Shukra Pharmaceuticals Ltd Management Discussions

For the Financial Year 2025-26

BUSINESS OVERVIEW

Shukra Pharmaceuticals Limited is a public limited company with a strong global outlook, engaged in the manufacturing, marketing, and export of pharmaceutical formulations. The Company caters to both domestic and international markets, with a growing presence in countries such as Australia, Uganda, Kenya, the United Kingdom, Sri Lanka, Mauritius, and the Republic of Yemen. At domestic front, the Companys presence can be noticed in the Mumbai, Banglore, Gurgaon, Jaipur, Jammu, Kolkata, Lucknow, Raipur and Noida. Our commitment to delivering quality pharmaceutical products has earned us the continued trust of clients across these geographies.

Operating in the highly competitive Indian pharmaceutical industry, which comprises more than 20,000 manufacturing units, Shukra Pharmaceuticals has carved out a distinct identity. The Company has built a formidable reputation backed by its robust research and development capabilities, state-of-the-art manufacturing infrastructure, and a deep understanding of both Indian and international regulatory environments and market demands.

Over the years, Shukra has partnered with reputed global pharmaceutical companies to develop and manufacture a wide range of drugs, dosage forms, and potency variations. These collaborations have strengthened our technical know-how and enhanced our ability to respond quickly and effectively to evolving market needs.

The Companys strategic focus remains on maintaining the highest standards of quality, operational efficiency, and innovation in product development. With a dedicated emphasis on regulatory compliance, research-driven manufacturing, and expanding global outreach, Shukra Pharmaceuticals continues to strengthen its position as a trusted pharmaceutical partner across diverse markets.

INDUSTRY STRUCTURE AND DEVELOPMENT

The Indian pharmaceutical industry continues to be recognized globally for its strong capabilities in manufacturing excellence, cost-effective product development, and process innovation. These competitive advantages have positioned India as one of the largest suppliers of generic medicines worldwide and a key contributor to global healthcare.

However, in recent years, the industry has encountered several challenges. Regulatory tightening in key export markets, pricing pressures, and supply chain disruptions have collectively moderated growth, bringing the Compound Annual Growth Rate (CAGR) to approximately 7-8%. Domestically, the sector also faces evolving compliance standards, increased competition, and changing healthcare dynamics.

Despite these headwinds, the long-term growth potential of the pharmaceutical industry remains robust. Emerging therapeutic areas, the expansion of healthcare infrastructure in developing countries, increased penetration of health insurance, and a growing focus on wellness and preventive care are expected to fuel demand. Moreover, the shift towards value-added formulations and biologics presents new frontiers for growth.

For Shukra Pharmaceuticals Limited, these developments offer opportunities to expand its footprint in regulated and semi-regulated markets, diversify product offerings, and enhance strategic collaborations. The

Company remains committed to leveraging its strengths in quality manufacturing, R&D, and regulatory compliance to capitalize on these emerging trends and contribute meaningfully to both domestic and international healthcare ecosystems.

OPPORTUNITIES

1. Government-Supported Healthcare Coverage and Expanding Domestic Demand

One of the most significant developments shaping the Indian pharmaceutical market is the continued focus on universal healthcare through government-led initiatives such as the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). This national health protection scheme is expected to benefit more than 10 crore low-income families, accounting for nearly 50 crore beneficiaries, or approximately 40% of Indias population. This initiative aims to provide access to free healthcare services, including hospitalization and drug access, thereby expanding the volume-driven demand for essential and chronic medications. The pharmaceutical industry stands to benefit from this massive coverage expansion, particularly companies like Shukra Pharmaceuticals that focus on affordable, high-quality formulations. The scheme also contributes to increasing health insurance penetration, which in turn boosts prescription drug volumes and organized healthcare consumption.

2. Growing Burden of Chronic Diseases and Demand for Specialized Drugs

Indias healthcare landscape is witnessing a shift in disease patterns, moving from communicable diseases to non-communicable and chronic illnesses such as diabetes, hypertension, cardiovascular disorders, and cancer. These conditions require long-term treatment plans and continuous medication, unlike acute illnesses.

