Concord Biotech Ltd Management Discussions

ECONOMIC OVERVIEW

Global Economic Overview

The global economy witnessed several challenges in 2025 and early 2026, like inflationary pressures, increased tariff rates, geo-political conflicts, and tightening financial conditions across major economies. These factors, along with fluctuating commodity and energy prices, impacted global trade flows and business sentiment. Despite these headwinds, select economies demonstrated resilience supported by domestic demand and policy interventions; however, the overall environment remained uncertain, requiring businesses to adopt agile strategies and maintain operational discipline.

Global economic growth is expected to remain resilient in 2026 despite persistent geopolitical tensions, trade policy uncertainties and uneven regional recovery trends. According to the International Monetary Fund (IMF), global GDP growth is projected at approximately 3.1% in 2026, supported by improving financial conditions, easing inflationary pressures and continued economic expansion across emerging markets. While advanced economies are expected to witness moderate growth, emerging market and developing economies are likely to remain the primary drivers of global economic activity. Inflation is projected to continue its downward trajectory across most major economies, although price pressures and policy uncertainties are expected to persist in select regions. Overall, the global economic outlook reflects cautious optimism, supported by resilient demand and gradual normalization of macroeconomic conditions.

Source: IMF World Economic Outlook Update, July 2025. Global growth projected at 3.1% in 2026. ( https://www.imf.org/en/publications/weo/ issues/2025/07/29/world-economic-outlook-update-july-2025 )

The conflict involving Iran and the resulting disruption in the Strait of Hormuz—a critical artery for nearly 20% of global oil and energy supplies—has introduced significant volatility into the global economy. The near-closure of this key shipping route has triggered a sharp surge in crude oil prices, with benchmarks rising above $100 per barrel, intensifying inflationary pressures and raising concerns of a broader economic slowdown.

As energy costs ripple across supply chains, major economies are expected to face varied but significant impacts: India, heavily dependent on imported crude, is particularly vulnerable to rising import bills and inflation; China, as a major energy importer and manufacturing hub, faces pressure on industrial costs and export competitiveness; while the United States, though relatively energy-independent, is likely to experience inflationary spillovers and financial market volatility.

These developments, combined with tightening financial conditions, are heightening recessionary risks globally, underscoring the fragility of an interconnected economic system in the face of geopolitical disruptions.

Indian Economic Overview

Indias economy continues to demonstrate strong resilience and remains one of the fastest-growing major economies globally, supported by robust domestic demand, infrastructure investments, and policy-led growth. According to the International Monetary Fund (IMF), Indias GDP growth is projected at approximately 7.3% in FY2025–26, with moderation expected to around 6.4% in subsequent years as cyclical factors stabilise. The countrys macroeconomic fundamentals remain stable, with declining inflation, a contained current account deficit, and a well-capitalised financial sector supporting sustained growth momentum. The Economic Survey 2025–26 further highlights Indias medium-term growth potential at around 6.8–7.2%, driven by expanding consumption, rising investment, and structural reforms. While external headwinds such as geopolitical tensions and commodity price volatility pose risks, Indias strong domestic fundamentals and policy support continue to position it as a key driver of global economic growth.

INDUSTRY STRUCTURE AND DEVELOPMENTS.

Global Pharmaceutical Market

The pharmaceutical industry is experiencing a shift towards personalized content strategies, a key trend in pharmaceuticalmarketing.Thisapproachisrevolutionizing how companies engage with their audience by tailoring communications to build stronger, more meaningful connections with patients and healthcare professionals. The global pharmaceutical industry also continues to demonstrate steady expansion, supported by rising healthcare awareness, aging populations, and increasing access to medical treatment across emerging markets. Growth is increasingly being driven by specialty therapies, particularly in areas such as oncology and chronic disease management. At the same time, the industry is undergoing a structural shift toward more targeted and personalized treatments, with innovation pipelines now heavily skewed toward biologics and advanced therapies. As the industry progresses, navigating the evolving regulatory environment is critical for effective pharma marketing. With rapid advancements in technology and marketing strategies, regulatory bodies are continuously updating their guidelines to stay current.

Adapting to these regulatory changes is essential not only for legal compliance but also for establishing trust with consumers and healthcare professionals. Pharmaceutical companies must ensure that their marketing efforts, whether digital or traditional, meet these new standards. This involves being transparent about product benefits and risks, and safeguarding patient privacy.

