Rubicon Research Ltd Management Discussions

Economy Overview Global Economy

The year under review was characterised by escalating trade tensions and heightened geopolitical uncertainties. Notwithstanding these challenges, the global economy exhibited notable resilience. Global Gross Domestic Product (GDP) grew by 3.5% in Calendar Year (CY) 2025, broadly in line with the previous year and indicative of stable underlying momentum.

Growth was supported by a confluence of factors. Front- loaded trade flows provided impetus to manufacturing and logistics, while sustained investments in Artificial Intelligence (AI), semiconductor ecosystems and digital infrastructure, particularly in North America and parts of Asia, strengthened capital expenditure cycles. At the same time, supportive fiscal measures across major economies helped preserve economic stability while supporting growth.

However growth patterns remained divergent across regions. Advanced economies expanded by 1.9% during the year, indicating a measured pace of growth within relatively stable policy environments, despite ongoing trade constraints. Emerging and developing economies, in contrast, outperformed with a growth of 4.5%, attributable to stronger domestic demand, resilient services activity and continued public investment. Growth across smaller economies remained uneven, constrained by fiscal limitations, currency volatility and elevated debt burdens.

continued focus on resilience and adaptability. As global supply chains stabilise, sustaining economic growth will depend on deeper trade integration, institutional reforms and stronger investment activity particularly across emerging markets.

Global GDP Growth Trend

(in %)

P - Projections

Source - IMF World Economic Outlook, July 2026

Indian Economy

Outlook

Following a year marked by evolving trade barriers and policy uncertainty in CY 2025, global economic activity now faces a major challenge due to escalating tensions in West Asia which has created an increased risk around energy supply chains. Disruptions in vital transit routes such as the Strait of Hormuz have contributed to oil price volatility, with spillover effects on inflation, logistics and industrial activity. Assuming the conflict remains limited in duration and scope, the Global GDP is still projected to grow by 3.0% in CY 2026, followed by a marginal improvement to 3.4% in CY 2027.

India has maintained a strong macroeconomic momentum, retaining its position as one of the fastest-growing major economies globally. Real GDP is estimated to grow by 7.7% in Financial Year (FY) 2026, compared with 7.1% in the previous year, reflecting sustained momentum. Growth was primarily driven by resilient rural demand, favourable agricultural output and a gradual improvement in industrial activity. Government initiatives, including the Production Linked Incentive (PLI) schemes, continued to support manufacturing, while the services sector remained a consistent contributor. Continued public capital expenditure on infrastructure further sustained aggregate demand.

Global headline inflation is projected to rise modestly by 4.7% in CY 2026 before resuming its decline to 3.9% in CY 2027. Fiscal and monetary policies across major economies are likely to remain broadly supportive, while expanding trade partnerships may enhance supply chain diversification. However, the nearterm outlook may witness intermittent volatility due to evolving geopolitical developments, particularly impacting energy markets, which could result in temporary cost pressures and supply-side disruptions. Overall, the global environment warrants a measured approach in the near term, with a

Inflation remained broadly contained, with the full year CPI inflation estimated at 2.1%, well within the RBIs 2-6% tolerance band. Stable price dynamics supported real incomes and consumption across both urban and rural segments. Fiscal and monetary measures, including income tax relief, Goods and Services Tax (GST) rationalisation and an accommodative policy stance, contributed towards maintaining demand conditions.

India continued to strengthen its integration with global value chains. Ongoing trade negotiations with the US and the

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conclusion of the Free Trade Agreement (FTA) with the European Union (EU) and the United Kingdon (UK) are expected to support exports, facilitate technology transfer and attract long-term investment. In response to geopolitical developments in the Middle East, India has taken steps to diversify crude oil sourcing and strengthen alternative supply channels, improving overall energy security.

and upgraded free trade agreements and continued efforts to improve the ease of doing business.

Inflation is expected to remain moderate under the revised base year. This may allow the Reserve Bank of India (RBI) to maintain a supportive monetary policy stance that facilitates investment and sustains credit growth.

