DIVIDEND

Your Company has paid an interim dividend of 400%
i.e., ' 4.00 per equity share of Re.1 for the financial year
2025-26. No dividend was paid during the financial year
2024-25 however the Company bought back shares for
an aggregate value of ' 7,500 million.

Pursuant to Regulation 43A of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations,
2015, top 1,000 listed entities based on market
capitalisation are required to formulate a Dividend
Distribution Policy.The Board approved and adopted the
Dividend Distribution Policy and the same is available on
your Company's website:https://www.aurobindo.com/
investors/disclosures-under-regulation-46/dividend-
distribution-policies

PERFORMANCE REVIEW:

Your Company is one of the leading generic pharma
companies globally. Your Company is also the largest
supplier in the USA by prescription volume as per IQVIA
data for the year ending March 31, 2026.

On a standalone basis, your Company's revenue
increased by 2.2% to ' 111,717 million in FY26, as
against ' 109,333 million in the corresponding previous

period.The Formulations business increased by 5.7% to
' 105,802 million. Profit Before Depreciation, InterestTax
and Exceptional Items for FY26 increased by 27.5% to
' 36,795 million, compared to ' 28,857 million in FY25.
Profit Before Tax for the year increased by 34.1% Y-o-Y
to ' 31,636 million. Your Company's Net Profit After Tax
(before Other Comprehensive Income) increased by
38.2% to ' 24,148 million as against ' 17,568 million
in FY25.

On a consolidated basis, the revenue increased by
6.1% to ' 336,531 million. The formulations business
(excluding Puerto Rico) increased by 8.1% to ' 296,060
million from ' 273,882 million in the corresponding
previous period. The Active Pharmaceutical Ingredients
(APIs) business posted a decline of 6.4% to ' 40,469
million vs. ' 43,229 million in FY25. Profit Before
Depreciation, Interest, Tax and Exceptional Items stood
at ' 73,393 million, witnessing a 2.3% increase Y-o-Y.
Profit Before Tax for the year stood at ' 51,119 million,
compared to ' 50,663 million in the previous year. Your
Company reported a Net Profit After Tax (before Other
Comprehensive Income) of ' 35,030 million in FY26, vs.
' 34,836 million in FY25.The Diluted Earnings Per Share
(reported) stood at ' 60.34 in FY26, compared to ' 59.81
in FY25.

The US is the largest market for your Company and
accounted for 43% of the total revenue. US revenue
decreased marginally by 2.7% to ' 144,083 million.Your
Company launched 42 products in FY26.Your Company's
market share by prescription volume (IQVIA TRX) in the
US, for the MAT (Moving Annual Total) ending March
2026 stands at 10.5%, positioning your Company as the
largest generic pharmaceutical player.

Your Company continues to strengthen its pipeline
for the global markets including the US market. As on
March 31, 2026, your Company filed 888 Abbreviated
New Drug Applications (ANDAs) on a cumulative basis.
Of the total count, 728 have received final approvals
and 35 received tentative approvals and 125 ANDAs are
currently under review.

Your Company's revenue in its Europe formulations
business was ' 103,513 million in FY26 reporting a
strong growth of 23.4% compared to ' 83,559 million
in FY25.

Your Company now operates in ten countries in EU/
UK and is present across multiple channels including
pharmacy, hospital and tender business.

The ARV formulations business stood at ' 13,838 million
in FY26, increased by 33.5% compared to ' 10,367
million in FY25.

Growth Markets segment, including Brazil, Canada,
Columbia and South Africa and others, grew by 10.0%
Y-o-Y to ' 34,986 million

OUTLOOK:

FY26 witnessed stable performance across the
Company's businesses and markets, supported by
sustained demand, operational resilience and continued
execution of strategic priorities. The Europe business
achieved a significant milestone with revenues crossing
the EUR 1 billion mark, reflecting the strength of the
Company's diversified portfolio and market presence.
During the year, the Company further strengthened
its integrated manufacturing network with the Pen-G
and 6-APA facilities achieving operational stability,
reinforcing backward integration initiatives and
supply chain reliability, while ongoing ramp-up across
newly commercialised plants continued to enhance
manufacturing capabilities and operational efficiencies.
With stable performance across markets and businesses,
continued focus on execution excellence, portfolio
expansion and manufacturing integration, the Company
remains well positioned to pursue sustainable long-term
growth amidst evolving global market dynamics.

