Emcure Pharmaceuticals Ltd Management Discussions

The global economy remained resilient over the past year despite a dynamic macroeconomic environment shaped by shifting trade policies, geopolitical tensions and uneven regional growth patterns. The global economy expanded by 3.4%¹ in 2025, supported by easing inflation and continued investments in digital technologies. Businesses remained focussed on strategic spending, with technology investments increasingly directed towards productivity enhancement, operational efficiency and measurable business outcomes.

In early 2026, geopolitical developments in West Asia have led to volatility in energy markets and global trade flows, resulting in fluctuations in oil and gas prices and higher input costs across industries. While these developments, including the blockade of the Strait of Hormuz, have created inflationary pressures and impacted investment sentiment in certain regions, global economies continue to demonstrate resilience. Reflecting these evolving conditions, the International Monetary Fund (IMF) marginally revised its global growth forecast for 2026 to 3.1%¹, with growth expected to improve slightly to 3.2%¹ in 2027. Economic trends across major regions are expected to remain mixed, shaped by geopolitical developments, trade realignments, inflationary pressures and supply chain challenges.

The United States (US) is projected to remain relatively resilient, with growth estimated at 2.3%¹ in 2026 and 2.1%¹ in 2027, supported by Artificial Intelligence (AI)-led productivity improvements and stronger supply chain stability. The European Union (EU) is expected to witness a gradual recovery, with growth of 1.1%¹ expected in 2026 and 1.2%¹ in 2027, driven by continued investments in clean energy and digital transformation initiatives. China is projected to moderate from 5.0%¹ growth in 2025 to 4.4%¹ in 2026 and further to 4.0%¹ in 2027, amid ongoing trade and geopolitical pressures, continued weakness in the property sector and softer consumer demand. However, investments in advanced manufacturing and renewable energy are expected to provide some support to growth.

Despite near-term uncertainties, continued investments in technology, digital transformation, clean energy and infrastructure are expected to support economic activity and long-term growth across major economies.

INDIAN ECONOMY

The Indian economy remained resilient during the year, supported by strong domestic consumption, continued policy reforms, rising investments and steady growth in the manufacturing sector. Indias real Gross Domestic Product (GDP), based on 2022-23 as the base year, grew by 7.6%² in FY 2025-26, up from 7.1%² in FY 2024-25, highlighting its position among the worlds fastest-growing major economies.

The Government and the Reserve Bank of India (RBI) continued to support economic growth through tax rationalisation, liquidity measures and monetary easing, helping the economy manage external challenges and market volatility. During the year, the RBI reduced the Repo Rate by a cumulative 125 basis points from 6.50%³ to 5.25%³ and adopted a neutral policy stance in June 2026.

Trade relations strengthened during the year under review as India advanced economic and strategic engagements with several global partners. Progress in India-US tariff negotiations supported deeper collaboration in biopharmaceutical innovation, digital health and research & development. India also advanced its trade discussions and agreements with the European Union, the United Kingdom and New Zealand, supporting stronger bilateral cooperation, increased crossborder investment and improved supply chain integration.

INDUSTRY OVERVIEW Global Pharmaceutical Market

The global pharmaceutical industry entered a pivotal phase in 2025, supported by scientific advancements, evolving regulatory and policy frameworks and shifting market dynamics. The global pharmaceutical market reached approximately USD 1.7⁴ trillion in 2025, growing by 10%⁴ year over year (YoY), reflecting steady expansion over the past five years, driven by innovation, increasing healthcare access, rising chronic disease prevalence and growing demand for specialty therapies.

The United States continued to dominate the global pharmaceutical market, accounting for nearly 53%⁴ of total sales in 2025, up from 49%⁴ in 2021, highlighting its continued leadership in innovation-driven therapies and high-value biologics. Europe remained relatively stable at 24%⁴, while Japan accounted for around 3%⁴. Emerging markets across Latin America, Asia-Pacific (APAC), the Middle East & Africa, and the Rest of the World collectively continued to strengthen their contribution, supported by improving healthcare infrastructure, higher pharmaceutical penetration, and rising healthcare spending.

