Themis Medicare Ltd Management Discussions

Cautionary Statement:

The statements in the "Management Discussion and Analysis Report" describe your Companys objectives, projections, and be "forward-looking statements" within the meaning of the applicable laws and regulations. The actual results could differ materially from those expressed or implied, depending upon the economic and climatic conditions, laws and other incidental factors.

Financial Overview: Business and Exports; (ii) Trade Business, The financial performance of the Company for the financial year ended 31^st March, 2026, is as follows: Total revenue from operations stood at Rs. 342.24 Crores for the year ended 31^st March, 2026, as against Rs. 405.51 Crores for the previous financial year. The total cost of raw materials consumed for the financial year ended 31 ^st March, 2026 was Rs. 57.30 Crores as against Rs. 76.31 Crores for the corresponding previous period.

The EBITDA (earnings before interest, depreciation and tax, excluding other income) was Rs. 0.39 Crores for the year ended 31^st March, 2026, as against Rs. 49.05 Crores for the previous fiscal year. The finance cost for the financial year ended 31^st March, 2026 was Rs. 10.69 Crores as against Rs. 10.04 Crores for the corresponding previous period. The PAT (profit after tax) was Rs. 1.14 Crores for the year ended 31^st March, 2026, as against Rs. 29.83 Crores for the last year.

Source: Themis Medicare Financial Results Themis Medicare FY25 Audited Investor Presentation Screener.in (Consolidated)

Resources and Liquidity:

The cash and cash equivalents at the end of 31^st March, 2026 were Rs. 4.54 Crores. The total debt-to-equity ratio of the Company stood at 0.25 as on 31^st March, 2026, as against 0.21 as on 31^st March, 2025. During FY26, to strengthen the balance sheet and provide growth capital, the Board approved a preferential issue of 45,95,795 convertible equity warrants at Rs. 102.87 per warrant to Vividhmargi Investments Private Limited (a promoter group entity), aggregating approximately Rs. 47.28 Crores. The proposal received over 99% shareholder approval through a postal ballot concluded on 27^th March, 2026, alongside the in-principle approval received from BSE Limited and the National Stock Exchange of India Limited.

Source: Postal Ballot Outcome dated 28-Mar-2026

Warrant Price Revision Announcement (11-Mar-2026)

Business category-wise performance:

The Company operates in one segment i.e. pharmaceuticals. The results of the Company under review reflect the impact of business transitions estimatesand expectations whichmay strategic re-orientation undertaken during the year. The Company is presently manufacturing formulations and Active Pharmaceutical Ingredients (APIs). The Companys business is structured across three growth pillars:

(i) Hospital Business, comprising the Critical Care Division, Intensive Care Division, Institution comprising the Pharma Division, Ortho Division and Gynaecology Division with a strategy of growing through key brand focus in each division; and (iii) API Business, comprising legacy molecules and a new-product pipeline supporting both the Hospital strategy through in-house consumption and standalone global commercial opportunities. During FY26, the Company has continued its strategic focus on increasing the Hospital Business contribution within the overall revenue mix, in line with its long-term aspiration of leadership in the Indian Hospital Business.

Risks & Concerns: talent pool of The business of the Company is exposed to certain risks. Risks, liabilities and losses are part and parcel of any industry and need to be tackled through well forecasted mitigation strategies and actions.

Unfavourable PolicyChanges methodologies (including In the past few years, the Government of India has continued to refine drug pricing and other laws impacting the operations of the Company. While the Union Budget 2026-27 has provided positive direction to the sector through the launch of the initiative. 10,000 Crore over BiopharmaSHAKTI five years) and Basic Customs Duty (BCD) exemption on 17 lifesaving drugs and medicines (with seven additional rare diseases also added to the list of duty-exempt categories for personal imports), adverse changes in government policies with respect to essential medicines and pricing with respect to the products may impact the margins of the Company. The combined PLI allocation for Bulk Drugs, Medical Devices and Pharmaceuticalsfor FY26-27 stands at Rs. 2,499.84 Crore, a 2.24% increase over FY25-26.

Credit Risk

To manage its credit exposure, Themis Medicare on Limited (Themis Medicare) has a credit policy with credit limit requests and approval procedures. The Company does its own researchof matters affecting counterpartys financial health and business prospects. Timely and rigorous process is followed with clients for payments as per schedule. The Company has suitably streamlined the process to develop a focused and aggressive receivables management system to ensure timely collections.

