Cipla Ltd Management Discussions

Cipla is dedicated to enhancing healthcare outcomes for patients across global markets. Guided by its purpose of Caring for Life, the Company demonstrates strong capabilities across multiple therapeutic areas, with a leadership position in Respiratory care, particularly in India and select emerging markets. The Company continues to transform its business models, expand its global footprint, and reinforce its competitive edge.

The Company invests in automation and digitalisation to improve efficiency, reliability and scalability across portfolio selection, manufacturing operations, supply chain management and quality systems. A sustained emphasis on talent development and capability building supports a culture rooted in agility, innovation and operational discipline. A robust quality management framework allows for strict adherence to global regulatory standards, supported by advanced manufacturing infrastructure that enables the delivery of high quality products across markets. In research and development, the Company has been increasing investments in Respiratory therapies, peptide injectables and biosimilars, while embedding data science and digital technologies to enhance productivity, decision making and development outcomes.

Cipla offers complex products at affordable prices, serving patients with innovative Respiratory drug-device combinations, complex formulations and a wide array of capabilities across injectables, oral solids and inhalation therapies. The Company strategically leverages opportunities while managing the associated risks.

Globally, Cipla works to meet patient expectations, strengthen core operations and identify emerging opportunities to deliver superior value to the shareholders. Cipla focuses on fortifying core franchises while exploring new areas like complex generics, biosimilars, new therapies, inhalation devices, diagnostic solutions, advanced technology platforms and digitised business models. The consumer business has shown steady growth, addressing unmet needs in categories such as pain relief, cold and cough, smoking cessation, gut health, skincare and feminine hygiene.

The total amount spent on purchasing medicines from manufacturers before off-invoice discounts and rebates is projected to reach USD 2.6 trillion by 2030, growing at an annual rate of 5-8%. Key drivers of growth through the forecast period include the contribution of new products and the impact of patent expiries, including the growing impact of biosimilars.

By 2030, the highest forecasted therapy areas for spending include Oncology, Immunology, Diabetes, Cardiovascular and Obesity. Oncology is expected to see a 9-12% CAGR with spending expected to reach USD 467 billion in 2030. It is driven by the continued launch of novel cancer treatments and the availability of biosimilars and generics for key products. Diabetes is projected to become the third-largest therapy area globally, reaching nearly USD 214 billion by 2030, with an estimated growth of 4-7% over the next five years. Respiratory also forms part of the top 10 therapies with global spending expected to reach USD 116 billion by 2030. Global obesity spending is projected to reach approximately USD 125 billion by 2030, with growth of 12-15% per year due to rapid adoption of GIP/GLP-1 Drugs.

In the long term, the Company plans to enhance its footprint in 505(b)(2) and oligonucleotide assets, while pursuing biosimilar opportunities through partnerships. Additionally, the Company aspires to become Future Fit by continuing to invest in emerging therapies.

Evolving Framework across Key Regulated Markets

The approval of novel drugs, first generics, biologics and biosimilars progressed steadily across nations, ensuring seamless availability of essential chronic treatments for patients globally. Meanwhile, the global pharmaceutical sector is witnessing major influences from evolving regulatory policies, rising geopolitical uncertainties, the adoption of advanced digital health solutions and therapeutic advancements. These elements are collectively driving innovation and shaping the industrys future.

Evolving Geopolitical Dynamics

Global geopolitical and economic uncertainty is increasingly exposing pharmaceutical companies to a range of operational vulnerabilities. Supply chain disruptions, rising logistics, compliance costs and heightened foreign exchange volatility are affecting the reliability and cost efficiency of global operations. Geopolitical tensions and evolving regulatory actions are creating additional uncertainties around sourcing, manufacturing and product availability in key markets. These pressures are amplified by the industrys dependence on third party manufacturers and sole source suppliers, making pharma companies more susceptible to interruptions, delays and market-wide shortages.

National List of Essential Medicines, 2022 - Indian

Pharmaceutical Market

In a bid to make drugs affordable, the Ministry of Health and Family Welfare revisits and revises the National List of Essential Medicines ("NLEM") every five years. The NLEM 2022 was released by the Ministry in September 2022, a revision to the previous NLEM 2015 (delayed by around two years due to the pandemic). From 11st November, 2022, the prices of numerous antibiotics, vaccines, anti-cancer drugs and other essential medications have been reduced to improve affordability. The NLEM focuses on aspects such as safety, efficacy, availability and affordability.

