Dr Reddys Laboratories Ltd Management Discussions

Management Discussion and Analysis

Global Economic Outlook

As per the International Monetary Fund (‘IMF), the global economy remains resilient but increasingly exposed to geopolitical, trade and commodity-price shocks. In early 2026, IMF projected steady global growth of 3.3% in 2026 and 3.2% in 2027, supported by technology-led investment, accommodative financial conditions and private-sector adaptability. However, the Middle East conflict and related higher energy price uncertainty led IMF to moderate the 2026 outlook to 3.1%, while retaining a broader view of medium-term resilience. Global inflation is expected to rise to 4.4% in 2026 before easing to 3.7% in 2027, while world trade volume growth is projected at 2.8% in 2026 and 3.8% in 2027. India remains relatively well positioned, with growth projected at 6.5% in both 2026 and 2027, supported by resilient domestic momentum.

Global Pharmaceutical Market Outlook²

The global pharmaceutical industry continues to evolve amid rising healthcare needs, scientific advancement, pricing pressure, tariff-related uncertainties, evolving regulatory landscape, patent expiries, geopolitical uncertainty and increasing expectations around access and affordability. As per IQVIA, global medicine spending is expected to reach approximately US$ 2.6 trillion by 2030, growing at a 5 - 8% Compound Annual Growth Rate (‘CAGR), driven by wider use of innovative therapies, particularly in developed markets, and partly offset by loss of exclusivity and increasing adoption of generics and biosimilars (See Figure 1).

Innovation-led Growth

Innovation remains a key driver of industry growth, with IQVIA reporting 79 novel active substances (‘NAS) launched globally in 2025, and expecting a similar launch momentum over the next five years. As new sources of innovation emerge, particularly from markets such as China where biopharma deals are recording all-time highs, disciplined portfolio selection, strong partnerships and scalable commercialisation capabilities are becoming increasingly important.

Patent Cliff-led Opportunities

The industry is entering a significant loss-of-exclusivity cycle, with Evaluate projecting more than US$ 300 billion of drug sales at risk by 2030 (See Figure 2). As innovators turn to mergers and acquisitions (‘M&A) to replenish their pipeline, the same patent cliff is also creating meaningful opportunities for generic and biosimilar manufacturers, with complex product capabilities, strong regulatory execution, cost competitiveness and reliable global supply.

Biologics are becoming central to this opportunity, accounting for 57% of global prescription drug sales by 2030 as per Evaluate.

As more biologics lose exclusivity, biosimilars can improve affordability in high-cost therapies such as oncology and immunology. Evolving regulatory pathways, including the 2025 draft guidance by United States Food and Drug Administration (‘USFDA) allowing potential reduction of large comparative efficacy studies where robust analytical and pharmacokinetic data are available, could lower development costs and timelines, while increasing competition.

Glucagon-Like Peptide-1 (GLP-1) Therapies: Reshaping Metabolic Care

The GLP-1 therapies have emerged as one of the most significant shifts in global healthcare by redefining treatment for diabetes, obesity and related conditions, while opening opportunities for broader access as patent and regulatory pathways evolve. Evaluate expects GLP-1 therapies to grow at ~20% CAGR through 2030, accounting for nearly 9% of global prescription drug sales, with five of the top ten best-selling medicines by then. Semaglutide represents the first major near-term GLP-1 opportunity, with expected patent expiries in markets such as Canada, India, Brazil, Turkey and China creating potential for lower-cost competition and expanded access in this key metabolic therapy.

At Dr. Reddys, we are participating in this access opportunity starting with our generic semaglutide portfolio, becoming the first company to secure approval in India and Canada, followed by a Day 1 launch in India at market formation. Consistent with our focus on improving affordability in high-demand therapies, we aim to take this key therapy in metabolic health across several markets, subject to regulatory approvals and patent-expiry timelines.

Indias Role as a Global Supplier of Affordable

Medicines

The Indian pharmaceutical industry continues to reinforce its position as a major supplier of affordable generic medicines globally. Indias pharmaceutical exports crossed US$ 31 billion in FY2026, with formulations and biologicals contributing significantly to the export basket. As the third-largest producer of drugs by volume, India contributes around 20% of global generic drug exports. With the industry projected to grow at a 10% CAGR and reach US$ 130 billion by 2034, Indias cost-competitive manufacturing base, regulatory capabilities and supply scale continue to support its global relevance, even as expectations around quality, compliance and resilience rise.

Recent tariff developments in the United States (‘US) further underscore the US healthcare systems reliance on affordable generics, particularly from India, with generics reportedly remaining exempt from tariffs. Domestically, the Indian Pharmaceutical Market (‘IPM) remained resilient, growing 9.9% year-on-year in FY2026 as per IQVIA, supported by chronic therapy growth, new launches and improving healthcare access.

At Dr. Reddys, we are well placed to support continued access to affordable medicines in the domestic market as well as across developed and emerging markets, as a global Indian pharmaceutical company with broad manufacturing, regulatory and commercial capabilities.

Evolving Market Dynamics in the US

The United States remains the worlds largest pharmaceutical market and a critical market for Indian generic companies; however, it continues to be characterised by intense price competition, payer consolidation, regulatory scrutiny and increasing product complexity. The USFDAs Generic Drug User Fee Amendments (‘GDUFA) III framework aims to improve review efficiency and predictability, including for complex generics, favouring companies with strong compliance, differentiated capabilities and reliable supply execution.

Across the industry, companies are prioritising complex generics, biosimilars, differentiated formulations and platform-led capabilities to offset pressure in traditional oral solids and access higher-value opportunities.

At Dr. Reddys, our focus in the US remains on strengthening the portfolio through complex products, compliance excellence, cost leadership and reliable supply.

Consumer Health and Self-Care as Emerging Growth Areas

As healthcare systems face rising pressure from ageing populations, chronic disease burden, limited physician access and increasing costs, healthcare models are shifting from episodic treatment to a broader continuum of care spanning prevention, wellness, early intervention and everyday health management.

The over-the-counter (‘OTC) and broader consumer health markets are supported by higher health awareness, greater willingness to self-manage routine conditions and expanding access through pharmacy, digital and omnichannel models. For pharmaceutical companies, it offers an adjacent growth opportunity that complements prescription medicines, builds trusted brands, diversifies revenues and enables engagement beyond treatment into prevention and self-management.

At Dr. Reddys, our acquisition of Nicotine Replacement Therapy (NRT) products provides an anchor to build a global consumer health franchise, extending our role beyond prescription treatment into prevention, wellness and everyday health management.