Interest Rate Risk

The Company has judiciously managed its debt-equity ratio. It has been using a mix of loans and internal cash accruals. Themis Medicare has well managed the working capital to maintain the overall interest cost at reasonable levels.

CompetitionRisk

Like in most other industries, growth opportunities lead to a rise in competition. We face different of competition, from domestic as well as companies. Themis Medicare has created strong differentiatorsin execution, quality and delivery, which make it resilient to competition. Furthermore, the Company continues to invest in R&D and its people to maintain a competitive spend maintained at approximately 3% of revenue 7 PhDs, 234 andastrong Masters and 1,371 other professionals (as on FY25). Stable and long-standing client relationships further help maintain a strong order book and insulate the Company from this risk. We also mitigate this risk with the quality of our infrastructure, our product portfolio and specialized formulation a vertically integrated manufacturing footprint with EU GMP certifications), coupled with prudent financial and human resources management and better control over costs.

Input Cost Risk

Our profitability and cost due to changes in the prices of raw materials, power and other input costs. The Companys in-house API capacity at Hyderabad (120 MT per annum) and Vapi (191 MT per annum) provides a meaningful natural hedge against API price volatility for its formulations business.

Regulatory & Operational Risk

The pharmaceutical sector is subject to evolving regulatory requirements at both domestic and international levels. The Company actively monitors compliance through robust internal processes and engages constructively with regulatory authorities any matters affecting its product lines. During FY26, the Company maintained close engagement with the relevant regulators on operational parts of its business and remains committed to full compliance.

Litigation & Tax Risk

On 25^th March, 2026, the Company received a tax demand notice of Rs. 13.32 Crore from the Office of the Assistant Commissioner of Income Tax, Vapi Circle, under Section 226(3) of the Income Tax Act, 1961, comprising income tax, penalty, interest and fine components across three assessment years. The Company is in the process of preferring an appeal before the higher appellate forums within the prescribed timelines. Management has stated that adequate factual and legal grounds exist to substantiate the Companys position and that the demand does not have any adverse impact on the financial position and operations of the Company.

Source: Tax demand notice disclosure (27-Mar-2026) Themis Medicare BSE corporate announcements

Opportunities

CLINICAL TRIALS MARKET

India is among the leaders in the clinical trial market.

Due to a genetically diverse population and availability of skilled doctors, India has the potential to attract huge investments to its clinical trial market. The Biopharma SHAKTI Union Budget 2026- 27 envisages the establishment of over 1,000 accredited India Clinical Trial sites.

HIGH-END DRUGS & BIOLOGICS

Due to increasing population and income levels, demand for high-end drugs and biologics is expected to rise. Globally, specialty in drugs are projected to account for roughly 50% of pharmaceutical spending and as much as 60% developed markets. Presentation

Growing demand could open up the market for production of biosimilars and biologics in India, supported by the Biopharma SHAKTI initiatives Rs10,000Croreoutlayoverfiveyears

HOSPITAL BUSINESS LEADERSHIP

The Indian hospital industry is positioned to grow at a healthy CAGR of 11 12% over the next 3 5 years, supported by Ayushman Bharat, rising lifestyle-disease prevalence, growing medical tourism and higher disposable incomes. resources and

In FY26, private hospitals are expected to add over 4,000 beds with investments of Rs. 11,500 Crore (US$ 1.34 billion). The Indian hospital market is projected to grow from US$ 193.4 billion in 2025 to US$ 364.6 billion by 2034 (CAGR 7.30%).

Themis is among the top three players in anesthesia products in India and is targeting a leadership position in the Hospital Business through its Critical Care and Intensive Care divisions, focusing on chain hospital contracts and presence in nursing homes with high-margin products.

PENETRATION IN RURAL & TIER 2/3 MARKETS

With approximately 70% of Indias population residing inruralareas,pharmacompanies have and the expansion of existing immense opportunities totapthis areas contribute market. to environment, necessitating

Healthcare demand in Tier-II and Tier-III cities projected to grow at 16 18% CAGR, higher than the 12 14% CAGR in metros.

