Zydus Lifesciences Ltd Management Discussions

Management Discussion and Analysis Report

ECONOMY OVERVIEW

Global Economy

The global economy remained resilient in 2025 despite trade tensions, tariff-related disruptions and policy uncertainty. This performance has exceeded earlier expectations and reflects, in part, the presence of temporary supportive factors during the past year. Notably, the stockpiling of traded goods by businesses provided a short-term boost to activity, while relatively accommodative financial conditions supported by expectations of further monetary easing also helped sustain economic momentum.

Global GDP growth remained Largely stable at 2.7% in 2025, as compared to 2.8% in 2024, reflecting mixed performance across regions. Among advanced economies, the United States recorded growth of 2.1%, while GDP in the Euro area grew by 1.4% and in Japan by 1.3%, benefiting from stronger domestic demand, improved exports and economic recovery. Growth in advanced economies in 2025 remained resilient despite trade tensions and policy uncertainty, supported by Lower-than-expected tariff disruption, trade diversion and mitigation strategies, as well as strong US investment in Al-related equipment and infrastructure. Emerging markets and developing economies continued to grow faster than advanced economies, at 4.2% in 2025, compared with 4.3% in 2024. Looking ahead, global growth is expected to moderate slightly to 2.6% in 2026, then grow at 2.7% in 2027. Global growth is expected to ease to 2.6% in 2026 due to delayed effects of higher trade barriers, weak global trade and policy uncertainty weighing on manufacturing and consumption, partly offset by easier financial conditions and fiscal support. It is then projected to recover slightly to 2,7% in 2027 as trade normalises, uncertainty fades and domestic demand strengthens, though the outlook remains subdued with downside risks from trade tensions and financial volatility Source: World Bank, January 2026 Report

Indian Economy

India remained one of the fastest-growing major economies globally during FY2025-26. The countrys realGDP is estimated to have grown at 7.6%, up from 7.1% in FY2024-25, driven by strong performance across the services and industrial sectors and resilient domestic consumption. Indias external sector also remained resilient, with total merchandise and services exports increasing by 4.2% to USD 860.1 billion during FY2D25-26. While global trade uncertainties and higher tariffs in some key markets affected export growth and manufacturing activity, government measures to simplify tax and compliance processes helped support economic activity. The Reserve Bank of India supported economic growth by easing monetary policy by reducing the report rate during the year. Alongside this, sustained domestic demand, higher investment activity and ongoing structural reforms are expected to keep the overall growth outlook resilient. At the same time, externaL factors such as geopolitical developments and volatility in crude oiL prices could lead to near-term inflationary pressures. However, the impact is expected to remain manageabLe, supported by stable domestic conditions and policy measures. In addition, progress on trade negotiations with key partners, including the United States, along with rising employment opportunities and continued investments in emerging sectors, is expected to further support Indias long-term economic growth.

Source: Press Information Bureau (PIB) Article. RBI Report

INDUSTRY OVERVIEW^

Global Pharmaceutical Industry

The global pharmaceutical industry reached approximately USD 1.67 trillion in 2025, reflecting a growth of around 10% from USD 1.52 trillion in 2024. Growth remained steady compared with the 9% increase recorded in 2024. Growth during the year was driven primarily by established medicines but also complemented by a continued flow of innovation.

Therapy-wise, Oncology continued to dominate the market with sales of USD 288 billion in 2025 and registered the highest increase of USD 34.3 billion during the year. Immunology and Diabetes, with sales of USD 225 billion and USD 207 billion, respectively, contributed USD 24.3 billion and USD 21.5 billion in incremental revenue, respectively. Obesity emerged as one of the fastest-growing segments, adding USD 30.8 billion in sales, highlighting the growing demand for weight-management therapies. Together, these leading therapy areas accounted for a significant share of global pharmaceutical spending, indicating an increasing concentration of market growth in specialised and chronic disease treatments.

The United States remained the largest pharmaceutical market, accounting for 53% of global sales in 2025, up from 52% in 2024. Europe maintained a stable share of 24%, while Japans contribution declined sLightly to 3% from 4%. Emerging regions, including Latin America, Asia Pacific (APAC) and the Middle East & Africa, continued to contribute to market expansion, although their overall shares remained relatively stable.

Looking ahead, developed economies are expected to remain the main drivers of global market growth, supported by the continued adoption of new therapies and higher use of existing branded medicines, though this may be partLy offset by ongoing patent expiries. However, generic medicines and biosimilars are likeLy to remain Largely unaffected, helping ensure continued access to affordable treatments.

Global Specialty Pharmaceuticals Industry

The specialty pharmaceuticals market includes advanced treatments such as biologies, orphan drugs, gene therapies and precision medicines for complex conditions like cancer, autoimmune diseases, central nervous system etc. Growth is driven by the rising burden of chronic illnesses, increasing use of targeted therapies and continued innovation in advanced treatments. The market was valued at around USD 311.7 billion in 2024 and is expected to reach USD 519.8 billion by 2035, growing at a CAGR of 4.8%.

North Americas specialty pharmaceuticals market is expected to maintain its leading position, growing from USD 140.3 bn to USD 284.0 billion by 2035. Europe is projected to expand from USD 70.0 billion to USD 115.0 billion over the same period, while the Asia-Pacific region is anticipated to increase from USD 40.7 billion to USD 76.0 billion, supported by rising healthcare investments and improved access to advanced therapies. Meanwhile, South America and the Middle East & Africa are also poised for steady growth, with market sizes expected to reach USD 26.0 billion and USD 19.0 billion, respectively, by 2035.

Source: Market Research Future Industry Report

Global Biopharmaceuticals Market

The global biopharmaceutical market was valued at approximately USD 537.5 billion in 2025 and is projected to reach nearly USD 1.98 trillion by 2035, growing at a CAGR of 13.95%. Demand for biologies, biosimilars, vaccines and targeted therapies remains strong. This is being driven by the increasing prevalence of chronic diseases and rising healthcare expenditure across markets. At the same time, advancements in biotechnology, precision medicine and Al-driven drug development are further supporting industry growth and enabling more effective and targeted treatment options.

Source: Market Research Future Industry Report, Precedence Research Article

Global Bio-CDMO Market

The global biologies CDMO market is experiencing strong growth, driven by rising demand for biologies, biosimilars, vaccines and other advanced therapies. The bio-CDMO market was valued at USD 23.1 billion in 2025 and is projected to reach USD 55.1 billion by 2035, growing at a CAGR of 9.1% during 2025-2035. Growth is being driven by rising outsourcing by biopharmaceutical companies, expanding biologies pipelines, increasing prevalence of chronic diseases and growing adoption of advanced manufacturing technologies. While North America remains the largest market, Asia-Pacific is emerging as the fastest-growing region due to its expanding biopharmaceutical manufacturing capabilities and cost advantages.