Contract Development and Manufacturing

Organisation (‘CDMO) Opportunity and Partnering Models

The CDMO and pharmaceutical services landscape continues to benefit from innovator demand for reliable, high-quality development and manufacturing partners. Global biopharmaceutical companies are seeking partners with end-to-end capabilities, regulatory track record, cost competitiveness, speed-to-market execution and resilient supply networks. For Indian companies, the CDMO opportunity is supported by strong chemistry capabilities, manufacturing scale and the ability to serve global customers across development and commercial supply.

Through our wholly-owned subsidiary, Aurigene Pharmaceutical Services Limited (‘APSL) , we, at Dr. Reddys, are building an integrated discovery, development and manufacturing platform to serve innovator and biotech partners globally.

Digitalisation Across the Value Chain

Digitalisation, data analytics and artificial intelligence are becoming important enablers across Research and Development (‘R&D), manufacturing, quality and supply chain. McKinsey estimates that generative Artificial Intelligence (‘AI) could create US$ 4 - 7 billion of annual value in biopharma operations, through productivity gains, cost reduction, improved equipment effectiveness and quality enhancements. IQVIA also notes early evidence of productivity benefits in AI-enabled R&D, with Phase I success rates for emerging biopharma programmes at 75% over the last three years. AI is also becoming relevant in manufacturing and quality operations in predictive maintenance, process optimisation, batch record review, visual inspection, deviation analysis, and quality control automation. Industry reports indicate that pharma supply chains are moving from reactive monitoring to predictive intelligence, with AI and machine learning enabling demand sensing, inventory optimisation, disruption prediction, supplier risk assessment, route optimisation and cold-chain monitoring.

Geopolitical Disruptions and Supply Chain Resilience

Geopolitical developments, including the West Asia crisis and Red Sea corridor disruptions, have underscored the vulnerability of global supply chains to maritime chokepoints. For the pharmaceutical industry, such disruptions can affect lead times, freight costs, working capital, cold-chain planning and the availability of critical inputs such as Active PharmaceuticaI Ingredients (‘APIs), intermediates, excipients, packaging materials and devices.

For Indian pharmaceutical exporters, these risks reinforce the importance of supply chain resilience, alternate routing, prudent inventory planning, diversified sourcing and disciplined cost management, particularly given West Asias role in energy flows, shipping routes and trade connectivity with Europe, Africa and the Middle East.

At Dr. Reddys, our diversified manufacturing footprint, supply chain planning and agility, and focus on reliable, compliant supply help us manage disruption risks across freight, sourcing, energy and market access.

In summary, the industry outlook remains constructive but increasingly complex. Growth will be driven by innovation, chronic disease demand, biologics, biosimilars, complex generics, consumer health and emerging-market access. At the same time, companies will need to navigate pricing pressure, regulatory expectations, geopolitical disruption, input-cost volatility and the need for reliable, compliant supply.

For Dr. Reddys, these trends reinforce the relevance of its strategic theme of "Securing the core. Building the future.", strengthening the generics base while building long-term platforms in biosimilars, consumer health, innovation and pharmaceutical services.

Opportunities and Risks

Patent expiries creating opportunities for generics and biosimilars

Rising demand for affordable medicines in developed and emerging markets

Growth in complex products, biosimilars, consumer health and CDMO

Partnering opportunities with innovators seeking scalable access

Opportunities Risks

Pricing pressure in generics, especially in regulated markets

Regulatory scrutiny and increasing quality expectations

Geopolitical disruptions affecting freight, sourcing and energy costs

Rising competition in biosimilars as regulatory pathways become more streamlined

About our Company

Guided by our philosophy, ‘Good Health Cant Wait, Dr. Reddys Laboratories Ltd. (‘Dr. Reddys, ‘DRL, or ‘the Company) is a global pharmaceutical company committed to accelerating access to affordable and innovative medicines for patients worldwide.

Our approach translates scientific depth, operational excellence and responsible growth into delivering meaningful health outcomes.

We are an integrated, science-led and patient-centric pharmaceutical company, with 33 locations across manufacturing and R&D operations, enabling us to serve over 85 markets worldwide, supported by a diverse workforce of over 27,500 employees. Our end-to-end capabilities across R&D, manufacturing and commercialisation enable us to support diverse healthcare needs across geographies and therapy areas, while maintaining a consistent focus on quality, reliability and compliance.

Business Segments

We conduct our operations through the following business segments: Global Generics (‘GG), focuses on the development, manufacturing and commercialisation of branded and unbranded prescription medicines, aimed at addressing access and affordability challenges across developed and emerging markets. The segment also includes differentiated and complex offerings, such as biosimilars, peptides, injectables as well as consumer healthcare products and innovation-led offerings.

Our approach to portfolio expansion combines internal development, targeted in-licensing, acquisitions and partnerships to accelerate market entry, while also optimising risk.

Pharmaceutical Services and Active Ingredients (‘PSAI), is an end-to-end integrated platform, covering the full pharmaceutical value chain across manufacturing and marketing of APIs and intermediates; incremental value-added products, such as semi-finished and finished formulations as well as discovery and contract development and manufacturing operations through APSL, our wholly-owned subsidiary. PSAI leverages scalable supply, complex chemistry capabilities and competitive cost structures, serving both internal formulation requirements and external customers, including global innovators, biotechs and other generic formulators.

‘Others, includes revenues from our wholly-owned subsidiary, Aurigene Oncology Limited, which advances innovative oncology assets, as well as our Proprietary Products business that focuses on commercialising differentiated clinical stage biotech formulations through strategic partnerships.

Global Footprint

Dr. Reddys operates an integrated, global network of 24 manufacturing facilities and nine R&D facilities worldwide, with capabilities spanning APIs, oral solid dosage forms, and sterile injectables. Designed with scale, sustainability, and LEAN-led efficiency at its core, and supported by regulatory approvals in major developed and emerging markets, our operating model enables us to navigate increasing product complexity and serve global markets with consistency and reliability.

Our nine API manufacturing units across India, Mexico, United Kingdom (UK) as well as US offer capabilities across general, high-potency and specialised chemistries, supported by backward integration into key intermediates. Our formulations network comprises eight oral solid and topical units, three sterile injectable units as well as three biologics manufacturing units, enabling assured and reliable supply across a broad range of product categories. We also operate a manufacturing facility through a joint venture in China.

Our manufacturing and R&D activities are conducted in compliance with Current Good Manufacturing Practices (‘cGMP) and are supported by ‘Quality by Design principles and advanced digital and analytics-driven capabilities, enhancing productivity, quality, speed-to-market and consistency across the value chain.

Our continued focus on supply chain effectiveness, supported by our integrated demand-supply planning approach ensures reliable on-time, in-full (‘OTIF) delivery, enhances visibility, optimises inventories and enables timely response to market dynamics.

Access and affordability remain central to our strategy.