It comprises of 384 drugs across 27 categories. While the 2022 list has 34 new drugs, 26 drugs from the 2015 list have been removed. Cipla is compliant with the Drug (Prices Control) Order ("DPCO") and ensures adherence to pricing regulations set by the government. The Company is committed to patient well-being by prioritising patient-centricity, affordability, and accessibility through the production of high-quality medicines.

Advanced Therapies

The pharmaceutical industry is increasingly shifting towards advanced therapeutic modalities, including cell and gene therapies such as CAR-T, oligonucleotides and next generation biologics, reflecting a broader move towards precision-based and high impact treatments. These modalities are gaining prominence across global R&D pipelines, particularly in therapies like Oncology and rare diseases, supported by improving late stage success rates, advances in manufacturing technologies and the use of expedited regulatory pathways. As our understanding of diseases advances and therapeutic innovations focus more on complex conditions with high unmet needs, advanced therapies are poised to become a key driver in the next phase of biopharmaceutical innovation.

Health Tech Innovations

Digital health solutions are revolutionising the pharmaceutical industry by enhancing patient care and streamlining operations. By leveraging telemedicine, health apps and wearable technologies, these solutions enable remote monitoring and personalised treatment. These innovations improve medication adherence, facilitate real-time data collection and support R&D. Additionally, digital platforms strengthen communication between healthcare providers, patients and pharma companies. Together, they drive efficiency, accessibility and better health outcomes globally.

Medical Devices

In FY 2025-26, the medical devices sector in India continued to mature through stronger risk-based regulation, expanded digital licensing and sustained government support under the National Medical Devices Policy and Production Linked Incentive ("PLI") framework (for Promoting Domestic Manufacturing of Medical Devices). Against this evolving regulatory and market environment, Cipla remained focused on strengthening its respiratory devices and diagnostics ecosystem, supported by enhanced internal regulatory governance and lifecycle management practices aligned with global quality and post- market surveillance expectations. The Company continued to build regulatory-ready, scalable device capabilities to support access to high quality. Respiratory solutions in India and select international markets, reinforcing its long term commitment to lung health and patient-centric innovation.

Artificial intelligence

Cipla is reimagining the future of healthcare by placing Artificial Intelligence at the heart of its enterprise. What began as a set of digital enablers has evolved into an intelligence-driven operating model-one that accelerates discovery, personalises care, and elevates quality at scale. From Al-guided molecule exploration in our core therapy areas, to autonomous manufacturing systems that sense, learn and self-optimise, to predictive supply chains and next generation patient engagement platforms, we are building capabilities that redefine both speed and certainty. GenAI copilots are now embedded across functions, transforming how the Company develops medicines, designs clinical evidence, engages physicians and runs operations. These advancements reflect more than technological progress; they embody Ciplas long term vision of shaping an agile, insight led and resilient healthcare ecosystem that advances our purpose of Caring for Life in a world being rewritten by intelligence.

Key Financial Highlights

Please refer to Financial Capital on page no. 126 of this Report for key financial highlights and the financial performance of the Company in FY 2025-26.

Business Performance and Outlook

One-India

Ciplas One-India business comprises its branded formulations segment, the trade generics portfolio (operating under Cipla Pharma and Life Sciences Limited, wholly owned subsidiary of the Company) and consumer health division (operating under Cipla Health Limited, wholly owned subsidiary of the Company). The One-India business delivered a 9% growth for the year, driven by strong performance across Branded Prescription, Trade Generics, and Consumer Health. The business continues to experience sustained momentum across its core therapeutic areas.

For FY 2026-27, the strategic focus will be on sustaining market outperforming growth, increasing the contribution from Respiratory and chronic therapies with increasing presence in Anti-diabetes, strengthening the performance of key brands, enhancing medical representative productivity to industry leading levels and elevating patient experience through advanced digital analytics and data science initiatives.

