Innova Captab Ltd Management Discussions

GLOBAL ECONOMY

The global economy demonstrated notable resilience in CY 2025, supported by accommodative financial conditions, adaptive supply chains and sustained private sector investment. Despite a complex macroeconomic environment characterized by shifting trade policies, geoeconomic fragmentation, elevated public debt and volatile commodity markets, global growth remained stable. According to the International Monetary Fund (IMF), global GDP growth is estimated at 3.3%¹ for CY 2025, reflecting the economys capacity to absorb external shocks even as growth momentum varied across regions.

Regional Growth Dynamics

Advanced economies are projected to grow at 1.8%¹ in CY 2026 and 1.7% in CY 2027¹, reflecting moderate expansion supported by fiscal measures but constrained by structural headwinds and demographic pressures.

The United States is forecast to grow at 2.4%1 in CY 2026, aided by fiscal stimulus and a favourable policy rate environment, before moderating to 2.0%1 in CY 2027 as near-term tailwinds ease. Other advanced economies are expected to record comparatively subdued growth due to lingering energy price impacts, manufacturing sector pressures and unresolved structural challenges. Emerging market and developing economies (EMDEs) are projected to sustain stronger growth at 4.2%1 in CY 2026 and 4.1%*1in CY 2027.

Inflation Trajectory and Monetary Policy

Global inflation has continued its gradual moderation, emerging as a defining macroeconomic trend in the current period. Headline inflation is estimated at 4.1%¹ in CY 2025 and is projected to ease further to 3.8%1 in CY 2026 and 3.4%¹ in CY 2027, reflecting a steady convergence toward central bank targets across major economies. Indias inflation trajectory is projected to stabilise closer to the policy target following a marked decline in 2025, primarily driven by easing food prices.

Inflationary pressures in the United States have remained relatively persistent, with the pass-through impact of higher tariffs expected to delay full normalization, though core inflation is projected to move closer to the Federal Reserves 2%¹ target by CY 2027. In contrast, inflation across other advanced economies is moderating more steadily, supported by easing energy prices and softer demand conditions. In response, major central banks have adopted differentiated policy stances aligned with domestic inflation and growth dynamics, shaping global capital flows, currency movements and broader financial conditions.

Key Risks and Uncertainties

Trade policy volatility continues to be a key concern, as unresolved issues around export controls, critical supply chains and evolving trade frameworks could disrupt flows, elevate inflation and weigh on growth if tensions escalate.

Fiscal and financial vulnerabilities persist across major economies, driven by elevated sovereign debt, widening deficits and increased sensitivity in bond markets. Any erosion of central bank independence could further weaken market confidence and amplify macroeconomic risks.

Geopolitical tensions remain a significant risk to the global economic outlook. Escalation in existing conflicts or emerging geopolitical fault lines, including heightened tensions in the Middle East involving Iran, could trigger commodity price volatility, disrupt key shipping routes and create uncertainties in energy markets, thereby impacting global supply chains.

Outlook

Looking ahead, the IMF projects global growth at 3.3%¹ in CY 2026 and 3.2%1 in CY 2027 — a nearstable trajectory that signals economic durability while acknowledging the persistence of structural and policy-driven uncertainties. The global economic outlook is thus one of cautious stability — underpinned by measured disinflation, policy adaptability and ongoing investment momentum, yet tempered by structural vulnerabilities, elevated policy uncertainty and the fragility of the current growth drivers.

Sources

1: World Economic Outlook Update, lanuary 2026:

Global Economy: Steady amid Divergent Forces; World Economic Outlook 2026/003

INDIAN ECONOMY

India retained its position as the fastest-growing major economy in FY 2026², demonstrating strong macroeconomic resilience amid global trade fragmentation, geopolitical uncertainty and uneven external demand. According to the Second Advanced Estimates by the National Statistics Office (NSO), real GDP is projected to grow at 7.6%² in FY 2026, accelerating from 6.5%² in FY 2025, marking the fourth consecutive year of India leading global growth among major economies.

Growth momentum strengthened further during the year, with real GDP expanding at a six-quarter high of 8.2%³ in Q2 FY 2026 (July-September 2025), exceeding market expectations and RBI projections. While real GDP at constant prices for the October-December quarter (Q3) of FY 2026 is estimated at Rs84.54 lakh crore, registering a growth of 7.8%, up from 7.4% in Q3 FY 2025 and 7.1% in Q3 FY 2024⁶. The performance was supported by strong domestic demand, resilient consumption and improving investment activity.