Global pharmaceutical growth is increasingly concentrated in a few high-impact therapeutic areas. Oncology remains the leading driver, supported by sustained innovation in immuno-oncology, targeted therapies and precision medicine. Immunology is also a key growth pillar, driven by the increasing use of biologics for chronic autoimmune conditions. Metabolic disorders, particularly diabetes and obesity, are among the fastest-growing segments, supported by increasing disease prevalence and breakthrough glucagon-like peptide-1 (GLP-1) therapies. Cardiovascular therapies continue to grow at a steady but moderate pace, with innovation partially offsetting generic erosion. The central nervous system segment is gradually recovering, supported by new treatments in Alzheimers disease and psychiatric disorders, while rare diseases continue to generate high-value growth through gene and orphan therapies. Infectious diseases and vaccines have stabilised post-COVID, with growth driven by routine immunisation and targeted antiviral innovation.

Within this broader landscape, obesity treatments have become a major focal point in 2026, particularly GLP-1 receptor therapies, which are expanding beyond weight management into cardiovascular, renal and sleep-related indications. The year has also been marked by key developments, including the launch of newer oral GLP-1 therapies, expanded reimbursement coverage in major markets and increased generic competition following semaglutide patent loss of exclusivity in select geographies, including India. Around 63⁵ drugs are expected to face patent expirations between 2026 and 2027, further opening opportunities for generic entry. In parallel, ongoing progress in biologics, long-acting injectables and multi-target therapies, supported by AI-driven drug discovery and the growing use of cost-efficient manufacturing ecosystems, is strengthening the global pharmaceutical innovation pipeline.

Innovation in areas such as antibody-drug conjugates, bispecific antibodies, Chimeric Antigen Receptor (CAR-T) therapies and radioligand therapies is reshaping oncology treatment paradigms. Combined with improved access, sustained Research & Development (R&D) investment and evolving pricing structures, these trends are expected to support a more balanced and resilient growth trajectory for the global pharmaceutical industry. Looking ahead, developed economies are expected to remain the primary growth engines of global market growth, driven by continued uptake of new therapies and increased utilisation of existing branded medicines, partially offset by ongoing patent expiries. The global pharmaceutical industry may see some impact from proposed US tariff measures on patented and specialty drugs, especially for products manufactured outside the US However, generic medicines and biosimilars are expected to remain largely unaffected, helping maintain access to affordable medicines.

Global Specialty Pharmaceuticals Industry

The specialty pharmaceuticals market includes orphan drugs, gene therapies and precision medicines targeting complex conditions such as oncology, autoimmune and Central Nervous System (CNS) disorders. Fuelled by continuous innovation and growing demand for advanced treatments, the market was valued at USD 311.7⁶ Bn in 2024 and is projected to grow from USD 326.5⁸ Bn in 2025 to USD 519.8⁶ Bn by 2035, at a Compound Annual Growth Rate (CAGR) of 4.8%⁶.

Regionally, North America remains the leader, with the market expected to grow from USD 170.8⁶ Bn in 2024 to USD 284.0⁶ Bn by 2035. Europe follows, expanding from USD 70.0⁶ Bn to USD 115.0⁶ Bn, while Asia-Pacific rises from USD 40.7⁶ Bn to USD 76.0⁶ Bn, supported by increased healthcare investment and improved access to advanced therapies. South America and the Middle East & Africa are also on a steady upward trajectory, projected to reach USD 26.0⁶ Bn and USD 19.0⁶ Bn, respectively, by 2035.

Indian Pharmaceutical Industry

The Indian pharmaceutical industry is one of the fastest- growing segments of the global healthcare sector and plays a vital role in the international pharmaceutical supply chain. The Indian pharmaceutical industry, ranked third globally by volume and 11^th by value, is supported by a large and highly fragmented ecosystem comprising more than 3,000 pharmaceutical companies and around 10,500 manufacturing facilities.

Commonly referred to as the Pharmacy of the World, the Indian pharmaceutical industry was valued at USD 60 Bn⁷ in FY 2024-25 and is expected to nearly double to USD 130 Bn⁸ by 2030. The growth will be driven by a few key structural and demographic factors, such as rising healthcare awareness, increasing incidence of chronic and lifestyle diseases and sustained demand for medicines and healthcare solutions.

