Onyx Biotec Ltd Management Discussions

FY 2026 represents the fiscal year 2025-26, from 1 April 2025 to 31 March 2026, and analogously for FY 2025 and previously such labelled years.

GLOBAL ECONOMY

The global economy is proving more resilient than anticipated despite persistent trade tensions and policy uncertainty, according to the World Bank s latest Global Economic Prospects report. Global growth is projected to remain broadly steady over the next two years, easing to 2.6% in 2026 before rising to 2.7% in 2027, an upward revision from the June forecast. The resilience reflects better-than-expected growth especially in the United States, which accounts for about two-thirds of the upward revision to the forecast in 2026. Even so, if these forecasts hold, the 2020s are on track to be the weakest decade for global growth since the 1960s. The sluggish pace is widening the gap in living standards across the world, the report finds: at the end of 2025, nearly all advanced economies enjoyed per capita incomes exceeding their 2019 levels, but about one in four developing economies had lower per capita incomes.

In 2025, growth was supported by a surge in trade ahead of policy changes and swift readjustments in global supply chains. These boosts are expected to fade in 2026 as trade and domestic demand soften. However, the easing global financial conditions and fiscal expansion in several large economies should help cushion the slowdown, according to the report. Global inflation is projected to edge down to 2.6% in 2026, reflecting softer labor markets and lower energy prices. Growth is expected to pick up in 2027 as trade flows adjust and policy uncertainty diminishes.

In 2026, growth in developing economies is expected to slow to 4% from 4.2% in 2025 before edging up to 4.1% in 2027 as trade tensions ease, commodity prices stabilize, financial conditions improve, and investment flows strengthen. Growth is projected to be higher in low-income countries, reaching an average of 5.6% over 2026 27, buoyed by firming domestic demand, recovering exports, and moderating inflation. However, this will not be sufficient to narrow the income gap between developing and advanced economies. Per capita income growth in developing economies is projected to be 3% in 2026 about a percentage point below its 2000-2019 average. At this pace, per capita income in developing economies is expected to be only 12% of the level in advanced economies.

More than half of developing economies now have at least one fiscal rule in place. These can include limits on fiscal deficits, public debt, government expenditures, or revenue collection. Developing economies that adopt fiscal rules typically see their budget balance improve by 1.4 percentage points of GDP after five years, once interest payments and the ups and downs of the business cycle are accounted for. Use of fiscal rules also increases by 9 percentage points the likelihood of a multi-year improvement in budget balances. However, the medium- and long-term benefits of fiscal rules depend heavily on the strength of institutions, the economic context in which the rules are introduced, and how the rules are designed, the report finds.

OVERVIEW OF THE INDIAN ECONOMY

India s economic journey over the past few years has been marked by remarkable growth and a steady rise in its position on the global stage. After overtaking the United Kingdom (UK) to become the fifth largest economy in Q1 FY23, India has continued this upward trajectory to surpass Japan in June 2025 to become the fourth largest economy in the world. With a nominal Gross Domestic Product (GDP) of Rs. 3,31,03,000 crore (US$ 3.78 trillion),

India s growth reflects a combination of strong domestic demand and policy reforms positioning the country as a key destination for global capital.

Further, India is projected to reach a GDP of Rs. 4,26,45,000 crore (US$ 5 trillion) by 2027 and is on course to surpass Germany by 2028. Rising employment and increasing private consumption, supported by rising consumer sentiment, will support GDP growth in the coming months.

India Economic Drivers

Youthful Population

Digital Economy

Manufacturing Base

Innovation

Global Strategic Position

Foreign Investment

For India, 2026 will be the year of resilience in domestic demand, decisive reforms in fiscal, monetary, and labor policies, and recalibrations in trade policies

Three of the biggest global risks for India in 2026 will come from:

US tariff policies and the conclusion of the India-US trade deal, which remains unpredictable.

China s slow recovery and its dominance in critical minerals, which India must monitor as it recalibrates its relationship with Beijing.

Geopolitical tensions in Central Asia that could disrupt commodity prices and key logistics routes, including the Red Sea corridor.

Domestically, the three biggest risks that need to be monitored are:

Poor transmission of policy rate cuts to credit growth.

