Mankind Pharma Ltd Management Discussions

ECONOMIC OVERVIEW

Global economy1

In CY2025, the world economy demonstrated remarkable resilience, growing at 3.4%, broadly in line with CY2024 levels. Policy uncertainty continued to persist, yet the global economy held firm. Global inflation meaningfully, declining from 5.8% in CY2024 to 4.1% in CY2025.

The most significant macroeconomic development during recent times, was the sharp escalation in global trade policy uncertainty, which emerged as a key risk to global growth. The US administrations broad-based tariff measures and targeted actions against major trading partners like LATAM, China, Europe, disrupted established global value chains and weakened business investment sentiment. Retaliatory actions by major economies, including China, further intensified uncertainty and contributed to increasing fragmentation in global trade. Beyond tariff levels, the unpredictability of policy itself became a material constraint on long-term investment decisions globally, with elevated uncertainty continuing to weigh on capital formation and business investment.

Against this backdrop, global supply chains continued to undergo structural realignment. Businesses across manufacturing, pharmaceuticals, electronics and other sectors increasingly diversified sourcing strategies to reduce concentration risk and geopolitical exposure, accelerating the China plus one shift that has been evolving over recent years and creating opportunities for economies such as India, Vietnam and Mexico.

Growing investment in technology, particularly artificial intelligence, across the globe. Long-term structural drivers, including digital transformation, consumption, energy transition and rising healthcare demand, also remained intact.

Compounding trade-related headwinds, CY2026 began with escalating tensions in the Middle East, increasing the risk of energy supply disruptions and placing additional strain on global supply chains. Volatility in crude oil and LNG markets contributed to heightened uncertainty in global trade and investment flows. While the direct economic impact remained largely concentrated in the affected nations, neighbouring economies and key trade corridors also experienced disruptions. Rising crude prices and disrupted trade flows are expected to have medium-to-long-term implications even after the conflict subsides, particularly as damaged infrastructure and supply networks normalise gradually.

Overall, the global economy is projected to grow by 3.1% in CY2026 and 3.2% in CY2027, assuming geopolitical conflicts remain limited in duration and scope. However, prolonged geopolitical tensions, worsening trade fragmentation or renewed financial market stress could adversely impact this outlook. Global headline inflation is expected to rise modestly to 3.9% in CY2026 before resuming its gradual moderation towards 3% in CY2027. In this evolving environment, policy stability, adaptability and international cooperation will remain critical to sustaining global economic growth.

1. IMF World Economic Outlook, April 2026

Indian economy

India remained the worlds fastest-growing major economy for the fourth consecutive year, reflecting the resilience of its domestic fundamentals despite an increasingly challenging global environment.

As per second advanced estimates with the base year recalibrated to FY2023, Indias Gross Domestic Product (GDP) growth is estimated at 7.6% 2 in FY2026, higher than the 7.1% 2 in FY2025. The growth was led by robust domestic consumption, and strong growth in the manufacturing sector. The second half of the fiscal year saw benefits arising due to the demand boost from the GST rationalisation and expected discontinuation of compensation cess. CPI inflation averaged around

2%. Continued government support through various schemes like PLI, Make in India, PMAY, etc. continue to make the economy resilient and strong amidst rising global uncertainty. Steady rural consumption, bolstered by strong agricultural performance, and the gradual improvement in urban consumption, aided by the rationalisation of direct and indirect taxes, strongly support broad-based consumption.

The government has exhibited continued thrust on public investment in the last few years, with ~3% 2 of the GDP invested in capital infrastructure to support long-term growth. In the Union Budget FY2027, an allocation of

12.22 2 lakh crores was made, up 11.5% from the revised estimate of 10.96 lakh crores in the previous budget.

India remained the worlds fastest-growing major economy for the fourth consecutive year, reflecting the resilience of its domestic fundamentals despite an increasingly challenging global environment.

Early signs of revival in private capital expenditure are also becoming visible. Indian corporates are currently operating at ~75% capacity 5 utilisation levels, a threshold historically associated with fresh investment cycles. As utilisation levels continue to improve, private sector capital expenditure is expected to strengthen meaningfully. Improving corporate balance sheets, healthy retail and SME credit growth, and sustained demand recovery across sectors are expected to further support this investment cycle over the medium term.

FY2026 was filled with challenges from foreign trade partners amidst heightened uncertainty in global trade, imposition of high and punitive tariffs by key partners. Total exports (merchandise and services) increased to USD 861 2 billion in FY2026, up 4.2% YoY. Export growth was driven by a diversified basket, including pharmaceuticals, chemicals, engineering goods, petroleum products, electronics, textiles, gems & jewellery, rice and marine products, strengthening Indias position in global value chains. The US, UAE, China, the Netherlands, and the UK remained key export destinations.

On one hand exports are expected to get a substantial boost by the Free Trade Agreement with the European Union concluded in Q4 FY2026, post three years of embargo, India and the United Kingdom also signed an trade deal signalling economic cooperation. However, on the other hand, the impact of the war in the Middle East on Indias trade needs to be closely monitored.