Global Generics Market

The global generic drugs market was valued at approximately USD 468.08 billion in 2025 and is projected to reach around USD 762.48 billion by 2035, with a CAGR of about 5% during the forecast period. North America holds the largest share of the market due to strong regulatory support and high generic medicine penetration, while Asia-Pacific is expected to witness rapid growth driven by expanding pharmaceutical manufacturing and rising healthcare demand. Additionally, oral generics continue to hold a dominant position in the market, while injectables are expected to witness the fastest growth. Retail and hospital pharmacy channels remain key contributors to product distribution. These will be further supported by continuous product development and wider therapeutic applications, driving sustained market growth over the coming years.

Indian Pharmaceutical Industry

The Indian pharmaceutical industry has become a vital part of the global healthcare ecosystem by providing affordable medicines and vaccines to millions of people worldwide. Over the years, the country has earned a reputation as the "Pharmacy of the World" due to its strong manufacturing base, cost-efficient production, skilled workforce, sustained thrust on quality and growing focus on innovation.

India is the third-largest producer of pharmaceuticals by volume and supplies around 20% of the worlds generic medicines. In 2025, the Indian pharmaceutical market, including exports, was valued at USD 68.38 billion. Supported by rising healthcare awareness, increasing access to medical services and growing demand for treatments, the Indian pharmaceuticals industry is expected to reach around USD 174.67 billion by 2034. The industry is backed by more than 3,000 pharmaceutical companies and over 10,500 manufacturing facilities, including the largest number of USFDA-approved plants outside the United States.

The Indian pharmaceutical market recorded broad-based growth across key therapy areas in FY 2025-26, with total revenues rising to Rs. 2,565 billion from Rs. 2,334 billion in the previous year, reflecting a growth of 9.9%. Cardiac remained the largest therapy segment at Rs. 343.62 billion, followed by anti-infectives at Rs. 264.83 billion, gastrointestinal at Rs. 266.94 billion and anti-diabetics at Rs. 232.51 billion. All these segments recorded steady growth, supported by the rising prevalence of chronic diseases.

Therapeutic Area	FY 2025-26 (Rs. Bn)	FY2024-25	Therapy Contribution	YoY Growth
Cardiac	344	301	13.4%	14.3%
Gastro-lntestinal	267	251	10.4%	6.5%
Anti-infectives	265	253	10.3%	4.8%
Anti-Diabetic	233	207	9.1%	12.2%
Respiratory	206	184	8.0%	11.8%
Vitamins/Minerals/Nutrients	201	183	7.8%	9.9%
Pain/Analgesics	200	186	7.8%	7.9%
Derma	174	163	6.8%	6.8%
Neuro/CNS	156	141	6.1%	10.6%
Gynaecology	123	113	4.8%	8.8%
Others	396	353	15.4%	12.4%
Total	2,565	2,334	100.0%	9.9%

Indias pharmaceutical exports continue to grow steadily, increasing from USD 30.47 billion in FY25 to USD 31.12 billion in FY26. The contribution of drugs and pharmaceuticals to the countrys merchandise exports has also strengthened significantly over the past decade, reflecting the sectors increasing importance to Indias economy and global trade.

Government support continues to play an important role in the industrys development. Higher healthcare spending and initiatives such as Ayushman Bharat and the National Health Mission are helping improve healthcare access, infrastructure, research and overall healthcare delivery across the country.

A large number of pharmaceutical products are expected to face patent expirations in the coming years, opening up opportunities for generic medicines. The availability of lower- cost generics is likely to make treatments more affordable and easier to access, while also increasing market competition. For example, in March 2026, the patent for semaglutide, a GLP-1 receptor agonist, expired in India, leading severaL companies to launch generic versions. These affordable alternatives are expected to improve access to treatment for patients with Type-2 diabetes and obesity. Overall, around 15 blockbuster drugs, valued at about USD 112 billion globally, are expected to go off-patent between 2D23 and 2029, creating strong opportunities for generic pharmaceutical companies.

In addition, the Jan Aushadhi scheme is helping improve access to affordable medicines by increasing the availability of low- cost generic drugs, especially in rural and semi-urban areas.

Source: IMARC Group Report, PIB Article, IBEF February 2026 Report. PharmaBiz Article

The industry is also embracing digital transformation through the use of artificial intelligence, data analytics, e-pharmacies and telemedicine. These technologies are helping improve drug development, supply chain efficiency and healthcare access, particularly in underserved regions. With increasing investments in complex generics, biosimilars and specialty therapies, India is further strengthening its position as a global pharmaceutical hub. By combining innovation, affordability and scale, the industry is well-placed to support future healthcare needs in India and around the world.

Medical Technology (MedTech) Market

The MedTech industry includes products such as diagnostic equipment, surgicaL instruments, implantable devices, patient monitoring systems and digital health technologies and plays a key role in improving healthcare outcomes and efficiency. The global MedTech market is projected to grow at a 7% CAGR until 2031, driven by rising volumes of surgical and interventional procedures, an ageing population, increasing prevalence of chronic and degenerative diseases and the expansion of minimally invasive and image-guided procedure.

In India, the MedTech industry is a rapidly emerging sector undergoing a structural transformation, driven by increasing poLicy support, cost competitiveness and innovation-led growth. Historically accounting for a limited share of global manufacturing and heavily dependent on imports, the sector is now witnessing a gradual shift towards domestic production and greater seLf-reLiance. The Indian MedTech market, vaLued at approximately USD 1G biLLion in 2D25, reflects this evoLving Landscape and is beginning to scaLe meaningfuLLy. WhiLe manufacturing has LargeLy been concentrated in Low- technoLogy products, there is growing recognition of the need to expand into high-vaLue segments. With continued focus on strengthening the domestic ecosystem, fostering innovation and enhancing capabilities in advanced technologies, the industry is projected to nearLy doubLe to around USD 30 biLLion by FY3D, driven by an accelerating shift towards domestic manufacturing, reduced import dependency and a strengthening position in the global MedTech Landscape.

Source: MedTech Insights Article. IOVIA February 2026 Report

Indian Over-The-Counter (OTC) Consumer Health Products Market

The Indian Fast-Moving Consumer Goods (FMCG) sector remained resilient in FY2025-26 despite fluctuating demand, shifting consumer preferences and pressure from commodity price movements. The sector continued to benefit from strong long-term drivers such as rising incomes, favourable demographics, increasing urbanisation, wider digitaL adoption and better access to organised retail RuraL markets remained relatively stronger for most of the year, whiLe urban demand gradually improved in the second haLf as inflation eased and consumer sentiment strengthened. Tier II and Tier III cities also played an important roLe in driving growth, supported by better distribution reach and rising aspirations.

