Unichem Laboratories Ltd Management Discussions

Annexure A to Directors Report

Economy

The new fiscal year has begun on an anxious note for the global economy. The recent trade tariff-related measures have exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation. Some of the concerns on trade frictions are coming true, unsettling the global community.

There are many possible implications for growth. First and foremost, uncertainty itself dampens growth by affecting investment and spending decisions of businesses and households. Second, the dent on global growth due to trade frictions will impede overall growth. Third, higher tariffs shall have a negative impact on net exports. There are, however, several known unknowns - the impact of relative tariffs, the elasticities of export and import demand; and the policy measures adopted by the Government including the proposed Foreign Trade Agreement with the USA, to name a few. These make the quantification of the impact difficult.

A sudden escalation in global trade tensions marked a defining moment with conflict seen across our western border at the beginning of the next fiscal year and sweeping tariffs being imposed on several countries only to pause had inspired IMF and WTO projections to reduce global growth and trade in 2025-26. Despite global issues like persistent geopolitical tensions, monetary shifts and regional economic divergences, India remains resilient and retains its title as the fastest-growing major economy.

Yet, uncertainties persist, including global volatility, precarious trade policies, intensifying counter measures by other countries, and rising input cost pressures. Indian markets have potentially slowed down due to such global uncertainties, even as it remains the fastest-growing large economy. However, as global supply chain seeks to diversify, India stands to gain as a stable destination for manufacturing and business.

Global Pharma market

India, known as pharmacy of the world, makes cheaper generic versions of complex innovative drugs in its massive factory clusters and exports them to over 200 countries, of which the U.S. is its biggest market. The tariff move is expected to be inflationary to the U.S. as they dont have the requisite manufacturing infrastructure in-house to replace the scale of supply that India does.

Indias pharmaceutical industry is poised for significant growth, with its share in the global market expected to rise to 5% by 2030, according to a report by Bain & Company. The Indian pharma market, currently valued at around $ 55 billion, is projected to expand 2.2 to 2.4 times over the next six years, reaching $ 120 billion to $ 130 billion.

The global pharmaceutical industry is currently worth about $ 1.6 trillion, with India contributing around 3% to 3.5%. The anticipated growth will solidify Indias position as a key player in the global pharma landscape. A unique aspect of Indias pharma industry is that its export market is as large as its domestic market. Indian pharma exports play a crucial role in the countrys economy, making up 6% of total merchandise exports by value.

In 2023, pharmaceutical exports reached $27 billion, up from $19 billion in 2018, growing at an annual rate of 8%. More than 70% of these exports are formulations, while bulk drugs and drug intermediates account for around 20%. Other export categories include vaccines, biosimilars, and innovative products.

Unichem now part of the Ipca Group has a wide-ranging product portfolio, and in-house state of the art R&D facility, with decades of experience and understanding of the global markets, should enable it to capture this expected growth to enhance its market leadership.

Generics & Generic Formulation

Indian pharmaceuticals industry is known for its low-cost generic medicines globally. India continues to play a crucial role in the generic drug supply chain, supplying key starting materials (KSMs), Active Pharmaceutical Ingredients (APIs), and finished formulations. Indian firms account for around 40-45% of the total generic drug volume in the US market. The market for generic business will grow as the government across the globe is expected to invest more in the health sector to reduce their budgets by showing more inclination towards generic formulations.

The Indian pharmaceutical industry has gained global recognition as a leading hub for cost-effective generic medicine manufacturing. India ranks 3rd globally in pharmaceutical production by volume and 14th by value, contributing approximately 20% of global generic medicine exports. Notably, India hosts the highest number of USFDA-compliant pharmaceutical manufacturing facilities outside the United States.

The Company is mainly in international business and the products manufactured are exported to many developed and developing countries. Despite the uncertainties surrounding US trade policies, Indian pharma manufacturers are expected to strengthen their global presence through continued innovation, technological advancements, and production capacity expansion. The U.S. generics market remained dynamic, shaped by persistent pricing pressures and product shortages across multiple therapeutic areas continues to remain important market for your Company. In Brazil, a market witnessing rapid generics uptake and regulatory streamlining, Unichem is targeting deeper market penetration via strategic alliances for its product offerings.

With a relentless focus on regulatory compliance, cost competitiveness, and portfolio expansion, Unichem is well-positioned to drive sustainable growth in these high-potential markets in the years ahead.

