Dishman Carbogen Amcis Ltd Management Discussions

Economic Review

Global Economy Overview

In CY2024, the global economy expanded at a moderate pace of 3.3%, reflecting a period of relative stability, albeit with subdued momentum. Stepping into 2025, the global economic environment is undergoing significant transformation, driven by shifting policy priorities in response to escalating geopolitical tensions and mounting economic headwinds. A key development has been the implementation of new tariff measures by the United States, which triggered swift retaliatory responses from major trading partners. This culminated in the imposition of near-universal tariffs in April 2025, raising effective tariff rates to levels not seen in over a century. These measures have disrupted global trade flows and weighed on growth prospects.

The abrupt and unpredictable nature of these policy changes has further amplified economic uncertainty, complicated short-term forecasts and undermining the reliability of traditional economic models.

Amid these challenges, global headline inflation is now expected to moderate more gradually than previously anticipated. It is projected to decline to 4.3% in 2025 and further to 3.6% in 2026. This revised outlook reflects higher inflation expectations in advanced economies, partially offset by marginal downward adjustments in emerging markets and developing economies.

Growth in emerging markets and developing economies (EMDEs) is showing signs of moderation, with pronounced effects in countries such as Mexico, South Africa, and Argentina. Elevated debt burdens and depreciating currencies are intensifying inflationary pressures and constraining monetary and fiscal policy responses. At the same time, many of these economies are contending with tighter global financing conditions and diminishing investor appetite, further amplifying existing economic vulnerabilities and limiting the scope for sustained recovery.

Outlook

Despite the ongoing challenges in the global economy, this period presents a valuable opportunity to build resilience and pursue a more sustainable path. The flexibility demonstrated by several economies under strain indicates that recovery is achievable through coordinated policies and proactive reforms.

By fostering a stable and transparent trade environment, resolving debt issues promptly, and addressing structural imbalances, nations can contribute to a more balanced and inclusive global recovery. Clear monetary policy guidance, prudent use of macroprudential tools, and credible fiscal strategies will be key to restoring financial stability and safeguarding long-term growth.

Moving forward, international cooperation will be crucial. With aligned policies, decisive leadership, and a shared commitment to progress, the global economy can regain momentum, strengthen its foundations, and create new opportunities for prosperity across the world.

India Economic Overview

India sustained its growth momentum in FY 2024–25, recording an estimated GDP growth of 6.5% despite global trade disruptions. This expansion was driven by strong private consumption and a rise in gross fixed capital formation, reflecting steady infrastructure investments. Rural demand was boosted by improved agricultural output, while urban consumption benefited from tax reliefs and higher discretionary spending.

The governments commitment to infrastructure development is evident in the Union Budget 2025–26, which allocated ?11.21 lakh crore towards capital expenditure, focusing on transport, urban development, renewable energy, affordable housing, defence, and social infrastructure. This investment is expected to spur private sector activity and job creation.

Retail inflation eased to 4.6% in FY 2024–25 from 5.4% a year earlier, driven by lower food prices and deflation in fuel. The Consumer Price Index (CPI) is projected to further decline to 4% in FY 2025–26, assuming a normal monsoon and stable global commodity prices. However, potential US tariffs may raise import costs and pose inflationary risks.

The RBIs recent 25 bps repo rate cut is aimed at easing liquidity, reducing borrowing costs, and cushioning the economy against global headwinds.

Looking ahead, GDP growth is expected to remain steady at 6.5% in FY 2025–26, underpinned by accommodative policies, continued public capex, and improving macroeconomic fundamentals. The services sector is likely to stay strong, while manufacturing may benefit from falling energy costs. Policymakers remain vigilant amid evolving global trade dynamics and stand prepared to respond as needed.

Outlook

Indias economy is set to grow between 6.5% in FY 2025-26, driven by strategic reforms, digital growth, and an expanding consumer market. Programmes like Make in India and the Production-Linked Incentive (PLI) schemes are strengthening the manufacturing landscape, attracting investments in electronics, semiconductors, and renewable energy. At the same time, large-scale infrastructure development spanning highways, ports, and smart cities is driving economic activity and job creation. With strong policy backing and ongoing investments, India is well-positioned for long-term growth, reaffirming its role as a global economic powerhouse.

Industry Overview

Global Pharma Industry

The global pharmaceutical sector, while resilient due to the essential nature of its products, continues to face macroeconomic headwinds. Although pharmaceuticals were exempted from the broad U.S. import tariffs introduced in early April, the surrounding policy uncertainty has added to the industrys cautious outlook.

Current estimates now peg global pharmaceutical production and sales to grow by 3% in 2025, which is 0.5 percentage points lower than earlier projections. Growth is expected to moderate further to 2% in 2026, reflecting a downward revision of 1 percentage point. These revisions underscore the sectors sensitivity to the broader global economic slowdown, despite its relative stability.

Nevertheless, the industry remains financially robust, with strong equity, solvency, and liquidity profiles. Most pharmaceutical and biotech companies retain solid access to external financing, allowing them to sustain high levels of R&D investment, a critical enabler of innovation and long-term growth.

Source: Atradius

Emerging markets are poised to play a greater role in the global pharmaceutical landscape, supported by expanding healthcare infrastructure and strengthening supply chains. Demand is expected to rise for specialty drugs, chronic disease therapies, and generics, driven largely by ageing populations and evolving healthcare needs. A key area of growth is the market for weight-loss medications, which is projected to reach approximately USD 80 billion by 2030. Looking ahead, Artificial Intelligence (AI) is anticipated to significantly improve productivity within the sector. In particular, AI applications are set to transform the preclinical and R&D stages of drug development, offering faster, more efficient, and potentially cost-effective pathways for innovation.