While domestic fundamentals remain strong, the outlook for FY2027 will depend on global developments, particularly geopolitical tensions, commodity price movements, and external demand conditions. GDP growth for FY2027 is projected to decline to 6.9% 3 . The

Middle East conflict poses a key downside risk due to volatility in crude oil prices, disruption in overall energy supply, rupee-dollar volatility, and global supply chain.

INDUSTRY OVERVIEW

Global pharmaceutical industry

The global pharmaceutical industry including estimated COVID-19 vaccine and therapeutic spending witnessed 9.3% growth in FY2025 to an estimated USD 1,939 6 billion from USD 1,764 billion 6 in 2024. The pharmaceutical market is estimated to grow at 5-8% CAGR up to 2030 to reach USD 2,630-2,660 billion 5 supported by the growing contribution of new products and the impact of patent expiries, including the growing impact of biosimilars. With growing global political uncertainty, global pharmaceutical players are focussing on diversifying supply chains, to reduce dependence on single geographies and increase focus on supply chain resilience. disruptions putting pressure on trade. Further clarity will emerge gradually depending on the intensity and duration of the conflict, and the status of energy infrastructure of the Gulf nations.

2. Ministry of Statistics and Program Implementation 3. Reserve Bank of India 4.PIB

5. ICICI Global Economic Report, April 2026

The global pharmaceuticals industry is characterised by the concentration of consumption, production and innovation in a relatively small number of high-income and developed regions such as North America and Europe. These continue to account for a major chunk of the market in value terms on account of higher priced drugs and newer products. However, over the past few years, production, exports and consumption have picked up in middle-income countries such as India, China and Brazil; these pharmerging markets also account for a significant share in volume consumption.

IQVIA Market Prognosis, Sep 2025; IQVIA Institute: Dec 2025

Notes: Global medicine spending is based on IQVIA Market Prognosis with the addition of estimates of COVID vaccine and therapeutic spending which are not otherwise included. Those COVID additions are informed by company financials and published prices and vaccination rates Report: Global Medicine Use Trends 2026: Therapy Drivers. Spending Levels, and Policy Evolution. IQVIA Institute for Human Data Science, February 2026

IQVIA Forecast Dec 2025: IQVIA Institute, Dec 2025

Notes: Butible size represents forecast in 2029: COVID-19 vaccines and therapeutics are not included. Analysis is based on disease attribution of sales by diagno ses. Proprotein Convertase Subtilisin/Kexin type 9 (PCSK9L, a protein that regulates cholesterol by controlling LDL (bad) cholesterol receptors in the liver, and marketed drugs include antibody drugs for PCSK9 and small interfering RNA (SIRNA) therapies. Report: Global Medicine Use Trends 2026: Therapy Drivers, Spending Levels, and Policy Evolution. IQVIA Institute for Human Data Science, February 2026.

Growth enablers

• Rising prevalence of chronic conditions: With incidences of diseases like cancer, cardiovascular disorders, diabetes, obesity and respiratory conditions on a substantial rise, the long-term demand for therapeutic management is witnessing steady growth across global populations

• Rise in global life expectancy: 15 In FY2008, global life expectancy was 70 years which increased to 72 years in FY2022 and is expected to improve further. With expansion of life expectancy, there is a substantial increase in geriatric population resulting in a rising prevalence of age-related disorders, such as rheumatoid arthritis, cardiovascular disorders, and others. ~80% of all adults over 65 years of age, globally, have at least one chronic condition. By FY2050, as per the World Health Organisation, the global population aged 60+ years is expected to reach 2.1 billion from 1.1 billion in FY2023

• Patent cliff and Rx opportunity: Over next few years, Industry is set to witness a major wave of pharmaceutical patent expirations, with several blockbuster drugs, spanning a range of major therapeutic areas are set to lose market exclusivity. The US market alone is projected to lose more than USD 230 billion 26 in revenue between FY2025 and FY2030. This provides a humungous opportunity to Industry players to launch low cost generics which can lead to significant market expansion

• Rising investments in R&D: A key driving factor of market growth has been rapid rise in investments in the discovery and development of new drugs and therapies

• Specialty pharmaceuticals: The industry is witnessing a shift towards specialty drugs, including biologics, oncology, and rare disease therapies, which account for a growing share of global spending. Advancements in biologics, personalised medicine, and RNAi-based therapeutics is seeing growing demand. Biosimilars are gaining traction as cost-effective alternatives to biologics, driving competition and improving access to advanced therapies

• Novel drug treatment: The approval of cutting-edge treatments such as CAR-T for certain cancers and

GLP-1 anti-obesity drugs exemplifies the markets growing focus on novel mechanism of treatments

Incidences of diseases like cancer, cardiovascular, diabetes, obesity and respiratory conditions witnessing substantial rise.

