Blue Jet Healthcare Ltd Management Discussions

MACRO ECONOMY

Global Economy

The global economy in 2026 is navigating a delicate balance between resilience and rising downside risks, driven by geopolitical tensions and evolving macroeconomic conditions. Global growth is estimated at 3.1%, revised down from 3.3%, reflecting uncertainties such as Middle East conflicts and tighter financial conditions. Growth remains below historical averages, indicating a modest but stable expansion.

Inflation has re-emerged due disruptions in energy and commodity markets. Elevated oil prices and trade route disruptions have pushed inflation

Central banks are therefore expected to remain cautious on monetary easing, balancing inflation control with growth. The risk of stagflation, low growth with persistent inflation adverse scenarios.

Fiscal pressures are intensifying, with global public debt rising from about 94% of GDP in 2025 and potentially nearing 100% by decade-end.

Higher interest costs and increased government spending are straining fiscal balances, especially in emerging economies. Policymakers are likely to focus on targeted interventions and rebuilding buffers for long-term stability.

Regional divergence persists. Advanced economies benefit from resilient labour markets and technological investments, while emerging markets supply-side face challenges from commodity volatility, capital outflows, emerging economies is estimated at 3.9% in 2026, to around 4.4% in 2026. with energy-importing nations particularly affected.

Outlook

While selective improvements hasexist,increasedrisks remainunder skewed to the downside. Geopolitical tensions, high debt, and inflation technological progress and targeted fiscal support offer potential upside.

Indian Economy

Indias economic trajectory in FY 2025-26 is expected to witness a phase of moderated growth following the strong momentum seen in FY 2024-25, while still outperforming many global economies. GDP growth is anticipated to soften to 6.9%, compared to 7.6% in FY 2024-25, before strengthening again to 7.3% in FY 2026-27. This temporary slowdown is largely attributed to external headwinds, including geopolitical tensions, rising energy costs, and uncertainties in global trade and financial which may influence exports, capital inflows.

Despite these challenges, domestic demand is likely to remain the backbone of growth.

Private consumption is expected to stay resilient, supported by improving income levels and steady rural demand, although the pace may be moderated by inflationary pressures and reduced fiscalstimulus.

Investment activity continues to play a pivotal role, with government capital expenditure set to expand by 11.5% in FY 2025-26. Additionally, healthier corporate and banking sector fundamentals, coupled with structural reforms and infrastructure improvements, are expected to sustain private sector investment momentum.

From a macroeconomic perspective, pressures remain manageable but evolving. Inflation is projected at around 4.5% in FY 2025-26, driven by higher food and energy prices, before easing to

4.0% in FY 2026-27. The current account deficit may widen in the near term due to elevated import costs, particularly crude oil, but is expected to improve as global energy prices stabilise markets, and inflation, export performanceand strengthens. Meanwhile, both manufacturing and services sectors are expected to remain strong, supported by policy measures, increased global integration, and robust demand for high-value services.

Outlook

Overall, Indias growth outlook remains constructive.

While near-term risks from global volatility, energy prices, and inflation persist, strong domestic fundamentals, continued public investment, and structural reforms are expected to support stability and drive sustained economic expansion.

PHARMA INDUSTRY

Global

The global pharmaceutical industry continues to grow, with revenues expected to rise from USD 1.62 trillion in 2025 to and is expected to grow at a CAGR of 6.4% to reach USD 2.2 trillion by 2030. Expansion is driven by ageing populations, increasing demand for chronic disease therapies, and strong innovation in biologics, oncology, sedentary lifestyles and metabolic treatments. Notably, GLP 1 therapies are reshaping the treatment landscape for metabolic disorders. The sector remains relatively defensive, supported by stable healthcare demand and continued technological progress despite policy and geopolitical uncertainties.

