Growing Shareholder Value

Financial Performance Analysis

We delivered strong operational and financial performance during the year, with revenues rising 23% YoY to ₹ 6,813 crore. Growth was driven by continued momentum across both CDMO and Affordable Medicines businesses, supported by robust demand for integrated offerings, late-stage and commercial CDMO supplies, higher ARV and oncology volumes and traction from developed market formulations.

The business portfolio continued to diversify. CDMO revenues increased 36% to ₹ 2,080 crore, taking its contribution to 31% of revenues. Affordable Medicines grew 18% to ₹ 4,733 crore, while ARV revenues remained strong in absolute terms even as their share continued to decline structurally.

Improving profitability and operating leverage

Profitability improved significantly during the year. EBITDA increased 64% to ₹ 1,826 crore, while EBITDA margins expanded by 670 basis points to 26.8%. Gross margins improved to 60.4%, supported by better business mix, process efficiencies, increasing utilisation of manufacturing assets and operating leverage arising from higher revenues. PAT increased 148% to ₹ 889 crore, reflecting stronger operational performance across business divisions.

Strengthening balance sheet and returns

We also strengthened our balance sheet and liquidity profile during the year. Operating cash flow improved sharply to ₹ 1,624 crore, supported by higher EBITDA and improved working capital management. Long-term debt remained stable, while net debt to EBITDA reduced to 1.3x from 2.3x in FY 2024-25, reflecting healthier internal cash generation and disciplined financial management. ROCE improved significantly to 17.7% despite continued investment into growth projects and new manufacturing infrastructure.

Strategic Investments in Capacity & Capabilities

We continued to invest aggressively in strengthening manufacturing infrastructure, technology platforms and future growth capabilities. Capital expenditure for the year stood at ₹ 1,070 crore, with a majority directed towards growth-oriented projects across CDMO, formulations, fermentation and advanced biologics.

Key investments during the year included:

• Expansion of commercial peptide manufacturing capabilities
• Formulation line expansion and packaging infrastructure at Unit 2
• Intermediate and API manufacturing blocks for human and animal health at Vizag
• Investments in ADC and gene therapy process development infrastructure
• Development of cGMP manufacturing facilities in Hyderabad
• Continued investments in fermentation infrastructure, including the upcoming large-scale Vizag fermentation facility

While expanding our manufacturing capacity, these investments are expected to support customer diversification, improve service offerings and drive differentiation across the value chain.