• Preventive and wellness focus: There is a shift in focus from treating symptoms towards regular checkups, lifestyle improvements, early screenings, and sometimes even genetic testing to catch potential health risks early

• Emerging markets: Increasing market penetration in emerging markets coupled with improving healthcare infrastructure in these markets presents huge growth opportunities for the global pharmaceutical market

6.IQVIA

AI driving the next wave of pharmaceutical innovation7

The pharmaceutical market is highly innovation-driven, with heavy investments in research and development to develop new drugs, biologics, and advanced therapies. There is a growing emphasis on precision medicine and novel drug delivery platforms to improve efficacy, for targeted treatment and to achieve stronger safety outcomes. At the same time, digitalisation and the integration of Artificial Intelligence (AI) are transforming key processes across the value chain.

Different ways in which AI models are being used:

Transforming scientific workflows

• Accelerating drug discovery and development

• Optimising clinical trials

• Aiding in patient recruitment and engagement

• Improving manufacturing processes

• Strengthening demand forecasting

Enhancing production efficiency

• Enhanced monitoring quality and accuracy

7. International Journal of Pharmacology and Clinical Research FY2025

US market 8

The growth in the US pharmaceutical market is driven by growing prevalence of chronic diseases, rising healthcare expenditure, advancements in therapeutics, increasing geriatric population and growth in personalised medicine. The market grew 5.7% YoY to USD 668 billion 8 in CY2025 from USD 632 billion in CY2024 and is expected to grow at similar pace of 5.7% over CY2025 to CY2033 to reach USD 1 trillion 8 .

8. U.S. Pharmaceutical Market Size, Share & Trends, FY 2032-33

5.7%

CAGR over CY2025 to CY2033 to reach USD 1 trillion

Pharmerging markets 9

Pharmerging markets are those with per capita GDP by purchasing power parity (PPP) below USD 50,000 and forecasted 5-year aggregate pharma sales growth over USD 2 Bn. Spending in Pharmerging countries is expected to grow by USD 121 Bn through 2030, slightly higher than the USD 118 Bn in the past five years. Robust advancements in healthcare access, and favourable government initiatives are aiding the growth in the pharmaceutical sector.

9. IQVIA Market Prognosis, May 2024-25; IQVIA Institute, May 2025

Indian pharmaceutical industry

Commonly referred to as the Pharmacy of the World, the Indian pharmaceutical industry encompasses a broad range of segments, including generic drugs, over-the-counter (OTC) medicines, bulk drugs, vaccines, contract research, biosimilars, and biologics. India is the largest provider of generic medicines globally, with nearly 20% share in global supply by volume with exports to 190+ 10 countries. More than half of the exports are directed to highly regulated markets. India has emerged as a prominent and rapidly growing player in the global pharmaceuticals industry.

The Indian pharmaceutical industry is broadly classified into formulations and bulk drugs. Formulations market is further split equally into domestic formulations and pharmaceutical exports. At present, low-value generic drugs constitute a large part of Indian exports.

India ranks 3 rd globally for pharmaceutical production by volume and 11 th by value 10 , with over 3,000 10 pharma companies and a strong network of more than 10,500 10 manufacturing facilities.

While the Indian pharmaceutical industry continues to dominate the formulations market globally, there is increased structural focus to move up the value chain with backward integration in Active Pharmaceutical Ingredients and Key Starting Materials. Substantial growth in the GLP1 receptor agonists market driven by the rising prevalence of type-2 diabetes and obesity is adding to the growth momentum of the Indian pharmaceutical industry.

Indias pharmaceutical ecosystem has evolved into a globally integrated and policy-supported system that combines scale, affordability, and regulatory credibility. Strong manufacturing capabilities, rising exports, growing foreign investment, and targeted government schemes have collectively strengthened domestic production, reduced import dependence, and expanded global market presence. Together, these elements position Indias pharmaceuticals on a stable, forward-looking trajectory, supporting sustained growth, global engagement, and long-term resilience.

10. India Pharmaceutical Market Size, Share & Growth by FY 2023-2034

Domestic formulations

As per IQVIA, the domestic formulations market registered a growth of 9.9% YoY to 2,565 billion in FY2026 from

2,334 Bn last year. The industry is further split into the chronic and acute therapies segment.

The chronic segment primarily includes patients requiring long-term medication for conditions such as diabetes, cardiovascular disorders, oncology, and other related diseases. Within this segment, anti-diabetic and cardiovascular therapies account for the largest share.

The acute segment refers to conditions requiring short-term treatment. It is primarily dominated by therapies related to anti-infectives, gastro-intestinal disorders, and pain management, including analgesics.

As per IQVIA, the chronic segment has witnessed 11.1% growth over FY2022 to FY2026 and over the coming years, it is estimated to outpace the acute segment led by rising incidence of lifestyle-related diseases, and better healthcare, diagnostic and hospital infrastructure, resulting in improved disease detection rate.