Key industry trends include:

- AI and digital transformation: Enhancing drug discovery, clinical trials, and go-to-market efficiency

- Therapeuticinnovation:Growthinoncology,gene and cell therapies, and GLP 1-based treatments

M&A and collaborations: Patent expiries of over

70 major drugs are driving deal activity

- Cautious optimism: Improving investor sentiment post-2025 slowdown, though competition and regulatory risks persist

- Resilient organisations: Majority of companies remain financially confident while focussing on operational agility

Key challenges include:

Pricing pressures from global regulatory reforms

Patent expiries leading to revenue erosion from generics and biosimilars

Inflation and supply chain restructuring impacting costs

- Regulatory and geopolitical uncertainties affecting launches

Outlook

Over the medium term, the sector is positioned for steady, innovation-led growth. While short-term volatility may persist, strong R&D pipelines and strategic importance in global healthcare systems support a positive outlook through 2030.

(Sources: Yahoo Finance, Morning Star, Evaluate,

Biopharma Dive, ZS, Frost & Sullivan)

INDIAN

Indias pharmaceutical industry in 2026 continues to hold a strong global position as a provider of affordable medicines, supported by robust manufacturing and regulatory capabilities.

The market is estimated at around USD 60 billion and is expected to reach nearly USD 80 billion by 2031, reflectingsteady growth and an increasing shift toward innovation, complex generics, and biosimilars.

Growth is projected at 9 11%, driven by both domestic demand and exports. The domestic market is likely to expand by 7 8%, supported by chronic therapies, while exports exceeding USD 30 billion continue to grow across regulated and emerging markets.

Key growth drivers include:

Innovation and R&D expansion: Companies are moving up the value chain with investments in biosimilars, novel drug delivery systems, and complex generics, supported by the PLI scheme.

Digital and AI adoption: Increasing use of AI in drug discovery, clinical trials, and marketing is improving efficiency and strengthening Indias position in CRAMS.

Export diversification: Firms are expanding beyond the U.S. into markets like Africa, Latin America, and Southeast Asia to mitigate regulatory risks.

Domestic healthcare growth: Greater access through health schemes and rising insurance coverage is boosting demand, especially in chronic and lifestyle segments.

- Biopharma ecosystem development: Collaboration across industry and academia is accelerating growth in biotech and clinical research.

Outlook

Indias pharmaceutical sector is expected to remain a key growth engine globally, supported by cost efficiency, innovation, and rising domestic consumption. Despite challenges from pricing regulations and compliance complexity, the industry is well positioned for sustained growth and increasing global influence.

(Sources: Mordor Intelligence, Express Pharma, Fortune India, Atradius, Morningstar, ZS, Epicflow,

Biopharma Dive)

PHARMACEUTICAL API INDUSTRY

Global:

The global Active Pharmaceutical Ingredients (API) industry remains a vital component of the pharmaceutical value chain in 2026, driven by sustained demand for both generic and innovative drugs. The market is estimated at USD 245 287 billion and continues to expand steadily, supported by rising chronic disease prevalence, improving healthcare access in emerging markets, and increasing demand for specialty therapies. Growth is projected at a CAGR of 5.5% 7.3%, with the market expected to exceed USD 400 billion by the early 2030s, fuelled by pharmaceutical consumption, patent expiries, and ongoing R&D investments.

Key trends shaping the industry include:

Shift toward complex APIs, biologics, and specialty molecules

- Rising demand for oncology and targeted therapies

Increased outsourcing to CDMOs for efficiency and scalability and Supply chain diversification onshoring strategies

- Adoption of advanced manufacturing and digital technologies

- Stricter regulatory compliance and sustainability focus

- Strengthening role of India and China as manufacturing hubs

The API segment is growing faster than the overall market, driven by demand for oncology and precision therapies. These APIs require advanced manufacturingcapabilitiesandhighsafetystandards, creating entry barriers and favouring established players with strong technological expertise.

Outlook

The global API industry outlook remains positive, supported by strong structural demand despite near-term pressures from geopolitics, pricing, and supply disruptions. Growth will be driven by increasing focus on complex APIs, localisation efforts, and continued innovation, although companies must navigate regulatory challenges and cost volatility while investing in advanced manufacturing capabilities.

(Sources: Mordor Intelligence, Express Pharma, Fortune India, Atradius, Morningstar, ZS, Epicflow , Biopharma Dive)

Indian:

Indias API sector continues to strengthen its position as a key global supplier, supported by cost efficiency, scale, and manufacturing capabilities. The market is expected to reach around USD 15.3 billion in 2026, growing at 7 8% CAGR, and could exceed USD 22 billion by 2031. Growth is driven by rising healthcare demand, chronic disease burden, and strong export momentum across regulated and emerging markets.