Our key markets include the United States, Europe, India, Russia, Commonwealth of Independent States (‘CIS) countries, Brazil, South Africa, Vietnam, China, and Colombia amongst others. Our portfolio and development efforts are concentrated in therapy areas characterised by long-term relevance and unmet need, including Oncology, Central Nervous System, Pain Management, Gastro-Intestinal, Cardiovascular, Respiratory, Anti-Infectives, Diabetology amongst others. By FY2026, Dr. Reddys reached over 699 million people globally, with a stated ambition to expand access to over 1.5 billion people worldwide by 2030.

Strategy

The continued emphasis on "Securing the core.

Building the future." reflects the consistency of our strategic direction, which involves balancing near-term execution with longer-term capability building.

Our strategy is underpinned by three core tenets:

• Strengthening market positions in selected therapies and geographies

• Driving operational excellence and continuous improvement to enhance productivity and capital efficiency

• Advancing innovation, enabled through platforms, partnerships and selective investments

The first two tenets align with ‘Securing the core and are focused on strengthening our legacy, generics businesses through disciplined execution, operational excellence and consistent delivery across markets where we have strong endowment, a proven execution track record and long-term growth potential. This includes reinforcing market positions in priority therapies and geographies by ensuring reliable supply and maintaining quality and compliance standards, while driving efficiencies and cost leadership.

The final tenet aligns with ‘Building the future and is anchored around developing future capabilities to build and scale our identified long-term growth drivers, namely biosimilars, consumer health and innovation-led offerings.

Our global Biosimilars capabilities extend our access and affordability philosophy beyond our established small-molecule generics portfolio, to large-molecule therapies as several biologics face loss of exclusivity over the coming years.

Our biosimilars business, reported within the GG segment, is a fully integrated organisation with over 25 years of experience, encompassing capabilities across development, manufacturing and commercialisation.

Our disciplined in-house portfolio strategy focuses on biosimilars with a clear right-to-win, characterised by limited competition and strong relevance in standard-of-care therapy areas such as Oncology and Auto-immune diseases. Internal development capabilities are further augmented through strategic collaborations to enhance portfolio depth and deployment portfolio (See Figure 3) comprises ~15 products, including eight commercial products, primarily marketed in India and Emerging Markets, with commercialisation underway in Europe through our own front-end commercial team. One of our products has also been commercialised in the US and in Europe through our partner. We are also advancing a robust pipeline across therapeutic areas of focus, with assets in various stages of development for global commercialisation.

To support global expansion, we have expanded manufacturing capacity at our Bachupally facility in Hyderabad, which includes six drug substance plants and two drug product plants, and have additionally leased a drug substance manufacturing facility in Hyderabad.

Figure 3: Our Biosimilars Portfolio

Product	Therapeutic Area	Presence
		Regulated Markets	Emerging Markets
Rituximab	Oncology	Awaiting approval in the US	Commercial
		Approved in Europe and UK
Bevacizumab	Oncology	Commercial in UK	Commercial
Pegfilgrastim	Oncology	Commercial in US and Europe through partner	Commercial
Trastuzumab	Oncology	-	Commercial
Darbepoetin	Anaemia	-	Commercial
Filgrastim	Oncology	-	Commercial
Denosumab	Osteoporosis/Oncology	Filed in US, Commercial in Europe	-
Pertuzumab	Oncology	-	Commercial in India; Filed in select countries in Emerging Markets
Abatacept	Rheumatoid arthritis	Filed in US (Intravenous) and Under development for Europe and US (Subcutaneous)	Filed in India
Daratumumab	Oncology	Under development for US and Europe	-
Ustekinumab	Anti-inflammatory	-	Under development for South Asia and Colombia
Golimumab	Anti-inflammatory	-	Under development for South Asia
Pembrolizumab	Oncology	Under development for US and Europe	Under development
Nivolumab	Oncology	-	Filed in India
Secukinumab	Anti-inflammatory	-	Under development for South Asia

The global consumer health business enables us to support individuals across the continuum of care - from prevention and wellness to the management of everyday health needs - alongside treatment through our existing portfolio of prescription medicines.

Our consumer health business, revenues of which are reported under the GG segment, primarily comprises a portfolio of leading brands outside the United States in the NRT category, acquired in 2024 (the ‘Acquired NRT Business).

The portfolio is anchored by Nicotinell^?, supported by strong local market-leading brands including Nicabate^? (Australia), Thrive^? (Canada) and Habitrol^? (New Zealand and Canada). The brands have a presence across over 30 countries spanning Europe, Asia (including Japan), and Latin America, and are offered in multiple formats, including lozenges, patches and gums, with additional products in the pipeline. Operations have been largely transitioned from the seller, Haleon plc, to Dr. Reddys through a phased integration approach, aimed at ensuring continuity.

The acquired portfolio serves as a platform and anchor for building a global consumer health franchise of the Company.

Our innovation efforts are focused on addressing unmet medical needs, in addition to furthering our purpose of access and affordability, through differentiated and patient-relevant solutions to patients who would otherwise have no/limited access to such therapies.

Our Innovation Portfolio primarily comprises novel products and advanced therapies, accessed through global partnerships with innovators, to serve underserved markets. We leverage our global footprint, commercial capabilities and deep value chain relationships, reinforcing our role as a ‘partner-of-choice for innovator companies seeking access at scale. This partnership-led approach through in-licensing, co-development and strategic partnerships, enhances portfolio depth, accelerates development timelines, provides access to differentiated platforms and technologies, while maintaining capital discipline and enabling efficient risk sharing.

Revenues from commercialised products are reported under the GG segment within respective geographies.

Sustainability is embedded into our strategic and operational decision-making, shaping how we innovate, manufacture and govern, while aligning business growth with societal and environmental responsibility. Together, these elements guide our progress towards long-term aspirations around sustained growth, robust returns, and expanded global reach, while creating enduring value for stakeholders.

Dr. Reddys Performance Update, FY 2026

FY2026 demonstrated a resilient performance, amid product-specific headwinds and several one-off impacts. We reported highest-ever revenues, supported by double-digit growth in the underlying base business. We continued to scale our established base business, strengthen our commercial capabilities, selectively invest in building a differentiated pipeline as well as expanding manufacturing capacities, while driving efficiencies across operations. We secured approvals for our key products, generic semaglutide, an important therapy in metabolic health, in India and launched the product on Day 1 of its market formation upon loss of exclusivity. We continue to advance the product in several other markets, in line with our strategy and subject to regulatory approvals. During the year, we also made meaningful progress on our stated future growth drivers of biosimilars, consumer healthcare as well as innovation.

