Strides Pharma Science Ltd Management Discussions

Economic Environment

Global Economy

The global economy remains closely linked through trade, investment and financial flows, which continue to drive growth across regions. In 2025, it grew by 3.4%, a rate similar to that observed in 2024 and is expected to ease to 3.1% in 2026 before rising slightly to 3.2% in 2027. At the same time, geopolitical tensions, particularly in the Middle East, are putting pressure on the global economy through changes in energy prices, uncertainty and disruptions to trade and financial systems.

Global Economy GDP Growth Rate (%)

Particulars	2024	2025	2026P*	2027P*
World	3.4	3.4	3.1	3.2
United States (U.S.)	2.8	2.1	2.3	2.1
Euro Area	0.9	1.4	1.1	1.2
Australia	1.0	2.0	2.0	1.7
Advanced Economies	1.8	1.9	1.8	1.7
China	5.0	5.0	4.4	4.0
South Africa	0.5	1.1	1.0	1.3
Latin America and the	2.4	2.4	2.3	2.0
Caribbean
Emerging Market	4.5	4.4	3.9	4.1
and Developing
Economies (EMDEs)

*P - Projection

Source: IMF World Economic Outlook April 2026

U.S.

The U.S. economy remained steady, growing by 2.1% in 2025. It is expected to grow by 2.3% in 2026 and 2.1% in 2027. While overall activity has been stable, there are signs of some slowdown, including a softer labour market and slower job growth. Growth also eased slightly toward the end of 2025 due to fiscal challenges and weaker demand in the technology sector, although investment activity continued to aid the economy.

Emerging Market as per the IMF and Developing Economies (EMDEs)

Emerging market and developing economies remain important contributors to global growth. They grew by 4.4% in 2025 and are expected to grow by 3.9% in 2026 and 4.1% in 2027. While growth remains relatively strong, these economies are more exposed to global risks and have limited flexibility to manage external shocks.

Eurozone

The Eurozone grew by 1.4% in 2025 and is expected to grow by 1.1% in 2026 and 1.2% in 2027. The recovery remains gradual, with growth affected by weaker demand and ongoing geopolitical uncertainties. However, improving stability is expected to strengthen moderate growth in the coming years.

*E - Estimate

Source: Ministry of Statistics & Programme Implementation (MoSPI)

While global challenges such as higher trade tariffs and geopolitical tensions in West Asia have put some pressure on Indias exports, their impact has been partly mitigated by stronger engagement with key markets such as the U.S. and Europe. These regions remain important for India, supported by consistent demand for generics, ongoing supply chain diversification and a growing preference for trusted, high-quality manufacturing capabilities. Improving regulatory alignment and

Outlook

As per the IMF, the global economy is expected to remain resilient, with growth slowing slightly in 2026 before improving in 2027. The outlook is being shaped by the rising use of Artificial Intelligence (AI) and changes in U.S. tariff policies. AI is driving productivity, innovation and new opportunities across industries, while U.S. tariffs may disrupt trade, increase costs and add pressure on supply chains. The impact is uneven across regions, with emerging and conflict-affected economies facing sharper slowdowns, while advanced economies are likely to see more moderate growth. Overall, growth across most regions is expected to continue, augmented by steady demand and gradually improving financial conditions.

Despite ongoing geopolitical uncertainties and occasional disruptions in energy and trade, the global economy is expected to stay on track. Over time, factors such as shifting population trends, evolving demand patterns and improved access across regions are likely to drive stability. However, the outlook remains delicate, influenced by geopolitical tensions, trade fragmentation and demographic changes, with medium-term growth depending on productivity improvements driven by technology adoption and better policy coordination.

Indian Economy

Indias economy continues to be one of the fastest-growing major economies in the world, supported by strong domestic demand, a young workforce and ongoing reforms. In FY26, the economy maintained strong momentum, with GDP expected to grow by 7.6%, up from 7.1% in the previous year. This growth was driven mainly by good performance in the services and industrial sectors, along with steady consumer spending throughout the year. Investment activity also picked up, especially in the second half, which aided overall growth. Manufacturing remained a key contributor, growing by 11.5% compared to 9.5% last year. In April 2026, the Reserve Bank of India kept the repo rate unchanged at 5.25% and maintained a neutral stance to drive growth while keeping inflation under control.

easier market access are also boosting export growth. India signed a Free Trade Agreement (FTA) with the UK in July 2025 to strengthen bilateral trade, improve market access and enhance investment opportunities across sectors. The agreement is expected to aid exports, deepen economic cooperation and create long-term growth opportunities for businesses in both countries. India has also signed a free trade agreement with New Zealand to further strengthen trade and investment ties. At the same time, domestic reforms such as the simplification of the Goods and Services Tax (GST) and the easing of compliance requirements have improved the business environment and augmented overall economic growth.

Outlook

Geopolitical tensions and war-related disruptions in energy-producing regions may adversely impact global supply chains and energy markets. Higher crude oil, LPG and aviation fuel prices could increase transportation and operating costs, contributing to inflationary pressures across economies. For India, elevated energy import costs may widen the trade deficit and current account deficit, given the countrys significant dependence on imported crude oil and LPG.

