Gland Pharma Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION & ANALYSIS</dhhead-

Global Economic Review

The global economy is expected to maintain a steady, albeit moderate, growth trajectory over the medium term, supported by infrastructure investments, technological progress and calibrated policy support. As per the International Monetary Fund April 2026 World Economic Outlook, global GDP growth is projected at 3.1% in 2026, with a marginal improvement to 3.2% in 2027, reflecting a stable but below-trend expansion.

The global growth landscape is becoming increasingly uneven. Advanced economies are witnessing a gradual slowdown as the lagged effects of tighter monetary policies continue to weigh on consumption and investment. In contrast, emerging and developing economies remain the primary drivers of incremental global growth, supported by resilient domestic demand, sustained infrastructure investments, and expanding industrial output, albeit with intermittent volatility arising from capital flows and currency movements. At the same time, geoeconomic fragmentation is reshaping global trade and investment patterns, prompting businesses to realign supply chains with a sharper focus on resilience, diversification, and continuity alongside cost efficiency.

Geopolitical tensions, particularly in energy-sensitive regions, have intensified commodity market volatility, leading to periodic supply disruptions and elevated input costs. Global inflation is expected to rise to 4.4% in 2026 before moderating to 3.7% in 2027, reflecting near-term supply-side pressures followed by gradual stabilisation. As a result, monetary conditions are likely to remain relatively tight, with interest rates staying elevated across major economies, impacting liquidity and increasing the overall cost of capital. These factors continue to create a complex operating environment for businesses worldwide.

Despite these near-term challenges, structural growth drivers remain intact. Investments in infrastructure, digitalisation, automation, and energy transition continue to support productivity improvements and shape the next phase of global expansion. Emerging economies, particularly in Asia, are expected to retain a central role in driving growth, supported by urbanisation, rising consumption, and expanding manufacturing capabilities. Looking ahead, the global economy is poised for moderate growth, supported by policy interventions and technological advancements, even as businesses increasingly prioritise resilience, operational efficiency, and long-term partnerships to navigate persistent uncertainties.

Indian Economic Review

Indias economy continued to display strong resilience during the year, supported by healthy domestic demand, sustained government-led investments and improving industrial activity. The country remains one of the fastest- growing major economies globally, with real GDP estimated to grow by 76% in FY 2025-26, reflecting continued strength in consumption and investment-led expansion.

Indias growth continues to be anchored by a well-balanced demand mix, with Private Final Consumption Expenditure (PFCE) contributing over 60% of GDP and remains the primary engine of expansion. Rising incomes, rapid urbanisation, improved access to credit and increasing digital adoption are reinforcing domestic consumption and enabling broad- based growth across sectors. Macroeconomic stability has remained largely intact, with inflation broadly within the target range of the Reserve Bank of India, supported by stable commodity prices and calibrated policy measures that have helped sustain economic momentum despite global uncertainties.

The external sector has demonstrated resilience amid global trade volatility, with exports remaining steady across diversified sectors, while imports reflect strong domestic demand for capital goods, intermediate inputs and energy, indicating continued expansion in industrial and manufacturing activity. Investment remains a critical growth lever, driven by sustained public capital expenditure and a gradual revival in private sector investments, supporting capacity creation across infrastructure, manufacturing and logistics. Industrial performance has remained robust, aided by policy initiatives such as the Production Linked Incentive Scheme, rising capacity utilisation, increasing formalisation and improved supply-side efficiencies.

Looking ahead, Indias economic outlook remains constructive, supported by resilient consumption, continued infrastructure investments and strengthening industrial momentum. Ongoing policy support, investments in logistics and digital infrastructure, and global supply chain diversification trends are expected to accelerate investments and deepen Indias integration into global value chains. While external risks such as geopolitical uncertainties, commodity price volatility and trade disruptions may pose intermittent challenges, overall macroeconomic stability, underpinned by prudent policymaking, is expected to provide a strong foundation for sustained and inclusive economic expansion.

(Source: MoSPI)

Global Pharmaceutical Industry

The global pharmaceutical industry continues to demonstrate resilient growth, driven by rising healthcare demand, increasing prevalence of chronic diseases, broader access to medicines and continued innovation in specialty and complex therapies. Global health systems have remained resilient despite inflationary pressures, geopolitical uncertainties and post-pandemic disruptions, while continuing to expand patient access to advanced treatments. Over the past 20 years, more than 1,000 novel active substances have been launched globally, including 394 in the last five years, reflecting the sustained pace of pharmaceutical innovation across key therapy areas such as oncology, immunology, neurology and endocrinology.

According to the IQVIA, the global medicines market is expected to grow at a CAGR of 5-8% through 2029, reaching approximately US$2.4 Tn at invoice prices. Growth is being driven by increasing adoption of innovative therapies, biologics and specialty medicines, alongside broader patient access across developed and emerging markets. At the same time, rising penetration of generics and biosimilars following patent expiries is expected to partially offset spending growth. Global medicine use continues to remain above pre-pandemic trends, highlighting the structural strength of healthcare demand worldwide.