Inflation Dynamics and Monetary Policy

Indias macroeconomic environment remained supportive in FY 2026 as inflationary pressures eased significantly. Average headline CPI inflation stood at 3.40% for FY 205-26, the stability in inflation was - driven by disinflation in food and fuel prices. Among major Emerging Market and Developing Economies (EMDEs), India recorded one of the sharpest declines in inflation between 2024 and 2025, with headline inflation falling by around 1.8² percentage points. Monetary policy in FY 2026 was marked by a calibrated easing cycle, as the Reserve Bank of Indias Monetary Policy Committee reduced the policy repo rate in response to moderating inflation. However, elevate Geopolitical tension between Iran and US has impacted, Indias WPI-based inflation rose sharply to a 42-month high of 8.3%⁶ in April, compared to 3.88%⁶ in March, reflecting heightened input cost pressures. The increase was primarily driven by rising prices of mineral oils, crude petroleum, natural gas, basic metals and other manufactured products.

Outlook

Looking ahead, Indias real GDP is projected to grow at 6.8-7.2%² in FY 2027 (Economic Survey 2025-26), supported by resilient domestic consumption, sustained public capital expenditure and continued momentum in manufacturing and services. The Governments long-term development vision under Viksit Bharat targets Indias emergence as a fully developed economy by 2047, with aspirational GDP targets of USD 30-40 trillion⁵ and per capita income levels of USD 15,000-18,000⁵.

PHARMACEUTICAL

INDUSTRY

GLOBAL PHARMACEUTICAL INDUSTRY

The global pharmaceutical industry sustained a phase of calibrated expansion in 2025, navigating a complex operating environment defined by evolving regulatory frameworks, pricing pressures, geopolitical supply chain reconfiguration and accelerating therapeutic innovation. Against these structural forces, the industry demonstrated commendable resilience, supported by disciplined capital deployment, strategic portfolio management and a robust product pipeline across therapeutic categories. The global pharmaceutical market was valued at USD 1,737.97⁷ billion in 2025.

Growth Drivers for Global Pharmaceutical Industry

Therapeutic Demand Driven by Rising Health Conditions

The rising global burden of chronic and infectious diseases encompassing cardiovascular disorders, oncological conditions, metabolic disorders and respiratory diseases remains the primary structural driver, sustaining long-term demand for both branded and generic therapeutic solutions across developed and emerging markets.

Innovation Transforming the Pharmaceutical Landscape

Rapid advancement in biotechnology, precision medicine and novel drug delivery platforms is fundamentally reshaping treatment paradigms and reinforcing the competitive dynamics of the pharmaceutical industry. The expansion of biologies, monoclonal antibodies, cell-based therapies and RNA- based modalities has diversified product portfolios and significantly improved therapeutic specificity.

Rising Adoption of Biologies and Biosimilars

The biologies and biosimilars segment is projected to grow at a CAGR of 7.17%⁷ between CY 2026- CY 2033, propelled by rising adoption of targeted therapies and increasing prevalence of autoimmune disorders and oncological conditions. Regulatory support for biosimilars across key markets has reduced barriers to entry, broadening patient access while sustaining competitive pricing dynamics.

Technology-Driven Innovation

On the digital front, the integration of data analytics within clinical trial frameworks has enhanced patient recruitment efficiency, monitoring accuracy and data interpretation capabilities. These technological advancements are facilitating differentiated product launches and reinforcing the long-term growth potential of the global pharmaceutical market.

Regional Landscape

North America remained the largest pharmaceutical market in 2025, contributing 41.8%⁷ of global revenue, driven by high healthcare spending, a strong biologies and specialty pipeline, advanced regulatory systems and a well-established reimbursement framework. Europe continued to hold a significant share, supported by robust biosimilar capabilities, established pharma clusters and sustained demand from an ageing population.

The Asia Pacific region is expected to record the fastest growth, with a projected CAGR of 7.06%⁷ during CY 2026- CY 2033, fuelled by expanding healthcare access, rising incomes and increasing chronic disease prevalence. India and China are strengthening their roles both as major consumption markets and as strategic global manufacturing hubs, with growing biopharmaceutical capabilities and deeper integration into global supply chains.

Outlook

The global pharmaceutical industry is positioned for sustained medium- to long-term expansion, underpinned by structural demand drivers, continuous therapeutic innovation and broadening access to healthcare services across emerging economies. The market is projected to grow from USD 1,737.97 billion⁷ in 2025 to USD 2,776.74 billion⁷ by CY 2033, at a CAGR of 6.08%⁷. Rising global healthcare expenditure, ageing demographics, the escalating burden of chronic and lifestyle-related diseases and progressive patent expirations opening opportunities for generics and biosimilars are expected to collectively sustain robust demand across the forecast period.