Branded Prescription business

Ciplas Branded Prescription business delivered healthy growth this year, supported by continued traction in key segments, especially chronic therapies. Chronic therapies have contributed significantly to growth, with therapies like Respiratory, Urology, Anti-Diabetes and Cardiology maintaining double-digit growth. (Source: IQVIA MAT March 2026)

Foracort surpassed the Rs. 1,000 crores milestone and continues to dominate as one of the leading brands in the Indian Pharmaceutical Market ("IPM"). Other key brands have continued to outperform the market across key therapies. Dytor franchise and Montair LC have entered into the IPM top 50 in their respective segments and are now set to cross Rs. 700 crores and Rs. 400 crores milestones respectively in the near future. Cipla has six brands above the Rs. 300 crores milestone, further cementing our presence in the market. (Source: IQVIA MAT March 2026)

Therapy	Market Share	Cipla Growth	Market Growth
Overall	5.6%	8.5%	9.9%
Respiratory	26.2%	10.9%	11.8%
Urology	12.4%	11.3%	11.0%
Anti-infectives	7.4%	5.3%	4.8%
Cardiac	4.9%	12.1%	14.3%
Anti-diabetes	3.4%	17.3%	12.2%
Derma	2.9%	11.1%	6.8%

Ciplas Branded Prescription business continues to reinforce leadership in targeted therapies through strategic collaborations with leading global pharmaceutical companies. The Companys in-licensing portfolio has continued to scale steadily over the past few years. Key partnerships include in-licensing agreements with Novartis and Eli Lilly in the Anti-Diabetes segment, Roche in Oncology, Sanofi in Anti-epilepsy, and Orchid Pharma in the Antimicrobial resistance portfolio. The collaboration with MannKind for inhaled insulin Afrezza will be the first-of-its-kind in India, significantly enhancing Ciplas Anti-Diabetes offerings. Further strengthening its Ophthalmology portfolio, the Company has signed the first multi-regional licensing agreement with Formosa Pharmaceuticals to bring the innovative clobetasol propionate ophthalmic suspension to market. In addition, the agreement with Eli Lilly on Yurpeak marks Ciplas entry into GLP-1 and GIP obesity care with the same commitment and scale that have defined its efforts in Respiratory and chronic therapies.

Cipla and Pfizer entered a multi-year exclusive partnership in December 2025 under which Cipla will market and distribute four key brands of Pfizer. This collaboration leverages Ciplas extensive domestic distribution network to significantly expand patient access to these established therapies across the country.

During the year, Cipla strategically expanded its branded portfolio with high-impact launches across priority therapies.

In Respiratory, we introduced Voltido Trio Ciphaler in Q1, an advanced triple combination (fluticasone furoate, umeclidinium, and vilanterol) for Chronic Obstructive Pulmonary Disease ("COPD") and Asthma designed to improve lung function. The Company also launched XTIKTR, the first minimally invasive solution of its kind in Asia for the management of urethral strictures, strengthening its Urology franchise. To address the growing burden of Antimicrobial resistance, Cipla augmented its Antimicrobial resistance portfolio with HUENA?, ZEMDRI?, and Cipenmet, broadening both non-antibiotic and advanced antibiotic options to meet critical care needs. The Company further reinforced its presence in acute infections with the introduction of Rizontem as an anti-infective therapy, and launched Tedispan (Tedizolid Phosphate), a next-generation oxazolidinone antibiotic for the treatment of acute bacterial skin and skin structure infections (ABSSSI). In Gastroenterology, the launch of Elbicip, a first-in-class molecule for constipation management, expanded Ciplas offerings in chronic care.

Complementing organic growth, the Company executed focused M&A to build scale in priority therapies and enhance capabilities. Cipla acquired the Doloneuron and Zolsoma brands from Pulse Pharmaceuticals, strengthening its Central Nervous System ("CNS") portfolio in neuropathic pain and sleep disorders. The Company also completed the 100% acquisition of Inzpera Healthsciences Limited, adding a differentiated pediatric and wellness portfolio with strong brand equity and channel adjacency. In addition, Cipla secured 20% voting rights in iCaltech Innovations Private Limited, a Bangalore-based systems engineering company founded in 2017, deepening access to high-quality medical device development that supports accurate diagnostics and better clinical outcomes. Furthering the Companys commitment to Respiratory care, Cipla launched the Breathfree Lung Wellness Center in Delhi and Mumbai - Indias first dedicated lung diagnostics and wellness center-offering, for the first time, comprehensive panel testing for Asthma, COPD and Interstitial Lung Disease ("ILD").