Outlook

Looking ahead, India is projected to remain the fastest-growing major economy. Real GDP growth for FY 2027 is expected to be 6.6%. Expansion is anticipated to be supported by continued government capital expenditure and a recovery in private consumption. Real Private Final Consumption Expenditure is projected to grow by around 7.0% in FY 2026, indicating improving demand.

Ongoing structural reforms are expected to support long-term growth. These include GST rationalisation, progress on new

Indian GDP Growth Trend

(in %)

Industry Overview

Global Pharmaceutical Industry

Global Medicine Market Size and Growth Including Estimated COVID-19 Vaccine and Therapeutic Spending (2016-2030)

(in USD Billion)

Global demand for pharmaceuticals continues to expand, supported by improving healthcare access, sustained innovation in drug development and rising medicine utilisation. According to IQVIA, global medicine consumption is expected to approach 4 trillion defined daily doses by 2030, reflecting broader treatment access and deeper market penetration worldwide. Over the next several years, global medicine expenditure is projected to exceed USD 2.6 trillion by 2030, growing at an annual rate of 5-8%, driven by new product launches, expanding access to care and increasing adoption of innovative therapies. Developed markets are expected to remain the primary contributors to pharmaceutical spending through continued uptake of high-value treatments across therapeutic areas such as oncology, immunology, diabetes and obesity, while emerging economies are anticipated to drive volume growth as healthcare infrastructure and patient access continue to improve. Demographic shifts, including an ageing population and the rising prevalence of chronic diseases, together with patent expiries, increasing biosimilar adoption and a growing focus on affordability, are expected to support the industrys long-term growth trajectory.

Key Structural Drivers of Global Pharmaceutical Growth

The global pharmaceutical markets sustained expansion is underpinned by a confluence of structural drivers expected to persist well into the next decade.

Ageing Population

The global ageing population continues to expand rapidly, creating sustained demand for healthcare services and pharmaceutical therapies. According to the World Health Organization (WHO), the global population aged 60 years and above is projected to increase from 1 billion in 2020 to 1.4 billion by 2030 and 2.1 billion by 2050. The growing elderly population is expected to increase the prevalence of age-related conditions

requiring long-term medication, supporting continued growth in pharmaceutical demand.

Rising Burden of Chronic Diseases

The increasing prevalence of non-communicable diseases (NCDs) remains a key driver of global pharmaceutical demand. According to the World Health Organization (WHO), NCDs accounted for 43 million deaths in 2021, representing 75% of all non-pandemic-related deaths globally, with cardiovascular diseases, cancer, chronic respiratory diseases and diabetes being the leading contributors. The growing burden of chronic diseases is expected to sustain demand for long-term disease management therapies, Specialty medicines and innovative treatment solutions.

R&D Momentum and the Generics Opportunity

Global pharmaceutical R&D expenditure grew from USD 196 billion in 2019 to USD 306 billion in 2024, fuelling the development of advanced therapies, including cell and gene therapies, monoclonal antibodies and mRNA-based medicines (Source: F&S Report). According to IQVIAs Global R&D Trends 2026, biopharmaceutical innovation continues to remain resilient, with R&D investment sustained above pre-pandemic levels and increasing adoption of AI-enabled drug discovery supporting improvements in early-stage development productivity.

Growing Adoption of Cost-effective Generic Medicines

In the United States, total national healthcare expenditure exceeded USD 4.1 trillion in FY25, with approximately 90% of this expenditure attributed to managing chronic diseases and mental health conditions. Generics, which account for over 72% of prescription volumes in the US while representing only 10.6% of market value, are the primary mechanism through which healthcare systems achieve cost efficiency (Source: IQVIA NSP Data / F&S Report).