Indian Pharmaceutical Industry

Indias pharmaceutical sector has evolved into one of the most consequential contributors to global healthcare supply, underpinned by a rare combination of scientific capability, cost competitiveness and a deeply integrated manufacturing base. The country accounts for over 20%⁸ of the worlds generic medicine supply by volume, fulfils approximately 55-60%⁸ of global vaccine demand. The domestic market was valued at USD 60 billion⁸ in FY 2025, with industry exports reaching USD 30.47⁹ billion in FY 2025 — a year-on-year increase of 9.4%⁹— reinforcing Indias standing as an indispensable partner in global pharmaceutical trade. The sector contributes 1.72%¹⁰ to national GDP.

Key Growth Drivers

Rising Domestic Disease Burden

Prevalence of diabetes, cardiovascular disorders, oncological and respiratory conditions is generating sustained, long-cycle prescription demand

ICMR-INDIAB estimates 101 million¹² people living with diabetes in India; cardiovascular disease accounts for the largest share of premature mortality

Expanding health insurance coverage under PM-JAY is channelling previously unmet demand into formal healthcare and pharmaceutical consumption

Sources

7; Pharmaceutical Market Size & Share I Industry Report, 2033 10: Press Release: Press Information Bureau

8: Press Release: Press Information Bureau

11: How India is Becoming a Global Leader in Generic Injectables I IBEF

9: Press Release: Press Information Bureau

12: Press Release: Press Information Bureau

Generic and Biosimilar Export Competitiveness

India supplies 40%ⁿ of US generic drug demand by volume

9 Growing capabilities in biosimilars, complex

injectables and peptide APIs are enabling access to premium regulated market segments

CRDMO and Contract Services Growth

Indias CRDMO market, currently estimated at USD 7 billion¹³, is projected to reach USD 14 billion¹³ by CY 2028

9 Global innovators are increasingly outsourcing development, clinical manufacturing and commercial-scale production to India-based CRDMOs

The 2026 patent expiry of GLP-1 drugs like semaglutide (Ozempic/Wegovy) is set to create a high-value opportunity for CDMOs

Regulatory Credibility and Compliance Infrastructure

9 India hosts the highest number of US FDA- compliant pharmaceutical facilities outside the United States

Progressive alignment of CDSCO with WHO-GMP, EU-GMP and USFDA standards is enhancing Indias attractiveness for multinational manufacturing partnerships

9 Regulatory strengthening is accelerating clinical trial activity, reducing approval timelines and improving post-marketing surveillance frameworks

Outlook

The Indian pharmaceutical industry is on a well- defined growth trajectory, with the sector projected to scale from USD 60 billion¹⁴ currently to USD 130 billion¹⁴ by CY 2030 — driven by a qualitative shift towards biosimilars, specialty molecules, CRDMO services and innovation-led product development, alongside continued volume expansion in generics. Export momentum, already evidenced by 9.4%¹⁴ growth in FY 2025, is targeted to accelerate to doubledigit levels in FY 2027.

The European Union — representing a USD 572.3 billion¹⁴ pharmaceuticals and medical devices market — presents a significant incremental opportunity as bilateral trade arrangements mature, while closer engagement with the United States, which accounts for 34%¹⁴ of Indias pharmaceutical exports, is expected to yield improved market access and pricing conditions for Indian manufacturers.

Sources

13: India becoming an attractive option for global pharmaceutical supply chain: Macquarie Report ETPhormo

14: Press Release: Press information Bureau

CONTRACT DEVELOPMENT AND MANUFACTURING ORGANIZATION (CDMO) INDUSTRY

GLOBAL CDMO INDUSTRY

The pharmaceutical industrys relationship with outsourcing has undergone a fundamental structural shift. What was once a tactical cost-management tool has matured into a strategic operating model — one in which CDMOs serve as end-to-end partners across the entire drug lifecycle, from early discovery and process development through clinical trial manufacturing to commercial-scale production. CDMOs now sit at the intersection of pharmaceutical innovation and manufacturing execution, enabling drug sponsors to access advanced capabilities, compress development timelines and redeploy capital towards higher-value activities, without the burden of building or maintaining specialized infrastructure. This transformation is reflected in the markets scale and trajectory. The global CDMO market was valued at USD 255.01 billion¹⁵ in CY 2025 and is projected to grow to USD 273.40 billion¹⁵ in CY 2026.