This shift is expected to create substantial demand for specialty and chronic care medications, which are typically more expensive. Indian pharmaceutical companies, with their cost-effective manufacturing capabilities, are ideally placed to bridge the affordability gap in these high-growth therapeutic segments.

At Shukra Pharmaceuticals, we recognize the need to align our product development and capacity planning with the chronic disease burden and are evaluating new formulations, dosage variations, and therapeutic class expansion in chronic disease segments to better serve this growing market.

CHALLENGES

Despite the tremendous growth potential and strategic advantages enjoyed by the Indian pharmaceutical sector, the industry continues to grapple with a range of structural, regulatory, and economic challenges. For Shukra Pharmaceuticals Limited, addressing these challenges is critical to maintaining long-term resilience and competitiveness in both domestic and global markets.

1. Limited Access to Universal Healthcare

Indias healthcare infrastructure, though improving steadily, remains inadequate relative to the size of its population. According to recent data, India has only 29 skilled health professionals per 10,000 people, compared to 41 in China and 111 in the United States. While this meets the World Health Organizations minimum threshold of 23 healthcare workers per 10,000, India would still need to add nearly 1.5 million professionals-a 42% increase-to reach parity with China.

This shortage of trained medical personnel, especially in rural and semi-urban areas, continues to hinder healthcare delivery. It poses a challenge for pharmaceutical companies, as access to healthcare professionals directly affects diagnosis rates, prescriptions, and treatment compliance, thereby impacting demand for medicines.

Shukra Pharmaceuticals acknowledges the importance of bridging last-mile access and supports policy measures to expand healthcare infrastructure and personnel, which would directly benefit medicine consumption across underserved geographies.

2. Low Public Healthcare Spending and Affordability Issues

Indias public health expenditure stands at approximately 1% of GDP, significantly lower than the 2.5% to 3% of GDP spent by peer nations such as China, Thailand, and Malaysia. This underinvestment results in limited public health services, with less than one-third of the population having health insurance coverage. Consequently, a majority of citizens are left to bear their medical expenses out-of-pocket, often leading to a trade-off between health needs and basic necessities.

This affordability barrier has direct implications for drug access and compliance, especially for chronic disease treatments, which require prolonged and continuous medication. The situation demands innovative delivery models and digital health interventions that can improve access at lower transactional costs, particularly in resource-constrained settings.

3. Regulatory and Pricing Uncertainty

One of the most persistent challenges for pharmaceutical manufacturers in India is the lack of a stable pricing and policy environment. Frequent and ad hoc changes to drug pricing regulations, such as those governed by the National List of Essential Medicines (NLEM) and the Drug Price Control Order (DPCO), create uncertainty and risk in long-term investment planning, R&D efforts, and product launches.

While affordability is a key policy priority, there is a pressing need for a balanced and consultative regulatory framework that safeguards both public interest and industry viability. Collaborative engagement between the government and industry stakeholders is essential to devise a transparent, predictable, and equitable pricing structure, which incentivizes innovation while ensuring affordable access for all.

Shukra Pharmaceuticals advocates for stable and forward-looking pricing policies that promote market predictability, enabling pharmaceutical companies to invest in capacity expansion, research, and differentiated product development.

4. Global Economic and Geopolitical Headwinds

The financial year 2025-26 witnessed a resurgence in global economic activity, particularly in emerging markets, driven by higher investment spending. However, macroeconomic uncertainty continues to loom in certain parts of Europe and other geographies, due to fiscal imbalances, inflationary pressures, and volatile commodity prices.

These global factors have a ripple effect on the Indian pharmaceutical industry, particularly for exporters like Shukra Pharmaceuticals. Currency volatility, logistical disruptions, and regulatory divergence in various countries continue to challenge cost structures and market entry timelines.

5. Industry Consolidation and Competitive Pressures

The year also saw an uptick in M&A activity, with Indian pharmaceutical companies increasingly being acquired by multinationals or entering into joint ventures. While this signifies confidence in Indias manufacturing and scientific capabilities, it also intensifies competitive pressures for homegrown mid-sized companies.

Additionally, as many players turn their focus toward semi-urban and rural markets for incremental growth, market saturation and price competition in generic formulations are expected to rise. For companies like Shukra Pharmaceuticals, differentiation through niche formulations, quality compliance, and service excellence will be key to maintaining market share.

