Sanjivani Paranteral Ltd Management Discussions

Global Economy

The global economy passed through FY 2025-26 with more resilience than most forecasters had allowed for, but the composition of that growth remained uneven. Activity was supported by front-loaded trade, a broad investment cycle in technology and artificial intelligence, and easing financial conditions in several major economies, even as tariff escalation, policy uncertainty and geopolitical conflict continued to weigh on private consumption and cross-border commerce.

According to the International Monetary Funds World Economic Outlook Update of July 2026, global growth is projected at 3.0 percent in 2026, after an estimated 3.5 percent in 2025, before recovering to 3.4 percent in 2027. This remains below the 2000-2019 historical average of 3.7 percent. Growth in advanced economies is projected to moderate from 1.9 percent in 2025 to 1.7 percent in 2026 and 1.8 percent in 2027, while Emerging Market and Developing Economies (EMDEs) are expected to slow from 4.5 percent in 2025 to 3.8 percent in 2026 before rebounding to 4.5 percent in 2027.

World trade volume in goods and services, which expanded by an estimated 5.0 percent in 2025 as importers advanced shipments ahead of announced tariff measures, is projected to normalise to 3.5 percent in 2026 and 4.3 percent in 2027. Global headline inflation is projected at 4.7 percent in 2026, up from 4.1 percent in 2025, before easing to 3.9 percent in 2027. Advanced economies are expected to see inflation at 3.0 percent in 2026 and 2.4 percent in 2027, while EMDE inflation is projected at 5.8 percent and 4.8 percent respectively. The persistence of price pressure in a tariff-affected environment has slowed the pace of monetary easing in several jurisdictions.

For a manufacturer and exporter of pharmaceutical formulations such as your Company, the practical consequences of this environment are threefold: freight and insurance costs remain volatile on conflict-affected routes, customers in import-dependent markets face intermittent currency and payment constraints, and the tariff debate in major regulated markets has raised the strategic value of diversified geographic exposure. Your Company has responded to each of these, as set out later in this report.

Indian Economy

India remained the fastest-growing major economy through the year under review. Based on the Provisional Estimates released by the Ministry of Statistics and Programme Implementation, Indias real Gross Domestic Product grew by 7.7 percent in FY 2025-26, as against 7.1 percent in FY 2024-25. Real GDP is estimated at INR 323.12 lakh crore in FY 2025-26 as compared with INR 299.89 lakh crore in the previous year, while nominal GDP rose by 8.9 percent to INR 346.36 lakh crore from INR 318.07 lakh crore. Real Gross Value Added is estimated at INR 294.91 lakh crore, a growth of 7.9 percent against 7.3 percent in the preceding year.

Growth was underpinned by resilient domestic demand, a recovery in rural consumption, sustained public capital expenditure and an improving external account. Softening inflation gave the monetary authority room to support activity, and Indias standing as a manufacturing and export destination continued to strengthen. Looking forward, the International Monetary Fund projects Indias growth at 6.4 percent in FY 2026 and 6.7 percent in FY 2027 on its fiscal-year basis, with the upward revision reflecting a more favourable external environment than earlier anticipated.

The outlook for India remains constructive, supported by strong domestic demand, contained inflation, a resilient external sector and stable employment conditions. Risks nonetheless persist in the form of trade frictions and tariff actions in key export markets, elevated policy uncertainty, and geopolitical conflict in regions that are material to Indias pharmaceutical export trade. These require continuous monitoring.

Global Pharmaceutical Industry

The global pharmaceutical market continued to expand through the year. The IQVIA Institutes 2026 outlook projects global medicine spending to reach approximately USD 2.6 trillion by 2030, growing at a compound annual rate of 5 to 8 percent, a forecast that has held steady despite tariff pressure, pricing reform and financing headwinds. Oncology, immunology and endocrinology — the last driven in particular by diabetes and obesity therapies — remain the principal engines of growth, with the GLP-1 class showing no sign of peaking.

The United States continues to account for the largest share of global spending and is expected to contribute more incremental growth over the next five years than the rest of the world combined, although net price growth there is moderating to a 4 to 7 percent compound annual rate as rebates and discounts offset a substantial part of invoice value. Emerging markets remain the volume growth story: India is now measured as growing faster than previously estimated on the back of government generic-access programmes, while Saudi Arabia and the United Arab Emirates have emerged as genuine growth markets in their own right. Mature markets in Western Europe and Japan are expected to grow more slowly from an already high consumption base.