The industrys growth trajectory is increasingly being shaped by biologics, specialty therapies and advanced treatment modalities. Biologic medicines accounted for 42% of global novel drug launches over the last five years, while global biotech spending is projected to reach US$820 Bn by 2029, representing nearly 34% of global pharmaceutical spending. Specialty medicines are also expected to account for approximately 46% of global medicine spending by 2029. Rapid adoption of GLP-1 therapies for diabetes and obesity, increasing use of immunology biologics and advances in targeted oncology therapies are reshaping treatment paradigms and improving patient outcomes globally.

Growth trends continue to vary across regions. Developed markets are witnessing steady expansion led by specialty therapies, biologics and innovative branded medicines, while emerging and Pharmerging markets continue to outpace on volume growth, supported by improving healthcare access and affordability. Regions such as Latin America and Asia are expected to record faster medicine- use growth through 2029, while China remains a key growth market driven by expanding access to innovative therapies.

These structural shifts are creating significant opportunities within the injectable manufacturing and CDMO landscape. Rapid growth in GLP-1 therapies, biologics, biosimilars and specialty injectables is driving demand for scalable, high- quality sterile manufacturing capabilities. Pharmaceutical companies are increasingly adopting long-term outsourcing partnerships, particularly for complex injectables, biologics and specialty therapies. At the same time, the industry continues to shift from commoditised generics towards value-added, complex sterile products with higher entry barriers and stronger value potential.

Customers are also prioritising supply chain resilience through diversified manufacturing networks and dual sourcing strategies, while demand is increasing for patient-friendly delivery formats such as prefilled syringes, cartridges and ready-to-use injectables. Combined with growing adoption of automation and digital manufacturing technologies, these trends are positioning advanced injectable manufacturing and integrated CDMO capabilities at the center of the next phase of global pharmaceutical growth.

Regional Trends in Medicine Consumption

Global medicine consumption is expected to witness sustained growth through 2029, supported by increasing healthcare access, rising adoption of innovative therapies and expanding treatment coverage across both developed and emerging markets. Developed economies continue to exhibit stable and mature consumption patterns, while emerging regions such as Latin America and parts of Asia are projected to drive incremental demand, aided by improving affordability, healthcare investments and broader patient access to medicines.

According to IQVIA, global medicine use is projected to grow at an average rate of 0.8% annually through 2029, with growth trends varying across regions based on population dynamics, disease burden and healthcare access. Per capita medicine usage is expected to remain significantly higher in developed markets such as Japan and Western Europe, while emerging economies continue to narrow the access gap through improving healthcare delivery systems and rising diagnosis rates.

Overall, the long-term outlook for medicine consumption remains positive, supported by ageing populations, increasing prevalence of chronic diseases, higher disease awareness and continued investments in healthcare infrastructure and innovation globally.

Based on IQVIAs The Global Use of Medicines Outlook through 2029 (June 2025), pharmaceutical spending across key regions is expected to evolve as follows through 2029.

Global: The global healthcare industry is entering a new phase of sustained growth, supported by rising demand for innovative therapies, ageing populations, expanding healthcare access and continued advances in medical science. According to IQVIA, the global medicines market is expected to grow at a CAGR of 5-8% through 2029, reaching approximately US$2.4 trillion. Growth will be led by high- value therapeutic areas such as oncology, immunology, diabetes and obesity, while emerging markets across Asia and Latin America are expected to outpace developed economies in medicine consumption. At the same time, the increasing pace of novel drug launches, wider adoption of biologics and specialty medicines, and growing investments in healthcare infrastructure are reshaping the global pharmaceutical landscape. These structural trends are expected to create significant opportunities for innovation-driven pharmaceutical companies while reinforcing the importance of affordability, access and resilient healthcare systems.

North America is expected to remain the worlds largest pharmaceutical market through 2029, with medicine spending projected to grow at 6-9% CAGR, reaching approximately US$ 1.20-1.23 Tn by 2029. Growth continues to be supported by sustained adoption of specialty therapies, biologics and innovative treatments, alongside an ageing population and high healthcare expenditure.

Western Europe is projected to witness steady growth of 4.5-7.5% CAGR over 2025-2029, with the market expected to reach US$ 390-420 Bn by 2029. Strong public healthcare systems, increasing biosimilar adoption and continued access to innovative therapies are expected to support stable demand across the region.

Eastern Europe is expected to emerge as one of the relatively faster-growing regions, with pharmaceutical spending projected to expand at 7-10% CAGR through 2029, reaching approximately US$ 133-137 Bn. Improving healthcare infrastructure, rising medicine access and expanding generics penetration continue to support growth momentum.

Japan remains a mature and high-consumption pharmaceutical market, with spending growth projected at -0.5-2.5% CAGR over 2025-2029, reaching US$ 72-74 Bn by 2029. Demand continues to be supported by its ageing population, high healthcare standards and stable reimbursement systems.

Asia-Pacific region is expected to grow at 5-8% CAGR through 2029, with spending projected to reach US$ 120125 Bn. Urbanisation, rising income levels and improving healthcare access across developing Asian economies are expected to support sustained expansion.