However, Indias economic outlook remains positive, supported by rising disposable incomes and steady urbanisation. Major players are expected to expand their footprint, deepen customer engagement and increasingly adopt technology-led operating models to capture new opportunities.

Continued infrastructure development and an improving business environment should further enable expansion into emerging markets. While global uncertainties and input cost pressures persist, strong domestic demand and evolving consumption patterns are expected to drive sustained long-term growth.

Industry Overview

Global Pharmaceutical Industry

The global pharmaceutical industry reached a key milestone in 2025, strengthened by scientific progress, evolving policies and changing market dynamics. However, upcoming patent expiries are expected to moderate overall growth, mirroring the industrys need for continued innovation. The pharma industry growth is also becoming increasingly concentrated in a few high-value therapy areas. Oncology, immunology and diabetes together accounted for about 43% of global pharmaceutical value in 2025, while obesity treatments have emerged as a major new growth driver.

In 2025, the global pharmaceutical market remained heavily skewed toward the U.S., which accounted for 53% of total sales, up from 49% in 2021. Europe maintained a stable 24% share, led by key markets such as Germany and France. The Asia-Pacific region accounted for 11% of global sales, with China remaining the second-largest pharmaceutical market. Meanwhile, the Middle East and Africa emerged as the fastest-growing region, registering annual growth of around 18%, aided by policy reforms, improved healthcare access and rising treatment demand.

Medicine Market

Broader availability of medicines and healthcare services, continued innovation and evolving pricing dynamics are driving more stable and balanced growth across global markets. The global medicine market expanded from approximately U.S.$ 1,774 Bn in 2024 to around U.S.$ 1,939 Bn in 2025, supported by sustained demand for established therapies and the launch of new products. During the year, 73 new active substances were introduced, adding further momentum to growth. Looking ahead, global medicine spending is expected to reach U.S.$ 2,630 Bn by 2030.

Developed economies are expected to remain the primary growth engines, driven by continued uptake of new therapies and increased utilisation of existing branded medicines, even as this is partially offset by ongoing patent expiries. Growth momentum is expected to be sustained by continued innovation and deeper penetration of advanced treatments. Overall, the growth outlook for the global medicine market is expected to remain at a 5 8% CAGR through 2030. This growth is primarily aided by strong expansion in immunology, oncology, diabetes and obesity, which continue to be the key structural drivers of global pharmaceutical demand.

Global Medicine Market Size (Market Value in U.S.$ Bn and Growth in %)

Global spending U.S.$ Bn % Growth constant U.S.$ Source: IQVIA February 2026 Report

Around 15 high-income countries with GDP per capita (PPP) above U.S.$ 50,000 are expected to add over U.S.$ Bn in pharmaceutical spending by 2030. Together, the U.S. and 14 other developed markets are projected to account for nearly 76% of total global growth during this period. Within these markets, growth is largely driven by the adoption of innovative medicines, which are typically launched within a year of global approval. In addition, 14 large developed markets outside the U.S. are expected to contribute approximately U.S.$ 155 Bn in incremental growth by 2030, with nearly 83% of this coming from the top eight countries.

At the same time, pharmerging markets defined as countries with GDP per capita below U.S.$ 50,000 but with expected pharmaceutical growth exceeding U.S.$ 2 Bn through 2030 continue to expand steadily. These markets are projected to add around U.S.$ 120 121 Bn in incremental spending by 2030, slightly higher than the growth seen over the previous five years. As in developed markets, the top eight countries in this group are expected to account for about 83% of the total, mirroring their growing importance in the global pharmaceutical landscape.

High Growth Developed and Pharmerging Markets Spending and Growth, Constant U.S.$, 2015 2030

High Growth Developed Markets, Pharmerging Markets, Growth 2026-2030?U.S.$ 120.8 Bn Growth 2026-2030?U.S.$ 155.1 Bn

Region-Wise Pharma Industry Overview

U.S. Pharma Industry Landscape

The U.S. is the largest pharmaceutical market globally and remains the primary driver of industry growth. It plays a structurally important role, with expected absolute market expansion between 2025 and 2030 projected to exceed the combined growth of all other global markets. From an overview perspective, the U.S. pharmaceutical market is supported by strong underlying demand drivers. The rising incidence of chronic diseases such as diabetes and obesity is increasing long-term medicine consumption. In addition, the rapid uptake of innovative therapies, particularly Glucagon-Like Peptide (GLP-1) drugs, along with the expanding use of biologics, is further strengthening market growth. Over time, this has led to a significant rise in overall medicine spending, with total list price expenditures increasing from U.S.$ 544 Bn in 2015 to U.S.$ 1,023 Bn in 2024.

Looking ahead, the outlook for the U.S. market remains positive, although growth is expected to be more measured after accounting for rebates, discounts and payer concessions. According to the IQVIA Institute, net pharmaceutical spending is projected to grow at a CAGR of around 4 7% during 2025 2030. This growth will be primarily driven by high-value therapeutic areas, including oncology, immunology and obesity treatments. Overall, U.S. medicine spending is expected to continue its upward trajectory, reaching an estimated U.S.$ 1,403 Bn by 2029. This reflects sustained long-term expansion, pushed by innovation, disease-burden trends and continued demand for advanced therapies.