Role and Value Proposition of CDMOs

CDMOs serve as integrated partners to pharmaceutical and biotechnology companies, offering comprehensive solutions that span both drug development and manufacturing — from initial research through to commercial production. By leveraging CDMO capabilities, pharmaceutical companies can avoid heavy investments in specialized infrastructure, reduce operational complexity and access cutting-edge technologies and regulatory expertise that may not be available in-house.

Service Segmentation

The CDMO market is broadly structured across two primary service categories: Contract Manufacturing Organization (CMO) services and Contract Research Organization (CRO) services. The CMO segment held the dominant market share in CY 2024, driven by growing strategic alliances between pharmaceutical and biotechnology companies and CDMOs for the manufacturing of finished products, APIs and packaging. Within CMO services, API manufacturing accounted for 63.92%¹⁶ of segment revenue in CY

2024, reflecting the critical role of APIs as the efficacydetermining component of pharmaceutical products and the technical complexity that makes CDMO outsourcing preferable to in-house synthesis.

Patent Expiry to CDMO Opportunity

Semaglutide and Liraglutide (uzed in type 2 diabetes, weight management and cardiovascular risk reduction), Sitagliptin (type 2 diabetes), Eliquis (stroke prevention and thrombosis) and Dulaglutide (Trulicity) (type 2 diabetes and cardiovascular risk reduction) including other GLP-1 drugs, among others, are set to mark the beginning of a new phase in the pharmaceutical landscape. The loss of exclusivity is expected to pave the way for a surge in generic and biosimilar competition.

As pharmaceutical companies strive to accelerate growth and innovation, the need to optimize speed, scale and cost efficiency is driving a greater reliance on outsourcing partnerships. This evolving dynamic is expected to translate into stronger demand for CDMO partners, spanning development to commercial manufacturing. Consequently, CDMO players are likely to benefit from improved capacity utilization, deeper client partnerships and enhanced revenue visibility, positioning them as key enablers in this transition.

Key Industry Trends

CDMO Market: Structural Trends Shaping Growth

Trend	Description
Outsourcing Across the Full Value Chain	Pharmaceutical companies — from Big Pharma to biotech startups — are increasingly outsourcing to reduce time-to-market, mitigate risk and cut capital costs. This trend is especially pronounced in biologies, biosimilars and personalized medicines.
	CDMOs offering integrated services from discovery through commercialization are preferred, as one-stop solutions streamline regulatory processes and reduce transfer- related delays.
Advanced R&D Capabilities	Expansion of high-end R&D services across biologies, gene therapies and complex molecules is enabling CDMOs to move up the value chain.
	Adoption of technologies including next-generation sequencing (NGS), computer-aided drug design and continuous manufacturing is accelerating development timelines.
	Standardized, regulatory-aligned development processes reduce time-to-market and strengthen client confidence.
Digitalization and Smart Manufacturing	Al, machine learning, digital twins and process automation are transforming CDMO operations — improving drug candidate screening, optimising batch yields and enhancing real-time decision-making.
	Blockchain and cloud-based manufacturing data systems are improving supply chain traceability and enabling faster regulatory response.
Sustainable and Green Manufacturing	CDMOs are adopting green chemistry principles, energy-efficient equipment and waste-reduction strategies in response to regulatory mandates and stakeholder sustainability expectations.
	Sustainable manufacturing credentials are increasingly factored into pharmaceutical company partner selection criteria.

Outlook

The global CDMO market is poised for sustained expansion, with projected growth from USD 273.40 billion¹⁵ in 2026 to USD 580.72 billion¹⁵ by CY 2034 at a CAGR of 9.90%¹⁵. This growth will be driven by rising complexity in drug development, the proliferation of biologic and advanced therapy pipelines and the continued rationalization of pharmaceutical manufacturing towards asset-light, outsourced models.

INDIAN CDMO INDUSTRY

Indias CDMO sector stands at an inflection point — transitioning from a largely volume-driven, cost-led proposition to a capability- rich, innovation-enabled industry that is progressively competing for higher-complexity mandates from global pharmaceutical innovators. Underpinned by decades of manufacturing experience, a dense network of regulated-market compliant facilities and a deep reservoir of scientific and technical talent, India is no longer simply a lower-cost alternative to Western manufacturing — it has become a destination of active strategic choice for pharmaceutical companies restructuring their global supply chains and development partnerships.