Incorporating regulatory considerations into marketing strategies becomes crucial and balancing innovative marketing approaches with compliance will significantly influence the success of pharmaceutical marketing in 2026 and beyond.

114 The industry is also witnessing a wave of new opportunities driven by patent expiries, technological advancements, and changing healthcare needs. Biosimilars, contract development and manufacturing, and digital health solutions are emerging as key growth areas. At the same time, breakthroughs in gene editing and personalized medicine are opening up entirely new therapeutic possibilities, positioning the sector for long-term transformation.

GLOBAL API MARKET

Active pharmaceutical ingredients (APIs) are the critical components of drugs that provide their intended therapeutic effects. While a drug may contain multiple ingredients, the API is the primary substance responsible for its efficacy. Other ingredients, known as excipients, are included to support the drugs formulation and are not intended to have a therapeutic effect.

TheAPIsegmentformsthebackboneofthepharmaceutical value chain, with growing emphasis on supply chain resilience and self-reliance. In recent years, companies have been actively diversifying sourcing strategies to reduce dependence on single geographies, creating opportunities for countries like India to strengthen their global positioning. The segment is also witnessing a gradual transition from traditional synthetic APIs toward more complex and high-value biotech-based ingredients, reflecting the broader evolution of drug development.

The formulation process involves determining the optimal combination of these ingredients to create an effective medication. Some drugs may feature multiple APIs to address a range of symptoms or achieve complex therapeutic goals.

The API manufacturing sector is expanding due to geopolitical shifts and supportive government policies. As global politics evolve and there is a growing desire to reduce dependence on China for API supplies, countries like India are emerging as preferred alternatives for API production and export. Various governments have introduced policies and financial incentives to foster API industry growth.

The API market is experiencing rapid growth driven by significant advancements in active pharmaceutical ingredient manufacturing and the expanding biopharmaceutical sector. The increasing geriatric population and the rising prevalence of chronic diseases. Additionally, the growth is attributed to the surge in demand for complex APIs like peptides, oligonucleotides, high-potency APIs, supply chain reshoring, and increasing government incentives.

India and China emerge as giants in the API manufacturing sector, collectively shaping the global API market. While India has earned its position as the pharmacy of the world through large-scale formulation exports, China continues to dominate global API manufacturing in terms of volume.

Source: Fortune Business Insights

OUTLOOK

The growing incidence of lifestyle-related conditions, along with the persistent tobacco use, increasing obesity rates, and dietary irregularities, are likely to further propel market growth. (Source: contractpharma.com). Globally, the API market is projected to reach $259.3 billion by 2026, driven by increasing demand for biologics, oncology drugs, and generics. The future of the API industry relies heavily on balancing innovation, sustainability, and resilience in the face of the changing demands of the healthcare sector.

During the pandemic, trade and supply chains were crucial for ramping up the production and distribution of medical supplies, including vaccines. However, over the past three years, global trade has become more concentrated and geopolitically aligned, relying on a smaller group of trading partners.

GLOBAL FERMENTATION BASED API MARKET

The global microbial API market is projected to expand at a compound annual growth rate (CAGR) of 6.66% by 2030. This growth is largely driven by the increasing demand for biologic medications and the advantages offered by the fermentation method in their production.

Fermentation, which involves the use of microorganisms and bacteria, plays a crucial role in generating secondary metabolites. This process transforms nitrogen and carbon into valuable microbial APIs and intermediates, significantly improving the development conditions and making the process more efficient. The markets expansion is fueled by the benefits of fermentation, including its ease of use and cost-effectiveness. These advantages enhance the overall market growth by facilitating the development of biological drugs and optimizing production processes.

The market is categorized into generic APIs and branded APIs. The branded API segment led the market share and this dominance is attributed to extensive R&D efforts aimed at developing cost-effective and innovative products, prompting companies to introduce new drugs. The increasing therapeutic use of advanced ingredients, including high-potency compounds and peptides, is expected to significantly drive the growth of branded APIs.

Additionally, the rapid expansion of biotech and pharmaceutical companies worldwide will further boost the demand for branded APIs during the forecast period.