The U.S. pharmaceutical industry is creating strong opportunities for generic medicine companies as healthcare providers increasingly focus on affordable medicines, stable supply chains and better patient access. According to IQVIA, the U.S. Food and Drug Administration FDA reported 102 active drug shortages as of June 2024, with more than 57% of them lasting over 2 years. At the same time, a large number of generic medicines that have already received U.S. FDA approval are yet to be commercially launched. IQVIA estimates that between 2013 and Q1 2024, nearly 37% of approved generic drugs had still not entered the market. In addition, around 62% of medicines currently facing shortages already have approved generic versions on file, while nearly 84% of these shortage cases have at least one approved generic product that is yet to be launched commercially. This highlights a significant opportunity for pharmaceutical companies with strong manufacturing, regulatory and supply capabilities to launch approved products, improve medicine availability and expand their presence in the U.S. generic pharmaceutical market.

U.S. Generics Market

The U.S. generics market plays an important role in keeping medicines affordable while still supporting healthcare innovation, but its overall growth remains structurally limited.

Generic medicines play a vital role in improving access to affordable healthcare in the country. They account for nearly 90% of all prescriptions filled by volume, while representing only 13.1% of total prescription drug spending and about 1.2% of overall healthcare expenditure. This highlights the significant value generics provide by helping patients access essential medicines at a lower cost. Although generics account for the majority of prescription volumes, they contribute a much smaller share of total pharmaceutical spending due to intense price competition and commoditisation. As a result, the industry is gradually shifting toward more complex generics, specialty generics and biosimilars, where entry barriers are higher and margins tend to be more sustainable. This ongoing transition is important for ensuring the long-term stability and viability of the U.S. generics ecosystem.

Regulatory and Policy Landscape

The U.S. pharmaceutical policy environment is undergoing significant change, with a stronger focus on drug pricing, patient access and increasing domestic manufacturing. Recent discussions, including Most Favoured Nation (MFN) pricing frameworks, reflect efforts to align U.S. drug prices more closely with global benchmarks in order to reduce healthcare costs.

At the same time, regulatory changes are driving innovation.

The use of Artificial Intelligence (AI) in development is being actively encouraged through initiatives led by the U.S. Food and Drug Administration (FDA), as well as the greater adoption of Real-World Evidence (RWE). These measures aim to speed up drug approvals, improve clinical trial efficiency and enhance patient outcomes. Another key focus area is strengthening supply chain resilience and increasing domestic manufacturing driven by geopolitical concerns and lessons learned from the COVID-19 pandemic.

As of April 2026, trade policies, tariffs and incentives to localise production are expected to influence global pharmaceutical supply chains. However, potential reductions in the capacity of key federal agencies, such as the FDA, the National Institutes of Health (NIH) and the Centers for Disease Control and

Prevention (CDC), along with ongoing healthcare reforms, may create execution risks and regulatory uncertainty. The global pharmaceutical industry may witness some impact from proposed U.S. tariff measures on patented and specialty drugs, particularly for products manufactured outside the U.S. However, generic medicines and biosimilars are expected to remain largely unaffected, supporting continued access to affordable healthcare. The evolving trade environment is also encouraging pharmaceutical companies to diversify supply chains, strengthen domestic manufacturing capabilities and improve long-term supply resilience across global markets.

Ex-U.S. Markets

• European Union

The European pharmaceutical policy framework is increasingly focused on strengthening medicine security, improving supply chain resilience and supporting innovation-led growth. Key initiatives such as the Critical Medicines

Act, the Critical Medicines Alliance, the Health Technology

Assessment (HTA) Regulation and the European Health Data Space (EHDS) aim to reduce drug shortages, improve access and enable better data-driven decision-making across member states. These reforms are also encouraging the diversification of Active Pharmaceutical Ingredient (API) sourcing toward reliable EU-GMP-compliant suppliers, creating meaningful export opportunities for Indian API manufacturers and strengthening their role in global supply chains. Regulatory updates led by the European Commission and the European Medicines Agency (EMA) are further tightening quality standards, improving risk monitoring and enhancing transparency across supply networks. Overall, the policy direction is clearly shifting toward stronger supply security, sustainable manufacturing and diversified sourcing. This creates a favourable environment for compliant Indian API exporters to expand their presence in Europe. In addition, ongoing India EU Free Trade Agreement (FTA) discussions could further aid market access by simplifying regulatory pathways and improving tariff predictability for pharmaceutical products, including APIs.

• Australia

The Australian pharmaceutical market was valued at $25.3 Bn in 2025 and is expected to reach $31.9 Bn by 2034, growing at a 2.5% CAGR between 2026 and 2034. The market is growing steadily due to rising healthcare spending, increasing demand for advanced medicines and a strong government drive for affordable healthcare. The Pharmaceutical Benefits Scheme (PBS), which helps Australians access subsidised medicines, continues to play a major role in accelerating the industry. The Australian government has also allocated AUD 3.2 Bn toward cheaper medicines and healthcare reforms to improve access to treatment nationwide.