CRAMS / CRDMO

Contract research and manufacturing services (CRAMS) is one of the fastest-growing segments in the pharmaceutical and biotechnology industry. Indias CRDMO industry is set to double to Rs. 1,21,282 Crore (US$ 14 billion) by 2028.

API SELF-RELIANCE & PLI BENEFITS

The PLI Schemes for Pharmaceuticals and Bulk Drugs have generated cumulative committed investment of Rs. 37,306 Crore through Year 3 (March 2025), substantially exceeding the Rs. 17,275 Crore six-year target. Themiss vertically-integrated API operations at Hyderabad and Vapi position the Company well to participate this self-reliance push.

Source: IBEF Pharmaceuticals Page IBEF Pharma Industry Analysis ICRA: Indian pharma sector to log 7-9% growth in FY26

Threats

1. Regulatory and Compliance Challenges Navigating the complex and evolving regulatory landscape continues significantchallenge . tobe Domestically, compliance with stringent guidelines set by authorities such as the Drug Controller General of India (DCGI) and the strengthened Central Drugs Standard Control Organisation (CDSCO), as proposed in Union Budget 2026-scientific cadre and 27(withadedicated specialists), demands substantial meticulous attention to detail. Internationally, aligning with the regulatory standards of agencies like the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA) is crucial for market access but poses considerable challenges. The Company maintains EU GMP certifications across its key facilities at Haridwar (Tablets & Gels) and Hyderabad (APIs) to mitigate this risk.

2. Competition Intensifying Market The pharmaceutical industry is experiencing heightened competition, both domestically and globally. The rise of generic drug manufacturers, particularly from countries like China and Brazil, has intensified price competition, challenging market share and profitability. Additionally, the rapid emergence of new competitors ones into new therapeutic a more competitive continuous innovation and strategic agility.

3. Supply Chain Vulnerabilities The heavy reliance on specific countries for Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs) exposes the supply chain to significant risks. While India is the worlds 3^rd largest API producer with an 8% global share, structural import dependence on certain intermediates remains. Government PLI schemesforKSMs/DIs/APIsareprogressively of reliable financial information, reducing this dependence, with cumulative investment of Rs. 4,570 Crore achieved by Year 3 against the Rs.3,938.5Croresix-yeartarget and information to stakeholders, production capacity created for 25 APIs/KSMs/DIs

4. Demand Uncertainties The pharmaceutical sector faces challenges in accurately forecasting demand due to factors like changing disease prevalence, healthcare policy shifts, and economic fluctuations. These uncertainties can lead to mismatches in supply and demand, affecting inventory management and financial performance, emphasizing the importance of agile and responsive supply-chain and product-portfolio strategies

5. Impact of International Trade Policies & Tariff

Risk Global trade policies significantly influence the pharmaceutical industry. In April 2025, the United States imposed a 26% reciprocal tariff Indian imports as part of broader trade measures. Although pharmaceutical products were initially exempted, the U.S. administration through 2025 26 has continued to signal further potential tariffs on imported pharmaceuticals, creating environment of uncertainty that affects strategic planning and market dynamics. Indias pharma exports have, however, demonstrated resilience: exports during April-February FY26 stood at US$ Warrants: 28.29 billion, reflecting 5.6% growth year-on-

6. U.S. Market Headwinds & Pricing Reform IQVIA Institutes 2026 forecast notes the U.S. pharmaceutical marketsnetspendingis expected equity warrants to step down to a 4 7% CAGR through 2030, from a 9.4% net CAGR over the past five years, as the first wave of Inflation Reduction price negotiations took effect alongside biosimilar uptakeagainstmajorbiologics approximately Rs. (with US$ 192 billion of LOE expected globally over the next five years). While Themis is not materially exposed to the U.S. market directly, this affects overall global pharma sentiment and could trigger increased generic competition emerging markets.

Source: Reuters: U.S. 26% reciprocal tariff on India (3-Apr-2025) IQVIA Institute 2026 Forecast: Global Medicine Use Business Standard: India Pharma exports $28 bn by Feb FY26 Union Budget 2026-27 Pharma Impact

Internal control system and adequacy:

The Company ensures the orderly and efficientconduct of its business, including adherence to Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation as required under the Companies Act, 2013. This involves the timely and accurate communication of financial and operational . both internal and external. The Company identifies and assesses the risks it faces and develops necessary strategies to mitigate or manage those risks The Statutory Auditors, while conducting the statutory audit, review and evaluate the internal controls and their observations are discussed with the Audit Committee of the Board. Other statutory requirements, especially in respect of pharmaceutical business, are also vigorously followed in order to . have better internal controls over the affairs of the Company. During FY26, the Company complied with SEBI Circular dated 30^th January, 2026 by opening a special one-year window from 5^th February, 2026 to 4^th February, 2027 for shareholders to re-lodge transfer requests and dematerialize physical shares, thereby strengthening shareholder servicing standards.