However, with several key drugs approaching patent expiry and consolidation within the pharmaceutical industry, the demand for branded APIs has seen a gradual decline. As a result, the generic API segment is anticipated to experience substantial growth. This growth is driven by the expiration of branded drug patents, unmet clinical needs in developing countries, and the increasing acceptance of over-the-counter medications. The lower cost of generic drugs is also expected to contribute to

the segments expansion. (Source: Fortune Business Insights)

INDIAN API MARKET

The increasing prevalence of chronic diseases is expected to drive a higher demand in the Indian healthcare segment for pharmaceutical treatments, fueling the growth of the active pharmaceutical ingredients (API) market during the forecast period. Key strategies to stabilize the market include the introduction of new drugs and biologics, strategic partnerships, acquisitions, and geographic expansion.

Additionally, advancements in medical technology, growing awareness initiatives by both public and private organizations, and increased government funding will support market growth. The API market is also anticipated to benefit from rising disposable incomes, a higher incidence of seizures, and shifts in lifestyle trends.

Source: Mordor Intelligence

India has developed a robust ecosystem to support pharmaceutical manufacturing, transitioning from exporting simple APIs to becoming one of the largest exporters of generic drugs globally. The countrys manufacturing costs are significantly lower—about 33% less than the U.S. and half of Europe—allowing it to produce high-quality medicines at competitive prices. Government initiatives, such as the New Drug and Clinical Trial Rules of 2019, relaxed FDI norms, and the Make in India campaign, further bolster local manufacturing. India also boasts a large, skilled workforce, capable of supporting large-scale pharmaceutical manufacturing projects.

A report from IOSR Journal of Dental and Medical Sciences states that Indias bulk drug industry is highly fragmented, with a significant presence of small, unorganized players and over 1,500 API manufacturing facilities. India produces more than 500 different APIs, supplying 57 % of the APIs on the WHOs prequalified list. Unorganized companies make up nearly half of the bulk drug sector. As of the end of FY17, the top 14–16 API companies held only about 16–17% of the market share.

OUTLOOK

India has established itself as a key global player in both pharmaceuticals and biotechnology, supported by a strong manufacturing base, cost competitiveness, and a well-developed generics ecosystem. The country plays a critical role in ensuring affordable access to medicines worldwide, while also expanding its footprint in vaccines, biosimilars, and specialty products. Policy support and growing investments in innovation are further strengthening Indias position as a reliable and scalable healthcare partner.

India is well poised for growth as its pharmaceutical companies are expanding in scale, diversifying their focus across various therapeutic classes, and accelerating their presence in both regulated and semi-regulated markets. This strategic expansion allows them to seize new opportunities and solidify their position in the global pharmaceutical landscape.

The Indian pharmaceutical industry ranks third globally in terms of volume and thirteenth in value. Indian companies are leaders in both APIs and finished formulations, with the countrys API industry being the third largest worldwide. Notably, India supplies about 57% of the APIs on the WHOs pre-qualified list.

THE RISE OF INDIAN CDMO BUSINESS

One of the most significant beneficiaries of these macro-level changes is the Indian Contract Development and Manufacturing Organization (CDMO) business. As global companies seek reliable and cost-eective alternatives to China, the demand for Indian CDMO services is expected to surge. Indian CDMOs oer a comprehensive range of services, from drug development to commercial manufacturing, making them attractive partners for international pharmaceutical companies.

The growth of the Indian CDMO sector is supported by the countrys strong regulatory framework, skilled workforce, and advanced manufacturing infrastructure. These factors, combined with the strategic shifts in global supply chains, position Indian CDMOs to capture a larger share of the global market. This expansion not only drives economic growth but also enhances Indias reputation as a hub for pharmaceutical innovation and excellence.

GLOBAL BIOPHARMACEUTICAL INDUSTRY

The global biopharmaceutical industry is undergoing a structural transformation, with innovation increasingly anchored in advanced therapies such as biologics, biosimilars, and gene-based treatments. Scientific progress in areas like immunotherapy, genomics, and targeted drug delivery is reshaping treatment paradigms, particularly for chronic and complex diseases. The momentum built during the COVID-19 has further accelerated the adoption of novel platforms, including mRNA technologies, while also strengthening global capabilities in vaccine development and rapid-response manufacturing.

The global biopharmaceutical market is projected to grow from approximately USD 455 billion in 2024 to over USD 800 billion by 2034 , registering a CAGR of 6.0%–6.5%. Biologics currently account for nearly 40% of the global pharmaceutical pipeline . Biosimilars, cell and gene therapies, and precision medicine continue to be among the fastest-growing segments within the industry.