Generic medicines held the highest market share at 57.4%, aided by government policies encouraging the use of lower-cost alternatives and biosimilars. Prescription medicines also dominated the market, with a 72.9% share, driven by the strong PBS reimbursement structure.

The market is also being driven by rapid digital transformation in healthcare. Since 2020, more than 219 million electronic prescriptions have been issued across Australia, helping expand telehealth services, online pharmacies and digital medicine dispensing. Although the industry faces challenges such as pricing pressure, dependence on imported APIs and lengthy reimbursement processes, the long-term outlook remains positive due to continued healthcare investments, regulatory improvements and growing access to innovative medicines.

• Africa

The African pharmaceutical industry is experiencing steady growth, with the market projected to increase from U.S.$ 27.7 Bn in 2024 to U.S.$ 37.0 Bn by 2033 at a CAGR of 3.3%. The markets expansion reflects the ongoing transformation of healthcare systems across the continent, driven by rising healthcare needs, rapid urbanisation and improved access to medicines. While infectious diseases such as malaria, tuberculosis and HIV/AIDS continue to remain significant healthcare challenges, the growing prevalence of chronic diseases, including diabetes, hypertension, cardiovascular disorders and cancer, is further increasing demand for a broader range of pharmaceutical products, including generics, biologics, biosimilars and specialty medicines. Increased healthcare awareness, improved diagnostic capabilities and a stronger focus on preventive care are also contributing to higher medicine consumption in both urban and rural regions.

At the same time, governments and private-sector participants across Africa are actively investing in healthcare infrastructure, hospitals, clinics and pharmaceutical supply chains to improve healthcare accessibility and strengthen medicine availability. Several countries are encouraging local pharmaceutical manufacturing to reduce dependence on imports and build more resilient domestic supply chains.

Regulatory initiatives such as the African Medicines Agency (AMA) and the African Medicines Regulatory Harmonisation (AMRH) programme are helping streamline approval processes and improve cross-border access to medicines. In addition, investments in cold-chain logistics, warehousing and distribution infrastructure are strengthening the overall pharmaceutical ecosystem. Countries such as South Africa,

Nigeria, Kenya, Senegal and the Cote dIvoire are emerging as important pharmaceutical hubs, augmented by rising healthcare spending, improving manufacturing capabilities and continued healthcare reforms across the region.

Company Overview

Strides Pharma Science Limited (hereafter referred to as

Strides or Our Company) is a global pharmaceutical company headquartered in Bengaluru, India. We are engaged in the development, manufacturing and marketing of pharmaceutical products, with a strong focus on providing high-quality, affordable medicines across global markets. We specialise in niche and technically complex (difficult to manufacture) generic finished dosage formulations.

Our products are trusted and supplied in more than 100 countries worldwide. We have a strong presence in regulated markets, including the U.S., Europe and Australia. At the same time, we are also focused on emerging markets and through our in Africa, for Africa strategy, which aims to improve access to essential medicines. In addition, we run a dedicated institutional business that drives donor-funded healthcare programmes, helping address critical public health needs. We operate a global manufacturing network with facilities across India, Italy, Kenya and the U.S. Several of our facilities are approved by leading global regulatory authorities, including four by the U.S. Food and Drug Administration (FDA), reflecting our strong commitment to quality, safety and compliance in everything we do. We are among the few listed Indian pharmaceutical companies that derive 100% of our business from global markets.

Our Strengths

Diversified Global Presence

• Extensive footprint across regulated and emerging markets, reducing geographic concentration risk and enabling multiple growth drivers.

Strong Regulatory and Quality Track Record

• Robust regulatory and quality track record, backed by strong compliance systems and continuous audits, strengthening customer confidence.

Technology-Driven Operations

• Advanced technology platforms improve operational efficiency, scalability and customer service capabilities.

Experienced Leadership Team

• Industry-experienced management enabling disciplined execution, strategic expansion and long-term value creation.

Strong Customer Relationships

• Long-standing partnerships with customers and distributors strengthen market positioning and revenue stability.

Diversified Product Portfolio

Our portfolio covers complex generics across multiple dosage forms, including tablets, hard capsules, sachets, liquids, nasal sprays, topical formulations and controlled substances. We have built a strong presence across core therapeutic segments while continuing to expand into niche opportunities and differentiated products that address unmet patient needs and strengthen our competitive position.

Over the past year, we have prioritised the expansion of our branded products portfolio in key markets such as the UK, Nordics and Africa. Our efforts have focused on entering new categories and deepening our presence in areas that address region-specific healthcare requirements and patient needs.

Our portfolio strategy is increasingly focused on driving value-led growth by addressing unmet market needs, strengthening brand equity and enhancing product differentiation. This approach enables us to improve pricing power while building a more resilient and sustainable business.