A resurgence of inflation as demand picks up fast (and core has been above 4%).

Possible implications of lower tax revenues for fiscal consolidation this year.

Market Overview

India s Real Gross Domestic Product (GDP) or GDP at Constant Prices stood at Rs. 47.89 lakh crore (US$ 544.20 billion) in Q1 of FY26, up from Rs. 44.42 lakh crore (US$ 504.77 billion) in Q1 FY25, registering a growth rate of 7.8%. Nominal GDP or GDP at Current Prices for the same period was estimated at Rs. 86.05 lakh crore (US$ 977.84 billion), compared to Rs. 79.08 lakh crore (US$ 898.64 billion) in the corresponding quarter of the previous year, showing a growth rate of 8.8%.

As on October 14, 2025, India is home to 123 unicorns, with six new startups achieving unicorn status in 2025.

India s current account recorded a deficit of Rs. 21,288 crore (US$ 2.37 billion) in Q1 FY26 (April-June), compared to Rs. 76,282 crore (US$ 8.6 billion) in the same period of FY25, according to the Reserve Bank of India (RBI). The improvement reflects a narrower merchandise trade gap and steady growth in service exports. Exports fared remarkably well during the pandemic and aided recovery when all other growth engines were losing steam in terms of their contribution to GDP. Going forward, the contribution of merchandise exports may waver as several of India s trade partners witness an economic slowdown. According to Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles Mr. Piyush Goyal, Indian exports are expected to reach US$ 1 trillion by 2030 .

India s near-term outlook

In its latest World Economic Outlook report, the IMF said Indias economy is now expected to grow by 7.3% in FY26, up 0.7 percentage points from its earlier estimate. The upgrade reflects better-than-expected growth in the third quarter and continued strength in the fourth quarter of the current fiscal year.

The International Monetary Fund (IMF) has raised its growth forecast for India s economy in fiscal year 2026 by 0.7 percentage points to 7.3%, pointing to strong economic momentum. However, it expects growth to moderate to around 6.4% over the following two financial years as temporary cyclical factors ease.

The IMF s revised outlook follows an update by India s National Statistics Office (NSO), which earlier this month raised its estimate for growth in the year ending March 31 to 7.4%. This was higher than the government s initial projection of 6.3% to 6.8%, reinforcing the view that the economy has performed better than expected.

Industry Overview

THE PHARMACEUTICAL INDUSTRY SECTOR

The Indian pharmaceutical industry remained one of the strongest-performing sectors during FY 2025 26, the production of generic drugs and vaccines. According to Bain & Co, the Indian pharmaceutical market stood at Rs. 4,71,295 crore (US$ 55 billion) in 2025 and is expected to grow to Rs. 10,28,280-11,13,970 crore (US$ 120-130 billion) by 2030. Recognised as the pharmacy of the world , India supplies one in five generic medicines globally and has risen from seventh place in 2019 to third in global export volume.

As per the Press Information Bureau release dated December 17, 2025, India s pharmaceutical exports reached US$ 30.47 billion in 2024-25 (up 9.4%), supported by recent regulatory and export promotion measures, reinforcing its position as a leading global pharma supplier.

India s pharmaceutical sector is witnessing strong growth, driven by supportive government policies and rising innovation. The Department of Pharmaceuticals has strengthened the ecosystem through schemes like the Promotion of Research and Innovation in Pharma MedTech Sector (PRIP), with key developments notified on October 1, 2025, to boost R&D and domestic manufacturing.

The pharmaceutical industry s total turnover stood at Rs. 2,25,000 crore (US$ 26.26 billion) in FY25, led by cardiac, gastrointestinal, and anti-diabetic segments. India ranks among the top 12 destinations for biotechnology worldwide and is the third largest in Asia Pacific. The country s Bioeconomy has expanded from Rs. 85,690 crore (US$ 10 billion) in 2014 to Rs. 11,99,660 crore (US$ 140 billion) in February 2025 and is expected to reach Rs. 21,42,250 crore (US$ 250 billion) in the coming years, driven by thriving biotech startups.