Potential constraints ahead

High levels of government debt and the need to reduce fiscal deficits are putting pressure on public healthcare spending in advanced economies. In recent years, the expiration of numerous patents has intensified competition, with generics gaining traction just as governments seek to contain healthcare costs. Countries such as the U.S., Japan, and much of Western Europe have implemented drug pricing policies aimed at reducing state healthcare expenditures and making medicines more affordable. These measures, however, are facing pushback from the pharmaceutical industry. Companies argue that such pricing regulations constrain their revenue potential and diminish incentives for R&D investment. They also caution that efforts to steer research priorities could hinder innovation and ultimately reduce long-term drug output. With the cost of developing new pharmaceuticals rising significantly, R&D returns have been on a downward trend since 2014.

Core Areas of Worldwide Medicine Expenditure

Biotech medicines are projected to represent 39% of total global pharmaceutical spending by 2028. This category encompasses both emerging modalities—such as cell and gene therapies—and a growing biosimilar market that is enhancing access to high-cost biologics. Major contributors to biotech spending include advancements in oncology, immunology, diabetes, and obesity treatments, as well as an expanding pipeline in neurology.

Specialty medicines, often complex or high-cost therapies for chronic, rare, or severe conditions—are projected to account for 43% of global pharmaceutical spending by 2028, with most of this expenditure concentrated in developed markets. These treatments are playing an increasingly central role in shaping care approaches in oncology, immunology, and rare diseases.

Therapeutic areas projected to see the highest global spending by 2028 include:

Oncology: Forecast to grow at a compound annual growth rate (CAGR) of 14–17% through 2028, driven by the ongoing introduction of innovative targeted and immuno-oncology therapies.

Immunology: Expected to grow at a more moderate pace of 2–5% CAGR, as the adoption of biosimilars helps temper overall spending growth despite continued product launches.

Diabetes: Anticipated to reach USD184 billion by 2028, positioning it as the third-largest therapy area globally. Growth of 3–6% CAGR is supported by both established treatments and newer GLP-1-based therapies.

Cardiovascular and Neurology: These segments are set for steady growth and to reach USD 126 billion by 2028, reinforced by advancements in heart failure therapies, stroke prevention, and emerging treatments for migraine, depression, and rare neurological disorders.

Obesity: Obesity has rapidly become a key area of focus. Global spending surged to USD 74 billion in 2024, up from just USD 3.2 billion in 2020, largely due to the widespread adoption of GLP-1 receptor agonists. Initially developed for diabetes, these therapies have shown significant weight-loss effectiveness and are increasingly used as non-surgical solutions for obesity. Their clinical success has sparked a wave of obesity-focused clinical trials, indicating strong future investment in metabolic health.

Source: Global Use of Medicines 2024

Global Oncology Industry

Oncology trial starts saw a modest increase in 2024, reaching 2,162 trials—a 12% rise compared to 2019—following a decline after peaking in 2021. The majority of new trials are centred on rare cancers and solid tumours. Pre-commercial emerging biopharma companies now lead the field, initiating 53% of oncology trials, up from 24% a decade ago, with commercial emerging biopharma firms contributing another 8%. China-headquartered companies now account for 39% of global oncology trial starts—up significantly from 5% ten years ago—with 84% of their studies conducted domestically.

Innovative oncology modalities are gaining momentum. Cell and gene therapies, antibody-drug conjugates (ADCs), and multi-specific antibodies now represent 35% of all oncology trials. Global PD-1/PD-L1 inhibitor trial initiations have dropped 16% since 2019, though China-only trials in this area have surged 50%. Hematological cancer trials continue to focus on CAR T cell therapies, while solid tumour trials are increasingly exploring T-cell receptor (TCR) and tumour-infiltrating lymphocyte (TIL) therapies. CAR T trial starts have declined 15% from their 2022 peak but remain concentrated on blood cancers.

ADCs are the fastest-growing modality in solid tumours, with nine global approvals over the past five years and trial starts rising 32% annually. Fourteen bispecific antibodies are now marketed for cancer, and multi-specific antibody trial activity has tripled since 2019. Radioligand therapies are also under evaluation, primarily for prostate and neuroendocrine tumours.

The pipeline of novel oncology approaches is expanding rapidly, with significant potential for both standalone and combination treatments. Regulators and sponsors are increasingly supporting innovation to accelerate access to new therapies. Since 2022, nearly 20 oncology trials per year have originated from AI-focused research companies. Despite scientific advances, disparities remain. Black/ African American and Hispanic patients continue to be underrepresented in clinical trials relative to their cancer incidence rates, while facing higher mortality, with minimal improvement since 2019. Although cancer prevalence is evenly split by sex, trials over the past five years have favoured male-focused cancers; 46% of oncology trials underrepresent females by more than 5%, compared to just 21% for males.

Oncology accounts for 41% of all clinical trial activity. After record highs in 2021 and a decline through 2023, the sector showed a slight rebound in 2024. Phase II trials—including Phase I/II, IIa, and IIb—made up the largest share in 2024 at 48%, followed by Phase I at 38% and Phase III at 14%. Rare cancers were the focus of 74% of 2024 trial starts, up 3% from 2023. Trials targeting solid tumours accounted for 79%, a 1% increase from the previous year. Though haematological cancer trials represent a smaller portion, they have grown 30% over the past decade, with over 450 initiated in 2024 alone.

Global Prescription Drug Sales

Global medicine consumption is projected to reach approximately 3.8 trillion defined daily doses (DDDs) by 2028, marking an increase of 400 billion DDDs from 2023 levels. While overall usage remained flat in 2023, it is expected to grow at an average annual rate of 2.3% over the next five years.