Global Medical Spending and Growth, Excluding COVID-19 Vaccines and Therapeutics, Constant (2020-2030)

(in USD Billion)

Source: IQVIA Global Medicine Use Trends 2026

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The United States - The Worlds Largest Pharmaceutical Market

US Pharmaceutical Market Growth (FY2024-FY2030)

(USD Billion)

Source: F&S Report - based on IQVIA NSP Data

46.9%

Share of global pharmaceutical sales (2024)

USD 13,000+

Per capita healthcare expenditure (2023)

USD 48 Billion

following the launch of the first product approved under the ANDA/NDA pathway, look to address unmet patient needs by delivering a differentiated product that offers tangible benefits over and above legacy products. First movers and early entrants in SPx are well positioned to build more durable competitive positioning and superior product economics relative to conventional generics.

Specialty products also include products developed through the 505(b)(2) NDA regulatory pathway, which allows for the approval of modifications or improvements to existing drugs based on clinical data, including safety and efficacy data from studies not conducted by the generic applicant. By leveraging this pathway, Specialty products can offer novel formulations, delivery mechanisms, or indications compared to their brand- name counterparts or existing generic versions, further setting them apart within the generic drug landscape. The complexities of developing these products or the novelty of their formulations often present hurdles to widespread competitive entry. Such NDA products are marketed as branded products, with companies building brand affinity among patients and prescribers via brand promotion efforts.

NIH funding for biomedical research (FY2025)

The United States continues to be the worlds largest pharmaceutical market, supported by a mature healthcare ecosystem, robust R&D investments and high medicine utilisation. The market accounted for approximately 46.9% of global pharmaceutical sales in 2024 and is projected to grow from USD 761 billion in FY2024 to approximately USD 1.2 trillion by FY2030, reflecting a CAGR of 7.5%. High per- capita healthcare expenditure, strong innovation capabilities and sustained government funding for biomedical research continue to reinforce the countrys leadership in the global pharmaceutical industry.

Central Nervous System (CNS) - A High-Growth Therapy Area

The Central Nervous System (CNS) remains one of the largest and fastest-growing therapeutic segments in the US pharmaceutical market, driven by the increasing prevalence of mental health disorders, neurodegenerative diseases and chronic pain conditions. According to the Centers for Disease Control and Prevention (CDC), more than one in five US adults lives with a mental illness, while over one in five adolescents (13-18 years) has experienced a seriously debilitating mental illness at some point in their lives. The segment encompasses a broad range of conditions, including depression, anxiety, schizophrenia, epilepsy, Parkinsons disease, Alzheimers disease and multiple sclerosis. In addition, the rising incidence of chronic pain, increasing number of surgical procedures and an ageing population continue to drive demand for analgesics, particularly non-narcotic therapies. Supported by these structural trends, the US CNS market is projected to grow from approximately USD 76.0 billion in FY2020 to USD 98.3 billion by FY2030, reinforcing its position as a key therapeutic opportunity for pharmaceutical companies (Source: F&S Report).

Specialty Products serving unmet needs - The High-Value Growth Frontier

Specialty Products (SPx), identified as those with fewer than three companies in the market during the initial two years

Between 2019 and 2024, Specialty products represented approximately 11.6% of total active ANDA approvals by the US FDA. The highest approvals in this space were concentrated in CNS (23.8%), Alimentary Tract and Metabolism (12.5%), and Cardiovascular (10.0%) therapy areas (Source: FDA Orange Book / F&S Report).

Drug-Device Combinations - Science Based Entry Barriers, High-Value Opportunities

Drug-device combination products (DDCs) integrate pharmaceutical formulations with specialised delivery devices such as auto-injectors, dry powder inhalers, nasal sprays and soft mist inhalers, enabling improved therapeutic outcomes and patient convenience. Their development requires advanced formulation science, device engineering and regulatory expertise, creating significant barriers to entry and limiting competitive intensity compared with conventional generic products.

Among these, nasal drug delivery continues to gain prominence owing to its non-invasive administration, rapid absorption and targeted delivery potential, making it increasingly suitable for vaccines, peptides and hormonal therapies. Reflecting the higher complexity of these products, while 176 companies secured approvals for oral solid dosage (OSD) products between 2019 and 2024, only 28 companies received approvals for nasal sprays, (Source: F&S Report).