Your Company made significant progress in advancing
the biosimilar programs during the year with two
biosimilars receiving approval from the European
Medicines Agency (EMA) and, one biosimilar receiving

approval from Health Canada. Through continued focus
on R&D, the Company has advanced the complex
product portfolio.The Company is also developing state-
of-the-art infrastructure to enable commercial-scale
production of multiple biosimilars, thereby enhancing
existing mammalian and microbial drug substance
manufacturing capacities, as well as fill-and-finish
operations for pre-filled syringes and vials.

Your Company maintains its strong position in the key
geographies of the US and Europe and is poised to
grow through new launches and increasing access. In
the US, your Company has filed 888 ANDAs till March
31, 2026, with estimated total market potential of US$
192 billion as per IQVIA data. Out of the total ANDAs
filed, 728 have received final approval, while 160 ANDAs
are in different stages of the review process. During
the year, your Company filed 29 ANDAs with the US
FDA, including 4 ANDAs for specialty products, and
received final approvals for 37 products including 3 for
specialty products.

For the Europe market, your Company has achieved a
significant milestone by crossing EUR 1bn revenues in
FY26. With operations in ten countries with full-fledged
pharmacy, hospital and tender sales infrastructure, it
now ranks amongst the top 10 generic pharmaceutical
companies in 8 countries of Europe. Your Company
aims to expand its market share and grow through new
launches and sustain the growth momentum.

Your Company maintained its leadership position in the
ARV market during the year by leveraging supplementary
business opportunities and strengthening customer
engagement across key markets. Despite continued
price erosion in certain products, efficient capacity
utilisation, operational optimisation and award of new
and supplementary contracts supported sustained
performance and reinforced the Company's strong
position in Dolutegravir-based regimens, which continue
to remain the standard therapy for HIV treatment.

Your Company continues to strengthen its presence in
Growth Markets through new product launches, market
share expansion and entry into new geographies. During
the year, the manufacturing facility atTaizhou received EU
GMP and Chinese GMP and has commenced supplies to
the European market, supporting margin improvement
and witnessing a steady ramp-up in operations. In China,
the Company had received 18 product approvals up to
March 31, 2026, with manufacturing planned across its
facilities in India. In Canada, the Company's portfolio
expanded to 220 approved products, while 62 additional
products were awaiting final approval as at the end
of FY26.

RESEARCH AND DEVELOPMENT (R&D)

Your Company remains committed to providing
affordable, high-quality medicines to positively impact

patients worldwide. Aurobindo Pharma's overall R&D
set-up includes 6 centres and a dedicated team of
more than 1,500 world class scientific experts who
continue to drive a relentless pursuit of excellence.
The state-of-the-art laboratories, advanced equipment,
and modern technologies provide a conducive
environment for conducting experiments, analysis, and
formulation development.

The Company's R&D expenditure stood at ' 1,590 crore
(4.7% of revenue) in FY26 and at ' 1,622 crore (5.1% of
revenue) in FY25.Your Company's R&D efforts are aimed
towards developing biosimilars, generic APIs, generic
formulations including orals, injectables, complex
products like inhalers, nasal sprays, depot injections
and transdermal patches. Your Company's focus on
Specialty Drug Delivery System (SDDS) demonstrates its
commitment to delivering novel solutions that address
unmet medical needs.

Your Company's focus on capability development has
contributed significantly to the success in submitting
Drug Master Diles (DMFs), Abbreviated New Drug
Applications (ANDAs) and formulation dossiers. During
the year, your Company has filed 29 ANDAs and received
approvals for 37 ANDAs.

ENVIRONMENT, HEALTH AND SAFETY (EHS)
Environment

Environmental conservation has been critical for our
Company, and it has been assigned the highest level of
priority across the units.To accomplish this sustainability
goal, we are increasing our focus on renewable energy
use, enhancing energy efficiency, increasing the share
of hazardous waste co-processing, reusing/ recycling
100% of non-hazardous waste, responsible water use,
water conservation, managing resources responsibly,
and expanding green belts around our facilities.

Aurobindo Pharma Limited has deepened its renewable
energy focus and intends to make equity investments
of 26% each in Garuda Renewables Private Limited and
Swarnaakshu Solar Power Private Limited for long¬
term clean power supply, reinforcing its commitment
to sustainability and decarbonization.