India is projected to witness strong growth, with pharmaceutical spending expected to expand at 6.5-9.5% CAGR through 2029, reaching US$ 40-44 Bn. Growth is expected to be driven by affordable generics, expanding healthcare coverage, rising disease awareness and improving access to healthcare services.

China is expected to register moderate growth of 1-4% CAGR over 2025-2029, with the market projected to reach US$ 175-205 Bn by 2029. Growth will continue to be supported by healthcare reforms, wider insurance coverage and increased adoption of innovative medicines, although the pace is expected to moderate compared to previous years.

Latin America is expected to expand at 6-9% CAGR through 2025-2029, reaching approximately US$ 126-130 Bn. Strengthening healthcare systems, economic recovery in key markets and increasing access to medicines are expected to support regional growth.

Africa and Middle East are projected to grow at 5-8% CAGR over 2025-2029, with pharmaceutical spending expected to reach US$ 68-72 Bn by 2029. Population growth, improving healthcare investments and gradual expansion of treatment access continue to support longterm demand across the region.

Market trends across key therapeutic segments

Oncology

Oncology continues to remain the largest and fastest- growing therapy area globally, supported by sustained innovation in immuno-oncology, targeted therapies,

antibody-drug conjugates (ADCs) and cell and gene therapies. Expanding indications, earlier-line treatment adoption and longer treatment durations are accelerating demand across markets. Global oncology spending reached approximately US$ 252 Bn in 2024 and is projected to rise significantly through 2029, supported by continued pipeline innovation and increasing access to advanced therapies.

Immunology

Immunology remains a key growth driver within the global pharmaceutical market, supported by continued biologic innovation and expanding treatment applications across autoimmune and inflammatory diseases. Increasing adoption of biologics and targeted therapies, alongside broader patient access and biosimilar-driven affordability, continues to support volume growth, particularly across developed markets.

Obesity

Obesity has emerged as one of the most rapidly expanding therapy areas globally, led by the strong uptake of GLP-1 and next-generation incretin-based therapies. Increasing awareness, expanding clinical acceptance and broader patient eligibility are significantly enlarging the addressable market. The segment is expected to witness sustained double-digit growth as reimbursement coverage and manufacturing capacities improve over time.

Diabetes (Metabolic Disorders)

Diabetes therapies continue to demonstrate steady growth, supported by the rising global prevalence of metabolic disorders and increasing access to treatment. Innovation in GLP-1 therapies, SGLT2 inhibitors and combination products is improving patient outcomes while driving sustained demand across both developed and emerging markets.

Cardiovascular

Cardiovascular therapies continue to represent one of the largest and most established therapy segments globally. Demand remains supported by ageing populations, increasing incidence of lifestyle-related diseases and growing awareness of preventive care. However, growth remains relatively moderate due to high generic penetration and ongoing pricing pressures across mature markets.

Central Nervous System (CNS)

The CNS segment is witnessing renewed momentum, supported by advancements in therapies targeting neurological and psychiatric disorders, including Alzheimers disease, anxiety and depression. Continued innovation and improving clinical outcomes are strengthening long-term growth prospects, although reimbursement, affordability and patient access remain important considerations.

Respiratory

Respiratory therapies are expected to grow at a measured pace, supported by the continued prevalence of chronic respiratory diseases such as asthma and chronic obstructive pulmonary disease (COPD). While high generic competition continues to limit broader market growth, biologics and

targeted therapies are driving expansion within specialised treatment segments.

Biosimilars

Biosimilars are playing an increasingly important role in reshaping global pharmaceutical market dynamics, particularly across biologics-intensive therapy areas such as immunology and oncology. Wider adoption is being supported by cost efficiencies, favourable regulatory pathways and increasing physician confidence, helping improve affordability and patient access while reducing healthcare system costs.

Loss of Exclusivity (LOE)

A significant wave of patent expiries over the coming years is expected to accelerate competition from generics and biosimilars across several major therapy areas. Global spending reductions from loss of exclusivity are projected to remain substantial through 2029, creating opportunities for broader treatment access while exerting downward pressure on pricing and branded drug revenues.

Source: IQVIAs The Global Use of Medicines Outlook through 2029 (June 2025)

Outlook

The global pharmaceutical industry is undergoing a significant structural transformation, driven by evolving healthcare needs, rapid scientific innovation and changing market dynamics. Supply chains are increasingly being reconfigured to enhance resilience, diversification and regional balance, with companies focusing on multigeography manufacturing networks, supplier diversification and localisation strategies to strengthen operational agility and reduce dependency risks.

At the same time, the industry continues to witness accelerating adoption of specialty therapies, biologics and next-generation treatments across key therapy areas such as oncology, immunology, obesity and metabolic disorders. Expanding patient access, rising healthcare investments and increasing disease awareness across emerging markets are further supporting long-term demand growth.

The outlook for the sector remains positive, supported by sustained innovation, strong late-stage pipelines and growing access to advanced therapies globally. While pricing pressures, regulatory complexities, geopolitical uncertainties and market access challenges continue to remain key considerations, increasing biosimilar penetration, broader healthcare coverage and a significant wave of patent expiries are expected to create opportunities for wider treatment access and continued market expansion through the coming years.