-Key Corporate Developments during FY26

During FY26, the Company undertook several strategic and corporate actions aimed at strengthening its capital structure, governance and shareholder servicing framework, including:

Preferential Issue of Convertible The year Board approved, and shareholders subsequently approved through postal ballot concluded on 27^th March, 2026 with over 99% approval, the issuance of 45,95,795 convertible to Vividhmargi Investments Private Limited (a promoter group entity) at a revised issue price of Act(IRA)Medicare Rs. 102.87 per warrant (representing the 90-day volume weighted average price as per SEBI ICDR from CY2026, Regulation 164), aggregating 47.28 Crore.

Promoter Group Consolidation (GTBL Inter-se Transfer): Shareholders also approved an inter-se transfer within the promoter group of equity shares of Gujarat Themis Biosyn Limited (GTBL) up to Rs. 130 Crore, consolidating Vividhmargi Investments stake in Themis Medicare to 26.52% post the related amalgamation.

Material Related-Party Transactions:Shareholders approved material related-party transactions with Themis Distributors Private Limited, Vividhmargi Investments Private Limited (post-merger) and Gujarat Themis Biosyn Limited as part of the same postal ballot.

Special Re-lodgement Window: Pursuant to SEBI Circular dated 30^th January, 2026, the Company opened a special one-year window from 5^th February, 2026 to 4^th February, 2027 for re-lodgement of transfer requests and dematerializationof physical shares.

Tax Demand Notice: reflecting growth of 5.6% over theOn 25^th March, 2026, the Company received a tax demand notice of Rs. 13.32 Crore from the Income Tax Department, Vapi Circle (under Section 226(3) of the Income Tax Act, 1961) covering AY 2017-18 (Rs. 8.71 Crore), AY 2018-19 (Rs. 4.17 Crore) and AY 2020-21 (Rs. 0.44 Crore), against which the Company intends to file an appeal within prescribed timelines. Management has stated that the demand does not have any adverse impact on the financial position and operations the Company.

Withdrawal of GTBL Merger Proposal: During FY26, the Company withdrew the previously proposed merger with Gujarat Themis Biosyn Limited, while continuing to pursue strategic synergies through related-party arrangements approved subsequently.

KMP Transition:Mr. Pradeep M. Chandan resigned as Company Secretary, Compliance Officer and Key Managerial Personnel effective 13th February, 2026, and the Company has initiated appropriate succession actions thereafter.

Board Strengthening: At the 55^th Annual General Meeting held on 12th September, 2025, shareholders approved the appointment of Ms. Neha Thakore as Independent Woman Director (DIN: 00893957) for a five-year term, and the appointment of M/s. SAV & Associates LLP as Secretarial Auditor for a period through FY30, further strengthening the Companys governance framework. The AGM also declared a dividend of Rs. 0.50 per equity share.

Indian Pharmaceutical Overview

The pharmaceutical industry in India is expected to reach US$ 130 billion by 2030. Indias drugs and pharmaceuticals FY25, marking strong year-on-year growth, and exports during April-February FY26 stood at US$ 28.29 billion, corresponding period of FY25 (per Pharmexcil). India is a major exporter of pharmaceuticals, with over 200 markets served by Indian pharma exports. India is the largest provider of generic medicines globally with a share of approximately 20% in global supply by volume, contributes around 60% of global vaccines, supplies over 50% of Africas requirement for generics, ~40% of generic demand in the US, and ~25% of all medicine ofin the UK. India ranks third globally in pharmaceutical production by volume and 11th in terms of value (per IBEF / DGCIS).