Key trends include:

Policy pushes for self-reliance through PLI schemes and large investments

Focus on complex APIs, biologics, and specialty products

- Expansion of bulk drug parks and manufacturing capacity

Growing global demand for diversified sourcing beyond China

- Increased emphasis on sustainability and compliance

- Rising outsourcing partnerships with global pharma and CDMOs

Despite near-term challenges such as raw material volatility and cost pressures, continued investments in infrastructure and innovation are expected to sustain growth.

Outlook

Indias API industry outlook remains favourable, supported by strong domestic demand, export growth, and policy support. While regulatory and cost challenges persist, India is well-positioned to enhance its role as a global API manufacturing hub over the medium term.

GLP1-MARKET TRENDS:

Global:

The GLP 1 receptor agonist segment has emerged as a high growth area within the global pharmaceutical market, driven by rising incidences of diabetes and obesity. The market is estimated at around USD 82 billion in 2026 and is projected to grow to over USD 185 billion by 2033, reflecting a strong CAGR of approximately 12.4%.

The therapies are increasingly being adopted beyond glycemic control, offering additional benefits such as weight management and cardiovascular risk reduction, thereby strengthening their role in long-term metabolic care.

Growth is supported by the expanding global patient pool, with diabetes and obesity rates continuing to rise sharply. As several pioneering GLP-1 products lose market exclusivity, creating opportunities for more affordable biosimilars, global demand has accelerated significantly and is expected to grow further. This trend is particularly advantageous for the limited number of contract manufacturers with established GLP-1 manufacturing capabilities. At the same time, increasing awareness, early diagnosis, and broader clinical applications are driving sustained demand for innovative treatment options.

The market remains innovation-driven, with significant focus on improving drug efficacy, delivery mechanisms, and patient adherence. Advancements such as oral formulations and next-generation therapies are enhancing accessibility and treatment outcomes.

Given the complexity of peptide manufacturing and stringent regulatory requirements, the market presents strong opportunities for specialised API manufacturers and CDMO players.

Increasing outsourcing and the need for reliable, high quality manufacturing partners position companies with advanced capabilities to benefit from this sustained growth trajectory.

Indian:

The Indian GLP 1 receptor agonist market is witnessing rapid growth, driven by the rising burden of diabetes and obesity, along with increasing adoption of advanced metabolic therapies. The market was valued at approximately USD 240 million in 2026 and is projected to expand to over USD 1 billion by 2033, reflecting a strong CAGR of 22.7%.

Demand is primarily supported by Indias large and growing diabetic population, coupled with increasing awareness of obesity as a chronic disease. GLP 1 therapies are gaining traction due to their dual benefits in glycaemic control and weight management, particularly in urban and specialist-driven healthcare settings.

The market remains concentrated in premium segments, with multinational players leading adoption,whiledomesticpharmaceuticalcompanies are preparing for biosimilar and post patent opportunities. Over time, improved affordability and wider distribution are expected to drive penetration beyond Tier 1 cities.

(Source: Grand View Research)

PHARMACEUTICAL OUTSOURCING MARKET

Global

The global pharmaceutical services outsourcing market continues to expand as drug manufacturers increasingly rely on specialised partners to enhance complexity, and optimise costs.efficiency, The market is estimated at approximately USD 95 billion in 2026 and is projected to reach over USD 150 billion by 2032, growing at a CAGR of around 7.8%.

Outsourcing has evolved beyond cost reduction and manufacturing support, with pharmaceutical companies now partnering with CROs and CDMOs for research, development, regulatory expertise, risk sharing, and faster commercialisation.

The growing complexity of drug development, coupled with declining R&D productivity and low clinical success rates, has accelerated the shift toward asset-light business models. At the same time, the rapid growth of biotechnology and emerging pharmaceutical companies, which typically operate with limited infrastructure, continues to drive demand for outsourcing services.

Additionally, stricter regulatory requirements and supply chain diversification initiatives are encouraging pharmaceutical companies to collaborate with reliable global partners. As a result,

CDMOs are increasingly evolving into integrated service providers offering end-to-end solutions across the drug development and manufacturing value chain, supporting the continued expansion of the global pharmaceutical outsourcing market.

