Titan Biotech Ltd Management Discussions

During FY 2025-26, Titan Biotech Limited remained focused on strengthening its business operations, maintaining quality standards and pursuing sustainable growth opportunities. The Company continued to emphasize transparency, good corporate governance, regulatory compliance and value creation for its shareholders and other stakeholders.

ECONOMIC OVERVIEW

KEY HIGHLIGHTS

GLOBAL GROWTH OUTLOOK

Global growth is projected to moderate from 3.4% in 2025 to 3.1% in 2026, with a slight rebound to 3.2% in 2027.

ADVANCED ECONOMIES

Growth is expected to ease from 1.9% in 2025 to 1.8% in 2026 and 1.7% in 2027, reflecting moderate momentum.

EMERGING MARKET & DEVELOPING ECONOMIES

Stronger growth outlook compared to advanced economies, projected at 4.4% in 2025, 3.9% in 2026 and 4.2% in 2027.

The global economy is again disrupted, this time with the outbreak of war in the Middle East. Rising commodity prices, firmer inflation expectations, and tighter financial conditions are testing the recent resilience. Under the assumption of a limited conflict, global growth is projected at 3.1 percent in 2026 and 3.2 percent in 2027, below recent outcomes and well under prepandemic averages. Global inflation is expected to tick up in 2026 and resume its decline in 2027. Pressures are concentrated in emerging market and developing economies, especially commodity importers with preexisting vulnerabilities. Risks are decisively on the downside. A prolonged conflict, deeper geopolitical fragmentation, disappointment over AI-driven productivity, or renewed trade tensions could weaken growth and unsettle markets. High public debt and eroded policy buffers add vulnerability. Policies should foster adaptability, enhance credibility, and reinforce international cooperation.

Defense spending is rising amid intensifying geopolitical tensions. This chapter finds that large defense spending booms have become more frequent, especially in emerging market and developing economies. In a typical boom, defense outlays increase by about 2.7 percentage points of GDP over two-and-a-half years, with roughly two- thirds financed through deficit. While defense buildups can boost economic activity in the short term, they also temporarily increase inflation and create significant medium-term challenges. Fiscal deficits worsen by about 2.6 percentage points of GDP, public debt increases by about 7 percentage points within three years, and external balances deteriorate. Wartime booms are especially costly, with public debt jumping by about 14 percentage points and social spending falling. Defense spending multipliers are close to 1, on average, but vary widely depending on how spending is sustained, financed, and allocated and how much equipment is imported.

Armed conflicts generate profound macroeconomic consequences beyond their devastating human toll. This chapter leverages global data on post-World War II conflicts to assess the economic implications of wars. The analysis shows that conflicts generate large and persistent output losses in economies where fighting occurs?exceeding those from financial crises or severe natural disasters?alongside nonnegligible spillovers to other countries. These losses trigger acute macroeconomic trade-offs across monetary, fiscal, and external sectors and leave long-lasting scars. Economic recoveries are slow and uneven, depending critically on sustained peace. Even when peace holds, recoveries remain modest relative to wartime losses, led primarily by labor, while capital and productivity stay subdued. Early macroeconomic stabilization, debt restructuring, international support, and domestic reforms to rebuild institutions are essential. Comprehensive policy packages that jointly reduce uncertainty and rebuild capital stock generate positive externalities for stronger recovery.

Economic activity in advanced economies turned out to be better than expected last year, with a less pronounced drag from trade policy shifts. This year, growth is projected to slow to 1.5 percent, owing to the impact of higher energy prices and inflation, constrained energy supplies, and tighter monetary conditions following the outbreak of the conflict in the Middle East. Over 2027-28, energy supplies are anticipated to recover, inflation and uncertainty are expected to recede, and financial conditions are envisaged to ease, supporting a pickup in growth to an average of 1.7 percent.

