensive handbooks and a strict Code of Conduct to keep personnel thoroughly informed about their rights, duties, and corporate policies. Workplace safety is prioritized through a robust Environmental, Health, and Safety (EHS) policy alongside compliance with certified industrial hygiene standards. To align the workforce with corporate objectives, the Company consistently communicates its vision, mission, and strategic goals across all levels, embedding them directly into performance management frameworks like goal setting, evaluations, and incentives. Additionally, Bliss GVS promotes cross-functional collaboration to build a shared purpose, utilizing routine performance reviews and check-ins to maintain continuous alignment. Finally, employee motivation and professional advancement are driven by targeted skill development workshops and engagement programs, cementing the organizations dedication to comprehensive workforce development.

Research and Development

The Companys R&D function, recognised by the Department of Scientific and Industrial Research (DSIR), Government of India, plays a key role in fostering an innovation-driven culture across the organisation. The team comprises skilled professionals specialising in formulation and analytical development, focused on developing safe, effective and regulatory-compliant pharmaceutical products that address the evolving needs of patients.

in specialised pharmaceutical manufacturing. The Company delivers high-quality products by leveraging advanced technologies, robust operational systems and stringent safety practices, supported by a reliable and sustainable infrastructure.

Its manufacturing facilities comply with current Good Manufacturing Practices (cGMP) and are certified by leading global and domestic regulatory authorities, including the US FDA, WHO-GMP, OHSAS 18001:2007 and ISO 14001:2004, emphasising on its commitment to international quality and compliance benchmarks.

The Company is equipped with pilot-scale technology, advanced global compliance tools and precision laboratories to accelerate the transition of formulations from development to commercialisation. Its pilot facilities replicate production-scale conditions, while analytical laboratories support method validation, complemented by ICH-compliant stability chambers.

Risk Management

Risk particulars	Mitigation strategy
Changesindemand,pricingpressures and currency exchange rates may impact consumer confidence and affect overall performance.	The Company diversifies its geographic presence to reduce dependency on any single market. It adopts dynamic pricing strategies and conducts periodic reviews to remain competitive.
	A robust hedging framework is implemented to manage foreign exchange exposure. Additionally, the Company utilises data analytics to monitor market trends and customer preferences, enabling proactive strategic adjustments and strengthening long-term customer relationships.
Failure to comply with applicable laws, regulations and guidelines set by pharmaceutical authorities may lead to legal consequences, penalties and reputational damage.	A dedicated regulatory team ensures adherence to all applicable laws and guidelines, supported by continuous monitoring and internal controls.
Disruptions arising from transportation challenges, geopolitical factors, or supply shortages may delay procurement and production.	The Company diversifies its supplier base and maintains adequate inventory of critical materials to mitigate potential disruptions.
Exposure to currency fluctuations may impact profitability due to the Companys international operations.	The Company manages currency risk through a structured hedging strategy, using forward contracts to lock in exchange rates. It aligns hedging decisions with projected cash flows, undertakes natural hedging where feasible and periodically reviews its hedging policy in line with market conditions and business requirements.

Financial Performance

Standalone ( in Lakh)

Particulars	FY 2025-2026	FY 2024-2025	Change Y-O-Y
Revenue	72,980.76	66,720.46	9.38%
EBITDA	13,403.45	9,158.56	46.35%
PBT before Exceptional Items	13,562.01	9,417.11	44.01%
PBT	13,346.46	9,417.11	41.72%
PAT	9,687.44	6,896.87	40.46%

Consolidated ( in Lakh)

Particulars	FY 2025-2026	FY 2024-2025	Change Y-O-Y
Revenue	92,711.28	80,972.62	14.50%
EBITDA	16,403.67	12,668.33	29.50%
PBT before Exceptional Items	19,207.63	12,563.92	52.88%
PBT	18,958.92	12,563.92	50.90%
PAT	13,472.77	9,025.53	49.27%

Key Financial Ratios (Standalone)

S. No Particulars	FY 2025-2026	FY 2024-2025	Change	Comments
1 Current Ratio (times)	4.90	6.13	-20%	Below threshold
2 Debt-Equity Ratio (times)	0.01	0.06	-82%	Repayment of borrowing in current year
3 Debt Service Coverage Ratio (times)	2.99	1.64	82%	Repayment of borrowing in current year
4 Return on Equity Ratio (%)	8.75%	6.74%	30%	Higher profitability in the current year
5 Inventory Turnover Ratio (times)	3.55	4.04	-12%	Below threshold
6 Trade Receivables Turnover Ratio (times)	1.65	1.80	-8%	Below threshold
7 Trade Payable Turnover Ratio (times)	4.75	5.90	-20%	Below threshold
8 Net Capital Turnover Ratio (times)	1.11	1.04	7%	Below threshold
9 Net Profit Ratio (%)	13.27%	10.34%	28%	Higher profitability in the current year
10 Return on Capital Employed (%)	13.00%	9.00%	44%	Higher profitability in the current year
11 Return on Investment (Fixed deposit) (%)	7.10%	7.05%	1%	Below threshold

Outlook

Bliss GVS Pharma is committed to upholding the highest standards in the pharmaceutical industry while focusing on building strong, future-ready capabilities that drive long-term growth, innovation and resilience.

Internal Control Systems and their adequacy

To ensure accurate recording of financial and operational information and compliance with various internal controls, statutory requirements and other regulatory compliances, the Company has a strong internal financial control system proportionate to the size, scale and complexity of its operations.

No significant observation regarding the effectiveness or appropriateness of such controls was made by the Companys internal auditors throughout the assessment period. The finance department closely monitors and assesses the effectiveness and sufficiency of the Companys internal control system, as well as its compliance with operational systems, accounting procedures and internal regulations at all of the Companys locations.

The effectiveness of the internal financial control system in the Company has been assessed and monitored by M/s. Kalyaniwalla & Mistry LLP, Chartered Accountants and Statutory Auditors of the Company. It complies with the Companys operating system, accounting practices and standards at all of its sites.

Corrective measures are performed in the relevant areas and controls are improved following the results of the Internal Audit functions report. The Audit Committee of the Board is given a presentation outlining any major audit observations, recommendations and recommended corrective action. In order to correctly manage the books of account and publish financial statements, the Company complies with all applicable Indian Accounting Standards.

Cautionary statement

The Management Discussion and Analysis (MDA) section may contain forward-looking statements regarding potential future developments. These statements involve known and unknown risks and uncertainties that could materially affect results. In addition to macro-environmental changes, a worldwide pandemic could introduce unforeseen, unprecedented and continuously evolving risks to the Company and its operating environment. The facts and figures in the report are derived from assumptions based on available internal and external data, making them susceptible to change as underlying variables are dynamic. Any forward-looking statement made in this context reflects the Companys current intentions, beliefs or assumptions as of the date it was made. The Company does not undertake to update or revise any forward-looking statements, whether due to new data, unexpected developments or other factors.