Curis Lifesciences Ltd Management Discussions

You should read the following discussion of our financial position and results of operations together with our Restated Financial Information, including the schedule, notes and significant accounting policies thereto, included in the chapter titled "Restated Financial Statements" beginning on page 236 of this Red Herring Prospectus. You should also read the chapter entitled "Risk Factors" beginning on page 25 and "Forward Looking Statements" beginning on page 15, which discusses a number of factors, risks and contingencies that could affect our financial condition and results of operations.

The following discussion and analysis of our financial position and results of operations is based on our Restated Financial Information for the period ended July 31,2025 and for the financial years ended March 31, 2025, 2024 and 2023 including the related notes and reports, included in this Red Herring Prospectus prepared in accordance with requirements of the Companies Act and restated in accordance with the SEBI Regulations, which differ in certain material respects from IFRS,

U.S. GAAP and GAAP in other countries. Our Financial Statements, as restated have been derived from our audited financial statements for the respective period and years. Accordingly, the degree to which our Restated Financial Information will provide meaningful information to a prospective investor in countries other than India is entirely dependent on the readers level of familiarity with Indian GAAP, Companies Act, SEBI Regulations and other relevant accounting practices in India.

This discussion contains forward-looking statements and reflects our current views with respect to future events and financial performance. Actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors such as those described under chapter titled "Risk Factors" and "Forward Looking Statements" on pages 25 and 15, respectively, and elsewhere in this Red Herring Prospectus. Our Financial Year ends on March 31 of each year. Accordingly, all references to a particular Financial Year are to the 12 months ended March 31 of that year.

BUSINESS OVERVIEW

Our Company was originally formed and registered as a Partnership Firm under the Partnership Act, 1932 ("Partnership Act") in the name and style of "M/s Loreto Pharmaceutacals", pursuant to a deed of partnership dated June 2, 2010. Thereafter " M/s Loreto Pharmaceuticals" was converted from Partnership Firm to a Private Limited Company under the Companies Act, 2013 in the name of "Curis Lifesciences Private Limited" and received a certificate of incorporation dated March 23, 2016 issued by Assistant Registrar of Companies, Gujarat. Subsequently, our Company was converted into a public limited company and the name of our Company was changed from "Curis Lifesciences Private Limited" to "Curis Lifesciences Limited" vide Special Resolution dated May 6, 2024, the status of the Company was changed to public limited and the fresh certificate of incorporation consequent to conversion, bearing Corporate Identification Number U24230GJ2016PLC086559, was issued on August 9, 2024 by the Assistant Registrar of Companies/ Deputy Registrar of Companies/ Registrar of Companies, Central Processing Centre. From year 2010 to 2016, our partnership firm was engaged in the marketing and trading of various pharmaceutical products. As a partnership firm, our product portfolio included tablets, capsules, oral liquids, creams, ointments, injections, lotions, oral powders and other nutraceuticals products. We procured finished goods from manufacturers and distributed them to various wholesalers and other clients throught the country.

OUR BUSINESS MODEL

Curis Lifesciences is the pharma manufacturer, specializing in manufacturing of a wide range of pharmaceutical products such as Tablets, Capsules, External Preparations, Oral Liquid, Sterile Ophthalmic Ointments. We are in business of manufacturing of pharmaceutical products. Following is our business model.

Loan License manufacturing:

Under this vertical, our company carry outs manufacturing under Loan License arrangement, where all raw materials and excipients are procured and delivered by the client. Further the client provides us with necessary supporting documents and formulations. On instructions of the client our company undertakes manufacturing activities under observation of a chemist, representing the customer. In summary, our company would perform manufacturing activities as a job work on behalf of the loan licensing company for the product. Our customers for loan license manufacturing activities are domestic.

Contract Manufacturing:

Under this vertical, our company carry outs manufacturing under Contract Manufacturing arrangement, where our Company would be responsible for procuring and handling all ingredients, raw materials, and packaging materials. Further, all necessary supporting documents and formulations required under manufacturing process would be procured / provided by our company. However, the client, is responsible for providing the brand name and product composition. Moreover, all marketing and distribution responsibilities rests with the client. Our customers for contract manufacturing activities can be further bifurcated under two major categories, as follows:

Merchant Exporters:

Merchant Export of pharmaceutical products refer to the practice where an exporter (the merchant exporter) purchases the finished product from local manufacturer within the country and then sells and ships those products to the buyers in other countries. Our Company, being local manufacturer of the pharma products, sells the products to merchant exporter who in turn sells those products to the buyers in other countries. The Merchant Exporter, instructs our Company to manufacture products, registered by merchant exporter in a foreign territory. The products are manufactured on contract manufacturing and sold to domestic merchant exporter but the products are sold by the merchant exporters to foreign country. As on the date of this Red Herring Prospectus, products manufactured by us have been sold by Merchant Exporters in following countries Rwanda, Myanmar, Kenya, Uzbekistan, Malawi, United Kingdom, Venezuela, Nigeria, Sierra Leone, Tazakistan, Peru, Mali, Congo, Afghanistan, Honduras, Cambodia, Panama, Guatemala, Cuba, Guinea, Greece, Bulgaria, Turkmenistan, Angola, Barbados, Bolivia, Cameroon, Democratic Republic of the Congo (DRC), Giorgia, Iraq, Kyrgyzstan, Mozambique, Ivory Coast, Philippines, Sri Lanka, Swaziland, Turkey, Vietnam.