Robust Manufacturing Network

We have built a strong global manufacturing footprint with 7 facilities across 4 countries, including India, the U.S., Italy and Kenya. In India, we operate 4 plants located in Bangalore (two facilities), Puducherry and Chennai. Internationally, we have one facility each in the U.S., Italy and Kenya (serving the African market). Four of these facilities are approved by the FDA, enabling us to meet stringent international quality and regulatory standards while serving diverse markets. We also maintain strong compliance standards across our operations, with multiple regulatory inspections conducted annually.

Our network is designed to deliver scale, flexibility and reliability, aided by a multi-site, multi-format manufacturing model aligned with evolving product needs and regulatory requirements. Our facilities consistently maintain zero outstanding regulatory observations, reflecting our strong commitment to quality and compliance. In FY26, we strengthened digital integration, enabled smooth new product launches and enhanced our focus on sustainability and safety, improving operational resilience.

Financial Overview

Financial Results (in K Mn)

Standalone Consolidated Particulars

FY26 FY25 YoY Change (%) FY26 FY25 YoY Change (%)

Revenue 21,801 21,394 2% 48,587 45,653 6% Gross Margins 10,701 10,559 1% 29,000 25,854 12% Gross Margin (%) 49.1% 49.4% (30 bps) 59.7% 56.6% 310 bps EBITDA 2,850 2,624 9% 9,253 8,028 15% EBITDA Margin (%) 13.1% 12.3% 80 bps 19.0% 17.6% 150 bps Operational PAT 1,004 592 70% 5,181 3,447 50% Operational EPS (I) 10.9 6.4 70% 56.2 37.5 50%

Standalone

We delivered a strong financial performance during the year, driven by our focus on operational efficiency and sustainable growth. In FY26, our Standalone Revenue stood at I 21,801 Mn, up from I 21,394 Mn in FY25, representing 2% YoY growth. Gross Profit was I 10,701 Mn, up from I 10,559 Mn in the previous year, with a Gross Margin of 49.1%, compared to 49.4% in FY25. EBITDA stood at I 2,850 Mn in FY26 compared to I 2,624 Mn in FY25, translating into an EBITDA Margin of 13.1% versus 12.3% last year. Operational Profit After Tax was 1,004 Mn compared to 592 Mn in FY25. Operational Earnings Per Share stood at I 10.9 in FY26, as compared to I 6.4 in FY25.

Consolidated

Our Consolidated Revenue for FY26 stood at I 48,587 Mn compared with I 45,653 Mn in FY25, representing a YoY change of 6%. Our Gross Profit stood at I 29,000 Mn in FY26, up from I 25,854 Mn in the previous year, with a Gross Margin of 59.7%, up from 56.6% in FY25. We reported EBITDA of I 9,253 Mn in FY26, up from I 8,028 Mn in FY25, resulting in an EBITDA Margin of 19%, up from 17.6% in the previous year. Our Operational Profit After Tax stood at I 5,181 Mn for FY26, compared with I 3,447 Mn in FY25. We delivered Operational Earnings Per Share of I 56.2 in FY26, compared with I 37.5 in FY25. We have recommended a final dividend of I 5 per equity share for FY26, subject to approval at the forthcoming Annual General Meeting.

All the P&L numbers have been adjusted to reflect the impact of the demerged Softgel business to OneSource.

All the Balance Sheet numbers till FY24 include the discontinued Softgel-related numbers.

Business Performance

Strides generates revenue from the U.S., Ex-U.S. markets and Access Markets. Effective from Q3 FY26, Other Regulated Markets (ORM) and Growth Markets have been categorised under Ex-U.S. markets to provide a clearer view of the performance and growth dynamics of our international business outside the U.S. ORMs include all regulated markets outside the U.S., while Growth Markets cover our Africa operations and new geographies in Latin America (LATAM), the Middle East and North Africa (MENA) and Asia-Pacific (APAC).

Particulars	FY26	FY25
Debtors\u2019 Turnover (x)	3.90	3.89
Inventory Turnover (x)	1.35	1.65
Interest Coverage (x)	5.24	3.12
Current Ratio (x)	1.28	1.24
Debt Equity (x)	0.53	0.69
EBITDA Margin (%)	19.0%	17.6%
Operational PAT Margin (%)	10.7%	7.6%

Significant Change in Key Financial Ratios (Consolidated)

Our total Consolidated Revenue for FY26 stood at I 48,587 Mn, registering a YoY growth of 6.4%, driven by steady execution despite external volatility across key markets. The year also reflected a meaningful improvement in business mix, with a more diversified revenue base across geographies and portfolios. The U.S. contributed 51% of revenues, while Ex-U.S. markets accounted for 46%, reinforcing the growing balance and resilience of the overall business model.

U.S. Markets

Our U.S. business continued to demonstrate resilience during FY26 despite a challenging operating environment.

Our U.S. revenue stood at I 24,897 Mn in FY26, reflecting 2% YoY growth over FY25, despite a challenging market environment characterised by pricing pressure and intense competition. The year was marked by a clear focus on strengthening the businesss foundation through deeper customer relationships, improved portfolio governance and disciplined execution.