Chronic vs acute split in indian domestic formulation market

Share	FY2026	FY2025	FY2024	FY2023	FY2022
Acute	59.6%	61.0%	61.6%	62.4%	63.4%
Chronic	40.4%	39.0%	38.4%	37.6%	36.6%

Source: IQVIA MAT MAR26

Key therapy areas in domestic formulation market

Therapy Name	Share in total market (FY20)	Share in total market (FY25)	Share in total market (FY30P)	CAGR (FY20 to FY25)	CAGR (FY25 to FY30P)
Cardiovascular	12.4%	13.3%	14.0-15.0%	10.5%	10.0-11.0%
Anti-Infectives	12.7%	11.7%	10.5-11.5%	7.1%	7.5-8.5%
Gastrointestinal	11.2%	12.2%	11.5-12.5%	10.8%	8.5-9.5%
Anti-diabetic	10.1%	9.2%	9.0-10.0%	6.9%	10.0-11.0%
Vitamins/Minerals/ Nutrients	8.6%	9.0%	9.0-10.0%	10.0%	9.0-10.0%
Respiratory	7.5%	7.5%	7.0-8.0%	8.7%	9.0-10.0%
Pain/analgesics	6.8%	7.0%	6.0-7.0%	9.2%	7.5-8.5%
Derma	7.3%	6.5%	6.0-7.0%	6.4%	7.5-8.5%
Neuro/CNS	6.2%	6.7%	6.0-7.0%	10.6%	8.0-9.0%
Gynaecological	3.1%	3.2%	3.0-4.0%	9.3%	8.5-9.5%
Urology	1.5%	1.6%	1.5-2.0%	10.8%	9.0-10.0%

Note: P – projected Source: PharmaTrac, Crisil Intelligence

Source :https://pharma.economictimes.indiatimes.com/news/ pharma-industry/indian-pharma-exports-up-over-9-pc-in-2024-25-govt/126049253

Indias API industry ranks third 11 largest in the world, with 57% of APIs listed under the WHO essential medicines framework being supplied from India. Indias pharmaceutical exports grew from USD 30.5 12 billion in FY2025 to USD 31.1 13 billion in FY2026, supported by world-class manufacturing facilities, availability of cost-competitive skilled manpower, and growing impetus on China plus one strategy.

With rampant adoption of AI and various other digital technologies, Indias global competitiveness is expected to strengthen led by enhancement of drug discovery process, optimisation of clinical trials, and improvement in supply chain efficiency.

In FY2026, India ranked 11 th (in terms of value) 12 in global pharmaceutical exports, with 3% share, the Indian Pharmaceutical industry is constantly striving to shift from a volume-driven to a value-driven model, by increasing focus and investment in R&D towards complex generics, biosimilars, and innovative treatments.

Source

11. Active Pharmaceutical Ingredients (API) Industry: India

Opportunity - Pharmaceutical Ingredients Review

12. https://static.pib.gov.in/WriteReadData/specificdocs/ documents/2026/mar/doc2026321831401.pdf 13. Pharma exports surpass USD 31 billion in FY2026 despite global headwinds IBEF

Key growth drivers

1. Improving life expectancy 14,15

• Life expectancy in India has been on a steady rise growing from 70 years in FY2008 to 72 years in FY2022 and further to 72.5 years in FY2025

The Indian demographic profile is slowly moving towards higher elderly population

Indias API industry ranks third-largest in the world, with 57% of APIs listed under the WHO essential medicines framework being supplied from India.

Demographics change 2023-2050

2023

Population by age and sex India

2. Growing incidences of chronic diseases 16,17

• Chronic ailments are commonplace among the elderly. Over 30% of the elderly women and 28% of the elderly men suffered from one chronic morbid condition and ~25% of elderly suffered from more than two morbid conditions

• Chronic diseases, like heart disease and cancer, account for ~63% of deaths in India

3. Patent expiries to boost generics market

• A number of drugs are bound for patent expiry in the upcoming years, allowing for generic versions to enter the market

• This will provide a big boost to the Indian pharmaceutical market as these generic version are priced significantly lower than the patented versions thereby widening access, and intensifying competition

• In March 2026, the patent of semaglutide (a GLP-1 receptor agonist) in India expired which prompted multiple players to launch generic semaglutide injections, offering significantly more affordable treatment options for patients with Type-2 diabetes and obesity

4. Rising awareness and access to healthcare 15

• Increased health awareness, expanded access to healthcare services, and a stable regulatory environment encouraging innovation

• 580+ million 21 people had health insurance coverage in FY2025 as compared to 288 million as of FY2015, However, health insurance penetration in India was only ~41% in FY2025

5. Shift towards specialty and complex therapies 18, 19

• From being a leader in API manufacturing, Indian companies are rapidly moving up the value chain by producing biosimilars, vaccines, new chemical entities (NCEs), and new biological entities (NBEs)

• Indias biotech startup ecosystem has grown from around 50 in 2014 to over 11,800 by FY2025

