July 30, 2025

Earnings call transcript

Transcript of the 5th Annual General Meeting of Piramal Pharma Limited held at

3:00 p.m. (IST) on Wednesday, July 30, 2025, through video conferencing

- Ms. Tanya Sanish – Company Secretary, Piramal Pharma Limited:

- Dear shareholders, good afternoon and a warm welcome to the 5th Annual General Meeting of Piramal

Pharma Limited. I hope that each of you continue to remain in good health. This AGM is being held through video conferencing in accordance with the circulars issued by the Ministry of Corporate Affairs and SEBI. Live proceedings of this AGM are also being webcast on the e-voting website of NSDL. The

Company has taken the requisite steps to enable members to participate and vote on the items being considered at this AGM.

- I will now elaborate on a few important points regarding your participation at this meeting. The facility to join the AGM through video conferencing has been made available for members on a first-come, first-serve basis. All members who have joined this meeting are by default placed on mute to avoid disturbance from background noise and to ensure smooth and seamless conduct of the meeting.

Based on requests received, the Company has registered some members as speakers at the meeting.

Accordingly, those members will be invited to ask questions or express their views during the meeting.

The moderator will facilitate this session once the chairperson opens the floor for questions and answers. Once the Q&A session begins, the moderator will announce the names of the members who have registered as speaker shareholders one by one. Speaker shareholders, you will thereafter be unmuted by the host one by one. To start speaking, you are requested to click on the video on button.

If you are not able to connect through the video mode for any reason, you may proceed to speak through the audio mode. While speaking, we request you to use earphones so that you are clearly audible, ensure that there is minimal noise in the background, ensure that your Wi-Fi is not connected to any other device and no other background applications are running and that you are seated in proper lighting. This will help you to have a good video and audio experience. If there is a connectivity problem at the speaker shareholders end, we will ask the next speaker to join instead and once connectivity improves, the speaker shareholder will be called again to speak after all other speaker shareholders have completed their turn. We request the speaker shareholders to limit your speech to

3 minutes. During the AGM, if a member faces any technical issues, he or she may contact the helpline number mentioned in the notice of the AGM. Please note that the proceedings of this AGM will be recorded.

- I shall now make some important statutory announcements. The Company has received authorised representations from certain corporate members which are valid and have been accepted. Since there is no physical attendance of the shareholders, the requirement of appointing proxies is not applicable.

The registers that are required to be kept open for inspection at the AGM under the Companies Act,

2013 are open and available for inspection during the meeting. These are accessible electronically on the NSDL website under the tab ‘AGM Documents’. The notice of the meeting has been circulated to all shareholders as part of the annual report.

- With your permission, I shall therefore take the notice convening the meeting as read. The auditor's report, forming part of the annual report which has been circulated to the shareholders, does not contain any qualification, observation or comment on financial transactions or matters which have any adverse effect on the functioning of the Company. Accordingly, in line with the provisions of the

Companies Act, 2013, the auditor's report is not required to be read out at this meeting. In compliance with the provisions of the Companies Act and rules prescribed thereunder as well as the SEBI listing regulations, the Company has provided the facility for remote e-voting to all its members. Remote e- voting commenced on 26th July, 2025 at 9.00 am and concluded on 29th July, 2025 at 5.00 pm Indian

Standard Time. In compliance with the rules on e-voting framed under the Companies Act, voting at the AGM will be conducted by the same e-voting system of NSDL which was used for remote e-voting.

Members who have already cast your votes by remote e-voting are not eligible to vote again at this meeting. Members who have not cast your vote may please go to the e-voting page on the website of

NSDL and cast your vote while watching the proceedings of the meeting. Mr. Bhaskar Upadhyay,

Practising Company Secretary and failing him Mr. Bharat Upadhyay, Practising Company Secretary of N

L Bhatia & Associates, Practising Company Secretaries has been appointed as the scrutinizer for the remote e-voting and the e-voting process at the AGM.

- Since the AGM is being conducted through video conferencing and the resolutions mentioned in the notice of the AGM have already been put to vote through remote e-voting, there will be no proposing or seconding of the resolutions. The results of the remote e-voting along with the results of e-voting at the meeting will be announced within the stipulated time under applicable law and will be placed on the website of the Company and NSDL and will also be communicated to the stock exchanges.

- I now request you to welcome our esteemed chairperson Ms. Nandini Piramal. Over to you Mam.

- Ms. Nandini Piramal – Chairperson, Piramal Pharma Limited:

- Good afternoon ladies and gentlemen. Welcome to the 5th Annual General Meeting of the shareholders of the Company. As the requisite quorum is present, I call the AGM to order. I will now introduce the Board of Directors of the Company.

 Mr. Peter DeYoung, Executive Director and CEO, Piramal Global Pharma.

 Mr. Vivek Valsaraj, Executive Director and Chief Financial Officer.

 Mr. Jairaj Purandare, Independent Director and Chairman of the Audit Committee and the CSR

Committee.

 Mr. S. Ramadorai, Independent Director and Chairman of the Nomination and Remuneration

Committee.