In all, growth in the euro area is projected to slow to 0.8 percent in 2026, slightly weaker than January forecasts, as the negative effects of higher energy prices more than offset the positive effects of firmer activity at the turn of the year and lower U.S. tariffs on euro area exports. Elevated energy prices are expected to restrain consumption and investment, with the impact on the euro area amplified compared to some other advanced economies, reflecting its dependence on energy imports. The baseline outlook is also predicated on tighter euro area monetary conditions in 2026 amid rising inflation. tariffs and the continued strength in technologyrelated exports. The fiscal impulse from the announced measures is expected to be positive, albeit somewhat smaller compared to last year. Fiscal stimulus remains heavily focused on investment, with an incremental increase in support for household consumption.

Overall, growth in Emerging Market and Developing Economies (EMDEs) is projected to slow to 3.6 percent this year, reflecting the drag from the conflict and higher energy prices, tighter monetary conditions, heightened geopolitical strains, weaker global trade growth, and ongoing trade policy uncertainty in some regions (World Bank 2026b, 2026c). Over 2027-28, growth across EMDEs is expected to rebound to an average of 4.2 percent. At the aggregate level, the EMDE outlook continues to reflect developments in China, given its large weight in the group. As Chinas growth gradually moderates, this mechanically lowers medium-term growth for EMDEs as a whole. Nevertheless, the recovery over 2027-28 is expected to be broad-based, with growth accelerating in about 70 percent of EMDEs. Excluding China, growth in EMDEs is forecast to decelerate from 3.9 percent in 2025 to 3.2 percent in 2026, before strengthening to an average of 4.1 percent over 2027-28.

India continues to remain among the fastest-growing major economies in the world. According to the International Monetary Fund (IMF), Indias real GDP growth is projected at 6.4% in 2026 with a further improvement to 6.7% in 2027, reflecting the countrys strong economic fundamentals and sustained growth momentum.

The growth outlook is supported by resilient domestic demand, robust private consumption, continued expansion in the services sector, and sustained public investment in infrastructure. Additionally, improving business confidence, ongoing structural reforms, increasing digitalisation, and favourable demographic trends are expected to strengthen economic activity and enhance Indias medium-term growth prospects.

Despite persistent global uncertainties, including geopolitical tensions and evolving trade policies, the Indian economy remains well-positioned to sustain its growth trajectory and continue as one of the key drivers of global economic growth.

Indias biotechnology market size was valued at approximately US$ 37.1 billion with an expected compound annual growth rate (CAGR) of 13.09% during 2026-34, potentially reaching US$ 112.2 billion by 2034. Growth drivers include rising demand for personalized medicine, chronic disease treatments, and integration of IT with biotech for precision medicine.

BioIndustrial emerged as the largest segment of Indias BioEconomy, valued at US$ 90.20 billion, followed by BioPharma at US$ 64.50 billion. BioServices and BioAgri contributed US$ 26.00 billion and US$ 14.60 billion, respectively, reflecting a well-diversified sectoral landscape. Regionally, Tier I states such as Maharashtra, Karnataka and Telangana each exceeded the US$ 20 billion mark, driven by strong pharmaceutical manufacturing, industrial biotechnology capabilities, established research institutions and robust services ecosystems, collectively forming key hubs of the countrys life sciences industry.

The biologics market is projected to reach approximately US$ 14.6 billion in 2026, reflecting sustained double- digit growth. Complementing this, Indias stem cell therapy market is expected to expand at a CAGR of over 13% over the forecast period, supported by favourable government policies, increasing private sector investments, and strengthening research infrastructure.

The global nutraceuticals market continues to experience significant growth, driven by increasing consumer awareness regarding preventive healthcare, rising health consciousness, and the growing relationship between diet and overall well-being. The global nutraceuticals market size is estimated at USD 683.8 billion in 2026 and is projected to reach USD 1,151.5 billion by 2033, registering a CAGR of 7.7% during 2026-2033.

The Asia Pacific region is expected to remain the largest market, supported by increasing healthcare awareness, rising disposable incomes, changing lifestyles, and growing adoption of functional foods and dietary supplements.

The growth of the nutraceuticals industry is primarily attributed to the increasing preference for preventive healthcare solutions, ageing population, rising prevalence of lifestyle-related diseases, and growing demand for products supporting immunity, digestive health, cognitive wellness, joint health, and cardiovascular health.