6. Significant growth in CDMO market

• India offers cost-effective manufacturing and highly skilled workforce, making it an attractive destination for global pharmaceutical companies for outsourcing their development and manufacturing needs

• The easy availability of affordable labour and modern infrastructure allows Indian CDMO to deliver high-quality products at competitive prices

7. Focus on training 20

• Health and wellness centres and neighborhood clinics, are being introduced and evaluated for primary care

FY2025 saw a significant increase in the number of medical seats, aligned with the Governments aim to add 75,000 new medical seats over the next 5 years. As of October 2025, the number of MBBS seats in India stood at 1,37,600 seats and 816 colleges

14.Georank 15.WHO

16. TECHNOLOGY FRAMEWORK FOR INDIAS ROAD FREIGHT

TRANSPORT 17.CCDC 17.PTI

18.Press Release Page Press Information Bureau

19. 50-60 pc cancer cases detected in India annually are preventable, say oncologists - The Economic Times 20. Indias medical education sees historic surge as MBBS seats reach 1,37,600: State-wise distribution here - The Times of India 21.IRDAI Annual Report FY2025

8. Key policy initiatives

• Supply Chain Resilience 22 : The PLI scheme for Bulk Drugs worth 4,763 crores as of September 2025 to create manufacturing capacity of 55,000 MT per year for 26 critical products

• Strengthening of Pharmaceutical Industry 23 : Outlay of 500 crores to support MSMEs and clusters

• Scheme for Promotion of Bulk Drug Parks 24 : Three world-class parks are being developed in Gujarat, Himachal Pradesh, and Andhra Pradesh with a total

3,000 crores outlay

• Biopharma SHAKTI 25 , was launched with an outlay of

10,000 crores over the next five years, with an aim to strengthening Indias ecosystem for production of biologics and biosimilars

• The Union Budget FY2026 highlighted a decisive shift in approach to pharmaceuticals with strong focus on biopharma and biologic medicines in its healthcare and manufacturing strategy

• A Biopharma-focussed network of three new National Institutes of Pharmaceutical Education and Research (NIPERs) and upgradation of seven existing NIPERs to deepen biopharma research was announced

• Create a network of over 1,000 25 accredited clinical trial sites

Other government initiatives include strengthening healthcare quality and access by enhancing the capacity of the Central Drugs Standard Control Organisation to align with global standards, providing Basic Customs Duty exemptions on select drugs to improve affordability, expanding the allied health workforce through new and upgraded Allied Health Professional (AHP) institutions, caregivers for geriatric care, and promoting medical tourism through regional medical hubs etc.

22. Economic Survey: Pharma scale up collides with obesity, NCD boom 23.Press Release Page Press Information Bureau 24.Press Release Page Press Information Bureau 25.PIB

26. https://www.genengnews.com/topics/drug-discovery/ t o p -2 0 - d r u g s - h e a d i n g - f o r- t h e - p a t e n t- c l i f f-2 0 2 6 -2029/#:~:text=However%2C%20the%20proverbial%20cliff%20 has,between%20this%20year%20and%202030

Consumer healthcare industry in india

The Indian consumer healthcare industry (CHI) is witnessing significant growth given growing consumer awareness and rise in lifestyle diseases enhancing need for OTC products. The market is estimated to grow at 9-10% CAGR between FY2024 and FY2029.

Note: P-Projected

*-Following categories have been considered for arriving at the Indian consumer healthcare segment i) Condoms ii) vitamins/minerals/nutrients iii) Acne Preparations iv) Emergency Contraceptives v) Antacids vi) Pregnancy Tests FY2024 data-CRISIL analysis based on IQVIA data sources mentioned below, projections are as per CRISIL MI&A estimates

COMPANY OVERVIEW

Mankind Pharma Limited (hereafter referred to as Mankind or the Company) is the fourth-largest by value and second-largest by volume pharmaceutical company in the Indian pharmaceutical market with a strong focus on domestic operations while also increasing its footprint in international markets through branded specialty complex and niche drugs. In the domestic market, the Company develops, manufactures and markets pharmaceutical formulations across a wide spectrum of acute and chronic therapeutic areas, and consumer healthcare segment, with the aim of providing international quality products. The Company has built a strong franchise with leadership across several categories by providing quality products at affordable prices accessible to all even in the remotest part of the country. The Company has a strong presence across various acute and chronic therapeutic areas including anti-infectives, cardiovascular, antidiabetic, gynaecology, gastrointestinal, VMN and respiratory, among others with a strategy to increase chronic presence going ahead. During the year, the Company introduced several niche chronic therapies, including AdvaUD for chronic liver disorders, HER2-P, a pertuzumab-based biosimilar and couple of products in Neuro/CNS segment, AGPTOY and Cereira. The Company continues to focus on increasing presence in chronic therapies like Anti Diabetics, Cardiac, respiratory inhalers and expansion into new therapies like CNS, urology, etc. Strong traction is seen in branded super speciality segment as well led by the acquired BSV portfolio and licensing agreements for Symbicort, Inclisaran, and Vonoprazan and Rivotril.

