Innova Captab Ltd Management Discussions

Global Economic Trends

Looking ahead to 2025, emerging markets, particularly India are leading the way, with India continuing to be the worlds fastest growing economy. The global economy still faces a complex and uneven recovery. Growth is ongoing, but it is moderate and fragile, influenced by persistent uncertainties and different growth paths across regions. The consensus is that the world economy will grow at about 2.8% in 2025 and 3.0% 2026¹. This growth is hardly consistent across the globe. The US. is anticipated to maintain its resilience, but with slower momentum. Meanwhile, growth in the Euro Zone and the UK is likely to remain subdued.

This global economic path is shaped by a confluence of factors, from shifting monetary policies and stabilizing inflation to evolving geopolitical tensions and adjustments in global supply chains. A key influence remains Chinas uneven recovery post-pandemic, alongside deflationary pressures that continue to affect trade and investment sentiment in emerging markets. These trends are likely to create ripple effects across industries, including pharmaceuticals and healthcare industries that hold immense potential yet are sensitive to broader macroeconomic shifts.

Inflation and Monetary Policy

While inflation worldwide is showing signs of easing, the road to stable prices remains fragile. Geopolitical issues and upcoming changes in trade dynamics hang over supply chains, which could trigger another round of price fluctuations. In response, central banks are treading carefully, using targeted interventions to keep inflation in check, while ensuring economic growth remains on track.

Geopolitical Volatility

We are living in a time of increased geopolitical instability, with rising political tensions, soaring sovereign debt and a push for more protectionist trade policies creating a more uncertain global landscape.

Technological and Environmental Crossroads

The world is balancing between digital disruption and climate action as key drivers of change. AI innovations are boosting sect oral productivity, while the green transition is steering capital toward sustainable investments. But with policy fatigue creeping into some advanced economies, there is a risk that global progress toward sustainability could lose momentum.

Conclusion

The global economic outlook for 2025 presents a landscape full of contrasts: there is growth, but it is tempered by volatility and region- specific challenges. Moving toward sustained recovery will require agile policies, strong multilateral cooperation and the flexibility of economies to adjust to fast-paced structural changes. Now, more than ever, theres a pressing need for stability, inclusively and effective governance.

The developing world is showing promising signs of recovery. In Africa, economic progress is anticipated to build slowly, backed by improving macroeconomic stability in key nations like Egypt, Nigeria and South Africa. Latin America and the Caribbean, on the other hand, are set to see a mild bounce back, fueled by higher private consumption, a softer approach to monetary policy and a rebound in demand from abroad.

South Asia, led by Indias ongoing growth, remains a key engine of global expansion. The regions focus on infrastructure, digital advancements and boosting export capabilities is expected to ensure its solid near-term prospects.

(Source:

1. World Economic Outlook, April 2025: A Critical Juncture Amid Policy Shifts)

Indian Economy

Indias economic trajectory remains strong, affirming its position as one of the worlds fastest-growing major economies. Even amid global uncertainties, the Indian economy has proven its ability to adapt. A mix of steady domestic consumption, an ongoing infrastructure boost and targeted government support has helped sustain the countrys growth momentum. While challenges like inflation and inconsistent demand continue to exist, the nations economic fundamentals are sound and promising for the future.

Key Trends and Challenges

Growth Projections:

Looking ahead, Indias economy is expected to continue its steady expansion. For FY 2026, International Monetary Fund forecasts a consistent 6.5% growth rate for FY 2025 and FY 2026. These figures underscore the countrys economic strength and its growing contribution to global growth¹.

• Inflation and Demand Dynamics:

With continued support from the policy environment, inflation is expected to ease gradually. The Reserve Bank of India expects inflation to move back toward its 4% target early next fiscal year, which is likely to help restore consumer confidence and spending².

• India on the Global Stage:

India has firmly established itself as the fastest-growing major economy, consistently outpacing its global peers. The countrys strides in manufacturing, digital transformation and investment-led growth have caught the attention of the international community. As global value chains adjust, India is becoming the preferred destination for capital, talent and innovation, providing an increasingly favorable landscape for industries like pharmaceuticals to grow.