The Jan Aushadhi scheme is improving access to affordable medicines by expanding the availability of low-cost generic drugs across rural and semi-urban areas.

Industry Structure

The Indian pharmaceutical sector is broadly divided into two segments: Active Pharmaceutical Ingredients (APIs or bulk drugs) and Formulations. APIs are the key raw materials used in the manufacture of medicines, while formulations comprise finished dosage forms such as tablets, capsules, injectables and syrups. Both segments cater to branded and generic markets, reflecting the broad and diversified nature of the pharmaceutical industry.

API

India hosts around 500⁸ API manufacturers, contributing nearly 8%⁸ of global API production as of March 2026. The Indian API market, valued at USD 14.2⁸ Bn in 2025, is projected to reach USD 22.2⁸ Bn by 2031, supported by technology adoption, manufacturing efficiencies and increasing localisation efforts.

Formulations

The formulations market is broadly classified into chronic and acute therapy segments.

• Chronic therapies include long-term treatments for lifestyle-related diseases such as cardiovascular disorders, diabetes, respiratory ailments and neurological conditions.

• Acute therapies primarily address short-term illnesses and include anti-infectives, gastrointestinal treatments and pain management products.

Over the past decade, the Indian pharmaceutical industry has steadily shifted towards chronic therapies, driven by rising life expectancy, rapid urbanisation, evolving lifestyles and the increasing burden of non-communicable diseases. This trend continued in FY 2025-26, with strong growth in Cardiac, Anti-Diabetic and Respiratory therapies, reflecting

the sustained expansion of lifestyle- and chronic disease- driven treatment segments.

The therapy landscape in FY 2025-26 continued to demonstrate the depth and resilience of the pharmaceutical market, with demand led by chronic therapies and supported by broad-based growth across key acute segments. Cardiac therapy remained the largest, at INR 343.6 Bn, with a 13.4% share, followed by gastrointestinal and anti-infective therapies, which together accounted for over one-third of the market.

Looking ahead, the Indian Pharmaceutical Market is expected to maintain healthy growth momentum over FY 2026 - FY 2029, with chronic therapies projected to outpace overall industry growth. Cardiac and anti-diabetic therapies are expected to remain the fastest-growing segments with a 10.0%-11.0% CAGR, while respiratory and vitamins/minerals are projected to grow at 9.0%-10.0% and anti-infectives at 7.5%-8.5%. The Gynaecology segment is projected to grow at 8.5%-9.5% CAGR, increasing its market share from 4.8% in FY 2025-26 to 5.1% by FY 2028-29.

IPM - Therapy-wise Revenue, Growth and Outlook

Therapy	FY 2025-26 (in INR Bn)	FY 2025-26 Share	FY 2029E Share	YoY Growth FY 2025-26	CAGR FY 2022-2026	CAGR FY 2026-2029E
Cardiac	343.6	13.4%	13.4%	14.3%	11.2%	10.0% - 11.0%
Gastro Intestinal	266.9	10.4%	10.5%	6.5%	8.9%	8.5% - 9.5%
Anti-Infectives	264.8	10.3%	10.7%	4.8%	4.9%	7.5% - 8.5%
Anti-Diabetic	232.5	9.1%	9.5%	12.2%	8.3%	10.0% - 11.0%
Respiratory	206.0	8.0%	8.4%	11.8%	6.1%	9.0% - 10.0%
Vitamins/Minerals/Nutrients	201.2	7.8%	8.0%	9.9%	7.3%	9.0% - 10.0%
Pain / Analgesics	200.3	7.8%	7.7%	7.9%	9.0%	7.5% - 8.5%
Derma	174.3	6.8%	6.6%	6.8%	7.3%	7.5% - 8.5%
Neuro / CNS	155.8	6.1%	6.0%	10.6%	9.9%	8.0% - 9.0%
Gynaec.	123.4	4.8%	5.1%	8.8%	8.8%	8.5% - 9.5%

Generics

The Indian domestic market has about 60,000⁸ generic brands across 60⁸ therapeutic categories. Within the broader generics segment, branded generics remain a key driver, supported by physician-led prescribing and rising demand for chronic therapies for diabetes, cardiovascular and neurological conditions. Injectables have gained traction alongside oral formulations, while government support for affordable access to healthcare and biologics continued to aid growth.