The U.S. portfolio consists of 70 commercialised products, securing a Top 3 market position in 37 of them, which contributes 75% of our U.S. revenues. We prioritise enhancing portfolio quality through selective product rationalisation, lifecycle extension strategies and value optimisation initiatives.

In a volatile and challenging environment, we reinforced a three pronged approach: defending leadership positions, maintaining strict profitability thresholds and selectively launching products where value can be maximised. We have also strengthened internal processes around portfolio selection, governance and launch execution to ensure that every decision from product continuation to new launches is aligned with sustainable value creation.

In FY26, nine products were discontinued as they did not meet profitability thresholds, reinforcing the emphasis on quality of earnings over scale. While six new products were launched during the year, certain launches were intentionally delayed to align with better market conditions. We continued to maintain our Top 3 positions across core molecules, ensuring continuity and stability of the revenue base.

We are building a stronger presence in high-barrier, differentiated segments, with a focus on Controlled Substance. Controlled Substance manufactured at the Chestnut Ridge facility present a distinct market opportunity due to the regulated quota system. With a few products already commercialised and a full year of execution completed, FY26 marked a critical phase in establishing our operating track record. Having demonstrated consistent execution against allocated quotas, we are well positioned to secure higher allocations going forward, which will be a key driver of incremental growth.

Alongside this, we are expanding into niche formats such as nasal sprays, transdermal patches and films, with two nasal spray products already filed.

We are also building our Over-The-Counter (OTC) and business-to-business (B2B) presence through selective partnerships that can unlock new channels over time.

Cross-functional governance frameworks have been established to improve execution discipline and enhance go-to-market performance.

Outlook

The U.S. market is expected to remain our key growth driver over the coming years and continued investments in research and development will aid future launches and long-term growth. At the same time, we remain focused on improving operational excellence while managing industry challenges, including seasonal demand shifts and regulatory timelines.

Ex U.S. Markets

Our Ex-U.S. operations encompass the UK, Europe, Nordics,

Australia, Africa (including South Africa and Francophone Africa), as well as select countries across MENA, APAC and LATAM.

We continue to strengthen our Ex-U.S. portfolio through a balanced mix of core therapeutic products, niche offerings and branded products tailored to local market needs. The strategy is increasingly focused on differentiated, value-added products across key markets, supporting enhanced brand equity, improved pricing realisation and a gradual transition toward value-driven growth.

In FY26, Ex-U.S. markets delivered revenue of I 22,404 Mn, representing a YoY growth of 21%. This growth was driven by strong execution across regions, supported by high quality B2B partnerships, stable pricing environments, strong entry barriers and long-standing customer relationships.

Other Regulated Markets (ORM) generated revenue of I 16,398 Mn, registering YoY growth of 21%, led by robust performance in the UK, Nordics and Australia.

Growth Markets recorded revenue of I 6,006 Mn, reflecting YoY growth of 22%. Performance was supported by continued geographic expansion, with Africa and other key emerging markets delivering strong growth, while ongoing regulatory filings are expected to support future expansion.

The strong performance of the Ex-U.S. business reflects the growing scale and diversification of our international operations. We are now transitioning from a build-out phase to the next stage of scale-up and portfolio monetisation, supported by sustained investments in portfolio expansion, regulatory capabilities and strategic partnerships over the past few years.

Region-Wise Performance Highlights i. UK

The UK remains our anchor market where we have established a strong, credible position, supported by a diversified distribution network across both the prescription (Rx) and OTC segments. Our distribution footprint includes Tier-1 and Tier-2 wholesale partners, NHS supply chains and Clinical Commissioning Groups (CCGs). We actively participate in NHS tenders through the Commercial Medicines Unit (CMU), which is recognised for our commitment to quality, reliability and supply assurance.

The UK business continued to strengthen its market position through targeted launches in niche and underserved therapeutic areas, including a branded product. A disciplined focus on operational excellence, coupled with strong commercial execution, strengthened our market presence. Improving demand conditions in the latter part of the year created additional opportunities, while growing traction in the OTC segment is expected to contribute meaningfully to future growth.

ii. Australia

Australia remains a stable and strategically important market for us, where we are one of the largest Indian suppliers of generic medicines. Our strong market position is supported by a preferred supplier agreement with a partner, which is the market leader in the local generic market. A long-term supply agreement provides future business visibility and scale. During the year, improved DIFOT (Delivery in Full, On Time) performance strengthened customer confidence and deepened our reputation for reliability, while our market expansion initiatives drove higher volumes and new customer acquisitions. Operating in a highly advanced pharmaceutical market characterised by strong generic adoption, broad access to medicines and support from the Pharmaceutical Benefits Scheme (PBS), we remain focused on deepening customer relationships, expanding our partnership network and pursuing opportunities in niche and differentiated segments to drive sustainable growth.