Global Injectables Market

Sterile injectables, your Companys largest product vertical, remain among the faster-growing segments of the industry. The global sterile injectable drugs market is estimated at approximately USD 658.70 billion in 2026 and is forecast to reach USD 943.80 billion by 2031, representing a compound annual growth rate of about 7.45 percent. North America remains the largest regional market with a share of roughly 38.40 percent, while Asia-Pacific is the fastest-growing region at a compound annual rate of about 8.03 percent, driven by capacity build-outs and export-oriented manufacturing serving regulated markets. Indias expansion of fill-finish capability is a direct beneficiary of this shift.

Global Bulk Drugs Market

According to IQVIA, the majority of global bulk drug consumption is accounted for by three segments — branded prescription drugs, over-the-counter drugs and generic prescription drugs. The global bulk drug market was valued at approximately USD 210 billion in 2024 and is projected to grow at a compound annual growth rate of approximately 6 to 7 percent through 2030, supported by patent expiries, volume growth in emerging markets and continued substitution towards generics.

Indian Pharmaceutical Market

Indias pharmaceutical industry has further consolidated its position as a global manufacturing hub, leading in generic medicines and active pharmaceutical ingredient production, and offering an end-to-end combination of capacity, capability and cost that few jurisdictions can match. As per the India Brand Equity Foundation, the Indian pharmaceutical market is valued at approximately INR 5,20,000 crore (USD 60.32 billion) in 2026. India ranks third globally in production by volume and fourteenth by value, supplies around 20 percent of the worlds generic medicines by volume, hosts the highest number of US-FDA approved manufacturing plants outside the United States, and is home to over 500 active pharmaceutical ingredient producers accounting for roughly 8 percent of the global API market.

Indias pharmaceutical exports crossed USD 31 billion in FY 2025-26 — approximately INR 2.74 lakh crore, as compared with INR 2.66 lakh crore (USD 30.47 billion) in FY 2024-25 — reaffirming the countrys position as a supplier of affordable medicines to the world. Growth was, however, uneven through the year, with a pronounced contraction in shipments during March 2026 that reflected tariff-related uncertainty and logistical disruption on certain trade routes rather than any weakening of underlying demand. The domestic market is forecast to more than double by 2030 to reach USD 130 billion, lifting Indias share of the global pharmaceutical market from approximately 3 percent today towards 5 percent.

Indian Bulk Drug Market

India is the third-largest producer of active pharmaceutical ingredients globally, holding an approximately 8 percent share of the API industry by value. The Indian API market is estimated at USD 15.28 billion in 2026 and is projected to reach USD 22.18 billion by 2031, a compound annual growth rate of approximately 7.74 percent.

The Production Linked Incentive scheme for bulk drugs continues to reshape the domestic supply base. Thirty-two PLI projects representing investment of about INR 4,024 crore are now operational, exceeding the originally sanctioned investment, and have enabled domestic manufacture of critical molecules such as Penicillin G for the first time in decades. Bulk drug parks in Gujarat, Himachal Pradesh and Andhra Pradesh provide shared infrastructure that lowers operating costs for participants. India nonetheless remains materially dependent on imported key starting materials and intermediates, and price volatility in that supply chain continues to be a live input-cost risk for formulators, including your Company.

Nutraceutical Market

The global nutraceuticals market was valued at approximately USD 636.2 billion in 2025 and is estimated at USD 683.8 billion in 2026, with projections of USD 1,151.5 billion by 2033 at a compound annual growth rate of approximately 7.7 percent. Growth is driven by preventive healthcare, the rising incidence of lifestyle-related disorders, greater consumer focus on health-promoting diets and functional foods, and rising discretionary spending in high-growth economies. Specialty segments such as botanical actives, sports nutrition and immune support are expected to see accelerated adoption. Demographic shifts, including ageing populations and rising chronic disease prevalence, provide a durable underpinning to the category.

ABOUT THE COMPANY

Sanjivani Paranteral Limited was incorporated on 05th October, 1994 in the State of Maharashtra. The Main Object Clause of the Company is "To manufacture, produce, formulate, prepare, buy, markets, distribute, sell, or otherwise dispose off refine, blend, process, import, export, trade and to deal in pharmaceutical formulations, bulk drugs, biological, genetics, vaccines, serums, medical products, health care products, veterinary feeds, feeds, feed supplements, feed additives, preparations, substances or products and all derivatives, by-products, residual products or ingredients required for the manufacture, preparations, processing or use of any of the foregoing and to establish, maintain and equip Research and Quality Control Centres, Chemical Plant to produce basic chemicals, bulk drugs, antibiotics, pharmaceuticals and veterinary products".