According to ICRAs outlook, the Indian pharmaceutical sector is projected to post revenue growth of 7 9% in FY26, supported by strong domestic demand and steady gains in Europe. The domestic market is expected to expand 8 10%, driven by sales force expansion, wider rural reach, and new product launches. Chronic therapies, new introductions, and price hikes continue to propel branded generics. European revenues are forecast to grow 10 12% in FY26, following an 18.9% jump in FY25, aided by new product approvals and stable pricing trends. India is one of the biggest suppliers of low-cost vaccines in the world. Because of the low price and high quality, Indian medicines are preferred worldwide, thereby rightly making the country the ‘Pharmacy of the World. India has been traditionally quite strong in the pharma sector, with a low cost of manufacturing (30% 35% lower than in the US and Europe), cost-efficient R&D (about 87% less than in developed markets), and cheap skilled labour. India hosts 118 pharmaceutical clusters spread across 19 states and union territories. Maharashtra leads with 40 pharma clusters, followed by Gujarat, Andhra Pradesh, Himachal Pradesh, and other key regions. FDI inflows into the Drugs & Pharmaceuticals April 2000 June 2025 totalled Rs. 2,10,940 Crore (US$ 24.62 billion), and Drugs and Pharmaceuticals Rs. 13,193 Crore in FDI during the first half of FY25-26 alone, signalling high international confidence. Scheme for Pharmaceuticals investment of Rs. 37,306 Crore by its third year (March 2025), with cumulative sales of approved products of Rs. 2,66,528 Crore (including exports of Rs. 1,70,807 Crore). Combined PLI investment across schemes has reached Rs. 40,890 Crore as of September 2025, having avoided imports worth Rs. 3,591 Crore in critical APIs and KSMs.

Government Initiatives

Biopharma SHAKTI Initiative (Union Budget 2026 scientific review cadre and

27): Strategy for Healthcare Advancement through Knowledge, Technology and Innovation (SHAKTI). Launched with an outlay of Rs. 10,000 Crore over five years to make India a global Biopharma manufacturing hub for biologics and biosimilars, including the establishment of three new National Institutes of Pharmaceutical Education Research (NIPERs) and the upgradation existing NIPERs, plus over 1,000 accredited Clinical of Indian generic drugs in the Trialsites.

Promotion of Research and Innovation in Pharma MedTech (PRIP) Scheme: With a financial outlay of Rs. 5,000 Crore including Rs. 4,250 Crore dedicated to R&D investments. As of November 2025, PRIP had sanctioned 111 research projects, published 46 research papers, and obtained 6 patents. Seven Centres of Excellence (CoEs) have been set up at the seven NIPERs, with total budgetary support of Rs. 700 Crore.

Production Linked Incentive (PLI) Scheme for Pharmaceuticals: By March 2025, the committed investment target of Rs. 17,275 Crore over the six-year scheme was substantially exceeded, with cumulative investment of Rs. 37,306 Crore by Year 3 and cumulativesales ofapprovedproducts of Rs.of the WHO Global Traditional 2,66,528 Crore (including exports of Rs. 1,70,807 Crore). The combined PLI allocation for Bulk Medical Devices and Pharmaceuticals for FY26-27 stands at Rs. 2,499.84 Crore (a 2.24% increase over FY25-26).

PLI Scheme for Bulk Drugs (KSMs/DIs/APIs): By March 2025, cumulative investment of Rs. 4,570 Crore was achieved against the six-year target of Rs. 3,938.5 Crore, with production capacity created for 25 APIs/KSMs/DIs. Three Bulk Drug Parks have been approved in Andhra Pradesh, Gujarat and Himachal Pradesh, with central assistance of Rs. 1,000 Crore each.

Customs Duty Exemptions (Union Budget 2026-27): Basic Customs Duty (BCD) has been exempted on 17 lifesaving drugs and medicines (particularly cancer treatments). In addition, seven more rare diseases have been added to the list of categories eligible for import duty exemption on drugs, medicines and food for special medical purposes imported for personal use, building on the 36 such drugs added in Union Budget 2024-25.

Strengthening of CDSCO: Union Budget 2026-27 proposed strengthening the Central Drugs Standard Control Organisation through a dedicated to enable global standards and approval timeframes.

India-UK Comprehensive Economic and Trade

Agreement (CETA): Signed in July 2025, CETA provides zero-duty market access to India for its pharmaceutical exports across 56 tariff lines, including a range of medical devices such as surgical instruments, diagnostic apparatus, ECG machines and X-ray apparatus, enhancing the competitiveness United Kingdom market.