The growing demand for GLP-1 receptor agonists, supported by the rising prevalence of type-2 diabetes and obesity, is expected to create incremental growth opportunities for the Indian pharmaceutical industry, including for generic formulations. The Indian GLP-1 market is expected to grow from INR 10-12 Bn in 2025 to INR 45-50 Bn by 2030, supported by the rising prevalence of diabetes and obesity, improving affordability and increasing patient awareness.

Patent expiries to boost generics market

A significant number of pharmaceutical products are expected to witness patent expiries over the coming years, creating opportunities for the introduction of generic alternatives. The availability of lower-cost generic formulations is expected to improve the affordability and accessibility of treatment, while also increasing competition within the pharmaceutical market.

In March 2026, the patent for semaglutide, a GLP-1 receptor agonist, expired in India, prompting several pharmaceutical companies to launch generic equivalents. The introduction of these more affordable alternatives is expected to enhance access to treatment for patients suffering from Type-2 diabetes and obesity. In addition, 15¹⁰ blockbuster drugs worth around USD 112.0¹⁰ Bn going off patent between 2023 and 2029 will create significant opportunities for generic pharma companies.

Pharma Exports

India is the largest global supplier of generic medicines, accounting for around 20% of global supply. As of 31 March 2026, India ranked 11^{th 8} by value in global pharmaceutical exports, with exports reaching 191^s countries, supported by sustained demand for affordable generic medicines in regulated and emerging markets. Pharmaceutical exports have grown significantly from USD 1.9⁸ Bn in FY 200001 to USD 30.5⁸ Bn in FY 2024-25 and to USD 31.1⁹ Bn in FY 2025-26, highlighting Indias emergence as a major global supplier of medicines. Growth was supported by strong demand for generic formulations, bulk drugs, vaccines and biosimilars across key markets such as the US, Europe, Africa and other emerging economies. India continues to strengthen its position as a global supplier of affordable, high-quality medicines, backed by its cost-efficient manufacturing base and regulatory capabilities. Indian pharmaceutical exports are also expected to benefit from a strong pipeline of patent expirations across key regulated markets, particularly the United States and Europe. These patent cliffs are creating significant opportunities for Indian manufacturers to expand their presence in the generic drugs segment by introducing cost-effective alternatives.

At the same time, pharmaceutical companies are investing in local manufacturing capabilities for critical raw materials. Technologies such as AI and 3D printing are helping improve drug development and manufacturing processes, while faster and simpler global certification procedures are making it easier for companies to access international markets.

Key Growth Drivers and Trends

Growing prevalence of chronic diseases and an ageing population are driving long-term healthcare demand	Strong manufacturing capabilities and generic leadership support global competitiveness	Increasing focus on specialty drugs, biologics and biosimilars is driving value-led growth
AI, automation and Pharma 4.0 technologies are improving efficiency across the value chain	Upcoming patent expirations in small molecules and biologics are creating growth opportunities for generic and biosimilar manufacturers across global markets	Digital health platforms and e-pharmacies are improving access and patient reach
Growing presence across emerging markets is creating new export opportunities	API backward integration to reduce import reliance	PLI schemes, bulk drug parks and API initiatives are strengthening domestic manufacturing
	Focus on Tier-II, Tier-III and rural markets, while broadening distribution and sales reach to tap underpenetrated areas

GOVERNMENT INITIATIVES

Global Policy Environment Opportunity for Indian

Companies

The Policy developments in the US and EU are increasingly focussed on making pharmaceutical supply chains more resilient, diversified and efficient. In the US, steps to reduce dependence on any single region and simplify regulatory approvals are encouraging greater sourcing from compliant manufacturers. India holds a significant share of US- referenced API Drug Master Files and generic supplies, reinforcing its position as a trusted and reliable partner. In the EU, initiatives such as the Critical Medicines Act and broader regulatory reforms aim to strengthen supply security and improve access, creating additional opportunities for EU-Good Manufacturing Practices (GMP) compliant Indian companies.