Conclusion

Indias economic journey continues to show steady growth and forward momentum. Domestic demand, coupled with a supportive policy environment, has been crucial in driving progress, even amid challenges in the global landscape. While inflation and changes in consumer behavior may slow growth at times, the overall trend remains positive. Moving forward, the emphasis will be on ensuring economic stability while fostering investment, innovation and inclusive development. With the right policies in place, India is well-positioned to sustain its growth and build a brighter economic future.

(Source:

1. Indian economy expected to grow 6.3-6.8% in 2025-26: Economic Survey- Business Standard

2. RBI Inflation 2025-26: Amid global trade war, RBI MPC projects Indias inflation at 4% in FY2026 - The Economic Times (indiatimes.com))

Global Pharmaceutical Market

The global pharmaceutical market is continuing to expand, supported by Tran formative innovations and rising healthcare needs across the globe. In 2023, it was valued at approximately USD 1,573 billion¹. Looking further ahead, the market is anticipated to expand at a CAGR of 6.1%¹, with projections to reach roughly USD 2.86 trillion by 2033¹.

Strategic Considerations Regulatory Landscape

As regulatory frameworks around the world continue to evolve, they are not only accelerating the approval of new drugs but also encouraging more innovation, especially in response to the lessons learned from the Covid-19 pandemic.

Supply Chain Evolution

Efforts to strengthen supply chain resilience are in full swing, with a focus on localizing processes and embracing sustainable practices.

Cost and Access Pressures

Pharmaceutical companies are facing increasing pressure on pricing while working hard to make medicines more accessible, particularly in developed markets.

Sustainability and ESG

Sustainability and ESG are taking center stage, with companies placing greater emphasis on green chemistry, reducing waste and ensuring ethical sourcing.

(Source:

1. Pharmaceutical Market Size Expected to Reach US$ 3.0 trillion

2 Pharmaceutical Market Size to Surpass USD 2.82 trillion by 2033 - Bio Space)

A variety of Tran formative trends are driving this sustained growth. Technological leaps—particularly in artificial intelligence, precision medicine and digital health—are changing the way drugs are discovered, reducing time- to-market and improving patient results. At the same time, growing healthcare infrastructure and improved access to medical services in emerging markets like Asia-Pacific, Latin America and Africa are creating fresh opportunities for growth.

Pharmaceutical Market Share, By Region, 2023²

Another key factor is the heightened focus on research and development, as leading pharmaceutical companies pour significant resources into pioneering therapies. The rise of biologics and biosimilars is changing the way we approach treatment, opening new possibilities for managing chronic and complex conditions.

Overall, the global pharmaceutical landscape is evolving quickly, shaped by innovation, the drive to expand access to medicine and a strong commitment to solving the worlds most pressing medical challenges.

Indian Pharmaceutical Market

Indias pharmaceutical industry is leading the way in global healthcare, capitalizing on its strengths in affordable manufacturing, skilled talent and a well-connected supply network. As of 2024, the industry was valued at USD 58 billion, with expectations to grow to USD 120-130 billion by 2030¹. By 2047, it is anticipated to reach USD 400-450 billion¹, solidifying its role as a key player both locally and internationally.

The growth of Indias pharmaceutical sector is driven by a blend of key factors: a rising demand for healthcare, government policies aimed at boosting domestic API production, significant advancements in biotechnology and Indias stronghold in the generics market. With India ranking third globally in pharmaceutical production, it also leads the world in supplying generic medicines—meeting 40% of the US. markets demand and 25% of the U.K.s. This global leadership is further solidified by an evolving demographic, greater healthcare awareness and an increasing focus on preventive and holistic health.

Structural Growth Drivers and Emerging Trends

Strategic Global Partnerships

Strategic collaborations between Indian and international pharma firms are gaining momentum, aiming to speed up the commercialization of new molecular entities (NMEs) in high- priority fields like oncology and cardiovascular health.

Policy-Driven Momentum

With initiatives like the Production-Linked Incentive (PLI) scheme and the Promotion of Research and Innovation Program, the government is giving a strong push to Indias goal of establishing itself as a global hub for innovation and manufacturing.

Transition to High-Value Therapies

Indian pharmaceutical players are making a deliberate shift toward higher-value opportunities, investing in complex generics, specialty drugs and advanced biologic solutions like biosimilars and novel therapies.

Generative AI Integration

The growing use of Generative AI (GenAI) is raising the bar for operational excellence, helping companies rethink how they discover drugs, run manufacturing, streamline supply chains and customer interactions.