Outlook for FY 2026-27

The Cipla Branded Prescription business remains committed to boosting growth trajectory and delivering market beating growth. The strategy will be to focus on strengthening the Companys strong brands and developing new launches in Anti-obesity, Anti-diabetes, Antimicrobial Resistance ("AMR") and Respiratory therapies. Cipla will continue to empower its field force to better engage with Healthcare Professionals ("HCPs") and provide comprehensive support. With the advent of emerging technologies and analytics solutions, the Company will seek to leverage such technologies to enhance existing business operations. Cipla will continue to maintain focus on volume-driven and new introduction-driven growth, to mitigate any impact due to NLEM-driven changes.

Trade Generics business

In FY 2025-26, the Generics business unit delivered double-digit growth, centred on building stronger brands, deepening consumerisation, accelerating new product launches, and strengthening customer engagement delivering robust growth. The year marked significant progress in enhancing brand equity, with several flagship brands delivering robust growth and reinforcing the Companys leadership within the trade generics market. Notably, Cipcal, Cheston, Rexcof, Nodard all delivered robust 20% + growth with Cheston entering Rs. 100 crores+ club.

The retail vertical remained a key growth engine, registering strong performance while expanding its reach to more than 1.5 lacs retail and pharmacy outlets. This deepened footprint ensured broader last-mile access to high-quality generics, strengthened on-ground execution, and supported sustained demand generation across diverse markets. High value brands like Montecip and Clearwax clocked 40%+ growth. Further, secondary demand exposure increased to a wider range of portfolios during the year.

During the year, the business also expanded its portfolio into high-potential consumer health categories, including ortho-support and sexual wellness. These additions enabled meaningful participation in fast-growing, consumer-driven segments and complemented the existing portfolio to better align with evolving patient needs.

Customer-centricity remained a core focus, with several initiatives rolled out to enhance experience and loyalty across retail and trade channels. These programmes delivered measurable improvements in satisfaction and strengthened long-term partnerships. Supported by greater adoption of digital tools and data-driven insights, the business further sharpened its ability to engage customers effectively and responsively.

Outlook for FY 2026-27

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.

Consumer business

In India, Ciplas consumer health business is operating under its wholly owned subsidiary, Cipla Health Limited ("CHL"). In FY 2025-26, the business continued to drive the theme of illness to wellness led by brand building initiatives, deep distribution, and category innovations.

The business delivered strong growth with healthy profit margins led by healthy traction in both core and emerging brands driven by high consumer awareness through robust media campaigns and in-depth consumer insights conducted throughout the year. The business has five core Rs. 100 crores+ brands and is well-positioned for growth across brands.

CHL has an omni channel sales distribution with presence across chemists, grocers, cosmetic stores, modern trade, e-commerce, quick commerce as well as D2C channels. CHL entered the sexual wellness segment as a new category in FY 2025-26.

Top brands like Nicotex, Omnigel, Cofsils, Prolyte, Cipladine, Endura Mass, Maxirich continue to build a strong connect with their consumers through a 360 degree approach.

North America

Ciplas North America business reported revenue of USD 780 million in FY 2025-26, reflecting sustained traction in the differentiated portfolio and steady performance of the base business. North America remains a key strategic market for Cipla and contributed 24% of the Companys consolidated revenue during the year.

The business continued to benefit from Ciplas focus on complex generics, respiratory therapies and differentiated products, supported by strong customer partnerships and reliable supply across key product categories. Cipla also maintained its leadership position in the Respiratory segment, with its Albuterol franchise continuing to hold a strong presence in the US market, achieving a market share of 19.6% of the total Albuterol MDI market as per IQVIA MAT March 2026. Since launch, the Company has shipped over 67 million inhalers cumulatively to patients in the US.