iii. Europe

In Europe, we operate in highly regulated markets with strong barriers to entry, which make these relationships stable and long-lasting. The European pharmaceutical market is highly diverse, with different dynamics across Western, Eastern and Southern Europe. We recognise that success in one region does not automatically translate to another, so we take a tailored approach for each market we operate in. This strategy has helped us deliver steady and consistent growth across the region. Our strong network of strategic partnerships continues to drive our momentum and drive expansion across key European markets. The European business delivered steady progress during FY26, supported by portfolio expansion and strong execution. Strides operates in highly regulated markets with high barriers to entry, which helps build stable, long-term partnerships across the region. Germany remained a key market, where the OTC portfolio performed strongly and became the most profitable segment in Europe. The contract manufacturing business also grew, augmented by better service reliability and new customer additions. Overall, we expect momentum to improve across European markets.

iv. Nordics

The Nordic markets represent an emerging growth opportunity within the Ex-U.S. portfolio, supported by multiple product launches during the year. While revenue realisation has been gradual due to longer market access and reimbursement timelines, we continue to strengthen our capabilities in the region. The Nordics remain an important part of the strategy to build a branded presence in regulated markets and drive long-term growth.

v. Africa and Francophone Africa

Africa remains a key growth engine for Strides, supported by strong demand fundamentals and an increasing focus on branded generics. The region is central to our Ex-U.S. strategy, where we are building a scalable, patient-centric and locally relevant pharmaceutical platform. Over the years, we have strengthened our presence across Africa through our branded business and targeted expansion initiatives. This growth has been aided by a strong regional supply chain and increasing brand recognition across key markets.

We are among the Top Five players in French West Africa, which includes 12 French speaking African countries. The branded business is built on a localised, patient-centric model that combines global quality standards with strong regional understanding, improving access and affordability of medicines. We are steadily expanding our portfolio from acute therapies into chronic care areas such as cardiovascular, diabetes, central nervous system and womens health.

We have further strengthened our Africa platform through the acquisition and in-licensing of select branded generic products from Sandoz across key Sub-Saharan African markets, including Western Africa, Ghana, Nigeria and Kenya, across key therapeutic areas such as anti-infectives, cardiovascular and dermatology, augmented by long-term manufacturing and supply arrangements, with expected synergies from wider market reach, deeper stakeholder engagement and cross-selling opportunities.

In South Africa, we delivered a strong performance, driven by expansion into differentiated and branded products, strengthened field force capabilities, improved governance and compliance focus and disciplined cost management, supported by strong participation in branded OTC and seasonal categories. These factors position the business for sustained growth through planned new launches.

Access Markets

In FY26, our Access Markets segment recorded a decline in revenue, largely reflecting the inherently uneven nature of this business. The Access Markets reported revenues of I 1,286 Mn, down 52% YoY. The segment, which comprises tender-based and institutional sales across low- and middle-income countries, is characterised by variability in order volumes and timing. The Access Markets business remains tactical, contributing to volume and advancing its broader objective of improving access to affordable medicines in underserved regions. The segment also helps offset manufacturing facility operating costs, thereby driving its efficient utilisation.

Innovation-Led R&D

We believe meaningful innovation is essential to delivering sustainable value for patients and partners. We continue to strengthen our portfolio with specialised, differentiated products that address unmet clinical needs and improve patient outcomes. Our state-of-the-art Global Formulation R&D Centre in Bengaluru serves as the core innovation hub, where ideas are translated into differentiated therapies using advanced pharmaceutical technologies. We further enhanced our capabilities during FY26 through investments in advanced technologies, scientific talent and development excellence, including a strategic partnership with Kenox.

We maintained a pipeline of multiple products across development, filing and review stages, aiding a steady flow of future approvals and launches. We have expanded our expertise across dosage forms and drug delivery platforms, including nasal sprays, transdermal patches, oral films, oral liquids and topicals. We continue to leverage disciplined portfolio selection, integrated regulatory planning and digital tools to improve execution efficiency and accelerate the journey from development to commercialisation. Strides remains committed to advancing science-led innovation and expanding access to affordable, high-quality healthcare across regulated and emerging markets.

Quality and Compliance

We believe quality, compliance and patient safety are fundamental to our long-term success. We maintain a globally integrated Quality Management System supported by harmonised processes, digital platforms, risk-based controls and continuous training to ensure consistent product quality, regulatory compliance and operational excellence across all locations. During FY26, we successfully completed multiple regulatory inspections across key global markets with no Official Action Indicated (OAI) outcomes, warning letters or significant enforcement actions, reflecting the strength and maturity of our quality framework. We also achieved strong pharmacovigilance performance, with 99.9% compliance in Individual Case Safety Report submissions, 97% quality compliance and 100% aggregate reporting compliance.

We continued to strengthen quality systems through digitalisation, automation and predictive analytics, improving visibility, traceability and risk management across operations.

We strengthened quality ownership through leadership engagement, employee empowerment and a culture of continuous improvement, while remaining focused on advancing digital quality capabilities, strengthening data integrity and maintaining the highest standards of compliance and patient safety across our global operations.