As Shukra Pharmaceuticals Limited navigates the complex regulatory and operational landscape of the pharmaceutical industry, it remains focused on addressing these challenges through strategic investments in technology and automation, deepening market penetration via affordable and high-quality medicines, maintaining regulatory discipline and compliance, and pursuing innovation-led partnerships in emerging therapeutic areas.

While the operating environment poses certain headwinds, Shukra Pharmaceuticals is confident in its ability to adapt, innovate, and thrive-delivering value to patients, healthcare providers, and stakeholders across the value chain.

STRENGTHS

Shukra Pharmaceuticals Limited has consistently leveraged its core strengths to establish a firm position in the highly competitive pharmaceutical industry. Our capabilities in quality manufacturing, global regulatory compliance, and diversified exports continue to be key drivers of our sustained growth and market relevance.

During the Financial Year 2025-26, the Company further reinforced its foundational strengths, which are outlined below:

1. Technocrat-Led Management with Practical Expertise

The Company is promoted and led by a team of highly competent technocrats who bring deep domain expertise, hands-on industrial experience, and a strategic outlook to pharmaceutical manufacturing and global operations. The promoters have extensive practical exposure across key areas such as formulation development, regulatory affairs, quality assurance, plant operations, and international business development. Their commitment to excellence and ethical governance continues to guide the Companys expansion strategy and innovation roadmap.

2. WHO-GMP Certified Manufacturing Since 1998

Shukra Pharmaceuticals Limited has been WHO-GMP certified since 1998, a recognition that validates our compliance with stringent international manufacturing practices. The Company has maintained consistent adherence to Good Manufacturing Practices (GMP) as defined by the World Health Organization, ensuring that all products meet globally accepted standards of quality, safety, and efficacy.

Our manufacturing infrastructure is regularly audited and upgraded to remain aligned with evolving regulatory expectations. This long-standing WHO-GMP compliance has also enabled us to build trust among international buyers, health ministries, NGOs, and regulatory agencies across multiple countries.

3. Skilled Human Capital with Technical Proficiency

Our strength lies in our team of highly qualified and experienced professionals, who bring with them a wealth of expertise in formulation science, analytical research, production engineering, regulatory compliance, and international marketing. The Company fosters a culture of continuous learning, ensuring that the workforce remains up to date with global technical advancements, automation practices, and industry innovations.

Our cross-functional teams collaborate seamlessly to drive efficiency, quality, and speed to market, making Shukra Pharmaceuticals a responsive and reliable partner for clients and institutions worldwide.

The strengths of Shukra Pharmaceuticals Limited-rooted in technical leadership, internationally certified manufacturing, global outreach, and a capable workforce-form the foundation for the Companys sustained growth and strategic evolution. As we continue to scale new heights in FY 2025-26, these enduring capabilities will remain central to delivering value to our customers, stakeholders, and global healthcare systems.

CORPORATE DEVELOPMENT: EXPANSION THROUGH SUBSIDIARIES, ASSOCIATES AND JOINT VENTURE COMPANIES

In a significant step towards diversification and long-term value creation, Shukra Pharmaceuticals Limited has expanded its corporate structure during the year through the incorporation of nine Subsidiaries, Associates and Joint Venture Companies. This strategic development extends the Companys presence beyond conventional pharmaceutical formulations into adjacent and high-growth areas of the healthcare, medical technology, defence, and artificial intelligence ecosystems, positioning the Group for diversified revenue streams and future-ready growth. Each entity has been incorporated with a clearly defined scope of business, as set out below.

Shukra Healthtech Private Limited has been incorporated to engage in the business of supplying, selling, and distributing medical consumables, including but not limited to disposables, reagents, pharmaceuticals, personal protective equipment (PPE), and other healthcare-related products. The entity is also mandated to provide installation, maintenance, calibration, repair, and technical support services for medical devices, capital equipment, and related healthcare infrastructure, and to undertake consultancy, training, and turnkey solutions for hospitals, clinics, laboratories, and other healthcare institutions in relation to the procurement, usage, and management of medical equipment and consumables. This entity strengthens the Groups downstream presence in the medical consumables and healthcare infrastructure services value chain.