During FY 2025-26, Cipla expanded its portfolio through several differentiated launches across therapeutic segments. The Company strengthened its peptide portfolio with the introduction of Liraglutide (gVictoza) and Liraglutide (gSaxenda) and further expanded its presence in complex injectables with the launch of Glucagon, another peptide-based therapy. In Oncology,

Cipla launched Paclitaxel Nano, a complex Oncology injectable, reinforcing its focus on specialised therapies. During the year, the Company launched its first biosimilar product, the Filgrastim injection in the US.

Cipla continued to invest in strengthening its Respiratory development and manufacturing capabilities, including ongoing investments in its Long Island and Fall River facilities in the United States. These capabilities support the Companys pipeline of metered-dose inhalers ("MDIs"), dry powder inhalers ("DPIs") and other complex Respiratory products.

Cipla also continued to advance its pipeline of complex generics and differentiated products for the US market. The Company is preparing for upcoming Respiratory launches, including gVentolin, gAdvair and gSymbicort, while continuing to expand its peptide and complex injectable portfolio.

Market Segment	NSP Overall Market Rank	NSP Overall Market Share
Albuterol HFA*	1	19.6%
Budesonide Solution	3	16.0%
Sertraline	2	25.0%
Esomeprazole Granules	1	44.0%
Ipratropium + Albuterol Solution	4	13.0%

Source: IQVIA NSP for the month of MAT March 2026 *Total Albuterol MDI market

Outlook for FY 2026-27

Looking ahead, Cipla remains focused on strengthening its leadership in the US market through a differentiated portfolio and continued investments in complex therapies.

The Companys strategy is anchored on achieving market leadership by volume in the Respiratory segment over the next five years, supported by strong commercial execution in Albuterol and launch readiness for high-value Respiratory assets such as gSymbicort and gAdvair. In April 2026, the Company received regulatory approval for the first AB-Rated gVentolin with CGT, representing the first commercial MDI product to be manufactured from the US facility. The Company is in the process of launching the product in coming months. Leveraging its respiratory platform expertise, development capabilities and manufacturing network, Cipla is well positioned to expand its presence across MDI, DPI and respule dosage forms, covering nearly 70% of the Respiratory market opportunity by size through products launched, filed, or under development.

Beyond Respiratory, Cipla continues to advance its portfolio through complex injectables, IP-led differentiated products and selective 505(b)(2) opportunities, aimed at addressing unmet clinical needs and strengthening long-term portfolio sustainability. The Company is also expanding its presence in biosimilars, with the launch of Filgrastim injection, its first biosimilar product in the United States, and ongoing development through its partnership with Kemwell, alongside exploration of licensing opportunities to further accelerate growth in this segment.

One Africa (South Africa, Sub-Saharan Africa, North Africa, and Cipla Global Access)

FY 2025-26 delivered strong performance across multiple parameters. Despite an intensive competitive environment, One Africa landed at a revenue of Rs. 4,287 crores with growth of 12% in INR terms. Focus on profitability improvements also yielded significant profitability growth for the region.

South Africa

Cipla South Africa continues to perform well, marked by core revenue growth and accelerated profit growth. Overall, the Cipla South Africa business grew by 4% in local currency terms exceeding ZAR 6.5 billion in revenue; led by the exceptional performance in both private and tender businesses. The private business contributed 76% to the overall revenue, with the balance contributed by tender business.

Private Market - OTC and Rx

The South African private market business excelled, outpacing the market with strong growth of 7.1%, more than 1.4 times the market growth, 185 bps ahead of the market. Cipla ranks second in the Rx market with 8.9% market share, ranking first or second where we play in six major therapies representing 75% of the total private market - central nervous system, anti-infectives, mens and womens health, respiratory, oncology, cardio-vascular and metabolic therapies.

Cipla ranks third in the OTC business, with the maximum no. of brands within the top 30 and 50 of the generic OTC segments and 14 brands worth more than ZAR 50 million. Actor Pharma (Pty) Limited continues to drive growth in the OTC segment, with the Sterimar brand growing 14% year-on-year (IQVIA MAT March 2026).