Health & Safety

Health, safety, and well-being of our employees and
associates is a key material topic and remains paramount.
We are committed to instilling a healthy lifestyle and a
safe working environment. Our EHS&S framework and
management practices ensure regulatory compliance
while prioritizing product, process and employee safety.
Each manufacturing facility has a departmental and
plant safety committee. Monthly management review
meetings are conducted, involving top management
from the corporate office along with representatives
from all sites, including site heads, to review safety
performance and streamline operational procedures

critical to safety requirements. In addition, daily
lean management meetings are held with the senior
leadership team to track actions and drive continuous
improvement. Comprehensive health and safety
training is provided to both permanent and contractual
employees, ensuring awareness and adherence to safe
procedures and guidelines.

Risk identification and assessments are integral part of
the process and especially prior to scaling up. Hazard and
Operability (HAZOP) studies are conducted prior to the
start of new chemical processes and for major process
modifications in the manufacturing area. Both qualitative
and quantitative risk assessments are carried out to
establish effective control measures. Safety performance
is evaluated monthly through an EHS scorecard, which
provides insights into organizational safety performance
using defined Key Performance Indicators (KPIs). Inter¬
unit audits are conducted to identify gaps and drive
performance improvement. Regular knowledge-sharing
sessions facilitate the dissemination of best practices
across manufacturing facilities.

Engagement in national and global initiatives on
Antimicrobial Resistance (AMR)

As part of our commitment to addressing global health
challenges, Aurobindo Pharma actively participates in
national and international initiatives on Antimicrobial
Resistance (AMR). The Company engages with the
Netherlands-based Access to Medicine Foundation
through the AMR Benchmark, which evaluates a
core group of global pharmaceutical manufacturers
across three key areas—Responsible Manufacturing,
Appropriate Access, and Stewardship—with a focus on
Low- and Middle-Income Countries (LMICs).The 2026
AMR Benchmark assessed 25 pharmaceutical companies,
including seven large research-based firms, ten generic
medicine manufacturers, and eight small and medium¬
sized enterprises (SMEs). Aurobindo Pharma has
consistently participated in this benchmark since 2018,
including the 2021 and 2026 editions, demonstrating
its ongoing commitment to combating antimicrobial
resistance. The company was recognized as a top
performer in the AMR Benchmark 2026, conducted by
the Access to Medicine Foundation, marking its second
consecutive recognition and reaffirming its leadership in
responsible antibiotic manufacturing and stewardship.

The Company is a full member of the Pharmaceutical
Supply Chain Initiative (PSCI) and adheres to its five
core principles, encompassing ethics, labour, health
and safety, environment, and management systems as
part of its responsible supply-chain practices. Under this
framework, the Company's manufacturing facilities are
subject to periodic assessments, and we also conduct
assessment of our key suppliers to ensure adherence
to these principles across the value chain, reflecting our
commitment to best practices in Pharmaceutical Industry.

The Company is also a member of the AMR Industry
Alliance, which promotes collective action to address

aims to address antimicrobial resistance through
responsible manufacturing, improved access to quality
medicines, reducing environmental concerns, and
transparent industry collaboration and in addition
participated every year between 2020-2023 in the AMR
Industry Alliance Survey.

AWARDS AND ACCOLADES

Best HRM strategy of the year- 12^th chro confex and
awards 2025

Apitoria Pharma Private Limited is now officially Great
Place to Work® Certified™ for 2025-2026

CII Award

Apitoria Pharma Private Limited's Unit 1 has been
recognised in 3 different categories, at the recent
CII Competition on Digitalisation and AI for Quality
Improvements in the Manufacturing Sector.

• Platinum award of the Data Analytics Utilisation
category for Utility & Process Atomisation and Data
Acquisition implemented at Block-4 CEPH Area

• Gold award for the Sustainable Digital
Transformation category for Utility Management
System implemented at Central Utility Non-
Ceph Area

• Silver award for the Data Analytics Utilisation
category for Digitalisation of Safety Incident/
Accident & CAPA logging

Apitoria Pharma Private Limited Unit-1 has been
awarded in two different categories in the recently held
National Excellence Practice Competition organized
by CII.