The Companys growth journey is mostly organic with some strategic tie-ups for business expansion. The Company acquired brands like Rivotril (neuro), Combihale (respiratory) and Daffy (dermatology) from Roche, Dr. Reddys Laboratories, and acquired brands from Panacea Biotech to foray into difficult-to-enter specialities.

It has also secured an exclusive distribution agreement to sell Symbicort, one of the most advanced inhalers for asthma in-licensed from AstraZeneca in India, and other strategic in-licensing deals with Novartis, Biocon, Innovent Biologicals and Takeda for speciality products. The Companys strategic focus is on building categories of the future like chronic therapies and specialty therapies. The Company has acquired the Indian rights to Rivotril, the long established brand from Swiss giant Roche, to scale its presence in chronic and central nervous system (CNS) therapies.

Mankinds acquisition of BSV has provided access to branded specialty portfolio in womens health, fertility and critical care. The acquisition of BSV marked a significant step forward in strengthening our international footprint and expanding our presence in high-entry-barrier, branded specialty segments such as womens health, fertility and critical care. BSVs international business is strategically oriented towards cluster approach with focus on branded portfolio and profitable markets.

The Company is focussed to strengthen BSV R&D tech platform to expand in high entry barrier complex products. BSVs specialty complex portfolio, characterised by high entry barriers and limited competition, offers long-term growth potential due to its niche product offerings and diversification from the formulations segment.

In the consumer healthcare business, over the years, the company expanded its portfolio from sexual wellness to consumer wellness and operates in the condoms, pregnancy detection, emergency contraceptives, antacid powders, vitamin and mineral supplements and anti-acne preparations categories, among others, with four category-leading brands. The Company is fully geared up to embrace future growth opportunities riding its innovative product pipeline, product extensions and premiumisation.

The digital transformation initiatives have resulted in enhanced agility and efficiency in business. Combined with improving trends across the businesses, the Company is in good stead to deliver sustainable long-term growth.

The Companys International business, which contributes 14% of total revenues, is witnessing good traction. Mankind excluding BSV has launched 48 new products in US till date.

The Company has 32 modern manufacturing and 7 dedicated R&D facilities with 5,000+ manufacturing personnel and 740+ scientists, of which ~110 hold PhDs. With 75%+ in-house manufacturing, the Company is able to maintain high quality standards, ensure timely deliveries and maintain an efficient supply chain with limited dependence on imports. Over 92% raw materials are procured locally. The Company has an installed capacity of 44+ billion units across its globally accredited manufacturing facilities. The Company boasts of strong pan-India presence with one of the largest distribution networks in the country with 17,600+ stockists and largest doctor coverage of 5 lakh+ doctors backed by a field force of over 18,500. Till date, the Company has launched 240+ DMF (Drug master file) / International grade quality products in India, with the aim of providing quality healthcare to patients on prolonged medication.

Top 20 brand performance

Brands	FY2026 Sales	FY2022-2026	Market share	Rank
	( crores)	CAGR	FY2026
MANFORCE	596	19.9%	46.9%	1
MOXIKIND-CV	408	10.7%	9.3%	3
AMLOKIND-AT	300	14.6%	39.4%	1
UNWANTED-KIT	256	9.9%	57.0%	1
PREGA NEWS	248	13.6%	82.6%	1
DYDROBOON	240	13.1%	17.2%	2
TELMIKIND-AM	212	25.3%	15.3%	2
GUDCEF	208	8.0%	15.8%	2
GLIMESTAR-M	206	8.1%	5.6%	5
CANDIFORCE	202	5.4%	14.4%	2
NUROKIND-GOLD	188	10.7%	3.2%	3
TELMIKIND-H	176	15.2%	16.5%	2
TELMIKIND	168	14.4%	11.6%	2
NUROKIND-LC	150	6.9%	54.6%	1
NUROKIND PLUS-RF	143	5.7%	8.5%	2
VOMIKIND	140	12.6%	25.5%	2
CEFAKIND	135	7.5%	14.0%	2
GLIZID-M	132	21.6%	20.9%	1
MONTICOPE	129	6.6%	7.3%	3
GUDCEF-CV	125	8.2%	16.7%	1

source: As per IQVIA MAT Mar26

SWOT analysis

Risk management

The robust Risk Management framework ensures safeguarding against various foreseeable threats, both internal and external. The comprehensiveness of the framework allows effective monitoring of potential risks, and strategising measured responses post analysis of the various risk factors. A Risk Management Committee has been constituted by the Board to manage various organisational risks. The Committee is responsible to device and execute effective and appropriate mitigation plans in the event of a risk. Fluctuations in the internal and external environments are closely monitored by the Committee to be able to foresee new threat/risk and devise adequate response. Such risks are specific to the business and encompass financial, operational, sectoral, cybersecurity, sustainability-related risks (especially those involving ESG) and more. The Risk Management framework comprises a variety of mitigation strategies to deal with risks posing a threat to business continuity.