Strengthening of Pharmaceutical Industry (SPI)

Scheme: Including sub-schemes API-CF (Common Facilities; with grants-in-aid of Rs. 139.33 Crore approved), AMD-CF (Medical Device Clusters), and PTUAS (Pharmaceuticals Technology Upgradation Assistance Scheme), continuing to support pharmaceutical MSME clusters with a focus on quality, productivity and sustainability.

AYUSH and Traditional Medicine Push:Budgetary allocation for AYUSH was raised to Rs. 3,992 Crore (US$ 465 million) in FY26 from Rs. 3,712 Crore in FY25. Union Budget 2026-27 announced setting up of three new All India Institutes of Ayurveda and the upgradation Medicine Centre at Jamnagar.

Outlook on Indian Pharmaceutical Sector

The pharmaceutical industry in India is a significant part of the nations foreign trade and offers lucrative potential for investors. Millions of people around the world receive affordable generic medications India, which also runs a sizable number of plants that adhere to Good Manufacturing Practices (GMP) standards set by the World Health Organization (WHO) and the United States Food and and Drug Administration (USFDA). Among nations that produce pharmaceuticals, India has long held the top spot Formulations ICRA forecasts Indian pharmaceutical sector revenue growth of 7 9% in FY26, with the domestic market expanding 8 10% driven by sales force expansion, wider rural reach, new product launches and chronic-therapy traction. According to Mordor Intelligence, the Indian pharmaceuticals market is valued at US$ 60.32 billion in 2026 and is projected to reach US$ 79.74 billion by 2031, growing at a CAGR of 5.74%, with oncology recording the quickest 8.22% CAGR through 2031, buoyed by biosimilar uptake and state cancer reimbursements. Pharmexcil targets US$ 65 billion in pharma exports by 2030, supported by policy prioritisation, market diversification traditional improved regulatory efficiency.

Going forward, better growth in domestic sales would also depend on the ability of companies to align their product portfolio towards therapies such as cardiovascular, anti-anti-cancers for chronic diseases, which are on the rise. The Indian Government has taken many steps to reduce costs and bring down healthcare expenses including the National Health Protection Scheme (Ayushman Bharat), Jan Aushadhi Kendras (cumulative sales of Suvidha sanitary napkins exceeded 100 crore as of January 2026), and the strengthening of CDSCO. The ageing population, the rise in chronic diseases, and other government programmes including expansion of inexpensive generic medications boosting the Indian pharmaceutical industry.

Source: IBEF Pharma Industry Page Mordor: India Pharmaceuticals Market 2026-2031 Pharmexcil: $65 bn export target by 2030

Active Pharmaceutical Ingredients (APIs)

Active Pharmaceutical Ingredient (or API) is a segment of the pharma industry, contributing to around 35% of the market. API is the biologically active component of a drug that causes an intended medical effect.

India is the 3^rd largest producer of API accounting for an 8% share of the Global API Industry. About 500+ different APIs are manufactured in India, and it contributes 57% of APIs to the prequalified list of the WHO.

Themis Medicares Hyderabad facility (Artemis Biotech division) has 120 MT per annum capacity with EU GMP certification, while the Vapi facility has 191 MT per annum capacity with GMP certification, jointly providing meaningful in-house API capability for both captive consumption external commercial sales.

India is the largest exporter of formulations in terms of volume, with 14% market share, and ranks 12th in terms of export value. Formulations and biologicals dominated Indias pharma exports with a 79.26% share in FY26 (April-July 2025), followed by drug intermediates and bulk drugs at 16.08%.

Double-digit growth in formulations exports is expected over the next five years.

Themis Medicares Haridwar facility manufactures formulations including 520 million tablets per annum, 9 million ointment tubes, 36 million ampoules, 12 million vials, and 6 million pre-filledsyringes, holding EU GMP Certification for Tablets & Gels.

Supply-side drivers of Indian pharmaceuticals

Following the introduction of product patents, several multinational companies are expected to launch patented drugs in India.

Growth in the number of lifestyle diseases in India could boost the sale of drugs in this segment.

The presence of a skilled workforce as well as high managerial and technical competence is a source of attraction for private players. Pharma companies have already increased spending in the country to tap rural markets and develop better infrastructure.