The Company is a WHO-GMP certified pharmaceutical manufacturer with over three decades of operating experience, focused on sterile injectables, oral solid dosage forms and nutraceuticals, with a strong bias towards life-saving and essential medicines. It operates manufacturing facilities at Mumbai and Dehradun and, through its subsidiary SPL Infusion Private Limited, an intravenous fluids facility at Pune.

FORWARD-LOOKING STATEMENTS

This Report contains forward-looking statements. Any statement that addresses expectations or projections about the future, including but not limited to statements about the Companys strategy and growth, product development, market position, expenditures and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future growth, and actual results may differ.

OPPORTUNITIES, THREATS AND OUTLOOK

Sanjivani Paranteral Limited is positioned to strengthen its standing through disciplined strategic expansion, an increase in manufacturing capacity and enhanced capability across the organisation. The Company continues to evaluate opportunities in untapped geographies and along the value chain, and to pursue alliances with business associates in global markets that can give scale to the selective products in which it already has depth.

Opportunities

The commissioning of the intravenous fluids facility at Pune opens an entirely new revenue vertical addressing a large, essential and structurally growing category in both Indian and export markets. Site approval in a Francophone African jurisdiction, secured in the previous year, continues to unlock registrations across French-speaking Africa, and the product dossiers filed in that region are steadily converting into approvals. The Companys minority investment in Alevia Healthcare, Prague, provides a foothold within the European Union for nutraceuticals and, over time, for formulations. Central and Latin America offer a widening base as portfolio and market coverage expand. Domestically, expanding insurance coverage, broader healthcare outreach and continued government investment in access programmes support volume growth across therapy areas.

Threats and Risks

Competitive intensity in generic formulations keeps pricing and margins under sustained pressure. Input costs remain exposed to volatility in imported key starting materials and intermediates. Geopolitical conflict and the associated disruption to shipping, insurance and payment channels can delay export despatches and shift revenue between reporting periods, as the Company experienced towards the close of the year under review. Tariff measures and evolving regulatory requirements in major markets add a further layer of uncertainty, as does foreign exchange volatility given the high export share of revenue.

Outlook

The Company enters FY 2026-27 with a broader manufacturing base, a new product vertical in commercial production, a diversified export footprint and a deeper registration pipeline than at any earlier point. Management expects the operating leverage from the Pune facility, combined with recovery in the base export business, to support a meaningful step-up in scale.

OVERVIEW

Management Discussion

FY 2025-26 was a year of building capacity and platform for Sanjivani Paranteral Limited (SPL). The Company commissioned a significant new manufacturing asset, deepened its regulatory footprint across Africa and Latin America, advanced its European joint venture, and absorbed a short-term disruption to export despatches in the final quarter without impairing the underlying franchise. Revenue was broadly stable year on year; the more material development was the creation of a second manufacturing engine that will carry growth from the current year forward.

Expanding Global Footprint

Exports remained the cornerstone of the Companys business, accounting for the large majority of revenue. The Companys manufacturing facilities cleared various audits reaffirming adherence to global quality benchmarks.

In Francophone Africa, the site approval secured in the prior year from a regulator in the region continued to convert into market access. The Company also broadened both its portfolio and its market coverage in Central and Latin America, where the base established in earlier years is now expected to contribute meaningfully.

Towards the close of the financial year, geopolitical tension in the Middle East caused temporary logistical disruption to export shipments. Finished goods of approximately INR 6 crore could not be despatched during March 2026 and were carried into the following financial year. This was a timing effect rather than a loss of demand, and despatches have since normalised.

Innovation, Quality and Compliance

Innovation remained central to the growth strategy. The Company advanced its research and development programmes with a focus on differentiated sterile injectables and value-added nutraceuticals, and maintained a steady pipeline of product dossiers filed across multiple markets to support long-term growth visibility. Compliance remained uncompromising, with all facilities operating under WHO-GMP standards to ensure consistency, product quality and patient safety.