Global injectables industry

The global injectable drug delivery devices market is poised for strong expansion, projected to grow from approximately USD 565 Bn in 2025 to around USD 1,217 Bn by 2034, reflecting a CAGR of about 8.9% over the period. This growth underscores the increasing importance of advanced delivery systems in improving treatment adherence, patient convenience and clinical outcomes.

Growth is being supported by strong adoption of selfinjection devices, reflecting a clear preference for convenient, safe and patient-centric drug administration. Therapeutically, diabetes remains the largest segment, driven by its high global prevalence and the need for frequent, long-term treatment.

From an end-use perspective, homecare settings dominate, underscoring the accelerating shift toward self-administration and decentralised healthcare delivery

models. This transition is further enabled by advancements in device design, improved ease of use and increasing digital integration.

Regionally, North America continues to lead the market, supported by advanced healthcare infrastructure and high adoption of innovative therapies, while Asia is emerging as the fastest-growing region, driven by expanding healthcare access, rising affordability and increasing prevalence of chronic diseases.

Growth Drivers

Rising Burden of Chronic Diseases

The increasing prevalence of chronic conditions such as diabetes, cancer and cardiovascular diseases continues to be a primary demand driver. A large and growing patient population requires long-term and often injectable therapies, reinforcing sustained need for advanced drug delivery solutions.

Shift Towards Self-Administration and Homecare

There is a clear shift towards home-based treatment, supported by the adoption of devices such as autoinjectors and pen injectors. Patients are increasingly managing therapies independently, improving adherence, convenience and reducing reliance on hospital-based care.

Growth in Biologics and Specialty Therapies

The expanding pipeline of biologics and specialty drugs is significantly accelerating demand, as these therapies typically require injectable delivery. Rising disease prevalence and broader treatment access continue to support this structural trend.

Technological Advancements in Delivery Devices

Innovation remains a key growth lever, with advancements such as smart connected injectors, wearable delivery

systems, needle-free technologies and reusable devices enhancing safety, precision and ease of use. These developments are improving treatment outcomes and driving wider adoption.

Increasing Demand for Patient-Centric Solutions

There is a growing focus on user-friendly and ergonomic device design, including prefilled syringes and autoinjectors that reduce administration errors and improve patient comfort. Features such as dose tracking and realtime monitoring are further strengthening adherence.

Expanding Role of Emerging Markets

Emerging markets, particularly in Asia, are witnessing strong growth driven by improving healthcare infrastructure, rising income levels and expanding access to advanced therapies, positioning them as key contributors to future market expansion.

Outlook

Looking ahead, the injectable drug delivery devices market is expected to sustain strong growth, supported by continued innovation, rising demand for biologics and increasing preference for home-based care. The market will likely see further advancements in digitally integrated and patient-centric delivery systems, alongside

expanding adoption in emerging markets. While regulatory complexities and competitive pressures remain, the overall outlook remains positive, with strong structural demand drivers and technological evolution expected to support long-term growth.

Generic Injectables Market

The global generic injectables market is witnessing strong expansion, projected to grow from US$ 135.4 Bn in 2025 to US$ 401.8 Bn by 2035, reflecting a CAGR of 11.5%. This growth is supported by a robust wave of patent expiries, rising demand for cost-effective therapies and the increasing prevalence of chronic diseases. North America continues to lead the market, while Asia-Pacific is the fastest-growing region. Oncology remains the largest therapeutic area, driven by the expanding adoption of generic cancer treatments, with technological advancements such as prefilled syringes and supportive regulatory frameworks further accelerating market momentum.

Growth is being reinforced by healthcare cost-containment measures and the critical role of injectables in acute and specialty care. Hospitals continue to dominate distribution due to the clinical nature of administration, while emerging markets are contributing incremental demand through expanding healthcare access and infrastructure. Looking ahead, sustained patent expiry opportunities, increasing adoption of biosimilar injectables and advancements in complex manufacturing and ready-to-use formulations are expected to support continued growth, positioning generic injectables as a resilient and essential segment of the pharmaceutical industry despite pricing pressures and supply chain challenges.

Source: GlobeNewswire

Contract Development and Manufacturing (CDMO) services for biologics

Biologics-focused Contract Development and Manufacturing Organisations (CDMOs) have become integral to the pharmaceutical value chain, providing end- to-end solutions spanning early-stage development to commercial-scale manufacturing. These organisations support critical activities such as regulatory compliance, analytical testing, formulation development and packaging, enabling pharmaceutical companies to accelerate the development and market launch of complex biologic therapies.

Rising investments in research and development, coupled with an increasing focus on rapid commercialisation by leading pharmaceutical players, are driving strong demand for biologics CDMO services. By offering specialised expertise, advanced infrastructure and operational flexibility, CDMOs enable biopharma companies to navigate complex regulatory pathways, optimise production efficiency and reduce time-to-market.

With expanding technical capabilities and fully integrated service models, CDMOs are strengthening their role as strategic partners across the biologics ecosystem.

