Economic Overview

Global Economy

In CY 2025, the global economy demonstrated resilience, with GDP grew by 3.4% despite policy uncertainty and rising trade tensions. Technology-related investment, accommodative financial conditions, and supportive fiscal & monetary policies drove economic activity.

Inflation moderated across major economies, settling at approximately 4.1%. This moderation was largely driven by improved supply chains, better inventory management and a gradual softening of labor markets. This easing of price pressure allowed major central banks to transition to a more accommodative stance, lowering interest rates to sustain growth and financial stability further.

Global trade volume expanded by 5.1% during the year. Merchandise trade remained strong, driven by front-loaded shipments. Services trade also expanded, particularly in medicines and pharmaceuticals.

Outlook 2

Global economic growth is projected at 3.1% in CY 2026. The outlook remains uncertain due to shifting trade policies and fiscal pressures. However, policy support and resilient domestic demand, aided by monetary easing, are expected to sustain growth.

Rising conflict in West Asia continues to disrupt global energy supply chains, fueling inflationary pressures. If the crisis persists, it could weigh on global economic growth and weaken investor confidence over the medium term. Consequently, inflation is projected to edge up to 4.4% in CY 2026 before declining to 3.7% in CY 2027, due to easing labor market conditions and subdued demand for tradable goods.

This situation, along with tariff-related uncertainties and elevated energy prices, is expected to moderate global trade growth. However, expanding bilateral partnerships may help economies diversify trade flows and reduce dependence on a limited number of markets.

Us Economy 3

The US economy recorded steady expansion in CY 2025, with GDP growing by 2.1%. Growth was backed by robust investment in equipment and technology, along with a notable contribution from net international trade. Federal government spending also rebounded despite global uncertainties. Improved economic activity supported labor market conditions, with the unemployment rate easing to 4.3%, resulting in increased labor participation 4 .

Inflation eased during the year to 2.7%, despite the implementation of new tariffs, tighter immigration policy and elevated uncertainty, which led to price fluctuations 5 . This moderation, combined with rising household wealth, supported stronger consumer spending. Service-sector spending also increased, driven primarily by healthcare services, recreation and transportation.

Outlook 6

Economic growth in the United States is forecasted at 2.3% in CY 2026. Growth is likely to be supported by easing tariff pressures, tax reductions under the One Big Beautiful Bill Act, and stronger consumer spending driven by real wage gains, rising wealth, and improved business investment conditions.

The labor market is expected to remain in a low hiring, low firing phase, where companies remain cautious in recruitment but avoid significant job cuts. As a result, unemployment is expected to rise

Tariffs have so far contributed to gradual price increases and are largely viewed as a one-time adjustment that may reduce consumers purchasing power without significantly affecting overall economic growth. Inflation is projected at 3.2% in CY 2026 and will likely remain above the 2% target. However, it is expected to moderate gradually to 2.1% in CY 2027, as tariff effects wane and housing costs stabilize 8 .

UK Economy 9

The United Kingdom (UK) economy grew modestly by 1.3% in CY 2025, driven by rising consumer spending despite challenges such as global uncertainty and higher taxes. Total trade also remains strong, supported by healthcare exports, especially medicines and pharmaceutical products, reflecting the resilience of the economy.

Consumer price inflation averaged at 3.4%, largely due to declining energy costs and slower price increases across different sectors 10 ._In response to easing inflationary pressure, the Bank of England reduced the Bank Rate by 25 basis points to 3.75% 11 .

However, the unemployment rate edged up to 4.9%, indicating some softening in the labor market as employers responded to slower economic growth and cost pressures 12 . Immigration continues to support workforce availability, particularly in critical sectors such as healthcare. The National Health Service (NHS) benefited from targeted recruitment of overseas healthcare professionals through the Skilled Worker visa scheme, helping to address staffing gaps across key services.

Outlook

Economic growth in the UK is projected to ease to 0.8% in CY 2026 due to planned fiscal tightening and higher energy prices before recovering slightly to 1.3% in CY 2027, supported by business investment and exports, as financial conditions and global trade may improve.

Inflation is expected to continue moderating as a weakening labor market continues to exert downward pressure on wage growth. With inflation easing, the Bank of England is expected to continue its cautious rate-cutting cycle, potentially reducing the policy rate to 3.25%. This may help support consumer spending and ease pressure on real income.