Shukra Robotics Private Limited has been set up to carry on the business of development, design, engineering, manufacture, assembly, import, export, distribution, installation, maintenance, servicing, and sale of robotic systems, surgical robots, navigation systems, instruments, devices, and equipment used in medical and surgical procedures. Its scope covers robotic-assisted surgeries, telesurgery, tele-proctoring, minimally invasive surgery (MIS), natural orifice transluminal endoscopic surgery (NOTES), and other computer-assisted or image-guided interventions. This entity positions the Group at the frontier of next-generation surgical technology, in line with the global shift towards precision and minimally invasive care.

Shukra Woundcare Private Limited has been incorporated for the business of developing, manufacturing, formulating, processing, sterilizing, assembling, importing, exporting, marketing, trading, distributing and dealing in all types of wound care products, medical, surgical, and healthcare devices, materials, consumables, and allied solutions. This includes advanced wound dressings, infection-control products, wound management systems, diagnostic aids, and therapeutic technologies. The entity is mandated to design, develop, and commercialize innovative, clinically effective, and cost-efficient wound care therapies that meet national and international quality standards, address unmet medical needs, and promote faster recovery, improved wound healing, and enhanced patient outcomes.

Shukra Diabetes Technologies Private Limited has been incorporated for the business of developing, manufacturing, formulating, importing, exporting, marketing, trading, distributing and dealing in all types of diabetes-related medical technologies, devices, equipment, products and solutions. This includes diagnostic

devices, glucose monitoring systems, insulin delivery systems, wearable health-tech devices, digital therapeutics, point-of-care testing equipment, medical sensors, health data management tools, mobile-based healthcare applications, and other technologies for the prevention, detection, monitoring, control and management of diabetes and related metabolic disorders.

The entitys mandate further extends to research, development, improvement, innovation and commercialization of medical devices and health technologies related to diabetes care, including hardware, software, algorithms, AI-based monitoring tools, medical data analytics platforms, health management systems, telemedicine solutions, integrated patient-care ecosystems and other digital health infrastructure. It is also empowered to establish, operate and maintain laboratories, testing centres, calibration facilities, research centres, clinical trial units, and product development facilities for medical devices and technologies used in diabetes treatment and metabolic health management. This entity reflects the Groups alignment with the rising chronic disease burden discussed elsewhere in this report.

Shukra Emergicare and Virtual Autopsy Technologies Private Limited has been incorporated for carrying on the business of providing virtual autopsy services and solutions, including non-invasive forensic examination using advanced imaging and digital technologies. Its scope covers designing, developing, manufacturing, and dealing in medical equipment, visualization systems, and software for forensic, clinical, and educational purposes, as well as developing and providing software platforms, 3D visualization, simulation, and virtual dissection solutions.

The entity is further mandated to offer training, education, and competency development programs for healthcare professionals; to establish, manage, and operate emergency response systems and services, including ambulance services, on-ground response units, and command and control centres; to provide technological solutions and coordination platforms for medical emergencies and disaster response; to undertake humanitarian assistance and relief in response to crises and disasters of all kinds; to engage in preparedness, mitigation, response, recovery, and resilience activities; and to provide consultancy, advisory, research, and technical support services in the fields of forensic science, medical technology, healthcare, and emergency management. This entity marks the Groups entry into forensic technology and emergency- response infrastructure.

Radiance Aesthetics Private Limited has been incorporated to import, export, manufacture, assemble, process, develop, brand, distribute, trade, and deal in capital equipment, medical devices, instruments, and consumables related to dermatology, cosmetology, aesthetic gynecology, ophthalmology, and aesthetic and wellness medicine. This includes cosmeceuticals, pharmaceuticals, chemical peels, skin boosters, injectables, lasers, energy-based devices, implants, and related products. The entity is also mandated to carry on research and development, clinical evaluation, pharma and cosmetic trials, product testing, quality assurance, and regulatory approvals in compliance with applicable laws in India and other countries, extending the Groups footprint into the fast-growing aesthetics and wellness medicine segment.

