Sai Parenterals Ltd Management Discussions

INDUSTRY REVIEW:

The Indian pharmaceutical market is the third largest in terms of volume and thirteenth largest in terms of value. The pharmaceutical industry in India produces a range of bulk drugs, which are the key acting ingredients with medicinal properties that form the basic raw materials for formulations. Bulk drugs account for roughly one-fifth of the industry output while formulations account for the rest. India also has the expertise for active pharmaceutical ingredients (APIs) and sees significant opportunities for value-creation. Indias generic drug producers hold a strong position in the global supply chain and play an integral role in developing the pharmaceutical industry.

RISKS AND CONCERNS:

The company is no exception to the competition from the market, new technologies and stringent patent laws. The Company has already identified such risks and trying to counter them over a period of time.

OPPORTUNITIES AND THREATS:

There are opportunities in the pharmaceutical Industry to develop new products through proper research and development and there is no doubt that the industry will thrive. Your Company also has good opportunities in the export markets. Your Company has been making concerted efforts to reach out to the export markets through active participation in Exports Industry Trade Shows. The results of these efforts are and we expect success in the coming years. Another challenge is the continuous increase in the raw material input costs which increases the pressure on the profitability of your Company.

SEGMENT WISE PERFORMANCE:

Segment wise analysis of performance is not applicable to your Company under Accounting Standards 17 because there is only one segment i.e. Pharmaceutical.

OUTLOOK:

The outlook for the industry and consequently for your Company during the current financial year is reasonably good subject however to the effects of government policies, inflationary pressure and general global slowdown which is bound to affect your company.

INTERNAL CONTROL SYSTEMS & ADEQUACY:

The Company has proper and adequate internal control systems to ensure that all assets are safeguarded and protected against loss from unauthorized use or disposal.

All the transactions are authorized, recorded and reported correctly. The internal control system provides for well documented policies, guidelines, authorizations approvals and procedures. The observations arising out of audit are subject to periodic review, compliance and monitoring. The significant observations, made in internal audit reports, along with the status of action thereon are reviewed by the Audit Committee of the Board of

Directors on a regular basis for future appropriate action, if deemed necessary.

FINANCIAL PERFORMANCE:

Discussion on Financial Performance with respect to Operational Performance:

Total Income:

During the year under review, Sai Parenterals Limited has achieved a gross total income of H 164,99.27 Lakh /-

(One Hundred sixty-four Crore ninety nine lakh and twenty-seven thousand Rupees Only) for the Year 2025-26 against H 124,58.61 Lakh /- (One Hundred twenty-four Crore fifty-eight Lakh and sixty-one thousand Rupees Only) for the Year 2024-25

Share Capital:

The paid-up share capital as on 31st March, 2026 is H 22,08.96 Lakh /- (Rupees twenty-two Crore eight Lakh and ninety-six thousand only) divided into 441.79 Lakh (Four Crore forty-one Lakh and seventy-nine thousand) fully paid-up equity shares of H 5/- (Rupees Five Only) each.

Net Profit / (Loss):

The Companys net profit/ loss is H 1686.00 Lakh (Rupees Sixteen Crore Eighty-Six Lakh Only).

Earnings Per Share (EPS):

The Earning Per Share for the Financial Year 2025-26 is H 5.13/- (Rupees Five and Thirteen paise Only) per share (Face Value: H 5/- (Rupees Five Only) each).

Your directors are putting continuous efforts to increase the performance of Company and are hopeful that the performance in coming year will improve in faster way.

MATERIAL DEVELOPMENT IN HUMAN

RESOURCE / INDUSTRIAL RELATIONS:

Your Company is constantly endeavouring to introduce

Human Resource Development activities for overall improvement of its team and induction of professional manpower. Your Company has good industrial relations. Your Company has continued to maintain good relationship with all employees at all the levels which also resulted to in achieving higher production and sales Material Financial and Commercial Transaction.

DETAIL OF SIGNIFICANT CHANGES (i.e CHANGE OF 25% OR MORE AS COMPARED TO THE IMMEDIATELY PREVIOUS FINANCIAL YEAR) IN KEY FINANCIAL RATIOS):

Financial Ratios	Formula	FY 25-26	FY 24-25	Deviation (%)	Remarks/ Reason for Change
Debtors Turnover Ratio(times)	Revenue from operations / Average Trade receivables	1.93	1.45	33.34%	The Debtors Turnover Ratio improved primarily due to higher revenue from operations and better collections from CDMO business.
Inventories Turnover Ratio(times)	COGS/ Average Inventories	2.43	3.26	-25.30%	Inventory has been increased as we scale up business.
Interest Coverage Ratio(times)	EBIT / Finance Cost	3.14	2.97	5.84%	The ratio improved owing to higher operating profitability (EBIT), which enhanced the Companys ability to service its finance costs despite an increase in borrowings.
Current Ratio (times)	Current Asset / Current Liability	2.15	1.17	83.51%	The Current Ratio improved significantly due to a substantial increase in current assets, supported by improved working capital management and higher business operations, resulting in stronger short-term liquidity.
Debt Equity Ratio (times)	Debt / Shareholders Equity	0.27	0.79	-65.24%	The Debt-Equity Ratio decreased primarily due to a significant increase in shareholders equity through profits and capital strengthening.
Operating Profit Margin Ratio (%)	EBIT/ Revenue from Operations	16.97%	17.45%	-2.72%	The marginal decline in Operating Profit Margin was mainly attributable to increased operating and input costs associated with business expansion. However, the Company continued to maintain a healthy operating margin while achieving higher revenue growth.
Net Profit Margin Ratio (%)	Profit After Tax /Revenue from Operations	10.39%	8.29%	25.32%	The Net Profit Margin improved due to higher profitability driven by increased revenue from operations and effective cost management, resulting in improved earnings after tax.
Change in Return on Net Worth (%)	Profit for the year (before exceptional items and after tax)/ Net Worth	3.46%	11.30%	-69.35%	The decrease in Return on Net Worth was primarily due to a substantial increase in the Companys net worth arising from capital infusion to attain the stated objects of IPO. This reflects the strengthening of the Companys financial base and supports future business growth.