In parallel, large pharmaceutical companies are deepening collaborations with biotechnology firms to access innovation, optimize research productivity, and diversify pipelines. The outsourcing ecosystem is also expanding, with contract development and manufacturing organizations playing a pivotal role in enabling speed, flexibility, and cost efficiency across the value chain.

Source: Global biopharma market forecasts: Grand View Research, Precedence Research, Fortune Business Insights (2025)

INDIAN BIOPHARMACEUTICAL INDUSTRY

In India, the biopharmaceutical sector is emerging as a key growth driver within the broader healthcare landscape, supported by strong scientific talent, competitive manufacturing capabilities, and an established presence in vaccines and biosimilars. The country is increasingly positioning itself as a reliable partner in global supply chains, particularly as companies pursue diversification strategies beyond traditional sourcing hubs.

Policy support, infrastructure development, and rising private investment are further catalyzing growth, with a visible shift toward higher-value innovation-led segments. Indian companies are also expanding their footprint in regulated markets, while strengthening capabilities in complex biologics and specialty products. Collectively, these trends position India to play a more strategic role in the evolving global biopharmaceutical ecosystem, balancing affordability with innovation and scale.

Source: India biotechnology industry: Department of Biotechnology (DBT), BIRAC and IBEF industry reports (2025)

Key Area	Global Landscape	India Landscape
R&D Focus	Increasing allocation toward specialty,	Transitioning from generics-led to innovation-
	precision, and targeted therapies	driven research models
Outsourcing	Growing reliance on CDMOs (Contract	Emerging as a preferred global outsourcing
Opportunity	Development and Manufacturing	hub under the China+1 strategy
	Organization) for efficiency, speed, and
	flexibility
Vaccines &	Continued demand for advanced vaccines	Strong global positioning in vaccines, with
Biologics	and biologics across therapeutic areas	rising presence in complex biologics
Advanced	Rapid progress in gene therapy, cell therapy,	Early-stage participation with increasing
Therapies	and mRNA (messenger ribonucleic acid)	strategic and policy support
	platforms

India- ahead on the competition curve in the API market

Indias API industry ranks third globally and contributes around 57% of APIs to the WHOs prequalified list. The biotechnology industrys growth has been propelled by adopting global standards and establishing large-scale manufacturing facilities in India. With approximately 665 US FDA-approved plants, India leads globally, holding 44% of the worlds abbreviated new drug applications (ANDAs). The Indian government has introduced several schemes to boost the API (bulk drug) sector, including the formation of clusters and the Production Linked Incentive (PLI) program. The PLI program supports the Make in India initiative by aiding domestic manufacturers.

The Indian pharma sector is one of the largest providers of generic drugs globally which is known for its affordable vaccines and generic medictaions.

Source: https://assets.kpmg.com/content/dam/kpmgsites/ in/pdf/2025/09/the-indian-pharma-sector-q4fy25.pdf. coredownload.inline.pdf

Over recent decades, the Indian pharmaceutical industry has experienced remarkable expansion. The country now supplies 20% of the worlds generic medicines by volume and plays a crucial role in meeting over 60% of the global demand for vaccines and Antiretroviral (ARV) drugs. The Asia Pacific market is expected to surpass the mature markets of North America and Europe, achieving the highest compound annual growth rate (CAGR) throughout the forecast period. The surge in contract manufacturing organizations and pharmaceutical companies in China and India is likely to drive this growth.

India has become a prime location for outsourcing active ingredient production due to their lower labor costs and abundant raw materials. Moreover, favorable regulatory policies in the Asia Pacific region are attracting manufacturers to expand their production capabilities, further boosting market growth.

The pharmaceutical industry operates within a highly regulated framework, with oversight from bodies such as the US Food and Drug Administration, the European 1 Medicines Agency, and Indias Central Drugs Standard Control Organisation. Compliance with quality standards, data integrity, and manufacturing practices remains critical, as regulatory scrutiny continues to intensify globally. Companies are also adapting to evolving expectations around transparency, traceability, and sustainability.