 Ms. Vibha Paul Rishi, Independent Director and Chairperson of the Stakeholders Relationship

Committee.

 Mr. Sridhar Gorthi, Independent Director.

 Mr. Peter Stevenson, Independent Director.

 Mr. Amit Jain, Additional Director (Non-Executive).

 Ms. Nathalie Leitch, Non-Executive Director.

We also have key executives joining from their respective locations. Representatives of the auditors have also joined the meeting.

- I will now provide key highlights of the year gone by.

- FY2025 was a steady year for the Company as we surpassed the US$ 1 billion revenue milestone, delivering a year-on-year growth of 12%. Our EBITDA and net profit also recorded healthy growth of

15% and 411% respectively, highlighting the operating leverage in our business along with a constant focus on cost optimization and operational excellence. Further, we maintained our net-debt to EBITDA level below 3 times at 2.7X against 5.6X in FY2023, progressing well on our stated aspiration of achieving net-debt to EBITDA level of 1X by FY2030. Our healthy performance during the year was led by our CDMO business, which grew at 15%, clocking revenues at over US$ 650 million, despite a challenging macro environment marked by geopolitical tension, supply chain disruptions, trade tariffs, currency volatility and high interest rates impacting biotech funding.

- Our Complex Hospital Generics business grew at 8%, crossing a US$ 300 million in top line, as we maintained our number one rank in Sevoflurane and intrathecal baclofen in the US market with 44% and 75% market share respectively. Our consumer healthcare business also exceeded ₹ 1,000 crores in annual revenue driven by strong growth of more than 20% in our power brands supported by new product launches and an expansion of our distribution network.

- In terms of profitability, we delivered an EBITDA margin of over 17%, translating into an EBITDA growth of 15% during the year. Our net profit after tax also increased multifold to ₹ 91 crores compared to ₹ 18 crores last year. Further, to secure future growth across our three businesses, each operating in large addressable global markets, we invested about US$ 80 million in Capex during the year, while maintaining our net-debt to EBITDA ratio under 3 times at 2.7X.

- During the year, we unveiled our FY2030 vision to become a US$ 2+ billion Global Pharma, Health and

Wellness Company with a 25% EBITDA margin. We also aspire to achieve early teen PAT margins, high teen ROCE and reduce our net-debt to EBITDA ratio to approximately 1 time by FY2030. We are confident that our extensive network of facilities, presence across 100 plus countries, deep pipeline of development projects, differentiated product and service offerings and a strong quality and compliance track record, position us in good standing to achieve our FY2030 vision.

- On quality and compliance, we continue to maintain our best-in-class track record of zero OAIs from the US FDA since 2011. During the year, we successfully cleared 36 regulatory inspections, including 2

USFDA inspections and more than 160 customer audits. We remain committed to ‘Quality as a Culture’ rather than ‘Quality as Compliance’.

- On technology and digital transformation, FY2025 marked a notable year for Piramal Pharma as we advanced Catalyst NxGen, our ERP-led transformation program aimed at replacing our legacy systems with a next-generation, future-ready platform. As we continue this transformative journey, Catalyst

NxGen is fundamentally changing how we work, collaborate and create value for patients, customers, and consumers. This initiative is central to our vision 2030, enabling greater automation, improved efficiency, and enhanced data-driven decision-making.

- Talking about the performance of our business verticals:

- Starting with our CDMO Business: Our CDMO business has delivered strong performance over the past two financial years with a revenue growth of 19% in FY2024 followed by 15% in FY2025, coupled with a significant improvement in EBITDA margin. This performance has been mainly driven by increased traction in our innovation-related work, especially on patent commercial manufacturing, which grew from US$ 52 million in FY2023 to US$ 179 million in FY2025. As a result, the contribution of

3 innovation-related revenues to our CDMO business also increased from 45% in FY2023 to 54% in

FY2025.

- Over the years, we have consistently invested in our differentiated capabilities which include ADCs, high-potent APIs, peptides, sterile fill-finish, hormones and on-patent API development. We continue to witness strong demand for these offerings. These strategic investments have translated into a growing share of revenue from differentiated offerings within our CDMO business, rising to 49% in

FY2025 compared to 37% in FY2023. We have announced a further investment of US$90 million for expansion at two of our U.S. sites, Lexington and Riverview. We will be adding 24,000 square feet of manufacturing space and a new laboratory, which adds commercial-scale manufacturing, that will enable the efficient scale-up of our clients' injectable drug products in Lexington. In Riverview, which specializes in high-potent API, we will be adding development and commercial-scale capabilities in payload linkers for bioconjugates. These site expansions are expected to generate greater opportunities for integrated ADC projects. Working synergistically, they will play a vital role in Piramal

Pharma's integrated ADC development and manufacturing program, branded ADCelerate™.