Ciplas South Africa business continues to outperform the market, driven by strong momentum across both Rx and OTC. The Rx portfolio remains a key growth engine, delivering nearly 11% growth and outperforming the market by -422 bps (IQVIA MAT March 2026), while maintaining the second market position with an 8.9% share. OTC performance remains resilient, with Cipla retaining its third position with an 8.0% market share. Overall,

Cipla ranks third in the total market, with growth ahead of the market, reinforcing the strength and balance of its portfolio.

Market Segment	Market Rank	Market Share	Cipla Growth	Market Growth
OTC	3	8.0%	0.2%	2.7%
Rx	2	8.9%	11.0%	6.7%
Overall	3	8.6%	7.1%	5.3%

Source - IQVIA MAT March 2026 Private Market - Therapy View

At a therapy level, Cipla has a leadership position in 6 major therapies, building on this leadership with strong growth and market share increases in all but one.

Therapy	Covered Market Rank	Covered Market Share	Cipla Growth	Market Growth
Central Nervous System	1	32.7%	10.2%	4.2%
Anti-Infectives	1	25.5%	9.8%	1.4%
Mens and Womens Health	1	31.7%	18.6%	8.8%
Respiratory	1	38.9%	3.5%	-0.2%
Pain/Rheuma	2	18.6%	6.2%	2.7%
Dermatology	1	35.6%	11.9%	5.8%

Source - IQVIA MAT March 2026 CAR-T Deal

Cipla entered an exclusive licensing and supply partnership with ImmunoACT to commercialise Talicabtagene Autoleucel, Indias first indigenously developed anti CD19 CAR-T cell therapy, in the Republic of South Africa, Algeria, and Morocco. This collaboration reinforces the Companys commitment to leveraging cutting edge science to deliver transformative and affordable treatments for patients with critical healthcare needs.

Tender

Cipla remains a top five player in the South African tender market, with a longstanding commitment to expanding affordable access to essential medicines across priority disease areas.

With the current tender portfolio, Cipla provides treatment to approximately 3 million patients annually, reflecting both the scale of operations and Ciplas continued contribution to the public healthcare system.

Ciplas tender participation is anchored in a mission driven focus on Antiretrovirals ("ARVs"), Respiratory, Oral Solid Dosage and Vaccines, supporting the delivery of quality, affordable therapies across high impact treatment areas. While the outcome of the current Antiretroviral tender would alter the portfolio mix in the next financial year, Cipla remains committed to advancing patient access and public health outcomes through its broader and diversified tender presence, alongside continued engagement in therapies critical to South Africas healthcare priorities.

Sub-Saharan Africa (SSA)

Ciplas Sub-Saharan Africa business delivered resilient performance in FY 2025-26. While primary sales were impacted by deliberate channel destocking across selected markets like Kenya, Uganda and Mauritius, the business recorded secondary growth of 11% YoY, reflecting healthy underlying demand and improved market offtake.

A defining highlight of the year was the continued premiumisation of the portfolio towards chronic therapies. The chronic segments contribution grew from 34% to 39% of the business, underpinned by strong momentum in Respiratory and Cardiovascular & Metabolic ("CVRM") therapies. Respiratory delivered 19% secondary growth, further consolidating Ciplas market leadership with over 10% market share in this therapy area and CVRM recorded exceptional secondary growth of 38%, driven by both core brand performance and new product launches, reflecting the early success of Ciplas strategic pivot into cardiometabolic disease management across Sub-Saharan Africa. (Source : IQVIA MAT March 2026)

Kenya remained an important market within the region, with Cipla retaining market leadership in Gastroenterology and establishing a growing commercial presence in Cardiovascular and Diabetes.

North West Africa ("NWA")

In FY 2025-26, the Companys operations delivered steady performance. This performance was delivered despite operational headwinds during the year, primarily arising from supply shortages linked to a third-party partner in Morocco.

During the year, Cipla strengthened the leadership position across Morocco and Algeria supported by strong secondary market performance in its core therapy areas. In Morocco, Cipla gained significant traction in core therapy areas of Respiratory (Market share is 30.4% and growth is 18.2%) and Central Nervous System (Market share is 18.4% and growth is 18.3%), supported by strong portfolio execution and improved market access. (Source : IQVIA MAT March 2026)

A key strategic milestone was the successful localisation of Metered Dose Inhaler manufacturing in Morocco, with the production of Salmeterol + Fluticasone at the Rabat inhalation facility. This initiative strengthens supply resilience, supports local healthcare priorities.