Outlook

The investments made during FY 2025-26 have created a materially larger platform than the one the Company operated a year ago. With a second manufacturing vertical now in commercial production, a diversified export base, subsidiaries and partnerships in India and Europe, and a proven record of regulatory success, Sanjivani Paranteral Limited is well positioned to scale its business, deepen global partnerships and enhance long-term value creation for all stakeholders.

MEDIUM TERM STRATEGY

The Companys manufacturing, quality and marketing functions are sufficiently mature to take on new challenges in the medium term. The company will now build upon the plants recently commissioned and also look to add few more plants in the near term.

LONG TERM STRATEGY

The Company continues to work on improving manufacturing processes to reduce solvent load and the formation of by-products. This will help reduce the pollution load and ultimately lower final product cost. Over the longer term, the Company intends to build on its established quality systems to move progressively towards more stringently regulated markets, to widen the range of dosage forms it can offer from its own facilities, and to increase the proportion of revenue derived from differentiated and value-added products.

RISK AND CONCERNS

Owing to stiff competition in the pharmaceutical field in which the Companys activities are centred, overall margins remain under pressure, though maintainable through consistent effort and the quality of goods and services rendered by the Company. In addition, the Companys substantial export orientation exposes it to foreign exchange movements, to shipping and logistics disruption arising from geopolitical conflict, to changes in tariff and regulatory regimes in destination markets, and to delays in product registration timelines. Input cost volatility, particularly in imported key starting materials and intermediates, is a further area of continuing attention. The Board reviews these exposures and the adequacy of mitigation measures at regular intervals.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

An Audit Committee of the Board of Directors of the Company has been constituted as per the provisions of Section 177 of the Companies Act, 2013 and the corporate governance requirements specified under the Listing Regulations. The Internal Audit function is looked after internally by the finance and accounts department and is reviewed by the Audit Committee and the management at regular intervals. The Internal Auditors Reports dealing with internal control systems are considered by the Audit Committee and appropriate actions are taken wherever necessary.

ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

The Financial Statements have been prepared in accordance with the requirements of the Companies Act, 2013, Indian Generally Accepted Accounting Principles (Indian GAAP) and the Accounting Standards as prescribed by the Institute of Chartered Accountants of India. The Management believes that it has been objective and prudent in making estimates and judgments relating to the Financial Statements and confirms that these Financial Statements are a true and fair representation of the Companys operations for the period under review.

DEVELOPMENT ON HUMAN RESOURCE FRONT

At Sanjivani Paranteral Limited our human resource is critical to our success and to carrying forward our Mission. With their sustained, determined and able work efforts, the Company was able to navigate a year of economic volatility and rapidly changing market conditions, including the commissioning and staffing of an entirely new manufacturing facility. Attracting newer talent, training and upgrading existing skill sets and getting all to move in a unified direction remains a continuing task for the Company.

By creating a conducive environment for career growth, the Company seeks to achieve the fullest possible utilisation of employees skills. The Company remains focused on retaining and bringing in talent, keeping in mind its ambitious plans notwithstanding the market and industry scenario. The Company also believes in recognising and rewarding employees to boost morale and enable them to achieve their maximum potential.

INDUSTRIAL RELATIONS

Industrial relations throughout the year continued to remain very cordial and satisfactory.

CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those either expressed or implied. Important factors that could make a difference to the Companys operations include changes in government regulations, tax regimes, tariff measures, and economic and geopolitical developments within and outside India.

INTERNAL CONTROL SYSTEM

Over the last five years, the Company has concentrated on the reduction of fixed expenses and has also reduced direct variable costs. It has concentrated on value-added products and on optimising available cash flow. The management is ensuring an effective internal control system to safeguard the assets of the Company, and efforts for the continued improvement of the internal control system are consistently being made in this regard.

MATERIAL DEVELOPMENTS IN HUMAN RESOURCES / INDUSTRIAL RELATIONS FRONT, INCLUDING NUMBER OF PEOPLE EMPLOYED

Your Company believes in a work environment that is congenial to on-the-job learning and encourages teamwork. It has therefore continued to focus on developing the competence of its staff and employees. Cordial and harmonious relations with employees continued to prevail throughout the year under review.

For And on Behalf of the Board of Directors Sanjivani Paranteral Limited
sd/-	SD/-
Srivardhan Ashwani Khemka	Ashwani Anamisharan Khemka
Director	Director
Place: Mumbai
Date: 14th August, 2026