Active Pharmaceutical Ingredients (API) market

The API market in India is estimated to grow to $ 30 billion by 2028, constituting about 35% of the pharma market.

One of the biggest challenges which thwarts the rising Indian pharmaceutical industry ambitions is its high dependence on Chinese imports for API and KSMs. India imported APIs and bulk drugs worth 377 billion in FY 2024 and in case of API, share of China accounted for 70%.

As entities attempt to mitigate the risk of dependency on a single territory, countries such as India are being preferred under the China+1 policy. The industry is suggesting to, incentivising R&D through success-based fee support that can promote research into cost-efficient processes, green manufacturing and innovative drug development which will not only strengthen Indias manufacturing base but also reduce dependency on imports.

Unichem offers a broad portfolio of APIs across various therapeutic areas. With the strong technical team to handle the regulatory queries and adhering the dynamic global API regulations, Unichem is well placed to benefit from this rising trend of outsourcing of APIs with its focus on quality, reliability, and excellence. Ipca Laboratories Limited, holding company of Unichem is one of the leading API manufacturers, with its proven cost competitiveness will further enhance its cost effectiveness and product portfolio. Your Company will continue to build on its position in the global API market and strengthen its expertise in manufacture of intermediates and APIs backed by investment in its R&D facilities.

Manufacturing Operations

Unichem has established a robust network of state-of-the-art manufacturing facilities across India. The Company continually upgrades its systems and processes to comply with the stringent requirements of all major global regulatory authorities. Through vertically integrated operations across key markets and products, Unichem ensures the delivery of high-quality, cost-effective, and timely finished formulations to international markets.

Company has continued to invest in further optimizing its footprint and in creating competitive and resilient value chains. These achievements reflect Unichems relentless focus on compliance, cost optimization, capacity expansion, and process improvements. As a result, the Companys formulation output grew significantly from 9.98 billion tablets/capsules in FY 2024 to 15.17 billion in FY 2025, marking a 52% increase.

To drive operational excellence, several strategic initiatives were implemented over the past year:

Automation enhancements in granulation, blending, and compression, coating, and packing processes.

Deployment of a SCADA system to align batch alarms and audit trails with USFDA compliance requirements.

Transition to eco-friendly and cost-efficient fuels for steam generation, replacing conventional energy sources.

Adoption of innovative and sustainable practices to reduce hazardous waste generation.

Strengthening of planning processes and agile operations to enhance risk management and ensure consistent product quality.

Unichems manufacturing footprint includes three finished formulation plants and three API facilities. During the reporting year, two formulation facilities underwent USFDA inspections and received Establishment Inspection Reports (EIRs) with Voluntary Action Indicated (VAI) status, reaffirming compliance with regulatory expectations. Additionally, several facilities completed EU-GMP audits and successfully received EU-GMP certifications.

To strengthen its competitiveness and secure the full value chain, Company is investing in increased access to raw material as well as in accelerating its manufacturing and R&D processes. During the year expansion of Pithampur plant was carried out which will enhance its installed capacity by 81%.

Your Company remains focused on improving quality across all aspects of its operations, with initiatives for continuous improvement, reducing manual interventions through automated systems to constantly upgrade the culture of quality. Companys drive for quality, reliability and excellence will ensure that it continues to not just meet but surpass the stringent cGMP (Current Good Manufacturing Practice) standards required for doing business in the regulated markets.

Opportunities & Threats

The United States continues to be the largest and most competitive generics market globally, accounting for approximately 40% of global generics sales. The market is characterized by intense pricing pressure, high regulatory scrutiny, and frequent product shortages, especially in complex and niche therapeutic segments. However, it also presents lucrative opportunities for companies with strong operational execution, regulatory agility, and a broad pipeline of ANDAs. Unichem has maintained a disciplined focus on expanding its portfolio in the U.S. market, with an emphasis on therapeutic areas like CNS, Cardiovascular, Anti-infectives, and Gastrointestinal.

Brazil remains one of Latin Americas largest pharmaceutical markets and has seen sustained growth in generics adoption due to healthcare reforms, increased insurance coverage, and government support for cost-effective treatments. According to recent market insights, the generics market in Brazil is growing at a CAGR of over 9%, outpacing the overall pharma sector. Regulatory improvements and a growing preference for local partnerships have made it an attractive destination for Indian generic manufacturers. By offering a consistent supply of high-quality products at competitive prices, Unichem has strengthened its brand equity in the Brazilian market. The company continues to build capabilities to navigate evolving ANVISA regulations and expand its commercial footprint.