Their offerings now span the entire spectrum from drug discovery and clinical development to commercial manufacturing and lifecycle management. Reflecting this momentum, the global biologics CDMO market is projected to grow from approximately US$ 171 Bn in 2024 to US$ 38.1 Bn by 2030, representing a CAGR of around 11.0%, underscoring its increasing strategic importance within the pharmaceutical industry.

(Source: GlobeNewswire)

About Gland Pharma

Founded in 1978 in Hyderabad, India, Gland Pharma Limited has emerged as a leading global player in the generic injectables space, with a presence spanning over 60 countries, including the United States, Europe, Canada, Australia and India. Operating predominantly under a B2B model, the Company offers an integrated suite of services encompassing contract development, dossier preparation, technology transfer and manufacturing across a wide range of delivery systems.

Over the past four decades, the Company has built strong capabilities across research and development, manufacturing and commercialisation of generic injectables. It is now strategically advancing into complex injectables and biologics/biosimilars through its expanding contract development and manufacturing (CDMO) platform. Anchored in a commitment to quality and affordability, the Company continues to address diverse global healthcare needs through a robust portfolio of high- quality injectable products.

The Companys R&D strengths in complex molecule development have enabled it to build a differentiated portfolio across multiple therapeutic segments, including oncology and ophthalmology, with established expertise in sterile injectables. Its product offerings span a wide range of delivery formats such as liquid vials, lyophilised vials, prefilled syringes, ampoules, infusion bags and eye drops.

The Cenexi Acquisition continues to strengthen the Companys presence in Europe and enhances its capabilities in sterile liquid and lyophilised fill-finish operations, including complex oncology formulations. The acquisition aligns with the Companys long-term strategy to expand its footprint in the branded CDMO segment and establish a scalable manufacturing base in Europe.

Leveraging Cenexis advanced technological capabilities, including specialised delivery systems and expertise in handling complex formulations such as oncology products, hormonal therapies and controlled substances, the Company is further strengthening its CDMO offerings. It is also expanding its capabilities in drug product fill-finish services for biologics, vaccines and biosimilars.

The Company remains focused on unlocking value from this acquisition by investing in infrastructure upgrades, operational excellence and quality systems at Cenexi, with the strategic objective of positioning it as a globally competitive CDMO platform.

Regulatory Filings

Total ANDAs 388

	Approved	Filed	Total	Approved	Filed	Total
Own	161	27	188	48%	53%	48%
Partner owned	176	24	200	52%	47%	52%
Total	337	51	388	100%	100%	100%

Total Product Registrations Globally 1,828

Segment	Registration count
Core Markets (US, EU, AUS, CAN, NZ)	527
India	77
RoW	1,224
Total	1,828

Complex Injectables Portfolio by Therapeutic Area

Therapy	# Products	% of total	TAM $ US Bn	% of total
Diabetes management	3	13%	0.46	7%
Cardiology	3	13%	0.14	GHT>2%
Oncology	5	21%	1.31	19%
Reproductive Health	4	17%	0.48	7%
Musculoskeletal	1	4%	0.05	1%
Immunology	2	8%	0.21	3%
CNS Health	2	8%	3.21	48%
Chemo-adjuvants	1	4%	0.17	2%
Addiction management	1	4%	0.53	8%
Gastrointestinal	1	4%	0.03	0%
Weight management	1	4%	0.15	2%
Total	24	100%	6.74	100%

Complex Injectables Portfolio by Technology

Classification	# Products	% of total	TAM $ US Bn	% of total
Hormone	9	38%	0.69	10%
Peptide	7	29%	1.65	24%
Complex API	1	4%	0.05	1%
Suspension	2	8%	0.21	3%
Emulsion	1	4%	0.17	2%
Microsphere	2	8%	0.71	11%
Liposome	1	4%	0.23	3%
Nano Suspension	1	4%	3.04	45%
Total	24	100%	6.74	100%

Small Molecules Pipeline (ANDA - Patent Certification)

Type of registration	# of ANDAs	TAM USD Mn
505(b)(2)	2	64
NCE-1 (PIV)	6	1,461
PIV	22	3,672
PIII	2	155
PII or PI	41	1,324
Total	73	6,676

Our Strengths Continue To Drive Sustainable Growth

The Companys established position as a global injectable leader is anchored in core strengths that continue to drive long-term value creation. A disciplined focus on quality and compliance, a diversified portfolio spanning injectables, sterile R&D investments, and a scalable B2B operating model collectively enable the Company to capitalise on emerging opportunities while delivering consistent value to stakeholders.

Quality and Compliance

Quality and regulatory compliance remain foundational to the Companys operating philosophy. Backed by robust track record, strong regulatory systems, and a culture of continuous improvement, the Company ensures adherence to global quality standards.

Approximately 35% of the workforce is dedicated to quality control and assurance, supported by advanced digital systems including Laboratory Information Management Systems (LIMS) and quarterly internal audits. These practices enable a proactive and resilient quality framework, reinforced by regular inspections from global regulatory authorities.

Differentiated Portfolio

The Companys diversified injectable portfolio is designed to address evolving therapeutic needs across key segments. With strong capabilities in complex injectables—including oncology and ophthalmology—the Company continues to expand into niche and high-growth areas.

