Innovassynth Technologies India Ltd Management Discussions

(Pursuant to Schedule V, Part B of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015)

1. INTRODUCTION

Financial Year 2025-26 marks a defining year in the evolution of Innovassynth Technologies (India) Limited ("Innovassynth", "the Company" or "your Company").

The C ompany has undergone a significant transformation from its earlier structure into an operating enterprise focused principally on manufacture of specialty chemicals and pharmaceutical intermediates.

The S cheme of Merger by Absorption was approved by the National Company Law Tribunal ("NCLT") vide order dated November 14, 2025, read with the rectification order dated November 26, 2025. The Scheme became effective upon filing of the NCLT order with the Registrar of Companies on December 19, 2025. Consequent to the effectiveness of the Scheme, the Company also changed its name from Innovassynth Investments Limited to Innovassynth Technologies (India) Limited.

A ccordingly, FY26 should be viewed as a transition and foundation-building year for the Company.

The significance of the merger extends beyond the accounting consolidation of businesses. It has brought an operating manufacturing platform, manufacturing assets, technical capabilities, employees, products and market opportunities within the listed-company structure.

The c omparative financial information for FY25 has been restated, wherever applicable, to reflect the accounting impact of the merger Consequently, while the reported financial numbers provide a basis for comparison, stakeholders should also consider the substantial change in the Companys business profile, asset base, capital structure and operating scale.

Management believes that the transformation provides the Company with a stronger platform from which to participate in the long-term growth of Indias specialty chemicals and pharmaceutical manufacturing ecosystem.

2. MANA GEMENTS PERSPECTIVE

The C ompany views the present phase as an important opportunity to build a technology-driven, customer-centric and globally relevant manufacturing enterprise.

The sp ecialty chemicals and life sciences industries are undergoing significant structural transformation. Global customers are increasingly seeking resilient supply chains, reliable manufacturing partners and specialised capabilities that can support product development, scale-up and commercial supply. At the same time, India continues to strengthen its position as an important manufacturing and innovation hub for pharmaceuticals, specialty chemicals and advanced materials.

Management believes that these trends create a favourable long-term environment for companies capable of combining scientific expertise, process-development capabilities, manufacturing excellence and customer responsiveness.

Howe ver, industry growth alone does not guarantee value creation. Sustainable growth requires the ability to consistently convert market opportunities into commercial success through customer engagement, technology development, process innovation and reliable execution.

The C ompanys focus therefore remains on strengthening customer relationships, expanding product opportunities, developing scalable manufacturing capabilities, improving capacity utilisation and enhancing operational efficiency. Over time, management believes that disciplined execution across these areas can translate into stronger profitability, improved cash generation and sustainable long-term returns for stakeholders.

A s Innovassynth progresses through its next phase of growth, management remains committed to investing in capabilities, infrastructure, quality systems and talent development while maintaining a balanced approach towards growth, operational discipline and capital allocation.

3. INDUS TRY STRUCTURE AND DEVELOPMENTS

Glob al Economic Environment

The global economic environment during FY26 remained resilient but increasingly complex.

Global businesses continued to operate against a backdrop of geopolitical tensions, changing trade policies, supply-chain realignment, energy-price volatility, inflationary pressures and differing monetary-policy cycles across major economies.

F or manufacturers operating in globally integrated chemical and pharmaceutical value chains, these developments have increased the importance of supply-chain resilience, reliable sourcing, manufacturing continuity, quality assurance and geographical diversification.

B eyond supply-chain realignment, global pharmaceutical and chemical markets continue to move towards greater product complexity, higher quality standards and increased outsourcing of specialised manufacturing activities. Customers increasingly seek partners capable of supporting process development, scale-up, regulatory compliance and commercial manufacturing.

F or Indian specialty chemical and pharmaceutical-intermediate manufacturers, these developments present both opportunities and challenges. As global customers diversify supply chains and seek reliable manufacturing partners, supplier selection is increasingly driven by technical capability, quality systems, regulatory compliance, manufacturing flexibility and continuity of supply. Companies that can consistently deliver across these parameters are expected to be better positioned to participate in evolving global value chains.

Indian Economic Environment

India c ontinued to demonstrate comparatively strong economic momentum during FY26.

The r esilience of domestic consumption, continued public investment, improving manufacturing activity, infrastructure development and Indias growing integration with global supply chains remain important structural supports for the economy.

India s expanding pharmaceutical and specialty chemical sectors, together with its strong scientific talent base, established manufacturing capabilities and increasing participation in global value chains, continue to strengthen the countrys position as a preferred destination for chemical and pharmaceutical manufacturing.