Domestic Suppliers

Domestic Supply of pharmaceutical products refer to the practice where a domestic supplier purchases the finished product from contract manufacturer within the country and then sells those products for consumption within the country. Our Company, on instructions of domestic suppliers, manufacture products. The products are manufactured on contract manufacturing and sold to domestic suppliers and the products are further sold within the country.

Direct Export/Own Brand Manufacturing:

Under this vertical, our company manufactures products registered by itself in foreign country and sells the said products in foreign country through its distribution network. All ingredients, including raw materials and packaging materials, are purchased and handled by our company. Additionally, we are responsible for all marketing and distribution activities. The brand name and product composition is owned by us only. Currently, we are engaged in direct export under our own brands in two countries in the Republic of Yemen and Kenya.

In terms of customer involved, our Business can be bifurcated in following 2 catagories:

Product to Product Basis ?€“

In this arrangement, the customer owns the product brand name. We, as the manufacturer, would manufactur and deliver the products, on cutomerss instructions, under the customers brand name. However, all brand-related marketing, distribution, and overall responsibility lies with the customer. For ease of understanding, this refers to contract manufacturing arrangement where the manufacturer assumes responsibility for formulatins, product quality, regulatory documents, and procurement of raw materials, while the customer manages sales, distribution, and brand responsibilities.

Principle to Principle Basis ?€“

This refers to a scenario where one principle owns the manufacturing unit and the other owns formulations, the brand name, sales, and distribution rights. For ease of understanding, this refers to loan lisence manufacturing arrangement where the manufacturer performs manufacturing activity on instructions of the customer, while responsibility towards procurement of raw materials, sales, distribution, and marketing of brand with the customer. In this case, the manufacturing activities are performed for the brand-owning principle on job work basis.

As on the date of this Red Herring Prospectus, our manufacturing facility is installed with capacity to manufacture 138 crore tablets / year, 15.75 crore capsules / year, 1080 Kilolitre Oral Liquid/ year, 270 Tons external preparation / year and

45 Tons sterile ophthalmic ointment / year. In-order-to capture growing demand for pharmaceutical products in international market and to create a more responsive and cost-effective supply chain, we started our direct export/own brand manufacturing operations in year 2018-2019. Under vertical of direct exports, we export products manufactured by us under our brand name, directly to offshore customers through multiple distributors. Our business is majorly on principle to principle and product to product basis with different marketers. As at July 31, 2025, we have catered to more than 100 customers towards loan license and/or contract manufacturing activities. Further we have catered to 2 customers towards direct export/own brand marketing which majorly operates in Republic of Yemen and Kenya. Further, in last three financial yeards and stub period ended July 31, 2025, contract manufacturing and/or loan lisence activities contributes majority of our revenue from operations where as direct export/own brand marketing contributes less than 1% of revenue from operations.

No. of customers under loan license, contract manufacturing and direct export/own brand marketing for the period ended July 31, 2025 and financial year ended March 31, 2025, March 31, 2024 and March 31, 2023 are as under:

Nature of Business	No. of Customers as on July 31, 2025	No. of Customers as on March 31, 2025	No. of Customers as on March 31, 2024	No. of Customers as on March 31, 2023
Loan License	4	3	5	5
Contract Manufacturing for Merchant Exports	15	32	29	23
Contract Manufacturing for Domestic Suppliers	42	21	13	16
Direct Export/Own Brand Manufacturing	-	2	1	2
Total	61	58	48	46

Note: Customers falling under multiple categories have been counted once for only one category.

Our promoters have a vast experience in the pharmaceutical manufacturing industry. Driven by the passion for building an integrated pharmaceutical company, backed by their experience, our Promoters have been the pillars of our Companys growth and have built a strong value system for our Company. With their enriching experience and progressive thinking, we aim to continue to grow in the pharmaceutical industry.

Our past and present clientele includes renowned pharma marketers and manufactures namely Arova Pharma, Express Pharmaceuticals Private Limited, Angel Biogenics Private Limited, Centurion Healthcare Private Limited, Costcon Healthcare LLP, J B Chemicals and Pharmaceuticals Limited, Venus international, Makers Laboratories Ltd and Troikaa Pharmaceuticals Limited etc.