Commodity prices showed mixed trends during the year. Higher input costs in categories such as edible oils and cocoa Led to inflationary pressure in the first half, which supported price-Led growth across several FMCG segments.

In the second half, commodity prices softened, which helped improve affordability and supported a gradual recovery in demand. Even so, consumers remained cautious in their spending and preferred affordable packs and value-oriented products, while premium products continued to grow in urban markets. Weather-related disruptions also affected seasonaL categories, although core product portfolios remained stabLe.

Channel trends continued to evolve during the year, with strong growth in quick commerce, e-commerce and modern trade as consumers increasingly shifted towards convenient, digitaL shopping options. The implementation of GST 2.0 caused temporary disruptions due to inventory adjustments in trade channels, but the impact normalised over time as supply chains stabilised. Overall, the sector remains weLL- placed for Long-term growth, supported by strong structural drivers, even as short-term risks from commodity volatility, weather conditions and global uncertainties persist.

Source: Industry Reports

COMPANY OVERVIEW

Zydus Lifesciences Limited (hereafter referred to as ‘Zydus or ‘the Company) is an innovative global life sciences Company with an overarching purpose to empower people with the freedom to live healthier, more fulfilling lives. With a legacy spanning over seven decades, the Group is engaged in the discovery, development, manufacturing and commercialisation of healthcare therapies across the entire value chain. Its approach is anchored in addressing the evolving needs of patients across the continuum of care, from prevention and diagnosis to treatment and wellness. It leverages science-led innovation, strong R&D capabilities and a deep understanding of patient journeys.

The Company has built a diversified portfolio spanning human formulations (including generics and branded generics), specialty products, biologies and biosimilars, vaccines, novel chemical entities (NCEs) and therapies for orphan and rare diseases. In addition, it has a strong presence in active pharmaceutical ingredients (APIs), medical devices, animal health and consumer wellness products, enabling a comprehensive play across healthcare segments. This breadth of offerings is supported by a robust innovation ecosystem, with over 1,500 researchers working across 10 R&D centres, focussing on next-generation therapies and differentiated technologies.

The Company operates across three business segments: pharmaceuticals, consumer wellness and med-tech. It operates as a fully integrated global healthcare provider with a strong presence in key markets worldwide. The Group has established an extensive manufacturing network with 44 facilities worldwide, including sites across India and in international locations such as the US, the UK, France, Brazil and Myanmar. Backed by its vertically integrated operations, diversified business model and increasing focus on specialty and innovation-led growth, the Company continues to strengthen its position as a global, patient-centric life- sciences leader.

PHARMA BUSINESS

The Companys Pharma Business comprises India Formulations business, North America Formulations, International Markets Formulations, API and Alliances & other segments.

India Formulations

The Companys formulations business in India continues to serve as a pillar of its overall growth strategy, underpinning sustained performance and reinforcing its leadership across key therapeutic areas. Over the years, the Company has established a strong position across the focussed therapies through levers such as a robust product portfolio, science-led brand-building initiatives, geographic expansion and a robust innovation pipeline to fulfil different unmet healthcare needs of patients. The business was the second-largest contributor to overall revenues during the year, accounting for 25% of total business.

During FY2025-26, the business sustained the strong growth momentum and continued to outpace the Indian Pharmaceutical Market (IPM). This performance was primarily driven by the chronic portfolio, which outpaced IPM growth. Its share of the overall business rose to 46.3% (Source: IOVIA MAT March 2026), up 7.4 percentage points over the last four years. The Company outperformed the market in Cardiology, Respiratory and Oncology segments.

Brand Building initiatives

Building bigger brands with strong brand equity to ensure sustainable market leadership has remained a key strategic priority for the Company. This focus on building scaLe along with quality has resulted in a visible strengthening of the brand pyramid over the years. The table given beLow showcases the success of the Companys brand-buiLding initiatives over the years, driven by sustained investments, sharper positioning and disciplined lifecycle management.

Brand Value	MAT March 2026	MAT March 2022
7 250-50D mn	35	29
7500 - !???mn	24	17
7 > !??? mn	10	7

The Company has identified a set of "growth booster brands" that exhibit high market attractiveness and strong fundamentals. These brands are expected to deliver marketbeating growth and, in turn, accelerate value creation. Targeted execution, differentiated promotional strategies and enhanced customer engagement are expected to further strengthen these brands market share within their respective therapy areas.

A sharper reorientation towards science led marketing remains a central theme for the business. The Company significantly strengthened its engagement with key opinion Leaders and medical communities through Continuing MedicaL Education (CME) programs, clinical studies, publications and reaL-worLd evidence initiatives and partnerships with nationaL and regional medicaL associations. This approach has helped enhance scientific credibility, strengthen brand trust and reinforce the Companys positioning as a partner in advancing standards of care.

Ongoing brand-buiLding initiatives are expected to further improve both the scaLe and residence of the portfolio in the coming years.

Leadership In Super Specialty Therapies

The Company hoLds a Leadership position in OncoLogy and is among the top three pLayers in NephroLogy. Its Oncology portfolio includes therapies for breast, haematoLogy, ovarian and colorectal cancers; supportive care; and immuno- oncology therapies. During the year, the Company further strengthened its HER2+ breast cancerfranchise through three biosimilars viz. Vivitra™ (Trastuzumab), Ujvira™ (Trastuzumab emtansine) and Sigrima™ (Pertuzumab). The Company Launched Tishtha™, the worLds first nivoLumab biosimilar during the year, marking its entry into the rapidly expanding immuno-oncology segment. The Companys supportive care portfolio also demonstrated strong momentum with Legacy brands like Pegstim? and new launches like Nykronl,v for the management of chemotherapy-induced nausea and vomiting, delivering robust revenue during the year.

In the Nephrology segment, the Company has strengthened its leadership position in the ESA (Erythropoietin-Stimulating Agent, medicines that help the body produce red blood cells) and HIF-PHI (Hypoxia-Inducible Factor Prolyl Hydroxylase Inhibitor, a class of oral drugs used to treat anaemia by stimulating the bodys natural erythropoietin production) segments. Growth during the year in the segment was supported by the strong adoption of oral therapies, establishing the New Chemical Entity Oxemia™ (desidustat), as a preferred therapy in this treatment area.

The transplant portfolio also gained market share during the year, reflecting strategic focus and accelerated uptake. Going forward, growth will be driven by the scale-up of Oxemia™ brand, the expansion of the rare disease portfolio, the augmentation of the transplant franchise and the building of integrated, patient-centric care models that combine pharmaceuticals, devices, diagnostics and digital platforms.