DISCLOSURE OF ACCOUNTING TREATMENT:

The Company has prepared financial statements which comply with Ind-AS applicable for periods ending on March 31, 2026, together with the comparative period data as at and for the year ended March 31, 2025, as described in the summary of significant accounting policies. Primarily, a treatment different from that prescribed in an Accounting Standard has not been followed in the preparation of financial statements. However, as regards amendments to certain accounting standards, the applicability / effect on the financial statement has been evaluated and been treated accordingly as explained in Notes to the standalone Financial Statements.

CAUTIONARY STATEMENT:

Statements in this management discussion analysis describing the Companys objectives, projections, estimates, expectations may be forward looking within the meaning of applicable securities-laws and regulations. Actual results may differ materially from those expressed in the statement. Important factors that could make difference to Companys operations include economic conditions affecting the domestic market and the overseas markets in which the Company operates, changes in the Government regulation.

DECLARATION ON CODE OF CONDUCT AS REQUIRED BY SCHEDULE V OF SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015

I, Anil Kumar Karusala, Managing Director of Sai Parenterals Limited ("the Company") hereby state and affirm Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulation 2015 the members of board of directors and senior management personnel have affirmed compliance with the code of conduct of board of directors and senior management of the company during Financial Year 2025-26.

	For and on behalf of the Board of
	Sai Parenterals Limited
	Sd/-
	Anil Kumar Karusala
Place: Hyderabad	Managing Director
Date: 11.08.2026	(DIN: 01866646)

Annexure 8

CERTIFICATE ON CORPORATE GOVERNANCE

[Pursuant to Regulation 34(3) and Schedule V Para E of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015]

To,

The Members of

Sai Parenterals Limited

Hyderabad

We have examined the applicability of the provisions relating to Corporate Governance under Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of Regulation 46 and Paragraphs C, D and E of Schedule V of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations") in respect of Sai Parenterals Limited ("the Company") for the financial year ended March 31, 2026.

Based on our examination of the relevant records and according to the information and explanations provided by the

Management, we certify that the equity shares of the Company were listed on BSE Limited and the National Stock Exchange of India Limited with effect from April 2, 2026. Accordingly, the Company was not a listed entity during the financial year ended March 31, 2026. Hence, in our opinion the provisions relating to Corporate Governance under Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of Regulation 46 and Paragraphs C, D and E of Schedule V to the SEBI Listing Regulations were not applicable to the Company during the financial year ended March 31, 2026, as the Company became a listed entity only with effect from April 2, 2026.

Accordingly, the responsibility for determining the applicability of the provisions of the SEBI Listing Regulations and ensuring compliance therewith from the effective date of listing rests with the Management of the Company. Our responsibility is limited to examining the records and information made available to us and issuing this certificate based on such examination.

We further state that such compliance is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the Management has conducted the affairs of the Company.

NOTE: This certificate has been issued at the request of the Company for inclusion in its Annual Report for the financial year ended March 31, 2026.

	For M/s. Aakanksha Dubey & Co
	Practicing Company Secretary
	Sd/-
	Aakanksha Sachin Dubey
	Practicing Company Secretary
	M. No. A49041; C.P. No. 20064
Place: Hyderabad	UDIN: A049041H001063725
Date: 10.08.2026	Peer Review Certificate No. 3363/2023

Annexure 9

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015)

To,

The Members of

Sai Parenterals Limited

Hyderabad

We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of

Sai Parenterals Limited having CIN:U24231TG2001PLC036043 and having registered office at Plot No. 39, 5^th Floor Lavanya Arcade, Jayabheri Enclave, Telangana, 500032 (herein after referred to as ‘the Company), produced before us by the Company for the purpose of issuing this Certificate, in accordance with Regulation 34(3)read with Schedule V Para-C Sub clause 10(i) of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors Identification

Number (DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the

Company & its officers. We hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending on 31st March, 2026 have been debarred or disqualified from being appointed or continuing as Directors of companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

S. No Name of Director	DIN	Date of Appointment in Company
1. Mr. Anil Kumar Karusala	01866646	19/11/2021
2. Mrs. Vijitha Gorrepati	03492979	16/08/2016
3. Mrs. Aruna Karusala	01673731	16/08/2016
4. Mr. Seeta Ram Anjaneyulu Gorantla	01874325	01/01/2024
5. Mrs. Bhagyashri Dharmasa Zad	09174356	01/01/2024
6. Mr. Kalidindi Venkateswara Raju	00788664	12/11/2024

Ensuring the eligibility for the appointment / continuity of every Director on the Board is the responsibility of the management of the Company. Our responsibility is to express an opinion on these based on our verification. This certificate is neither an assurance as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the affairs of the Company.

	For M/s. Aakanksha Dubey & Co
	Practicing Company Secretary
	Sd/-
	Aakanksha Sachin Dubey
	Practicing Company Secretary
	M. No. A49041; C.P. No. 20064
Place: Hyderabad	UDIN: A049041H001063725
Date: 10.08.2026	Peer Review Certificate No. 3363/2023