Our pharmaceutical manufacturing facility is situated at PF-23, GIDC Sanand - II, Industrial Estate, Ahmedabad, Sanand, Gujarat, India, 382110, which offers easy and convenient accessibility. Our infrastructure consists of comprehensive production unit, quality control department, quality assurance microbiological laboratory, raw material and finished product storage. Our Company got selling approvals for our products in WHO-GMP Certificate (World Health Organisation ?€“ Good Manufacturing Practices), PPB board Kenya (Pharmacy And Poison Board), MOH of Yemen (Ministry of Health), FDA Philippines (Food and Drug Administration), NAFDAC Nigeria (National Agency For Food

and Drug Administration and Control Office of The Director) accredited.

For more details kindly refer our chapter titled "Business Overview" begins from page no. 133 of this Red Herring Prospectus.

Key Performance

(?‚? In Lakhs except Percentage and Ratio)

Particulars	For the year ended
	July 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Revenue from operations (1)	1,950.39	4,913.24	3,555.57	3,544.88
Revenue from operations \u2013 domestic (as % of total revenue from operation) (2)	100.00%	99.97%	99.44%	99.00%
Revenue from operations \u2013 International (as % of total revenue from operation) (3)	-	0.03%	0.56%	1.00%
EBITDA (4)	423.56	953.73	838.76	327.59
EBITDA (%) Margin (5)	21.72%	19.41%	23.59%	9.24%
PAT (6)	287.16	610.51	486.70	187.53
PAT Margin (7)	14.72%	12.43%	13.69%	5.29%
ROE (%) (8)	16.26%	55.25%	141.51%	2752.56%
ROCE (%) (9)	11.65%	27.83%	33.57%	14.83%
Current Ratio (10)	1.57	1.78	1.21	0.94
Debt to Equity Ratio (11)	0.80	0.96	2.91	16.10
Inventory Turnover Ratio (12)	0.22	2.32	2.85	4.67
Debt Service Coverage Ratio (13)	14.00	5.68	7.28	2.36
(1) Revenue from operation means revenue from sales
(2) Operating revenue generated within the home country and is expressed as a percentage of the revenue from operations.
(3) Operating revenue generated from foreign markets and is expressed as a percentage of revenue from operations.
(4) EBITDA is calculated as Profit before tax + Depreciation + Interest Expenses - Other Income
(5) EBITDA Margin\u2019 is calculated as EBITDA divided by Revenue from Operations;
(6) PAT is calculated as Profit before tax \u2013 Taxes;
(7) PAT Margin is calculated as PAT for the period/year divided by revenue from operations.
(8) ROE is calculated as net profit after tax for the year / period divided by Average Shareholder Equity.
(9) Return on Capital Employed (RoCE) is calculated as EBIT divided by capital employed, which is defined as shareholders\u2019 equity plus total borrowings [Current & Non \u2013 Current]
(10) Current Ratio is calculated as Total Current Assets divided by Total Current Liabilities.
(11) Debt-Equity Ratio is calculated as Total Debt divided by Adjusted Net-Worth as per Restated Financial Statements.
(12) Inventory Turnover Ratio is calculated as Cost of Goods Sold divided by Average Inventories
(13) Debt Service Coverage Ratio is calculated as Earnings available for Debt Service divided by Interest payment plus Principal

After the date of last Audited accounts i.e., July 31, 2025, the Directors of our Company confirm that, there have not been any significant material development.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

For details in respect of Statement of Significant Accounting Policies, please refer Restated Financial Statements under chapter titled "Restated Financial Statements" beginning on page 236 of this Red Herring Prospectus.

Significant Developments after July 31, 2025 that may affect our Future Results of Operations

The Directors confirm that there have been no events or circumstances since the date of the last financial statements as disclosed in the Red Herring Prospectus which materially or adversely affect or is likely to affect the profitability of our Company, or the value of our assets, or our ability to pay liabilities within next twelve months.

FACTORS AFFECTING OUR RESULTS OF OPERATIONS

Our business is subjected to various risks and uncertainties, including those discussed in the chapter titled "Risk Factors" beginning on page 25 of this Red Herring Prospectus. Our results of operations and financial conditions are affected by numerous factors including the following:

Our dependence on limited number of customers/suppliers/brands for a significant portion of our revenues;

Any failure to comply with the financial and restrictive covenants under our financing arrangements;

Our ability to retain and hire key employees or maintain good relations with our workforce;

Impact of any reduction in sales of our services/products;

Rapid Technological advancement and inability to keep pace with the change;

Increased competition in industries/sector in which we operate;

General economic and business conditions in India and in the markets in which we operate and in the local, regional and national economies;

Changes in laws and regulations relating to the Sectors in which we operate;

Political instability or changes in the Government in India or in the government of the states where we operate could cause us significant adverse effects;

Failure to obtain any applicable approvals, licenses, registrations and permits in a timely manner;

Occurrence of natural or man-made disasters could adversely affect our results of operations and financial condition; and

Our inability to successfully diversify our product offerings may adversely affect our growth and negatively impact our profitability.