India s drugs and pharmaceuticals exports reached Rs. 2,59,658 crore (US$ 30.38 billion) in FY25, up from Rs. 2,43,119 crore (US$ 27.82 billion) in FY24. Drug formulations and biologicals dominated with Rs. 1,96,401 crore (US$ 22.92 billion), accounting for 75% of total exports. The hospital market was valued at US$ 98.98 billion in FY23 and is projected to grow to US$ 193.59 billion by FY32. In FY26, private hospitals are expected to add over 4,000 beds with Rs. 11,500 crore (US$ 1.34 billion) investment.

Indian pharmaceutical firms have a Rs. 85,690 crore (US$ 10 billion) opportunity by 2029 as 15 blockbuster drugs with combined revenue of Rs. 9,59,728 crore (US$ 112 billion) go off-patent. Non-prescription OTC drugs may soon be sold at general stores, pending licensing.

India s pharmaceutical R&D is projected to receive Rs. 17,000 crore (US$ 2 billion) by FY28. PRIP funding of Rs. 720.97 crore (US$ 82.5 million) supports Centres of Excellence at NIPER and private-sector milestone-based research. Emcure Pharmaceuticals launched Orofer FCM 750, a new parenteral iron brand for Indian patients. Japanese companies have been invited to invest, stabilising global API and medical device supply chains.

The domestic pharmaceutical market is expected to reach US$ 130 billion by 2030. Initiatives like Ayushman Bharat Digital Mission aim to strengthen India s integrated digital health infrastructure. BIRAC provides funding through BIG, SEED, and LEAP schemes, ranging from Rs. 30 lakh to Rs. 100 lakh per startup.

India s pharmaceutical sector continues to solidify its position as a global healthcare leader, driven by strong domestic manufacturing, export excellence, and continuous innovation. With expanding R&D capabilities, supportive government policies, and growing global partnerships, the industry is poised to advance further in biotechnology, active pharmaceutical ingredients (APIs), and medical devices. Looking ahead, India is set to play an even greater role in ensuring global health security, delivering affordable and high-quality medicines, and leading the next phase of growth in life sciences and digital healthcare. (Source: https://www.ibef.org/industry/indian-pharmaceuticals-industry-analysis-presentation)

INDIAN PHARMACEUTICAL INDUSTRY

The Indian pharmaceutical industry continued to demonstrate resilience and sustained growth during the financial year 2025-26, supported by robust domestic demand, expanding export opportunities, increasing healthcare awareness, and favourable government policy initiatives. India remains one of the worlds leading pharmaceutical manufacturing hubs and continues to reinforce its position as the Pharmacy of the World, supplying affordable, high-quality generic medicines and vaccines to more than 200 countries.

The industry maintained its global leadership as the largest supplier of generic medicines by volume and one of the worlds largest vaccine manufacturers. Indian pharmaceutical companies continued to benefit from their strong manufacturing base, extensive regulatory approvals, cost competitiveness, and increasing capabilities in complex generics, biosimilars, specialty products, contract development and manufacturing (CDMO), and active pharmaceutical ingredients (APIs).

Market Performance

The Indian pharmaceutical market witnessed healthy growth during FY 2025-26, driven primarily by increased demand for therapies related to chronic diseases, cardiovascular disorders, diabetes, oncology, respiratory ailments, gastroenterology, and anti-infectives. The domestic market was supported by rising healthcare expenditure, wider insurance coverage, improved healthcare infrastructure, greater penetration into rural markets, and growing adoption of preventive healthcare.

Industry estimates indicate that the domestic pharmaceutical market continued its steady expansion, supported by new product introductions, volume growth, and selective price increases across key therapeutic segments. The sector also benefited from increased demand for specialty medicines and value-added formulations.

DRY POWDER INJECTIONS AN OVERVIEW

Dry Powder Injections (DPIs) represent an important segment of the sterile injectable pharmaceutical market, offering enhanced product stability, extended shelf life, and improved compatibility for drug molecules that are unstable in liquid formulations. These products are manufactured in a lyophilized (freeze-dried) or sterile dry powder form and require reconstitution with a suitable diluent immediately before administration, ensuring the maintenance of potency and therapeutic efficacy.

Dry powder injectable formulations are extensively used across therapeutic areas such as anti-infectives, oncology, critical care, anaesthesia, cardiology, and emergency medicine. They are particularly suitable for antibiotics, biologics, peptides, and other moisture-sensitive active pharmaceutical ingredients (APIs) where long-term stability is essential.