Indian

India remains a key hub in the global pharmaceutical services outsourcing market, supported by cost efficiency, skilled talent, and strong manufacturing capabilities. The global market, valued at USD 95 billion in 2026, increasingly relies on India for contract development, API manufacturing, and clinical services.

The country benefits from a large base of USFDA approved facilities, regulatory compliance, and a proven track record in quality and scalability. Growing complexity in biologics and peptide-based therapies is further strengthening Indias role as a preferred outsourcing destination.

Indian CDMOs provide comprehensive services spanning drug discovery, development, clinical support, and commercial manufacturing. Their expertise in complex chemistries, biologics, peptides, highly potent APIs, and specialised formulations has strengthened Indias position in the global outsourcing landscape.

The sector is also benefiting from global supply chain diversification companies seeking alternative and reliable manufacturing hubs. Furthermore, Indian CDMOs are transitioning from manufacturing vendors to strategic partners by investing in advanced technologies, specialty capabilities, and integrated service offerings. These strengths position India to capture a larger share of global outsourcing opportunities and support its long-term growth trajectory in the pharmaceutical services market.

(Source: Research and Markets, Frost & Sullivan)

Artificial (High Intensity) Sweeteners

Global

The global artificial sweeteners market is projected to grow from USD 10.8 billion in 2026 to USD 15.6 billion by 2036, registering a CAGR of 3.8%, supported by rising health awareness and increasing prevalence of lifestyle diseases such as diabetes and obesity.

Market growth is driven by the shift toward low-calorie diets, expansion of the processed food and beverage industry, and supportive government initiatives promoting sugar reduction. Food & beverage applications dominate with a 42% market share, while aspartame leads the product segment with 48% share due to its cost efficiency and wide regulatory acceptance.

Key industry trends include product innovation, blended sweetener formulations, and advancements in flavour masking technologies to improve taste and stability. Furthermore, supply chain resilience has become a critical consideration in the Artificial Sweeteners industry. With China and India collectively accounting for more than 60% of global production, manufacturers are increasingly addressing challenges related to geopolitical uncertainties, escalating production costs, and tightening environmental regulations, particularly those governing effluent treatment and waste management associated with chemical synthesis processes.

India

The India food sweeteners market is estimated at USD 3.49 billion in 2026, projected to reach USD 4.34 billion by 2031, growing at a CAGR of 4.49%, reflectingsteady expansion driven by evolving dietary preferences and industrial demand.

Growth is underpinned by increasing prevalence of diabetes and obesity, accelerating demand for low- and no-calorie sweeteners, including artificial variants used in beverages, bakery, and dairy applications. Additionally, the rapid expansion of the processed food and beverage sector, supported by government initiatives such as the Production Linked Incentive Scheme, is significantly boosting sweetener consumption.

A key industry trend is the shift toward high-intensity sweeteners, which are expected to grow faster than traditional bulk sweeteners due to regulatory approvals and reformulation efforts by manufacturers. Simultaneously, clean-label preferences and regulatory changes (FSSAI) are encouraging innovation, while also intensifying scrutiny on artificial ingredients.

Despite growth prospects, the market faces challenges from price sensitivity, cultural reliance on traditional sweeteners, and rising consumer skepticism toward artificial additives.

Contrast Media Industry

Global

The global contrast media market demonstrates strong growth momentum, with revenues increasing from USD 8.20 billion in 2026 to USD 12.08 billion by 2031, reflecting a robust CAGR of 7.9%.

Growth is driven primarily by the rising prevalence of chronic diseases such as cardiovascular disorders, cancer, and neurological conditions, which continue to increase demand for advanced diagnostic imaging procedures. The expanding use of CT, MRI, and interventional radiology, along with a shift toward minimally invasive and image-guided treatments, further supports market expansion.

Technological advancements, including the development of low-osmolar and iso-osmolar contrast agents, are improving patient safety and diagnostic accuracy, while innovations such as microbubble contrast agents and AI-enabled imaging systems are enhancing workflow efficiency and clinical outcomes.

