ALIVUS LIFE SCIENCES Q2 CONCALL: RETAINS FY27 REVENUE GROWTH GUIDANCE OF 10–12% & EBITDA MARGIN OF 35–36%; TARGETS DOUBLING CDMO BUSINESS IN 3–4 YEARS

• **FY27 Revenue Guidance:** Management reiterated its revenue growth guidance of 10–12%, supported by new product launches, generic API demand and CDMO growth. • **FY27 EBITDA Margin Guidance:** Management maintained its full-year EBITDA margin target of 35–36%, supported by improved product mix and operating efficiencies. • **FY28 Margin Outlook:** Management aims to sustain EBITDA margins near FY27 guided levels. It indicated 30–32% as a downside planning range if expected improvements do not materialize. • **H2 FY27 Outlook:** Management expects stronger GPL revenue contribution in H2, while non-GPL revenue could remain broadly flat or slightly below recent quarterly levels. • **GPL Revenue Guidance:** Management expects FY27 GPL revenue of approximately ₹700–750 Cr, supported by its historically stronger second-half performance. • **Non-GPL Business:** Revenue increased 20.8% YoY in Q2 and contributed approximately 79% of total revenue. Management expects quarterly revenue to remain around the ₹500 Cr level over the next couple of quarters. • **CDMO Long-Term Guidance:** Management aims to double the CDMO business over the next 3–4 years, targeting a revenue contribution of approximately 12–15% of total sales. • **CDMO Q2 Performance:** Revenue increased nearly 80% YoY and 32.3% QoQ to ₹50 Cr, supported by higher demand from existing projects. • **CDMO Project Pipeline:** Company currently has five active projects, with additional projects under advanced discussions. Management expects at least one more project addition and hopes to close further opportunities in H1 FY28. • **CDMO Growth Outlook:** Management expects FY27 CDMO performance to improve significantly over FY26 but cautioned that quarterly revenue can fluctuate depending on project execution. • **Sholapur Facility:** Phase 1 of the new manufacturing facility is expected to become operational in Q3 FY27. • **Sholapur Growth Potential:** Management expects the facility to become a significant growth driver over the next 2–3 years, supporting API manufacturing, intermediates and larger CDMO opportunities. • **Sholapur Manufacturing Strategy:** The facility will initially focus on intermediates and backward integration, with plans to expand into regulated-market API manufacturing after relevant regulatory approvals. • **Sholapur Asset Utilization:** Management expects asset turnover to improve over the next 2–3 years toward existing business levels, although initial utilization and returns will be lower during the ramp-up. • **High-Potency API Pipeline:** Company has 30 products under development, representing a total addressable market of approximately $86 billion. Of these, 14 have been validated, seven are in advanced development and nine are at the laboratory stage. • **High-Potency API Commercialization:** Management expects most products to become commercially available between late FY28 and FY33–FY34, depending on patent expiries and customer launches. • **US DMF Pipeline:** Company has approximately 160 US DMF filings, of which 90–100 products are commercially contributing. Around 60 products are awaiting patent expiry, with most expected to offer commercialization opportunities over the next 3–5 years. • **Global Regulatory Filings:** Company had more than 630 DMF and CEP filings globally as of September 2026. • **Formulation Development:** Through its IQGenX platform, company plans to develop approximately 25–30 formulation dossiers over the next three years, with a target of 10–12 filings annually. • **Formulation Commercialization:** Management expects the new formulation portfolio to begin contributing commercially in approximately 3–4 years. • **New Manufacturing Facility:** Management is evaluating an in-house oral solid formulation manufacturing facility, which could take approximately 18–24 months to establish. No final investment decision has been announced. • **Flow Chemistry:** Company has commercialized one project using flow chemistry, reducing production costs to less than half of the earlier batch-processing cost. • **Flow Chemistry Expansion:** Management plans to commercialize five additional flow chemistry projects over approximately 18–24 months. • **Pellet Product Pipeline:** Company has developed 15 pellet-based products and plans to validate them over the coming year, creating opportunities in ready-to-use pharmaceutical intermediates and formulations. • **Gross Margin Outlook:** Management indicated that gross margins around the 60% level remain achievable, supported by high-value product launches and favorable revenue mix. • **New Product Margin Sustainability:** Management indicated that newly launched products typically enjoy higher margins for approximately 18–24 months before normalization. Continued launches are expected to help sustain profitability. • **Pricing Environment:** Management described generic API pricing as relatively stable, with lower price erosion during H1 FY27 compared with previous periods. • **Raw Material Costs:** Management has largely passed through raw material inflation to customers, while strategic inventory purchases have helped manage cost pressures. • **Q2 Revenue:** Revenue from operations increased 16% YoY to ₹682 Cr, supported by new launches and demand across regulated and emerging markets. • **Q2 EBITDA:** EBITDA increased 47% YoY to ₹285 Cr, with a reported margin of 41.8%, up 880 bps YoY. Adjusted EBITDA margin excluding one-time income was approximately 39.5%. • **Q2 Profitability:** PAT stood at ₹197 Cr, with a PAT margin of 28.9%, up 680 bps YoY. • **H1 FY27 Financials:** Revenue increased 11.1% YoY to ₹1,322 Cr, EBITDA increased 38.4% to ₹519 Cr, and PAT reached ₹357 Cr. • **R&D Investments:** R&D expenditure stood at ₹27 Cr during Q2, representing approximately 4% of revenue. • **Capital Expenditure:** Company incurred ₹105 Cr capex during Q2 and ₹190 Cr during H1 FY27, primarily supporting capacity and development initiatives. • **Balance Sheet:** Company remains net debt-free, with cash and short-term investments of ₹1,012 Cr as of September 2026, supported by ₹270 Cr of free cash flow. • **Inorganic Growth Strategy:** Management continues evaluating acquisitions that complement its existing API platform, while prioritizing strategic synergies over expansion for its own sake. • **Key Challenges:** Higher GPL contribution may moderate consolidated margins in H2. Crude-linked solvent inflation, CDMO project variability, patent-expiry timelines and execution of new manufacturing facilities remain important factors.

ALIVUS LIFE SCIENCES LTD

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