- Talking about the order inflows, customer inquiries and RFPs remain strong, particularly at our overseas sites, such as Grangemouth, Riverview, Lexington and Sellersville, driven by our demand for differentiated offerings and a customer's need to diversify and de-risk supply chain. There is an uptick in demand for integrated service offerings and a geographically diversified facility network on account of ongoing geopolitical uncertainties. However, customer decision-making timelines are prolonged due to an inconsistent recovery in the funding for emerging biopharma companies and uncertainty over trade tariffs. As we steer through these near-term uncertainties, we believe we are well-placed to capitalize on the CDMO opportunities over the medium to long term with a globally diversified network of facilities and differentiated capabilities underpinned by our stellar quality track record and a continuous focus on customer delight through superior execution.

- We stand committed to grow our CDMO revenues to US$ 1.2 billion by FY2030 with an EBITDA margin of 25%.

- Moving to our Complex Hospital Generics Business: FY2025 was a mixed year for this business. In the inhalation anesthesia business, while we had lower price realizations during the first half of the year in our primary market in the U.S., we largely offset that through volume expansion and cost optimization initiatives. We continue to maintain our leading position in Sevoflurane in the U.S. with a market share of 44% compared to 26% five years back.

- In the rest of world (ROW) markets such as the U.K., France, India and Vietnam, we are seeing an increased traction for our inhalation anesthesia products. As per secondary sales data by IQVIA, the rest of the world market, which is ex-China and ex-U.S., size for Sevoflurane market is about US$ 400 million. To capitalize on this market opportunity, we have invested in setting up new Sevoflurane manufacturing lines at our Digwal facility and increasing the KSM manufacturing capacity at our Dahej facility to ensure vertical integration. We are happy to share that these capacity expansion projects tracked well with our timelines and we have started commercial production of Sevoflurane at our

Digwal facility from April. This will be an important growth driver for CHG business over the next three to five years as we look to penetrate deeper into the rest of world markets and build our own market share.

- In the intrathecal therapy segment in the U.S., a flagship brand, Gablofen, remains a top brand

Baclofen pre-filled syringe and vial product with a 75% market share. Mitigo, a morphine sulphate brand, also registered healthy growth during the year. In the injectable anesthesia and pain management segment, despite a healthy demand, our growth was constrained by supply limitations at third-party CMOs. We're actively engaging with them to enhance our supply continuity.

- To build sustainable growth levers for medium to long term, we are investing in differentiated and specialty products including 505(b)(2)’s, complex generics and branded products. We estimate a market opportunity of exceeding US$ 15 billion for limited competition injectable products across the

U.S. and Europe with 30-plus molecules expected to lose exclusivity in the next five years. One example of such products is Neoatricon, for which our partner, BrePco Biopharma, received an approval for multiple markets such as the U.K., Germany, France, Italy, Spain, the Netherlands, and a few more. We have the marketing and distribution rights for these markets. Neoatricon® is the only approved pre-diluted, paediatric -appropriate dopamine formulation.

- Our vision is to grow our CHG revenues to US$ 600 million by FY2030 with an EBITDA margin of more than 25%.

 Coming to our Piramal Consumer Healthcare Business: This business delivered a steady double-digit growth during the year, crossing a strategic revenue milestone of ₹ 1,000 Crores, despite slow consumer demand and growth in i-range being impacted to regulator-led price reductions. A strong growth in our power brands and e-commerce channels were the key driving factors for this growth.

 During the year, our power brands registered strong growth of 20%. E-commerce sales grew at over

30% rate, contributing 21% to our segment revenue in FY2025. We are working towards improving the profitability of e-commerce sales through a strategic combination of judicious pricing, optimized product and portal mix and targeted investment efficiency.

 We have continued investments in marketing and brand promotion activities, spending about ₹ 125 crores on trade and media promotion, which is around 11% of our total consumer business revenue.

 In FY2025, we launched more than 50 new products and SKUs with a healthy success rate. New products launched in the last two years contributed 8% to the consumer business sales in FY2025, underscoring the impact of our innovation-led portfolio expansion.

 In terms of expanding our distribution network, we are looking to increase our penetration in smaller towns and transitioning from a Pharmacy-dominant to an Omni-channel consumer healthcare company. We are also increasing our reach via newer trade channels like supermarkets, hypermarkets and standalone modern trade outlets.

 We want to scale up this into a US$ 200 million revenue with double-digit EBITDA margins by FY2030.

 Moving ahead to discuss our progress on Sustainability initiatives: we have made significant progress during the year with SBTi approval of our decarbonization plan. We have taken up targets to reduce our Scope 1, 2 and 3 greenhouse emissions by 30--42% by FY2030 on a baseline of FY2022. We have already started making notable progress towards achieving this target as we converted our coal-fired boiler at Digwal to operate on biomass briquettes, which is expected to eliminate 25,000 tons of CO

5 of greenhouse gas emissions or 17% of our total emissions. We are also conducting comprehensive energy audits and increasing the share of renewable energy to reduce our carbon footprint.

 In the area of waste and water management, we undertook several micro-projects to reduce our freshwater intake and responsibly dispose our hazardous waste so it doesn't enter the landfill.

 In terms of safety, we are pleased to share that we have maintained zero fatality status in the last four years, reinforcing our commitment to providing a healthy and safe work environment to our employees.

 Women now represent 20% of our total workforce and 30% of our Board, reflecting our ongoing efforts to foster merit-based gender diversity.