• GOLD Recognition Winner: In the category of
Renewable Energy and Energy Savings, for
the project

• GOLD Recognition 2^nd Runner Up: In the category
of Operational Resource Planning, for the project -

Mechanization of material handling in the pharma
sector - in Metformin, GVNE & 7AVNA, Amorphous
and GABA products)

SUBSIDIARIES/JOINT VENTURES

As per the provisions of Section 129 of the Companies Act,
2013 read with the Companies (Accounts) Rules 2014, a
separate statement containing the salient features of the
financial statements of Subsidiary companies/Associate
companies/Joint ventures is detailed in Form AOC-1 and
is in Annexure-1 to this Report.

The Company has formulated a Policy for determining
Material Subsidiaries. The Policy is available on the
Company's website and can be accessed athttps://www.
aurobindo.com/investors/disclosures-underregulation-
46/policy-material-subsidiary

During the year, the following changes were implemented
in the subsidiaries / JVs of the Company:

New Subsidiaries / JVs

During the period under review the following subsidiary/
step-down subsidiary companies were incorporated:

1) CuraTeQ Biologics B.V., The Netherlands, was
incorporated as a 100% subsidiary by CuraTeQ
Biologics Private Limited, India, a wholly owned
subsidiary of the Company, on May 28, 2025.

2) Cresedemo Pharma LLC, USA, was incorporated
as a 100% subsidiary by Aurobindo Pharma USA
Inc., a wholly owned subsidiary of the Company, on
June 13, 2025.

3) Aurobindo Pharma (Malaysia) SDN. BHD., Malaysia,
was incorporated as a 100% subsidiary by Helix
Healthcare B.V., The Netherlands, a wholly owned
subsidiary of the Company on September 17, 2025.

4) CuraTeQ Biologics (Malta) Limited, Malta, was
incorporated as a 100% subsidiary by CuraTeQ
Biologics B.V., The Netherlands, a wholly owned
step-down subsidiary of the Company, on
September 26, 2025.

5) Aurobindo Pharma Chile SpA, Chile, was
incorporated as a 100% subsidiary by Helix
Healthcare B.V., The Netherlands, a wholly owned
subsidiary of the Company on October 07, 2025

6) Eugia Pharma Chile SpA, Chile, was incorporated
as a 100% subsidiary by Eugia Pharma B.V., The
Netherlands, a wholly owned step-down subsidiary
of the Company, on October 07, 2025.

7) Engenra Biologics Private Limited, India, was
incorporated as 100% subsidiary by the Company
on February 24, 2026.

8) Diadame Pharma SARL, Senegal, was acquired by
Arrow generiques SAS, France, on January 1,2026
and became a wholly owned stepdown subsidiary
of the Company.

9) Aurobindo Pharma Philippines Inc, Philippines,
was incorporated as a 100% subsidiary by Helix
Healthcare B.V., The Netherlands, a wholly owned
subsidiary of the Company, on January 23, 2026.

Changes in ownership / name of Subsidiaries /
JVs:

Pharmacin B.V., (a wholly owned subsidiary of Agile
Pharma BV) merged with Agile Pharma B.V., (a
wholly owned subsidiary of Helix Healthcare B.V., The
Netherlands) w.e.f. July 1, 2025.

Helix Healthcare B.V., The Netherlands, (a wholly
owned subsidiary) has transferred its 100% stake in
CuraTeQ Biologics s.r.o., Czech Republic (a wholly

owned subsidiary) to CuraTeQ Biologics B.V., The
Netherlands (a wholly owned step-down subsidiary)
w.e.f. July 29, 2025.

Auro Trading Private Limited, India, a wholly owned
subsidiary of the Company, changed its name and
converted into public limited company as Auropharm
Limited .

CONSOLIDATED FINANCIAL STATEMENTS

Consolidated Financial Statements have been prepared
by the Company in accordance with the Indian
Accounting Standards (Ind AS) 110 and 111 as specified
in the Companies (Indian Accounting Standards) Rules,
2015 and as per the provisions of the Companies Act,
2013. The Company has placed separately, the audited
accounts of its subsidiaries on its websitehttps://
www.aurobindo.com/investors/disclosures-under-
regulation-46/financials-subsidiaries in compliance with
the provisions of Section 136 of the Companies Act,
2013. Audited financial statements of the Company's
subsidiaries will be provided to the Members, on request.