Its portfolio includes NCE-1s, first-to-file generics, and 505(b)(2) opportunities. The Company is also advancing into emerging segments such as peptides, long-acting injectables, suspensions, and hormonal products, strengthening its competitive positioning in complex therapies.

Cost Efficiency

Cost leadership remains a key competitive lever. The Company consistently delivers superior margins by focusing on operational efficiencies, backward integration, and disciplined supply chain management, enabling sustainable profitability even in competitive markets.

Research and Development

R&D forms the cornerstone of the Companys long-term growth strategy. A dedicated team of scientists across development, formulation, and specialty domains drives innovation and pipeline expansion.

The Companys R&D efforts are focused on developing complex injectable technologies, improving delivery mechanisms, and advancing lifecycle management strategies. Continuous investment in R&D ensures a strong pipeline aligned with future market opportunities.

Manufacturing Excellence

The Companys vertically integrated manufacturing platform ensures scalability, flexibility, and operational efficiency. Its infrastructure includes multiple finished formulation facilities and dedicated API plants.

With capabilities spanning liquid vials, lyophilised products, pre-filled syringes, ampoules, infusion bags, and ophthalmic solutions, the Company supports end-to-end production. Integrated facilities for oncology and biotech products further strengthen supply chain resilience and ensure stringent quality standards.

Automation and use of AI tools

During the year, Gland Pharma continued to advance its digital transformation journey with multiple initiatives. These initiatives strengthened process reliability, enhanced predictive quality capabilities, and improved overall operational efficiency. Leveraging advanced data analytics and automated workflows, the company is building smarter, more agile systems that support scale up, reduce cycle times, and improve decision-making. As we expand our global presence and product portfolio, these technology investments position us to deliver higher value to our partners and support sustainable, future ready growth.

Diversified B2B Business Model

The Company operates a resilient and scalable B2B model, supported by strong partnerships with leading global pharmaceutical companies. Long-term supply agreements ensure stable revenue visibility, while the asset-light model enhances capital efficiency and cash flow predictability.

The Company also continues to strengthen its domestic presence, leveraging manufacturing scale without diluting its global focus.

Expanding CDMO business global reach and building a high-value manufacturing platform

During FY26, our CDMO business continued its transformation into a strategic and rapidly scaling growth engine by entering into new partnerships, supported by a widening global customer base and expansion into high-value therapeutic platforms and manufacturing. The Company saw a significant increase in new global client engagements, particularly in the U.S. and Europe, where large pharma companies are increasingly selecting Gland as a long-term sterile injectables partner. These partnerships reflect the strength of our technical capabilities, compliance track record, project execution speed, and cost-efficient manufacturing infrastructure.

A key highlight during the year was the expansion of our GLP-1 partnerships. We have now signed multiple GLP-1-related contracts with global players, spanning across both semaglutide and liraglutide programs. In parallel, we are engaging with several additional potential partners who are at various stages of evaluation and development. Our fungible cartridge and vial fill-finish capacity provides a flexible platform to support both GLP-1 and insulin analogue programs, and this has become a strong differentiator for Gland in attracting high-value, long-duration CDMO engagements.

Cenexi: Strengthening Global CDMO Capabilities

The strategic acquisition of Cenexi marks a significant milestone in expanding the Companys global CDMO footprint. With operations across France and Belgium,

GLAND PHARMA LIMIltD

Cenexi brings specialised capabilities in sterile injectables, including complex formulations such as oncology, hormones, and controlled substances.

The Company has initiated a comprehensive transformation programme to enhance Cenexis operational performance and unlock value. Key initiatives include:

• Streamlining operations and improving Overall Equipment Effectiveness (OEE)

• Strengthening technology transfer and process optimisation

• Renegotiating legacy contracts

• Enhancing customer engagement and business development capabilities

In parallel, the Company is investing in capacity expansion, infrastructure upgrades, and compliance enhancements to align with evolving regulatory requirements.

Cenexi to drive long-term CDMO value

Cenexi is expected to play a pivotal role in the Companys global CDMO strategy. By leveraging combined capabilities, expanding into new delivery formats such as pre-filled syringes, and cross-selling across customer bases, the Company aims to unlock new growth opportunities.

The ongoing transformation is expected to enhance profitability, improve operational efficiency, and strengthen the Companys position as a global, high-quality pharmaceutical solutions provider.

Further, with deeper integration of Gland and Cenexis business development pipelines, we have expanded our ability to serve customers seeking sterile injectable manufacturing in both India and Europe. This integrated model allows us to participate in a larger portion of global RFPs, particularly in ampoules, vials, PFS, and complex formulations, while offering dual-site risk mitigation and supply chain flexibility to customers. Overall, the CDMO

business is expected to be a major long-term growth driver for Gland, supported by a strong order book, expanding global client relationships and differentiated capacities. The momentum built during FY26 provides strong visibility over medium to long term.

Performance in FY 2025-26

In FY26, Gland reported consolidated revenues of Rs. 64,307 Mn, with a remarkable growth of 14.5%. Consolidated EBITDA stood at Rs. 16,295 Mn, translating to a margin of 25%. Absolute EBITDA improved by 275 bps. Excluding Cenexis performance, the base business recorded revenues of Rs. 45,613 Mn, with a growth of 11%, and a stronger EBITDA margin of 36%, reflecting an improvement of about 140bps over previous year.