Growth in medicine use is notably stronger in Latin America and Asia, a trend that is anticipated to continue through 2028. Per capita consumption varies significantly by region and economic status, with higher-income countries typically exhibiting greater usage. Regions such as Japan and Western Europe have more than twice the per capita medicine use compared to most other areas. When adjusted for population, per capita use is expected to rise across all regions except Africa and the Middle East. However, gains in the lowest-income countries remain slow, limiting progress in public health outcomes.

Over the past five years, global medicine consumption increased by 414 billion DDDs, and a similar increase is expected by 2028. The most substantial volume growth is projected in China, India, and the broader Asia-Pacific region, each forecasted to exceed a 3% compound annual growth rate (CAGR). In contrast, growth in higher-income regions such as North America, Western Europe, and Japan will remain modest due to mature healthcare systems and already high levels of access.

Latin America, which experienced a 6.1% average annual growth rate through 2023, is projected to slow to 1.9% through 2028, primarily due to weaker economic outlooks. Eastern Europe is expected to maintain stable growth at

1.6% CAGR, only marginally below its previous rate, despite potential disruptions from regional conflicts such as the war in Ukraine.

Access to medicines remains a significant challenge in lower-income countries, where availability is substantially lower and has declined over the past five years. This limited access is expected to persist, potentially offsetting broader health policy initiatives. It is important to interpret these trends carefully, as chronic conditions—which account for a significant share of treatment days—are less frequently treated in lower-income settings due to resource constraints.

Global CDMO Industry

The global pharmaceutical Contract Development and Manufacturing Organization (CDMO) market is projected to reach around USD 169.87 billion in 2024, reinforcing its role as a key contributor to the pharmaceutical value chain. This growth is driven by several factors, including the rising complexity of drug development, the increasing demand for biologics and personalized therapies, and the accelerating trend toward outsourcing.

As the industry shifts towards more advanced and specialized treatments—such as biologics, gene therapies, and other complex drug modalities—CDMOs are becoming essential partners in both development and commercial-scale manufacturing. Their technical expertise and flexible infrastructure enable pharmaceutical companies to bring complex therapies to market more efficiently.

Outsourcing continues to gain traction as companies aim to reduce capital expenditure on manufacturing facilities and instead focus on innovation and R&D. CDMOs offer cost-effective, scalable solutions that support both traditional pharmaceutical production and cutting-edge technologies, including sterile injectables, viral vectors, and cell and gene therapies.

In response, many CDMOs are expanding their capabilities to accommodate this growing demand, particularly in biologics manufacturing. This transformation underscores the evolving strategic importance of CDMOs, which are increasingly viewed as integral to the successful delivery of next-generation therapies and the broader pharmaceutical ecosystem.

Source: Cervicorn Consulting

3 Key Trends Shaping the CDMO Industry

Transitioning to Customer-Driven Manufacturing

As the biopharma landscape continues to evolve, it has become increasingly vital for Contract Development and Manufacturing Organizations (CDMOs) to shift towards becoming "CdMOs"—customer-driven manufacturing organizations. This transformation involves embedding customer needs at the core of every function, from defining the companys mission to product development, manufacturing, quality assurance, and client support.

Achieving this requires adopting a truly customer-centric approach grounded in transparency, collaboration, and continuous improvement. A few practical strategies include:

Designing with the Customer in Mind:

Facilities and operational experiences should be built around the customer. This not only fosters a collaborative environment but also enables biopharma partners to work seamlessly alongside CDMO teams, improving engagement and outcomes.

Creating Executive-Level Connections:

Building direct relationships between customers and company leadership is essential. Programs like Executive Sponsorship help foster trust, ensure transparency, and prioritize the customers voice in strategic decision-making. This consistent dialogue with executives keeps the clients needs front and centre across the organization.

Ultimately, becoming a customer-driven manufacturing organization enables CDMOs to remain competitive in a complex, dynamic market. By centring operations around customer expectations, CDMOs can drive growth, strengthen long-term partnerships, and deliver innovative, responsive solutions.

Agile Manufacturing in the CDMO Industry

To keep pace with evolving market dynamics and regulatory landscapes, agility has become a defining capability for CDMOs. Agile manufacturing enables organisations to quickly adapt to shifting demands, enhance responsiveness, and maintain operational efficiency without compromising quality.

Key trends shaping agile manufacturing within the CDMO sector include:

Multi-Use Manufacturing Platforms:

These flexible platforms allow CDMOs to use shared equipment and processes across a variety of products, facilitating faster changeovers and minimizing downtime from clinical through to commercial stages.

Flexible Facility Design:

Facilities built with adaptability in mind can be reconfigured or expanded efficiently. This design flexibility helps CDMOs adjust rapidly to new projects, market changes, or evolving regulatory requirements without incurring major delays or construction costs.

Data Analytics and Automation:

By leveraging advanced analytics and automation,

CDMOs can optimize manufacturing workflows in real time. This improves productivity, ensures consistent quality, and reduces operational costs through proactive process adjustments.

The move toward agile manufacturing represents a major opportunity for CDMOs to strengthen their capabilities, better serve their clients, and maintain a competitive edge in an increasingly complex industry.

Embracing Digitalization: The Future of CDMO Operations

Digital transformation is becoming a critical enabler of efficiency, quality, and scalability in the CDMO sector. By integrating digital technologies, CDMOs can streamline processes, enhance visibility, and deliver greater value to customers—all while ensuring regulatory compliance.

Key areas where digitalization is making a significant impact include:

Data Management

CDMOs handle large volumes of operational, manufacturing, and quality-related data. Advanced data management tools improve visibility, decision-making, and resource allocation, helping organizations better optimize their workflows and respond to trends.