 Piramal Foundation, our philanthropic arm, continues to work towards community welfare and upliftment of our society. As a result, we have seen a significant improvement in our ESG scores at the

S&P Global Corporate Sustainability Assessment and EcoVadis.

 As I conclude my speech, I would like to say that:

 despite the uncertain business environment in the near term, we remain confident of the strong growth prospects across all three of our businesses over the medium to long term. Our vision for

FY2030 to become a US$ 2 billion Global Pharma, Health, and Wellness Company with an EBITDA margin of 25%, is a clear reflection of this conviction.

 We extend our sincere gratitude to our employees, customers, consumers, suppliers, regulators, and shareholders for their continued support. We are also deeply grateful for the valuable guidance of our

Board Members. We look forward to generating consistent value for all our stakeholders.

 Thank you.

 Now, I will read out the resolutions proposed in the Notice. Thereafter, we will move to the Q&A session.

 Resolution on Ordinary Business:

1. Adoption of the Audited Financial Statements (standalone and consolidated) for FY2025 and the

Reports of the Board and Auditors thereon.

2. Declaration of the final dividend on equity shares.

3. My re-appointment, as a Director, who retires by rotation, and being eligible, I offer myself for re- appointment.

4. Appointment of the Statutory Auditors of the Company.

 Resolutions on Special Business:

5. Appointment of Mr. Amit Jain as Non-Executive, Non-Independent Director.

6. Reappointment of Mr. Jairaj Purandare as an Independent Director.

7. Appointment of the Secretarial Auditor of the Company.

8. Ratification of remuneration payable to Cost Auditors.

9. Issue of Non-Convertible Debentures on a Private Placement Basis.

 The text of the resolutions along with the explanatory statement have been provided in the Notice circulated along with the Annual Report.

 I now invite shareholders to speak who have registered themselves as speakers. To avoid repetition, I shall respond after hearing all the questions.

 Over to the Moderator.

 Speaker Shareholder Session:

 Thank you, ma’am. Dear shareholders, when your name is announced, you will be sent an invitation to unmute your microphone. Kindly unmute your microphone, switch your camera on and speak. Kindly restrict your queries/comments to a maximum of three minutes.

 Our 1st Speaker Shareholder is Mr. Kamal Kishore Jhawar.

 Mr. Kamal Kishore Jhawar – Shareholder:

 Thank you to the Chairperson and Namaskar to all. I am Kamal Kishore from Hyderabad. Madam, your speech was very good and detailed. Your share price reached a high of ₹ 300; even right now it is ₹

225. The Piramal Group is very nice and there are big things planned for the future. Piramal Pharma will really prosper. Namaskar to all directors, especially to Mr. Ramadorai who is an Independent

Director. When we used to have the AGM in Hyderabad, I used to meet him and speak to him. Ma’am,

I would request you to continue with the video conference meeting so that shareholders like us can attend the AGM. Ma’am, (37.32 – 37.43audio distorted). The shareholders speak to you with a lot of hope. Since they get only one day in a year to speak, please listen to them. (37.56 audio distorted).

The shareholders are small investors and (38.07 – audio distorted). So I would request you to be generous and give us shareholders more time to speak.

 How much revenue is our Company projecting to get in the pharma sector in the year 2025-26?

 Thank you, ma’am. Your Secretarial Department is very responsive, and they sent me the balance sheet on time. Kudos to the team and thank you to them. Thank you, ma’am.

 Moderator:

 Thank you, Mr. Jhawar. We move on to Shareholder No. 2, Mr. Manoj Kumar Gupta. Mr. Gupta, we can see you. Please unmute your microphone and speak.

 Mr. Manoj Kumar Gupta – Shareholder:

 (38.49 audio distorted)

 Moderator:

 Hello. Mr. Gupta, your voice is cracking. If you switch your camera off, it will be better.

 Mr. Manoj Kumar Gupta – Shareholder:

 Yes, yes. Can you hear me now?

 Moderator:

 Yes, sir, loud and clear.

 Mr. Manoj Kumar Gupta – Shareholder:

 Good afternoon, Respected Chairperson, Board of Directors, fellow shareholders. First of all, thanks to you and your entire team for the excellent result of the Company for the year 2024-25. I strongly support all the resolutions. Because I have already sent all my questions earlier to your Secretarial

Department and I have got a satisfactory reply. Such type of people there in the corporate houses that they can respond properly and accurately to the shareholder. So, I am totally satisfied with the reply of your Investor Department of my questions and queries.

 My one and last question is that how you will face the competition?

 And is there any direct or indirect impact on our Company due to geopolitical tension?

 And convey our best wishes to your beloved father. I wish to God to give you more success to take the

Company to new heights, and do not forget the small investors. And convey my best wishes to Mr. S.

Ramadorai because I am a great admirer of him as I had met him several times in TCS. Thank you.

 Moderator:

 Thank you very much, Mr. Gupta. Speaker No. 3, Mr. Gundluru Reddeppa has not logged in.

 We move on to Speaker No. 4, Ms. Lekha Shah.