Innovation at the core

Research and development remain central to the long- CORPORATE OVERVIEW term sustainability of the pharmaceutical and biotech industries. Companies are increasingly investing in advanced technologies, including artificial intelligence and data-driven drug discovery, to improve success rates and reduce development timelines. The innovation landscape is becoming more collaborative, with 2 partnerships between large pharmaceutical firms, biotech companies, and academic institutions playing a vital role in accelerating breakthroughs.

At Concord, innovation is at the heart of our ethos. We are committed to providing customized, innovative, and complex generic products to our clients. Our R&D team collaborates closely with customers or potential customers to deliver tailored, cost-effective solutions that meet specific requirements. Our R&D laboratories, MANAGEMENT REPORTS encompassing formulation development, analytical development, and chemical research units empower us in developing efficient and cost-effective processes. Additionally, our dedicated R&D units for both APIs and formulations located in Dholka and Valthera are approved by DSIR, India. 3 Concords world-class manufacturing infrastructure is built in alignment with the highest global quality benchmarks, reinforcing our commitment to excellence and compliance. Our facilities have been inspected and approved by leading regulatory authorities, including the USFDA, EU GMP, PMDA (Japan), MFDS (Korea), ANVISA, and WHO GMP underscoring our credibility across highly regulated markets. This strong regulatory foundation supports our extensive global presence, enabling us to FINANCIAL STATEMENTS serve customers in over 70 countries worldwide.

Opportunities and Threats.

India is a leading supplier of generics, driving the demand for APIs both domestically and globally. India exports around 50% of its APIs to developed markets, including the US and Europe. The market for Active Pharmaceutical Ingredients (API) in India includes the sourcing of raw materials and production, research and development, and supply of APIs to pharmaceutical companies globally. Growth in green chemistry, continuous manufacturing, and chronic therapy demand coupled with rising demand in oncology, cardiology, and specialty APIs highlight a shift toward outsourcing and specialty manufacturing. The API manufacturing landscape is undergoing a gradual but decisive shift toward innovation-led and sustainability-driven practices. Biopharmaceutical advancements are emerging as the most significant driver of change, while environmental considerations are becoming integral to operational strategy. At the same time, adoption of continuous and green manufacturing technologies is enabling companies to enhance efficiency, ensure regulatory compliance, and align with evolving global expectations.

Biopharmaceutical Innovations : are emerging as the primary driver of transformation in the API landscape, with increasing demand for biologics & gene therapies, reshaping development pipelines. This shift is encouraging manufacturers to move toward high-value, complex APIs and invest in advanced biotechnology capabilities.

Sustainability and Environmental Focus : has become integral to operational strategy, driven by rising global emphasis on environmentally responsible manufacturing. Companies are prioritizing carbon footprint reduction, adoption of renewable energy, and improved waste management practices, while also responding to increasingly stringent regulatory expectations.

Continuous Manufacturing Technologies : are gaining prominence as a means to enhance efficiency and consistency in API production. The transition from batch to continuous processes enables better quality control, reduced production timelines, and cost optimization, supporting scalable and competitive manufacturing operations.

Green Manufacturing Techniques : are playing a critical role in minimizing environmental impact through the use of eco-friendly solvents, energy-efficient systems, and waste reduction approaches. These practices not only support sustainability goals but also strengthen long-term regulatory compliance and operational resilience.

The key threats in the sector include:

Sustained Pricing Pressure in Generics and APIs

The generics business, particularly in regulated markets, continues to face intense pricing erosion driven by consolidation among distributors, aggressive tendering mechanisms, and heightened competition. This has a direct impact on margins, especially for commoditized molecules, and necessitates continuous portfolio optimization and cost rationalization.

Heightened Regulatory Scrutiny and Compliance Risks

The industry operates under stringent oversight from regulators such as the US Food and Drug Administration and the European Medicines Agency. Increasing focus on data integrity, quality systems, and manufacturing practices has led to more frequent and rigorous inspections. Any adverse observations, including warning letters or import alerts, can disrupt operations, delay product approvals, and impact reputation and revenue streams.

Supply Chain Vulnerabilities and Input Cost Volatility

Despite ongoing diversification efforts, dependence on select geographies for key starting materials and intermediates persists. Geopolitical tensions, trade restrictions, or logistical disruptions can impact availability and pricing of critical inputs. Additionally, volatility in energy and raw material costs can exert pressure on operating margins, particularly for API manufacturers.