Indias Biotechnology & BioEconomy

FY 2025-26 Industry Overview

Indias bioeconomy is a key pillar of economic growth and healthcare transformation.

Strong policy support, rising investments, advanced R&D and a vibrant innovation ecosystem are accelerating Indias emergence as a global biotechnology hub.

The microbiological culture media industry in India is a growing sector, Titan Biotech (TM Media) leading the way in manufacturing and supplying a wide range of products. The industry is driven by research and diagnostic needs in clinical, industrial, and academic settings, with companies offering both dehydrated and ready-to-use culture media.

Products and Services:

• Dehydrated Culture Media: A range of dehydrated media for various applications.

• Ready-to-Use Culture Media: Pre-prepared media in petri dishes or other formats for convenience and ease of use.

• Specialized Media: Media designed for specific microorganisms or applications, including chromogenic media.

• Raw Materials and Supplements: Basic ingredients like peptones, agars, and other supplements.

Industry Applications

• Clinical Microbiology: Used in hospitals and diagnostic labs for identifying pathogens.

• Industrial Microbiology: Used in industries like food, pharmaceuticals, and biotechnology.

• Research: Crucial for research in diverse fields like microbial diversity, taxonomy, and environmental biotechnology.

The global microbiology and bacterial culture media market continues to expand, driven by increasing demand for microbial diagnostics, stringent food and pharmaceutical safety requirements, technological advancements and growing R&D in biotechnology and pharmaceutical applications.

According to Precedence Research, the global market was valued at USD 6.03 billion in 2025 and is projected to reach USD 6.58 billion in 2026 and approximately USD 14.26 billion by 2035, registering a CAGR of 8.99% during 2026-2035. Asia Pacific is expected to be among the fastest-growing regions, supported by expanding healthcare, biotechnology, food-safety and research activities.

The industry outlook remains positive, with opportunities arising from increasing microbiological testing requirements across clinical diagnostics, pharmaceuticals, food and beverage, industrial microbiology and research. Titan Biotech Limited (TM Media) is positioned to benefit from these trends through its culture-media product portfolio, product development initiatives and focus on quality and domestic and international market expansion.

Source: Precedence Research, Microbiology and Bacterial Culture Media Market Size, Share and Trends 2026 to 2035, updated June 19, 2026.

The Company has only one segment and primarily engaged in the business of Biological Products. As the Companys business activity falls within a single primary business segment.

The outlook for the biotechnology, nutraceutical and microbiological culture media sector in India seems promising with strong government support for the countrys expanding economy and dedication to sustainability and innovation.

The nutraceutical and microbiological culture media industries face risks related to product contamination, lack of scientific evidence, and regulatory compliance. Contamination with microorganisms like E. coli or Salmonella can occur during production, while inadequate testing can lead to health hazards and brand damage. Lack of rigorous clinical studies for nutraceuticals also raises concerns about efficacy and safety.

Organizations can create sustainable value for its stakeholders by effectively managing the risks they are willing to take, be it at a strategic, financial or operational. Therefore, identifying, analyzing and promptly managing risks is critical from a Corporate Governance standpoint to enable an organization to attain its strategic objectives and protect the interest of its stakeholders.

RISK AND CONCERNS

Risks can be categorized as financial, customer concentration operational, strategic, regulatory/statutory, reputational, geo-political, catastrophic/pandemic.The major risk is frequent increase in price of few raw materials which can increase cost of product and can make few products unprofitable unless the increase is passed on to the user which may at times be difficult due to stiff competition. Further, delay in grant of approvals can result in delay in launching of key products in the market. In addition, significant competition in key products could also affect market share and profitability of the Company.

OPPORTUNITIES

The increase in the population is driving the demand of product across the world and as we all know a simple rule of economics, higher the population bigger the opportunity. The Global Biotech, nutraceutical and microbiological culture media Market is open and the opportunity to tap the global market is immense. The Company has tried to maintain its market share during 2025-2026 and is regularly encashing on all opportunities. Your Company has maintained its quality standards and always working towards improvements. New Technology Developments and New Product Developments do take place and updating in terms of technology and quality is the need of the hour.