The Chinese API industry, which accounts for around 40% of the global requirement is supported by higher economies of scale, subsidies, and fiscal incentives offered by the Chinese Government, along with lower power, fuel, and borrowing costs. India is now trying to promote domestic production of raw material with a Production-Linked Incentive (PLI) scheme. However, the overall lowering of dependence for APIs will ultimately depend on the ramp-up in production and price competitiveness of the Indian manufacturers.

Unichem remains committed to diversifying its product mix to include complex generics and value-added formulations by enhancing its backward integration capabilities to improve cost competitiveness and supply assurance. The Company is constantly investing in regulatory science and dossier development to accelerate filings and approvals in regulated markets to capture the potential growth.

As the global demand for generics rises, particularly in cost-conscious healthcare systems, Unichem is well-positioned to capture incremental market share in both developed and emerging economies. Companys integrated capabilities across R&D, manufacturing, and quality assurance provide a strong foundation for sustainable growth in the United States, Brazil, and beyond.

Research and Development ("R&D")

Unichem is a research-oriented pharmaceutical company dedicated to innovation and quality. Each manufacturing site is closely integrated with its robust R&D infrastructure. This synergy ensures that new products are efficiently scaled up from development to commercial production, maintaining consistency and quality across all batches. Over the years, Unichem has made substantial investments in R&D to establish cutting-edge facilities, which is evident from Unichems vast portfolio of quality medication across Therapeutic categories in the International Regulated Markets. Bolstered by a team of over 300 highly skilled and trained scientists with exemplary credentials, the companys R&D Centre is equipped with state-of-the-art pharmaceutical research technology.

R&D is a crucial aspect of the pharmaceutical industry with an aim to address unmet medical needs and improve patient outcomes. Unichem has a full-fledged R&D division located at Goa, continuously engaged in research on new products catering to the Pharma Market requirements with a patient centric focus on innovation and quality. The companys core strength lies in its ability to excel in developing generics and technologically complex products through innovation in formulations and analytical development.

The Formulations R&D has State-of-the-Art facilities to undertake formulation development of tablets, capsules, liquid orals, creams ointments and, a separate facility for injectable and pre-formulation laboratories to carry out drug-excipient compatibility studies and physical characterisation of API. Plant simulation experiments designed by Process Engineers help to anticipate and address scale up issues that the laboratory developed processes may face in the plant during technology transfer exercise. The sustained efforts of R&D over the years resulted into 84 ANDA (71 approved) filings and 79 USDMFs, 30 CEPs, 3 JDMFs, 5 China DMFs among others across various markets and therapeutic categories. During the year under review, Unichem had filed 2 ANDAs, 1 USDMF, 3 CEPs, 2 CADIFA and initiated new API development for API marketing purposes.

R&D efforts are strategically focused on cost rationalisation, reverse engineering and capacity enhancement for filing commercial ANDAs & DMFs in existing markets as well as for new markets. The sustained efforts of R&D resulted in 4 ANDA approvals, 4 launches in the largest generic market of USA and 2 launches in South Africa during the year. The Company has submitted 2 ANDAs and 11 dossiers in emerging markets and it expects an increase in the number of filings and approvals in time to come.

Financial Performance

Consolidated Operations

Your company achieved remarkable growth journey in FY 2025 with record revenue and profitability in spite a challenging global macroeconomic environment. The revenue from operations was 2,110.97 crores during the FY 2025 as against 1,785.11 crores in the previous year, registering a growth of 18.3%. The Profit after tax was at 137.52 crores in FY 2025 as compared to loss of 93.76 crores in the previous year. The gross profit margin at consolidated level for the FY 2025 was higher by 0.6% over the previous year mainly due to yield improvements and product mix. Consequently, the earnings per share for FY 2025 stood at 19.53 per share as compared to (13.32) per share in FY 2024.

During the year, Company continued to strengthen its strategic presence in key international markets, particularly in the United States. The growth in revenue is led by US, Contract Manufacturing Operations ("CMO"), Acasia and API business. Exports constitute around 98.02% of sales revenue in which Unichem USA continues to dominate with a contribution of 64% of the total sales revenue.

Unichem recorded a robust 22.2% year-on-year growth in its U.S. generics business. The strong performance was driven by timely commercialization of newly approved ANDAs, operational ramp-up at the manufacturing facilities, streamlining its logistics and customer service and superior supply reliability.