Automation

Automating core functions such as production and quality testing minimizes manual errors, accelerates throughput, and frees skilled personnel to focus on high-value activities like process optimization and innovation.

Enhanced Collaboration

Digital platforms enable real-time communication and secure data sharing with clients and partners. This improves transparency, supports project alignment, and strengthens customer relationships through faster, more efficient collaboration.

In a fast-moving and innovation-driven environment, embracing digitalization is no longer optional. It is essential for CDMOs seeking to enhance operational performance, exceed client expectations, and secure long-term growth. Source: INCOG Biopharma

Indian Pharma Industry

The Indian pharmaceutical industry has witnessed robust growth over the past few decades, rising from approximately USD 4 billion in 2000 to around USD 50 billion in 2023. Looking ahead, the sector is projected to grow at a CAGR of 9%, reaching USD 450 billion by 2047.

This growth will be fuelled by multiple factors, including:

Expansion of the domestic market, supported by a stronger economy and rising per capita GDP.

Broader healthcare coverage through Ayushman Bharat and increased private insurance penetration.

Greater access and service uptake enabled by the ABDM platform and a rapidly evolving digital ecosystem.

Export-led growth through value-driven innovation, especially in complex generics, biosimilars, NCEs, NBEs, and advanced therapies such as antibody-drug conjugates, cell and gene therapies, and DNA/RNA-based treatments.

India on the path to becoming a global pharma powerhouse

Inno vation-Driven Global Pharma Leader: India is expected to develop strong innovation hubs comparable to those in San Francisco and Boston. With deeper insights into diseases, more effective and curative treatments will emerge. The country could see the launch of several next-generation therapies—entirely researched and developed indigenously—making a mark both domestically and globally.

Self-Reliant and Globally Competitive API & KSM Industry: India will achieve self-sufficiency in APIs and KSMs while emerging as a major global exporter. Growth will be driven by a strong focus on sustainable manufacturing practices.

Indian CRDMOs - At the Forefront Globally: India is set to become a global leader in the CRDMO segment, with a sharp focus on biologics and cutting-edge therapies.

Patient-Centric Quality Excellence: India will earn global recognition for the quality of its medicines and healthcare delivery, with standards fully aligned and harmonized with international benchmarks.

Digital Integration Across the Pharma and Healthcare Value Chain

Technology will be deeply embedded across all stages—from drug discovery and clinical trials to manufacturing, commercialization, and patient delivery—enabling seamless, end-to-end digital transformation throughout the pharma and healthcare ecosystem.

Outlook

Indias pharmaceutical sector is on course to evolve from the "Pharmacy of the World" into a "Global Pharma Powerhouse" by 2047. Realizing this vision will demand a unified, ecosystem-driven strategy focused on innovation, digitalization, quality excellence, and building a skilled, future-ready workforce. Despite ongoing challenges such as talent gaps, pricing pressures, and global compliance demands, strong industry fundamentals and supportive policy measures position India for long-term growth and global leadership. Source: EY Report

Management Discussion And Analysis

Business Overview

About Dishman Carbogen Amcis Limited

Dishman Carbogen Amcis Limited ("DCAL", "imdcal" or "the Company") is a well-known player in the Contract Development and Manufacturing Organization ("CDMO") sector. The Company is relied upon by major pharmaceutical innovators worldwide to deliver outstanding results that support healthier communities. DCAL is recognized for its top-tier manufacturing and R&D capabilities, offering integrated, high-value, and specialized CDMO solutions. Its services span the entire drug development process, from process R&D to late-stage clinical and commercial manufacturing, including the supply of Active Pharmaceutical Ingredients (APIs) and intermediates, which ensures superior outcomes for clients.

DCAL is a favored outsourcing partner with a presence across various continents and countries, including the United States, Switzerland, the UK, France, the Netherlands, China, Japan, and India. It serves clients in all major advanced markets, such as the US, Europe, and Asia. The Company possesses strong chemistry expertise and large-scale, versatile manufacturing capacities. It operates 10 manufacturing facilities globally, with locations in Europe, India, and China. These include four facilities in Switzerland, two in India, and one each in the UK, Netherlands, France, and China. Its HiPo facility in Bavla, India, is among the largest in Asia, allowing the Company to capitalize on high-margin opportunities in the oncology sector and other highly potent compounds.

Initially, DCAL focused on producing quaternary ammonium and phosphate compounds, but it quickly became one of the fastest-growing companies in the Indian CDMO industry. The Company entered the CDMO market by securing a contract to develop and manufacture an Active Pharmaceutical Ingredient for an innovator. DCAL was one of the pioneers in India to successfully develop and commercially manufacture a new chemical entity. Over the past 17 years, the Company has expanded through acquisitions and greenfield projects, resulting in a rich talent pool and unmatched operational excellence.

Our Business Verticals

1. C ontract Development and Manufacturing Organization (CDMO) - Our main business focus is on CDMO. We are a comprehensive CDMO provider with robust capabilities throughout the value chain. In our CDMO operations, we support drug innovators in developing and optimizing processes for new drug molecules at various stages of development. Once these innovative molecules receive approval, this segment scouts opportunities for large-scale commercial supply agreements. We offer comprehensive, high-value CDMO services, ranging from process research and development to late-stage clinical and commercial manufacturing. The CDMO segment accounts for 85% of our total revenue in FY25. With our extensive experience and advanced capabilities, we are well positioned to capitalize on strong growth and emerging opportunities in the global CDMO market.