 Ms Lekha Shah – Shareholder:

 Respected Chairperson ma'am, Board of Directors and my fellow members, good afternoon and regards to everyone. Myself, Lekha Shah from Mumbai. First of all, I would like to thank our Company

Secretary, Tanya ma'am, especially Akshita ma'am for giving me this opportunity, and for a smooth process where I am able to talk in front of you all in AGM.

 I found the AGM Notice, and I am delighted to say it is so beautiful, full of colours and facts and figures in place. Chairperson ma'am, for your opening remarks, they are so insightful and comprehensive, that you have already addressed everything I had in mind. Ma'am, may all your upcoming festivals be filled with joy and blessing, ma'am. I'm proud to be a shareholder of this Company. I have complete trust and faith in our Board of Directors and Chairperson ma'am. There is no question, ma'am.

 Ma'am, I hope the Company will continue video conference meeting in future. I would like to say I strongly and wholeheartedly support all the resolutions for today's meeting. Thank you, ma'am.

 Moderator:

 Thank you, Ms. Shah. Speaker No. 5, Mr. Manjit Singh, has not logged into the meeting.

 We move on to Speaker No. 6, Mr. Hiranand Kotwani. Mr. Kotwani, you have been placed in the meeting. Kindly unmute your microphone, switch your camera on if you so desire and speak.

 Mr. Hiranand Kotwani – Shareholder:

 Namaste to all the people who are listening to me. It is a great pleasure to join you and convey my best wishes to the lady who is handling this very big Company. It is a very great pleasure and pride for me that this Company is doing well. But it is a young Company. It’s footprint is in all over the world, a huge product. Your speech has enthused us that the long-term vision of this Company is very good, and certainly profitability will come and reward will come to the investor. So, long-term vision and mission should be there, madam, rather than temporary. We cannot give dividend at 14 paisa and 15 paisa. As a young Company, five years, you can plough back the profit.

 And don't go for NCD. Take from internal accrual, Rights issue after the - give convertible debentures to the promoter and shareholder. I have an opinion on another resolution. In the future, you should see that participation of existing shareholder should be there.

 Your products are well-in-line, taken by the market and it is still a long way to go; huge market potential globally, but economic skill is important. What is your vision in this regard? How are you going to take the marketing? Marketing is important and the prosperity; prosperity here means the profit. So, please enhance the economic skill and profit.

 And when are other products going to come? Is any research on that going on in innovation or evolution? Please narrate regarding some new products, in which category it will come and how are we going to tap the market, competitive market globally?

 Thank you and good luck, madam. Thank you.

 Moderator:

 Very nice. Thank you, Mr. Kotwani. Speaker No. 7, Ms. Celestine Elizabeth Mascarenhas has not logged into the meeting, neither has Speaker No. 8, Mr. Aloysius Peter Mascarenhas.

 We move on to Speaker No. 9, Mr. Jaydip Bakshi. Mr. Bakshi, you have been placed in the meeting.

Kindly unmute your microphone, switch your camera on if you so desire and speak.

 Mr. Jaydip Bakshi – Shareholder:

 Hello, good afternoon, Chairperson madam, CEO and CFO and other persons present in today's video conference. Myself, Jaydip Bakshi, connecting from the city of Kolkata.

 Ma'am, I have already shared my questions, I don't want to repeat them. Just want to know what are your plans to expand our product portfolio?

 And any technology powered to enrich our capacities; what is the thought process regarding this?

 And just want to know, regarding the service charges in page 194, and the bad debts which have been written off. Kindly share some thoughts.

 And, are you arranging for any plant visit? Kindly let us know.

 And do remember us during the festive season as you remember your clients. And also, convey my thanks to our Company Secretary and also her team, Akshita and Varsha, for giving us the opportunity to express my views and keeping in touch with us. Thank you, madam.

 Moderator:

 Thank you, Mr. Bakshi. Speaker No. 10, Ms. Hutokshi Sam Patel has not logged into the meeting.

 We move on to Speaker No. 11, Ms. Prakashini Shenoy.

 Ms. Prakashini Shenoy – Shareholder:

 I am Prakashini Ganesha Shenoy from Bombay. Chairperson madam, since we are meeting for the first time in 2025, I wish one and all happy, healthy, wealthy, and prosperous 2025. Respected Hon’ble

Chairperson, madam, other dignitaries on the Board and my fellow shareholders, good afternoon to all of you. I received the AGM report well in time, which is colourful, informative, transparent, and contains all the information as per the corporate governance. I thank the Company Secretary - Tanya, and Akshita for the same. I should not forget to thank them once again for reminding me of today's meeting, without which I won't be in a position to speak.

 The Chairperson madam has given an outstanding speech regarding the Company and its working in all parameters. It was really a wonderful speech, Chairperson madam. Thank you and congratulations.

 At the outset, I am thankful to the Board for recommending dividend for the financial year 2024-25, and also glad to note that the Company is doing outstanding work in the field of CSR activities.

 Madam, I had already sent the questions, and within no minute, I got the reply, so I have no question to ask. I appreciate their quickness for sending me the replies for the questions what I have asked.

