PIRAMAL PHARMA LTD Q2 CONCALL EARNINGS SUMMARY: FY27 REVENUE GROWTH GUIDANCE UPGRADED TO 19–20%, STRONG CDMO DEMAND, KENALOG GROWTH, ADC EXPANSION & IMPROVING PROFITABILITY

• Management upgraded its FY27 revenue growth outlook to approximately 19–20%, supported by strong H1 performance, healthy CDMO demand and growth in Complex Hospital Generics. • Management expects FY27 profitability to improve meaningfully, supported by higher capacity utilization, operating leverage and a better business mix. • Management expects H2 FY27 performance to be stronger than H1 FY27, consistent with the historically stronger second half of its CDMO business. • Management expects CDMO growth momentum to continue during H2, supported by commercial manufacturing demand, customer additions and differentiated service offerings. • Management expects higher utilization across manufacturing facilities to support revenue growth and profitability improvement. • Management expects innovation-related CDMO projects and on-patent commercial manufacturing to remain important growth drivers. • Management expects the growing Phase III molecule pipeline to support future commercial manufacturing opportunities as products advance toward approval. • Management expects antibody-drug conjugate services to remain a key growth opportunity within its differentiated CDMO portfolio. • Management is expanding capabilities across high-potency APIs, peptides, ADCs, sterile injectables, spray drying and on-patent manufacturing. • Management expects differentiated CDMO offerings to support higher-value contracts and reduce dependence on commoditized manufacturing services. • Management expects the Lexington expansion to strengthen its sterile fill-finish capabilities and complete its integrated ADC service offering. • Management indicated that the Lexington expansion remains on track, although the supplied summary does not specify a commissioning date. • Management confirmed that a new microbiology laboratory at Lexington has already been commissioned. • Management expects its expanded ADC capabilities to support integrated customer programmes across development and manufacturing. • Management strengthened its biologics platform through the acquisition of a controlling stake in Yapan Bio. • Management expects the Yapan Bio acquisition to expand the company's biologics development and manufacturing capabilities. • Management expects India and North American manufacturing facilities to remain important contributors to CDMO growth. • Management expects Complex Hospital Generics to benefit from the acquired Kenalog portfolio and continued growth in inhalation anesthesia outside the US. • Management expects Kenalog to remain an important FY27 growth driver following its contribution to Q2 revenue. • Management intends to continue investing in complex generics, differentiated injectables and specialty hospital products. • Management expects its existing Sevoflurane and Intrathecal Baclofen franchises to support the Complex Hospital Generics business. • Management expects Consumer Healthcare growth to be supported by Power Brands, e-commerce expansion and premiumization. • Management intends to prioritize fewer but larger consumer product launches with stronger revenue and margin potential. • Management expects the recently launched Vizible skincare range under Lacto Calamine to support portfolio expansion. • Management expects e-commerce to remain an important distribution and growth channel for Consumer Healthcare. • Management is focusing on higher-value consumer products and improving the contribution of established Power Brands. • Management expects the Bayer sales and distribution agreement to expire naturally in December 2026. • Management estimates that the Bayer agreement's expiry will affect FY27 consolidated revenue by less than 2%. • Management expects no material impact on its upgraded FY27 revenue guidance from the Bayer agreement's expiry. • Management indicated that the Bayer distribution business generated relatively low EBITDA margins of approximately 4.5%. • Management estimates that excluding the Bayer business could improve the consolidated EBITDA margin mix by approximately 50 basis points. • Management expects the lower-margin Bayer business exit to reduce reported revenue while potentially improving overall profitability mix. • Management has not provided a precise FY27 EBITDA margin target or profit-after-tax guidance in the supplied presentation. • Management expects strong CDMO order inflows, acquired product contributions and improved operating performance to support its FY27 outlook. • Management's upgraded guidance remains dependent on timely project execution, customer demand, capacity utilization and successful integration of acquired businesses. • Q2 FY27 consolidated revenue increased approximately 28% YoY and 15% QoQ to ₹2,617 Cr. • Q2 FY26 revenue stood at approximately ₹2,044 Cr, providing the comparison for the reported year-on-year growth. • Q2 EBITDA increased approximately 72% YoY and 35% QoQ to ₹385 Cr. • Q2 FY26 EBITDA stood at approximately ₹224 Cr. • Q2 EBITDA margin improved to 14.7% from approximately 11.0% in Q2 FY26. • EBITDA margin expanded approximately 372 basis points YoY, reflecting improved business mix and operating performance. • Q2 profit before tax stood at ₹82 Cr compared with a loss before tax of ₹46 Cr in Q2 FY26. • Q2 profit after tax improved to ₹5 Cr compared with a net loss of ₹99 Cr in the corresponding previous-year quarter. • Despite strong EBITDA growth, net profitability remained modest because of interest expenses, depreciation and other below-EBITDA charges. • Q2 interest expenses increased to approximately ₹88 Cr from ₹82 Cr a