Consolidated revenues in FY2026 were 335.9 billion, a growth of 3% compared to the previous year. The revenue growth was impacted by lower lenalidomide sales as well as a one-time shelf stock adjustment (‘SSA) of 4.53 billion related to the product. This impact was partially offset by double-digit growth in the underlying base business, supported by contributions from the Acquired NRT Business, as well as favourable foreign exchange movements.

Revenue from GG in FY2026 was 299.0 billion, a growth of 3% compared to the previous year. This was largely on account of robust performance witnessed across most key geographies, except North America that was impacted by lower lenalidomide sales and the one-time SSA, indicated earlier; further aided by contribution of the Acquired NRT Business.

In FY2026, GG contributed to around 89% of our Companys overall sales. Some key highlights of the segment for the year were:

• A total of 220 products were launched across geographies in FY2026.

• A total of 212 global filings were done in FY2026.

Some key updates for the segment during the year were:

• Filed the Biologics License Application (‘BLA) for the Intravenous (‘IV) presentation of our abatacept biosimilar candidate in the US in December 2025, which was subsequently accepted for review by the USFDA.

• Received European Commission (‘EC) approval and marketing authorisation from Medicines and Healthcare products Regulatory Agency (‘MHRA) in UK for partnered biosimilar, denosumab. Launched the product in Europe starting December 2025.

• Expanded partnership with Alvotech to co-develop, manufacture and co-commercialise pembrolizumab, a biosimilar candidate to Keytruda^? for global markets.

• Expanded partnership with Bio-Thera Solutions through an exclusive commercialisation and licence agreement for proposed biosimilar Secukinumab for select countries in Southeast Asia.

• Entered into an exclusive in-licensing for

Pertuzumab with Qilu Pharmaceutical for

Latin American, Central American and Caribbean markets.

• Extended partnership agreement with Prestige Biopharma for Trastuzumab for additional territories in Latin America.

• Received recommendation from Subject Expert Committee (‘SEC) for the manufacturing and commercialisation of nivolumab biosimilar in India.

• Received a Complete Response Letter (‘CRL) for rituximab biosimilar BLA, in reference to the ongoing resolution of observations arising from the Pre Approval Inspection (‘PAI) of our Biologics facility at Bachupally, Hyderabad, Telangana, India conducted in September 2025, as well as certain aspects pertaining to the BLA. Further, received a Post- Application Action Letter (‘PAAL) from USFDA, in relation to the response submitted to the aforesaid mentioned observations related to rituximab biosimilar. We continue to work on resolving the same.

• Received a CRL from the USFDA for denosumab biosimilar BLA, developed by our partner, Alvotech, referring to the observations from a pre-license inspection of Alvotechs Reykjavik manufacturing facility.

Advancing innovation through novel biologics:

• Received acceptance for review of Investigational New Drug (‘IND) application for COYA 302, an Investigational Combination Therapy for treatment of Amyotrophic Lateral Sclerosis (‘ALS), marking continued progress of our exclusive partnership with Coya Therapeutics for its development and commercialisation.

In FY2026, our largest market, NAG, contributed to 38% of our Companys GG sales and 34% of overall sales.

Revenue from the region for FY2026 was 113.7 billion or approximately US$ 1.2 billion, representing a decline of 22% over the previous year. The decline was largely on account of lower sales of lenalidomide and the one-time SSA, indicated above.

Some key updates for the segment during the year were:

• Launched sacubitril valsartan tablets, generic version of Entresto^? indicated for heart failure management in the US.

• Launched partnered product, fluorouracil cream, as an authorised generic of Extrovis AGs CARAC^? in the US.

• First-to-market launch of olopatadine hydrochloride ophthalmic solution, in the US.

• Launched 25 new products in the region.

• Filed 15 new Abbreviated New Drug Applications (‘ANDAs) with the USFDA.

• Cumulative ANDA filings as of March 31, 2026 is 347.

• As of March 31, 2026, we had 77 generic filings pending approval from the USFDA. These comprise of 75 ANDAs and two New Drug Applications (‘NDAs) filed under the Section 505(b)(2) route of the US Federal Food, Drug, and Cosmetic Act. Of the 77 filings pending approval, 44 are Paragraph-IV (‘Para-IV) applications, including one

NDA, and we believe that 22 of these have the ‘First to File (‘FTF) status.

• Received a Notice of Non-Compliance from Pharmaceutical Drugs Directorate in Canada for Semaglutide injection, during the year, outlining requests for additional information and clarifications on specific aspects of our submission. After the close of the fiscal year FY2026, a Notice of Compliance was received, making our Company the first to be approved in Canada for generic Semaglutide.

Outlook for North America Generics Business

We continue to focus on a balanced mix of complex product portfolio, including peptides, injectables, drug device combinations, potential first-to-market opportunities as well as Branded Over-the-counter products. We continue to invest in the biosimilars space, which remains a key growth driver in the future. We continue to balance portfolio gaps through inorganic opportunities, while also focusing on cost leadership.

Revenue from Emerging Markets for FY2026 was 67.6 billion, an increase of 23% as compared to the previous year. The growth was driven by market share gains, contributions from new product launches as well as favourable foreign exchange movements. In FY2026, Emerging Markets contributed to 23% of our GG sales, making it the second largest geography within the segment and 20% of our overall sales.

Some key highlights of the segment for the year were:

• Launched Skorolox, first International Nonproprietary Name (‘INN) loxoprofen in Russia for treatment of acute upper respiratory tract infections and indicated for musculoskeletal & postoperative pain.

• Partnered with Theramex to license linzgolix, used in the treatment of uterine fibroids in adult women, for Russia, CIS countries and Romania.

• Launched toripalimab in Australia as the first and only immunotherapy for a rare and aggressive type of head and neck cancer listed on Pharmaceutical Benefits Scheme, as well as in Russia, after the successful launch in India.

• Launched K-CAB, i.e. tegoprazan, a partnered, patented molecule indicated for acid-related gastrointestinal diseases, in Russia under the brand name, ‘Tegoprex^?, after a successful launch in India.

• Collaborated with Immutep for commercialisation of a novel, immunotherapy oncology drug, eftilagimod alfa, in key markets outside North America, Europe, Japan, and Greater China. Following an interim Phase III futility analysis, the trial for non-small cell lung cancer study has been discontinued.

• Launched a total of 129 new products across various countries within the segment this year.

Revenue from Russia for FY2026 was 34.8 billion, representing an increase of 34% over the previous year. However, in local currency (‘Russian Rouble) terms, there was an increase of 15% over the previous year. The growth in local currency terms was largely attributable to higher volumes and price increases in certain brands. IQVIA ranked us 16^th in terms of sales value in Russia for the twelve months ended March 31, 2026.