The proposed India-UK Free Trade Agreement, if successfully ratified, is expected to lower tariff and non-tariff barriers between the two countries. Over the long term, this agreement could increase the UKs real GDP by approximately 0.13% by 2040 13 .

Russia Economy

The Russian economy remained resilient in CY 2025, with GDP expanding by 1.0%. However, declining oil revenues and Western sanctions weighed on broader economic activity. Higher military spending contributed to inflationary pressures. Inflation moderated but remained above the Central Bank of Russias 4% target. As inflation eased, the central bank reduced the policy rate from 21% to 16% 14 .

On the demand side, consumption eased as high borrowing costs curtailed consumer lending. Investment activity declined due to weaker corporate lending and lower fiscal spending. The labor market remained tight, with unemployment at 2.2%, increasing real wages 15 .

Trade with Asian economies has expanded steadily, strengthening Russias economic integration with regional markets, including China, India and Central Asia. China remains Russias largest trading partner, particularly in energy and raw materials. India expanded its role through higher pharmaceutical and engineering exports alongside energy imports.

Outlook

The Russian economy is expected to remain uncertain. GDP is projected to grow by 1.1% in CY 2026. Structural challenges, including labor shortages, weak consumer demand and import dependence, are expected to persist. Geopolitical tensions may further constrain economic activity. Growth is likely to be supported by defence-related production and stable oil and gas revenues.

Inflation is expected to decline over the medium term. However, external pressures may slow the pace of disinflation in 2026. Inflation is estimated to reach the central banks target of 4% in 2028 as external factors phase out, and tight domestic demand conditions persist.

Economic reforms are expected to strengthen public finances and improve long-term growth prospects. These measures include enhanced tax collection and productivity-focused initiatives. The government has also launched National Projects 2.2 to improve economic efficiency and increase social spending. These initiatives aim to enhance overall quality of life.

Australia Economy

Australias economy grew at its fastest pace in nearly three years, with GDP rising by 2.0% in 2025 16 . Growth was primarily driven by strong domestic demand, particularly private investment and household consumption. However, economic activity faced headwinds as businesses reduced inventories and the trade deficit widened due to imports growing faster than exports. Wage growth remains robust across industries, with healthcare and social assistance being the most significant contributor to wage growth in both the private and public sectors.

On top of that, national non-defense spending supported economic growth, particularly through social benefits programs such as Medicare and the Pharmaceutical Benefits Scheme, highlighting strong demand for essential goods and healthcare services.

Inflation stood at 2.9%, with healthcare and housing costs contributing significantly to price pressures and keeping inflation above the Reserve Bank of Australia (RBA)s target range 17 . In response, the Reserve Bank of Australia (RBA) increased its policy rate by 25 basis points to 3.85%, signaling its commitment to maintaining price stability. 18

Outlook

Australias growth rate is projected to remain at 2% in CY 2026, supported by firm private demand. However, the recent conflict and elevated energy prices may slow household consumption growth in the near term. This impact is expected to be partly offset by lower import growth.

Inflation is expected to edge up to 4% in CY 2026, driven by services inflation and persistently strong wage growth. This may present a policy challenge for the Reserve Bank of Australia in determining the pace of further interest rate cuts.

Emerging markets and developing economies

Economic growth in Emerging Market and Developing Economies (EMDEs) was faster than expected during CY 2025. Despite elevated macroeconomic and policy uncertainty, capital flows to major developing economies remained robust, strengthening external balances. Overall, EMDEs recorded growth of 4.4% in CY 2025 19 .

Among developing economies, China continued to lead export growth, supported by strong shipments of manufactured and industrial goods. India continued to demonstrate strong economic momentum driven by robust domestic demand. Growth also improved across regions such as the Middle East, Central Asia and sub-Saharan Africa, supported by higher commodity production, economic reforms and macroeconomic stabilization. Other regions experienced mixed but gradually improving performance as trade-related pressures ease.

Outlook 20

Growth in EMDEs is expected to moderate slightly in CY 2026 as the temporary boost from earlier trade activity fades. However, improving financial conditions are expected to help offset the impact of ongoing trade restrictions and weaker business confidence.