Upcoming Patent Expiries - A Generics Growth Catalyst

The accelerating loss of patent exclusivity for branded pharmaceuticals-commonly referred to as the patent cliff- is expected to be one of the most significant growth catalysts for the global generics industry. Between 2025 and 2029, drugs generating cumulative annual revenues of approximately USD 94.8 billion are expected to lose patent protection in the United States, creating substantial opportunities for generic and Specialty pharmaceutical manufacturers. This pipeline includes nearly 200 small-molecule drugs, of which approximately 40 are blockbuster products, each generating annual revenues exceeding USD 1 billion. The Central Nervous System (14.8%) and Cardiovascular (12.2%) segments together account for a significant share of this opportunity (Source: Evaluate Pharma / F&S Report).

Reflecting this market opportunity, the US generic pharmaceutical market is projected to reach USD 160 billion by 2030, representing a CAGR of 11.9% from USD 91 billion in 2025, which is significantly higher than the historical growth rate of 2.6% recorded between 2020 and 2024 (Source: IQVIA).

Company Overview

Rubicon Research Limited, founded in 1999, is an R&D-driven pharmaceutical formulations company focused on developing, manufacturing and commercialising complex generics, Specialty products and drug-device combination therapies for regulated markets, particularly the United States. Over the years, the Company has evolved from a development services company into a fully integrated formulations development, manufacturing and marketing company with front-end commercial capabilities, supported by a data-driven and ROI-focused product selection approach. Its sustained investment in R&D, differentiated product portfolio and strong commercialisation track record have enabled multiple product approvals, robust pipeline development and consistent growth. Through its US subsidiaries, AdvaGen and Validus, the Company has established a dualchannel go-to-market strategy for non-branded and branded products, respectively with dedicated commercial resources and focus for each channel.

? 17,540 million

Revenue from operations (FY26)

36% 126 days

ROACE (Pre-tax) Net working capital days

The Company operates a global footprint comprising manufacturing facilities in Ambernath, Satara and Pithampur, R&D centres in India and Canada and a warehouse & distribution center in the United States. Its manufacturing capabilities span oral solids, oral liquids, topical formulations and nasal drug-device combinations, with Specialty products contributing an increasing share of profits. Strategic Investments

In June 2025, the Company strengthened its US supply chain through the acquisition of AimRx 3PL LLC, a licensed pharmaceutical logistics platform based in East Brunswick, New Jersey. Authorised to distribute prescription pharmaceuticals across 45 states, AimRx serves as the Companys captive distribution platform, enhancing direct servicing of major wholesalers, group purchasing organisations (GPOs) and retail pharmacy networks, while reinforcing its vertically integrated US commercial platform.

During the year, Rubicon Research Limited also made two strategic investments that reflect the Companys longterm perspective on the future of medicine. The Companys investment in Neuronasal-a company pioneering intranasal drug delivery for neurological conditions, including Parkinsons disease and traumatic brain injury-is a natural extension of the nasal drug-device combination capabilities that Rubicon Research Limited has developed over the past several years. The investment also provides the Company with early access to a delivery platform that has the potential to redefine how CNS therapies reach patients.

Rubicon Research Limiteds strategic investment in GEn1E Lifesciences, a California-based Phase 2 clinical-stage biotechnology company, is closely aligned with the Companys vision of integrating next-generation technologies into pharmaceutical innovation. Through this partnership, the Company gains access to GEn1Es proprietary AI-powered endotyping platform, which combines clinical, multi-omics and biomarker data to enable more precise patient stratification and support the development of targeted therapies.

The collaboration also brings together GEn1Es precision medicine capabilities with Rubicon Research Limiteds formulation development, manufacturing and commercialization expertise, creating opportunities to accelerate the development of differentiated therapies across immunology, inflammation, rare diseases and selected CNS programs. Both investments represent deliberate, long-term commitments by the Company to scientific platforms that complement its core capabilities and position it to participate in emerging areas of therapeutic innovation.