THREATS

Stiff Competition both on domestic and International level poses some threat to the market share of company but since the market is quite large, the same is easily absorbed. Your Company has to abide by stringent regulations and specifications pertaining to its products in its domestic and export markets. The Company is also focused on expanding its product portfolio and improving operational efficiency to meet evolving customer requirements. Increasing competition from players with greater financial and marketing resources remains a key challenge. However, the Company aims to mitigate these risks through continuous product development, strong quality standards, efficient distribution and deeper customer relationships.

Your Company operates in a highly competitive market. Some of the key factors driving competition in the industry include product functionality and quality, pricing, customer service, product innovation and effectiveness of marketing and distribution channels. To survive and succeed in a stiff competitive environment, it is very important for the Company to distinguish its product and service offerings through a clear and unique value proposition. Some of the competitors of the Company have greater financial, marketing and other resources, which enables them to pursue more vigorous marketing and expansion activities. Intense competition may have a material adverse impact on the Companys operations.

Titan Biotech Limited has well established internal control systems for operations of the Company. All the departments of the company including the accounts & finance department has experienced and trained staff capable of implementing and monitoring internal control systems. The internal control system of the Company is adequate to safeguard the Companys assets and to ensure that the transactions are properly recorded. Further, the internal control system ensures that proper record is being kept and all statutory and other laws, rules and regulations are being complied with.

The Company has appointed an independent firm of chartered accountants to monitor the internal audit of its activities, based on an internal audit plan, which is reviewed each year in consultation with the statutory auditors and approved by the audit committee. The Company has identified inherent reporting risks for major element in the financial statements and established controls to prevent the same. These risks and the prevention controls are revisited periodically considering the changes in business, IT systems, regulations and internal policies, based on evaluations of the audit, as per Section 177 of the Companies Act 2013 and Regulation 18 of SEBI Regulations, 2015, the Audit Committee has concluded that as March 31, 2026, internal financial controls were adequate and operating effectively.

Financial & Operational performance

The Company remains committed to maintaining a robust control environment through effective segregation of duties, regular monitoring, technology-enabled controls and compliance with applicable laws and regulations. These measures contribute to the overall efficiency and reliability of the Companys operations.

• Revenue

The Companys revenue increased from Rs. 15,645.08 lakhs in the previous financial year to Rs. 20,619.03 lakhs during the current financial year, reflecting growth in business operations despite challenges such as global economic slowdown, intense market competition, rising input costs, and geopolitical uncertainties.

• Selling and Distribution Expenses

Selling and distribution expenses increased marginally by approximately 3% to Rs. 1,152.78 lakh during FY 2025-26, compared with Rs. 1,119.30 lakh in FY 2024-25. The increase was primarily attributable to a 36.88% rise in Cartage & Freight Outward expenses, partly offset by lower expenditure on business promotion, travelling, advertisement and commission.

• Tax Expenses

Our income taxes increased by Rs. 391.82 Lacs from Rs. 596.92 Lacs for the year ended March 31, 2025 to Rs. 988.74 Lacs for the year ended March 31, 2026.

• Finance Cost

The Companys finance cost increased from 80.18 Lakhs for the year ended March 31, 2025 to Rs. 91.39 Lakhs for the year ended March 31, 2026. The increase in finance cost was primarily attributable to higher borrowings and/ or increased interest costs during the year.