Several major developing economies, including China, India and Indonesia, are expected to maintain solid growth. Resilient domestic demand and targeted policy measures will continue to support economic activity. However, growth prospects for many low-income and vulnerable economies remain constrained.

To sustain long-term growth, EMDEs are going to need to implement structural reforms that diversify trade, strengthen economic policies and address domestic economic constraints. Without stronger and more dynamic growth, many EMDEs may face challenges in generating sufficient employment opportunities for their expanding working-age populations.

Indian Economy 21

Indias economy grew by 7.7% in FY 2025-26, retaining its position as the worlds fastest-growing major economy for the fourth consecutive year 22 . Stable macroeconomic fundamentals and continued policy support sustained growth despite a challenging global environment.

Inflation remained moderate during the year, with the Consumer Price Index (CPI) at around 3.48% 23 . Improved supply chains and lower input costs helped contain price pressures 24 . In response, the Reserve Bank of India reduced the policy repo rate by a cumulative 125-basis-points. The measure aimed to support growth while maintaining price stability.

Strong domestic demand continued to drive economic activity. Lower income tax rates and GST rationalization improved consumer spending and purchasing power. On the supply side, industrial activity gained momentum across key sectors. Manufacturing remained a significant contributor, with pharmaceuticals and chemicals among the leading performers.

India, now the worlds fourth-biggest economy, also recorded a strong trade performance. Export growth varied across sectors, with drugs and pharmaceuticals emerging as key contributors to merchandise exports.

Government initiatives strengthened healthcare access and infrastructure. Expanded health insurance coverage, digital health programs and improved access to affordable medicines supported more inclusive healthcare developments.

Outlook 20

Indias growth outlook remains positive despite global uncertainty and trade-related challenges. Strong domestic demand and sustained investment activity are expected to support economic growth. As a result, India is projected to remain the fastest-growing major economy among advanced and emerging markets in FY 2026-27.

Supply-chain disruptions arising from the West Asia conflict may increase commodity prices and constrain the availability of key inputs for downstream industries, including chemicals. However, measures to secure critical inputs from alternative sources are expected to mitigate the impact.

The Union Budget 2026-27 significantly increased the allocation to the Ministry of Health and Family Welfare. The allocation rose to 1,06,530.42 crore, representing an increase of approximately 10% over the previous year. This record allocation emphasizes strengthening healthcare infrastructure, expanding medical education and advancing digital health initiatives 25 .

Forecast 26

GDP growth is forecasted at 6.6% for FY 2026-27. The government has introduced direct tax reforms to enhance the ease of doing business. Key measures include streamlined Tax Deducted at Source (TDS) workflows, reduced pre-deposits for legal disputes and longer deadlines to file revised returns. These updates aim to minimize compliance bottlenecks and free up business cash flow.

CPI inflation for 2026-27 is projected at 5.1%, bolstered by favorable supply conditions and the ongoing benefits of GST rate rationalization 27 . To support consumer demand in this environment, the MPC has kept the repo rate at 5.25% and maintained its neutral stance.

Additionally, the recently concluded Free Trade Agreement (FTA) with the European Union is expected to strengthen Indias trade balance by approximately USD 16 billion through increased exports and deeper market integration, creating wider trade opportunities for Indian manufacturers 28 .

Industry Overview

Global Pharmaceutical Industry

US Pharma 29

The U.S. healthcare system is transforming due to shifting medicine use patterns, evolving patient cost burdens, changing benefit designs and innovation-driven spending. Concurrently, structural barriers in access and affordability present persistent challenges, preventing patients who need medicines most from receiving them. These factors increase market complexity while creating opportunities for system-level improvements.

Empirically, total prescription medicine use increased 1.5% to reach 210 billion days of therapy in 2025. Additionally, the U.S. market at net prices grew 10.6% in 2025, maintaining an average annual growth rate of 9.3% over the last five years.

The market is driven by increasing demand for personalized and regenerative therapies to treat chronic diseases, while technologies such as Artificial Intelligence (AI) and Machine Learning (ML) are accelerating research and transforming drug discovery. During the year, the U.S. Food and Drug Administration (FDA) approved 46 novel drugs alongside several other significant drugs 30 . This reflects sustained innovation across therapeutic areas, particularly oncology, immunology and rare diseases.