Ascendancy of CDMOs

Indias Contract Development and Manufacturing Organizations (CDMOs) are gaining traction as key players in the biologics and biosimilars sectors, backed by the countrys competitive costs and a proven ability to meet global regulatory standards.

Digital Integration

Digital health is becoming more integrated into everyday healthcare, with the rapid growth of e-pharmacies, telemedicine platforms and AI- enhanced healthcare solutions. This movement is enhancing access to healthcare and making pharmaceutical distribution smoother and more efficient.

R&D and Scientific Innovation

The industry is deepening its commitment to research- led innovation, channeling investments into transformative areas like CAR-T cell therapies, mRNA-based vaccines and complex molecule discovery.

Rising Demand for Chronic Disease Therapies

As the prevalence of chronic diseases rises and healthcare costs climb, the demand for pharmaceutical products within the country continues to grow.

Regulatory Landscape

The regulatory environment is undergoing significant changes to ensure ethical standards and product quality. The launch of the 2024 Uniform Code for Pharmaceutical Marketing Practices (UCPMP) is set to bring greater transparency and accountability to the marketing of pharmaceutical products. Meanwhile, the Central Drugs Standard Control Organization (CDSCO) has been stepping up inspections, resulting in the closure of facilities that fail to meet compliance standards.

Global CDMO Market

Driven by the increasing complexity of pharmaceutical products and the growing need for specialized manufacturing solutions, the global CDMO market for formulations is on an upward trajectory. CRISIL estimates that the market will grow to USD 40-45 billion by 2027, fueled by the ongoing outsourcing trend across the pharmaceutical value chain.

(Source: CRISIL MI&A Research)

Trends and Growth Drivers

Outsourcing as a Strategic Imperative

Outsourcing has become an essential strategy for pharmaceutical and biotechnology companies, offering access to specialized expertise, advanced infrastructure and scalable manufacturing capabilities. This approach accelerates time-to-market, provides operational flexibility and delivers significant cost savings, enabling companies to focus on research, commercialization and expanding their pipelines.

Evolving Regional Landscape

Although North America still leads the market with its solid R&D investments and widespread adoption of advanced therapies, the Asia-Pacific region is quickly gaining traction. With their competitive cost structures, improving regulatory environments and growing pools of skilled talent, India and China are emerging as important centers for global formulation CDMO services.

Technological Advancements

The adoption of automation, AI and data-powered manufacturing is transforming CDMO operations, driving improvements in efficiency, quality control and compliance. As the demand for personalized therapies and biologics continues to rise, the need for cutting-edge, adaptable and specialized manufacturing capabilities becomes even more crucial.

Market Consolidation and Investment Momentum

The CDMO sector is experiencing a wave of consolidation as major players acquire specialized service providers, broadening their service offerings and extending their market reach. At the same time, private equity investments are helping to fuel this growth, providing the capital needed for these companies to scale up and expand strategically.

Quality Control

Pharmaceutical companies are prioritizing regulatory compliance, thorough quality audits and the ability to scale production when choosing CDMO partners. Adhering to rigorous quality standards and ensuring smooth scalability are key factors that drive their outsourcing decisions.

Integrated Solution Provider CDMOs are shifting from being just service providers to becoming integrated solution partners, offering a full spectrum of services from pre-formulation all the way to commercial supply. This transformation ensures smoother project execution, accelerates time-to- market and nurtures long-term, strategic partnerships.

Indian CDMO Market

The Asia-Pacific region continues to emerge as a critical driver of growth in the global CDMO landscape, with India at the forefront of this transformation. Backed by its cost competitiveness, regulatory strength and scientific talent, India is rapidly positioning itself as a global CDMO powerhouse. The Indian formulation CDMO market is projected to expand from USD 15.63 billion in 2023 to USD 26.73 billion by 2028¹ at a CAGR of 14.7%, reflecting strong momentum across development and manufacturing segments.

CDMO Market Forecast by Country: 2023-28 (Value in USD billion)

Country/Region	2023	2028	CAGR
USA	54.21	68.32	4.7%
China	27.12	42.94	9.6%
India*	15.63	26.73	14.7%
Germany	13.63	17.41	5%
France	11.18	13.75	4.2%
The UK	6.02	7.07	3.2%
Canada	5.67	7.88	6.8%
Japan	4.55	5.47	3.6%
Australia	3.52	4.45	4.8%

Indian CDMO Market Key Growth Drivers Cost Advantages

India offers pharmaceutical manufacturing services at about 20% lower costs compared to China, making it an increasingly attractive choice for global outsourcing¹.