Really good. I have never seen any other company. This is the first Company which I have seen that immediately they have replied. So thank you very much. I am very glad that the head of the

Chairperson madam, with your influence and the working of the people are really outstanding.

 Chairperson madam, last but not the least, my earnest request to you, please continue with VC so that people all over will have an opportunity to express their views. I wish the Company good luck for a bright future, and pray God that the profit of the Company shall reach the peak in due course. Madam,

I strongly and wholeheartedly support all the resolutions put forth in today's meeting. Thank you,

Chairperson madam.

 Moderator:

 Thank you, Ms. Shenoy. Speaker No. 12, Mr. Prakash Buva, has not joined the meeting.

 We will move on to Speaker Shareholder No. 13, Mr. Srikanth Jhawar.

 Mr. Srikanth Jhawar – Shareholder:

 Namaskar to the Respected Chairperson and all directors. I am Srikanth Jhawar from Hyderabad. I have already sent my questions, but I want to add a question to that.

 How will the US tariffs affect us?

 I have already sent the remaining questions to Ms. Tanya and Ms. Akshita. Greetings for the upcoming festivals of Dusshera and Diwali. Thank you.

 Moderator:

 Thank you very much, Mr. Jhawar. We move on to Speaker Shareholder No. 14, Mr. Santosh Kumar

Saraf. Mr. Saraf, could you kindly unmute your microphone and speak?

 Mr. Santosh Kumar Saraf – Shareholder:

 Respected Chairperson, all directors and employees attending, greetings to you all. I am Santosh

Kumar Saraf from Kolkata. Hope to find you all in good health. I would like to thank the management and employees of the Company for their hard work. I would also like to thank their families for supporting them so that they can contribute completely towards our Company.

 Madam, you have given a lot of information in your opening speech, so there are no questions as such.

Your balance sheet has also covered everything. I request you to tell your CFO that there should be some topics left on which we can raise questions about. The balance sheet is so complete and well written and I would like to thank the Company Secretary and her team for doing a wonderful job on that.

 In spite of that I will ask you one or two questions, for example even if the meal is good we long for the ‘paan’ [betel leaf] at the end of it.

 With regard to the geopolitical situation that is going on in the world, what steps are we taking to protect our Company.

 Secondly, what is the ESG rating of our Company.

 Please also let me what are the new products that the Company is doing research on.

 What is the outcome of the technology that the Company has used.

 Please continue with VC meeting in future so that, Nandini madam, we are able to praise the good work that you are doing. I also wish to praise the efforts of the employees of the Company.

 I wish to give you good wishes for the forthcoming festivals and hope that the coming year 2025-26 will be healthy and wealthy.

 Jai Hind, Jai Bharat, Ram Ram.

 Moderator:

 Thank you, Mr. Saraf. Speaker shareholder no. 15 is Mr. Badri Vishal Bajaj.

 Mr. Badri Vishal Bajaj – Shareholder:

 Good afternoon, Chairman ma’am.

 Your three verticals on which you have given detailed explanation, one of them is CDMO. So, my query on CDMO is lot of Indian pharma companies have come into the picture and they are going into

CDMO. Is there any clash of clients or you have respective clients which remain with you on particular research for human body. CDMO is very competitive, hope you are facing this well. You have done a lot of expansion and you are taking care that you are minting more money. About critical care new products launches, it is very well taken and it is nice that you have to because these are hospital products which you need for more revenue, even OTC vertical.

 Now my second query is on Q1 FY25-26, your revenue generation or margin have fallen. In your speech you have given that FY25-26 you are going to give double-digit growth. How are you going to manage the other three quarters, please give a guideline because first quarter has given you negative growth compared to earlier.

 Now your cash flow is very healthy, operating activities are very healthy and it is appreciated that you take care of the guidelines. All the best to Piramal Pharma and the team under you.

 Good luck madam. I am Bajaj from Hyderabad, thank you.

 Moderator:

 Thank you, Mr. Bajaj. We move on to speaker shareholder no. 16, Dr. Arunkumar Boppana. Dr.

Boppana, we can see you and hear you.

 Dr. Arunkumar Boppana – Shareholder:

 Hello, everybody. Namaste to Ramadorai sir, after a long time I am seeing Ramadorai sir, nice seeing you after long time.

 Madam, I have already sent the questions and every question has been answered. I just want to warn you if all the questions are answered, you will not get quorum in the future. So, you have to leave something for us to ask you, see you and attend the AGM, I hope you get my point.

 Thanks to CS and team for arranging the VC.

 And compliments for a dynamic year of growth being people centric amid global volatility.

 So, questions are how are you hedging for this US Trump tariff in future. Is there a proposal to enter into Trump's [55:12 – audio distorted] business and alternate, it's a novel way of drug delivery. Any idea of buying any company or taking on license.

 I believe on China Plus One, I believe you have reduced your dependency. You have increased, you have broadened your vendor base in India as an alternative IndAS.

 I wish you serve global health with responsibility as we rise with promise of young Indian population and global trust with Indian science. Thank you very much.

 Moderator:

Thank you, Dr. Boppana.

 We have a couple of our shareholders who could not log in earlier, they have now logged in.