CARBOGEN AMCIS specializes in providing a range of drug development and commercialization services to the pharmaceutical and biopharmaceutical sectors at every stage of drug development. Our comprehensive and customized services for Drug Substances (DS) and Drug Products (DP) offer innovative solutions to ensure timely and safe drug development. We conduct custom synthesis operations within the Dishman group, which includes two facilities in India, and within the CARBOGEN AMCIS group, which encompasses eight facilities: four in Switzerland, one each in France, the UK, China, and the Netherlands. CARBOGEN AMCIS offers development and manufacturing services for both non-potent and highly potent drug substances (APIs) and drug products, utilizing advanced containment technologies. All facilities adhere to current Good Manufacturing Practices (cGMP) and are capable of producing materials for preclinical testing, clinical trials, and commercial use. Our manufacturing sites undergo regular inspections by the US Food and Drug Administration (FDA) and local regulatory bodies. The large-scale production capacities, up to 8,000 liters, allow for the efficient production of non-GMP intermediates, which can be further processed at the CARBOGEN AMCIS facilities in Switzerland.

Our facilities in Saint-Beauzire, France, are well-equipped for custom development and automated aseptic production of liquid and lyophilized drug products, featuring two production lines offering liquid and lyophilized sterile injectables and capable of handling Highly Potent products with OEB 4+ category. Our services also include formulation, process development, and scaling up for liquid and freeze-dried products.

We have completed numerous drug linker projects successfully. Since our first ADC project in 2005, interest in our ADC and bioconjugation capabilities has grown among customers, from small biotech firms to large pharmaceutical companies. We manage projects from payload/ warhead manufacturing to drug-linker synthesis, conjugation, and final drug product production inhouse. Our cleanroom suites are fully qualified for cGMP manufacturing dedicated to bio-conjugation, complemented by our advanced purification technologies and outstanding analytical, fill, and finish capabilities.

Dishman India serves as a global outsourcing partner for the pharmaceutical industry, providing a variety of development, scale-up, and manufacturing services. The Company supports its clients by offering a range of development and manufacturing solutions at facilities in Europe and India. Dishman is dedicated to delivering high-value solutions with technical excellence and aims to be a dependable partner, safeguarding its clients interests as if they were its own.

The Company provides specialized research and development services focused on creating processes that are scalable up to commercialization, whether through process research, development, or optimization. Dishman employs a team of highly skilled professionals who work in three continuous shifts at advanced R&D centers. The Company is committed to ensuring safe and efficient scale-up and problem-solving, resulting in robust and cost effective processes. Dishman also enforces strict intellectual property protection policies, treating its clients interests with the same care as its own.

2. Mar ketable Molecules

A. Speciality Chemicals

Dishman Specialty Chemicals manufactures and supplies high quality intermediates, fine chemicals, and various products for pharmaceutical, cosmetic and related industries. The Company had a long association with the manufacture and supply of Quaternary ammonium compounds (Quats) for use as phase transfer catalysts.

Our domain expertise in solids handling technology has helped us to expand our offerings to include ammonium and phosphonium high-purity solid Quats, Phosphoranes and Wittig reagents. These products find applications as phase transfer catalysts, personal care ingredients, fine chemicals, pharma intermediates and disinfectants. A number of our products are made under GMP manufacturing conditions at our Naroda facility in India. Furthermore, we maintain local stocks of select products in Europe and in the US.

We have significant expertise in providing tailor made solutions. We are well equipped to supply our customers with our quality products or provide them assistance on the next project with our world class manufacturing expertise, logistics and competitive pricing.

B. Vitamins and Analogues

Vitamin D plays a vital role in brain development, muscle function, maintaining a healthy respiratory and immune system, and optimal cardiac function. It also strengthens our bodies against illnesses such as diabetes, asthma, chronic pains, cancer, infections, multiple sclerosis, psoriasis, depression, etc. However, if there is a Vitamin D deficiency, then it leads to bone disorders such as rickets, osteomalacia and osteoporosis.

Vitamin D is present in inactive form in the human body and gets activated in the presence of sunlight to process the release of Calcifediol. This Calcifediol is then metabolised in the kidney to release Calcitriol which is further absorbed by the intestine, kidney and bones.

The bones mobilise the secretion of Calcium and Phosphate in the parathyroid gland to maintain the optimum balance of these elements which is a prerequisite for strong bones.

Functioning as the global outsourcing partner for other pharmaceutical companies; aiding them in development and scale-up production via its high potency supply of compounds; Dishman first realized the need of the hour with Vitamin D because of its elaborate research on its therapeutic uses that covers a wide range of medical conditions. Keeping wellness as our primary objective, we acquired Solvay Pharmaceuticals Veenendaal, Netherlands plant which focused on manufacturing cholesterol, serving as a precursor to vitamin D & its analogues. As a multifaceted organisation with a high degree of groundwork, we established greener processes to manufacture in a budgeted environment.

Hence, we ensure the extraction of this cholesterol from sheep wool, making it a vegan source required to form a strong base for the formulations. Gradually, with a steadfast strategy, entrepreneurial spirit and a rising demand for the application of this raw material in various sectors: as a natural course towards the extension of existing and acquired business, we forayed into developing a wide spectrum of products for the pharmaceutical, nutraceutical and holistic animal nutrition verticals of Vitamin D3. This derivative, if taken in the right quantity, can cure the roots of many diseases, resulting in complete wellbeing.

In the pursuit of developing a world-wide circuit in the supply of Vitamins and its analogues, Dishman has completed the establishment of WHO cGMP compliant fully integrated manufacturing unit, at Bavla, based in Gujarat, India, which is also an ISO 9001:2015 certified. Its core lies in its CDMO model capabilities that umbrellas an entire gamut of services from production of raw materials to developing the final products as well as market the same. This has enabled us to be in the forefront with the capacity to manufacture 1,000 MT annually and simultaneously catering to specifically engineered requirements of our clients, all at one place.