Indian Policy Environment^{12 13 14}

Indias policy environment continues to support the pharmaceutical industry through stable regulations, better infrastructure and a strong focus on quality and innovation. The Production Linked Incentive (PLI) Scheme for pharmaceuticals and bulk drugs is encouraging domestic production of APIs and Key Starting Materials (KSMs), helping reduce dependence on imports, especially from China, and strengthening supply chains.

The Union Budget FY 2026-27 enhances sectoral growth through higher allocations to healthcare, medical education and research, along with measures such as rationalising customs duties on select medicines to support domestic manufacturing and encourage innovation. At the same time, government-led initiatives such as the Biopharma SHAKTI programme, the National Biopharma Mission and the Promotion of Research and Innovation in Pharma (PRIP) scheme are building a stronger ecosystem for biologics, vaccines, diagnostics and med-tech, while encouraging collaboration between industry, start-ups and research institutions.

Healthcare infrastructure is also being strengthened through programmes such as the PM Ayushman Bharat Health Infrastructure Mission and Pradhan Mantri Swasthya Suraksha Yojana (PMSSY), which are enabling the addition of new hospitals, the upgradation of medical colleges and the expansion of critical care facilities, thereby improving overall access to and the quality of healthcare delivery.

Stricter Schedule M compliance is likely to increase fixed costs and operational complexity, which may put pressure on smaller pharma players that lack scale, capital and advanced quality systems. Higher requirements for GMP upgrades, documentation, validation and data integrity could reduce their cost competitiveness and accelerate industry consolidation. In contrast, large, organised pharma companies are better placed due to their existing global GMP-compliant facilities, stronger regulatory capabilities and the ability to absorb compliance costs. This creates higher barriers to entry, supports export-readiness and strengthens the competitive advantage of established players.

COMPANY OVERVIEW About the Company

Emcure Pharmaceuticals Limited ("Emcure" or "the Company"), headquartered in Pune and incorporated in April 1981, has grown into one of Indias leading pharmaceutical companies. Emcure develops, manufactures and markets a diverse range of products globally, with core strengths in formulations and a complementary presence in APIs and Contract Research and Manufacturing Services (CRAMS). From its roots in branded generics, the Company has progressively expanded into specialty segments - including complex chemistry and biologics.

With a presence over 80 countries, specifically in the EU, Canada and Emerging Markets (EMs), Emcure operates at the intersection of scientific innovation and rising global demand for specialty treatments. Womens health remains a strategic priority for Emcures India business, backed by strong brands and differentiated therapies. The Companys market leadership in India is reflected in 19 of its top 20 brands ranking among the top three in their respective therapy areas.

Emcure has introduced several first-in-India and globally innovative products covering womens health, cardiovascular, neurology,oncology, vaccines, anti-infectives and dermatology. Its differentiated pipeline, early-mover advantage and strategic focus on specialty and complex therapies position the Company well for sustainable growth and long-term value creation.

Emcure Key Highlights FY 2025-26

INR 92,035 Mn	44%	56%	INR 1,000 Mn / INR 500 Mn
FY 2025-26 Revenue from Operations	Domestic Revenue Contribution	International Revenue	Contribution 10 / 32 Brand Families above
19 / 20	#2	80+	#13
Top Brands Ranked Top 3 in Therapy Areas	Rank in Gynaecology (India)	Countries of Global Presence	Rank by Market Share in India
~50%	900+
Domestic Revenue from Complex Products	Products Launched Globally		* As per IQVIA FY 2025-26

In FY 2025-26, Emcure deepened its in-licensing strategy through exclusive commercialisation partnerships with leading global innovators. In collaboration with Sanofi, the Company took on marketing rights for oral anti-diabetic brands Amaryl and Cetapin in India, with Sanofi retaining manufacturing responsibilities while Emcure uses its domestic distribution and field force capabilities to broaden patient access. Emcure also partnered with Novo Nordisk to commercialise and distribute Poviztra (semaglutide 2.4 mg/ml injection) for chronic weight management, establishing a meaningful presence in Indias fast-growing obesity therapeutics market.