GLP-1 Updates

The Company launched three Semaglutide brands in the fast-growing GLP-1 market by introducing an innovative delivery pen device, which improved patient convenience and adherence. The products have received encouraging initial responses and are expected to support the chronic portfolio.

In line with its patient-centric philosophy of expanding access across the healthcare continuum, the Company has also adopted a collaborative commercialisation strategy by out-licensing its GLP 1 assets to Leading pLayers Torrent Pharmaceuticals Limited and Lupin Limited. These strategic partnerships are aimed at significantly enhancing market reach by Leveraging the partners strong distribution networks and therapeutic presence to ensure wider and faster access to these therapies across geographies.

Embracing Digitalisation

The Company continued to strengthen its technology-driven field force capabilities, focussing on improving customer engagement and execution consistency. Al-enabled platforms are helping medicaL representatives gain deeper customer insights, pLan more effective interactions and deliver more relevant scientific information by understanding prescriber behaviour, therapy opportunities and engagement history. Managers are aLso supported through structured feedback and coaching tooLs, enabling better team development and capability buiLding.

The Company further expanded its digital engagement ecosystem to meet the evolving preferences of healthcare professionals through initiatives such as scientific podcasts, simuLation-based Learning workshops and Al-enabled therapy- focussed educational content.

These initiatives complement traditional engagement channels and enable consistent, scalable and meaningful scientific communication. Beyond medicines, the Company strengthened patient support initiatives by launching its cancer care application, Anaya, which has supported over 7,ODD breast cancer patients through personalised guidance and care navigation. In Nephrology, the Company continued to build an integrated digital ecosystem focussed on patient awareness, physician engagement, data insights and remote care support.

Disease Management and Patient Support Programs

The Company continued to roll out innovative and differentiated disease management and patient support programmes aimed at improving diagnosis, treatment adherence and patient outcomes. In Oncology, the Company achieved a significant milestone by becoming the first Indian pharmaceutical player to establish a dedicated diagnostics division, underscoring its commitment to precision oncology and patient centricity. Collaborations with OncoStem Diagnostics Pvt. Ltd. for CanAssist Breast and with Guardant Health for Guardant360, precision oncology diagnostic tests, have positively impacted around 13,000 patients to date.

The Company also introduced diagnostic support services, such as fibroscans, spirometry and nebulisation, across select therapies. The Company also implemented structured patient support programmes in priority disease areas, including liver care, COPD and obesity management, further strengthening its integrated approach to healthcare delivery

Leveraging the Innovation Portfolio

The Company continued to broaden its innovation-led portfolio across NCEs, biosimilars, vaccines and complex generics to address unmet healthcare needs and drive sustainable growth.

The Companys first NCE, Saroglitazar Magnesium, marketed under two brands Lipaglyn111 and Bilypsa" is approved in India for Diabetic Dyslipidemia, Hypertriglyceridemia, Metabolic Dysfunction-Associated Fatty Liver Disease (MAFLD) and Metabolic Dysfunction-Associated Steatohepatitis (MASH). Lipaglyn?, the Companys largest brand, reported a 22% increase in patient base during FY2025-26 and became the Companys first brand to cross Rs. 3,000 million in sales (Source: IQVIA MAT March 2026). Bilypsa", following its inclusion in guidelines for MAFLD and MASH issued by the Indian National Association for the Study of Liver (INASL) in 2023, has experienced a rapid surge in market share and further consolidated its position in the Gastroenterology and Hepatology therapeutic areas. The brand crossed Rs. 1,000 million in revenues (Source: IQVIA MAT March 2026) and registered a 21% increase in patient base, with cumulative patients treated exceeding 1.5 million.

Combined secondary sales of the Saroglitazar franchise grew 40% to Rs. 4,417 million during FY2025-26, delivering a strong CAGR of 51% over the last four years (Source: lOVIA MAT March 2026). To expand market reach, the Company aLso entered into semiexclusive co-marketing agreements with Lupin Limited and Torrent Pharmaceuticals Limited for SarogLitazar Magnesium in India during the financial year 2023-24. Lupin and Torrent Pharma market the drug under the brand names LINVAS and VORXAR?, respectively. Secondary saLes for both brands crossed Rs. 500 million during the year, showcasing the drugs potential. Combined secondary sales across aLL SarogLitazar brands (Zydus brands and partners brands put together) crossed Rs. 5,500 million during the year (Source: IQVIA MAT March 2026).

The Companys second NCE, Oxemia™ (Desidustat), indicated forChronic Kidney Disease (CKD)-induced anaemia, continued to expand across dialysis and non-diaLysis segments and has touched over 1 lakh patient Lives since Launch. As an oral alternative to Erythropoietin-StimuLating Agents (ESAs), Oxemia™ improves convenience, reduces coLd-chain dependence and enables cost-effective treatment. The Company also partnered with Sun Pharmaceutical Industries Limited to expand patient access through co-marketing arrangements for the Indian market.

In biologies, the Company has built one of Indias most diversified biosimilar portfolios, with 15 Launches to date across various therapies. During the year, it Launched TishthaIM, the worlds first biosimiLar of NivoLumab, reinforcing the companys growing capability in advanced biologies and Immuno-Oncology. The brand was Launched at a substantially lower price than the innovator drug to improve affordability and reduce the overall treatment burden for patients. The Company also launched Anyra™, Indias first indigenously developed biosimilar of Aflibercept. The brand will enhance access to patients with retinaL diseases and improve Longterm vision gain.

The Companys vaccines business achieved an important milestone during the year by commencing the supply of Measles and Rubella vaccine to the Government of Indias Universal Immunisation Programme (UIP), pLaying a strategic role in advancing national public heaLth priorities. Adult vaccination will be one of the focussed areas going forward. The Company has identified hospitaLs as a strategic growth vertical, with an emphasis on the vaccination of high-risk adult populations, thereby reinforcing its commitment to advancing protection against vaccine-preventabLe diseases.

During the year, the Company Launched a flu protection initiative, "Flu Vaccine Liya KyaRs.", through digital print, radio and in-clinic campaigns to promote influenza prevention.

Further, the Company continued its public heaLth initiative VIRAM - "Full Stop in Rabies" in collaboration with healthcare organisations and the Integrated Health & WeLLbeing (IHW) Council. The initiative aims to eliminate human deaths from dog-mediated rabies in India by 2030 through awareness, prevention and scientific capacity building.

Overall, the Companys India formulations business revenue grew by 11%, to Rs. 65,740 million in FY2025-26 from Rs. 59,281 million in FY2024-25.