Despite strong growth prospects, the market faces constraints from adverse reaction risks and high imaging costs, which may limit adoption in certain patient segments.

India

The India contrast media market is witnessing strong growth momentum, with revenues increasing from

USD 311.6 million in 2025 to USD 632.1 million by 2033, reflecting a robust CAGR of 9.3%.

Market expansion is driven by the rising demand for diagnostic imaging procedures, supported by increasing prevalence of chronic diseases and growing awareness of early diagnosis. The rapid expansion of private diagnostic centres and corporatisation of imaging facilities is significantly improving accessibility and driving higher utilisation of contrast agents across urban and semi-urban regions.

Technological advancements, including affordable CT scanners and portable ultrasound systems, are enhancing penetration in cost-sensitive markets, while improving diagnostic accuracy and efficiency. Segment-wise, X-ray/CT dominates the market, whereas ultrasound-based contrast agents are emerging as the fastest-growing segment, reflecting a shift toward safer and cost-effective imaging modalities.

Overall, the Indian contrast media market outlook remains highly positive, supported by technological innovation, expanding diagnostic infrastructure, and increasing demand for advanced imaging solutions.

(Source: Grand View Research)

CDMO MARKET OUTLOOK

Global:

The global pharmaceutical CDMO market is experiencing robust growth, expanding from USD 177.6 billion in 2026 to USD 293.6 billion by 2033, at a CAGR of 7.4%.

Market growth is primarily driven by the increasing trend of outsourcing among pharmaceutical and biotech companies, enabling cost optimisation, faster time-to-market, and access to specialised manufacturing capabilities. The rising complexity of drug development particularly in biologics, gene therapies, and personalised medicines is further accelerating reliance on CDMOs.

In addition, growing R&D investments, rising prevalence of chronic diseases, and demand for advanced therapeutics are strengthening long-term demand. The shift from small molecules toward biopharmaceuticals such as monoclonal antibodies and mRNA therapies is reshaping service requirements and driving innovation in manufacturing technologies.

Strategic trends include integrated end-to-end service offerings, mergers and acquisitions, and geographic expansion, particularly in Asia-Pacific, which remains the largest regional market.

However, challenges such as regulatory compliance complexities and supply chain risks persist.

(Source: Grand View Research)

Indian:

The India pharmaceutical CDMO market is witnessing strong growth, projected to expand from USD 23.3 billion in 2026 to USD 55.5 billion by 2033, registering a robust CAGR of 13.2%.

Market growth is driven by Indias cost-efficient manufacturing capabilities, skilled workforce, and established pharmaceutical infrastructure, positioning the country as a preferred global outsourcing destination. The increasing demand for generic drugs and biosimilars, supported by global patent expiries, is further accelerating market expansion.

Government initiatives such as Make in India and

Production-Linked Incentive (PLI) schemes are fostering investments and enhancing domestic manufacturing capabilities. Additionally, rising outsourcing trends among global pharmaceutical companies, seeking cost optimisation and end-to-end development services, are strengthening long-term demand.

Segment-wise, contract manufacturing dominates, while small molecules lead due to Indias expertise in

API and generics production.

Overall, the outlook remains highly positive, supported by strong outsourcing demand, policy support, and continuous expansion into biologics and advanced therapeutics.

(Source: Persistence Market Research)

GLOBAL CDMO API:

The global Active Pharmaceutical Ingredient (API) CDMO market is experiencing strong growth, expanding from USD 122.6 billion in 2026 to USD 209.8 billion by 2033, at a CAGR of 7.9%.

Growth is primarily driven by the increasing outsourcing of API development and manufacturing by pharmaceutical and biotechnology companies seeking cost efficiency, scalability, and faster time-to-market. Rising complexity of drug pipelines particularly in biologics, high-potency APIs (HPAPIs), and specialty therapeutics is further accelerating reliance on specialised CDMO partners.

Additional demand drivers include the growing prevalence of chronic diseases, expanding pipelines of biologics and biosimilars, and patent expirations of blockbuster drugs, which are boosting generic

API production.

Technological advancements such as continuous manufacturing, flow chemistry, and advanced bioprocessing platforms are improving production efficiency and enabling large-scale, regulatory-compliant manufacturing.

(Source: Grand View Research)