Intensifying Competition and Market Saturation

The API and generics segments are witnessing increasing competition from both established global players and emerging manufacturers. In several therapeutic categories, market saturation has led to price-based competition, reducing differentiation. This is further compounded by faster product approvals in certain markets, leading to earlier-than-expected entry of competitors.

Rising Complexity, R&D Investments, and Execution Risks

The shift toward complex generics, biosimilars, and specialty products requires significantly higher investments in research, technology, and regulatory capabilities. Development timelines are longer and outcomes remain uncertain, increasing the risk of delayed commercialization or failure to achieve expected returns. In the biopharmaceutical space, technological complexity and evolving regulatory pathways add further execution challenges.

COMPANY OVERVIEW

Concord Biotech Limited (also referred to as Concord or The Company) is a pioneering R&D-driven biopharma company specializing in the manufacturing of Active Pharmaceutical Ingredients (API) through both fermentation and semi-synthetic processes. The Companys wide array of finished formulations and APIs span across therapeutic areas like immunosuppressants oncology, anti-infectives nephrology, and critical care areas like immunosuppressant, anti-bacterial, anti-fungal, oncology, and nephrology.

The Company has a significant global footprint, with its products being distributed in over 70 countries. The Company has established efficient distribution networks in key markets, including the USA, Europe, Japan, Latin America, Africa, and Asia. Concord also maintains a robust presence in the Indian market, underscoring its domestic leadership.

FINANCIAL REVIEW

Despite a challenging operating environment, the Company reported standalone revenue of 1,055.07crore in FY26, while continuing to invest in new growth platforms, product expansion and global market development.

Particulars	FY26	FY25	% Change
Revenue from Operations ( Cr)	1,055.07	1,200.09	(12.1%)
EBITDA / Operating Profit ( Cr)	373.26	506.33	(26.3%)
EBITDA Margin (%)	35.4%	42.2%	(680 bps)
Profit Before Tax ( Cr)	351.43	495.88	(29.1%)
Profit After Tax ( Cr)	263.27	372.96	(29.4%)
Net Profit Margin (%)	25.0%	31.0%	(600 bps)
Debtors Turnover Ratio (Times)	2.13	2.71	(21.29%)
Inventory Turnover Ratio (Times)	0.87	1.37	(35.86%)
Interest Coverage Ratio (Times)	131.27	60.03	118.64%
Current Ratio (Times)	7.45	6.17	20.72%
Debt Equity Ratio (Times)	Nil	Nil	Nil
Operating Profit Margin (%)	35.4%	42.2%	(26.3%)
Net Profit Margin (%)	25.0%	31.0%	(600bps)
Return on Net Worth (%)	14.0%	22.00%	(800 bps)

SEGMENT-WISE PERFORMANCE

Active Pharmaceutical Ingredients (APIs)

API business remained the principal revenue contributor during FY26. The segment demonstrated resilience despite regulatory delays and customer inventory corrections witnessed during the first half of the year. Immunosuppressant APIs continued to anchor the portfolio, while increased traction in anti-infective and oncology products supported business stability. Active Pharmaceutical Ingredients (API) segment, contributed 82,877 lakhs, accounting for 78.6% of total revenue of the Company.

Formulations

The formulations business experienced a relatively softer year amid delays in certain international markets and pricing pressures. However, the Company continued to strengthen its formulations platform through product registrations and market expansion initiatives. The injectable facility achieved WHO-GMP certification during the year, creating a foundation for future growth across regulated and emerging markets. The Formulations segment contributed 22,630 lakhs, representing the remaining 21.4% of total revenue of the Company.

PRODUCT-WISE PERFORMANCE

Immunosuppressants

Immunosuppressants continued to be the cornerstone of Concord Biotechs portfolio, supported by strong global demand arising from organ transplantation therapies and autoimmune disease management. The Company maintained its leadership position in several fermentation-based immunosuppressant APIs and continued to benefit from long standing customer relationships across regulated markets.

Oncology

The oncology portfolio remained a strategic growth area, supported by increasing demand for complex therapies and specialty pharmaceutical products. The Company continued to expand its presence in oncology APIs and formulations, leveraging its fermentation and process chemistry expertise.

Anti-infectives

The anti-infectives segment delivered stable performance, benefiting from a diversified customer base and sustained demand across emerging markets. The segment continued to contribute meaningfully to the Companys revenue mix despite pricing pressure in select geographies.