Within the base business, growth was primarily driven by overall volume growth with new customer/contract wins and market share gains, and new launches. The base business growth stood at 11%, led by a 11% increase in the US market. US market contributed 53% to the full-year revenue. R&D investments totalled Rs. 2,230 Mn, accounting for 5% of base business revenue. On the compliance front, Gland Pharma continues to maintain exemplary track record, reflected in its facilities being approved by US FDA and other multiple regulatory authorities.

Profit After Tax (PAT) for the full year was Rs. 10,273 Mn, with a margin of 16%. Other income rose to Rs. 3,163 Mn, largely driven by higher interest income and forex gains. As on March 31, 2026, the Company maintained a robust financial position, with cash and cash equivalents of Rs. 33,591 Mn and a net cash position of Rs. 31,157 Mn after accounting for Cenexis debt. Operating cash flow stood at Rs. 10,314 Mn, and the average cash conversion cycle improved marginally to 164 days.

Capital expenditure for the year amounted to Rs. 4,938 Mn, directed towards expanding production lines and enhancing packaging capabilities across both Indian operations and Cenexi.

Revenue from Operations

By Customer Location ( in Mn)

	YoY Change(%)	FY2025-26 Revenue	Rev. (%)	FY2024-25 Revenue	Rev. (%)	FY2023-24 Revenue	Rev. (%)
USA	14%	31,185	48%	27,403	49%	26,878	47%
India	16%	5,510	9%	4,765	8%	5,880	10%
Europe	38%	14,110	22%	10,225	18%	10,528	19%
Canada	-11%	1,404	2%	1,574	3%	890	2%
Australia	15%	851	1%	743	1%	626	1%
New Zealand	0%	77	0%	77	0%	28	0%
Rest of World	-2%	11,169	17%	11,378	21%	11,817	21%
Total	14%	64,307	100%	56,165	100%	56,647	100%

By Markets ( in Mn)

	YoY Change (%)	FY2025-26 Revenue	Rev. (%)	FY2024-25 Revenue	Rev. (%)	FY2023-24 Revenue	Rev. (%)
USA	13%	34,214	53%	30,387	54%	30,375	54%
India	7%	2,672	4%	2,487	4%	2,810	5%
Europe	34%	14,035	22%	10,470	19%	10,648	19%
Canada	8%	1,300	2%	1,203	2%	885	2%
Australia	20%	892	1%	743	2%	622	1%
New Zealand	1%	76	0%	75	0%	68	0%
Rest of World	3%	11,117	17%	10,800	19%	11,239	20%
Total	14%	64,307	100%	56,165	100%	56,647	100%

Business Model ( in Mn)

	YoY Change (%)	FY2025-26 Revenue	Rev. (%)	FY2024-25 Revenue	Rev. (%)	FY2023-24 Revenue	Rev. (%)
B2B - IP led - Own ANDA	10%	20,358	32%	18,446	33%	19,432	34%
B2B - IP led - Partner ANDA	-2%	13,657	21%	13,896	25%	14,013	25%
B2B - Tech Transfer	29%	29,401	46%	22,768	41%	22,030	39%
B2C - India	-23%	613	1%	794	1%	942	2%
Export Incentives - India	6%	277	0%	261	0%	230	0%
Total	14%	64,307	100%	56,165	100%	56,647	100%

Key Financial Ratios

Particulars	YoY % Change	FY2025-26	FY2024-25	FY2023-24
Debtors turnover	3%	3.77	3.65	4.66
Inventory turnover	6%	2.80	2.64	2.41
Current ratio	8%	4.68	4.33	4.04
Interest coverage ratio	62%	133.85	82.59	90.71
Debt equity ratio	0%	0.03	0.03	0.04
EBITDA margin (%)	12%	25.34	22.59	23.53
Net profit margin (%)	28%	15.98	12.44	13.64
Return on net worth (%)	35%	10.53	7.82	9.26
ROCE (%)	22%	11.49	9.42	11.42

The Company reported significant improvement in certain key financial ratios during FY2025-26 compared with FY2024-25. Interest Coverage Ratio increased by 62% to 133.85 times, Net Profit Margin increased by 28% to 15.98%, Return on Net Worth (RONW) increased by 35% to 10.53%, and Return on Capital Employed (ROCE) increased by 25% to 11.73%. The improvement in these ratios was primarily driven by higher operating leverage resulting from growth in revenues, favourable product mix, improved manufacturing efficiencies, better capacity utilisation and expansion in operating margins during the year. Improved profitability at both EBITDA and net profit levels translated into stronger returns on capital and net worth, while enhanced operating performance and a strong balance sheet contributed to a substantial improvement in interest coverage

Human Resources

With a workforce of around 4,300 professionals as of March 31, 2026, the Company continues to prioritise its people as a key driver of long-term value creation. Its people strategy remains focused on attracting high-quality talent, strengthening leadership capabilities, and fostering a culture of continuous learning.