C. Generic APIs and Disinfectants

Dishman plans to develop and manufacture niche generic APIs. The Company is working on development of certain generic molecules, which could have huge potential in terms of profitability. We are working towards capturing a larger market share of the profitable generic APIs such as imaging reagents where we have filed the Drug Master Filings or other regulatory filings. The Company will continue to file for such molecules in the future as well and strive to increase the proportion of these molecules in the marketable molecules business segment. Dishman India has a range of hand and body wash, sanitisers, and antiseptics, apart from its active pharmaceutical ingredients and formulations businesses. We offer a range of antiseptics and disinfectants for application in healthcare and related industries. Our aim is to build a deep portfolio of ‘next generation innovative antiseptic and disinfectant formulations. Our product pipeline specialises in high quality, cost effective, proven antimicrobial products based on Chlorhexidine Gluconate (CHG) and Octenidine dihydrochloride (OCT). We shall provide specialist products for environmental decontamination based on hydrogen peroxide disinfectant.

Our Competitive Strengths

C apabilities Across the Entire CDMO Value Chain

Currently, the imdcal brand is recognized by international clients as a favoured global outsourcing partner, offering capabilities throughout the entire CDMO value chain. Its services span from process R&D and pilot supply to full-scale and commercial manufacturing, utilizing purpose-built and dedicated facilities. The Groups facilities in India and China boast strong chemistry expertise, featuring a large, dedicated R&D operation running multiple shifts, as well as 25 dedicated production facilities for APIs and intermediates in both India and China, with dedicated API manufacturing capacities in these locations.

High Potency API Capability

DCAL has invested in world class capabilities to address the oncology and other highly potent compound therapy markets. Coupled with 20 years of HiPo API experience, the High Potency API business represents a significant opportunity for step change in the Groups topline and bottom-line growth. The Group has a strongly differentiated set of capabilities in the HiPo API arena with pre-clinical API, phase 1/ phase 2/phase 3 and commercial API and up to clinical Ph2 parenteral dosage form capabilities. All these capabilities remain in house and underwritten by a consolidated project management capability to take customers from pre-clinical stages through to commercial manufacturing of APIs, right through to formulated products.

Antibody Drug Conjugates (ADC)

The company has been one of the earliest movers in the ADC space since it has been developing molecules with this technology since 2014. We have the capability to develop and manufacture linker, payload as well as conjugate with the antibodies. We have demonstrated strong technical capabilities with our strong scientist base in Switzerland with this technology basis which we were successful in developing an extremely complex ADC molecule for a large Japanese innovator. We have entered into co-investment agreements with this customer reinforcing our strong relationship with this customer. We are developing an ADC molecule for a large German innovator and offering end to end service right from developing the API in Switzerland to developing the finished formulation in the French facility.

Scientific Advancements

Successful drug development is a balance between speed, quality and costs. We aim to offer our customers a choice of state-of-the-art tools combined with qualified and experienced staff to best meet these often-changing priorities. CARBOGEN AMCIS has built up a portfolio of specialist services to give customers the highest degree of flexibility possible.

Chromatography -

Chromatography often forms part of a fast route to producing initial quantities of material. We offer customised chromatography solutions for the separation and purification of APIs and intermediates, including highly active APIs and impurity isolation. Our dedicated group of chemists have more than 51 years experience in the group expertise in method development and scale-up in a variety of different chromatographic techniques, all in accordance with the current Good Manufacturing Practice (cGMP) environment. Cost-effective large scale chromatography is also possible given the correct infrastructure. CARBOGEN AMCIS offers Flash Chromatography (Biotage), SMB and HPLC to effectively produce clinical trial quantities of APIs and commercial products.

Crystallization Services -

Defining the best crystalline form of an Active Pharmaceutical Ingredient (API) is crucial in drug development, since it has a significant impact on its bioavailability and formulation properties. CARBOGEN

AMCIS has established a service supporting our customers with crystallisation investigations including solubility tests, salt screening, and optimisation of the crystallisation process and the solid/liquid separation in the API isolation process. Polymorphism screening complements the service portfolio. We offer online monitoring of critical parameters such as particle size, turbidity, temperature, and pH value, as well as analytical services dedicated to solid phase characterisation including hot stage microscopy, differential scanning calorimetry, Dynamic Vapor Sorption (DVS) and x-ray powder diffraction.

World Class Manufacturing Facilities

Our state-of-the-art infrastructure includes process research and development (PR&D) laboratories and one laboratory dedicated to conjugation of small and large molecules and manufacturing capabilities. CARBOGEN AMCIS delivers leading process research services that support the drug development process. Early Active Pharmaceutical Ingredient (API) manufacture centres on the rapid synthesis of supplies necessary to perform both toxicology and early phase clinical trials. Typical batch sizes here range from 1 gram to 50 kg scale and are prepared as per the highest standard of current Good Manufacturing Practices (cGMP).

We internally optimize each site with all the equipment necessary to help clients project to become a success. We provide unparalleled analytical support for research, development and commercial production of late stage intermediates and APIs, including pre-formulation studies to support drug product development. In addition to pre-formulation services, solid state and crystallisation services, and analytical support for physicochemical characterisation and method validation, CARBOGEN AMCIS offers a complete range of automated aseptic production of liquid and lyophilized sterile injectable drug products at our Saint-Beauzire site in France. Our specialty is the injectable space and the handling of complex compounds such as highly potent APIs, biological products and drug delivery. This site is exclusively dedicated to the development and the cGMP manufacturing to the fast supply of batches for clinical studies.