Revenue from CIS countries and Romania for FY2026 was 9.1 billion, representing an increase of 2% over the previous year. The benefit of higher pricing and contribution from new launches were partially offset by lower sales volumes.

Revenue from our Rest of the World markets (which includes Brazil, South Africa, Vietnam, China, Colombia and several other markets) for FY2026 was 23.7 billion, representing an increase of 19% over the previous year. The increase is largely attributable to higher sales volumes as well as new products launched during the year, partially offset by price erosion across markets.

Outlook for Emerging Markets Business

We will continue to strengthen market share in selected therapy areas by scaling ‘Mega Brands across prescription and OTC segments and with a steady cadence of new launches, supported by sales and marketing excellence. Our focus remains on scaling key markets such as Russia and Brazil, while expanding into new geographies by leveraging our global portfolio of generics, peptides and biosimilars, alongside selective in-licensing. We are building a differentiated pipeline of first-to-market products focused on oncology and cardio-metabolic therapies, such as semaglutide, biosimilars and New Chemical Entities (‘NCEs)/New Biological Entities (‘NBEs) through partnerships, while systematically building our capabilities to effectively commercialise these products.

Revenue from India in FY2026 was 62.2 billion, a growth of 16% compared to the previous year. In FY2026, India contributed to 21% of our global generics sales, making it the third-largest geography within the segment and 19% of our overall sales. Growth was driven by revenues from new launches, including the innovation franchise and acquired portfolios, along with price increases and higher volumes.

As of March 31, 2026, we had a total of 530+ branded products in India and a field force of over 8,100 sales representatives (excluding those on contract) to promote our product portfolio. According to IQVIA in its report for the 12-month period ended March 31, 2026, our secondary sales grew by 12.1%, faster than the market growth at 9.9%. Our market rank was 10th in terms of sales value as per the same report.

Aligned with our strategy, we continued to leverage our core endowments to scale our mega brands, introduce differentiated and innovative assets, and expand our consumer health and nutrition portfolio, supported by a disciplined focus on productivity to drive sustainable growth and to further strengthen our position in the Indian Pharmaceutical market.

Some key highlights of the segment during the year were:

• Recorded sustained double-digit growth through

FY2026, supported by growth in big brands, new product introductions including licensed innovative assets and acquisitions, and strong commercial execution across therapy areas, outperforming the IPM.

• Launched Indias first Drugs Controller General of India (‘DCGI) approved generic semaglutide for Type-2 Diabetes on Day 1 of market formation in India.

• Received marketing authorisation for generic Semaglutide tablets in India for treatment of Type 2 diabetes from DCGI, following the recommendation of Subject Expert Committee under Central Drugs Standard Control Organisation.

• Entered the anti-vertigo segment through the acquisition of the Stugeron^? portfolio, including leading local brands across 18 markets in the Asia-Pacific and Europe, Middle East, and Africa regions, with India and Vietnam as key markets for US$ 50.5 million.

• Forayed into Hormone Replacement Therapy segment in India through the acquisition of trademarks, Progynova^? and Cyclo-Progynova^?, and related assets for India from Mercury Pharma Group Limited for US$ 32.15 million.

• Expanded collaboration with Sanofi to launch ^TM (Nirsevimab), a novel drug for preventing Respiratory Syncytial Virus in India.

• Launched Tegoprazan, a partnered, patented molecule indicated for acid-related gastrointestinal diseases, in India under the brand name, ‘PCAB^?.

• Launched Linaclotide, a novel drug for Chronic Constipation management in adults, in India under the brand name, ‘Colozo^?.

• Launched Sensimune in India, an immunotherapy product for house dust mite-induced allergies, in partnership with ALK-Abell?.

• Launched Hevaxin^?, a novel, recombinant vaccine for the prevention of Hepatitis-E virus infection in India.

• Launched TPGS docetaxel, an innovative form of docetaxel, licensed from Therdose, used to treat various forms of cancer.

• Licensed picankibart, indicated for moderate to severe plaque psoriasis, from Innovent in China.

• Divested two non-core brands and discontinued certain R&D programs in Chimeric Antigen Receptor T-cell (‘CAR-T) therapy as part of portfolio prioritisation.

• Launched 28 new brands in the country.

• 15 brands are among the top 300 brands of the Indian pharmaceuticals market such as Mintop, Bro-Zedex, Cidmus, Vantej, etc.

• 23 of our brands had revenues in excess of 1 billion in FY2026 as per IPM data.

Building a GLP-1 ecosystem:

Our Day-1 entry into Indias GLP-1 receptor agonist therapy space with Obeda^?, the countrysfirst -approved generic semaglutide, is anchored in an end-to-end care ecosystem approach, encompassing in-house development and manufacturing capabilities, robust clinical evidence and comprehensive patient support. Backed by a head-to-head Phase III study with 312 participants demonstrating non-inferior efficacy and comparable safety to the innovator, Obeda ^? reinforces the Companys depth in complex product development and peptide science. Introduced in patient-friendly, once-weekly injectable formats at an accessible price point, Obeda^? supports Dr. Reddys broader pursuit of building a comprehensive GLP-1 portfolio for metabolic disorders, including diabetes and obesity. Beyond the drug, the ecosystem integrates:

Outlook for India Business

We remain focused on scaling our ‘mega brands to enhance our leadership in priority therapies through disciplined product management, lifecycle extensions, sharper sales execution and focused omnichannel go-to-market actions. We shall continue to drive differentiation through first-to-market and early-to-India launches of novel, high-value innovative therapies from in-house development and selective in-licensing.

We shall continue to grow consumer-centric brands, supported by our association with Nestl? Health Science and to expand modern trade, e-commerce and alternative channels. Productivity will continue to be an enabler. We plan to achieve this by strengthening efficiency, prioritisation and execution quality to build resilience and enable sustained, market-beating growth.

Revenue from Europe in FY2026 was 55.5 billion, representing a growth of 55% over the previous year. The increase in revenues was propelled by contributions from the recently Acquired NRT Business, growth in sales volume and new product launches across our major markets, which was partially offset by price erosion in some of our generic products. Excluding revenues from the Acquired NRT

Business, revenue growth was 14% over the previous year.

In FY2026, Europe contributed to 19% of our GG sales and 17% of our overall sales.

Some key highlights of the segment for the year were:

• Integration of the acquired NRT Business largely completed; ~95% completed as on March 31, 2026.

• Launched 38 new generics products (excluding the recently acquired NRT business) across countries within the segment.

Outlook for Europe Business

We remain focused on expanding access to affordable generics and biosimilars across European markets.

We have a robust pipeline across multiple therapy areas, including a balanced mix of Intellectual Property (‘IP)-driven Day-1 launches, low-competition opportunities, and high-volume commodity products, particularly in cardiovascular and Central Nervous System therapies.