BRIEF FINANCIALS OF OUR COMPANY

(?‚? In Lakhs)

Particulars	For the Period ended 31 st July, 2025		For the year ended March 31,
			2025		2024		2023
	Amount	% of Total Income	Amount	% of Total Income	Amount	% of Total Income	Amount	% of Total Income
Revenue from operations	1,950.39	99.99	4,913.24	98.97	3,555.57	99.13	3,544.88	97.34
Other Income	0.12	0.01	51.26	1.03	31.38	0.87	96.81	2.66
Total Income	1,950.51	100.00	4,964.50	100.00	3,586.95	100.00	3641.69	100.00
EXPENDITURE
Cost Of Material Consumed	1,510.94	77.46	3,376.85	68.02	2,090.58	58.28	2,484.12	68.21
Purchase of Trading Goods	2.87	0.15	17.21	0.35	4.32	0.12	3.72	0.10
Changes In Inventories	(210.60)	(10.80)	(207.22)	(4.17)	(83.17)	(2.32)	(37.40)	(1.03)
Manufacturing Expenses	78.82	4.04	335.85	6.77	296.97	8.28	377.54	10.37
Employees Benefits Expenses	113.72	5.83	330.37	6.65	274.40	7.65	261.96	7.19
Finance Costs	28.94	1.48	110.61	2.23	84.88	2.37	132.77	3.65
Depreciation And Amortization Expense	22.77	1.17	67.47	1.36	67.93	1.89	72.61	1.99
Administrative Selling & Other Expenses	31.07	1.59	106.44	2.14	133.69	3.73	127.36	3.50

TOTAL EXPENSES	1,578.55	80.93	4,137.58	83.34	2,869.62	80.00	3,422.68	93.99
Profit Before Tax	371.97	19.07	826.91	16.66	717.33	20.00	219.02	6.01
Tax Expenses
Current Tax	(84.38)	(4.33)	(215.65)	(4.34)	(161.72)	(4.51)	-	-
Deffered Tax (Liabilities) / Assets	(0.43)	(0.02)	(0.75)	(0.02)	(68.91)	(1.92)	(31.50)	(0.86)
Profit After Tax	287.16	14.72	610.51	12.30	486.70	13.57	187.53	5.15

Review of Financial Performance for The Period Ended July 31, 2025

INCOME:

Total Revenue: During the period ended July 31, 2025, the companys total revenue was ?‚? 1,950.51Lakhs which includes

?‚? 1,950.39 Lakhs as revenue from operations and ?‚? 0.12 Lakhs as other Income.

Revenue from Operations: During the period ended July 31, 2025, the companys revenue from operations was ?‚? 1,950.39 Lakhs which includes mainly revenue from sales of good amounting to ?‚? 1931.38 Lakhs and other operating revenues of

?‚? 19.02 Lakhs.

Other Income: During the period ended July 31, 2025, the companys other income was 0.12.

EXPENSES:

Total Expenses: During the period ended July 31, 2025, the companys total expenses was ?‚? 1,578.55 Lakhs which mainly includes cost of material consumed, manufacturing expenses, employee benefit expenses and administrative, selling and other expenses.

Cost of materials consumed : During the period ended July 31, 2025, the companys cost of materials consumed was ?‚?

1,510.94 Lakhs which includes consumption of raw material and packing material.

Purchase of Trading Goods : During the period ended July 31, 2025, the purchases of stock in trade was ?‚? 2.87.

Change in Inventories : During the period ended July 31, 2025, the companys changes in inventories was ?‚? (210.6) Lakhs.

Manufacturing Expense : During the period ended July 31, 2025, the companys manufacturing expense was ?‚? 78.82 Lakhs which includes power cost, purchase of spares, packing work expenses etc.

Employee Benefits Expense : During the period ended July 31, 2025, the companys Employee Benefit Expenses was ?‚?

113.72 Lakhs which mainly includes salaries and wages which includes Directors remuneration.

Finance cost : During the period ended July 31, 2025, the companys finance cost was ?‚? 28.94 Lakhs which mainly includes interest and finance charges.

Depreciation and Amortization Expense: During the period ended July 31, 2025, the companys Depreciation and Amortization was ?‚? 22.77 Lakhs.

Administrative Selling & Other Expenses: During the period ended July 31, 2025, the companys other expenses were

?‚? 31.07 Lakhs which includes rent, legal & professional fees and sales promotion expenses etc.