To read more about this, please read the Risk Management chapter on pages 52-55.

Human resources

Human capital is a critical resource in healthcare. Keeping in mind organisational growth and business continuity, the Company strives to build a cohesive, accountable team whose goals are aligned with organisational goals. The Company provides a safe, diverse, inclusive, conducive and motivated work environment. The Company ensures equal opportunities are offered to all employees. Talent development and future skills training form a core part of HR team responsibilities. The Company strives to create an environment suitable to groom future leaders through a dynamic learning culture, training programmes and external coaching. Such employee centric policies make is easy for the HR team to attract new talent and enjoy a high retention ratio. Talent acquisition is done through campus and lateral hiring. The HR team functioning is upgraded as per latest technological advancements.

As on March 31, 2026, the Company had 27,000+ employees across domestic and overseas operations.

To read more about this, please read the Human Resource chapter on pages 74 and 75, and the Social chapter on pages 84 and 85.

Human capital is a critical resource in healthcare. Keeping in mind organisational growth and business continuity, the Company strives to build a cohesive, accountable team whose goals are aligned with organisational goals.

Annual Report 2025-26

Internal control systems

The Company has devised robust internal controls to effectively manage internal compliance and ensure adequate statutory and regulatory compliance in view of the size and complexity of the business. Internal controls are monitored and evaluated at periodic intervals, in keeping with the evolving macro environment, fostering a culture of ethics and integrity. The internal control systems ensure effective and efficient business operations, restriction of unauthorised access for safeguarding assets, prevention of fraud, minimising errors, ensuring strict regulatory compliance, accuracy and completeness of the accounting records, and timely preparation of reliable financial information. This framework includes financial, operational and regulatory controls.

The performance of statutory and internal auditors and the adequacy of the internal control systems is managed by an Audit Committee along with the Management. The internal control framework is evaluated for its effectiveness at regular intervals. The Company invests in technologically advanced information systems security to protect sensitive data and insulate itself against cybersecurity threats. The framework is essential to ensure compliance with internal policies, and all applicable laws and regulations.

Financial review

Consolidated

Revenue

Revenue from operations has increased to 14,278 crores from 12,207 crores in FY2025. This revenue growth of 17% was mainly attributable to growth in base business supported by full year consolidation impact of BSV business which was acquired on October 23, 2024.

The Domestic business has shown a growth of 14.4% YoY to 12,217 crores with Organic growth of 8.6% YoY and balance growth on account of full year Consolidation impact of acquired BSV domestic business.

Revenue from OTC business has increased by 8.7% to 879 crores in FY2026. The international business has witnessed revenue growth of 34.5% YoY to 2,061 crores with Organic growth of 8.6% YoY and balance growth is supported by full year consolidation impact of acquired BSVs International portfolio.

EBIDTA

EBITDA increased to 3,499 crores up by 15.5% in FY2026. The EBITDA margins contracted by 30 basis points to 24.5% in FY2026 as compared to 24.8% in FY2025. Adjusted EBITDA margin (excluding one time impact of labour code regulations and other non-recurring cost) declined by 50 basis points to 25.4% in FY2026 as compared to 25.9% in FY2025. This contraction was primarily attributable to higher R&D expenditure, reflecting the Companys continued investment in innovation and long-term growth.

Employee cost

Employee cost increased by 18.3% to 3,184 crores in FY2026 as compared to 2,692 crores in FY2025. The increase is mainly due to annual increments, an Increase in employee headcount and full year consolidation impact of acquired BSV business.

Depreciation and amortisation

Depreciation and amortisation expenses has increased to

886 crores as compared to 621 crores in FY2025. The increase is primarily due to full year impact of depreciation and amortisation expense related to BSV assets.

Finance cost

Finance costs increased by 210 crores YoY to 639 crores in FY2026, compared to 429 crores in FY2025. The rise was primarily attributable to the full year impact of interest on Non Convertible Debentures (NCDs) issued during the previous year to fund the acquisition of the BSV business, coupled with an increase in interest expenses on working capital loans.

PBT and PAT

The PBT has declined to 2,333 crores in FY2026 from

2,516 crores in FY2025 reflecting a decrease of 7.3%

PAT stood at 1,938 crores in FY2026 down from 2,007 crores in FY2025 a decline of 3.4%. The decline is primarily driven by higher Depreciation, increased Finance cost and lower Other income. This has been partly offset by increase in EBIDTA & reduction in Income tax expense.

Earnings Per Share

The basic and diluted EPS for FY2026 has been 46.4

& 46.3 respectively as compared to 49.2 & 49.1 respectively in FY2025.

Other intangible assets

Other intangible assets decreased to 9,168 crores in FY2026 from 9,604 crores in FY2025. This decrease is primarily due to amortisation of intangibles assets recognised in FY2025 pursuant to purchase price analysis related to BSV acquisition.