Rubicon Research Limited believes that external innovation is a key element of its pipeline strategy and helps the Company build and deploy new capabilities that further improve the lives of the patients it serves. The Company actively seeks partnership

INNOVATION QUALITY CARE

opportunities that enable it to leverage its development and commercial capabilities to bring innovative products to market.

External innovation forms an integral part of Rubicon Researchs pipeline strategy, enabling the Company to strengthen its capabilities and expand its product portfolio. The Company actively pursues strategic partnerships to leverage its development and commercial expertise, accelerating the commercialisation of innovative products and improving patient outcomes.

Subsequent to the year-end, in April 2026, the Company acquired an 85% stake in Arinna Lifesciences, marking its entry into Indias central nervous system (CNS) formulations market and a strategic expansion into the domestic chronic therapies segment.

Key Strengths

r ^ Key Strength	Supporting Performance Metric
R&D-Driven Business Model	\u2022 11.3% of revenue invested in R&D \u2022 240+ R&D professionals
Strong Product Pipeline & Commercialisation	\u2022 12 approvals \u2022 24 products under review \u2022 92% commercialisation rate
Growing Specialty Portfolio	\u2022 33% of gross profit from Specialty products
Established Presence in Regulated Markets	\u2022 98% of revenue from regulated markets
Scalable Manufacturing Platform	\u2022 3 manufacturing facilities \u2022 Expansions underway to augment projected growth across sites
Strong Financial Performance & Capital Efficiency	\u2022 36.6% revenue growth \u2022 83.6% PAT growth \u2022 23.3% EBITDA margin \u2022 36% ROACE

Product Performance Specialty products

The Company defines Specialty products as those with no substitutable competitor or, at most, one competitor for at least one year following launch of the companys product. This classification is based on competitive intensity and pricing power, rather than the regulatory pathway or product complexity.

Increasing gross profit share of Specialty products

(INR Mn)

Specialty products contributed 32.3% of the Companys total gross profit in FY2026, compared with 26.9% in FY2025 and approximately 13% in FY2023. In absolute terms, gross profit from Specialty products increased from H342 million in FY2023 to H3,767 million in FY2026, reflecting the Companys strategic focus on differentiated products. The number of commercialised Specialty products increased from 3 in FY2023 to 16 in FY2025, with further additions during FY2026, driven by the continued evolution of its pipeline towards higher-value and differentiated products.

Portfolio concentration

¦ Top 5 product ¦ Top 10 product

Despite the increasing contribution from Specialty products, the Companys portfolio remains deliberately diversified, with no meaningful concentration in any single product. The top five products accounted for approximately 34% of revenue in FY2026, compared with 56% in FY2023, reflecting a progressive reduction in revenue concentration as the portfolio expanded. Similarly, the top ten products contributed approximately 53% of revenue in FY2026, down from 77% in FY2023. This broad- based growth has been driven by both market share gains in established products and the successful commercialisation of new product launches.

Nuanced portfolio strategy reflected in sustained market

economics

Source: Frost & Sullivan Report

Rubicons portfolio recorded an average unit price increase of 8.0% during FY2022-FY2025, compared with an industry average price erosion of 5.2% over the same period. This performance reflects its disciplined product selection strategy, with a focus on products characterised by limited competition, complex formulations and differentiated drug delivery mechanisms.

Manufacturing

Rubicon Research Limited has established a well-integrated and modern manufacturing network to support its portfolio of complex generics, Specialty products and drug-device combination therapies. The Companys USFDA-inspected facilities in India are equipped with advanced technologies spanning oral solids, oral liquids, topical formulations and nasal drug-device combinations, enabling reliable supply to highly regulated markets.

The Companys manufacturing strategy is supported by a calibrated mix of in-house manufacturing and contract manufacturing, providing both scalability and operational flexibility. Its in-house manufacturing capabilities encompass oral solid dosage (OSD), oral liquid (OS), nasal spray (NS) and topical products, while strategic outsourcing provides additional capacity to support growing demand and maintain supply continuity. The addition of the Pithampur facility is expected to strengthen in-house manufacturing capabilities, support future scale-up and enhance operating efficiencies over the long term.