F or Innovassynth, Indias significance lies not only in its growth as a domestic market but also in its emergence as a globally competitive manufacturing base. The countrys established pharmaceutical ecosystem, process chemistry expertise, technical talent pool and improving infrastructure provide a strong platform for companies seeking to serve international customers and participate in global supply-chain diversification initiatives.

S pecialty Chemicals and Pharmaceutical Intermediates

The global chemical industry continues to evolve from scale-driven manufacturing towards technology-led and capability-intensive business models. Increasingly, competitive advantage is determined not only by manufacturing capacity but also by specialised chemistry expertise, process-development capabilities, quality systems, regulatory compliance and the ability to support customers across the product lifecycle. Within this landscape, specialty chemicals and pharmaceutical intermediates represent attractive segments characterised by higher entry barriers, stringent quality requirements and deeper customer engagement. Unlike commodity chemicals, these products are often developed for specific applications and require significant process know-how, reliable manufacturing execution and long-term supply commitments.

India has emerged as an important participant in the global specialty chemicals and pharmaceutical manufacturing ecosystem, supported by a large scientific talent pool, established chemical infrastructure, process-development expertise and strong pharmaceutical manufacturing capabilities. As customers increasingly seek reliable and technically capable supply partners, Indian manufacturers possessing specialised capabilities are well positioned to strengthen their participation in global value chains.

Lif e Science and Advanced Modalities

The biopharmaceutical industry continues to witness increasing investment in advanced therapeutic modalities, including Life science based_platforms.

Industry estimates indicate that the global oligonucleotide therapeutics market is expected to grow from approximately US$7.2 billion in 2025 to approximately US$17.7 billion by 2030, reflecting a CAGR of nearly 20%. This growth is supported by expanding clinical pipelines, increasing commercial adoption and continued investment by global pharmaceutical and biotechnology companies in RNA-based medicines. ? R ecent industry analyses also identify nucleic-acid therapeutics among the fastest-growing emerging drug modalities. DNA and RNA therapeutics recorded approximately 65% growth in projected pipeline revenues, while RNAi therapies continued to demonstrate strong expansion in pipeline value and clinical activity.

The gr owing clinical and commercial acceptance of these modalities is creating demand for specialised Life science building blocks, intermediates, reagents and manufacturing partners possessing relevant chemistry expertise.

A s a manufacturer of Life science related intermediates, Innovassynth participates in several critical components of the Life science value chain.

Supply Chain Diversification

Global supply chains continue to undergo structural reconfiguration as customers seek greater resilience, operational flexibility and supply continuity. While geographical diversification remains an important consideration, supplier selection is increasingly driven by capability, quality, compliance standards and reliability rather than manufacturing location alone.

C ustomers operating in pharmaceutical, biotechnology and specialty chemical markets increasingly evaluate suppliers on parameters such as technical expertise, process-development capabilities, manufacturing flexibility, regulatory compliance, quality systems and continuity of supply. As a result, supply-chain diversification is evolving from a geography-based strategy into a capability-based opportunity.

C ompanies that can consistently deliver specialised products, robust quality systems and dependable manufacturing performance are expected to be better positioned to capture opportunities arising from these structural shifts.

Inno vassynths strategy remains focused on strengthening these core capabilities while building long-term customer relationships across Life Sciences and Specialty Chemicals.

4. B USINESS OVERVIEW

Pr oduct Portfolio

Inno vassynth operates across the life sciences and specialty chemicals sectors, providing a range of products and manufacturing solutions serving pharmaceutical, biotechnology and industrial chemical value chains.

Within the life sciences segment, the Company manufactures specialised building blocks, and related intermediates.

The sp ecialty chemicals portfolio includes ALD/CVD precursors, organometallic compounds, catalysts, donors, ligands, reagents and aroma chemicals serving applications across pharmaceuticals, electronics, advanced materials and industrial chemicals.

Busine ss Model and Customer Engagement

The C ompanys business model is built around scientific expertise, process development, scale-up capability and manufacturing excellence. Inno vassynth serves customers through a combination of portfolio products, custom synthesis assignments and contract research development and manufacturing (CRDMO) engagements.

Man y customer engagements begin at the development stage and subsequently progress through pilot-scale and commercial manufacturing. This enables the Company to build deeper customer relationships and create long-term manufacturing opportunities.

