Macro Trends Shaping our Business
Global CDMO demand continues to rise, supported by sustained R&D spending, supply-chain diversification and growing demand for specialised outsourced capabilities, notwithstanding near-term challenges. With expanding technologies, manufacturing depth and integrated offerings, we are well positioned to participate in this opportunity.
Trade and Geopolitics
Trade policy shifts, tariff actions and geopolitical tensions are reshaping global supply chains, making sourcing and manufacturing decisions more complex and less predictable. According to the WTO, world merchandise trade volume growth is expected to ease from 4.6% in 2025 to 1.9% in 2026, before improving to 2.6% in 2027. Commercial services trade growth is projected to moderate from 5.3% in 2025 to 4.8% in 2026, before rising to 5.1% in 2027.
Our response
We are staying agile in response to these shifts by strengthening supply resilience, broadening our manufacturing base and investing in capacity with greater long-term visibility. This is helping us respond more proactively to changes in trade flows, sourcing decisions and customer priorities.
India’s CDMO Opportunity
Global customers are increasingly looking to diversify supply chains and build alternative manufacturing partnerships outside concentrated geographies. According to BCG and IPSO, India’s CRDMO sector grew at a 15% CAGR between 2019 and 2024, versus 7%–8% globally, and is expected to expand from USD3–3.5 billion currently to USD22–25 billion by 2035.
Our response
We are investing behind high growth opportunity through expansion in CDMO platform, fermentation, peptides and other specialised capabilities, while deepening our engagement with global pharmaceutical and biotechnology customers.
Strategic Partnerships
Pharmaceutical outsourcing is increasingly shifting from transactional engagements to deeper, longer-term partnerships. Growing product complexity and tighter development timelines are encouraging innovators to reduce handoff risks, avoid delays in technology transfer and work with partners that can provide integrated support across development and manufacturing.
Our response
Our end-to-end integrated capabilities have enabled us to build deeper and longer-term customer relationships across development and manufacturing. Our CDMO platform now includes more than 125 active pipeline projects, with a growing mix of clinical, late-stage and commercial programs.
Complex Chemistry
As outsourcing matures, technical depth is becoming a more important differentiator than capacity alone. Customers are placing greater value on process chemistry expertise, scale-up capability and specialised technology platforms such as flow chemistry, biocatalysis, and fermentation.
Our response
We continue to strengthen these technology-led platforms. In FY 2025-26, projects on our biocatalysis platform increased by 50%, while continuous flow reaction projects increased by 42%, reflecting stronger engagement in complex and process-intensive programs.
Advanced Modalities
Cell and gene therapies, ADCs and related next-generation modalities are expanding the long-term opportunity set for the industry, but they remain capability-intensive and typically require longer investment cycles before meaningful revenues emerge. Currently, there are 13 FDA-approved ADCs and more than 200 ADCs in clinical development, underlining the scale of innovation in this space.
Our response
We are building this platform selectively through our Gene Therapy and ADC GMP facility in Hyderabad, process development labs and our strategic investment in Aarvik Therapeutics, which strengthens access to next-generation ADC technology and pipeline.
Affordable Healthcare
Demand for affordable medicines remains structurally important, even when quarterly patterns are influenced by tenders, procurement cycles, shipping schedules and product mix. In the United States, 9 out of 10 prescriptions are filled with generic drugs, underscoring the continuing importance of cost-effective, high-quality supply in healthcare systems.
Our response
Our Affordable medicine business continues to provide a strong foundation, supported by integrated API and FDF capabilities, scale in antiretrovirals, developed-market supplies, expanding emerging market supplies and ongoing efforts to improve utilisation, capacity balance and execution consistency.
ESG Expectations
Sustainability is becoming an increasingly important part of business evaluation, with customers, investors and other stakeholders placing greater emphasis on environmental performance, responsible operations and long-term resilience.
Our response
We continue to integrate sustainability into the way we grow, operate and engage with stakeholders. This includes a clear focus on environmental stewardship, ethical business conduct and responsible value-chain practices, alongside measurable progress in ESG performance.