PROFIT:

Profit/ (Loss) Before Tax: During the period ended July 31, 2025 the Restated Profit Before Tax is ?‚? 371.97 Lakhs. Profit/ (Loss) After Tax: During the period ended July 31, 2025, the Restated Profit After Tax is ?‚? 287.16 Lakhs. Comparison of Financial Performance of Fiscal 2025 with Fiscal 2024

The following descriptions set forth information with respect to the key components of our profit and loss statement.

INCOME:

Total Revenue: During FY 2024-25, the companys total revenue increased to ?‚? 4,964.50 Lakhs, from the amount of ?‚?

3,586.95 Lakhs recorded in FY 2023- 2024.

Revenue from Operations: During FY 2024-25, revenue from operations increased to ?‚? 4,913.24 lakhs from ?‚? 3,555.57

lakhs in FY 2023-24. This growth was primarily driven by higher sales of capsules, along with improved production and

better utilization of capacity across other sections, including tablets, external preparations, and sterile ophthalmic ointments as mentioned below:

Sr. No.	Particulars**	FY 2024- 25		FY 2023- 24
		Amount (\u20b9 in Lakhs)	%	Amount (\u20b9 in Lakhs)	%
1.	Tablet	3440.08	70.02	2671.84	75.15
2.	Capsules	227.03	4.62	85.02	2.39
3.	External Preparation (Cream/Gel/Ointment)	358.19	7.29	35.77	1.01
4.	Oral Liquid	661.73	13.47	469.41	13.20
5.	Sterile Ophthalmic Ointment	93.09	1.89	163.56	4.60
	Total (A)	4780.12	97.29	3425.60	96.34
6.	Other Operating Income (B)	133.12	2.71	129.97	3.66
Total (A+B)		4913.24	100.00	3555.57	100.00

Particulars	Installed Capacity	FY 2024- 25		FY 2023- 24
		Capacity Utilization	Capacity Utilization (%)	Capacity Utilization	Capacity Utilization (%)
Oral liquid Section (MoU \u2013 Ltr.)	10,80,000	310,632	28.76%	316,117	29.27%
External preparation Section (cream/gel/ointment) (MoU \u2013 Kg.)	2,70,000	93,738	34.72%	93,528	34.64%
Sterile ophthalmic ointment Section (MoU \u2013 Kg.)	45,000	11,155	24.79%	10,815	24.03%
Oral tablet Section (MoU \u2013 Numbers)	1,38,06,00,000	782,051,018	56.65%	775,765,477	56.19%
Capsules Section (MoU \u2013 Numbers)	15,75,00,000	32,193,905	20.44%	15,651,314	9.94%

Other Income: Other income for FY 2024-25 increased to ?‚? 51.26 lakhs from ?‚? 31.38 lakhs in FY 2023-24, primarily due to ?‚? 50.00 lakhs commission received from a client for manufacturing their registered products for export, along with a modest increase in interest and dividend income.

EXPENSES:

Total Expenses: The total expenditure for FY 2024-25 increased to ?‚? 4,137.58 lakhs as against ?‚? 2,869.62 lakhs in FY 2023-24. This increase was mainly on account of higher raw material consumption, increased manufacturing and employee expenses corresponding to the rise in production and sales volume.

Cost of materials consumed : The cost of materials consumed for FY 2024-25 increased to ?‚? 3,376.85 lakhs from ?‚? 2,090.58 lakhs in FY 2023-24. This was mainly due to higher sales orders, which required the company to purchase more raw materials and packing materials.

Change in Inventories : The change in inventories for FY 2024-25 was ?‚? (207.22) lakhs, compared to ?‚? (83.17) lakhs in FY 2023-24. With higher sales orders during the year, the company maintained higher closing stock than the previous year to meet order requirements.

Change in Manufacturing Expenses : The manufacturing expenses for FY 2024-25 increased to ?‚? 335.85 lakhs from ?‚?

296.97 lakhs in FY 2023-24. This was mainly due to changes in costs related to power and fuel, stores and spares, and loading and unloading charges.

Employee Benefits Expense : The employee benefits expense for FY 2024-25 increased to ?‚? 330.37 lakhs from ?‚? 274.41 lakhs in FY 2023-24. The increase was mainly due to remuneration and sitting fees paid to directors, along with small increments in salaries and wages.

Employee Benefits Expense:	FY 2024- 25	FY 2023- 24
Salary & Wages	252.58	241.55
Contribution to Provident & Pension/Other Funds	28.11	17.38
Gratuity Expense	8.06	0.47
Staff welfare Expenses	21.97	15.01
Director Sitting Fees	1.65	-
Directors Remuneration	18.00	-
Total	330.37	274.40

Finance Cost : The Finance cost for FY 2024-25 increased to ?‚? 110.61 lakhs from ?‚? 84.88 lakhs in FY 2023-24. The increase was mainly due to interest on income tax and higher utilization of working capital borrowings.