CARBOGEN AMCIS utilises the Shanghai manufacturing facility for manufacturing the intermediates for the final API, which gets manufactured in the Swiss facility. This facility is also cGMP approved and the plan is to make it equipped to manufacture the final API as well, which would act as a good alternate manufacturing site for the APIs manufacturing. CARBOGEN AMCIS utilises its UK facility as the one for manufacturing non-GMP intermediates and starting material, which again feeds into the Swiss facility for manufacturing the final API or gets shipped to the customer. The Companys facilities in India equips the Group with large-scale development and manufacturing capabilities, which ensures that the customer does not have to move outside the Dishman Group to get the large volume products developed and manufactured. Thus, the group acts like a one-stop shop for the development and manufacturing of APIs for all types of molecules. Moreover, the HiPo capabilities are unique to the group and differentiates it from its peers.

Financial Overview

Business Highlights (Standalone)

Particulars	2024-25	2023-24
Income
Revenue from Operations	399.84	327.35
Other Income	32.98	63.05
Total Income	432.82	390.40
EBIDTA	71.79	6.80
Depreciation	(65.20)	(101.61)
(Loss)/Profit before interest and taxes	39.56	(31.75)
Interest and other finance charges	(70.40)	(68.19)
(Loss)/Profit before tax and exceptional Items	(30.83)	(99.95)
Exceptional Items	-	(3.05)
(Loss)/Profit before tax	(30.83)	(103.00)
Tax Expenses	20.96	26.59
(Loss)/Profit after tax	(9.87)	(76.41)
Cash Profit	55.33	25.19
Business Highlights (Consolidated)		(D in Crores)
Particulars	2024-25	2023-24
Income
Revenue from Operations	2,711.50	2,615.77
Other Income	21.68	28.21
Total Income	2,733.18	2,643.98
EBIDTA	468.95	286.50
Depreciation	(293.74)	(310.86)
(Loss)/Profit before interest and taxes	196.88	3.85
Interest and other finance charges	(159.46)	(119.97)
(Loss)/Profit before tax and exceptional Items	37.42	(116.12)
Exceptional Items	(18.11)	(6.14)
(Loss)/Profit before tax	19.31	(122.26)
Tax Expenses	(16.07)	(31.19)
(Loss)/Profit after tax	3.24	(153.45)
Cash Profit	296.98	157.41

Net Revenue at 2,711.50 crores in FY25 as compared to 2,615.77 crores in FY24 increase by 3.66% YOY.

- CDMO revenue increased by 5.8% YOY which is driven by higher commercial revenue at Carbogen Amcis AG and India Marketable Molecules revenue decreased by 7% YOY due to lower sales of Quats & Generic revenue and Vitamin D analogue.

EBIDTA and Profit for the year increased by 63.7% and 102.1% respectively, due to improved margins in CDMO business and start of operations at france entity in financial year.

Increase in interest cost during the financial year, was primarily due to increase in interest indexes in europe due to inflation.

Key Financial Ratios

Standalone

Particulars	2024-25	2023-24
Debtors Turnover	2.23	1.98
Inventory Turnover2	2.63	1.86
Operating Profit margin (%)1	17.95%	2.08%
Net profit margin (%)1	-2.47%	-23.34%
Interest Service Coverage Ratio	1.58	1.61
Current Ratio	1.04	0.95
Net Debt-Equity Ratio	0.14	0.12
Return on Net Worth (%)1	-0.08%	-0.79%
Return of Capital Employed1	0.98%	-0.80%
1Profitability is improved due to higher margins in CDMO business, partially impacted by lower margin in MM business.
2Variance is primarily on account of increase in CDMO revenue from operation and decrease in the inventory due to effective management in managing the inventory.
Consolidated
Particulars	2024-25	2023-24
Debtors Turnover	4.72	4.87
Inventory Turnover	3.04	3.10
Operating Profit margin (%)1	17.29%	10.95%
Net profit margin (%)1	0.12%	-5.87%
Interest Service Coverage Ratio	3.12	2.75
Current Ratio^	1.14	1.14
Net Debt-Equity Ratio	0.26	0.27
Return on Net Worth (%)1	0.55%	-6.28%
Return of Capital Employed1	5.96%	0.12%

^Current ratio for FY 23-24 is calculated excluding debt reclassification effect of covenant breach in one of the subsidairies (Refer note 39)

1 EBIDTA and Profit for the year increased by 63.7% and 102.1% respectively, due to improved margins in CDMO business and start of operations at france entity in financial year.

Internal Control Systems

Your Company has established a robust system of internal control and internal audit, well-suited to its size, business complexity, and in line with the essential components of internal control as outlined in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting ("the Guidance Note") issued by the Institute of Chartered Accountants of India ("ICAI"). The internal control framework effectively addresses operational efficiency, financial reporting accuracy, and compliance with applicable laws and regulations, while safeguarding company assets, ensuring proper authorization and recording of transactions, and providing reasonable assurance on the integrity, reliability, and objectivity of financial information at an optimal cost. The Company continuously strengthens its control framework by introducing improved process controls, audit trails, and engaging external assurance services when required. Internal audits are conducted extensively by independent firms of chartered accountants in close coordination with the finance and accounts department. The audit findings are reviewed internally as well as by the Audit Committee of the Board, which assesses the adequacy and effectiveness of internal controls and recommends improvements where necessary. To further enhance governance, the Company has set up a dedicated control department responsible for implementing new controls, ensuring ongoing system reviews, and updating processes as needed. A well-defined delegation of authority is in place, with specific approval limits on revenue and expenditure, which are periodically reviewed and revised to support efficient decision-making in day-to-day operations as well as long- and short-term business planning. With the implementation of the upgraded S4 HANA platform, the Company has established stronger system controls to minimize deviations and exceptions. The focus is on business process re-engineering through the adoption of advanced technologies. Additionally, the Company has implemented a budget module that ensures robust budgetary controls, workflow-driven process automation, zero deviations, secure data management, and more informed decision-making.