CODE FOR PREVENTION OF INSIDER TRADING

Pursuant to SEBI (Prohibition of Insider Trading)
Regulations, 2015, as amended, ("SEBI PIT Regulations"),
the Company has in place a Code of Conduct to
regulate, monitor and report trading by the Designated
Persons and a code of practices and procedures for fair
disclosure of unpublished price sensitive information.
The code of practices and procedures for fair disclosure
of unpublished price sensitive information has been
made available on the Company's website athttps://
www.aurobindo.com/investors/corporate-governance/
code-of-practices-and-procedures-for-fair-disclosure.

During training sessions, all the employees and the
Designated Persons are informed about the regulatory
requirements of these codes for creating awareness
among them. Further, the Audit Committee reviews
the compliance with the provisions of SEBI PIT
Regulations on a quarterly basis and also verify that
the systems for internal control are adequate and are
operating effectively.

VIGIL MECHANISM

The Board of Directors have adopted the Whistle Blower
Policy which is in compliance with Section 177(9) of the
Companies Act, 2013 and Regulation 22 of the SEBI
(Listing Obligations and Disclosure Requirements)
Regulations, 2015. The Whistle Blower Policy aims to
conduct the affairs in a fair and transparent manner
by adopting the highest standards of professionalism,
honesty, integrity, and ethical behaviour. All permanent
employees and Whole-time Directors of the Company
are covered under the Whistle Blower Policy.

Under Whistle Blower Policy, a mechanism has been
established for employees to report their concerns
about unethical behaviour, actual or suspected fraud or
violation of the Code of Conduct and Ethics, and leak of
price-sensitive information under the Company's Code
of Conduct formulated for regulating, monitoring, and
reporting by Insiders under SEBI PIT Regulations, as
amended from time to time. It also provides for adequate
safeguards against the victimisation of employees who
avail of the mechanism and allows direct access to the
Chairperson of the Audit Committee in exceptional
cases. During the year, no complaints were reported
under the Whistle Blower Policy. The Whistle Blower
Policy is available on the Company's websitehttps://
www.aurobindo.com/api/uploads/disclosure under
regulation/Whistle%20Blower%20Policy-APL-New-
March2024.pdf

PREVENTION AND PROHIBITION OF SEXUAL
HARASSMENT

Your Company has a policy and framework for employees
to report sexual harassment cases at the workplace,
and the said process ensures complete anonymity
and confidentiality of information. Your Company
has constituted an Internal Complaints Committee in
compliance with the Sexual Harassment of Women at
Workplace (Prevention, Prohibition and Redressal) Act,
2013 and the Rules there under.The Company has a policy
on prevention and prohibition of sexual harassment at
the workplace.The policy provides for protection against
sexual harassment of women at the workplace and for
the prevention and redressal of such complaints. During
the year, the Company has not received any complaint.
The Company has been conducting regular awareness
programmes aimed at prevention of sexual harassment

The following is a summary of Sexual Harassment
complaint(s) received and disposed of during the
FY2025-26, pursuant to the POSH Act and Rules
framed thereunder:

Disclosure of Maternity Benefit Compliance

Your Company has been in compliance with the
provisions of the Maternity Benefit Act, 1961 for the year
under review.

MEETINGS OF THE BOARD

The Board and Committee meetings are prescheduled,
and a tentative calendar of the meetings is created, in
consultation with the Directors. However, in case of
special and urgent business needs, approval is taken
by passing resolutions through circulation. During the
year under review, five Board Meetings and five Audit
Committee Meetings were convened and held. The
details of the meetings including composition of the
Audit Committee and other committees are provided in
the Corporate Governance Report. During the year, all
the recommendations of the Audit Committee and other
committees were accepted by the Board.

DETAILS OF DIRECTORS AND KEY MANAGERIAL
PERSONAL

Key Managerial Personnel

Mr. K. Nithyananda Reddy (DIN:01284195), Vice Chairman
& Managing Director, Dr. M. Madan Mohan Reddy
(DIN: 01284266), Whole-time Director, Mr. Santhanam
Subramanian, Chief Financial Officer, and Mr. B. Adi
Reddy (M.No : ACS 13709), Company Secretary are
the Key Managerial Personnel of the Company in
accordance with the provisions of Section(s) 2(51), and
203 of the Companies Act, 2013 read with the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014.