Moreover, demand for medicines continues to rise as populations age. Companies developing therapies for chronic diseases and affordable generic medicines are expected to benefit from this trend. In addition, the growing demand for weight-loss treatment is likely to provide further momentum to market growth.

U.S. medicine spending at net prices is projected to grow by 4.5% to 7.5% through 2030. At list prices, spending is expected to increase by 6% to 9%. Pricing pressures and patent expiries are likely to moderate growth over the period. However, continued adoption of innovative therapies is expected to offset much of this impact.

UK and Eurozone Pharma

Europe is emerging as a key growth region for the pharmaceutical industry, driven by high healthcare expenditure and robust Research and Development (R&D) activity. Germany leads the region with advanced pharmaceutical technologies and a strong demand for treatments addressing chronic illness. Meanwhile, the UKs zero-tariff export agreement with the U.S. has strengthened exporter confidence, while commitments to reduce medicine prices aim to enhance affordability.

The pharmaceutical industry invests _55 billion in research each year and exports medicines valued at around _320 billion annually. Its trade surplus is nearly 30% larger than that of all other sectors combined, emphasizing the industrys strategic importance to Europes innovation ecosystem, trade and long-term economic resilience 31 .

Despite its strong manufacturing infrastructure, reliable supply chain and high production standards, Europe is gradually losing competitiveness in pharmaceutical innovation. This is largely due to slower clinical trial initiation and a comparatively less supportive regulatory and funding environment than in the U.S. and China, making the early-stage development and commercialization of new medicines more challenging.

Pharmaceutical production in the Eurozone increased sharply by 21.6% in 2025, primarily due to front-loading in response to potential US tariff threats, with Ireland benefiting the most from this surge. However, this increase is expected to be temporary, with production projected to contract by 3.7% in 2026 as demand normalizes 32 .

Russia Pharma

Russias retail pharmaceutical market reached RUB 1.89 trillion, representing a year-on-year growth of 15.8%. However, the number of drug packages sold increased by only 1.8%, indicating that market expansion was largely driven by higher prices rather than volume growth 33 . Both retail sales and public procurement of medicines remain the key drivers.

Following Western trade restrictions and the exit of several multinational pharmaceutical companies, Russias pharmaceutical sector experienced a shortage of Active Pharmaceutical Ingredients (APIs) and reduced research funding. To mitigate supply disruptions and control price increases, the government introduced emergency support measures under its Pharma-2030 strategy, including subsidies, tax incentives, research grants and accelerated drug approval_ processes. These Initiatives aim to strengthen domestic manufacturing capabilities, reduce import dependence and achieve 80% local production of essential medicines by 2030.

Moreover, the pharmaceutical market in Russia will show a moderation due to several systemic challenges, including a high level of tax burden and competitive pressure from federal pharmacy chains and marketplaces. Consolidation, improving operational efficiency, and developing a customer-centric approach are major strategies for survival in 2026.

Australia and New Zealand Pharma

The Australian pharmaceutical market plays a critical role in the countrys healthcare system. Valued at $25.3 billion_ in 2025, the market is supported by an ageing population, a rising prevalence of chronic diseases, increasing healthcare expenditure and ongoing investments in R&D. The market is projected to reach_ $31.9 billion_by_2034, reflecting a_CAGR of 2.57%_from_2026 to 2034 34 ._

In New Zealand, the pharmaceutical market growth is driven by increased government funding for medicines and greater adoption of innovation and specialty therapies. Government healthcare programs, including national reimbursement schemes that subsidise essential medicines, along with healthcare reforms aimed at improving access and affordability, are expected to further support the expansion._

The healthcare and pharmaceutical markets in Australia and New Zealand remain attractive due to strong spending across both over the counter (OTC) and prescription (Rx) segments, supported by advanced healthcare systems and continued innovation. In addition, digitalization is playing an increasingly important role in healthcare delivery, with data systems such as real-world evidence (RWE) supporting improved patient outcomes and more cost-effective care.

Global Biologics Industry

Global Generic Industry 35

Generic medicines remain a key driver of growth in the global pharmaceutical market. Rising healthcare costs have increased demand for affordable treatment options, and generic drugs provide a cost-effective alternative to branded medications.