Products are sourced through a combination of in-house development and manufacturing, as well as partnerships with high-quality suppliers, ensuring consistent quality and cost-effective access.

For our global consumer healthcare business, the year ahead is positioned as a phase of stabilisation, post integration of the NRT business and lay the foundation for long-term growth and scale. As part of this journey, we are sharpening our brand growth strategy around a focused set of value-creation levers over the coming years:

• Strengthening brand equity through targeted advertising and promotional initiatives.

• Accelerating the introduction of differentiated and consumer-relevant innovations.

• Scaling our presence across priority markets.

• Pursuing selective inorganic opportunities to build a more robust global consumer health platform.

The PSAI business recorded revenues of 34.7 billion in FY2026, an increase of 3% compared to the previous year. In FY2026, PSAI contributed to 10% of our overall sales. This increase was largely on account of new APIs launched during the year as well as growth in our CDMO business, in the backdrop of pricing pressure and elevated external cost volatility.

Some key highlights of the segment during the year were:

• Partnered with Unitaid, the Clinton Health Access Initiative (‘CHAI), and Wits Reproductive Health and Human Immunodeficiency Virus (‘HIV) Institute (‘Wits RHI) to make HIV prevention tool, Lenacapavir, affordable in 120 low- and middle-income countries.

• Signed non-binding strategic co-operation term sheet with Hybio Pharmaceutical on Peptide APIs.

• Enabled a first-to-launch oncology product in Japan, among the earliest oral solid products developed and manufactured in India for the Japanese market.

• Partnered with Global Antibiotic Research and Development Partnership (‘GARDP) on zoliflodacin for novel treatment of drug-resistant gonorrhoea.

• APSL, our CDMO business, served as the exclusive API manufacturer for two of 46 novel drugs approved by USFDA in 2025.

• APSL delivered three discovery programs through its in-house, AI-assisted drug discovery platform, ‘Aurigene.AI.

• Filed 128 drug master files (‘DMFs) globally in FY2026, of which 16 were in the US. Cumulatively, our total active DMFs filed worldwide as of March 31, 2026 were 1,748, including 280 active DMFs filed in the US.

Partnering to improve Access and Affordability

In 2025, Dr. Reddys entered into a landmark agreement with Unitaid, CHAI and Wits RHI to expand access to injectable lenacapavir, an HIV prevention therapy originally developed by Gilead Sciences. Dr. Reddys will manufacture and supply a high-quality generic version at ~US$ 40 per person per year across 120 low- and middle-income countries from 2027, aligning its cost with oral alternatives. Despite a nearly 40% reduction in new HIV infections since 2010, an estimated 1.3 million new infections were reported globally in 2024, underscoring the continued need for effective prevention solutions. As a twice-yearly injectable with strong efficacy, lenacapavir offers a meaningful option for populations facing challenges with daily oral regimens.

Outlook for PSAI

• We continue to scale complex and value-added portfolios across geographies, strengthen differentiated platforms - including peptides, oncology and advanced manufacturing - and deepen high-quality development partnerships.

While pricing pressure and input-cost volatility may persist, our focus remains on improving cost competitiveness and ensuring reliable, compliant supply.

• For our CDMO business, we remain committed to offering an integrated suite of services that supports the efficient and timely development and commercialisation of new medicines. We aim to be a partner of choice for global pharmaceutical companies, underpinned by leadership in cost and service.

Others

Others segment recorded revenues of Rs. 2.1 billion in FY2026, at a similar level as the previous year.

In FY2026, this segment contributed to 1% of our overall sales. Around three-fourths of the segments revenues is contributed by AOL, while the remaining is from the proprietary products business, including milestone income on out-licensed products.

Quality Update

At Dr. Reddys, we uphold a rigorous, patient-centric quality culture, anchored in a strong organisational mindset and a sustained commitment to excellence, supported by continued investments in our people, systems, and infrastructure.

Our focus is on building quality into products and processes from the outset through sound design principles and disciplined manufacturing practices, rather than depending solely on documentation or post-production testing.

In addition, every product undergoes extensive testing prior to release, and our global pharmacovigilance programme provides ongoing oversight of the safety and performance of our marketed portfolio.

We strive towards continually enhancing our Quality Management Systems (‘QMS) by simplifying and streamlining our procedures. In FY2026, we have made significant strides in integrating digital technologies and Al into our QMS to enable real-time, data-driven decision making. We continue to focus on building robust, digitally-enabled systems to ensure the highest standards of quality and customer service.

Our efforts to upskill and train our employees, with best-in- class tools and literature, continue to enable them to adhere to the high quality benchmarks that we are committed to.

All our facilities operate to globally recognised cGMP standards and are strengthened by advanced digital tools, analytics, and risk-based quality frameworks.

The compliance status of our manufacturing sites has ensured timely approvals and launches as well as uninterrupted supply of safe, effective, and high-quality medicines to patients worldwide.

Digital Transformation Update

We continue to advance our digital transformation agenda through a structured and integrated approach, aligned with our organisational priorities of operational excellence, strengthening competitiveness, and enhancing patient outcomes.

Our digital platforms are increasingly supporting commercial growth, R&D productivity, and manufacturing efficiency Building on the digital transformation efforts over the years, our strategic areas of focus during FY2026 were:

• Process Redesign: Re-engineering and digitising core processes as well as embedding Al-led interventions across the value chain

• Scaling Al & Analytics: Expanding Al-led insights

• Low-Touch Operations: Driving automation and exception-based workflows

• Future-Ready Capabilities: Building technology and talent to support evolving business needs

• Digital Foundations: Strengthening infrastructure, data governance, and enterprise architecture

Internal assessments and external benchmarking indicate that our digital maturity remains aligned with leading global organisations, supported by adherence to frameworks including National Institute of Standards and Technology (‘NIST), International Organization for Standardization (‘ISO), Sarbanes-Oxley Act (SOX) compliance frameworks.

As we look ahead, our focus will continue to remain on expanding process excellence and Al-enabled capabilities, increasing adoption and execution discipline to drive faster, insight-led decisions and sustained value creation for stakeholders.

To read more about our digitisation initiatives, please refer to Page 21 of our Integrated Report.

People Update

During FY2026, we continued to strengthen organisational effectiveness by closely aligning talent, capabilities, and execution with our strategic priorities. Our focus remained on enhancing execution discipline, building future-ready skills, and leadership depth across levels to support sustained growth, while navigating increasing scale and business complexity. During the year, we made steady progress in enhancing leadership and critical talent readiness, strengthening role-to-value alignment, and improving organisational agility to drive productivity and speed. We also advanced digital enablement and learning initiatives, while furthering our transition towards a ‘role-based, skills-first organisation, supporting scalable operations and more effective workforce deployment. In parallel, we reinforced our commitment to inclusive growth and a strong, values-led culture, supporting business continuity, mitigating people and execution risks, and ensuring consistent performance across markets.