The Indian CDMO market was valued at USD 25.51 billion¹⁷ in 2025 and is projected to reach USD 71.14 billion¹⁷ by CY 2035, growing at a CAGR of 10.80%¹⁷ over CY 2026-CY 2035. This growth — well above the global CDMO average — reflects Indias expanding share of global outsourcing mandates, driven by its simultaneous strengths in generic manufacturing, biosimilar development, API supply and clinical services. India is currently the second-largest market in Asia Pacific for CDMO services, projected at USD 17.48 billion¹⁸ in 2026, trailing only China and is widely expected to close this gap over the medium term as its biologies and CRDMO capabilities mature.

Indias Competitive Positioning in Global CDMO

Indias competitive advantage in the global CDMO market is multi-dimensional, rooted in a combination of structural, regulatory and scientific strengths that few other geographies can replicate at equivalent scale. The country hosts the highest number of US Food and Drug Administration (US FDA)-compliant pharmaceutical manufacturing facilities outside the United States and maintains a growing base of European Medicines Agency (EMA)-inspected and World Health Organization (WHO-GMP) certified sites, providing Indian CDMOs with the regulatory credentials required to manufacture for and supply the worlds most demanding markets. This capability is further reinforced by a strong presence of facilities approved by other leading regulators such as the Medicines and Healthcare products Regulatory Agency (MHRA) and South African Health Products Regulatory Authority (SAHPRA), reflecting Indias ability to consistently meet diverse and stringent global standards.

The Indian CDMO value proposition has been built on three interlocking strengths: manufacturing cost efficiency that is typically lower than Western counterparts, a scientific and engineering talent pool trained across chemistry, biology and regulatory sciences and an established track record in API synthesis and complex formulation development accumulated over decades of generic pharmaceutical exports. These three attributes — cost, capability and credibility — collectively differentiate Indian CDMOs in an increasingly competitive global outsourcing market.

Demand Driver key Opportunities

Indian CDMO Market

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Demand Driver	Market Implication
Patent Cliff and Generic Pipeline Expansion	Blockbuster molecule patent expirations between CY 2024 and CY 2026 have created an estimated USD 4 billion19 annual generic opportunity for Indian manufacturers.
	Indian CDMOs strong ANDA pipeline and established relationships with regulated- market buyers position them to convert patent expiry into outsourcing mandates.
	Rising demand for complex generics — including modified-release, transdermal and combination products — is expanding addressable CDMO revenue per programme.
Biologies and Biosimilar Outsourcing	Significant biologies patent expirations between CY 2024 and CY 2028 are generating demand for biosimilar CDMO services across monoclonal antibodies, recombinant proteins and vaccines.
	Biopharma SHAKTI (Rs10,000 crore20) and targeted public-private investment are accelerating biologies manufacturing infrastructure development.
Global Supply Chain Diversification	Pharmaceutical companies in North America and Europe are actively restructuring supply chains to reduce geographic concentration risk, with India emerging as a primary beneficiary.
	Indias established compliance infrastructure, English-language workforce and time- zone overlap with Europe and partial overlap with the US facilitate seamless programme management.
	Trade frameworks and FTA negotiations with the EU and the US are expected to further reduce frictions and improve market access for Indian CDMO output.
Rise of Clinical Development Outsourcing	Clinical trials in India cost 50% to 60% less than the average cost in the US21
	The proposed development of 1,000+20 accredited clinical trial sites under Indias healthcare infrastructure expansion programme will deepen Indias clinical CRO capabilities.
	Indian CDMOs offering end-to-end services from clinical material manufacturing to regulatory support and commercial scale-up are capturing premium outsourcing relationships.
Domestic Pharma Market Growth	Indias domestic pharmaceutical market, projected to reach USD 130 billion14 by CY 2030, is generating parallel CDMO demand as mid-sized domestic pharmaceutical companies outsource development and manufacturing to focus on marketing and distribution.
	Rising demand for cardiac, anti-diabetic, oncology and specialty formulations is expanding domestic CDMO revenue across therapeutic areas.
	PM-JAY coverage expansion and generic medicine programme (PMBJP) are driving volume demand for formulations, sustaining utilization rates across CDMO facilities.

Outlook

Indias CDMO industry is set to expand at a CAGR of 10.80%¹⁷ through CY 2035 during CY 2026 - CY 2035 and attain a market value of USD 71.14¹⁷ billion by CY 2035, outpacing the global CDMO growth rate and reflecting a deepening share of international outsourcing allocations. The next phase of growth will be defined not by scale alone, but by capability advancement — as Indian CDMOs progressively move into biologies, sterile injectables, cell and gene therapy support and integrated clinical-to-commercial services. Companies that have invested ahead of the curve in advanced manufacturing infrastructure, biologies process development capabilities and robust quality systems will be best positioned to capture the highest-value outsourcing mandates.