During FY 2025-26, Emcure acquired the remaining 20.4% stake in Zuventus Healthcare, thereby making it a wholly-owned subsidiary. Internationally, the Companys European subsidiary, Tillomed Laboratories, strengthened its generics portfolio through the acquisition of select assets from Manx Pharma, including marketing authorisations, intellectual property rights, product dossiers and inventory.

R&D

At Emcure, research and development remains central to how we sustain therapeutic relevance and prepare for the next phase of growth. Over time, innovation has supported leadership in selected therapies, enabled first-to-market opportunities and strengthened our ability to enter newer segments. Emcures medium- to long-term pipeline comprises differentiated and complex products, including complex chemistry, biologics, novel drug delivery systems (NDDS), complex injectables, including long-acting injectables (LAIs) and Antibody-Drug Conjugates (ADCs), underscoring a strong focus on innovation-driven growth.

DOMESTIC BUSINESS

Emcure holds a commanding position in the domestic market, ranking second in the gynaecology segment in India, with domestic revenues of INR 40,270 Mn, contributing 44% of consolidated revenues in FY 2025-26. The Company also maintains leadership across several other therapeutic segments. Approximately, half of Indias revenues were generated from complex and differentiated products - including biotherapeutics, injectables, iron formulations, chiral molecules and photochemistry-based therapies - underscoring the Companys deliberate focus on high-value, specialised medicines.

The Companys growth strategy is anchored by a specialised organisational structure that prioritises in-house pipeline development, in-licensing collaborations and disciplined execution. Over the next two financial years, Emcure plans several key product launches while deepening its presence in high-growth areas, including consumer healthcare and dermatology. Strategic partnerships with Sanofi and Novo Nordisk continue to strengthen the domestic portfolio, with Poviztra (semaglutide injection for chronic weight management) being a notable recent addition. Several established brands individually generate over INR 1,000 Mn in annual revenue, underpinned by sustained growth in chronic therapies and a consistent cadence of new launches.

Emcure is expanding its super-specialty footprint in renal, oncology and CNS segments, while advancing pipeline candidates in ophthalmology and oncology - including bevacizumab. The dermatology portfolio is being broadened across both prescription and cosmo-derma categories. In FY 2025-26, the Company entered the consumer health and wellness space, leveraging its science-based capabilities. Early traction from the Galact and Arth supplement range signals growing demand for preventive health intervention solutions and Emcure is investing in brand building, innovation and digital capabilities to build a scalable Over the Counter (OTC) and wellness platform.

INTERNATIONAL BUSINESS

Emcure has a well-established international presence over 80 countries, with 900+ products launched globally. In FY 2025-26, international operations accounted for ~56% of total revenue, with Europe contributing 20%, Canada 16% and the Rest of the World 20%. Approximately, 30% of international revenue was derived from complex products, reflecting the Companys strategic focus on differentiated, high-value therapies.

The international business delivered strong performance revenue growth of 22.2% in FY 2025-26, with growth across all regions. Europe posted a strong 25.5% growth, led by the Manx portfolio rollout and Amphotericin B launches. Canada recorded a healthy 18.7% YoY growth, while the Rest of the World (RoW) grew 21.8% YoY, driven by both Antiretroviral medication (ARV) and non-ARV segments.

Canada: Emcures Canadian business ranks among the top 10 generic pharmaceutical players and is the largest India- headquartered pharma company by prescriptions in the country. Operating in a USD 11.2 Bn addressable market, the Company has a pipeline of 50+ products, including first- generic launches planned for eight near-term molecules - covering Amantadine capsules, Treosulfan and Treprostinil injections, Amphotericin B formulations and semaglutide injectables, among others.

Europe: Emcures European business is driven by differentiated growth catalysts, most notably the launch of liposomal Amphotericin B, the first generic entry into an innovator market approximately USD 270 Mn. Through subsidiary Tillomed Laboratories, the acquisition of the Manx Pharma portfolio has added 120+ marketing authorisations, nearly half of which are yet to be commercialised.