None of the Directors of the Company are disqualified
under the provisions of the Companies Act, 2013 (the
"Act") or under the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (the "SEBI
Listing Regulations"). All Independent Directors have
provided confirmations as contemplated under section
149(7) of the Act. As required by the SEBI Listing
Regulations, a certificate from a Company Secretary in
practice, that none of the Directors on the Board of the
Company has been debarred or disqualified from being
appointed or continuing as Directors of Company by
SEBI, Ministry of Corporate Affairs or any such statutory
authority, forms part of Corporate Governance Report
as Annexure-A.

Changes in Board of Directors
During the year and upto the date of this report,
the members approved the appointment /
reappointment of the following Directors:

The members of the Company at their 38^th Annual
General Meeting held on September 10, 2025 re¬
appointed Mr. P. Sarath Chandra Reddy (DIN:01628013)
and Dr. Satakarni Makkapati (DIN: 09377266) as Directors
retire by rotation.

During the year, Dr. (Mrs.) Punita Kumar Sinha (DIN:
05229262) has been appointed through postal ballot as
Independent Director of the Company, not liable to retire

by rotation, for a period of 3 (Three) consecutive years
commencing from February 9, 2026 to February 8, 2029.

As per the provisions of the Act, Mr. K. Nithyananda
Reddy (DIN: 01284195) and Dr. M. Madan Mohan
Reddy (DIN: 01284266) will retire as Directors at the
ensuing Annual General Meeting and being eligible,
seek re-appointment. The Board recommends their
reappointment for the approval of the shareholders of
the Company.

During the year, the following directors resigned/
retired from the Board:

Dr. (Mrs.) Deepali Pant Joshi (DIN: 07139051) retired as
an Independent Director of the Company on close of
business hours of February 9, 2026 upon completion of
her term as an Independent Director of the Company.

DIRECTORS' RESPONSIBILITY STATEMENT

Pursuant to Section 134(3)(c) of the Companies Act,
2013, your Directors confirm that:

a. i n the preparation of the annual accounts, the
applicable accounting standards have been
followed along with proper explanation relating to
material departures, if any;

b. appropriate accounting policies have been selected
and applied consistently. Judgement and estimates
which are reasonable and prudent have been made
so as to give a true and fair view of the state of affairs
of your Company as at the end of the financial year
and of the profit of your Company for the year;

c. proper and sufficient care has been taken for the
maintenance of adequate accounting records in
accordance with the provisions of the Companies
Act, 2013 for safeguarding the assets of your
Company and for preventing and detecting fraud
and other irregularities;

d. the annual accounts have been prepared on an on¬
going concern basis;

e. proper internal financial controls have been laid
down to be followed by your Company and such
internal financial controls are adequate and are
operating effectively; and

f. proper systems to ensure compliance with the
provisions of all applicable laws have been
devised, and such systems are adequate and are
operating effectively.

DECLARATION FROM INDEPENDENT DIRECTORS

The Independent Directors have submitted the
declaration of independence stating that they meet the
criteria of independence as provided in sub-section
(6) of Section 149 of the Companies Act, 2013 as well

as clause (b) of sub-regulation (1) of Regulation 16 of
the SEBI Listing Regulations (including any statutory
modification(s) or re-enactment(s) thereof for the time
being in force) and confirmed that they have registered
their names in the Independent Directors' Data bank. In
terms of Regulation 25(8) of the SEBI Listing Regulations,
the Independent Directors have confirmed that they are
not aware of any circumstance or situation, which exist
or may be reasonably anticipated, that could impair or
impact their ability to discharge their duties.

BOARD DIVERSITY

The Company recognises and embraces the importance
of a diverse Board in its success.The Board has adopted
the Board Diversity Policy which sets out with an
approach to diversify the Board of Directors. The Board
Diversity Policy is available on the Company's website:
https://www.aurobindo.com/api/uploads/Policy-on-
Board-Diversity.pdf

BOARD EVALUATION

SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 mandate that the Board shall
monitor and review the Board evaluation framework.
The Companies Act, 2013 states that a formal annual
evaluation needs to be conducted by the Board of its own
performance and that of its committees and individual
Directors. Schedule IV of the Companies Act, 2013
states that the performance evaluation of Independent
Directors shall be conducted by the entire Board of
Directors, excluding the Director being evaluated.

The Annual Performance Evaluation was conducted for
all Board Members, for the Board and its Committees
for the financial year 2025-26. This evaluation was led
by the Nomination and Remuneration/Compensation
Committee of the Company. The Board evaluation
framework has been designed in compliance with the
requirements under the Companies Act, 2013 and the
Listing Regulations and in accordance with the Guidance
Note on Board Evaluation issued by SEBI. The Board
evaluation was conducted through questionnaires
designed with qualitative parameters and feedback
based on ratings.