FY 2025-26 also marked Ciplas entry into Oncology in North Africa, with the introduction of Lenalidomide for Multiple Myeloma and Fulvestrant for breast cancer, expanding access to critical oncology therapies for patients in the region.

Beyond core markets, the Business Unit expanded its regional footprint by integrating Ghana into the North Africa cluster, unlocking growth opportunities in institutional and tender-driven markets. Cipla also strengthened the B2B partnerships across French West Africa and Egypt, enabling broader access to Ciplas portfolio across underserved markets.

Cipla Global Access ("CGA")

Since 2001, Cipla has been at the forefront of expanding global access to affordable, life-saving HIV/AIDS and Malaria therapies through strong partnerships with leading international funding agencies. Ciplas breakthrough in 1st-line Antiretroviral, TLD (Tenofovir/Lamivudine/Dolutegravir 300/300/50 mg), remains one of the most widely used treatments worldwide and has transformed care for millions. In FY 2025-26, Cipla Global Access reached over 1.5 million patients across 72 countries, underscoring Ciplas deep commitment to equitable healthcare. Building on this legacy, the CGA business is advancing a robust pipeline that includes Cabotegravir LAI for HIV PrEP, Cabotegravir + Rilpivirine LAI for HIV treatment, and Tenofovir Alafenamide-based tablets and dual regimens. Through innovation, quality, and strong global alliances, Cipla continues to strengthen health systems and improve patient outcomes across low and middle-income countries.

Emerging Markets and Europe ("EMEU")

Ciplas EMEU continued the growth momentum in FY 2025-26 after the turnaround last year and delivered USD 405 million revenue, growing 4% over FY 2024-25, despite ongoing geopolitical volatility.

EMEU continued to hold leadership position in Sri Lanka and Nepal, maintaining respectively third rank and ninth rank in the market. In Germany, Respiratory portfolio further strengthened its presence, with Beclomethasone +Formoterol emerging as the second largest brand in its category.

Portfolio Update:

The focus is to build a future pipeline of differentiated products, both in-house and through licensing route, to drive growth in our deep markets. In FY 2025-26, EMEU filed 200+ products across markets.

Key Launches during FY 2025-26 across Emerging Markets and Europe

Molecules	Therapy	Geography
Liraglutide	Anti-diabetes	Australia
Palbociclib	Antineoplastic	Mexico, Brazil and Thailand
Azelastine + FP spray	Respiratory	France
Eltrombopag	Hematinic agent	Germany and Spain
Icatibant	Angioedema	Brazil
Beclomethasone + Formoterol MDI	Respiratory	Europe

Active Pharmaceutical Ingredients ("API")

With its 60+ years of experience in manufacturing APIs, Cipla has produced 200+ APIs of various complexities. The APIs are supplied to 50+ countries across the globe helping local pharmaceutical companies reach out to their patients. The Company continues to be a preferred partner to many large generic pharmaceutical companies globally due to its focus on niche molecules and manufacturing scale. A strong dedicated team of over 300+ scientists aid the Company to differentiate itself with the capability to handle a wide range of chemistries and complex molecules.

Cipla covers a wide array of therapies with 2824 Drug Master Files ("DMFs") submissions till date. Within FY 2025-26, Cipla made 359 DMF filings in various countries. The Company has a robust portfolio of over 170 APIs across regulated markets in various stages of development.

W Manufacturing Capability

Cipla has four cGMP compliant sites, approved by the major international regulatory agencies including the US FDA, EDQM (Europe), PMDA (Japan) WHO, TGA (Australia), and KFDA (Korea). These sites include dedicated facilities for Oncology, hormones, and corticosteroid APIs. Additionally, a new unit was commissioned in FY 2025-26 under Cipla Pharmaceutical Limited for manufacturing of Respiratory API with installed capacity of 10 metric tonnes per annum. Cipla offers a total capacity for API manufacturing of 792 MT. Cipla offers high competency in handling broader range of batch sizes and expertise in particle engineering and micronisation to meet required particle sizes for Respiratory APIs.