Regulatory Compliance

With more than 650 USFDA - approved plants, India has built a solid reputation for compliance with international standards, making it a reliable partner for pharmaceutical businesses around the world¹.

Skilled Workforce

Indias large pool of Englishspeaking scientists, process engineers and quality experts makes it a highly collaborative and technically proficient partner for global pharma companies.

Next-Gen Capabilities

The Indian CDMO ecosystem is evolving, embracing cutting- edge technologies in biologics, personalized medicine and digital manufacturing to meet the growing demand for complex formulations.

Policy Incentives

Government initiatives like Make in India, alongside the Production- Linked Incentive (PLI) schemes for pharmaceuticals, are fostering a strong, supportive environment that encourages ongoing growth and boosts global competitiveness.

Investments in Infrastructure

With continuous upgrades in industrial infrastructure and a focus on building capacity, India is enhancing its ability to expand operations and fulfil global quality demands.

Market Demand and Strategic Positioning

Cost-Efficiency and Regulatory Compliance

Generics and Biosimilars Demand

End-to-End Partnerships

Asia-Pacific Synergy

Indias established expertise in generics and biosimilars has made it a trusted partner, supplying affordable and scalable therapies to the global market.

With end-to-end services that cover everything from formulation development to commercial manufacturing, Indian CDMOs are securing strong, lasting partnerships with pharmaceutical across the globe.

With the healthcare sector booming across the Asia-Pacific, India is enhancing its leadership position in the CDMO market, benefiting from the regions growth.

Market Expansion and Projections

Growth Trajectory

The Indian CDMO market is set to nearly double, growing from USD 22.51 billion in 2024 to USD 44.63 billion by 2029, clocking in a CAGR of 14.7%.

Rising Global Share

Indias growing influence in the global CDMO market is strengthening its reputation as a rising leader in pharmaceutical outsourcing.

Company Overview

FY 2025 is a landmark year for Innova Captab Limited (referred to as Innova, the Company, or We) as it nears the completion of its second decade of operations. Through continuous innovation and operational excellence, we have built a future-ready, fully integrated pharmaceutical Company, committed to delivering value across the healthcare spectrum.

Today, Innova is a reliable partner to more than 200 clients, including many of the largest companies in the Indian Pharmaceuticals Market, with presence extending to 30 international markets. The Companys comprehensive capabilities from branded generics and global formulations to CDMO services are supported by a wide portfolio of 3,300+ products and a domestic distribution network that reaches over 220,000+ pharmacies through more than 6,000+ distributors. Sharon has an established track record in formulation exports to regulated markets and robust API expertise. Sharon has marked our foray into new avenues. Further it has also helped in bringing operational synergies and cost efficiencies.

Further advancing our scale, we successfully commissioned a new greenfield facility in Kathua, Jammu during the year, augmenting our production capacity and enabling a broader product mix to serve evolving customer needs.

Our operations are supported by world-class infrastructure, comprising five advanced manufacturing facilities that encompass nine independent production blocks, approved by leading global regulators including WHO - GMP, EU-GMP and UK-MHRA.

We continue to stay committed to our goal of making high-quality, affordable healthcare more widely available. With innovation as a core strength and a track record of reliable delivery, Innova is prepared for long-term, responsible growth.

CDMO Services and Products

As a preferred CDMO partner for Indias top pharmaceutical companies, including many of the largest industry players, Innova continues to build on its strength. Our CDMO offering, grounded in scale, quality and flexibility, provides end-to-end contract manufacturing solutions tailored to diverse client requirements.

Our extensive portfolio covers a variety of dosage forms, including oral solids, oral liquids, dry syrups, ointments and injectables. The recent commissioning of our greenfield facility in Kathua, Jammu, has broadened our capabilities, adding large-volume potentials and respiratory respules to our offering. This expansion enhances our position in high-growth product categories.

We have dedicated R&D centers that help us invest in creating better formulations and optimizing our processes, ensuring we stay quick, adaptable and compliant. In FY 2025our CDMO vertical saw solid growth, increasing by 6.1% and contributing 53.1% to our overall revenue, which highlights how critical it is to our business.