RoW: The RoW business combines a strong ARV order book and a next-generation HIV pipeline with expanding non-ARV revenues from complex injectables and biosimilar launches. The portfolio targets a USD 2 Bn+ addressable market, leveraging Emcures expertise in differentiated, high-value therapies. The Non-ARV business is at an inflexion point, led by key product launches comprising a portfolio of complex injectables and biosimilars.

Emcure maintains balanced momentum in domestic and international markets, supported by a differentiated portfolio and an established leadership presence in key therapeutic areas. A robust pipeline of complex and advanced products - spanning biologics, novel drug delivery systems and next- generation injectable therapies - further strengthens the foundation for sustainable, long-term growth.

FINANCIAL OVERVIEW

The consolidated financial performance of the Company for the financial year ended 31 March 2026, in relation to its operational results, is presented below:

Consolidated Income Statement

(INR Mn except %)

Particulars	FY 2025-26	FY 2024-25	YoY Growth (%)
Revenue from Operations	92,035	78,960	16.6
Gross Profit	55,465	47,494	16.8
Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA)	17,886	14,689	21.8
Profit Before Tax (PBT)	12,871	9,713	32.5
Profit After Tax (PAT)	9,413	7,075	33.1

For FY 2025-26, Emcure reported growth across key financial metrics. Revenue increased from INR 78,960 Mn in FY 2024-25 to INR 92,035 Mn in FY 2025-26, representing a growth of 16.6% led by robust performance in International markets. EBITDA rose from INR 14,689 Mn to INR 17,886 Mn and PBT grew from INR 9,713 Mn to INR 12,871 Mn, led by productivity enhancement and scaling of in-house products. PAT increased from INR 7,075 Mn to INR 9,413 Mn, reflecting a consistent improvement across the Companys financial performance.

Consolidated Balance Sheet

(INR Mn)

Particulars	FY 2025-26	FY 2024-25
Total Assets	96,125	82,327
Net Worth / Equity	49,767	46,416
Total Liabilities	46,358	35,912

Total assets stood at INR 96,125 Mn in FY 2025-26, up from INR 82,327 Mn in FY 2024-25, reflecting the Companys investment in growth initiatives and operational scale-up. Net worth increased to INR 49,767 Mn from INR 46,416 Mn, indicating strengthening shareholder value and accretion to retained earnings. Total liabilities stood at INR 46,358 Mn, up from INR 35,912 Mn in the previous year, driven by increased borrowings resulting from the Manx acquisition and the Zuventus consolidation.

Consolidated Cash Flow Statement

(INR Mn)

Particulars	FY 2025-26	FY 2024-25
Cash flows from operating activities	9,435	8,517
Cash flows from investing activities	(11,931)	(940)
Cash flows from financing activities	3,434	(8,140)

Cash flows from operating activities stood at INR 9,435 Mn in FY 2025-26, up from INR 8,517 Mn in FY 2024-25, indicating sustained operational liquidity. Cash outflows from investing activities were INR 11,931 Mn, compared with INR 940 Mn in the previous year, reflecting the Companys capital allocation to strategic growth initiatives. Cash flows from financing activities were INR 3,434 Mn, compared with an outflow of INR 8,140 Mn in FY 2024-25, due to increased borrowings resulting from the Manx acquisition and Zuventus consolidation.

Consolidated Working Capital

(INR Mn)

Particulars	FY 2025-26	FY 2024-25
Inventories	23,978	19,318
Trade Receivables	25,627	20,022
Trade Payables	18,078	14,796
Net Working Capital	31,527	24,545

Emcures working capital position remained robust in FY 2025-26. Inventories stood at INR 23,978 Mn compared to INR 19,318 Mn in FY 2024-25, while trade receivables stood at INR 25,627 Mn versus INR 20,022 Mn in the previous year. Trade payables stood at INR 18,078 Mn, compared to INR 14,796 Mn in FY 2024-25, while net working capital increased to INR 31,527 Mn from INR 24,545 Mn, in line with the Companys business growth during the year and supported by effective management of short-term assets and liabilities to maintain operational liquidity.