Other non-current assets

Other non-current assets have increased by 260 crores to 352 crores in FY2026 from 92 crores in FY2025. The increase is primarily attributed to an increase in Balance with government authorities (paid under protest) by 200 crores & balance due to increase in Capital advances.

Borrowings – current and non-current borrowings

Current and Non-Current Borrowings has decreased to

6,204 crores in FY2026 from 8,483 crores in FY2025 reflecting a decline of 2,279 crores. The reduction was

Note - 1 Debtor turnover ratio is higher due to higher revenue from exports having extended credit period.

Note 2 Interest coverage ratio is lower due to increase in finance cost on account of acquisition-related debt.

Note – 3 Decrease in Debt equity ratio in current year due to repayment of commercial papers during the year.

Note – 4 Decrease in Return on Net Worth during FY2026 is primarily due to increase in Net Worth during the year coupled with a decline in Profits attributable to Equity holders of the parent.

Ratios	FY2026	FY2025	Explanation
Debtors Turnover (no. of days)	41.77	35.45	Note-1
Inventory Turnover (no. of days)	190.88	190.23
Interest Coverage Ratio (in times)	4.09	5.63	Note-2
Current Ratio (in times)	1.07	1.23
Debt Equity Ratio (in times)	0.39	0.59	Note-3
Operating Profit Margin (in %)	24.5	24.8
Net Profit Margin (in %)	13.4	16.3
Return on Net Worth (in %)	11.7	13.9	Note-4

primarily driven by repayment of Commercial Papers amounting to 2,000 crores during the year.

Financial performance

Particulars	Standalone		Consolidated
(in crores)1	FY2026	FY2025 2	FY2026	FY2025
Revenue from operations	10,421	9,507	14,278	12,207
EBITDA	2,980	2,425	3,499	3,030
EBITDA Margins (in %)	28.6%	25.5%	24.5%	24.8%
Profit before Tax	2,315	2,147	2,333	2,516
Profit after Tax	2,038	1,725	1,938	2,007
Basic EPS (in )	49.4	42.7	46.4	49.2
Diluted EPS (in )	49.3	42.6	46.3	49.1
Cash EPS (in ) 3	59.7	55.5	68.1	64.4

1. FY2026 and FY2025 P&L items are for continuing operations only.

2. Standalone numbers for FY2025 have been restated. Please refer Note no. 50 of the standalone financial statements for the year ended March 31,2026.

3. Cash EPS is calculated as

. equity holders + Depreciation, Amortisation and Impairment) / Weighted average number of Equity Shares)

Key Financial ratios

Strategic outlook

The Company is confident of delivering long-term sustainable growth anchored by four key pillars - steady base business, fast growing specialty chronic, high potential OTC business, and branded super specialty BSV portfolio. Its future strategies include

• Consolidation of market share in increased CVM driven by volume focussed growth and scaling up brands

• Increasing share of the chronic segment by increasing presence in chronic therapies like diabetes – Empagliflozin, and Insulin Glargine, respiratory inhalers; and expansion into new therapies like CNS, Urology

• Expanding towards super specialty portfolio through M&As (BSV) and in-licensing (Symbicort, Inclisaran, Vonoprazan)

• Increase penetration in Metros/Tier I cities by engaging KOLs, hospital tie-ups, specialty division launches and inorganic growth initiatives, launching DMF grade products and build alternative channels of growth including modern trade

• Grow consumer healthcare business by leveraging existing brand equity, additional distribution models, Rx to OTx to OTC

• Continue developing digital platforms to enhance productivity by strengthening medical content for evidence-based marketing; end-to-end business transformation through AI/ML based technologies to improve productivity and efficiency

• Higher focus on R&D to build on BSV R&D tech platform along with Mankind to expand in high entry barrier complex products

• Build an institution by strengthening foundation by formulating best-in-class people, policies and processes for long-term sustainable growth

To read more about this, please read the Strategy chapter on pages 48-51.

Cautionary statement

The statements may contain forward-looking statements like the words believe, expect, anticipate, intend, plan, estimate, project, will, may, targeting and similar expressions regarding the financial position, business strategy, plans, targets and objectives of the Company. Such forward-looking statements involve known and unknown risks that may cause actual results, performance, or achievements to be materially different from results or achievements expressed or implied. The risks and uncertainties inter-alia, relating to these statements include (i) cash flow projections, (ii) industry and market conditions; (iii) ability to manage growth; (iv) competition; (v) Government policies and regulations; (vi) obtaining regulatory approvals; (vii) domestic and international economic conditions such as interest rate and currency exchange fluctuations; (viii) political, economic, legal and social conditions in India/ elsewhere; (ix) technological advances; (x) claims and concerns about product safety and efficacy; (xi) domestic and foreign healthcare reforms; (xii) inability to build production capacity; (xiii) unavailability of raw materials and failure to gain market acceptance. The Company shall not have any responsibility or liability whatsoever for any loss howsoever arising from this report, or its contents or otherwise arising in connection therewith.