Risk Management

Operating in global markets and developing products for regulated industries present significant challenges and risks for the Company. If not identified and addressed in a timely manner, such risks may adversely affect the achievement of business objectives and long-term sustainability. An effective risk management framework strengthens the Companys ability to proactively manage risks and seize opportunities by establishing mitigation strategies and monitoring them on a continuous basis. Our Enterprise Risk Management (ERM) framework covers identification, assessment, monitoring, and mitigation of risks that could impact key business objectives. Its primary purpose is to evaluate the magnitude of risks—both individually and collectively—so that management can focus on the most critical threats and opportunities while formulating effective response strategies. At Dishman, ERM is designed to minimise the adverse effects of risks on core objectives while enabling the Company to effectively leverage growth opportunities. The framework ensures that risks are identified in a timely manner, thereby safeguarding and creating value for stakeholders, including shareholders, employees, customers, regulators, and society at large. We have established an integrated risk management framework that enables systematic identification, assessment, prioritisation, mitigation, monitoring, and communication of risks across the organisation. Senior management personnel play an active role in this framework. Plant-level committees, led by senior management, meet regularly to identify and evaluate risks, set priorities, and design appropriate mitigation strategies. To strengthen this framework, the Company has also engaged independent professional firms for its implementation and periodic review of effectiveness. The Audit Committee of the Board reviews, on a quarterly basis, the adequacy and effectiveness of the Companys risk management framework and mitigation strategies. It also provides guidance to the Board on significant matters requiring attention. Risk registers are maintained, and detailed action plans are prepared and implemented to address identified risks.

Opportunities and Threats

Many innovator companies are currently grappling with the challenge of a shrinking research pipeline and the impending loss of patent protection for their blockbuster drugs in the coming years. The process of discovering new drugs is becoming increasingly difficult due to declining success rates and rising research and development costs. This situation has created opportunities for CDMO providers from cost-effective locations like India. Dishman recognized this opportunity early on and began collaborating with innovators on custom synthesis projects and contract manufacturing of APIs, which led to overall growth in turnover. Given the significant potential the CDMO sector offers to Indian companies, many large pharmaceutical firms in India have started exploring opportunities in this segment with substantial investments, which could lead to increased competition over time. However, Dishman has developed unparalleled research and innovation capabilities globally, providing it with a technical edge.

Additionally, there has been significant progress in the area of New Molecule Entities (NMEs). Much of the recent innovation in this field has come from "small to mid-sized" biopharmaceutical organizations. This shift has altered the business dynamics, as larger pharmaceutical companies are increasingly focusing on marketing and "finished dose form" production. The Company believes it can produce various APIs, intermediates, and specialty chemicals of superior quality at a lower cost. Many innovator companies are outsourcing their products to our Company. Recognizing this opportunity, the Company has continued to implement cost-reduction strategies by adopting lean manufacturing techniques and resource management initiatives, while also expanding its product range.

Information Technology

At Dishman Group, we are actively working towards the harmonization of systems and applications across all our subsidiaries. This strategic initiative aims to drive consistency, efficiency, and collaboration throughout the organization. Some key examples of this harmonization include:

SAP S/4HANA – We are in the process of implementing this robust ERP solution across the organization to unify and streamline business processes.

Success Factors – Our global HRMS platform, used to manage the complete employee lifecycle uniformly across the group.

Cognos – Our global financial consolidation tool, now being utilized across all subsidiaries to ensure consistent and accurate financial reporting.

Our vision is to operate on standardized platforms group wide. This approach not only leads to significant cost savings in licensing, implementation, and support but also fosters knowledge sharing and cross-functional support across entities. Moreover, it enables faster and more informed decision-making at the management level, powered by a unified and reliable set of data and insights from these integrated systems.

Industrial Relations and Human Resource Management

The company has continued its efforts to strengthen the HR activities through development of On-Boarding Module, Recruitment Module in SuccessFactors. HR Operations team initiated to replace finger Based biometric Machines to Face reading machines for effectively capturing Employee Attendance and the software is integrated with SuccessFactors.

Employee Engagement activities are focused on creating Bonding among employees and organization, mailers are sent across Dishman India locations on various health awareness tips, Motivating Quotes, Knowledge sharing, Festival Wishes etc. Team is working on second issue of In-house Magazine. Festival Celebrations are conducted across all units to keep employees happy. HR actively involved in making Memorandum of Understanding (MoU) with National level renowned institutions like NIPER, IIT for Innovation, Project-based support, Seminars related to Quality, Instrument Upgradation, Design and development of energy saving methods, Student and faculty exchange program. Interns are hired through this institute to work on our projects. During the year, the Company has also appointed senior personnel in Operations and Quality departments. Their Joining will further strengthen our Operations and Quality Departments. As of 31^st March, 2025, the Company had 1,106 employees on its roster. Industrial relations remain cordial.

Cautionary Statement

This document contains statements about expected future events, financial and operating results of Dishman Carbogen Amcis Limited, which are forward-looking. By their nature, forward looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the assumptions, predictions, and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual future results and events to differ materially from those expressed in the forward-looking statements. Accordingly, this document is subject to the disclaimer and qualified in its entirety by the assumptions, qualifications and risk factors referred to in the managements discussion and analysis of Dishman Carbogen Amcis Limiteds Annual Report, FY2025.