Promotion of Medical Devices Parks: The medical devices industry aims to grow from Rs. 1,02,564 Crore (US$ 12 billion) in 2023-24 to Rs. 4,27,350 Crore (US$ 50 billion) by 2030.

Approximately 120 drugs are expected to go off-patent over the next 10 years, with expected worldwide revenue between US$ 80 to 250 billion.

CRDMO industry expected to double to Rs. 1,21,282 Crore (US$ 14 billion) by 2028.

Demand drivers of Indian pharmaceuticals sector

Rising levels of education to increase acceptability of pharmaceuticals.

Patients to show greater propensity to self-medicate, boosting the OTC market. of biologics, injectables,

Acceptance of biologics and preventive medicines to rise.

Surge in medical tourism due to increased patient inflow from other countries.

New business models expected to penetrate Tier-2 and Tier-3 cities, where healthcare demand projected to grow at 16 18% CAGR.

Over 160,000 hospital beds expected to be added each year in the next decade. In FY26, private hospitals are expected to add over 4,000 beds with investments of Rs. 11,500 Crore (US$ 1.34 billion).

India is the largest provider of generic medicines globally with a share of approximately 20% in global supply by volume, making the country one of the largest providers of generic medicines globally.

Standalone health insurers are projected to achieve 20 21% growth in FY26, outpacing general insurance growth of 13%, expanding the insured base.

Patient pool expected to increase over 20% in the next 10 years (until 2030), mainly due to rise in population, new diseases and lifestyle changes.

Source: IBEF Healthcare Industry Page IBEF Pharma Industry Analysis

Outlook on Global Pharmaceutical Industry

Per the IQVIA Institutes 2026 forecast, the global pharmaceutical market is projected to grow at a 5 compound annual growth rate (CAGR) through 2030, reaching approximately US$ 2.6 trillion. The global pharmaceuticals market reached approximately 1.6 trillion in 2025. North America dominated the market with a 47.7% revenue share in 2025, with the United States projected to spend US$ 685 715 billion on medicines in 2026.

The U.S. markets net medicine spending is expected to step down to a 4 7% CAGR through 2030, from the exceptional five years, as the first wave of Inflation Reduction (IRA) drug price negotiations took effect from CY2026, alongside biosimilar uptake against major biologics. Despite these headwinds, global growth remains historically strong by any historical comparison. The Active Pharmaceutical Ingredients (API) continues to expand, with the Asia-Pacific region leading API production. investing in domestic API manufacturing to reduce supply-chain risks and enhance pharmaceutical self reliance. The hospitals segment dominates the global pharmaceutical market with approximately 42% share in 2025, due to high utilization oncology drugs, and critical-care medicines directly aligned with Themis Medicares strategic focus on Hospital Business and complex injectables. Specialty medicines advanced therapies often for complex or rare conditions including biologics, istargeted therapies, and personalized medicines are increasingly dominating expenditure, accounting for roughly 50% of global pharmaceutical spending in 2025 and as much as 60% in developed markets. With ongoing technological advancements, rising healthcare demands, and evolving market dynamics, the pharmaceutical industry is set for continued expansion, offering substantial investment opportunities while driving innovation in global healthcare.

Source: IQVIA: Global Medicine Use Trends 2026 Statista: Pharmaceuticals Worldwide DataM Intelligence: Global Pharmaceuticals Market

Indian & Global Hospital Sector

The Indian hospital industry is positioned to grow at a healthy CAGR of approximately 11 12% over the next 3 5 years, driven by increased government focus on healthcare delivery through schemes like Ayushman Bharat and the National Health Policy, rising prevalence of lifestyle-related and communicable diseases, growing medical tourism, and higher disposable incomes. In the Union Budget FY26, healthcare expenditure was increased by approximately 9.8% year-on-year to Rs. 99,858 Crore.

The Indian hospital market is projected to grow from US$ 193.4 billion in 2025 to US$ 364.6 billion by 2034, exhibitinga CAGR of 7.30% during 2026 2034. Average Revenue Per Occupied Bed (ARPOB) has grown at an 8 9% CAGR over the past five years and is expected to rise by 5 6% annually over the near term, supported by favourable case and payor mix. Occupancy levels have stabilized at ~62 64% despite capacity additions, supporting robust cash flows. Bed capacity for the listed hospital cohort is expected to increase by 35 40% over the next 3 5 years.