To read more about our detailed people practices and initiatives, please refer to Page 41-47 of our Integrated Report.

Financial Update

Table 1 gives the abridged IFRS consolidated revenue performance of Dr. Reddys for FY2026 compared to FY2025. Table 2 gives the consolidated income statement.

Table 1: Consolidated Revenue Mix by Segment

							(In million)
	FY2026			FY2025
	US$	(Rs.)	%	US$	(Rs.)	%
Global Generics	3,187	299,033	89.0	3,086	289,552	88.9	3
North America	1,212	113,737	33.9	1,547	145,164	44.6	(22)
Emerging Markets*	721	67,608	20.1	584	54,771	16.8	23
India	663	62,186	18.5	573	53,734	16.5	16
Europe*	592	55,501	16.5	382	35,882	11.0	55
PSA I	371	34,774	10.4	361	33,846	10.4	3
Others	23	2,127	0.6	23	2,137	0.7	(0-5)
Total	3,580	335,933	100.0	3,469	325,535	100.0	3

*Europe primarily includes Germany, the UK, Italy, France and Spain as well as the acquired NRT business. *Emerging markets refer to Russia, other CIS countries, Romania and Rest of the World markets.

Table 2: Consolidated Income Statement (In million, except Earnings per Share (‘EPS))

Particulars	FY2026			FY2025		Growth %
	US?	(Rs.)	70	us$	(Rs.)	%
Revenues	3,580	335,933	100.0	3,469	325,535	100.0	3
Cost of Revenues	1,691	158,669	47.2	1,440	135,107	41.5	17
Gross Profit	1,889	177,264	52.8	2,030	190,428	58.5	(7)
Operating Expenses
Selling, General & Administrative expenses	1,138	106,763	31.8	1,000	93,870	28.8	14
Research and Development expenses	256	24,058	7.2	292	27,380	8.4	(12)
Impairment of non-current assets	38	3,519	1.0	18	1,693	0.5	108
Other operating expenses/ (income)	(81)	(7,627)	(2.3)	(46)	(4,358)	(1.3)	75
Results from operating activities	539	50,551	15.0	766	71,843	22.1	(30)
Finance expense/(income), net	(44)	(4,132)	(1.2)	(50)	(4,724)	(1.5)	(13)
Share of loss/(profit) of equity accounted investees, net of income tax	(1)	(134)	(0.0)	(2)	(217)	(0.1)	(38)
Profit before income tax	584	54,817	16.3	818	76,784	23.6	(29)
Income tax expense	132	12,351	3.7	208	19,539	6.0	(37)
Profit for the period	453	42,466	12.6	610	57,245	17.6	(26)
Attributable to:
Equity holders of the parent	457	42,850	12.8	603	56,544	17.4	(24)
Non-controlling interests	(4)	(384)	(0.1)	7	701	0.2	(155)
Diluted Earnings Per Share (EPS)	0.55	51.42		0.72	67.78		(24)

Revenues

Revenues grew by 3% to Rs. 335,933 million in FY2026. The revenue growth was impacted by lower lenalidomide sales as well as a one-time SSA related to the product, as indicated earlier. This impact was partially offset by healthy growth in the underlying base business, supported by contributions from the Acquired NRT Business, as well as favourable foreign exchange movements.

Gross Profit

Gross profit decreased by 7% to Rs. 177,264 million in FY2026. This led to a gross profit margin of 52.8% in FY2026, representing a decrease of 573 basis points compared to the previous year. The gross profit margin for GG was 56.7%, while for the PSAI business, the gross profit margin was 17.2%. The decline was primarily due to reduced sales of Lenalidomide, price erosion in North America and Europe Generics, adverse product mix, lower operating leverage in PSAI and a one-time SSA impact of Rs. 4,530 million, indicated earlier, as well as a one-time provision related to the impact of changes in employee benefit obligations under the new Labour Codes in India (New Labour Codes Provision) of Rs. 412 million.

Selling, General, and Administrative (‘SG&A) Expenses

SG&A expenses increased by 14% to Rs. 106,763 million in FY2026. The increase was mainly attributable to focused sales and marketing investments to reinforce existing brands and scale new initiatives, including the Acquired NRT business, together with higher personnel expenses. SG&A also included a one-time provision related to a potential Value Added Tax (VAT) liability as well as a one-time New Labour Codes provision. SG&A accounted for 31.8% of revenues in FY2026.

Research and Development expenses

R&D expenses decreased by 12% to Rs. 24,058 million in FY2026. The decrease is primarily on account of lower spend in biosimilars, given large part of the spend was completed for a key asset. Developmental efforts continue in a focused manner to build a healthy pipeline of complex products, including peptides, as well as biosimilars across our markets. The R&D spend also included a one-time New Labour Codes Provision as well as one-time charges related to certain discontinued CAR-T assets. R&D accounted for 7.2% of revenues in FY2026.

Impairment of Non-Current Assets

In FY2026, there was a charge of Rs. 3,519 million on impairment of non-current assets, in comparison to Rs. 1,693 million in the previous year. The charge in FY2026 was related to impairment of certain intangibles due to challenging market conditions, trial discontinuation of a partnered product etc. resulting in lower recoverable value compared to the carrying value.

Net Other Operating Income

In FY2026, net other operating income was Rs. 7,627 million, versus Rs. 4,358 million in the previous year. This increase was primarily on account of income from divestment of certain non-core product related intangibles i.e., trademarks and marketing rights of Rs.1,890 million as well as one-time reversal in liabilities associated with the discontinuation of a pipeline product.

Net Finance Income

Net Finance Income was Rs. 4,132 million in FY2026, versus Rs. 4,724 million in FY2025. The decrease was largely on account of lower foreign currency exchange gain in comparison to FY2025.

Profit before tax

Profit before tax decreased by 29% to Rs. 54,817 million in FY2026, versus Rs. 76,784 million in FY2025.

This represents a margin of 16.3% of revenues versus 23.6% in FY2025.

Net Profit

Net Profit decreased by 26% to Rs. 42,466 million in FY2026, versus Rs. 57,245 million in the previous year. This represents a margin of 12.6% of revenues versus 17.6% in FY2025.

The effective tax rate was lower at 22.5% for FY2026 on account of the recognition of a previously unrecognised deferred tax asset on operating tax losses, during the year ended March 31, 2026, reversal of deferred tax on indexation of land during the year ended March 31, 2025 and an increase in the proportion of the Companys profits coming from lower tax jurisdictions and a decrease in the proportion of profits from lower tax jurisdictions for the period ended March 31, 2026, as compared to the period ended March 31, 2025.