North America Formulations Business

North America Formulations remained the Companys largest business during FY2025-26, contributing 44% of total sales. The business comprises a strong generics portfolio and a growing presence in specialty and rare diseases in the US and recently commenced operations in the Canadian generics market. In addition to the above, the Company embarked upon its journey in the biosimilars space and attained a critical milestone by licensing two large molecules during the year. Acquisition of Agenus Inc.s two US-based biologies manufacturing facilities during the year marked the entry into the biologies Contract Development and Manufacturing Organisation (CDMO) space.

Generics Business

The Company has strengthened its position in the US generics market, moving from fifth to third by prescription volume over the last four years. This progress reflects the success of its strategic investments and continued focus on improving patient access across a wide range of therapies.

During FY2025-26, the Companys total prescriptions (TRx) grew by 7% compared to the previous year. The Company markets 266 products, with a leadership position in approximately 22% of product families and ranking among the top three players in nearly 55% of product families. Its sustained performance in the generics segment is supported by a diversified portfolio developed through in-house development and strategic partnerships, aLong with strong product quaLity, customer service and a resilient supply chain that enabLes consistent avaiLabiLity and Long-term growth.

During the year, the Company Launched 19 new generic products in the US market and received 26 new product approvals, including 6 tentative approvals, taking the cumulative approvals to 435. It also filed 30 Abbreviated New Drug Applications (ANDAs) with the United States Food and Drug Administration (USFDA), increasing the total number of ANDA filings to 508. During the year, the Company entered into a settlement agreement with an innovator Company reLated to its product Mirabegron ER tablets. As part of the agreement, the Company paid USD 120 million, along with per-unit royalties on Mirabegron sales until September 2027, bringing aLL reLated Litigation to an end and allowing the Company to continue selling generic Mirabegron in the US.

The Company continues to strengthen its presence in compLex generics, which remains a key growth area due to the specialised scientific and regulatory expertise required for development. The Company has invested in in-house R&D capabilities and complemented these efforts through partnerships and in-licensing opportunities to accelerate product development, optimise investments and manage risks. This integrated approach has heLped expand its pipeline and enhance its competitive position in the compLex generics segment.

The Company also commenced commercial operations in Canada during the year and Launched three products. As of March 31, 2026, it had received five Abbreviated New Drug Submission (ANDS) approvals, including one tentative approval from HeaLth Canada, whiLe cumulative ANDS filings stood at 26.

Specialty Business

The Company has been expanding its presence in the specialty segment by building a differentiated portfolio through the 505(b)(2) regulatory pathway. Through this approach, the Company aims to develop patient-focussed solutions that improve treatment adherence and address unmet healthcare needs. Zydus continues to focus on identifying innovative solutions that create meaningful value for patients.

The portfolio has been strengthened through in-house development capabilities, partnerships and pipeline of LiqMeds, which specialises in oral liquid formulations for paediatric and geriatric patients.

The Company has Launched 3 products from its in-house 505(b)(2) pipeline viz. Sitagliptin tablets, Sitagliptin and Metformin Immediate Release (IR) tablets and Sitagliptin and Metformin Extended Release (ER) tablets under the brands Zituvio™, Zituvimet™ and Zituvimet™ XR. Sitagliptin tablets ranked among the Companys top 10 marketed products during the year (Source: IQVIA SMART March 2026).

It also Launched Beizray™, an Albumin Solubilised Docetaxel Injection and the Companys first oncology product under the 505(b)(2) pathway, introduced through a partnership- led arrangement. The formulation does not contain synthetic excipients such as Polysorbate-80 and SuLfobutyL Ether CycLodextrin, thereby heLping reduce associated adverse events.

The Company entered into an exclusive Licensing and commercialisation agreement with RK Pharma Inc for a novel sterile injectable oncoLogy supportive care product, with an expected New Drug Application (NDA) filing during calendar year 2026. OveraLL, 24 products are currently under development under the 505(b)(2) route (both in-house development and partnerships).

From the LiqMeds portfolio, the Company has so far filed 14 products, received USFDA approval for 10 products and launched 7 of them.

Orphan and Rare Disease Business

Orphan and ultra-rare diseases constitute a niche, focussed area of the Companys US business. The Company has built its presence in this segment through an inorganic route and currently has three commercialised products in this space, namely Nulibry?, Zokinvy1 and Zycubo1.

Both Nulibry1 and Zokinvy? have approvals in multiple geographies in addition to the USFDA approval Nulibry1 is approved by EMA, MHRA and the reguLatory authority in Israel for the treatment of MoLybdenum Cofactor Deficiency (MoCD) Type A, an uLtra-rare disease. Zokinvy1 is approved in the EU, UK, Japan and IsraeLfor Hutchinson-Gilford Progeria Syndrome (HGPS), a group of ultra-rare, fatal genetic premature ageing disorders. Access to these therapies in other regions is provided through managed access programmes.

During the year, the Company received finaL USFDA approvaL for Zycubo1 (Copper Histidinate), making it the first and onLy approved therapy for Menkes disease, an ultra-rare condition. Zycubo" will also be made available outside the US through managed access programmes.

The Company entered into an agreement with PRG S&T, a South Korea-based Company specialising in the development of therapies for rare genetic diseases, to licence its investigational molecule, Progerinin (SLC-D011), for the treatment of HGPS. Upon meeting certain milestones, the Company will obtain full rights to this drug candidate, which has an orphan drug designation from the USFDA and represents a potential second therapy for HGPS.

Biosimilar Foray

The Company commenced its journey in the US biosimilars space during the year through licensing partnerships for two large molecules. The Company partnered with Formycon AG to exclusively licence and commercialise FYB206, a biosimilar of Keytruda" (Pembrolizumab), in the US and Canada. Formycon AG will develop, manufacture and supply the product, while the Company will commercialise it in the licensed territories. FYB206 successfully completed clinical development during the year, marking a major step towards the USFDA filing.

The Company also partnered with Bioeq AG for NUFYMCO?, an interchangeable biosimilar of Lucentis? (Ranibizumab) for the US market. The Biologies License Application (BLA) for NUFYMCO1 received approval from the USFDA during the year.

Bio CDMO Initiative

In line with its vision of going beyond the piLLto create a deeper impact on patients lives, the Company has entered the global biologies CDMO business by acquiring two US-based bioLogics manufacturing facilities from Agenus Inc. This acquisition marks the Companys strategic investment in the US-based manufacturing for biologies, thereby adding a sustainabLe growth driver for the group.

The CDMO business will operate as an independent entity and will manage the acquired manufacturing capabilities. The facilities come with an experienced professional team with strong capabilities and requisite industry expertise to deLiver high-quality bioLogics development and manufacturing services to global biotech and pharmaceutical companies.