EBITDA margins for the Indian listed hospital sector have stabilized at 21 22%, while net leverage (net debt to EBITDA) has improved significantly from ~5.0x in FY19 to ~1.4x in FY25, supporting an ongoing CapEx upcycle. Standalone health insurers are projected to grow at 20 21% in FY26, outpacing general insurance growth of 13% and expanding the insured base. The global hospital services market is projected to grow at a CAGR of approximately 6.05% from 2024 -to 2033, reaching ~US$ 22.57 trillion by 2033. Rising cancer incidence globally, increasing knee replacement surgeries, and availability of next-generation are key drivers. The structural tailwinds in both the Indian and global hospital sectors are directly aligned with Themis Medicares strategic focus of becoming a Leader in Hospital Business in India through its Critical Care, Intensive Care, Institution and Exports

Source: Medical Buyer: India hospital sector 11-12% CAGR IMARC: India Hospital Market 2034 IBEF Healthcare Industry Page (FY26 4,000 beds)

Companys Strategy

The Company is focused primarily on becoming a Leader in the Hospital Business in India through four growing divisions Critical Care, Intensive Care, Institution numerous opportunities in this sector, especially with our strong line-up of products.

Themis Medicare Limited (TML) is one of the top three players in the country and offers a comprehensive range of anesthesia products, which is advantageous for the hospital business. We also have divisions in Critical Care and Intensive Care, which are key parts our long-term growth plan. The Indian hospital market is highly fragmented unlike Western markets where 3 4 players control 90% market share, providing meaningful headroom to build leadership through corporate hospitals and nursing homes. Besides the Hospital and API businesses, the Company is also investing in Trade and Co-marketing as well as developing new APIs for in-house consumption and standalone commercial production. pipeline remains robust, with R&D spend maintained at approximately 3% of revenue and a strong active pipeline including 31 formulations products development. Phase I geographic expansion (next 0 3 years) targets new RoW markets including CIS, Latin America and the GCC, while PhaseII(3 5years) targets including the Regulated Markets suchastheEuropeanUnion and of Mr. Pradeep M. Chandan as Company the United States. The Company has stated medium-term aspirations over the next three years and maintaining EBITDA margins above 25%, supported by the Hospital Business strategy and the new product pipeline. The Companys vertically integrated state-of-the-art manufacturing capabilities at three locations Haridwar (Formulations, EU GMP), Hyderabad (Synthetic APIs, EU GMP) and Vapi (Synthetic APIs, GMP) form a strong operational backbone, supported by an experienced talent pool of 7 PhDs, 234 Masters and 1,371 other professionals (as on FY25).

Source: Themis Medicare FY26 Investor Presentations/Postal Ballot Outcome 28-Mar-2026

Discussion on financial performance with respect to operational performance

The Net Profit after Tax for the financial year ended 31^st March, 2026 was Rs. 1.14 Crores, as against Rs. 29.83 Crores in FY25. The production capacity was utilized in line with order-book requirements during the year. Your Company has continued to invest in its strategic priorities of building leadership in the Hospital Business, expanding its API portfolio, and strengthening its R&D pipeline, even while undertaking necessary cost-rationalization, field-force productivity improvements and working-capital management initiatives during the year.

Material developments in Human Resources /

Industrial Relations front, including number of people employed

The core of the Human Resource philosophy at Themis Medicare Ltd. is empowering human resources towards achievement of company aspirations. Your Company has a diverse mix of youth and experience, which nurtures the business. The Companys talent pool comprises 7 PhDs, 234 Masters, and 1,371 other professionals (as on FY25), providing strong scientific, manufacturing, commercial and support capabilities across its three manufacturing facilities and corporate offices.

As on 31^st March, 2026, the total employee strength was 1,302. During FY26, the Company strengthened its Board with the appointment of Ms. Neha Thakore as Independent Woman Director (for a five-year term) and M/s. SAV & Associates LLP as Secretarial Auditor at the 55^th Annual General Meeting held on 12th September, 2025. The Company also undertook key managerial-personnel transitions resignation Secretary, Compliance Officer and Key Managerial Personnel effective 13th February, 2026, with appropriate succession actions initiated thereafter. Industrial relations across all manufacturing locations continued to be cordial during the year.

Source: Themis Medicare FY26 Investor Presentations / Themis Medicare Annual Report Page