Shukra Combat Medical Support Private Limited has been incorporated to carry on the business of designing, developing, manufacturing, assembling, importing, exporting, supplying, distributing, trading, installing, operating, maintaining, and otherwise dealing in all kinds of expendable and non-expendable medical products, medical devices, emergency healthcare systems, combat medical support systems, first aid kits, trauma care kits, field hospitals, mobile hospitals, portable healthcare units, transportable medical systems, and allied equipment and accessories.

Its intended client base spans defence forces, paramilitary forces, homeland security agencies, disaster management authorities, hospitals, healthcare institutions, the Ministry of Defence, the Ministry of Home Affairs, other Government departments of India, and Governments of friendly foreign countries, including deployment through land, air, sea, ship, submarine, drone, or other transportation systems, subject to applicable laws and approvals. This entity strategically positions the Group in the specialised defence and combat healthcare segment.

Shukra Defence Private Limited has been incorporated for carrying on the business of designing, developing, researching, manufacturing, importing, exporting, assembling, supplying, distributing, maintaining, and dealing in all kinds of expendable and non-expendable defence, aerospace, homeland security, pharmaceutical, healthcare, biotechnology, medical devices, diagnostics, AI-based technologies, cybersecurity systems, tactical systems, autonomous unmanned systems (UxVs), communication systems, hospital and surgical equipment, pharmaceuticals, APIs, healthcare software, and allied products and services.

The entity is intended to serve the Ministry of Defence, the Ministry of Home Affairs, the Ministry of Health & Family Welfare, armed forces, paramilitary forces, police organizations, Government departments, public sector undertakings, hospitals, healthcare institutions, and Governments of friendly foreign countries, subject to applicable laws and Government approvals. It is further mandated to undertake strategic alliances, technology transfers, Joint Ventures (JVs), licensed manufacturing, co-development programs, research activities, consultancy, training, maintenance, modernization, logistics, and system integration services with Indian and foreign Original Equipment Manufacturers (OEMs), technology providers, research organizations, and allied entities, in accordance with applicable laws and Government policies. This entity represents a significant strategic diversification into the defence and homeland security sector.

Shukra AI Private Limited has been incorporated for the business of designing, developing, researching, innovating, engineering, manufacturing, licensing, acquiring, implementing, integrating, operating, maintaining, marketing, supplying, exporting, importing, distributing, and dealing in Artificial Intelligence (AI), Machine Learning (ML), Deep Learning, Data Analytics, Predictive Analytics, Computer Vision, Natural Language Processing (NLP), Generative AI, Robotics, Automation, Digital Platforms, Software, Hardware, Cloud-Based Systems, Decision Support Systems, and other advanced technology solutions for healthcare, defence, public sector, government, industrial, commercial, and strategic applications. This entity anchors the Groups technology and AI capabilities, providing a common digital backbone that can be leveraged across the other subsidiaries in healthcare, defence, and emergency-response domains.

Collectively, these nine entities mark a decisive step in the Groups evolution from a formulations-focused pharmaceutical manufacturer to a diversified healthcare, medical-technology, and strategic-technology group. By integrating capabilities across medical consumables, surgical robotics, wound care, diabetes technology, forensic and emergency-response systems, aesthetic medicine, combat medical support, defence, and artificial intelligence, the Group is building a platform for sustained, diversified, and innovation-led growth in the years ahead.

KEY ACHIEVEMENTS DURING THE YEAR

Financial Year 2025-26 has been a landmark year for Shukra Pharmaceuticals Limited, marked by significant milestones in the Companys capital markets journey by way of listing at NSE, geographic expansion, and overall business momentum, further reinforcing the Companys growth trajectory and stakeholder confidence.

Listing on the National Stock Exchange (NSE): During the year, the Company achieved a significant corporate milestone with the listing of its equity shares on the National Stock Exchange of India (NSE), in addition to its existing listing on the BSE. This dual listing enhances the Companys visibility among a wider base of institutional and retail investors, improves liquidity in the Companys shares, and reflects the growing scale, governance standards, and market confidence in Shukra Pharmaceuticals.

Pan-India Office Expansion Across 18 States: The Company has significantly expanded its domestic footprint during the year by opening offices across 18 states of India. This wide geographic presence strengthens the Companys on-ground marketing, distribution, and institutional sales capabilities, enabling closer engagement with healthcare providers, government bodies, and trade partners across diverse regions, and positions the Company for deeper penetration into domestic markets going forward.