As part of the transaction, the Company will act as the exclusive contract manufacturer for Agenus and will provide clinical and commercial supply of two Phase Ill- ready immuno-oncology products, BotensiLimab (BOT) and BaLstiLimab (BAL). The Company will also have the first right of negotiation to manufacture any future pipeline products developed by Agenus.

Animal Health Business

The Company completed its third year in the US animal healthcare business during FY2025-26. During the year, it received approvals for 2 Abbreviated New Animal Drug Applications (ANADAs) and launched 4 new products. Cumulative ANADA approvals and product Launches stood at 11 and 10, respectively. The Company undertook several initiatives to expand channels, improve product placements, strengthen stakeholder relationships and build demand- generation capabilities to strengthen the business.

Overall, the Companys North America formulations business recorded revenue growth of approximately 6%, rising to Rs. 1,16,820 million in FY2025-26 from Rs. 1,10,500 million in FY2024-25.

Looking ahead, the Company is weLL-positioned to sustain its US growth trajectory by capitaLising on its established generics portfolio, expanding its specialty footprint and strengthening its presence in the paediatric rare disease segment. In addition, the emerging bioLogics and CDMO business provide new avenues for diversification and Long-term vaLue creation, supporting the Companys commitment to sustainabLe growth. These strategic piLLars, supported by enduring customer relationships, robust manufacturing capabilities, an agiLe suppLy chain and disciplined cost management, are expected to drive sustainabLe vaLue creation and Long-term shareholder returns.

International Markets (IM) Formulations Business

International Markets formuLations business continues to play an increasingly important roLe in the Companys pharmaceutical business, emerging as another strong pillar of growth alongside the US and India businesses. Over the past severaL years, the business has consistently delivered robust doubLe-digit revenue growth, Leading to a sustained increase in operating margin.

On the IM front, the Company has a diversified presence across Emerging Markets and Europe through direct operations and strategic partnerships. Emerging Markets cover Asia Pacific, the Middle East, Africa and Latin America, while in Europe, the Company operates directly in France, Spain and the UK, with other markets served through a business-to-business (B2B) model.

Across Emerging Markets, the Company primarily operates in branded generics, with a strong focus on Cardiovascular System (CVS), Central Nervous System (CNS) and Pain Management therapies, while expanding and strengthening its presence in adjacent therapies of Diabetology and Metabolic Disorders.

The Company is also building its Critical Care and Oncology portfolio to enhance participation in institutional channels. The Company works closely with leading medical professionals and Key Opinion Leaders (KOLs) to advance clinical engagement and improve patient outcomes. Over time, it has strengthened its engagement model through multiple research-oriented and educational initiatives, fostering deep and enduring relationships with stakeholders across the healthcare value chain.

The marketing approach has progressively transitioned from a brand-centric focus to a holistic, disease-led framework that actively involves all participants across the healthcare ecosystem. This evolution has been instrumental in building a strong and sustainable brand franchise, reflected in a portfolio of 51 brands within the Million Dollar Club (MDC), including 17 new entrants added over the past four years.

In the Asia Pacific, the Company benefited from improving healthcare access, growing needs of the ageing population and stable demand for chronic therapies. Growth in the Philippines was supported by the Universal HeaLth Care (UHC) Act, while Myanmar saw increased demand driven by Lifestyle-related disorders and greater private-sector participation. In Sri Lanka, strong distributor partnerships and demand for affordable generics supported growth, with the Company retaining leadership in the participating market with a 19% market share.

The Africa region witnessed encouraging growth supported by rising healthcare investments and improved access to essentiaL medicines. In South Africa, market growth was aided by the rollout of the National Health Insurance (NHI) framework, better public procurement and faster reguLatory approvals. The Company reported modest growth in South Africa during the year due to competitive pressure and evolving market dynamics. The Company remains focussed on strengthening its presence in Central Nervous System (CNS) and Cardiovascular System (CVS) therapies, whiLe expanding its participation in public procurement channeLs.

In Latin America, the Company reported strong, high- double-digit growth in Mexico, driven by public procurement programs and portfolio expansion into adjacent therapies. In Brazil, the branded generics business delivered healthy double-digit growth, supported by rising chronic disease burden, government support and growing demand for affordable therapies.

European operations also delivered positive growth, with France and Spain reporting strong double-digit performance. France benefited from the strong performance of key products and a strategic shift toward wholesalers and organised buyer groups, while Spain continued to outperform the market, driven by a strong pharmacy presence. In the B2B segment, the Company continued to scale operations in existing markets while entering new geographies through partnership-led models.

In the UK, the Company achieved rapid scale-up during its first full year of operations through strong product uptake and in- licensed launches focussed on limited-competition products. Going forward, the Company plans to expand through niche and specialised formulations. The Companys business in the UK will be further strengthened by LiqMeds, its specialty oral liquid formuLations pLatform catering to geriatric and paediatric patients, supported by strong R&D capabilities and a differentiated pipeline.

Overall, the Companys IM formulations business delivered strong 40% growth, reaching 7 30,700 miLLion in FY2025-2G, supported by robust demand across muLtipLe geographies and consistent execution across markets. The business accounted for 11% of total revenues during the year.

Joint Ventures

Zydus Takeda Healthcare Pvt. Ltd.

Zydus Takeda Healthcare Pvt. Ltd. is a 50:50 joint venture (JV) between the Company and Takeda PharmaceuticaLs. The JV operates a manufacturing facility in India for intermediates and Active Pharmaceutical Ingredients (APIs), serving Europe and Japan and complying with national and international Good Manufacturing Practice (GMP) standards. The facility manufactures APIs across therapeutic categories, including antiseptic, analgesic/anti-inflammatory and antihypertensive therapies, which are supplied exclusively to the JV partner for its generics portfolio.

During the year, the facility successfully completed surveillance audits for the International Organisation for Standardisation (ISO) 45001 and ISO 14001, as well as three customer audits. The JV also implemented multiple efficiency improvement initiatives to enhance yields, reduce operating costs and shorten processing time. As part of its digital initiatives, 38 OpsTrakker eForms were rolled out by December 2025, improving process standardisation and compliance, enhancing traceability and reducing paperwork.

Zydus Hospira Oncology Pvt. Ltd.

Zydus Hospira Oncology Pvt. Ltd. is a 50:50 contract manufacturing JV between the Company and Hospira, now part of Pfizer. The JV manufactures oncology injectable products and supplies them to the JV partners for their respective markets. The JV has an annual manufacturing capacity of up to 7 million vials.

During the year, the JV strengthened its presence through its first product suppLies to China and expanded its portfolio in India with the launch of three molecules. The JV faciLity successfully completed the Taiwan FDA (TFDA) reguLatory inspection and Pfizers EH5 L-2 audit with no critical or major observations.