COMPANY

OVERVIEW

Innova Captab Limited is an integrated pharmaceutical company engaged in Contract Development and Manufacturing Organization (CDMO) services and Branded Generics. Over the years, our Company has evolved into a trusted partner for leading pharmaceutical companies globally, while simultaneously strengthening its front-end presence across domestic and international markets.

With a diversified and scalable business model, Innova operates across two focused business areas — CDMO Services and Products and Branded Generics. The CDMO business division caters to over 350+ customers, offering end-to-end formulation development and manufacturing solutions across a wide spectrum of dosage forms. The Branded Generics business, supported by a growing portfolio and expanding geographic footprint, enables our Company to directly address healthcare needs across India and multiple international markets.

Our Company has built a comprehensive product portfolio comprising more than 4,200 products and maintains a presence in over 60 countries, with a strong reach of more than 2,50,000 touchpoints across India. This extensive reach enables our Company to ensure timely delivery, sustained market penetration and long-term customer engagement.

Manufacturing Capabilities

Innova operates state-of-the-art manufacturing facilities strategically located across India, including Baddi (Himachal Pradesh), Dehradun (Uttarakhand), Taloja (Maharashtra) and Kathua, Jammu. The Kathua, Jammu facility, commissioned as a greenfield expansion, represents a significant milestone in our Companys growth journey and enhances its multi-dosage manufacturing capabilities. Our Companys facilities are equipped to manufacture tablets, capsules, dry syrups, dry powder injectables, liquid orals, ointments and parenteral products, enabling it to cater to diverse therapeutic categories and client requirements.

The manufacturing infrastructure is supported by robust quality systems and stringent compliance protocols.

Our Company has received key international regulatory certifications, reinforcing its commitment to maintaining global quality standards and strengthening its positioning in regulated and semi-regulated markets.

Research and Development

Innova is a research-driven organization with a dedicated in-house R&D center located at Baddi, Himachal Pradesh. The facility is equipped with pilot-scale development infrastructure and advanced analytical laboratories to support formulation development across multiple dosage forms.

The R&D function focuses on developing differentiated formulations, enhancing bioavailability and expanding product offerings across immediate- release, sustained-release and specialty dosage forms, including super bioavailability capsules, nano-size formulations and modified-release technologies.

The center is supported by a team of 60+ scientists and engineers, who work across formulation development, analytical research and process optimization. Through continuous investment in product innovation and pipeline expansion, our Company remains committed to addressing evolving therapeutic demands and strengthening its long-term competitive positioning. We are also establishing an upcoming R&D facility in Panchkula, Haryana to strengthen our innovation capabilities, accelerate product development and support future growth.

Business Areas

Innova Captab operates through two focused and complementary business areas — CDMO Services & Products and Branded Generics. This dual-engine model provides revenue diversification, operational flexibility and longterm scalability, enabling our Company to balance institutional manufacturing strength with front-end market presence.

CDMO Services & Products

The CDMO business constitutes a key driver of our Companys operations, supporting a substantial share of its revenue base. Innova serves over 350+ customers, including established pharmaceutical companies, offering end-to-end formulation development and manufacturing services.

Its capabilities span a wide range of dosage formats, including tablets, capsules, dry syrups, dry powder injectables, liquid orals, ointments and parenterals, supported by integrated expertise across development, scale-up, commercial manufacturing and regulatory services, ensuring efficient and cost- effective delivery.

Branded

Generics

The Branded Generics business anchors our Companys market-facing operations across both domestic and international geographies. Leveraging a steadily expanding portfolio and a well-entrenched distribution ecosystem, Innova caters to diverse therapeutic and dosage forms, addressing evolving prescription needs while enhancing access to quality healthcare solutions.

With a presence spanning India and several global markets, the business is supported by a robust network of distributors and stockists. Its growth momentum is driven by calibrated geographic expansion, continuous portfolio augmentation, focused brand-building and marketing initiatives.

Operational Highlights

Achieved strong growth across both business areas, with CDMO growing 23.8% YoY in FY 2026, while branded generics delivered 51.4% YoY growth in FY 2026

Strengthened global footprint, with exports contributing 31.3% in FY 2026, driven by enhanced client engagement, driven by deeper partnerships with existing customers and onboarding of new CDMO clients

Continued expansion of manufacturing capabilities, with the Kathua, Jammu facility commencing operations and progressing steadily in ramp-up

Achieved key regulatory milestones, including UK- MHRA approval for Baddi and PIC/S certification for Kathua, Jammu, strengthening access to regulated markets

Focused on portfolio expansion, geographic diversific ation and improved product mix to drive sustained growth

Financial Performance Overview

Revenue from operations surged 31.1% YoY to Rs 1,630.02 crore in FY 2026 from Rs 1,243.68 crore in FY 2025, driven by robust growth across key business segments and sustained market traction EBITDA increased 26.3% YoY to Rs 250.34 crore in FY 2026 compared to Rs 198.20 crore in FY 2025, reflecting operational excellence, improved efficiencies and disciplined execution

Profit after tax rose 9.9% YoY to Rs 140.92 crore in FY 2026 from Rs 128.26 crore in FY 2025, underlining the Companys resilient earnings profile and consistent value creation.