 I will invite Shareholder No. 3, Mr. Gundluru Reddeppa to share his thoughts with us. Mr. Reddeppa, we can see you.

 Mr. Reddeppa Gundluru – Shareholder:

 Thank you, Company Secretary, for giving me this opportunity.

 Once again, Chairman, board of directors, company secretary, signatories, auditors and my fellow shareholders attending the conference of Piramal 5th Annual General Meeting - Namaste, good afternoon, myself Reddeppa Gundluru, I am attending this AGM from Hyderabad. I am a shareholder of Piramal. I am very happy so far about the Company's performance. The Company has good wonderful numbers and figures, corporate governance is very good, CSR is very wonderful and everything wonderful.

 My question is what is your future outlook for FY2026? What is the capex? Also, what steps are you taking to introduce artificial intelligence into the operation? What are the geopolitical impacts? These are my views.

 I would like to thank the Company Secretary for outstanding support. Please continue with VC, ma'am.

We have faith on the board, trust on the board, go ahead with necessary decision with the Company board, we are with you, ma'am. I pray to God for wisdom, strength to all the board members and the employees and the Company Secretary.

 God bless you, Reddeppa Gundluru, all the best, ma’am, proud shareholder.

 Moderator:

 Thank you, Mr. Reddeppa. We will move onto Ms. Celestine Elizabeth Mascarenhas, Speaker no. 7 who has now logged in. Ms. Mascarenhas.

 Mr. Aloysius Mascarenhas – Shareholder:

 Hello, hello.

 Moderator:

 Mr. Mascarenhas, okay.

 Mr. Aloysius Mascarenhas – Shareholder:

 Hello, can I proceed?

 Moderator:

 Mr. Aloysius Mascarenhas, please proceed, we can hear you.

 Mr. Aloysius Mascarenhas – Shareholder:

 Hello, one minute, hello, hello. Can I proceed?

 Moderator:

 Yes, sir, please go ahead.

 Mr. Aloysius Mascarenhas – Shareholder:

 Respected Chairperson, board of directors and my fellow shareholders, good evening to you all. My name is Aloysius Mascarenhas. At the outset I thank the management, Company Secretary and the team for sending me such a beautiful, voluminous, illustrative and transparent balance sheet of the annual report which adheres to all the parameters required for a good corporate governance. Our results are very good under the chairmanship of Madam Nandini Piramal, very good. It is a ladies’ world, most of the companies have ladies as CEO and chairpersons which are doing very well. I also see a bright future for our Company with the Chairperson.

 Our results are good, very good, the net profits have more than doubled, 391 crores as against 70 crores last year. But the dividend is very poor, based on the profitability our dividend should have been more. Anyway, something better than nothing and we welcome it.

 I would like to know who are our peers and competitors and our market share.

 I have one personal question regarding my grievance which is long pending for the last 2-3 years. My demat is not getting done, physical shares of the Pharma that is lying for the last 2-3 years due to a silly question. Though I have submitted all the KYC forms including SR-4, my shares are not being dematted. My only request is that please see to it and get my problem solved. I know with the magnanimity of our Company, my grievance will be definitely adhered to. I end my speech wishing you, madam, personally, and all the board members and more importantly all the employees all the very best in the days and years to come. We are in the festive season that is fast approaching so I wish

14 each one of you a very happy festive season. With this, madam, I take leave, good luck, goodbye, and good health. Thank you.

 Moderator:

 We now have Ms. Celestine Mascarenhas I think who will be joining us.

 Mrs. Celestine Elizabeth Mascarenhas – Shareholder:

 Mrs. Celestine Elizabeth Mascarenhas, I can see my name on the board. Can I proceed? Am I audible?

 Moderator:

 Yes, ma'am, please proceed, loud and clear, ma'am.

 Mrs. Celestine Elizabeth Mascarenhas – Shareholder:

 Okay, thank you, my video has come, I am happy.

 Anyway, Chairperson Madam, Nandini Piramal, CEO Global - Mr. Peter DeYoung, other members of the Board, my dear fellow shareholders, I am Mrs. C.E. Mascarenhas speaking from Mumbai.

 First of all, I thank the Company Secretary, Madam Tanya Sanish and her team for sending me the annual report and for registering me as a speaker and keeping in touch and asking me whether you have any queries. I have sent some queries which were promptly answered by our secretarial team, thank you so much, working is good.

 Of course, congratulations for the awards and the accolades. Also, very good CSR work, I am very happy that you are taking care of the have-nots, thank you so much. ESG, I don't know what is the rating if you could just speak out on what is the rating of the ESG.

 I had some queries, but these are like supplementary, we are in three types of business - CDMO business, what is the percentage of that total business. Then we are in complex hospital generic - in that business. The last one is Piramal Consumer Health Care business. Which of these will give us more growth in the future with margins, which are the most growth oriented in these three businesses which we are having.

 We have R&D, how many R&Ds we have and how many scientists, average age and the attrition level.

 How much is the expenditure on the AI, Gen AI, etc.