Consistent and Constant Growth: The Company has continued to demonstrate steady and consistent growth across its operations during the year, reflected in its expanding order book, new institutional and government orders, strategic industry tie-ups, and its broadening subsidiary and geographic footprint. This sustained momentum underscores the strength of the Companys underlying business fundamentals and its ability to convert strategic initiatives into tangible growth outcomes.

KEY BUSINESS DEVELOPMENTS DURING THE YEAR

The Financial Year 2025-26 has been marked by several significant order wins and strategic tie-ups that reinforce Shukra Pharmaceuticals Limiteds growing credibility with institutional buyers, government agencies, and industry partners, both domestically and internationally. These developments are expected to contribute meaningfully to the Companys revenue visibility and market standing in the coming years.

HSCC Order for Afghanistan - Rs. 24 Crore: The Company has received an order worth approximately Rs. 24 crores from HSCC (India) Limited, a Government of India enterprise, for the supply of pharmaceutical products destined for Afghanistan. This order reflects the Companys continuing engagement in government- institutional and humanitarian supply channels and strengthens its presence in the Afghan and broader Central and South Asian markets, complementing its existing export footprint.

Strategic Tie-up and Order from Wockhardt: The Company has entered into a strategic tie-up with Wockhardt Limited, resulting in a fresh order for pharmaceutical formulations. This collaboration is expected to strengthen Shukras relationships within the organised domestic pharmaceutical industry, opening avenues for further contract manufacturing and institutional business with established industry players.

Rajasthan Government Order - Rs. 12 Crore: The Company has secured an order worth approximately Rs. 12 crore from the Government of Rajasthan for the supply of essential medicines. This order underscores Shukras continuing participation in state government tenders and its role in supporting affordable, government-driven healthcare distribution under public procurement programmes.

Together, the HSCC (Afghanistan), Wockhardt, and Government of Rajasthan orders reflect the diversified nature of the Companys order book across institutional, government, and industry-partner channels, and are indicative of the Companys growing traction in both export and domestic government supply segments during the year.

OVERALL REVIEW OF THE COMPANY Product Portfolio

We are providing a variety of products to the clientele. Currently the product portfolio includes the following: Antibiotics (Penicillin), Anti Biotics (Cephalosporin), Anti Biotics, Macrolides, Quinolones, Anti Bacterial, Anti Fungal, Anti Malarial, Anti Viral, Anti Protozoal, Anti Anthelmintic, Sedative and Tranquilliser, Anti Depressant, Anti Manic, Anti Emetic, Anti Ulcer, Beta Blockers, Diuretics, Analgesic, Analgesic (NSAID), Muscle Relaxants, Anti Tuberculosis, Vitamin Products, Anti Allergics, Corticosteroids, Hyper and Hypoglycemic, and Others. Customers satisfaction by delivering quality products has been the cornerstone of our Company. The Company, therefore, believes in manufacturing of all critical and precision components in-house.

Man ufacturing Activities

The formulation facilities are spread over 10 Acres of sprawling green campus. The Companys manufacturing plant is situated in the district Gandhinagar, Rakanpur.

The Company has highly experienced, highly qualified, highly dedicated professionals continuously updated with the latest technical and technological advances, manufacturing innovations and product standards in the field.

A singular reason why Shukra Pharmaceuticals continues to be the choice of people who value production efficiency, safety, high output, economy and quality. For Shukra Pharmaceuticals, contract manufacturing is a strategic partnership, from development to scheduled delivery. The manufacturing practices are directed to ensure better utilization of capacities and investments in the latest technology.

OPPORTUNITIES, THREATS, RISKS AND CONCERNS

The Indian pharmaceutical industry is growing consistently and is expected to do so also in future. Quality of products will improve, as is evident from the recent publication of the new Indian Pharmacopoeia and the activities of the Drugs Controller of India against "irrational combinations" and "counterfeits". We wish that these initiatives, which will lead to a safer healthcare environment for patients, will be followed up in a transparent and rational way.

Over the past decade, pharmaceutical companies have entered a difficult period where shareholders, the market and regulators have created significant pressures for change within the industry. The core issues for most drug companies are declining productivity of in-house R&D, patent expiration of a number of blockbuster drugs, increasing legal and regulatory concern, and pricing issues. As a result, larger pharmaceutical companies are shifting to a new business model with greater outsourcing of discovery services, clinical research and manufacturing.