The C ompany develops manufacturing processes primarily through internally developed routes and process optimisation capabilities while also supporting customer-specific technologies where applicable.

C ustomer Profile and Market Presence

Inno vassynth serves customers across the life sciences and specialty chemicals sectors.

Within life sciences, the customer base includes focused CDMOs, global pharmaceutical companies, biotechnology firms and participants across the Life science therapeutics value chain. The company is also working with new products and companies in the other advanced therapeutics segments.

The sp ecialty chemicals business serves customers across petrochemicals, polyolefins, specialty materials, semiconductors, electronics and industrial chemical sectors.

The C ompany maintains a highly export-oriented business model, with approximately 85-90% of revenue generated from customers in North

America and Europe.

Manuf acturing, Technology and Innovation Capabilities

Inno vassynths integrated development and manufacturing platform represents a key competitive strength and supports its business across both Life Sciences and Specialty Chemicals.

The C ompanys principal manufacturing and development facility at Khopoli, Maharashtra, spans more than 60 acres and houses manufacturing infrastructure with aggregate reaction capacity exceeding 250 KL. The flexible manufacturing setup supports laboratory development, pilot-scale production and commercial manufacturing, enabling efficient scale-up of products developed through custom synthesis and CDMO engagements.

Supp orting these capabilities is a dedicated R&D infrastructure spanning over 24,000 sq. ft., equipped with development laboratories, analytical laboratories and technology-transfer facilities. A team of more than 80 scientists and technical professionals works closely with manufacturing, quality and analytical teams to facilitate seamless transfer of processes from laboratory development to commercial production.

R esearch and development efforts focus on route scouting, process optimisation, yield enhancement, impurity control, cost reduction and continuous process improvement. This integrated approach enables the Company to support customers throughout the product lifecycle, from early-stage development through commercial manufacturing.

Management believes that the combination of scientific expertise, process-development capabilities and manufacturing flexibility positions Innovassynth to address evolving customer requirements and pursue growth opportunities across specialised and technology-driven markets.

5. B USINESS PERFORMANCE REVIEW

FY26 r epresented a year of transition following the merger and integration of the operating business into the listed company structure. The C ompany maintained a strong export orientation and continued serving customers across both life sciences and specialty chemicals despite challenging industry conditions experienced across certain segments.

FY26 c ontinued to be influenced by the after-effects of industry-wide inventory adjustments and demand moderation experienced across segments of the Life science supply chain in recent years. While these conditions impacted customer ordering patterns and capacity utilisation during first half of the year, the underlying long-term fundamentals of the sector remained intact.

The C ompany witnessed a notable improvement in business momentum during the latter part of FY26. Customer engagement strengthened, order inflows increased and demand for key Life science building blocks improved, resulting in a healthy level of open purchase orders and improved visibility entering FY27.

During the financial year ended March 31, 2026, the Company recorded a total income of Rs. 10,295.93 lakh as compared to Rs. 10,009.07 lakh for the six-month period ended March 31, 2025.

The financial year under review represents the first full year of operations of the acquired business following the merger by absorption, whereas the previous period comprised six months of operations. Consequently, the financial results for FY 2025-26 are not directly comparable with those of the previous period and should be considered in the context of the differing periods of operation.

During the year, the Company continued the integration and consolidation of the acquired business and focused on strengthening its operational framework across its business segments. The Company undertook measures aimed at enhancing operational efficiencies, optimizing resources, strengthening customer engagement, and supporting business growth.

The Directors believe that the integration of the acquired business has further strengthened the Companys operational capabilities and market position. The Company remains focused on improving its operational performance and pursuing opportunities for sustainable growth while creating long-term value for its stakeholders.

The details of the merger by absorption and the related accounting treatment have been appropriately disclosed in the notes forming part of the Audited Financial Statements for the financial year ended March 31, 2026.

FINANCIAL PERFORMANCE

Rs. In Lakhs

Particulars	FY 2025-26	FY 2024-25
Total Income	10,295.93	10,009.07
Total expenses	12,759.04	7,704.55
EBITDA	(2,463.11)	2,304.52
EBITDA margin	(24%)	23%
Depreciation	788.06	388.30
Finance	722.77	353.23
Profit Before Tax(PBT)	(3,973.93)	1,562.99
Tax	(1,095.15)	(451.52)
Profit After Tax(PAT)	(2,878.78)	2,014.50
Profit After Tax(PAT) Margin	(27.96%)	20.13%

Not e: The figures for FY 2024-25 represent the financial results for six months and have been presented for comparative purposes. The FY 2024-25 figures have been restated pursuant to the merger, which became effective on December 19, 2025.