Sterling Biotech Limited

Protein is emerging as an increasingly important nutritional and functional ingredient across food, health and weLLness applications. At the same time, the need for reliable, scalable and sustainabLe sources of high-quality protein is becoming more critical for ensuring long-term supply resilience. Precision fermentation offers one such opportunity, enabling the production of animal-free dairy proteins with applications across high-protein nutrition, lactose-free dairy, sports nutrition and other functional food segments.

With this strategic context, the Company entered the precision fermentation space through a 50:50 joint venture with Perfect Day Inc. The joint venture, Sterling Biotech Ltd., is progressing with the development of its new animal-free protein manufacturing facility in Gujarat. The facility is being set up to manufacture precision-fermented dairy proteins for global markets. Operations are expected to commence in the second half of CY 2026, followed by a phased ramp- up in 2027.

The JV also has an established operating base as one of Indias leading gelatin players, with a strong presence in pharmaceutical-grade gelatin and Di-Calcium Phosphate from its facilities in Gujarat. The gelatin business caters to pharmaceutical, nutraceutical, food and technical applications, and supplies to customers across more than 15 countries.

CONSUMER WELLNESS

Zydus Wellness Limited (a subsidiary of the Company) is a leading Indian consumer wellness company focussed on building purpose-led, science-backed brands that address evolving consumer needs across health, nutrition and personal care. The business combines strong category leadership in India with an expanding international footprint, supported by a portfolio of trusted brands and a growing digital-first presence globally.

In India, the Company operates across three key segments viz. Seasonal, Skin & Healthcare and Food & Nutrition products, with a portfolio of category defining brands such as Glucon D, Complan, Sugar Free, Nycil, Everyuth, Nutralite and RiteBite Max Protein. These brands enjoy leadership positions in their respective categories and are underpinned by continuous innovation and strong consumer connections.

The business is supported by a robust and deeply embedded distribution network. It has a direct reach of ~0.7 million outlets, with an overall presence in approximately 2.8 million retail stores across the country. This reach is enabled through a network of over 1,950 distributors and a field force of ~2,700 "feet- on-street" representatives, ensuring strong availability and market execution. Through its wide portfolio and distribution strength, the Company nourishes, nurtures and energises over 70 million families in India.

The acquisition of Comfort Click Limited during the year marks a key milestone in the Companys strategic evoLution. The acquisition expands the Companys global presence in the fast-growing digital vitamins, minerals and supplements (VMS) segment, strengthens the capabilities in personaLised wellness and reinforces the focus on innovation-Led, consumer-centric solutions. With its digital-first modeL and strong brands, Comfort Click Limited positions the Company well to scale sustainable wellness offerings globalLy and advance the shift toward preventive healthcare.

Overall, the business delivered 46% growth during the year driven primarily by the acquisition of Comfort Click Limited. In terms of geographic performance, the international business (including the CCL business) delivered like-for-Like growth of 29.5%, while the domestic business grew by 2,4%. Within the domestic business, seasonal brands decLined by 18.8%, primarily due to earLy and prolonged rainfaLL, whereas skin and hair care brands grew by 21.9% and food and nutrition brands grew by 15.5%.

Domestic business continued to witness a steady shift towards organised channels, with saliency improving to 30% in FY 2025-26 from 24% in FY 2024-25, driven by premiumisation and strong growth in modern trade and e-commerce channels.

Key Business Strategies

The Company strengthened its core franchises through purposeful innovation, sharper consumer segmentation, agile media planning and channel-led retail execution. It enhanced capabilities in data-driven demand forecasting, micro-market prioritisation and analytics-based go-to- market (GTM) optimisation to improve responsiveness. The Company continued to drive growth across both existing and new products through integrated multichannel advertising, in-store activations, strategic pricing, consumer engagement programs, expanded distribution, improved retail execution, better shelf visibility and stronger trade partnerships, enabling faster penetration across channels, particularly in modern trade, e-commerce and quick commerce.

FY 2025-26 marked a milestone year in the Companys growth journey, with acquisitions playing a transformative role in strengthening its international presence and diversifying its wellness portfolio. Acquisition of Comfort Click Limited expanded the global footprint across the UK, Europe and the US, while strengthening the presence in the fast-growing VMS segment across adult, paediatric and animal health categories. Anchored in a digital-first, D2C-led model, the platform enhanced the e-commerce capabilities and widened consumer access. Its strong portfolio of brands viz. WeightWorld, Maxmedix and Animigo have enabled the Company to scale across new markets and channels. Continued expansion and partnerships have further reinforced the Companys role in preventive healthcare and strengthened our position in international wellness markets.

The Company continued to expand its international presence across SAARC, the Middle East & Africa (MEA), Southeast Asia (SEA) and the Indian Subcontinent Cluster (ISC) through geographic expansion and new product launches aligned to regional needs. RiteBite Max Protein expanded into 9 international markets in its first year of acquisition, deepening its global reach. Complan, Sugar Free, RiteBite Max Protein and Nycil remained key contributors supported by strong brand equity and wider distribution.

The acquisition of Comfort Click further strengthened the Companys international diversification strategy by enabling entry into the United Kingdom (UK), the European Union (EU) and the United States of America (USA) and participation in the global digital Vitamins, MineraLs & Supplements (VMS) ecosystem.

Supported by strong R&D capabilities, the Company remained focussed on expanding its consumer base and improving profitability through new product development and extensions in response to evolving consumer preferences. The Company has optimised brand communication through refreshed narratives and improved media strategies to achieve greater precision in consumer connection. The Company has transitioned from a distribution-led model to establishing direct relationships with modern trade and e-commerce partners, driving supply chain efficiencies, improved product availability, reduced Lead times and margin expansion. This strategic shift, coupled with a sharper focus on organised trade and channel-specific offerings, has strengthened organised trade saliency to 30% in FY2025-26 (17% e-commerce, 13% modern trade), with quick commerce emerging as a key growth driver within e-commerce.

The Company accelerated its digital transformation to improve customer engagement, enhance operational efficiency and enable sharper, data-driven decision-making. Targeted investments in advanced analytics and Al-enabled platforms have delivered measurable benefits, including more effective media spend optimisation, improved demand forecasting, deepened consumer engagements and streamlined inventory management. It supported its Direct-to-Consumer (D2C) presence through brand-owned platforms and marketplace integrations, enhancing reach and consumer data ownership.

The Company remains committed to sustained investments in digitalisation, automation and real-time capabilities to support scalable, future-ready growth.

Overall, the Companys Consumer Wellness business recorded revenue growth of 46%, rising to Rs.39,134 million in FY2025-26 from Rs.26,810 million in FY2024-25. The business accounted for 15% of total revenues during the year.