During FY2025-26, the Company further strengthened its capability-building initiatives through structured learning and leadership development programmes. Upskilling efforts covered employees across functions, enabling the workforce to adapt to evolving business requirements and technological advancements.

The Company remains committed to diversity, equity, and inclusion, with initiatives aimed at building an equitable and inclusive workplace. The Company continues to invest in training and development across technical, behavioural, and leadership domains during the year.

In addition, the Company expanded its workforce and enhanced employee engagement through focused interventions, contributing to a more agile, diverse, and future-ready organisation aligned with its growth strategy.

Risk Management

The Company continues to strengthen its enterprise risk management framework to effectively identify, assess, and mitigate risks across strategic, operational, financial, and compliance areas.

During FY2025-26, the risk management framework was further enhanced through periodic reviews and updates

aligned with evolving business dynamics. The Board Risk Management Committee and Executive Management Team continued to oversee risk governance, ensuring alignment with strategic priorities.

The Company expanded its risk intelligence capabilities through collaboration with global advisory partners, incorporating advanced risk assessment tools and international best practices. A structured risk register, early warning systems, and scenario-based planning mechanisms supported proactive risk mitigation.

Key risks monitored during the year included macroeconomic volatility, regulatory changes, supply chain disruptions, geopolitical developments, and evolving compliance requirements. The Company maintained a strong focus on embedding risk awareness across functions, with clearly defined accountability structures.

Through a disciplined and forward-looking approach to risk management, the Company aims to safeguard value while enabling sustainable growth in a dynamic business environment.

Risk Management Committee

• Ms. Naina Lal Kidwai (Chairperson & Independent Director)

• Mr. Srinivas Sadu (Executive Chairman)

• Dr. Jia Ai Zhang (Non-Executive Director)

• Mr. Ravi Shekhar Mitra (CFO)

Internal Controls

The Company maintains a robust internal control framework to ensure accuracy of financial reporting, operational efficiency, and compliance with applicable laws and regulations.

During FY2025-26, the internal control systems were further strengthened through investments in systems, processes, and monitoring mechanisms. These enhancements enabled improved control effectiveness and transparency across operations.

The framework continues to be overseen by the Board of Directors and the Audit Committee, supported by periodic internal audits and continuous monitoring processes.

Future Growth Strategy

The Companys growth strategy remains anchored on four key pillars: geographic expansion, portfolio diversification, strategic collaborations, and operational excellence.

In the United States, the Company continues to focus on developing complex and high-value pharmaceutical products, while actively pursuing in-licensing opportunities and strategic partnerships.

Efforts are underway to commercialise US-approved products across global markets, accelerating growth and improving market penetration. The Company continues to invest in differentiated and niche products to address unmet clinical needs.

A key strategic focus remains the expansion of biologics and complex injectables capabilities and increasing inlicensing of complex and innovative products from China,

including peptides, long-acting injectables, and advanced delivery systems.

We have already expanded our cartridge fill-finish capabilities, from the present 40 Mn to 140 Mn, to capitalize on the rapidly growing GLP-1 opportunity. Through dedicated cartridge fill-finish capacity, long-term customer partnerships, and a differentiated position as one of the few CDMOs in India with integrated GLP-1 manufacturing capabilities, we are building a durable and defensible platform for sustained long-term growth.

Collaborations with global partners, including research institutions and CDMO players, continue to support innovation and accelerate development timelines. The Company remains well-positioned to leverage emerging opportunities and expand its global footprint.

Opportunities and Threats

The global pharmaceutical industry continues to present significant growth opportunities for Gland Pharma. Rising demand for generic injectables, increasing adoption of biologics, biosimilars and GLP-1 therapies, and the growing preference among pharmaceutical companies to outsource development and manufacturing activities are creating a favourable environment for specialised injectable manufacturers and CDMOs. The Company is well positioned to capitalise on these trends through its strong sterile manufacturing capabilities, expanding complex injectables portfolio, and fill-finish cartridge platform, and enhanced global CDMO footprint following the acquisition of Cenexi. Continued patent expiries, increasing demand for cost-effective healthcare solutions, expansion of healthcare access across emerging markets, and customer focus on supply chain diversification are expected to provide additional growth opportunities over the medium to long term.

At the same time, the Company operates in an environment characterised by evolving regulatory requirements, pricing pressures in generic markets, increasing competition, geopolitical uncertainties, supply chain disruptions, foreign exchange volatility, and fluctuations in raw material and energy costs. The pharmaceutical industry is also exposed to product approval risks, compliance-related challenges, and changes in healthcare policies across key markets. While the Company continuously strengthens its quality systems, risk management framework, supply chain resilience and operational excellence initiatives to mitigate these challenges, the evolving global business environment may continue to influence operating performance and market dynamics.

Disclaimer

The Management Discussion and Analysis (MD&A) section contains forward-looking statements based on current assumptions, expectations, and available information. Actual results may differ materially due to changes in economic conditions, regulatory developments, market dynamics, and other external factors.

The Company does not undertake any obligation to update forward-looking statements to reflect subsequent events or developments, except as required by applicable laws and regulations.