Op erational Highlights

During FY26, the Company:

• Successfully completed major customer audits by an life science focused CDMO and a large global aggregator.

• S ignificant facility upgrades and enhancements are underway at the Khopoli manufacturing site.

• R etained the EcoVadis Gold Rating for the second consecutive year.

• Successfully completed the Responsible Care audit for its multipurpose manufacturing facility.

• Implemented Electronic Document Management Systems (EDMS) and Chromeleon integration across quality-control operations.

6. OPPORTUNITIES AND THREATS

Opportunities

• Growth in nucleic-acid-based therapeutics and life science manufacturing.

• R ecovery in customer demand across the life science supply chain.

• C ontinued supply-chain diversification by global customers.

• Emerging opportunities in advanced materials and semiconductor-related chemistries.

Threats

• Delays or setbacks in customer development programmes.

• Raw-material price volatility and logistics disruptions.

• E volving regulatory requirements.

• F oreign exchange fluctuations.

• T echnology shifts and changing customer requirements.

7. RISK S AND CONCERNS

The Company operates in sectors influenced by technological developments, customer demand cycles, evolving regulations and economic conditions.

K ey risks include:

• Demand fluctuations in the Life Sciences and specialty chemicals markets.

• C ustomer and project concentration risks associated with development-stage programmes.

• Manufacturing and operational risks arising from specialised chemical processes.

• Raw material availability and pricing risks.

• F oreign exchange exposure due to significant export revenues.

• R egulatory and environmental compliance requirements.

• T alent attraction and retention risks.

• Information security and intellectual-property protection challenges.

Management continuously monitors these risks and maintains mitigation strategies through diversification, process excellence, strong quality systems, customer engagement and operational discipline.

8. OUTLOOK

The C ompany believes that the long-term outlook for both Life Sciences and Specialty Chemicals remains favourable.

Management remains encouraged by improving demand trends within the life science value chain. Customer engagement strengthened during FY26, order inflows improved and the Company entered FY27 with healthy open purchase orders and improved business visibility.

The gr owing focus on Life science based therapeutics, continued demand for specialised chemistry solutions and increasing outsourcing development and manufacturing activities support a favourable long-term environment.

In S pecialty Chemicals, pilot-scale projects and development-stage opportunities provide avenues for future growth and portfolio expansion The C ompany expects CDMO activities to remain an important growth driver while continuing to develop selected high-value, low-specialty chemical products.

In vestments in GMP-compliant manufacturing capabilities are expected to strengthen the Companys ability to participate in regulated and higher-value market segments.

While near-term conditions may continue to be influenced by customer programme timelines, raw-material volatility and broader economic factors, management remains confident in the Companys long-term growth prospects.

9. HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The C ompany believes that its employees are a key driver of innovation, operational excellence and sustainable growth.

A s of FY26, Innovassynth employed approximately 280 personnel across manufacturing, research and development, quality, engineering, supply chain and corporate functions.

Emplo yee development remains a priority through structured learning, technical training, leadership development and safety The Company conducted extensive capability-building initiatives during the year covering technical excellence, quality systems, EHS practices, regulatory requirements and professional development.

The C ompany remains committed to employee well-being through occupational health programmes, safety initiatives, health coverage and employee engagement programmes.

Industrial relations remained cordial and harmonious throughout the year. The Company did not experience any industrial disputes, strikes, lockouts or work stoppages during FY26.

10. HEAL TH, SAFETY, ENVIRONMENT AND SUSTAINABILITY

Inno vassynth is committed to conducting its operations in a safe, responsible and environmentally sustainable manner.

Health, safety and environmental stewardship remain embedded in operational decision-making, manufacturing activities and growth initiatives.

The C ompany maintains management systems certified to ISO 9001:2015, ISO 14001:2015, ISO 45001:2018 and ISO 27001:2022.

The C ompanys facilities are supported by effluent treatment, water recycling and Zero Liquid Discharge infrastructure. Waste reduction, recycling, pollution prevention and resource efficiency remain key focus areas.

The C ompany retained its EcoVadis Gold Rating during FY26 and continues to strengthen its sustainability efforts through Responsible Care implementation and alignment with science-based sustainability initiatives.

Management believes that responsible manufacturing, process safety, environmental stewardship and employee well-being are essential elements of long-term value creation and sustainable business performance.

Certain statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations or predictions may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various economic, regulatory, competitive and other factors beyond the Companys control.