Information Technology (IT) Infrastructure

At Strides, we have continued to strengthen our IT and digital capabilities, which are key enablers of our global pharmaceutical operations. During FY26, our focus was on building a compliant, resilient, cloud-enabled and integrated digital ecosystem across the manufacturing, quality, supply chain, finance and laboratory functions. We advanced the migration of key applications to cloud platforms, modernised infrastructure and upgraded critical systems, including more than 60 manufacturing and quality applications, to improve reliability, compliance and scalability. We also strengthened cybersecurity through IT

OT segregation, enhanced access controls and advanced monitoring tools, ensuring strong governance and zero major audit observations during the year.

We are increasingly using data, automation and analytics to improve decision-making and operational efficiency. An enterprise data platform now integrates data from core systems, enabling near-real-time dashboards for better visibility and faster decision-making. We have also progressed towards paperless operations through electronic logbooks and large-scale adoption of electronic batch manufacturing records, improving traceability and compliance. Looking ahead, our priorities include scaling cloud adoption, expanding automation and AI-led analytics, strengthening integrated platforms such as SAP RISE, MES, TrackWise Digital and laboratory systems and further enhancing cybersecurity. These initiatives aim to improve speed, efficiency, compliance and overall digital maturity across the organisation.

Our People Capital

We believe that a strong, inclusive and supportive people culture is fundamental to sustainable success and long-term value creation. Our people are at the heart of our organisation and we are committed to creating a workplace where individuals from diverse backgrounds feel respected, empowered and encouraged to contribute their best. Our focus on diversity and inclusion extends beyond policy to the promotion of equal opportunities, collaboration and a genuine sense of belonging. As of March 31, 2026, we employed approximately 4,050 permanent employees globally, driven by around 2,300 contract workers across manufacturing locations, reflecting the scale and diversity of our operations.

We continued to invest in learning and capability building to develop a future-ready workforce equipped to meet evolving business needs. During FY26, we delivered approximately 150,000 learning hours, averaging around 45 learning hours per employee, with over 94% of employees participating in at least one learning intervention. We enabled employees to continuously enhance their skills and broaden their career opportunities through structured development programmes, mentorship, leadership initiatives, digital capability-building efforts and cross-functional exposure. We also strengthened our internal talent pipeline, with around 9% of positions filled through internal mobility and promotions.

We remained focused on creating a safe, healthy and engaging work environment that aids employees both professionally and personally. Our approach combines strong safety practices, wellness initiatives and open communication to promote employee well-being and encourage a positive workplace experience. During the year, we achieved an employee engagement score of 82.4%, reflecting strong levels of commitment, trust and alignment among employees across the organisation. We also continued to strengthen workforce diversity and inclusion, with women representing approximately 22% of our global workforce during the year. We remain committed to strengthening organisational resilience and building a high-performing, values-driven workforce that can support our long-term growth ambitions.

Risk Management

We recognise that effective risk management is essential to sustaining long-term growth, operational resilience and stakeholder confidence in an increasingly complex and uncertain business environment.

Accordingly, Enterprise Risk Management (ERM) and Business

Continuity Management (BCM) form integral components of our governance framework. Our ERM framework is embedded within strategic and operational decision-making processes and is continuously strengthened to reflect evolving business priorities and emerging global risks. It enables us to proactively identify, assess and mitigate a broad spectrum of risks, including financial, operational, geopolitical, compliance and ESG-related exposures. During FY26, we further enhanced our risk management capabilities by refining risk appetite thresholds, strengthening risk assessment methodologies, updating enterprise-wide risk registers and implementing Key Risk Indicators (KRIs) for critical risks.

Our proactive approach to risk management has helped us navigate geopolitical uncertainties, supply chain disruptions and other external challenges while maintaining business continuity and operational effectiveness. Cybersecurity remains a key focus area and we continue to strengthen our digital resilience through investments in advanced security infrastructure, including a dedicated Security Operations

Centre (SOC) that enables real-time monitoring and response.

Through these initiatives, we enhance our preparedness for emerging risks, safeguard stakeholder interests and support our ability to operate effectively in an increasingly interconnected global environment.

Internal Control Systems and Adequacy

At Strides, we have established a strong internal control environment, supported by advanced IT systems, that enables reliable operations and transparent financial reporting. Our framework focuses on protecting assets, ensuring regulatory compliance and improving overall organisational efficiency. We undertake periodic internal audits conducted by Grant Thornton to assess critical processes, identify areas for improvement and enhance controls. The Audit Committee reviews these findings and tracks the progress of corrective actions, ensuring effective oversight. This structured approach supports sound governance practices, strengthens accountability and promotes disciplined operations across the organisation.

Cautionary Statement

The Management Discussion and Analysis contains certain statements relating to the Companys objectives, plans, estimates, projections and expectations that may be regarded as forward-looking statements under applicable laws and regulations. These statements are based on assumptions, estimates and informed judgments made by the management.

Actual results, however, may differ materially from those expressed or implied due to various risks, uncertainties and other factors. These include changes in political, economic and technological conditions, fluctuations in demand, supply and pricing in domestic and international markets and changes in government policies, regulations and tax laws. The Companys performance may also be affected by factors such as the availability and cost of key inputs, competitive intensity, foreign exchange rate movements and other unforeseen developments beyond its control.