Profit aftertax attributable to the equity holders of the parent company was Rs. 42,850 million for the year ending March 31, 2026, representing 12.8% of our total revenues for such period.

Liquidity and Capital Resources

Net Cash generated from operating activities in FY2026 was Rs. 56,755 million. Net outflow due to investing activities amounting to Rs. 65,513 million in FY2026 includes acquisitions, net investment in property, plant, equipment, and intangibles to build capacity and capabilities for future business growth. Cash inflow from financing activities during the fiscal was Rs. 8,290 million. Closing cash and cash equivalents on March 31, 2026, was Rs. 15,368 million. The data is given in Table 3.

Table 4 represents the consolidated working capital as on March 31, 2026 and March 31, 2025.

Table 3: Consolidated Cash Flow:

		(in Rs. million)
Particulars	FY2026	FY2025
Opening Cash and Cash Equivalents	14,593	7,107
Cash flows from:
(a) Operating Activities	56,755	46,428
(b) Investing Activities	(65,513)	(58,077)
(c) Financing Activities	8,290	18,911
Effect of exchange rate changes	1,243	224
Closing Cash and Cash Equivalents*	15,368	14,593

*Closing cash balance adjusted for Bank Overdraft of Rs. 61 million for year ended March 31, 2025.

Table 4: Consolidated Working Capital

			(in Rs. million)
Particulars	As on March 31, 2026	As on March 31,2025	Change
Trade Receivables (A)	101,219	90,420	10,799
Inventories (B)	76,531	71,085	5,446
Trade Payables (C)	33,411	35,523	(2,112)
Working Capital (A+B-C)	144,339	125,982	18,357
Other Current Assets (D)	124,225	88,607	35,618
Total Current Assets (A+B+D)	301,975	250,112	51,863
Short & Long-term loans and borrowings, current portion (E)	65,138	38,902	26,236
Other Current Liabilities (F)	69,017	55,967	13,050
Total Current Liabilities (C+E+F)	167,566	130,392	37,174

Debt-Equity

In FY2026, long-term borrowings, including the current and non-current portion, increased by Rs. 9,485 million, net as compared to FY2025. On March 31, 2026, our Companys debt-to-equity ratio was 0.20, which is higher than that on March 31, 2025, which was at 0.14. Table 5 below gives the data. The net debt-to-equity position was at (0.09) versus (0.07) last year.

Table 5: Debt and Equity Position

			(in Rs. million)
Particulars	As on March 31, 2026	As on March 31, 2025	Change
Total Shareholders Equity	380,457	337,166	43,291
Long-term debt (current portion)	6,003	857	5,146
Long-term debt (non-current portion)	12,203	7,864	4,339
Short-term borrowings	59,135	38,045	21,090
Total Debt	77,341	46,766	30,575

Internal Controls

Our Company has in place an established, robust system of internal controls commensurate with the nature, size and complexity of its business. These controls are designed to provide reasonable assurance with regard to the orderly and efficient conduct of operations, safeguarding of assets, accuracy and completeness of accounting records, amongst others. The internal control framework is supported by well-defined policies and procedures, process automation, employee training and appropriate segregation of duties.

Our internal audit function acts as an independent assurance and advisory function, responsible for evaluating and improving the effectiveness of our Companys risk management, internal control and governance processes.

The Audit Committee of the Board oversees the adequacy and effectiveness of internal controls and periodically monitors the performance of the internal audit function through review of audit plans, significant audit findings and the status of remediation actions.

Further, the Statutory Auditors also review the internal control systems, as considered necessary, to determine the audit procedures required for opining on the financial statements of our Company.

To read more about our internal control systems, please refer to Page 235 of our integrated report.

Enterprise-wide Risk Management (‘ERM) Update Our ERM framework is designed to systematically identify, evaluate and address key sectoral, operational, strategic and business risks. The function works closely with cross-functional teams and continuously tracks emerging industry developments to ensure a comprehensive view of the risk landscape.

Risks identified across the organisation are consolidated and classified into defined categories, spanning preventable internal risks, strategic organisational risks and risks influenced by external environments.

The ERM function partners with assurance, business and operations teams to develop and implement appropriate mitigation measures.

The Executive Risk Management Committee, constituted under the Companys Risk Management Policy, provides management-level oversight and guidance. It supports the prioritisation of enterprise-wide risks and steers mitigation actions

At the Board level, the Audit Committee and the Risk Management Committee supervise the effectiveness of the overall risk management framework and review the assessment and management of key risks

During FY2026, our risk assessment and

• mitigation efforts remained focused on areas such as global trade dynamics, product-related considerations, intellectual property, cybersecurity, data security and privacy, ethics and compliance, quality, regulatory and safety, among others, as well as emerging risks emanating from geopolitical tensions, which continue to influence the external risk environment.

To read more about our ERM governance, please refer to Page 86 of our integrated report and Page 163 for our Business Responsibility and Sustainability Report.

Environmental, Social and Governance (‘ESG) Update

Our approach to sustainability is anchored in driving positive social impact by advancing patient health outcomes globally through access to affordable and innovative medicines, cultivating a diverse, inclusive and equitable workplace, embedding environmental priorities in our operations, and maintaining high standards of responsible business conduct.

In FY2026, we made steady progress against our 12 stated ESG goals, particularly across our climate and access priorities. We increased our adoption of renewable energy to 78% from 68% in the previous year, while carbon neutrality in direct operations improved to 72% from 60%. Further, we surpassed our access goal of 40% first-to-market launches in priority markets, achieving 43% in FY2026 compared with 29% in the previous year, underscoring our focus on bringing affordable, differentiated products to patients faster.

Building on the near-term science-based targets announced in October 2020 and aligned with the latest Science Based Targets initiative (SBTi) guidance, this year, we strengthened our climate ambition by adopting science-based near- and long-term targets aligned to a Net Zero pathway. During FY2026, these targets were formally validated by the SBTi and include:

An 80% reduction in absolute Scope 1 and Scope 2 emissions by FY2030 from the FY2023 base year, along with a 51.6% reduction in Scope 3 emissions intensity (value added in Rs.) over the same period.

A 90% reduction in absolute Scope 1, Scope 2 and Scope 3 emissions by FY2045, relative to the FY2023 base year.

Achieving Net Zero greenhouse gas emissions across the value chain by FY2045.

To read more about the mitigation strategy for our updated material risks and opportunities, please refer to Page 163 of our Business Responsibility and Sustainability Report.

To read more about our ESG progress, programmes, and impact, please refer to the Strategic Review section on Page 24 onwards of our Integrated Report.