MEDTECH BUSINESS

In FY2025-26, the Company continued to develop its MedTech business as a focussed extension of its healthcare portfolio, with an emphasis on Orthopaedics, Cardiology and Nephrology. The year reflected consolidation and capabilitybuilding through platform strengthening, expanded access to technology and improved operational integration to support medical device commercialisation across selected markets. Overall, the Companys Med-Tech business recorded revenues of Rs. 7,823 million in FY2025-26 accounting for 3% of total revenues.

During the year, the Company completed the acquisition of Amplitude Surgical, a France-based Orthopaedics MedTech Company, in line with its strategy to build a differentiated and globally competitive MedTech portfolio. The acquisition strengthens the Companys presence in the high-growth Orthopaedics segment and provides access to developed markets in Europe, enhancing its geographic diversification and Long-term growth prospects.

Amplitude operates in the orthopaedic impLants and surgicaL technologies space, focussing on Lower-Limb solutions, including knee and hip implants, as weLL as associated procedural innovations. The Company has a strong presence across France and other European markets, supported by a well-established distribution network. It operates a manufacturing facility in France and is backed by a skiLLed workforce with deep domain expertise in orthopaedics, R&D and precision engineering. Going forward, the Company aims to Leverage Amplitudes capabilities to scaLe up its global MedTech footprint, drive portfolio expansion and enhance market penetration across key geographies, supported by synergies in innovation, manufacturing and commercialisation.

During the year, Amplitude also received CE (Conformite Europeenne) mark approval for its "Andy" robotic surgical solution, consolidating its advanced technology portfolio in regulated European markets.

In Cardiology, the Company expanded through portfolio growth and partnerships, increasing its presence in interventional cardiology with products such as stents and related devices. It also entered into a partnership with BraiLe Biomedica for Transcatheter Aortic Valve ImpLantation (TAVI) technology, enabling access to advanced cardiovascular devices across select markets, including Europe and India, in line with its focus on higher-technoLogy solutions.

In Nephrology, the Company is establishing a facility in India to manufacture high-end diaLyser membranes to support patients with chronic kidney disease.

Overall, FY 2025-26 was a year of structured progression in the MedTech space, marked by the consolidation of core pLatforms, the enhancement of technology capabilities, selective investments and the strengthening of commercial integration.

FINANCIAL OVERVIEW

In FY2025-26, Zydus delivered strong financial performance with healthy double-digit growth, driven by sustained growth across its core and base businesses and supported by strategic inorganic initiatives. Revenue from operations increased to Rs. 271.5 billion from Rs. 232.4 billion in FY2024-25, registering a year-on-year growth of 17%. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew by 20% to Rs. 84.8 billion from Rs. 70.6 billion in the previous year, supported by an improved product mix, operating leverage benefits and favourable forex tailwinds, with EBITDA margin improving by 80 basis points to 31.2%. Profit after tax (PAT), adjusted for exceptional items, rose by 15% to T 54.6 billion from Rs. 47.5 billion, reflecting sustained profitability and value creation. The Company continued to strengthen its innovation focus, with R&D investments increasing to Rs. 22.7 billion, accounting for 8.4% of revenues, up from Rs. IB.6 biLlion in FY2D24-25, underscoring its commitment to Long-term, innovation-Led growth.

Key Change in Significant Financial Ratios

Ratios	FY 2025-26	FY 2024-25	% YoY Change	Reason for change (in case the change is 25% more)
Current Ratio (x)	1.27	1.89	-32.8%	Due to increase in current liabilities on account of increase in borrowings
Inventory Turnover (x)	5.58	6.11	-8.7%
Trade Receivables Turnover (x)	5.62	4.85	15.9%
Trade Payables Turnover (x)	10.43	10.24	1.9%
Debt-to-Equity Ratio (x)	0.43	0.13	230.8%	Due to increase in borrowings
Debt Service Coverage Ratio (x)	1.00	2.20	-54.5%	Due to increase in borrowings
Net Profit Margin (%)	18.6%	19.5%	-4.6%
Return on Equity (%)	21.4%	21.7%	-1.4%
Return on Capital Employed (%)	21.6%	24.7%	-12.6%

RISK MANAGEMENT J

Zydus follows a structured risk management approach to identify, assess and manage risks across its operations. The Risk Management Committee, supported by the Chief Risk Officer and business teams, oversees the risk framework and ensures that risks are regularly monitored, evaluated and addressed through appropriate mitigation measures. The Companys risk management process includes identifying key risks, assessing their potential impact, implementing response strategies and continuously reviewing controls to strengthen business resilience. Key risks, including regulatory changes, competition and pricing pressures, geopolitical uncertainties, litigation, product approval delays, foreign exchange fluctuations, cybersecurity threats, supply chain disruptions and project execution challenges, are activeLy managed. This is done through strong compliance frameworks, robust operational controLs, adoption of advanced technology, financial risk safeguards and proactive pLanning across business functions. The Company aLso focusses on emerging risks, including digital transformation challenges, data privacy requirements and evoLving stakeholder expectations, by continuously enhancing its capabilities and strengthening its systems to support sustainabLe growth.

Please refer to page no. 30 for more details about our Risk Management framework

INTERNAL CONTROL AND AUD IT

The Company has established a robust internal control framework to ensure efficient operations, safeguard assets, maintain reliable financial reporting and ensure compliance with applicable Laws and regulations. The Company conducts regular enterprise-wide assessments to identify and evaluate emerging and existing risks across its operations. Zydus has also implemented internal controLs across various operational areas to support the overall risk management process. The Company has established an Internal Financial Control (IFC) framework in accordance with the requirements of the Companies Act, 2013, to ensure effective oversight of financial reporting processes. Zydus maintains a well-defined internal audit mechanism that independently reviews the adequacy and effectiveness of these controls. The Company ensures that the Audit Committee regularly evaluates the internal auditors findings and recommendations and advises management on strengthening the internal control environment. Zydus continuously reviews and enhances these systems and processes to maintain a strong, transparent and reliable internal control framework across the organisation.

CAUTIONARY STATEMENT

The Management Discussion and Analysis may include certain statements regarding the Companys objectives, plans, projections, estimates and expectations that may be considered forward-looking statements under applicable laws and regulations. These statements are based on informed judgements and assumptions. Flowever, actual results may differ materially from those expressed or implied due to various risks and uncertainties. Such factors include political, technological and economic conditions that affect demand, supply and price Levels in both domestic and international markets. They aLso include changes in government regulations, policies and tax laws. In addition, the availability and pricing of key components, competitive pressures, foreign exchange fluctuations and other related factors may also influence the Companys actual performance and outcomes.