The global generic drugs market is valued at $468.08 billion in 2025. North America accounts for the largest revenue share at 39%, supported by strong regulatory frameworks and wide spread option of generic medicines. Meanwhile, the Asia-Pacific region is expected to experience faster growth, driven by expanding pharmaceutical manufacturing capacity and rising healthcare demand.

However, generic drug manufacturers often face regulatory challenges and lengthy approval timelines before products reach the market. Compliance with stringent regulatory requirements set by the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) increases development costs and can slow the approval process for generic medicines.

The market is expected to grow from $491.67 billion in 2026 to approximately $762.48 billion by 2035, representing a CAGR of around 5% over the forecast period. Growth will be supported by a significant number of patent expirations, an increasing prevalence of chronic diseases and government initiatives promoting the use of affordable therapies. The factors enable manufacturers to expand market reach while maintaining high-quality and cost-efficient production.

Source: Precedence Research

Global OTC Industry

The over-the-counter (OTC) pharmaceutical market is evolving rapidly as rising consumer expectations, regulatory flexibility and digital integration reshape the industry. North America remains the largest region in the OTC market, while the Asia-Pacific is expected to record the fastest growth. Ageing populations in developed markets and China are also contributing to higher demand for OTC medicines, generics and treatments for chronic conditions.

However, U.S. tariffs introduced in 2025 created challenges for the OTC drug market by increasing costs and disrupting supply chains. In response, manufacturers are diversifying supplier networks, strengthening domestic manufacturing capabilities and adjusting pricing strategies to maintain consumer access.

The OTC drugs market is projected to grow from $ 56.75 billion in 2025 to $ 61.50 billion in 2026 and is expected to reach $ 103.96 billion by 2032, reflecting a CAGR of 9.03% 36 . This growth is driven by product innovation and evolving retail and distribution channels, creating significant opportunities for pharmaceutical manufacturers and investors.

Trends

The OTC drug market is being reshaped by rising demand for self-care solutions, the increasing prevalence of chronic diseases and growing healthcare costs. Consumers are becoming more health-conscious and are increasingly opting for affordable OTC options, driven by the growth of e-commerce and digital marketing channels.

At the same time, demand for natural remedies, personalized healthcare solutions and improved product packaging is influencing product innovation and shaping new product development across the industry.

Indian Pharma

As India enters 2026, its pharmaceutical industry remains strong, resilient and strategically positioned for sustained growth. The sector continues to be a trusted and competitive contributor to global healthcare, reinforcing confidence among both domestic and international stakeholders.

During the year, Indias pharma industry continued its transition from a model primarily driven by low-cost generics toward one increasingly focused on quality, innovation and adherence to global standards. This is helping establish a stronger, more sustainable and differentiated growth trajectory for the sector.

The domestic market is also undergoing structural changes, driven by rising demand for high-quality pharmaceuticals. In addition, Indias expanding middle class and the growing penetration of health insurance are improving access to medicines, which is expected to further stimulate domestic demand.

Indias recent trade engagements with the European Union and the United States are expected to create new export opportunities for the pharmaceutical sector. Access to the 572.3 billion EU pharmaceuticals and medical devices market, along with improved trade arrangements with the US, could significantly enhance market access and price competitiveness for Indian pharma companies 37 .

Encouraging Trends

Recent government measures, including GST 2.0 exemptions and rate rationalization, are aimed at improving the affordability and accessibility of medicines while supporting the supply of high-quality pharmaceuticals. The National Pharmaceutical Policy (NPP) is also focused on reducing production costs and lowering dependence on Chinese API imports.

In addition, the Union Budget 2026 reinforces the governments commitment to strengthening the pharmaceutical and healthcare ecosystem by promoting innovation in drug development and encouraging research in quality Ayurveda and traditional medicine. These initiatives support Indias broader vision of becoming a Viksit Bharat.

Further strengthening healthcare delivery, the Union Budget 2026-27 allocated 39,390 crore to the National Health Mission (NHM) to enhance primary healthcare services, maternal and child health programs, and disease control initiatives across the country 38 .