Margins remained stable during the year, supported by operating leverage, an improved product mix and disciplined cost management

Strong earnings trajectory underpinned by scale benefits and efficient utilization of resources across operations

Our Company strengthened its market presence through expanding exports, growing customer engagement and a diversified product portfolio, reinforcing its long-term growth trajectory.

Revenue from Operations (in Rs Crore)

Particulars	FY 2024	FY 2025	FY 2026
Revenue from Operations	1,081.31	1,243.68	1,630.02

EBITDA and EBITDA Margins (in Rs Crore & %)

Particulars	FY 2024	FY 2025	FY 2026
EBITDA	166.94	198.20	250.34
EBITDA Margin (%)	15.4%	15.9%	15.4%

Profit After Tax (PAT) and PAT Margins (in Rs Crore & %)

Particulars	FY 2024	FY 2025	FY 2026
PAT	94.35	128.26	140.92
PAT Margin (%)	8.7%	10.3%	8.6%*

"Includes impact of fixed costs of Kathua, Jammu facility

Sales of Goods and Services outside India

Particulars	FY 2024	FY 2025	FY 2026
Sales Outside India (% of Revenue)	23%	26%	31%

Return Ratios

Particulars	FY 2024	FY 2025	FY 2026
ROE (%)	11.4%	13.4%*	12.9%*
ROCE (%)	14.3%	13.6%*	14.5%*

"Includes impact of fixed costs of Kathua, Jammu facility

Efficiency & Working Capital

Particulars	FY 2024	FY 2025	FY 2026
Fixed Asset Turnover Ratio (FATR)	1.7x	1.6x	2.0x
Fixed Asset Turnover Ratio (FATR) (Ex - Kathua, Jammu)	3.5x	4.0x	4.0x
Working Capital Days	84	103	101

Information Technology

Information Technology continues to play a critical role in enhancing operational efficiency, ensuring regulatory compliance and enabling scalable growth across Innova Captabs integrated business model. As our Company expands its manufacturing footprint and strengthens its CDMO and Branded Generics business division, digital enablement remains a key strategic lever. In line with this, our Company is undertaking an upgrade to SAP S/4HANA, the latest version of SAP, to further strengthen its digital backbone.

Integrated ERP and Process Automation

Our Company operates on an integrated Enterprise Resource Planning (ERP) platform that connects manufacturing, procurement, quality control, finance, inventory and distribution functions. This integration enhances real-time visibility across operations, improves planning accuracy and strengthens internal controls.

With the commissioning of the Kathua, Jammu greenfield facility, IT systems were implemented in alignment with global compliance standards, ensuring seamless integration with existing operations. Automation across production planning, batch tracking and quality documentation has improved traceability and reduced manual intervention.

Manufacturing Digitalization

Technology deployment across manufacturing units supports process standardization, improved yield management and enhanced compliance monitoring. Digital production records, automated data capture and system-driven validation protocols strengthen data integrity and regulatory preparedness. With the successful SAP go-live at Sharon, all Group companies are now operating on an SAP-powered ERP platform. This also marks Sharons first full year of successfully implementing and operating the ERP system.

Our Company continues to upgrade its IT infrastructure to support multi-dosage capabilities and higher production volumes, particularly as capacity utilization increases at the Kathua, Jammu facility.

Data Security and Governance

Recognising the critical importance of data integrity in pharmaceutical operations, Innova maintains robust IT governance frameworks. Regular system audits, controlled access protocols and data backup mechanisms safeguard business continuity and protect sensitive information.

Environment, Health and Safety

Innova Captab remains committed to maintaining the highest standards of Environment, Health and Safety (EHS) across its manufacturing operations. Our Company adheres to applicable environmental regulations and industry best practices to ensure responsible manufacturing processes. Continuous monitoring of emissions, effluent treatment and waste management systems is undertaken to minimise environmental impact, while periodic audits and compliance reviews strengthen operational discipline.

Health and safety of employees remain a core priority.