The growing incidence of infectious diseases, antimicrobial resistance, chronic illnesses, cancer, and the increasing demand for hospital-based therapies continue to drive global demand for sterile injectable products. Additionally, the expansion of healthcare infrastructure, rising surgical procedures, ageing populations, and greater access to advanced medical treatments are contributing to sustained growth in the injectable pharmaceuticals market.

Manufacturing dry powder injections requires advanced sterile manufacturing facilities, specialized lyophilization technology, stringent environmental controls, and rigorous adherence to Good Manufacturing Practices (GMP). Product quality is governed by comprehensive quality assurance systems encompassing aseptic processing, sterility assurance, particulate control, container-closure integrity, and compliance with international regulatory standards established by agencies such as the USFDA, EMA, MHRA, and other global health authorities.

India has emerged as a significant global manufacturing hub for sterile injectable products, supported by a strong pharmaceutical manufacturing base, cost competitiveness, skilled scientific talent, and increasing investments in state-of-the-art production facilities. Indian manufacturers continue to expand their presence in regulated and emerging markets by supplying high-quality generic injectable products, contract manufacturing services, and specialty formulations.

THE FUTURE OF THE PHARMACEUTICAL INDUSTRY IN INDIA: KEY TRENDS AND INSIGHTS

Indias pharmaceutical industry is entering a transformative phase, evolving from a global supplier of affordable generic medicines to an innovation-driven healthcare ecosystem. Supported by favourable demographics, rising healthcare expenditure, policy reforms, and increasing global demand for quality medicines, the sector is well positioned for sustainable long-term growth. As one of the worlds largest pharmaceutical manufacturing hubs, India continues to strengthen its competitive advantage through investments in research and development, advanced manufacturing technologies, and regulatory excellence. Industry and government assessments indicate continued healthy growth, supported by domestic demand and expanding global opportunities:

1. Innovation Beyond Generics

While generic medicines remain the foundation of the Indian pharmaceutical industry, companies are increasingly diversifying into complex generics, biosimilars, specialty pharmaceuticals, novel drug delivery systems, and differentiated formulations. Greater emphasis on innovation, intellectual property creation, and product development is expected to enhance Indias position in the global pharmaceutical value chain.

2. Expanding Global Market Opportunities

Growing healthcare needs across developed and emerging markets continue to create significant export opportunities for Indian pharmaceutical companies. Patent expiries, increasing demand for affordable medicines, and supply-chain diversification are expected to drive exports of generic formulations, sterile injectables, active pharmaceutical ingredients (APIs), biosimilars, and contract manufacturing services. Emerging markets in Asia, Africa, Latin America, and the Middle East are also expected to contribute significantly to future growth.

3. Growth of Biologics and Biosimilars

The global shift towards biologics and biosimilars presents a significant opportunity for Indian pharmaceutical companies. Increasing investments in biotechnology research, advanced manufacturing capabilities, and regulatory expertise are enabling Indian companies to participate in high-value therapeutic segments, including oncology, immunology, endocrinology, and rare diseases. These products are expected to become important growth drivers over the coming decade.

COMPANY OVERVIEW

Onyx Biotec Ltd. is a leading pharmaceutical company engaged in the manufacture and sale distribution of generic and proprietary pharmaceutical products.

Onyx Biotec Ltd. established in 2009, develops, manufactures and distributes generic and branded pharmaceutical products in various forms like (WFI) Water for Injection, Dry Powder Injections, Dry Powder Syrup.

We employ a staff of dedicated people who work together to produce drug products that sick people can afford to buy that will treat their illness, make them well, reduce suffering and improve the quality of their lives.

Unit-1 was started in 2010, for the production of Sterile Water for Injections (SWFI) ampoules in FFS technology. Having 6 production machines, and a list of esteemed customers like Aristo, Mankind, Dr

Reddy s, Sun Pharma, Macleods etc, it has established itself as a major player in this field.

Unit 2 came into manufacturing in 2023, and has a state of an art facility, involved in the manufacturing of Dry Powder Injections, and Dry Powder Syrup (Cephalosporin) range. It was granted WHO- GMp certificate by the CDSCO in May 2024. With the latest 21 CFR machines, and technology, it aims to provide the customer with the best of quality products at affordable prices.