Looking ahead, Indias pharmaceutical industry is expected to grow at a rate of 7-9%, supported by robust domestic demand, stable export growth and increasing focus on generics, biosimilars and specialty products 39 .

Company Overview

Geography-wise Overview

US and North America

The US and North America represent major growth markets for Marksans Pharma Limited, operating in this region through its wholly owned subsidiary, Time Cap Labs Inc., USA. The operations in the region are primarily focused on the consumer healthcare and OTC segments, supplying store-brand products to leading US retailers.

This region stands as Marksans largest market, contributing approximately 52% of FY 2025-26 revenue, anchored by the Consumer Healthcare and OTC store brand opportunity. The market achieved FY 2025-26 growth of 24% YoY, which was driven by new launches, market share gains and strong order book execution through the year.

100+

Products Manufactured & Distributed

112

New SKUs Launched in FY 2025-26

51

Products in Pipeline

UK and Europe

The UK is the Companys second-largest market, contributing approximately 34% to FY 2025-26 revenue. The Company serves this region through its wholly owned subsidiary, Marksans Pharma (UK) Ltd, which includes two step-down subsidiaries: Bells, Sons & Co., managing an OTC portfolio with 450+ products / SKUs, and Relonchem, managing a high-end Rx portfolio with 175+ Market Authorizations. Together, these entities offer a broad portfolio of OTC and prescription medicines across the UK market, ranking Marksans among the top five Indian pharmaceutical companies in the UK in terms of revenue.

18	30
Products Approved during the Year	Filings Completed in FY 2025-26
24	200+
Products Filed and Awaiting Approval during the Year	Products Planned for Filing over the Next 4-5 Years

Australia and New Zealand

Marksans established its presence in Australia in 2005 through the acquisition of a 60% stake in Nova, which provides an established base in the region. Nova is engaged in the R&D and marketing of generic OTC products, acting as a leading supplier of branded generic and private label products in Australasia. The Company currently holds 100+ market authorizations across Australia and New Zealand, strengthening its presence in the regions consumer healthcare market.

Australia and New Zealand delivered strong growth of 20% YoY, reaching 303 crore in FY 2025-26. Historically an OTC-only company in this region, Marksans executed a strategic portfolio expansion in FY 2025-26 by diversifying into Rx and launching its branded prescription division, Nova Pharma.

11	20
Rx Brands Launched in FY 2025-26	SKUs Launched in FY 2025-26
18
SKUs Planned for FY 2026-27

Rest of the World

The Rest of the World (RoW) segment includes 10 countries across the CIS and MENA regions, contributing approximately 3.4% of FY 2025-26 consolidated revenue. Marksans has strengthened its presence in the Middle East and Africa through the acquisition of a 100% stake in Access Healthcare in Dubai. The Company continues to expand its presence in these markets through multiple product approvals and regulatory filings while steadily broadening its product portfolio.

FY26 revenue moderated 4% YoY to 99 crore, reflecting a deliberate and disciplined approach to RoW markets. This moderation was due to ongoing geopolitical tensions in key MENA and CIS regions, as well as macroeconomic volatility and elevated payment risks in select regions with credits availed.

230+

Licensed Products across UAE & Other RoW Geographies

Key Strengths

Strong Focus on the OTC Segment	Strong Product Pipeline	Continuous Investment in R&D
Marksans maintains a strong focus on the OTC segment by strengthening its presence in the large, rapidly growing global store-brand market. The Company aims to increase market share with leading retailers and expand its footprint across key international markets. Concurrently, Marksans is transitioning from generic pharma to consumer healthcare as its OTC product mix rises.	Marksans maintains a pipeline of over 200 products with a target of 20 to 25 new launches annually. Concurrently, the Company is strengthening its pipeline to achieve complete coverage in key therapeutic segments.	The Company maintains a strong focus on R&D investments to expand its product portfolio and strengthen its pipeline. Marksans Pharma currently has 4 R&D centers, more than 50 scientists and over 200 products in its pipeline. Furthermore, the Company has more than 350 ANDAs/ MAs approved and over 30 ANDAs/MAs filed that are awaiting approval.
Global Manufacturing Footprint	Strong Balance Sheet
Marksans operates four regulatory-approved facilities in India, the USA, and the UK with an annual capacity of approximately 26 billion units. These plants hold USFDA, UK MHRA, Australian TGA, EU, and Health Canada accreditations to supply international markets.	Marksans maintains a strong balance sheet supported by consistent cash generation and prudent financial management. Furthermore, it provides the flexibility to drive inorganic growth by evaluating acquisitions in the Europe region for front-end presence, backed by a strong credit rating of CARE AA-; Stable for the long term and CARE A1+ for the short term.