Domestic Branded Generics

Our domestic formulations business is driven by Univentis Medicare Limited, our wholly owned subsidiary, which continues to strengthen its position in the Indian pharmaceutical market. With a reliable network of 6,000+ distributors and access to 220,000+ touch points nationwide, we ensure that our high-quality, affordable medicines are available across various regions.

With a strategically curated product range and strong market penetration, this vertical has consistently delivered growth. In FY 2025, it posted year-on-year growth of 20.8%, generating Rs. 2,307.03 million in revenue, reaffirming its important role in our overall business results.

International Branded Generics

Innova has made great strides in building a global presence, supplying high-quality generic medicines to 30 markets, primarily in emerging and semi-regulated geographies. In Recently, the Company expanded into regulated markets like the UK and Canada, giving us access to new growth opportunities.

We have always focused on meeting regulatory standards, ensuring product quality and delivering reliably, which has helped us become a trusted name in global healthcare. This year, our international formulations business brought in 1 1,562.84 million, making up 12.6% of our total revenue.

Sharon

Sharon has an established track record in formulation exports to regulated markets and robust API expertise. Sharon has substantially enhanced our capabilities throughout the pharmaceutical value chain.

Sharon has marked our foray into new avenues. Further it has also helped in bringing operational synergies and cost efficiencies. It also strengthens our ability to serve regulated markets with greater agility and control. In FY 2025, Sharon reported revenue of Rs. 1,968.01 million.

Looking ahead, we plan to maximize the leverage provided by Sharons infrastructure, regulatory strength and scientific expertise to scale both our formulations and API businesses.

Unlocking Potential: Kathua Plant and Research & Development Center

In FY 2025, we celebrated the commercialization of our state-of- the-art greenfield manufacturing facility in Kathua, Jammu. Operationalized in January 2025, the facility includes four specialized manufacturing blocks for cephalosporins, penicillin, penem and general categories. This new addition expands our dosage portfolio to now also include large and small volume parenterals and respiratory respule products in addition to oral solids, dry syrups and dry powder injectables.

Having invested more than Rs. 480 crores, the Kathua, Jammu plant is set to be a key driver of future growth, offering the scale, flexibility and regulatory-ready

infrastructure we need. The Kathua, Jammu unit also qualifies for financial incentives under the New Central Sector Scheme (NCSS) for Industrial Development in Jammu & Kashmir. These incentives include a GST- linked incentive amounting to 300% of the investment in eligible plant and machinery and 6% per annum capital interest subvention on loan against eligible capex. These benefits are expected to enhance overall viability of the project and accelerate returns on investment. These incentives will help improve long-term profitability and further strengthen our manufacturing competitiveness.

Innovation is at the core of Innovas approach to long-term value creation. Our R&D capabilities are continually evolving, aligning with global pharmaceutical trends and the needs of our clients. With a DSIR-recognized R&D center in Baddi, Himachal Pradesh and a team of more than 40 scientists and engineers, we are advancing the field of formulation science and driving product differentiation. The center is equipped with cutting-edge infrastructure to address complex development challenges, including immediate release, sustained release, nano-formulations and platforms for enhanced bioavailability. These capabilities support our work with CDMO clients and fuel our own branded generics and international formulations businesses.

Building on our commitment to innovation, we are in the final stages of setting up a second R&D center in Panchkula, Haryana which is expected to be operationalized by H2 FY 2026. This new facility will play a key role in expanding our portfolio of complex generics while fostering closer collaboration with global partners on differentiated, high entry-barrier products. It will greatly strengthen our formulation development capabilities and support the longterm sustainability of our pipeline.

With our enhanced R&D ecosystem and upgraded production capabilities, we are reaffirming our commitment to fostering innovation-led growth, ensuring operational excellence and delivering high-quality healthcare solutions across the globe.

Financial Performance Overview: FY 2024 to FY 2025

As Innova transitioned from FY 2024 to FY 2025, it demonstrated substantial financial growth, further reinforcing its strong market presence and operational prowess.

Revenue Growth: The Companys revenue for FY 2025 grew significantly, rising from Rs. 10,813.05 million in FY 2024 to

Rs. 12,436.76 million. This jump underscores our efficient scalability. This growth underscores strong market demand, strategic execution and sustained customer engagement across key segments. The increase in consolidated revenue from operations was fueled by growth in all business areas.