year earlier. • Q2 depreciation increased to approximately ₹233 Cr from ₹203 Cr in Q2 FY26. • H1 FY27 revenue increased approximately 23% YoY to ₹4,887 Cr. • H1 EBITDA increased approximately 72% YoY to ₹669 Cr. • H1 EBITDA margin stood at approximately 13.7%. • H1 net loss narrowed to ₹64 Cr from ₹181 Cr in H1 FY26. • CDMO revenue increased approximately 36% YoY to ₹1,424 Cr during Q2 FY27. • CDMO remained the strongest growth contributor, supported by commercial manufacturing demand, execution improvements and higher capacity utilization. • The company added 22 new CDMO customers during H1 FY27. • The Phase III molecule pipeline increased to 28 from 25 in March 2026. • On-patent commercial manufacturing revenue increased approximately 39% YoY during H1 FY27. • Antibody-drug conjugate services revenue increased approximately 51% YoY, reflecting growing demand for specialized development and manufacturing capabilities. • Innovation-related work contributed approximately 49% of CDMO revenue compared with around 46% in H1 FY26. • Differentiated service offerings contributed approximately 43% of CDMO revenue compared with 36% a year earlier. • The increasing contribution from innovation-related and differentiated services indicates an improving CDMO revenue mix. • Complex Hospital Generics revenue increased approximately 32% YoY to ₹849 Cr during Q2 FY27. • Growth in Complex Hospital Generics was supported by inhalation anesthesia products outside the US and the acquired Kenalog portfolio. • The company maintained its number-one US market position in Sevoflurane and Intrathecal Baclofen, according to the supplied company disclosures. • US Sevoflurane value market share stood at approximately 48%. • Consumer Healthcare revenue increased approximately 13% YoY to ₹359 Cr during Q2 FY27. • H1 Consumer Healthcare revenue increased approximately 14% YoY to ₹706 Cr. • Consumer Healthcare Power Brands revenue increased approximately 21% YoY during H1 FY27. • Power Brands contributed approximately 53% of Consumer Healthcare revenue. • Consumer Healthcare e-commerce revenue increased approximately 32% YoY during H1 FY27. • E-commerce contributed approximately 28% of Consumer Healthcare sales. • Media and trade promotion spending stood at approximately 11% of Consumer Healthcare sales. • The Consumer Healthcare distribution network included more than 180,000 chemists and cosmetic stores. • The business also operated through approximately 13,000 modern-trade outlets and more than 20 e-commerce platforms. • Bayer distribution revenue stood at approximately ₹475 Cr during FY26, representing around 5% of consolidated turnover. • Management indicated that the Bayer agreement's low-margin profile limits the expected profitability impact from its expiry. • Net debt increased to approximately ₹4,859 Cr in September 2026 from ₹4,164 Cr in March 2026. • Net debt increased by approximately ₹695 Cr during H1 FY27, remaining a significant balance-sheet concern. • Total equity stood at approximately ₹8,165 Cr in September 2026 compared with ₹8,162 Cr in March 2026. • Net working capital increased to approximately ₹2,260 Cr from ₹2,081 Cr in March 2026. • Net fixed assets increased to approximately ₹10,448 Cr from ₹9,784 Cr, reflecting the company's asset and investment base. • Higher net debt and working-capital requirements remain important factors affecting cash generation and financial flexibility. • The company reported 12 regulatory inspections and 110 customer audits during H1 FY27. • Since FY2012, the company reported successfully clearing 427 regulatory inspections, including 51 US FDA inspections. • The company also reported completing 2,230 customer audits over the same historical period. • Management reported no US FDA Official Action Indicated classifications across its disclosed inspection track record. • The company's regulatory compliance record supports customer confidence in its complex pharmaceutical development and manufacturing capabilities. • Key risks include elevated net debt, higher financing expenses and limited conversion of strong EBITDA growth into net profit. • Additional risks include CDMO project delays, capacity utilization fluctuations, Lexington expansion execution and Kenalog integration. • The expiry of the Bayer agreement creates a revenue headwind, although the relatively low margin of that business may improve consolidated profitability mix. • Regulatory compliance remains a critical risk because adverse inspection outcomes could disrupt pharmaceutical manufacturing and customer relationships. • Increasing working capital and fixed-asset investments could create additional pressure on free cash flow and deleveraging. • Overall outlook remains positive on operating performance, supported by 28% Q2 revenue growth, 72% EBITDA growth and the upgraded FY27 revenue growth guidance of 19–20%. • Key H2 FY27 monitorables include CDMO order execution, continued growth in differentiated services, Kenalog contribution, Lexington expansion progress and improvement in EBITDA margins. • Debt reduction, working-capital efficiency and stronger EBITDA-to-PAT conversion will be important for assessing the sustainability of the company's financial recovery. • The reported segment revenue figures do not reconcile exactly with consolidated revenue in the supplied summary; they are presented as reported rather than adjusted. • This summary is based on the supplied Q2 and H1 FY27 press release and investor presentation dated 27 October 2026, not a full earnings-call discussion transcript. Management outlook statements are forward-looking expectations rather than guaranteed outcomes.

PIRAMAL PHARMA LIMITED

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