Risk & Mitigation Strategies

Risk	Impact	Mitigation strategy
Regulatory risk	The pharmaceutical industry is highly regulated, and every product must meet stringent quality and regulatory standards before it can be commercialised. Any regulatory action against the Company could adversely impact its reputation and business.	The Company mitigates regulatory risk by maintaining strong quality management systems and ensuring strict compliance with global regulatory standards. All products undergo rigorous R&D processes, regulatory approvals and quality checks, while manufacturing facilities operate in accordance with guidelines set by leading regulatory authorities.
Macroeconomic risk	Global economic uncertainties, including European stagflation, geopolitical tensions, economic slowdowns and increasing geoeconomic fragmentation, may impact global demand and limit the Company\u2019s ability to expand its business.	The Company mitigates these risks by closely monitoring macroeconomic and geopolitical developments while maintaining a diversified presence across markets and product segments. It also focuses on product cost optimization, efficient working capital management and lean operational practices.
Technology risk	As a research-driven industry, pharmaceuticals require continuous technological advancement and sustained investment in R&D. Failure to keep pace with technological developments could affect competitiveness.	The Company addresses this risk by continuously investing in technological advancement and strengthening its R&D capabilities. It also collaborates with reputed international organizations to remain aligned with emerging pharmaceutical developments and industry best practices.

Risk	Impact	Mitigation strategy
Environmental risk	Increasing global focus on climate change, environmental protection and sustainable manufacturing has led to stricter regulatory standards and higher stakeholder expectations. Non-compliance with environmental norms or ineffective waste and emission management could result in regulatory penalties, operational disruptions and reputational damage.	The Company mitigates this risk by adhering to strict environmental compliance and responsible manufacturing practices. It implements proper waste disposal and effluent treatment protocols while investing in green chemistry, energy-efficient systems and tree plantation initiatives to reduce its environmental footprint.
Competition risk	Expansion into new geographic markets may expose the Company to competition from established players, which could impact its market position and profitability.	The Company mitigates this risk through continuous investment in R&D to strengthen its product portfolio and maintain its competitive edge. Its experienced marketing and business development teams closely monitor market trends and provide strategic insights to support informed decision-making.

Outlook

Marksans Pharma remains focused on strengthening its growth trajectory through capacity expansion, enhancement of its product portfolio and deeper penetration across key therapeutic segments.

The Companys growth roadmap for FY 2026-27 and beyond rests upon 4 pillars-

Broaden	Expand	Deepen	Scale
To add adjacent OTC categories, select Rx-to-OTC switches, and increase its retailer base in key regions.	Focuses on organic entry into new geographies and selective front-end acquisitions.	To increase SKUs per existing retailer and expand its share in core OTC categories.	To ramp up utilisation of expanded manufacturing capacity and improve operating leverage.

Under its Strategic Vision FY 2029-30, Marksans Pharma aims to become a top global consumer healthcare company and establish a multi-continent front-end direct presence. The Company also targets generating strong FCF to support shareholder returns. Additionally, its vision includes maintaining ESG-embedded, compliant, sustainable operations.

Financial Review [Consolidated]

Profit & Loss Review

(Rs. in Million)

Particulars	FY 2025-26	FY 2024-25	YoY Change (%)
Revenue	29,509.38	26,228.45	12.51%
Cost of Goods Sold	12,772.79	11,437.42	11.68%
Employee Benefits Expense	4,209.34	3,502.99	20.16%
Depreciation and Amortisation Expense	986.32	833.86	18.28%
Finance Cost	241.25	116.60	106.90%
Profit After Tax	4,200.60	3,826.19	9.79%

Balance Sheet Review

Equity & Liabilities

(Rs. in Million)

