Brawn Biotech Ltd Management Discussions

(MDA)

Industry Structure and Developments

The Indian Pharmaceutical industry is expected to remain one of the most structurally resilient and fastest-growing major pharmaceutical markets globally, supported by expanding healthcare access, rising chronic disease burden, and continued deepening of prescription penetration across urban and non-urban markets.

The market is estimated to reach US $40-44 Billion in 2029, at a constant currency CAGR of 6.5-9.5% over 2025-2029, reflecting sustained demand across chronic and acute therapies, supported by continued expansion of treatment coverage and gradual improvement in healthcare access infrastructure.

Growth continues to be led by chronic therapies such as cardiovascular, anti-diabetic, respiratory and central nervous system segments, which are expanding faster than acute therapies due to rising disease prevalence and longer treatment cycles. This structural shift is supported by improving diagnosis rates, increasing affordability, and wider penetration of organised healthcare channels.

In addition, market growth is supported by continued expansion into Tier II and Tier III markets, increasing physician reach, and steady contribution from new product introductions. While price increases continue to play a role, volume-led expansion remains the primary structural driver of growth in the market.

Opportunities and threats:

OPPORTUNITIES:

With rising global demand for affordable healthcare, Indias pharma sector remains well positioned for growth. Our focus on R&D, biotechnology, and complex generics allows us to capitalize on evolving market needs, forge strategic partnerships, and tap into emerging opportunities across domestic and international markets for sustainable, long-term value creation.

THREATS:

The pharmaceutical industry continues to face multiple challenges, including evolving global regulatory frameworks, pricing pressures, and increased scrutiny on quality and compliance. Rapid digital transformation has also heightened the importance of data security and cybersecurity. Additionally, the growing emphasis on environmental sustainability requires continuous adaptation of operations to meet stricter ESG norms. Currency fluctuations and geopolitical uncertainties further impact international business dynamics. Recognizing these emerging threats, the Company remains committed to strengthening its compliance systems, embracing sustainable practices, and enhancing digital resilience to ensure long-term stability, operational efficiency, and continued relevance in a highly competitive global market.

Segment-wise or product-wise performance

The Company operates in a single reportable segment, viz. pharmaceuticals, as disclosed in Note 2 (Clause VI- Segment Reporting) to the financial statements. Accordingly, segment-wise performance disclosure is not applicable.

Outlook

In the coming fiscal year, the Company is positioning itself to accelerate sustainable, high-quality growth by advancing a digitally-enabled business model that broadens access to affordable, quality medicines across geographies and therapeutic categories. This will be supported by differentiated brand building, innovative marketing approaches, and data driven digital engagement that enhance visibility and strengthen market relevance. Deepening market penetration will remain a key priority, with continued efforts to enhance last mile access and improve engagement productivity across an extensive network of retailers, further reinforcing the Companys distribution advantage. The business also plans to scale its consumerisation initiatives, expanding its product portfolio to bring a wider range of solutions closer to users and unlocking long term growth opportunities. Aligned with its commitment to delivering value, the Company remains focused on improving access to medicines and strengthening outcomes for all stakeholders across the healthcare ecosystem.

Risks and concerns

During the reporting period, the Company faced heightened risks due to escalations in geopolitical conflicts, regulatory audits at manufacturing sites, supply chain complexities, increased input costs, continued foreign exchange volatility, delayed launches in key products and cyber and information security risks exacerbated by advancements in artificial intelligence. Additionally, climate change and adverse weather events continue to be a concern which has potential to disrupt business.

Internal control systems & adequacy

Your Company has in place adequate internal control systems commensurate with size and nature of its operations. Internal control processes, which consist of adopting appropriate management systems and implementing them, are followed. The Company has a qualified Audit Committee, independent Statutory Auditors and Internal Auditors who submit reports periodically, which are reviewed and acted upon.

Company performance

During FY 2025-26, the Company faced challenging market conditions and rising input costs, resulting in a marginal increase in losses compared to the previous year. Despite these headwinds, the Company continued to focus on operational efficiency, risk mitigation, and long-term sustainability through strategic planning and prudent financial management.

Material developments in human resources / industrial relations front

Industrial relations remained cordial. The Company focused on employee engagement, talent development, and retention through structured HR initiatives. A positive work environment, supported by efficient systems and people-centric policies, enabled enhanced productivity, alignment with organizational goals, and sustained growth across all levels of the workforce.

Details of Significant Changes in Key Financial Ratios

For detailed information on key financial ratios, investors can refer to Note 2 (Clause XVI- Ratios) to the financial statements.

Details of Any Change in Return on Net Worth as Compared to the Immediately Previous Financial Year

For detailed information on Return on Net Worth, investors can refer to Note 2 (Clause XVI- Ratios) to the financial statements.

Disclosure of Accounting Treatment

During the financial year under review, no alternative accounting treatment was followed rather the company follows the same accounting treatment followed over previous financial years.

Disclosures with respect to demat suspense account/ unclaimed suspense account

(a) aggregate number of shareholders and the outstanding shares in the suspense account lying at the beginning of the year; Nil
(b) number of shareholders who approached listed entity for transfer of shares from suspense account during the year; Nil
(c) number of shareholders to whom shares were transferred from suspense account during the year; Nil
(d) aggregate number of shareholders and the outstanding shares in the suspense account lying at the end of the year; Nil
(e) that the voting rights on these shares shall remain frozen till the rightful owner of such shares claims the shares. NA

Disclosure of certain types of agreements binding listed entities

No such agreement has been entered into by the company under clause 5A of paragraph A of Part A of Schedule III of LODR regulations which, either directly or indirectly or potentially or whose purpose and effect is to, impact the management or control of the listed entity or impose any restriction or create any liability upon the company.