Our Company fosters a culture of safety through structured training programmes, standard operating procedures and preventive risk assessments across facilities. Regular safety drills, equipment inspections and adherence to GMP- compliant operational protocols help mitigate workplace hazards and promote a safe working environment.

Emphasis is placed on proactive incident reporting and corrective action mechanisms to ensure continuous improvement.

With the expansion of manufacturing capabilities, including the commissioning of the Kathua, Jammu facility, our Company has integrated advanced safety infrastructure and automation to enhance operational reliability. Dedicated EHS teams oversee implementation of safety frameworks, energy conservation initiatives and resource optimization practices. Innova Captab continues to strengthen its EHS systems to support sustainable growth while safeguarding employees, communities and the environment.

Risk Management and Mitigation

Innova Captab has established a structured and forward-looking risk management framework to safeguard its strategic objectives and ensure sustainable growth. The framework enables systematic identification, assessment and mitigation of risks across operational, financial, regulatory and strategic domains. Risk oversight is embedded within our Companys governance architecture, with periodic reviews by senior management and the Board to ensure responsiveness to evolving internal and external business conditions.

Key Risk	Mitigation Measures
Competition and 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 and Compliance Risks	The Company has a framework in place to ensure timely compliance with regulatory and secretarial requirements. The Company had also continued to upgrade and maintain its compliance process through a third-party compliance tool. The compliances were regularly reviewed by Senior Management and all mandatory disclosures were published on the Companys website in timely manner. The Company had ensured prompt and timely implementation of changes and updates arising from the evolving regulatory environment. These updates were tracked both internally and through external consultants and auditors, who remained informed of all regulatory developments relevant to the Company.
Legal Risks	The legal and compliance team is dedicated to ensure 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. The Company had implemented a litigation tracker to monitor all ongoing legal matters. Legal notices were regularly reviewed and guidance was sought from external consultants to ensure appropriate responses and compliance. Additionally, an agreement tracker was maintained for customer contracts and all legal matters were routed through the appointed consultants for review and finalization. This framework enabled the Company to maintain effective oversight and control over its legal risk exposure.
Financials Risks	The Company has robust strategy and framework in place to timely Compliances of all applicable Acts, Statutes and Internal Control over Financial Reporting. The Company had reaffirmed its internal financial controls and standardized quarterly closings to ensure full compliance.
Operational Risks	The Company has established comprehensive Standard Operating Procedures (SOPs covering all critical operations, fully aligned with Good Manufacturing Practices (GMP) and the regulatory requirements of global authorities and CDMO customers. Compliance is reinforced through regular audits by regulators and customers, ensuring sustained adherence to applicable standards. Operations and production planning are structured to support business continuity and operational resilience, supported by a robust Business Continuity Plan (BCP) to manage unforeseen disruptions. All procedures and quality controls are thoroughly documented to minimize risk and ensure consistent delivery. Third party risks are mitigated through structured due diligence and clearly defined service agreements. Ongoing training programs strengthen compliance awareness and operational excellence, reflecting the organizations continued commitment to regulatory compliance, quality and audit readiness.

Human Resources

Human capital remains a cornerstone of Innova Captab growth and operational excellence. As of FY 2026, our Company employs over 2,298 employees on a standalone basis and 3,387 on a Group level. The workforce comprises experienced scientists, engineers, quality professionals, commercial teams and skilled shop-floor personnel who collectively support our Companys integrated CDMO and Branded Generics operations.

Innova fosters a performance-driven and compliance- oriented culture supported by structured training programmes, technical skill enhancement and leadership development initiatives. With expanding manufacturing capacities and increasing product complexity, continuous capability building across production, quality, regulatory and commercial functions remain a strategic priority. Our Company emphasises employee engagement, workplace safety and merit-based growth to attract and retain talent, thereby strengthening organizational resilience and long-term competitiveness.

Internal Control Systems

Our Company has established adequate internal control systems commensurate with the size and nature of its operations. These controls ensure the orderly and efficient conduct of business, safeguarding of assets, accuracy of financial reporting and compliance with applicable laws and regulations. Standard operating procedures, authority matrices and system-driven controls are embedded across functions, supported by periodic internal audits and management reviews. Observations arising from audit processes are addressed through structured corrective and preventive action mechanisms to strengthen governance standards.

Cautionary Statement

Statements in the Management Discussion and Analysis describing our Companys objectives, projections, estimates and expectations may constitute forward-looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to various factors including economic conditions, regulatory changes, input cost fluctuations, competitive pressures and other risks beyond our Companys control. Our Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or developments.