 We have total 10 plants, what is the average capacity utilization of these plants and the capex requirement for the next five years, future roadmap for the next five years, which vertical will be growth engine driver with good margins growth.

 With this I support all the resolutions. I wish, madam, you and the entire team very good health as health is wealth, and also very good festive seasons which are following one after another. Thank you so much for giving me this opportunity and hearing me patiently, thank you, namaskar.

 Moderator:

 Thank you, Ms. Mascarenhas. Speaker No. 12, Mr. Prakash Buva has logged in and we will invite him to share his thoughts with us.

 Mr. Prakash Buva, could you kindly unmute your microphone and speak.

 There appears to be a technical problem with Mr. Buva's connectivity.

 With that all shareholders who registered to speak at this AGM and did login have now been given an opportunity to express themselves. I hand the proceedings back to our Chairperson. Over to you, ma'am.

 Ms. Nandini Piramal – Chairperson, Piramal Pharma Limited:

 Thank you very much.

 I will try and begin to answer the questions.

 Overall first, I would like to talk about our FY2030 vision - so the next five-year vision, we would like to be a US$ 2 billion revenue company with a margin of 25% as well as a reduction in debt to

1XEBITDA. However, as we said we have talked about there is near-term uncertainty so for

FY2026, we expect a mid-single digit revenue growth and mid-teen EBITDA margin. We also were hit in the CDMO business by a one-time de-stocking event and that is kind of leading to this. But overall, while there was a soft quarter in Q1, we fully expect to meet this guidance as we said of mid-single digit and we think that we are on track to do so.

 In the CDMO business we have an integrated network of global facilities that gives us a very good advantage because we are based in the US, Canada, the UK and India and that helps people in this again near-term uncertainty.

 In CHG, we are focusing on developing a pipeline of differentiated and specialty products.

 In PCH we are continuously launching new products and SKUs and investing in brand building.

 There is near-term uncertainty because of geopolitical but we believe that our network is well balanced and depending on what the customers want if they would like to manufacture in the US, we have the capacity and the capability to do so. We have always been focusing on managing costs, logistics as well as carrying adequate inventories.

 In terms of new products, in the consumer business we regularly launch about 40 to 50 new products and SKUs in the business across the year. Last quarter we did 7 and we will continue to do that.

 In the CHG business, we are building a portfolio of differentiated and specialty products. For example, there is a product called Neoatricon which helps babies in NICUs which we launched in

Finland last quarter and will launch in Europe over the rest of the year.

 In the CDMO we have a deep pipeline of about 150 molecules at various stages from preclinical to

Phase 3.

 On dividend, we want to maintain the momentum of being a dividend-paying company and hence are consistently paying dividends no matter how small the amount. As we grow the revenue and profits in line with strategy, we do expect the dividend payout to increase further.

 On the service chart, the service chart pertains to business development and marketing expenses incurred by the Company.

 Our export to US is 36%, the tariff situation is evolving, and we will have to wait to see the fine print.

 We are present in multi-geographies including the US and believe we are strategically positioned to capture the opportunities.

 In terms of ESG we are evaluated by many of them, in EcoVadis our score is 65, in S&P Global our corporate sustainability index is 55, NSC sustainability is 61.

 On new technology, we are embracing a range of technologies including AI and SAPS to help optimize manufacturing outcomes, improve processes, reduce errors and encourage smart digitization of our laboratories.

 On revenue generation margin, we have given an annual guidance for FY2026 but Q1 is generally soft but we expect growth to enhance in H2.

 In FY2026 we expect our capex to be US$ 100 million to US$ 125 million for the year. And it will be similar levels for the next 4 years.

 Our dependence on China has reduced consistently over the years due to productiveness and currently is less than 15%.

We compete in the CDMO market with both global and Indian CDMOs. In CHG with various pharma companies dealing in hospital generic products and in consumer health care with Indian

FMCG players.

Since we are in multiple businesses there is no single answer to this. But some numbers are - we are number one in Sevoflurane in the US with 44% market share, 75% value share of Gablofen in

17 the US and Fentanyl (ampoules) brand ranking number one in Japan, South Africa and Indonesia markets.

 Mr. Mascarenhas, please contact the secretarial team who will be able to help you on the demat account and the escrow account. They will facilitate the conversion of Piramal Enterprises shares first and then to do Pharma.

 Among CDMO, CHG and PCH which are the segments expected to lead revenue, we have shared the investor growth business aspirations in our FY2030 in our Investor Day in September ’24. As per that all three businesses are expected to double their sales between FY2024 to FY2030.

 I have tried to answer your questions as best as possible. If there any further questions, please contact the company secretarial team.

 Now those members who have not cast their vote on the resolutions are requested to exercise your vote through the e-voting facility which will be available for the next 15 minutes.

 With your consent, I and other board members would like to leave the meeting and authorize Ms.

Sanish, Company Secretary, to conduct the voting procedure and conclude the meeting.

 I once again take the opportunity to thank all the shareholders for attending the meeting and for your continued support for the Company.

 I also like to thank the directors for joining the meeting through audio-video means today.

 The e-voting timer will be displayed on the screen.

 Thank you.

 End of transcript