Manufacturing Facilities

Financial Performance

(H In million)

	FY 2026	FY 2025
Total Income	17,617	12,879
EBITDA	4,080	2,679
EBITDA Margin	23.16%	20.80%
EBITDA Pre R&D	6,015	4,004
EBITDA Pre R&D Margin	34.14%	31.09%
Profit Before Tax	3,205	1,945
Profit for the Year (PAT)	2,467	1,344
Net Worth*	12,888	5,410
Net Profit Margin (%)	14.10%	10.43%

*Net Worth represented by Shareholders Funds.

Financial Performance Summary

The Company delivered a strong financial performance during FY2026, driven by broad-based growth across its product portfolio and the increasing contribution of Specialty products. Total Income increased by 35.9% to H17.617 million, while EBITDA grew by 52.3% to H4,080 million. Profit Before Tax and Profit After Tax increased by 64.8% and 83.6%, respectively, reflecting operating leverage, a favourable product mix and stable pricing across key markets. The Companys balance sheet strengthened significantly during the year, supported by IPO proceeds, debt reduction and strong cash generation, resulting in Shareholders Funds (Net Worth) increasing to H12,888 million. EBITDA margin improved to 23.16% from 20.67%, while Net Profit Margin expanded to 14.10% from 10.50%, highlighting enhanced profitability and operating efficiency.

r Facilit y	Description
Ambernath	Oral solids and nasal drug-device
(Maharashtra)	manufacturing facility
Satara (Maharashtra)	Oral liquids formulations facility supporting a diversified dosage portfolio.
Pithampur (Madhya Pradesh)	Oral Solid including High-potency manufacturing facility for oncology, hormones and topical products; USFDA qualification activities completed and
	ramp-up targeted from Q1 CY2027.

Global CMOs: The Company leverages a network of contract manufacturing organisations across geographies to enhance capacity flexibility, support growing demand and maintain supply continuity.

Key Financial Ratios

Ratio	FY2026	FY2025 Change (%) Remarks
Debtors Turnover Ratio	4.21	4.11 3% Marginal improvement reflecting efficient receivables management despite strong revenue growth.
Inventory Turnover	0.89	0.91 (3%) Improved inventory utilisation while maintaining adequate stock to support future growth.
Interest Coverage Ratio (times)	8.60	6.29 37% Significant improvement driven by higher operating profitability and lower finance costs following debt repayment from IPO proceeds.
Current Ratio (times)	2.01	1.35 49% Improved liquidity supported by higher cash balances, IPO proceeds and a strengthened balance sheet.
Debt-Equity Ratio (times)	0.20	0.73 (72%) Declined significantly due to repayment of borrowings using IPO proceeds and a substantial increase in shareholders funds, strengthening the capital structure.
Operating Profit Margin (%)	20.68%	18.01% 15% Improved owing to healthy revenue growth and favourable operating leverage.
Net Profit Margin (%)	14.07%	10.46% 34% Improved on account of strong revenue growth, operating leverage and sustained profitability during the year.
Return on Net Worth (%)	19.14%	24.84% (23%) Moderated primarily due to a substantial increase in shareholders funds following the IPO, despite strong growth in profit after tax.