Depreciation and Amortization Expense: The Depreciation and Amortization Expenses for FY 2024-25 have decreased to ?‚? 67.47 Lakhs, from the amount of ?‚? 67.93 Lakhs in FY 2023-24. The marginal reduction was mainly on account of certain fixed assets being fully depreciated during the year.

Administrative Selling & Other Expenses: The Administrative Selling & Other Expenses for the FY 2024-2025 has decreased to ?‚? 106.44 Lakhs from ?‚? 133.69 Lakhs in FY 2023-24. The decrease was mainly due to cost optimization measures, rationalization of selling expenses, and better control over administrative overheads.

PROFIT:

Profit/ (Loss) Before Tax: The restated profit before tax for FY 2024-25 increased to ?‚? 826.91 lakhs as against ?‚? 717.33 lakhs in FY 2023-24, representing a growth of approximately 15.32%. The increase in profitability was primarily driven by higher sales volume, improved capacity utilization, and efficient cost management during the year.

Profit/ (Loss) After Tax: The restated profit after tax for FY 2024-25 increased significantly to ?‚? 610.51 lakhs as against

?‚? 486.70 lakhs in FY 2023-24, an increase of about 25.46%. The increase in profit after tax was mainly due to enhanced operational performance, higher revenue realization, and effective cost control measures leading to improved margins.

Comparison of Financial Performance of Fiscal 2024 with Fiscal 2023

The following descriptions set forth information with respect to the key components of our profit and loss statement.

INCOME:

Total Revenue: During FY 2023-24, the companys total revenue decreased to ?‚? 3,586.95 Lakhs, from the amount of ?‚?

3,641.69 Lakhs recorded in FY 2022- 2023.

Revenue from Operations: During FY 2023-24, the companys revenue from operations increased to ?‚? 3,555.57 Lakhs, from the amount of ?‚? 3,544.88 Lakhs recorded in FY 2022-23. This marginal increase in revenue from operation of 0.30% in FY2024 as compared to FY 2023 is beacuse during the FY 2024, we have manufactured higher number of tablets as compared to FY 2023. Value per unit of tablets is lower than that of liquid. Production of liquid section was higher in FY 2023 than in FY 2024. With registration of products and higher orders of tablets we had concentrated more on production and sales of tablets in FY 2024. This has resulted in marginal increase in revenue from operations.

Following is the comparative utilised capacity for FY 2024 as compared to FY 2023:

Sr. No.	Products Category*	Installed Capacity (For the period ended March 31, 2024 and 2023)	Utilization Percentage
			2023- 24	2022- 23
1	Oral Liquid In Ltr.	10,80,000	29.27%	51.69%
2	External Preparation (Cream/Gel/Ointment) In Kg.	2,70,000	34.64%	23.07%
3	Sterile Ophthalmic Ointment In Kg	45,000	24.03%	1.30%
4	Oral Tablet In Nos.	1,38,06,00,000	56.19%	23.81%
5	Capsules In Nos.	15,75,00,000	9.94%	12.63%

Other Income: During FY 2023-24, the companys other income reduced to ?‚? 31.38 Lakhs, from the amount of ?‚? 96.81 Lakhs recorded in FY 2022-23. The decrease in the year 2024 was due to creditors written-off and profit on sale of machinery in the FY 2023.

EXPENSES:

Total Expenses: The total expenditure for FY 2023-24 has decreased to ?‚? 2,869.62 Lakhs as against ?‚? 3,422.68 Lakhs in FY 2022-23. This decrease was mainly due to decrease in Cost of Raw Material Consumed, finance cost and manufacturing expenses.

Cost of materials consumed : The Cost of materials consumed for FY 2023-24 have decreased to ?‚? 2,090.58 Lakhs, from the amount of ?‚? 2,484.12 Lakhs in FY 2022-23. The company has increased manufacturing of tablets in FY 2023-24 as compared to FY 2022-23. This led to increase in margins and reduction in cost of materials.

Change in Inventories : The changes in inventories for FY 2023-24 was ?‚? (83.17) Lakhs, from the amount of ?‚? (37.40) Lakhs in FY 2022-23. This was mainly due to high inventory levels as the year end. In FY 2022-23, Inventory period reduced to 75 days due to lower purchase in the last quarter of FY 2022-23 (11.67%). In FY 2023-24, with increase in the number of products, the inventory period increased to 156 days.

Change in Manufacturing Expenses : The manufacturing expense for FY 2023-24 decreased to 296.97 Lakhs, from the

amount of ?‚? 377.54 Lakhs in FY 2022-23. This was mainly due to decrease in packing expense.