Key Change in Significant Financial Ratios

The key financial ratios for FY 2025-26, along with comparative figures for the previous financial year and reasons for significant changes, are presented below:

Ratio	Formula	FY 2025-26	FY 2024-25	Reason for Significant Change
Debtors Turnover Ratio	Revenue from operations (excluding other operating revenue) * Average trade receivables	4.0x	4.0x	Remained largely stable, reflecting stable receivables management aligned with sales growth.
Inventory Turnover Ratio	Cost of goods sold * Average inventory	1.7x	1.8x	Decline driven by higher inventory build-up for growth, launches and consolidation impact.
Interest Coverage Ratio	EBITDA * Interest expense	12.4x	8.4x	Improved due to stronger EBITDA and stable finance costs.
Current Ratio	Current assets * Current liabilities	1.4x	1.7x	Lower due to higher current liabilities from acquisitions and working capital requirements
Debt-Equity Ratio	Total debt * Total equity	0.2x	0.2x	Increased in debt due to Manx acquisition and Zuventus consolidation
Operating Profit Margin	EBITDA * Net sales	19.4%	18.6%	Better operating leverage
Net Profit Margin	Profit for the year * Net sales	10.2%	9.0%	Better operating leverage
Return on Networth Ratio	Profit attributable to owners * Networth attributable to owners	18.7%	15.3%	Better operating leverage

BUSINESS OUTLOOK

Emcure is expected to sustain a steady medium-term growth trajectory, supported by both domestic and international businesses, with international growth outpacing domestic growth and driving overall expansion. The domestic formulations segment is expected to grow faster than the overall industry. Growth will be driven by cardio-metabolic, womens health, oncology, CNS and nephrology therapies. It will also benefit from recovery, improved productivity and the expansion of in-licensed brands. New platforms such as semaglutide Poviztra, derma entry and consumer health offerings will further support this momentum. International business is expected to grow faster in the medium term, with expansion across Europe, Canada and RoW. This growth will be driven by complex injectables, including Amphotericin B in Europe, as well as market share gains in existing products and new launches. The RoW portfolio is expected to see higher growth in non-ARV business, supported by new approvals and product launches. The Company is increasing its focus on complex injectables, biosimilars, and NDDS, and is increasing R&D spending to support this shift. The Company is also aiming for productivity gains through digital adoption and AI. It expects low to mid-teen revenue growth and continued EBITDA margin expansion over the course of its current five-year strategic plan, driven by operating leverage, mix improvement productivity enhancement and disciplined execution.

HUMAN RESOURCES

Emcures people are central to its growth and long-term success. The Company invests continuously in employee development through structured learning initiatives designed to build capabilities and deepen expertise. Emcure remains committed to strengthening its employer brand to attract and retain high-calibre talent. Employee relations remained

positive and cooperative across all levels throughout the year, underpinned by the Companys sustained focus on a healthy, collaborative work environment. As of 31 March 2026, Emcure employed 11,686 permanent employees across all locations. For further details, refer to the page no. 62

INTERNAL CONTROL SYSTEM AND ITS ADEQUACY

Emcure maintains a comprehensive internal control framework designed to safeguard operational integrity, ensure regulatory compliance and support sustainable business performance. Structured processes are in place to identify and manage business risks, supported by an independent internal audit function. Audit findings and recommendations are reviewed by the Audit Committee to ensure effective governance and accountability. The Company periodically reassesses its internal control environment through senior management reviews to ensure controls remain adequate and responsive to evolving business requirements.

RISKS AND CONCERNS

Emcure has established a robust Enterprise Risk Management (ERM) framework to proactively identify, assess and mitigate risks across strategic, operational, financial, regulatory and reputational dimensions. The Board of Directors and Risk Management Committee oversee governance, while senior management implements mitigation and monitors key risks. Risks are methodically identified and ranked and strategies to prevent or mitigate them are integrated into business planning and decision-making processes. Detailed disclosures on principal risks, mitigation measures and the Companys Enterprise Risk Management (ERM) framework are provided in the ERM section and the Business Responsibility and Sustainability Report (BRSR).