Standalone Operations

Unichem successfully navigated the challenging market conditions that prevailed throughout the FY 2025 by registering a growth of 20.4% in Revenue from Operations at 1,735.70 crores as against 1,442.16 crores in the previous year. As a results, operating cash flow from operations has increased from negative 41.57 crores to positive 72.29 crores over previous financial year, supported by margin resilience and working capital reduction.

Your Companys API units are used mainly for captive purposes in its formulation plants providing significant benefits over quality, costs, supply chains and reduced reliance on external suppliers. We continue to focus on cost optimization, vendor consolidation and regulatory spending, resulting into robust profitability and cash flows without compromising on the innovation and infrastructure for long-term value creation.

Capital expenditure incurred during the FY 2025 was 126.31 crores.

US continues to remain prominent geographical area for your Company business and has been a key growth driver. The year witnessed significant growth in US and CMO business as compared to the previous financial year. The various cost reduction initiative steps undertaken for manufacturing including energy conservation, solvent recovery improvement and reduction in overhead cost had contributed to significant profitable growth. Your Company now being part of Ipca group is expected to derive immense benefit from its capability & capacities, distribution network and product offerings going forward, which will further contribute to Companys growth.

Break-up of sales on Standalone basis is as under:

( in crores)

Particulars	FY 2025			FY 2024
	Domestic	Exports	Total	Growth (%)	Domestic	Exports	Total
Formulations	2.58	1,525.05	1,527.63	22.20	0.89	1,249.48	1,250.37
APIs & Intermediates	38.16	123.01	161.17	13.30	40.08	102.17	142.25
Total Sales	40.74	1,648.06	1,688.80	21.30	40.97	1,351.65	1,392.62
Growth (%)	(0.60)	21.90	21.30		27.20	35.40	35.10

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 details explanations is being provided under note number 55 of the standalone financial statements.

Risk & Concern

Risk assessment in pharma plays a vital role in ensuring safety and quality. The pharmaceutical industry faces numerous business risks, including regulatory compliance, supply chain disruptions and counterfeiting. Additionally, companies are exposed to product recall and liability wherein reputation stake is very high. Ensuring patient safety and maintaining high quality standards are also crucial, requiring careful risk assessment and management throughout the entire drug development and manufacturing process.

Indian pharma sector is fraught with many challenges including geopolitical tensions, supply chain issues, pricing pressures and increased scrutiny by global regulatory agencies, among others that needs to be overcome.

With over-dependence on supplies of basic materials from the Chinese, supplies of essential medicines posed a serious challenge and Pharma being a regulated sector, one cannot just overnight decide to shift the vendor ecosystem or develop an alternate vendor ecosystem. There are a lot of filings, approvals, regulatory barriers to cross before an alternate partner comes on board.

The key elements of your Companys risk management framework have been captured in the risk management policy, which details the process for identifying, escalating, prioritizing, mitigating and monitoring key risk events and action plans. The assessment of the risks covers areas of Operations and Systems, Financial, Sustainability, Legal and Regulatory. IT system including cyber security risks. There are appropriate assurance and monitoring mechanisms in place to monitor the effectiveness of the risk management framework including the mitigation plans identified by the management for key risks.

Your Companys risk assessment framework follows scientific data, regulatory requirements, risk evaluations to identify weaknesses, address them early and proper documentation strengthens compliance and simplifies regulatory audits. Risk mitigation through multi-site validation of critical products, provide operational flexibility and the ability to respond to market disruptions.

During the year, mitigation efforts continued further by having an adequate insurance coverage against various risks including cyber security and any hacker attacks.

Outlook

It is expected that the geo-political tension in many regions across the globe is going to hit the growth in near term but for India, its impact is expected to be limited, with various estimates suggesting a decline of 0.2 0.3 point basis in FY 2026 GDP growth. The ongoing bilateral engagements with many countries could help cushion spillovers, however, markets remain cautious and lingering uncertainty likely to weigh on global economic momentum, investor sentiment, and policymaking.

As we step into FY2026, the global economy continues to navigate an uncertain equilibrium, trade disruptions and geopolitical realignments. Persistent macroeconomic fragilities, alongside the accelerating race for technological dominance, are reshaping global investment flows and supply chains. In this evolving landscape, Indias stable macro fundamentals, initiatives to strengthen digital public infrastructure, supply-chain capabilities, and financial resilience will enhance its attractiveness. As economic, technological, and strategic considerations increasingly converge, Indias ability to build trusted, scalable systems and maintain policy agility will be pivotal in shaping its role in an emerging, multipolar world.