Risk Management

Risk	Description	Mitigation Strategy
Pricing pressure in US generics	Sustained and intense competition in the US generics market may lead to price erosion and margin pressure	Focus on Specialty and complex generics with limited competition, differentiated product selection and a disciplined execution and pricing strategy
Regulatory compliance risk	Stringent and evolving requirements from the USFDA and other regulators may impact approvals and operations	Strong quality management systems, regular audits, adherence to global GMP standards and proactive regulatory engagement
Dependence on the US market	High revenue concentration from the US market exposes the Company to geographic and policy risks	Gradual expansion into other regulated markets, such as Canada, MENA, Australia and other geographies
Product concentration risk	Revenue dependency on a limited set of products may impact performance in case of competitive entry or delays	Diversified portfolio with increasing number of commercialised products and limited reliance on any single product
R&D execution ullL \u25a0 i risk	Delays or inefficiencies in R&D may impact pipeline conversion and future growth	Data-driven product selection, strong R&D capabilities and consistent investment (10-11% of revenue)
Manufacturing capacity constraints	Strong demand may lead to reliance on outsourced manufacturing, thereby impacting margins	Capacity augmentation through the Pithampur facility and optimisation of in-house manufacturing mix
Supply chain disruptions	Dependence on APIs and intermediates from global suppliers may lead to disruptions or cost volatility	Multi-sourcing strategy, supplier diversification across geographies and robust inventory management
Currency fluctuation risk	A high share of USD-denominated revenue exposes the Company to forex volatility	Natural hedging through import costs and prudent treasury management practices
Talent and skill availability	A shortage of skilled professionals in R&D and regulatory functions may impact innovation	Structured hiring, campus programmes, internal development initiatives and learning platforms such as Rubicon Academy
Risk	Description	Mitigation Strategy
Intellectual property and litigation risk	Patent challenges or litigation in regulated markets may delay product launches	Strong IP evaluation, legal due diligence and selection of products with favourable risk-reward profiles
Outsourcing dependency	Increased reliance on contract manufacturing may impact quality control and margins	Strategic selection of CMOs, stringent quality audits and a gradual shift towards in-house manufacturing capabilities

Human Resources

Rubicon Research Limited continues to invest in its human capital through a structured and future-oriented talent strategy focused on attracting, developing and retaining skilled professionals across research, manufacturing and commercial functions. The Company promotes a performance-driven and inclusive work culture, supported by equitable practices, employee engagement initiatives and a strong emphasis on capability building. A multi-tier hiring approach, campus recruitment programmes, strategic hiring channels and internal job mobility initiatives enable access to diverse talent pools while supporting employee growth and retention.

The Company places significant emphasis on learning and development, employee wellbeing and workplace safety. Through Rubicon Academy, employees benefit from structured technical, functional and leadership development programmes designed to build a future-ready workforce aligned with the Companys innovation-led business model. During the year, the members approved the ratification of the ESOP Scheme 2025 through a Special Resolution passed by way of Postal Ballot, further strengthening long-term employee alignment with the Companys growth objectives.

The Company also continues to reinforce its performance-led culture through the RUBY and RISE incentive programmes, which recognise sustained high performance, critical skill retention and employee contributions aligned with organisational values and long-term business objectives. Additionally, focused efforts on diversity and inclusion, structured onboarding programmes, employee engagement initiatives and a strong

safety culture continue to strengthen a cohesive and high- performance organisation.

1,303

Total Number of Employees as of March 31,2026

Outlook

Rubicon Research Limiteds outlook is anchored in three strategic pillars: research and development as the primary driver of future revenue growth; a deepening therapeutic focus on central nervous system (CNS) disorders, spanning neuropsychiatry, neurodegenerative and rare diseases, which guides both portfolio selection and inorganic growth initiatives; and disciplined capital allocation, with capacity expansion aligned to anticipated demand and long-term growth opportunities.

Revenue and Profitability Guidance

The Company has guided for an operating EBITDA margin of 2223%, a range it has consistently maintained despite temporary gross margin pressure arising from increased reliance on outsourced manufacturing. This approach reflects the Companys focus on ensuring demand fulfilment and maintaining customer supply reliability while supporting strong revenue growth. With the Pithampur manufacturing facility, acquired during FY2026, expected to commence commercial production from Q1 CY2027, dependence on outsourced manufacturing is anticipated to reduce.

R&D is a lead indicator of future revenues

8,398

Company strives to maintain similar R&D productivity in the coming years which coupled with total expected R&D spend of 5,000 Mn+ in FY26+Fy27+Q1FY28 gives strong visibility for FY29/30 & beyond

R&D Pipeline and Revenue Visibility

The Company has guided for R&D expenditure of H5,000 million or more across the nine quarters spanning FY2026, FY2027 and Q1 FY2028, all of which is expected to be fully expensed through the Statement of Profit and Loss. R&D productivity, measured as incremental revenue in a 3 year time frame, against the preceding nine-quarter R&D spend, has improved consistently from 3.3x in FY2024 to 4.1x in FY2025 and 5.9x in FY2026. This track record of R&D productivity at or above 5x, together with the planned R&D investment, is expected to provide strong revenue visibility for FY2029, FY2030 and beyond. As of March 31, 2026, 24 products were under active review with the USFDA, while the Companys commercialisation rate for approved products stood at 91.7%.