Employee Benefits Expense : The Employee Benefit Expenses for FY 2023-24 have increased to ?‚? 274.40 Lakhs, from the amount of ?‚? 261.96 Lakhs in FY 2022-23. This was mainly due to yearly increment given to Staff and employees.

Finance Cost : The Finance cost for FY 2023-24 have decreased to ?‚? 84.88 Lakhs, from the amount of ?‚? 132.77 Lakhs in

FY 2022-23. This was mainly due to company repaying its debt and reduction in interest cost.

Depreciation and Amortization Expense: The Depreciation and Amortization Expenses for FY 2023-24 have decreased to ?‚? 67.93 Lakhs, from the amount of ?‚? 72.61 Lakhs in FY 2022-23. This was mainly due to Furniture and Fixture block has depreciated completely at end of FY 2023.

Administrative Selling & Other Expenses: The Administrative Selling & Other Expenses for the FY 2023-2024 has increased to ?‚? 133.69 Lakhs from ?‚? 127.36 Lakhs in FY 2022-23. This increase was due to increase in conveyance expense.

PROFIT:

Profit/ (Loss) Before Tax: The Restated Profit Before Tax for FY 2023-24 has been significantly increased to ?‚? 717.33 Lakhs as against Profit Before Tax of ?‚? 219.02 Lakhs in the FY 2022-23. The significant increase in profitability this year was primarily driven by increase in sale of tablets from ?‚? 2,039.18 Lakhs in FY 2022-23 to ?‚? 2,671.84 Lakhs in FY 2023- 24 and which have higher gross margins and increase in other income due to creditors written-off.

Profit/ (Loss) After Tax: The restated Profit After Tax for FY 2023-24 has been significantly increased to ?‚? 486.70 Lakhs as against Profit after tax of ?‚? 187.53 Lakhs in the FY 2022-23. The explanation for such increase is mention in Profit/(Loss) Before Tax. With increased utilization cash credit limit from ?‚? 508.81 lakhs in FY 2023 to ?‚? 713.09 lakhs in FY 2024 and increase in Networth from ?‚? (90.36) lakhs in FY 2021-22 to ?‚? 587.28 lakhs in FY 2023-24, the Company was able to repay the supplier earlier due to availability of cash which led to procurement of raw material at lower rates to increase the overall profitability of the business. This has led to reduction in cost of materials consumed cost to 58.28% in FY 2024 from 68.21% in FY 2023 which effectively led to increase in EBITDA and PAT margins.

CASH FLOWS:

(?‚? In Lakhs)

Particulars	For the Period ended	For the Year ended March 31
	July 31, 2025	2025	2024	2023
Net Cash from Operating Activities	58.23	(176.25)	28.00	335.48
Net Cash from Investing Activities	(12.86)	(2.35)	(6.16)	(55.56)
Net Cash from Financing Activities	(59.13)	167.20	4.68	(275.78)

Cash Flows from Operating Activities

Net cash Inflow from operating activities for the period ended July 31, 2025 was at ?‚? 58.23 Lakhs as compared to the Profit Before Tax at ?‚? 371.97 Lakhs. This difference was mainly due to following reasons.

Depreciation;

Payment of taxes, Trade payable and other current liability;

Credit period extended to trade receivable and maintain higher stock level for perpetual pending order;

Due to interest which is part of financing activity but while considering profit before tax we have reduce from profits;

Increase in short term provision.

Net cash outflow from operating activities for year ended March 31, 2025 was at ?‚? 176.25 Lakhs as compared to the Profit Before Tax at ?‚? 826.91 Lakhs. This was mainly due to following reasons:

Depreciation;

Payment of taxes, Trade payable and other current liability;

Due decrease in trade receivable and maintain higher stock level for perpetual pending order;

Due to interest which is part of financing activity but while considering profit before tax we have reduce from profits;

Increase in long term provision.

Net cash Inflow from operating activities for year ended March 31, 2024 was at ?‚? 28.00 Lakhs as compared to the Profit Before Tax at ?‚? 717.33 Lakhs. This was mainly due to following reasons :

Depreciation;

Payment of taxes and Trade payable;

Credit period extended to trade receivable and maintain higher stock level for perpetual pending order;

Due to interest which is part of financing activity but while considering profit before tax we have reduce from profits;

Increase in short term provision

Net cash Inflow from operating activities for year ended March 31, 2023 was at ?‚? 335.48 Lakhs as compared to the Profit Before tax of ?‚? 219.02 Lakhs. This was mainly due to following reasons:

Depreciation;

Payment of other current liability;

Increase credit periods of trade payable;

Credit period extended to trade receivable;

Due to interest which is part of financing activity but while considering profit before tax we have reduce from profits;

Increase in short term loans and advances.