From a nascent sector generating just $1 billion in revenue in the early 1990s to achieving a staggering $50 billion in just 34 years, Indias pharmaceutical industry has made remarkable progress. Indias pharma exports are expected to double to $ 65 billion by 2030 and $ 350 billion in value terms by 2047. While India is the largest supplier of generic drugs globally accounting for one in five generic drugs sold worldwide, the nation ranks 11th in terms of export value. The transition from volume-based to value-led growth is essential for Indian pharma to secure its rightful place in the global market. Innovation, including the shift towards specialty generics, biosimilars, and novel products, will be the key to Indias pharmaceutical future, with the right focus on quality, regulation, talent, and entrepreneurial innovation, India can rise to be among the top five pharma exporters globally by 2047.

Indias Contract Development and Manufacturing Organization (CDMO) market is also poised for exponential growth, expected to expand from $ 7 billion to $ 14 billion by 2028, capturing 4-5% of the global market as global pharmaceutical companies look to diversify supply chains beyond China, according to BCG report.

Amid tariff announcements and policy uncertainty in general, global goods trade may shrink by up to 1.5% in calendar year 2025 as per estimate by World Trade Organisation (WTO). The global economy is going through a period of exceptional uncertainties. The difficulty to extract signal from a noisy and uncertain environment poses challenges for businesses. Persistent trade distortions and geoeconomic fragmentation are likely to exert ongoing pressure on global trade levels. Recent attacks in the Red Sea, a critical route for 11% of global trade, and the ongoing conflict in Ukraine, pose new threats to global economic recovery. These events increase the risk of fresh adverse supply shocks, potentially leading to spikes in energy and transportation costs. The IMD in its latest World Economic Outlook had forecast that the US economy will witness a sharp slowdown on account of traffic trade measures and policy uncertainties. It has cut the 2025 growth forecast by 0.9% to 1.8%. The resetting of the global economic system is paring no one, with looming sharp tariff increases due to which it is expected that the global economy will grow by 2.8% as against expected 3.3%.

India has established itself as a global pharmaceutical hub, with over 10,000 manufacturing facilities, 3,000 pharmaceutical companies, and 650 US-FDA-compliant plants, the highest number outside the United States. It is the worlds largest supplier of generic medicines, providing one in every five generic drugs sold globally.

Indian pharmaceutical products reach nearly 200 countries, supplying around 50% of Africas demand for generics and 40% of the United States generic medicine needs. Due to its ability to produce high-quality, low-cost medicines, India has earned the title of the "pharmacy of the world." Despite its leadership in volume, India still lags in terms of pharmaceutical export value. With strong domestic demand, increasing global exports, and advancements in pharmaceutical innovation, Indias pharma industry is on track for remarkable expansion in the coming years.

Your Company is mainly in international business with US being a major market. Unichem now being part of Ipca group, with its manufacturing excellence and regulatory approvals in place can penetrate in new markets and with a combined resource and presence will able to strengthen its foothold in existing ones. Our experienced leadership team across all divisions will continue to navigate opportunities and challenges with agility and foresight, ensuring sustainable growth and value creation for all its stakeholders.

Internal Control Systems

Internal Controls has been a key focus area of your company. Internal audit and the Information Technology functions are indispensable parts of management control systems, responsible for keeping the management updated about the adequacy and efficacy of the control systems. The Company has an adequate internal control system, including appropriate monitoring procedures, commensurate with its size and the nature of its business. These internal controls ensure compliance with documented policies, guidelines, authorization protocols, and approval procedures.

Your company has an Internal Control framework comprising elements like operational review meet, risk management, process and entity-level controls apart from regular internal audits. Unichem also has a well-functioning Whistle Blower Policy in place to report any misdoing. The Company had appointed an external Chartered Accountants firm as an Internal Auditor who had conducted audits throughout the year to assess the effectiveness of internal controls as well as Internal Financial Control effectiveness and areas for improvement. Additionally, Statutory Auditors, as part of their audit, review and evaluate these internal controls. Their observations and recommendations are discussed with the Audit Committee to ensure necessary corrective actions are taken. Suggestions to further strengthen the processes are shared with the respective process owners.