• Employee benefits expenses

Employee benefits expenses account for 15.70% of our total revenue and form a major part of our total expenses. The expenses include fixed as well as variable components of employees salaries, along with contribution to provident fund and gratuity. Share based payments to employees and staff welfare expenses are not a part of that cost. Break-up of this head of expenses compared to the previous years numbers, is given below:

	FY 2025-26		FY 2024-25		Increase/ (Decrease) %
Particulars	Rs. (In Lacs)	% of total revenue	Rs. (In Lacs)	% of total revenue
Salary, Wages & Bonus	2907.36	14.10%	2398.57	15.33%	(1.23%)
Contribution to Provident & ESI Funds	107.23	0.52%	98.76	0.63%	(0.11%)
Gratuity Fund and Leave Expenses	123.54	0.60%	74.67	0.47%	0.13%
Staff Welfare Expenses	98.07	0.48%	65.96	0.41%	0.07%

Total employee benefits expenses has increased by 22.68%. As a percentage of revenue, employee benefits expenses increased to 15.70% in FY26 from 16.86% in FY25. Increase in salaries and wages and contribution to provident and other funds, is in line with increase in revenue and headcount, taking into account cost optimization and pyramid rebalancing measures.

Liquidity and Capital Resoutrces/movement of Money (Cash)

The data given in Table A, Cash generated from operating activities in FY 2026 was Rs. 3,896.91 Lacs. Investing activities net outflow amounting to Rs. (3,441.49) Lacs in FY 2026 includes net investment in property, plant, equipment and intangibles to build capacity and capabilities for future business growth. Cash inflow from financing activities was Rs. 34.39 Lakhs. Closing cash and cash equivalents as on March 31, 2026 was Rs. 147.77 Lakhs.

Standalone Statement of Cash Flows

(Rs. In Lacs)

Particulars	FY 2025-26	FY 2024-25
Profit before Tax	3,817.45	2,436.73
Cash Flows from:
i. Operating Activities	3,896.91	2,611.28
ii. Investing Activities	(3,441.49)	(987.47)
iii. Financing Activities	34.39	(796.08)
Closing Cash and Cash Equivalents	147.77	512.79

Material Development In Human Resources

There has not been any major development on the human resources front. The industrial relation continues to be cordial during the year 2025-2026. The number of permanent employees on the rolls of Company as on 31st March, 2026 was 527. Total Headcount was increased by 15.09% during the year.

Significant Key Financial Ratios

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 therefore-

Particulars	Standalone			Consolidated
	2025-26	2024-25	Change %	2025-26	2024-25	Change %
Current Ratio	3.28	4.48	-26.79%	3.28	4.48	-26.79%
Debt-equity Ratio	0.03	0.02	50.00%	0.03	0.02	50.00%
Debt service coverage ratio (in times)	24.05	17.97	33.83%	24.05	17.97	33.83%
Return on equity (%)	17.32%	10.70%	6.62%	17.84%	15.28%	2.56%
Inventory Turnover (in times)AA	2.21	1.85	19.46 %	2.21	1.85	0.36%
Trade receivables turnover ratio	9.90	8.35	18.56%	9.90	8.35	18.56%
Trade payables turnover ratio	17.26	25.52	-32.37%	17.26	25.52	-32.37%
Net Capital turnover ratio	3.41	2.73	24.91%	3.41	2.73	24.91%
Net profit ratio (in %)	13.31%	11.68%	1.63%	13.31%	11.68%	1.63%
Return on capital employed (%)	24.09%	17.68%	6.41%	22.76%	17.18%	5.58%
Return on investment (in %)	3.64%	7.04%	-3.40%	3.64%	7.04%	-3.40%

The reasons for the variations in the aforesaid ratios have been duly disclosed in Note No. 45 to the Standalone Financial Statements on Page No. 150 and Note No. 45 to the Consolidated Financial Statements on Page No. 196 of this Annual Report, respectively.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ substantially or materially from those expressed or implied inter-lia due to risk and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and abroad, volatility in interest rates and in the securities market,

New regulations and Government policies that may impact the Companys businesses as well as the ability to implement its strategies. Important factors that would influence the Companys operations include cost of raw materials, tax laws, interest and power cost and economic developments and such other factors within the country and the international economic and financial developments. The above discussion and analysis should be read in conjunction with the Companys financial statements included in this report and the notes thereto. Investors are also requested to note that this discussion is based on the consolidated financial results of the Company.

For Titan Biotech Limited
Suresh Chand Singla	Naresh Kumar Singla
Managing Director	Managing Director
DIN:00027706	DIN:00027448
Date: September 3, 2026
Place: Delhi