Particulars	FY 2025-26	FY 2024-25	YoY Change (%)
Reserves & Surplus	29,778.40	24,215.96	22.97%
Trade Payables	3,369.09	3,057.00	10.21%
Non-current Liabilities	2,811.32	2,729.11	3.01%
Other Financial Liabilities	301.30	236.49	27.40%
Provisions - Current Liabilities	3.18	14.47	(78.02%)
Lease Liabilities (Current)	436.58	354.92	23.01%
Other Current Liabilities	449.01	580.26	(22.62%)
Borrowings	295.91	230.85	28.18%

Assets

(Rs. in Million)

Particulars	FY 2025-26	FY 2024-25	YoY Change (%)
Property, Plant & Equipment (including ROU Assets)	9,258.76	8,864.09	4.45%
Other Financial Assets (Non-current)	38.72	35.71	8.43%
Other Current Financial Assets	49.26	35.57	38.49%
Inventories	9,722.81	8,455.16	14.99%
Trade Receivables	6,445.66	5,400.43	19.35%
Other Current Assets	1,004.62	977.94	2.73%
Other Non-current Assets	175.54	217.60	(19.33%)
Cash & Cash Equivalents	6,341.37	4,957.86	27.91%
Bank Balances Other than Cash & Cash Equivalents	3,555.14	2,084.23	70.57%

Key Financial Ratios [Consolidated]

Particulars	FY 2025-26	FY 2024-25	YoY growth	Details of significant changes
Debtors\u2019 turnover ratio (days)	73	69	5.80	-
Inventory Turnover (days)	260	234	11.11	-
Interest Coverage ratio (times)	24.90	45.68	-45.49	Due to higher profit margin
Operating profit margin (%)	19.81	19.66	0.76	-
Return on net worth (%)	13.76	15.37	-10.47	-
Net Profit (%)	14.23	14.59	-2.47	-
Current ratio (times)	5.17	4.62	11.90	-
Debt-equity ratio (times)	0.11	0.13	-15.38	-

Key Financial Ratios [Standalone]

Particulars	FY 2025-26	FY 2024-25	YoY growth	Details of significant changes
Debtors\u2019 turnover ratio (days)	160	143	11.89	-
Inventory Turnover (days)	106	113	-6.19	-
Interest Coverage ratio (times)	243.83	177.26	37.56	-
Operating profit margin (%)	29.29	20.81	40.75	Due to increase in revenue and profit after tax
Return on net worth (%)	18.20	13.61	33.73	Due to increase in profit after tax
Net Profit (%)	22.42	16.03	39.86	Due to increase in profit after tax
Current ratio (times)	4.22	3.13	34.82	Due to increase in cash and bank balance
Debt-equity ratio (times)	0.01	0.01	-	-

Human Resource

Marksans is committed to upholding and promoting human rights across its operations. With a workforce of over 2,000 employees, the Company places strong emphasis on employee empowerment, teamwork and continuous skill development.

Through comprehensive talent development programs, Marksans focuses on strengthening employee capabilities and fostering a culture of teamwork and innovation. These initiatives help build a highly skilled and motivated workforce that supports the Companys long-term growth and operational excellence.

Internal Control System and Their Adequacy

The Company has established a comprehensive internal control and risk management framework to ensure operational efficiency, effectiveness, and compliance with applicable laws and regulations. It integrates various personnel who coordinate their responsibilities to maintain robust oversight and risk management processes. The Board of Directors provides strategic oversight and guidance to the management, supported by specialized committees that monitor control and risk management processes. The internal audit function operates under the supervision of the Board and in coordination with the Board-appointed Statutory Auditors. Regular reviews by senior management, including the Chairman, Managing Director, COO, and CFO, enable timely identification and resolution of any discrepancies, thereby ensuring the adequacy and reliability of the internal control system.

Cautionary Statement

In accordance with applicable securities laws and regulatory requirements, certain statements in this section relating to the Companys objectives, expectations, projections, and estimates may constitute forward-looking statements. These statements are based on current assumptions and expectations regarding future events. The Company does not, however, guarantee that these forecasts and assumptions are true or that they will come to pass. Several external factors outside the control of the Company may cause actual results to differ materially from those stated or implied in these statements. The Company disclaims any obligation to update, change, or modify forward-looking statements in response to future developments.