The Company has three API R&D Centres, two pilot plants and one safety screening lab. All facilities and Ciplas plants have zero liquid discharge and waste-water treatment facilities that include Effluent Treatment Plants ("ETP") with Multi Effect Evaporators ("MEE"), Agitated Thin Film Dryer ("ATFD"), Vertical Thin Film Dryer ("VTFD") and Reverse Osmosis ("RO") facilities. Cipla has secured Zero Waste to Land Fill certification for all the manufacturing sites based in India.

Business Performance

In FY 2025-26, the API Business had multiple headwinds like geopolitical issues, global supply chain interruptions, high inflation rates and pressure on margins for commercialised molecules. Geopolitical issues majorly impacted on the prices of Key Starting Materials and Intermediates thereby increasing the API prices. However, Cipla was not only agile with regular supplies but also ensured timely supplies to support customers with their critical launches and lock-in with multiple customers.

The FY 2025-26 API business revenue stood at USD 55 million (H489 crores) of which 45% was contributed by Emerging Markets, followed by 39% from Europe and Global Key Accounts, 9% from North America and 7% from India. The key therapy segments that contributed to these were Gastrointestinal (20%), Respiratory (16%), Central Nervous System (16%), Oncology (10%) and Cardiovascular (9%). Successful deliveries of differentiated product mix, improved traction in seeding and lock-ins are the key drivers for API business. The API team in Cipla successfully supplied 80+ distinct molecules to 230+ customers.

Cipla continues to partner with leading generic companies and innovators for their new products to further expand in markets in Europe, Japan, Korea and Brazil. Strong relationships with the worlds largest generic pharmaceutical companies have helped Cipla to take necessary steps to provide better realisations to its partners. Additionally, it aims to support a higher number of seeding and lock-ins for new molecules under development that will help in achieving sustainable growth. The Company plans to enhance its API R&D and manufacturing capacities. The Company is focused on productivity and achieved cost optimisation through continuous process/yield improvements.

Human Resource Management and Industrial Relations

For details on Ciplas approach towards Human Resources, refer to Human Capital on page no. 72 of this Report.

Adherence to accounting standards

The Company continues to adhere to standard accounting policies under the Indian Accounting Standards ("Ind AS”), applicable since 1st April 2016. IND AS 116 pertaining to Leases was the sole addition under Section 133 of the Companies Act, 2013. These policies are to be read along with the relevant applicable rules and accounting principles. Changes in policies, if any, are approved by the Audit Committee.

Opportunities

Please refer page no. 42 for opportunities on material topics for the Company in the Double Materiality Assessment section.

Threats, risks and concerns

The Cipla Enterprise Risk Management ("ERM") programme covers its key risks across all its business areas. The Investment and Risk Management Committee of the Board reviews and discusses the risk updates on a quarterly basis.

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.

Please refer to page no. 48 for risk management framework and key risks including the mitigation measures.

Internal control and its adequacy

Cipla has an adequate system of internal controls commensurate with the nature of its business and the size and complexity of its operations. The Company has adopted policies and procedures covering all financial, operating and compliance functions.

These controls have been designed to provide a reasonable assurance over:

* Effectiveness and efficiency of operations,

* Prevention and detection of fraud and errors,

* Safeguarding of assets from unauthorised use or losses,

* compliance with applicable laws and regulations,

* Accuracy and completeness of the accounting records, and

* Timely preparation of reliable financial information.

The existing framework of Internal Financial Controls ("IFC") is aligned with applicable statutory requirements and is based on the globally recognised risk-based framework issued by the

Committee of Sponsoring Organizations ("CDSCO") of the Treadway Commission. The Companys internal financial controls over financial reporting are considered adequate and have been operating effectively during the year under review.

The effectiveness of these controls is monitored through a combination of management reviews, periodic control self-assessments, and independent testing carried out by the internal audit function. The Audit Committee periodically reviews the adequacy and effectiveness of the internal financial control systems to ensure that the Companys books of account are properly maintained and that transactions are recorded in accordance with applicable accounting standards, laws, and regulations.

The Company recognises the fact that any internal control framework would have some inherent limitations and hence has inculcated a process of periodic audits and reviews to ensure that such systems and controls are upgraded at regular intervals.