Today the Indian pharmaceutical industry can look forward to the years to come with great expectations. There are opportunities in expanding the range of generic products as more molecules come off patent, outsourcing, and above all, in focusing on drug discovery as more profits come from traditional plays. At the same time, the Indian pharma industry would have to contend with several challenges, particularly:

• Effects of new product patents

• Drug price control

• Regulatory reforms

• Infrastructure development

• Quality management, and

• Conformance to global standards

FUTURE OUTLOOK

Being satisfied with the infrastructure of the Company, Mr. Dakshesh Shah, Director, is gearing up to obtain the ISO 9000 Certificate in view of the liberalization of the economic policy of the country. This will provide an ample and unique opportunity for the further growth of the Company.

Visualizing a meteoric all-round growth of the pharmaceutical industry in India and abroad, Shukra has set up a sophisticated injectable plant fully committed to continuous improvement with its sound R&D base.

Further, to attain financial strength through ever-growing profitability, to attain excellence while achieving "Supreme Customer Satisfaction", to attain global recognition for the Corporation, and to focus on customers needs and fulfil their expectations.

Looking ahead, the Company plans to significantly deepen its presence in the medical technology (MedTech) sector, building on the platform established through its newly incorporated subsidiaries spanning surgical robotics, wound care, diabetes technology, forensic and emergency-response systems, aesthetic medicine, and combat medical support. The Company intends to invest in product development, clinical validation, and regulatory approvals across these MedTech verticals, pursue technology partnerships and collaborations with domestic and international OEMs, and progressively scale manufacturing and distribution capabilities for medical devices and healthcare technology solutions. This planned expansion into MedTech is expected to complement the Companys core pharmaceutical formulations business, diversify revenue streams, and position the Group as an integrated healthcare and medical-technology enterprise over the medium to long term.

SEGMENT-WISE PERFORMANCE

The Company is operating in only two sectors, i.e. Pharmaceutical and Laboratory. However, during the year, the Laboratory segment commenced only very minor commercial operations, and therefore segment reporting and performance standards are not applicable to the Company.

FINANCIAL PERFORMANCE

The Company is passing through the restructuring process and trying to come out of all difficulties by improving its turnover.

The Company has diversified its business activities and is at the verge of achieving better financial performance. The Company has successfully implemented various operational excellence programs designed with the help of external consultants so as to optimize on cost and delivery commitments. The Companys cash flow position as at the year-end continues to remain strong. Increased liquidity has strengthened the Companys confidence for launching new growth initiatives for the existing and emerging businesses of Medical Technology (MedTech) and specialized healthcare formats.

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial year) in key financial ratios, along with detailed explanations thereof, are as under:

Sr. No.	Financial Ratio	Year ended 31.03.2026	Year ended 31.03.2025
1.	Debtors Turnover	1.96	2.73
2.	Inventory Turnover	1.32	5.15
3.	Interest Coverage Ratio	-	-
4.	Current Ratio	3.79	3.97
5.	Debt Equity Ratio	0.07	0.05
6.	Operating Profit Margin (%)	-	-
7.	Net Profit Margin (%)	29.42	24.86

Notes:

• Debtors Turnover ratio increased due to good collection of receivables.

• Inventory Turnover ratio decreased as the closing stock inventory as on date is more than the average increase in sales compared to the previous year.

• Debt Equity Ratio decreased mainly due to a decrease in Debt fund compared to Shareholders Fund.

• Net Profit Margin (%) increased due to an increase in Net Profit and an increase in the Total Revenue of the Company in the current financial year as compared to the previous financial year.

INTERNAL CONTROL

The internal control systems, including the policies, procedures and guidelines of the Company, are adequate and commensurate to the extent and nature of its operations. The controls are reviewed for effectiveness by the internal auditors and the Audit Committee. Any deviations are brought to the notice of the Audit Committee periodically, and corrective steps are recommended and implemented.

Sd/-	Sd/-
Dakshesh Shah	Payal Mehta
Managing Director	Director
DIN:00561666	DIN:02145421