Infinium Pharmachem Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENT:

The chemical industry is a key pillar of industrial and economic development, supplying essential raw materials to pharmaceuticals, agrochemicals, electronics, nutrition, water treatment, polymers, imaging, and specialty manufacturing. The industry comprises basic chemicals, specialty chemicals, performance chemicals, and fine chemicals, with increasing emphasis on sustainability, innovation, and regulatory compliance.

Global iodine supply remains concentrated in a few producing countries, making raw material availability and pricing susceptible to geopolitical developments, mining output, and supply chain disruptions. Consequently, manufacturers increasingly focus on operational efficiency, product innovation, backward integration, and diversified sourcing strategies to ensure business continuity.

Infiniums Contribution:

Infinium Pharmatech Ltd, headquartered in Gujarat, has played a pivotal role in this export momentum. In FY. 2025-26, Infinium recorded exports to 57 global partners, including China, Russia, Japan, and Italy, with key products such as Imidazolium, Tetraethyl ammonium Iodide, Iodobenzene Diacetate and N-iodosuccinimide.

Pharma Chemicals and Operational Performance:

India is rapidly emerging as a global manufacturing hub for pharma chemicals, driven by cost-effective production, skilled manpower, and robust infrastructure. Infiniums specialization in iodine derivatives and organo-inorganic compounds aligns with this national trend.

FINANCIAL PERFORMANCE:

During the financial year 2025-26, the Company reported the following results:

Total Turnover stood at Rs. 1564464.40 thousand. Profit Before Tax (PBT) amounted to Rs. 135146.40 thousand.

In comparison, during FY 2024-25:

Total Turnover was Rs. 1369163.82 thousand.

Profit Before Tax (PBT) was Rs. 116056.60 thousand.

The Company reported growth in both revenue and Profit Before Tax (PBT), reflecting improved business performance, higher sales volumes, an enhanced product mix, and effective cost management.

OPPORTUNITIES,THREATS,RISKS AND CONCERNS:

Like all enterprises operating in the chemical and pharmaceutical domain, the Company faces:

Opportunities:

Rising global demand for pharma intermediates and APIs. Increasing preference for India as an alternative manufacturing hub. Expansion into new geographies and strengthening partnerships.

Threats/Risks:

Competition from multinational corporations and large-scale imports. Technological disruptions requiring significant capital investments. Duty-free imports by customers against export obligations.

Infinium is fully aware of these challenges and continues to implement strategies to mitigate risks and leverage emerging opportunities.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:

Management has put in place effective Internal Control Systems to provide reasonable assurance for:

Safeguarding Assets and their usage. Maintenance of Proper Accounting Records and Adequacy and Reliability of the information used for carrying on Business Operations.

Key elements of the Internal Control Systems are as follows:

I. Existence of Authority Manuals and periodical updating of the same for all Functions. II. Existence of clearly defined organizational structure and authority.

1. Existence of corporate policies for Financial Reporting and Accounting. IV. Existence of Management information system updated from time to time as may be required. V. Existence of Annual Budgets and Long-Term Business Plans. VI. Existence of Internal Audit System. VII. Periodical review of opportunities and risk factors depending on the Global / Domestic Scenario and to undertake measures as may be necessary.

HUMAN RESOURCE/INDUSTRIAL RELATIONS:

Human capital continues to be a cornerstone of Infiniums growth. The Company remains focused on employee training, safety, and development initiatives. Industrial relations during FY 2025-26 remained cordial and constructive, with employees and management working collectively & effectively toward organizational goals.

BUSINESS OUTLOOK:

The pharmaceutical sector demonstrated steady improvement during FY 2025-26, supported by several structural and cyclical factors. Key drivers included:

Rising exports driven by Indias cost competitiveness, strong manufacturing capabilities, and adherence to global quality and regulatory standards. Robust performance in branded formulations, particularly in chronic therapies. Government initiatives promoting domestic manufacturing, infrastructure development, and ease of doing business, along with policy support for the pharmaceutical and chemical industries. Higher demand for specialty chemicals, including iodine derivatives, used in pharmaceutical formulations, diagnostic imaging, antiseptics, nutraceuticals, and industrial applications

API and Pharma Chemicals Outlook:

The outlook for the API and pharmaceutical chemicals sector remains positive, supported by favourable demand fundamentals, policy support, and continued global diversification of supply chains. As a manufacturer of specialty chemicals and iodine derivatives, the Company is well positioned to benefit from increasing demand from pharmaceutical, diagnostic imaging, antiseptic, and nutraceuticals applications.

Key Financial Ratios:

Sr.No.	Particulars	FY. 2025-26	FY. 2024-25	Detailed Explanation for significant change
1.	Current Ratio	4.2	2.3	Increased in current ratio is mainly due to decrease in financial liabilities.
2.	Debt Equity Ratio	0.13	0.43	Reduction in Debt-Equity ratio is due reduction in financial liabilities of the company.
3.	Return on Net Worth	8.66 %	8.01 %	Increase in Return on Net Worth is due to increase in Profit After Tax.

Conclusion:

Raw material APIs continue to play a critical role in pharmaceutical manufacturing, directly impacting therapeutic efficacy, quality standards, regulatory compliance, cost optimization, and supply chain efficiency. With its specialization in iodine derivatives and pharma intermediates, Infinium Pharmachem Ltd is well-positioned to capitalize on these opportunities, both in the domestic and international markets.

CAUTIONARY STATEMENT:

Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward-looking statements.

By Order of the Board of Directors, For, Infinium Pharmachem Limited

Sanjaykumar Patel Managing Director DIN:00370715

Place: Anand Date:22nd August,2026