120 Injectables

FY26 marked a significant milestone for the injectables business with the receipt of WHO-GMP certification. The facility is expected to support future commercialisation across domestic and international markets and represents an important long-term growth driver for the Company.

The financial statements of the Company have been prepared in accordance with the applicable Indian Accounting Standards (Ind AS). The Company has complied with all the relevant Accounting Standards in the preparation of the financial statements, and no departures or alternative accounting treatments from those prescribed under the applicable standards have been followed.

RISKS AND CONCERNS

Despite strong growth prospects, the industry faces several structural challenges, including pricing pressures, particularly in generics, and continued reliance on complex global supply chains. Regulatory risks and compliance requirements can significantly impact operations, while high research failure rates remain an inherent challenge in drug development. Navigating these uncertainties requires a balanced approach focused on innovation, operational efficiency, and strategic diversification.

Type of Risk	Risk Description	Risk Mitigation
Industry Risk	Any negative impact on the industry can impact	The Company has its presence across various
	the prospects of the Company.	geographies, it periodically evaluates various
		developments across the countries and identifies any
		risks and implements immediate action.
Operational	Any manufacturing or quality control issues may	The Company\u2019s facilities are all as per GMP standards.
Risk	damage the Company\u2019s reputation, adversely	It also houses a R&D team at its facility which performs
	affecting business, results of operations, and	rigorous checks to ensure the quality and efficacy of
	financial conditions.	the products as per customer standards.
Competition	Competition from domestic and international	The Company is focused on building economies of
Risk	players.	scale, two decades into the business it has it has
		strengthened the long-term relation with marquee
		customers.
		The Company has undertaken R&D initiatives which
		focuses on reducing costs, improving efficiency and
		turnaround time.
Suppliers Risk	Profitability and margins are directly impacted	The Company has built relations, over the years, with
	by the volatility in prices. In case of a significant	alternative suppliers, to safeguard the raw material
	change in the raw material\u2019s prices and	supply chain.
	operational cost among others, profitability
	will have an impact.
Financial Risk	The revenues are spread across	The Company has robust hedging
	various currencies and any drastic fluctuations	strategies and frameworks in place to safeguard itself
	may affect the Company\u2019s overall revenue.	against currency fluctuations.

Concords employees contribute significantly to our business operations. As of March 31, 2026, we had 1624 permanent employees. In addition, we have entered into arrangements with third party personnel companies for the supply of contract labour. The number of contract labourers varies from time to time based on the nature and extent of work contracted to independent contractors.

The Company trains its employees on a regular basis to increase the level of operational excellence, improve productivity and maintain compliance standards on quality and safety. The Company also conducts training workshops for our employees to develop a variety of skill sets and organize modules at regular intervals to promote teamwork and personal growth of employees.

INTERNAL CONTROL SYSTEMS AND ITS ADEQUACY

The Company has adequate internal control systems commensurate with its size and nature of business. The Company firmly believes that change is the only permanent thing, and in line with that spirit, the Company regularly updates its systems for incremental improvements. The Audit Committee of the Board periodically reviews these systems, which record transactions, assets, and report on developments timely. Internal audit is being carried out by an independent firm of Chartered Accountants on a quarterly basis. The Audit Committee also regularly reviews the periodic reports of the Internal Auditors. Issues raised by Internal Auditors and Statutory Auditors are discussed and addressed by the Audit Committee

During the year, the Company conducted various training programmes in all units regarding the use and value of personal protective equipment (PPE), safety awareness, and safety at work place.

CAUTIONARY STATEMENT

The Management Discussion and Analysis contains forward-looking statements, identified by words like plans, expects, will, anticipates, believes, intends, projects, estimates and so on within the meaning of applicable securities laws and regulations concerning the companys future business prospects and business profitability. All statements that address expectations or projections about the future, the Companys strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. All these prospects are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-looking statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, ability to manage growth, competition (both domestic and international), economic growth in India and the target countries worldwide, ability to attract and retain highly skilled professionals, time and cost overruns on contracts, ability to manage international operations, Government policies and actions with respect to investments, fiscal deficits, regulations, interest and other fiscal costs generally prevailing in the economy etc. Past performance may not be indicative of future performance. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future nor shall the Company update any forward-looking statements made from time to time by or on its behalf.