Cash Flows from Investment Activities

For the period ended July 31, 2025, net cash outflow from Investing Activities were ?‚? 12.86 Lakhs. This was mainly due to investment in Fixed Assets.

For the period ended March 31, 2025, net cash outflow from Investing Activities were ?‚? 2.35 Lakhs. This was mainly due to investment in Fixed Assets.

For the year ended March 31, 2024, net cash outflow from Investing Activities were ?‚? 6.16 Lakhs. This was mainly due to investment in Fixed Assets.

For the year ended March 31, 2023, net cash outflow from Investing Activities were ?‚? 55.56 Lakhs. This was mainly due to investment in Fixed Assets.

Cash Flows from Financing Activities

For the period ended July 31, 2025, net cash outflow from Financing Activities were ?‚? 59.13 Lakhs. This was mainly due to cash outflow to Repayment of loans and Payments of Interest.

For the period ended March 31, 2025, net cash inflow from Financing Activities were ?‚? 167.20 Lakhs. This was mainly due to cash inflow from proceeds from Share Capital & Share Premium and cash outflow to Repayment of loans and Payments of Interest.

For the year ended March 31, 2024, net cash inflows from Financing Activities were ?‚? 4.68 Lakhs. This was mainly due to Acceptance of short term Loans, payment of long term loans and Payments of Interest.

For the year ended March 31, 2023, net cash outflow from Financing Activities were ?‚? 275.78 Lakhs. This was mainly due to Repayment of loans and Payments of Interest.

Related Party Transactions

For further information, Please refer "Note: AD titled Related Party Transaction" under chapter titled "Restated Financial Statement" beginning from page no. 236 of this Red Herring Prospectus.

Off-Balance Sheet Items

We do not have any other off-balance sheet arrangements, derivative instruments or other relationships with any entitythat have been established for the purposes of facilitating off-balance sheet arrangements.

Financial Market Risks

Market risk is the risk of loss related to adverse changes in market prices, including interest rate risk. We are exposed to interest rate risk, inflation and credit risk in the normal course of our business.

Interest Rate Risks

We are currently exposed interest to rate risks to the extent of outstanding loans. However, any rise in future borrowings may increase the risk.

Effect of Inflation

We are affected by inflation as it has an impact on the operating cost, staff costs etc. In line with changing inflation rates, we rework our margins so as to absorb the inflationary impact.

Information required as per Item (II) (C) (iv) of Part A of Schedule VI to the SEBI Regulations:

An analysis of reasons for the changes in significant items of income and expenditure is given hereunder:

Unusual or infrequent events or transactions.

There has not been any unusual trend on account of our business activity. There are no Unusual or infrequent events or transactions in our Company. The transactions are as per usual business operations.

Significant economic changes that materially affected or are likely to affect income from continuing operations.

Except for any change in economic policy affecting pharma industry in India, there are no other significant economic changes that may materially affect or likely to affect income from continuing operations.

Known trends or uncertainties that have had or are expected to have a material adverse impact on sales, revenue or income from continuing operations.

Apart from the risks as disclosed under Section "Risk Factors" beginning on page 25 in the Red Herring Prospectus, in our opinion there are no other known trends or uncertainties that have had or are expected to have a material adverse impact on revenue or income from continuing operations.

Future changes in relationship between costs and revenues.

Our Companys future costs and revenues will be determined by growth of industry in which we operate.

Increases in net sales or revenue and Introduction of new products or services or increased sales prices.

Increases in revenues are by and large linked to increases in volume of our business.

Status of any publicly announced New Products or Business Segment.

Our business is related to manufacturing of pharmaceutical products for different markets globally as well as domestic on loan license or contract Manufacturing and own brand marketing basis. Otherwise as stated in Red Herring Prospectus and in the chapter titled "Business Overview" appearing on page no. 133. Our Company has not announced any new products.

Seasonality of business.

Curis Lifesciences is the pharma manufacturer, specializing in manufacturing of a wide range of pharmaceutical products such as Tablets, Capsules, External Preparations, Oral Liquid, Sterile Ophthalmic Ointments. We are in business of

manufacturing of pharmaceutical products in both, global as well as domestic market on loan license, Contract Manufacturing and Direct Export basis. The nature of business is not seasonal.

Competitive conditions.

Competitive conditions are as described under the chapter titled "Industry Overview" and "Business Overview " beginning

on pages 121 and 133, respectively of the Red Herring Prospectus.

Details of material developments after the date of last balance sheet i.e. July 31, 2025.

Except as mentioned in this Red Herring Prospectus, no circumstances have arisen since the date of last financial statement until the date of filing the Red Herring Prospectus, which materially and adversely affect or are likely to affect the operations or profitability of our Company, or value of its assets, or its ability to pay its liability within next twelve months.