CDMO grew by 6.1% to Rs. 6,598.88 million primarily due to higher capacity utilization.

Domestic branded generics registered a growth of 20.8% to reach Rs. 2,307.03 million on account of increase in volumes.

International branded generics increased to Rs. 1,562.84 million with a growth rate of 24.7% as reflected in increase of number of products and countries.

The revenue from operations in Sharon is Rs. 1,968.01 million.

Profitability & Margins:

EBITDA Margin:

Improved from 15.4% in FY 2024 to 15.9% in FY 2025, mainly driven by improved gross conversion.

• Profit after Tax (PAT):

Increased from Rs. 943.45 million in FY 2024 to Rs. 1,282.58 million in

FY 2025, due to better EBITDA and savings in finance costs.

With a solid financial foundation and ongoing strategic investments, including the expansion of the Kathua, Jammu plant, Innova is set to continue driving long-term value and sustaining its growth momentum.

Innovas strong and adaptable IT infrastructure forms the foundation of our operational excellence, enabling continuous business operations and compliance. By embedding digital transformation into everything we do, we have built an interconnected technology ecosystem that promotes agility, safeguards data integrity and ensures swift, responsive action across the Company.

With SAP go-live in Sharon, now all our Group companies have SAP- powered ERP system, with which we have ensured smooth integration between manufacturing, finance, supply chain and compliance functions, giving us real-time visibility that drives smarter decision-making. Meanwhile, our use of Laboratory

Information Management Systems (LIMS) and digital documentation tools has fast-tracked our journey to paperless operations, improving quality oversight and regulatory compliance.

Our approach to cybersecurity is built on a solid foundation of multilayered security, ongoing audits, encrypted data and comprehensive disaster recovery systems. Coupled with standardized data backup practices, these safeguards ensure our enterprise assets remain protected. We also keep these defenses sharp, updating them regularly to tackle new challenges in the digital landscape.

Incorporating these key technological enhancements, Innova

Environment, Health and Safety

Sustainability is a core value that shapes the Companys approach to growth. We are focused on reducing our environmental impact by incorporating responsible practices into every step of our value chain. As we expand our manufacturing operations, we stay committed to preserving the planets resources and aligning our growth with the worlds long-term well-being.

Our commitment to energy efficiency is a key element of our environmental strategy. Today, about one-third of our energy needs are met through renewable sources, helping us significantly cut down on carbon emissions. To further improve efficiency, we have introduced Heat Pumps for HVAC hot water and Variable Frequency Drives (VFDs) across pumps and blowers, optimizing energy usage.

Additionally, our switch from diesel to Agro Waste Briquettes in our boilers promotes cleaner energy and encourages sustainable agricultural waste management.

Our waste and water management strategy is designed for the long haul. Each of our facilities includes Effluent Treatment Plants that recycle wastewater for purposes like landscaping, sanitation and cooling. We have also introduced condensate recovery systems that recycle water back into our boilers, which helps to lower our overall use of fresh water. As part of our broader sustainability efforts, we have set an ambitious target to achieve water neutrality by 2030.

We view sustainability as a continuous journey, not a fixed destination. Our commitment is to constantly refine our practices, ensure compliance with environmental regulations and challenge ourselves to redefine what responsible manufacturing can look like. Through these efforts, we aim to generate lasting value for our stakeholders while helping to build a healthier, more sustainable planet.

Innovas Risk Management Policy and Business Continuity Plan are carefully crafted to help us identify, evaluate and mitigate risks, ensuring our operations run smoothly even when challenges arise.

To safeguard the Companys stability, the Board has designated a Business Continuity Management (BCM) team that thoroughly evaluates all potential risks—both business-related and non-business. Our approach is thoughtful and balanced, addressing a wide range of risks, from Strategic and Regulatory to Legal, Financial, Operational and People Risks. The Board regularly reviews these risks and ensures that appropriate mitigation strategies are in place. For more information, our detailed Risk Management Policy is available on: https://www.innovacaptab.com/docs/Risk%20Management%20Policy%20 2025-26.pdf

Below are the primary risks Innova encounters, along with the measures taken to address them.