The Company remains committed to continuously strengthening its internal control framework to enhance governance and operational efficiency. Company is also proactively addressing tech obsolescence, core platform upgrades and data for driving operational efficiencies and improving customer experience. All employees go through security induction program and are encouraged to report incidents to a 24 x 7 managed mailbox. A state-of-the-art firewall technology is installed and monitored centrally to address cybersecurity and as well as‘Data restoration within few hours. A disaster recovery mechanism is also in place for business applications and quality instrumental data.

Human Resources (HR) - Empowering People, Driving Growth

Companys HR strategy remained centred on fostering a high-performance culture, investing in people, and driving meaningful transformation to enhance the employee experience. As Company pivoted towards a more agile and efficient operating model, its focus stayed firmly on engaging, developing, and empowering its people.

Navigating Transformation with People at the Core

Organizational change is as much about mindset as it is about structure. Throughout its transition, Companys Human Resources team has remained a strategic pillar in this journey building a resilient, future-ready workforce and ensuring that people continue to be at the heart of everything it does. HR played a pivotal role as the bridge between strategy and execution ensuring that its people were informed, aligned, and supported at every step. Unichems approach enabled it to keep communication clear, continuous, and inclusive.

Talent Acquisition & Capability Building

Learning and Development (L&D) remained a top priority. Employees completed over 1,50,000 manhours of training, with an average of 40 hours per employee, delivered through a blend of virtual and in-person formats. Programs spanned leadership development, technical upskilling, compliance training, and soft skills enhancement, ensuring teams are equipped for both todays challenges and tomorrows opportunities. External trainings further helped the workforce stay attuned to industry trends.

To support business operations, HR collaborated with functions to develop and deliver tailored training modules on equipment operation and maintenance, pharmaceutical industry challenges, and site-level supervisory development. Companys in-house Train the Trainer program helped build a cadre of certified trainers capable of delivering impactful sessions. Additionally, a structured initiative to identify and nurture subject matter experts continues to thrive.

Strengthening Employee Engagement & Culture

Transformation brings great opportunity. Throughout the year, Company prioritized keeping its teams engaged and motivated. Regular town halls, feedback mechanisms, and cross-functional initiatives helped foster a culture of transparency, collaboration, and ownership.

To reinforce these efforts, monthly Leadership Meetings have gone beyond performance reviews to become a platform for strengthening shared values, promoting accountability, and recognizing adaptability and collaboration. Key messages from these meetings were cascaded to all sites to ensure that every employee remained aligned with organizational goals.

Company had deepened engagement by reaching beyond the workplace through initiatives like family assimilation programs, festive home visits, and competitions for employees families. Cultural celebrations, national festivals, and observance of special days saw enthusiastic participation from teams across locations.

Company had also celebrated its people through long-service awards and other recognitions that honoured their commitment and contributions. Employees extended their passion for purpose to the community as well supporting blood donation drives and other socially responsible initiatives with wholehearted participation.

HR Process Optimization

HR processes continue to evolve in line with our digital transformation journey. Companys integrated HRMS offers a seamless self-service experience across key areas including attendance, leave management, and the entire employee lifecycle.

Our state-of-the-art Learning Management System (LMS) and Performance Management System empower employees to digitally manage their development and growth. These tools not only simplify HR interactions but also deepen employee ownership of their career journeys.

Industrial Relations & Compliance

Unichem maintained harmonious industrial relations throughout the year, grounded in mutual trust and transparent communication. Our continued adherence to ethical business practices and labour law compliance reflects unwavering commitment to doing business the right way. 100% compliance to all laid down statutory and regulatory guidelines was ensured by the function, as validated through successful completion of regulatory audits and statutory inspections.

Looking Ahead

As we enter FY 2026, HR priorities will focus on sustaining momentum, deepening leadership capability, and nurturing a performance-driven culture. Company has remain committed to aligning its people strategy with evolving business needs because transformation succeeds only when its powered by people.

Unichem workforce stood at 3,327 as on 31st March 2025 and the employee base has around 9% women.

Cautionary Statement

Statements in the Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward-looking statements. Actual results may differ materially from those expressed or implied due to various risks and uncertainties. Important factors that could make a difference to the Companys operations include global and Indian demand-supply conditions, finished goods prices, changes in government regulations & policies, tax regimes, economic conditions within India and the countries within which the Company conducts business and other such factors. The Company does not undertake to update these statements.

	For and on behalf of the Board of Directors,
	Dr. Prakash A. Mody
Mumbai	Chairman
22nd May 2025	(DIN: 00001285)