The highlights of the financial results for the year ended March 31, 2026 and the corresponding figure for the previous year are as under:

(Rs in Lakhs except EPS)

	Fiscal
Particulars	2025-26	2024-25
Revenue from Operations	6946.94	6,195.37
Other Income	44.46	116.51
Total Income	6991.40	6,311.88
Total Expenditure	7033.57	5,664.06
Profit before tax	42.16	647.82
Current Tax	5.42	106.40
Income tax Adjustment	34.88	3.06
Deferred Tax Adjustment	-61.02	42.93
Profit after Tax	-21.44	495.42
Basic Earnings per share (in )	-0.12	3.31

KEY RATIOS

Particulars	FY 2025-26	FY 2024-25
Revenue (Rs. in Lacs)	6946.94	6,311.88
Net Profit After Tax (Rs. in Lacs)	-21.44	495.42
Earnings per share (in Rs.)	-0.12	3.30
EBITDA (Rs. in Lacs)	307.49	1151.11
Net Profit Margin (%)	-0.31	8.00
Return on Equity Ratio	0	0.12
Current Ratio (times)	1.58	1.91
Debtors Turnover(times)	2.91	3.48
Debt-equity (times)	0.27	0.22
Return on capital employed (%)	1.08	11.88

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis report detailing the Company s objectives, projections, estimates, expectations or predictions may be forward looking statements within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company s operations include global and Indian demand supply conditions, raw material prices, finished goods prices, cyclical demand and pricing in the Company s products and their principal markets, changes in Government regulations, tax regimes, economic developments within India and the countries with which the Company conducts business and other factors such as litigation and / or labor negotiations.

Additional Shareholders Information

FY2026 represents fiscal year 2025-26, from 1 April 2025 to 31 March 2026, and analogously for FY2025 and previously such labelled years.

1. General Body Meetings

Below table gives the details of date, time, location and business transacted through special resolution at last three Annual General Meetings:

Financial Year	Date & Time	Location	Special Resolution(s) Passed
2024-25	September 27, 2025 at 12:30 p.m	AGM Conducted Through Video Conferencing (VC) / Other Audio-Visual Means (OAVM)	None
2023-24	September 30, 2024 at 2.00 p.m.	AGM Conducted Through Video Conferencing (VC) / Other Audio-Visual Means (OAVM)	None
2022-23	September 30, 2023 at 11.00 am	AGM Conducted Through Video Conferencing (VC) / Other Audio-Visual Means (OAVM)	None

Resolution(s) passed through Postal Ballot

During the year, the Company did not pass any special resolution through postal ballot.

Annual General Meeting (AGM ):

As per the Circulars issued by the Ministry of Corporate Affairs and the SEBI, from time to time, the 21 th Annual General Meeting of the Company is scheduled to be held on Monday, September 28, 2026, at 12.30 P.M through Video Conference /Other Audio-Visual Means ( VC/OAVM ) facility. The venue of the AGM shall be deemed to be the registered office of the Company at Village Vir Plassi, Near Sainimajraropar, Nalagarh Road, Solan, Himachal Pradesh 174 101. The detailed instruction for participation and voting at the meeting is available in the notice of the 21 st AGM.

Proposal to Conduct Postal Ballot for any Matter in the Ensuing Annual General Meeting

There is no proposal to conduct a postal ballot for any matter in the ensuing Annual General Meeting.

2. Book Closure Date:-

From September 22, 2026 to September 28, 2026 (both days inclusive)

3. Dividend

To strengthen the financial position of the Company and to augment working capital, your directors do not recommend any dividend for the FY 2026.

4. Financial Calendar

The financial year of the Company starts on 1 st April every year and ends on 31 st March subsequent year. Indicative calendar of events for the financial year 2026-27 are as under For the first half-year ending 30 September 2026 First / Second week of November 2026 2nd half and year March 31, 2027 by the week of May 2027 AGM for the year ending 31 March 2027 First week of September 2027

5. Listing of Stock Exchange and Stock Codes

National Stock Exchange Limited

C-1, Block G, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051