Specialty Products

The Companys Specialty products portfolio contributed 32.3% of gross profit in FY2026, compared with 26.9% in FY2025, and this contribution is expected to increase further as the Specialty portfolio expands through new product approvals. Its disciplined, data-driven product selection approach, coupled with its ability to establish strong market positions even in mature products, is expected to support the continued growth of the Specialty products portfolio.

Drug-Device Combinations (DDCs)

Drug-device combinations represent one of the Companys most promising long-term growth platforms, reflecting its ability to translate differentiated formulation expertise into scalable commercial opportunities. Since embarking on this strategic journey in 2019, the Company has strengthened its capabilities through the acquisition of Impopharma in 2020, targeted investments in product development and manufacturing infrastructure, and the successful commercialisation of complex nasal drug-device combination products. Following its first USFDA approval for a nasal spray DDC product in 2023, the Company has established one of the worlds largest and most modern single-site manufacturing capacities for unit- dose and multi-dose nasal sprays. By FY2026, it had secured approvals for five DDC products while continuing to advance a robust development pipeline across multiple therapeutic areas. Building on this foundation, the Company expects to further expand its DDC portfolio and pursue innovative product opportunities aligned with its core CNS therapeutic focus, where differentiated drug delivery technologies have the potential to enhance patient outcomes and create sustainable competitive advantages.

India Market Entry - Subsequent to the Financial Year End

Subsequent to March 31, 2026, the Company completed the acquisition of an 85% equity stake in Arinna Lifesciences Limited, a CNS-focused domestic formulations company, in April 2026.

Accordingly, the transaction is not reflected in the financial statements for FY2026. The acquisition provides the Company with an established commercial platform comprising more than 60 CNS brands, approximately 4,000 active prescribers, three sales divisions, and a distribution network spanning 23 states, enabling the commercialisation of its CNS portfolio and pipeline in the Indian market. This acquisition is consistent with the Companys strategy of leveraging its R&D capabilities across markets where its therapeutic expertise is relevant and represents an expansion of its commercial platform rather than a shift in its geographic strategy. The Indian CNS market remains underpenetrated from an innovation perspective, presenting a significant long-term opportunity for the Companys differentiated product portfolio.

Capital Allocation

The Company will continue to evaluate selective inorganic opportunities that strengthen its capabilities, enhance therapeutic relevance or expand market access, consistent with its disciplined approach of acquiring strategic capabilities before scaling operations. Capital efficiency, as measured by pre-tax ROACE, improved to 36% in FY2026, compared with 30% in FY2025 and 21% in FY2024. The Company intends to sustain this trajectory through disciplined capital deployment and prudent utilisation of the proceeds raised through its initial public offering.

Internal Control and its Adequacy

Rubicon Research Limited implements internal control systems and established auditing standards to safeguard assets and ensure data integrity. Regular business reviews assess performance and employ corrective actions as necessary. These internal controls are updated on a regular basis in accordance with changing business conditions and statutory requirements. The Audit Committee of the Board of Directors evaluates the efficiency and usefulness of these systems on a regular basis, recommending changes to ensure their long-term sustainability.

Cautionary Statement

The Management Discussion and Analysis (MDA) section may contain forward-looking statements about potential future developments. These estimates include both known and unknown risks and uncertainties, which could have a significant impact on actual results. Changes in the macroenvironment might provide unexpected, unpredictable and changing risks to the organisation and its working environment. The predictions conclusions are based on both internal and external data, which form the basis for some of the facts and figures presented. Similar uncertainties exist in the estimates behind these projections.