Lasa Supergenerics Ltd Management Discussions

For the Financial Year Ended March 31, 2026

Forward-Looking Statement

This Management Discussion and Analysis ("MD&A") contains forward-looking statements that reflect the current expectations of the management of Lasa Supergenerics Limited regarding future events, business performance, industry trends and financial results. These statements are based on assumptions, estimates and expectations which involve known and unknown risks and uncertainties. Actual results may differ materially from those expressed or implied due to factors including changes in economic conditions, government policies, regulatory developments, competition, technological advancements, foreign exchange fluctuations, supply chain disruptions, raw material availability and other factors beyond the Companys control. The Company undertakes no obligation to publicly update or revise any forward-looking statements except as required under applicable laws.

The global economy remained resilient during 2025 despite geopolitical uncertainties, elevated interest rates and continuing trade disruptions. According to the International Monetary Fund (IMF), global economic growth is expected to remain around 3.0% in 2026, supported by moderating inflation, improving financial conditions and gradual recovery in global trade. While inflation has eased across several advanced and emerging economies, geopolitical tensions, protectionist policies and climate-related disruptions continue to pose downside risks. Governments and central banks are increasingly focusing on fiscal prudence, productivity enhancement and sustainable economic growth.

The global pharmaceutical industry continues to demonstrate strong long- term fundamentals. Worldwide pharmaceutical spending is expected to exceed US$ 2 trillion by 2028, driven by increasing healthcare expenditure, ageing populations, rising prevalence of chronic diseases, biosimilars, specialty medicines and digital healthcare solutions. Artificial Intelligence (AI), advanced manufacturing technologies, supply chain digitalization and personalized medicine continue to reshape the industry. Emerging markets, particularly Asia- Pacific, Latin America and Africa, are expected to contribute significantly to future growth.

India continues to remain among the fastest- growing major economies globally. The Indian economy is expected to register GDP growth of around 6.3% - 6.7% during FY 2026- 27, supported by strong domestic consumption, sustained government capital expenditure, infrastructure development, manufacturing expansion and stable financial markets. Continued policy reforms, digital transformation, increasing foreign investments and easing inflation are expected to support long- term economic growth.

India continues to be the third- largest pharmaceutical producer by volume and among the largest suppliers of generic medicines globally. The Indian pharmaceutical market is expected to reach approximately US$130 billion by 2030, driven by increasing domestic healthcare demand, export growth, government initiatives such as the Production Linked Incentive (PLI) Scheme, expanding biosimilars segment and rising investments in research and development. Indias competitive manufacturing capabilities, skilled workforce and regulatory compliance continue to strengthen its global position.

The global Active Pharmaceutical Ingredient (API) market continues to witness healthy expansion owing to increasing demand for generic medicines, biologics and specialty pharmaceuticals. The market is projected to grow at a CAGR of approximately 7% - 8% over the next five years. India remains one of the worlds leading API manufacturing hubs, accounting for nearly 8% of global API production. Government initiatives encouraging domestic manufacturing, increasing DMF filings, capacity expansion and reduced dependence on imports are expected to support sustained growth of the Indian API industry.

FY 2025- 26 was a challenging year for Lasa Supergenerics Limited due to a fire incident at one of the Companys manufacturing facilities, which resulted in the closure and suspension of operations at the affected unit. The disruption significantly impacted production capacity, sales, customer supplies and overall business operations during the year.

The interruption in manufacturing activities, coupled with the continued burden of fixed operating costs and expenses related to restoration and other consequential activities, adversely affected the Companys profitability. Consequently, the Company incurred a loss during FY 2025- 26.

Following the incident, the Company initiated assessment and restoration activities and is taking necessary measures to repair and reinstate the affected facilities, subject to applicable statutory and regulatory requirements. The Company is also pursuing insurance claims, wherever applicable.

Managements immediate focus remains on the safe and timely restoration of manufacturing operations, strengthening safety and quality systems, managing liquidity prudently and maintaining customer relationships. Despite the challenges faced during the year, the Company remains focused on leveraging its established API portfolio, process chemistry capabilities and customer base to rebuild operations and achieve sustainable growth upon resumption of normal manufacturing activities.

The performance of the Company for the financial year ended March 31, 2026 is summarized below:

Figures of the previous year have been regrouped or reclassified wherever necessary to conform to the current years presentation.

Impact of Global Economy and Business Outlook

Despite continued geopolitical tensions, volatility in energy markets and global supply chain disruptions, demand for pharmaceutical products and APIs remains resilient. Diversification of global sourcing away from concentrated manufacturing regions continues to create opportunities for Indian API manufacturers.

The Company remains focused on improving operational efficiency through consolidation of manufacturing operations at its MIDC Lote Parshuram facility, optimizing production costs and enhancing capacity utilization. Continued emphasis on exports, operational excellence and resolution of pending banking matters is expected to improve business performance over the medium term. The Company also expects sustained demand for veterinary APIs supported by growing global animal healthcare expenditure.

The Company continues to monitor and manage various business risks including:

• Regulatory compliance risks in domestic and export markets.
• Product quality and manufacturing compliance risks.
• Environmental, health and safety risks.
• Foreign exchange fluctuations.
• Supply chain disruptions and raw material availability.
• Insurance coverage and litigation- related risks.
• Financial and liquidity risks arising from banking matters.
• Intellectual property and competitive risks.
• Cybersecurity and information technology risks.

Appropriate mitigation measures, periodic reviews and internal controls are implemented to minimize these risks.

The Company has established an adequate internal control framework designed to safeguard assets, ensure reliability of financial reporting and maintain compliance with applicable laws and regulations. Internal audits are conducted periodically, and findings are reviewed by the Audit Committee and the Board of Directors. The Company continues to strengthen its governance framework through enterprise risk management practices, fraud prevention mechanisms, whistleblower policy, maker- checker controls and regular compliance monitoring.