Key Risks	Mitigation Plan
Competition & Supplier Risk	The Company is focused on building economies of scale into the business. It has strengthened its long-term relationships with customers and developed alternative suppliers to safeguard the raw material supply chain.
Regulatory & Secretarial Compliance Risks	The Company has a framework in place to ensure timely compliance with regulatory and secretarial requirements.
Legal Risks	The legal and compliance team is dedicated to ensuring strict adherence to all relevant regulations. In close collaboration with the Board of Directors and senior management, they work tirelessly to uphold these regulatory standards. Additionally, the Company is in the process of implementing advanced compliance management software, further strengthening our commitment to regulatory excellence.
Financial Risks	The Company has a robust strategy and framework in place to ensure timely compliance with all applicable Acts, statutes, and internal control over financial reporting.
Operational Risks	The Companys facilities are all as per GMP standards. We also house a R&D team which does rigorous checks to ensure the quality and efficacy of the products as per customer standards.

Social Responsibility and Employee Well-Being

We understand that our longterm success is closely linked to the well-being of our people and the communities we serve. Thats why we are dedicated to creating a workplace thats inclusive, ethical and focused on growth—one that supports the welfare of our employees, champions human rights and fosters collective progress.

We have a firm stance against forced labor, child labor and human trafficking, with all our labor practices grounded in fairness and transparency. We promote open

dialogue through structured forums to address both personal and group concerns.

We place health, safety and personal growth at the core of our employee engagement approach. Our ISO 45001:2018 certification reflects our dedication to creating a safe work environment. To keep improving, we provide employees with an average of 40 training and awareness programmes each year, focusing on safety, compliance and enhancing skills.

We believe our responsibility goes beyond the workplace. We are deeply committed to supporting local communities through initiatives in education, healthcare and sustainable livelihoods. These efforts are guided by a strong governance framework, with policies like our Code of Conduct, Whistleblower Policy, Labor and Human Rights Policy and Anti-Discrimination Policy, all reinforcing our dedication to inclusive and responsible growth.

Human Resources

Our team is the driving force behind everything we achieve. As of 31 March 2025, our team comprised 1,950 employees on a standalone basis and 2,914 on a Group level. Together, we work hand-in-hand, united by a common purpose and a commitment to making an impact.

At Innova, we prioritize creating a work environment thats built on respect, inclusivity and support. Whether in the office or across our various locations, we encourage open conversations and strong relationships within our teams. Our goal is to cultivate an atmosphere where everyone feels empowered to share their ideas and take pride in their contributions.

At Innova, hiring talented people is just the beginning. We believe in nurturing their growth every step of the way. Our regular training programs are designed to help employees keep their skills sharp and continue evolving throughout their careers. From technical expertise to leadership training, we equip our teams with the tools and knowledge they need to grow alongside the Company.

We are deeply committed to our employees well-being. The Company actively ensures a safe, positive work environment and consistently explores new ways to make everyone feel more engaged and supported day in and day out. Our focus isnt just on productivity—its about creating a space where people can thrive, do meaningful work, feel truly valued and grow with confidence at every stage of their journey.

Internal Control Systems

Innova has put in place a robust financial control structure that keeps things running smoothly across all our operations. Our governance framework is designed to uphold transparency, protect our assets and manage financial risks effectively. These controls not only help prevent fraud but also identify mistakes, ensuring we stay in line with our internal policies and maintain reliable financial reporting.

A central part of this framework is the regular assessment of control mechanisms through both internal and external audits. These reviews offer valuable insights that help Innova improve its financial systems in line with industry best practices. The audit results and recommendations are thoroughly examined by the relevant Board Committees, ensuring timely corrective actions are taken whenever needed.

Through the ongoing improvement of its financial controls and oversight processes, Innova strengthens its dedication to operational efficiency, regulatory adherence and long-term financial stability.

Cautionary

Statement

The financial statements appearing above are in conformity with the accounting principles generally accepted in India. The statements in the Management Discussion and Analysis Report, which may be considered forward-looking, within the meaning of applicable laws and regulations, have been based on current expectations and projections about future events. The actual results could differ from those expressed or implied. Important factors that could influence the Companys operations include global geopolitical shifts, economic developments within the country, demand and supply conditions in the industry, input prices, changes in Government regulations, tax laws and other factors, such as industrial relations. The Management cannot, however, guarantee that these forward-looking statements will be realized or achieved.