Evaluation of Committees was based on criteria such as
adequate independence of each Committee, frequency of
meetings and time allocated for discussions at meetings,
functioning of Board Committees and effectiveness of its
advice/recommendation to the Board, etc.

Evaluation of Directors was based on criteria such as
participation and contribution in Board and Committee
meetings, representation of shareholders interest
and enhancing shareholders value, experience, and
expertise to provide feedback and guidance to the top
management on business strategy, governance, risk and
understanding of the organisation's strategy, etc.

POLICY ON DIRECTORS' APPOINTMENT AND
REMUNERATION

The policy of the Company on Directors' appointment
and remuneration, including criteria for determining
qualifications, positive attributes, independence of
a director and other matters are adopted as per the
provisions of the Companies Act, 2013.The remuneration
paid to the Directors is as per the terms laid out in the
Nomination and Remuneration Policy of the Company.
The Nomination and Remuneration Policy as adopted by
the Board is available on the Company's website:https://
www.aurobindo.com/api/uploads/Remuneration-Policy-
Feb2025.pdf

TRANSFER TO RESERVES

Your Company has not transferred any amount to
reserves during the year under review.

LOANS, GUARANTEES AND INVESTMENTS

Loans, guarantees and investments covered under
Section 186 of the Companies Act, 2013 form part of
the Notes to the financial statements provided in this
Annual Report.

CONTRACTS OR ARRANGEMENTS WITH RELATED
PARTIES

All transactions entered with Related Parties for the
year under review were on arm's length basis and in
the ordinary course of business. All Related Party
transactions are mentioned in the Notes to the Financial
Statements. The Company has developed a framework
through Standard Operating Procedures for the purpose
of identification and monitoring of such Related
Party Transactions. A statement giving details of all
Related Party Transactions are placed before the Audit
Committee and the Board for review and approval. The
policy on Related PartyTransactions, as approved by the
Board of Directors, has been uploaded on the website
of the Companyhttps://www.aurobindo.com/investors/
disclosures-under-regulation-46/policy-on-rpt

The particulars of contracts or arrangements with
Related Parties referred to in sub-section (1) of Section
188 of the Companies Act, 2013 is prepared in Form No.
AOC-2 pursuant to clause (h) of sub-section (3) of Section
134 of the Act and Rule 8(2) of the Companies (Accounts)
Rules, 2014 and is in Annexure-2 to this Report.

There were no materially significant Related Party
Transactions which could have potential conflict with
the interests of the Company at large.

CONSERVATION OF ENERGY, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS
& OUTGO

Information with respect to conservation of energy,
technology absorption, foreign exchange earnings &

outgo pursuant to Section 134(3)(m) of the Act read with
Companies (Accounts) Rules, 2014 is in Annexure-3 to
this Report.

ANNUAL RETURN

Pursuant to Section 92(3) read with Section 134(3)(a) of
the Act, the Annual Return of the Company as on March
31, 2026, is available on the Company's website and can
be accessed at:https://www.aurobindo.com/investors/
disclosures-under-regulation-46/annual-returns

RISK MANAGEMENT COMMITTEE

Risk Management Committee of the Company consists
of two Independent Directors viz. Mr. Girish Paman
Vanvari as Chairman and Mr. Santanu Mukherjee and
one executive director viz. Dr. M. Madan Mohan Reddy
as members as on March 31,2026 and the details of the
meetings including composition and terms of reference
of the Risk Management Committee are provided in the
Corporate Governance Report.

The Company has established a separate department to
monitor the enterprise risk and for its management.The
Committee had formulated a Risk Management Policy for
dealing with different kinds of risks which the Company
faces in its day-to-day operations.The Risk Management
policy of the Company outlines a framework for
identification of internal and external risks specifically
faced by the Company, in particular including financial,
operational, sectoral, sustainability (particularly, ESG
related risks), information, cyber security risks, or any
other risk as may be determined by the Committee;
measures for risk mitigation including systems and
processes for internal control of identified risks; and
Business continuity plan. Risk is an integral part of the
Company's business and sound risk management is
critical to the success of the organisation. The Company
has adequate internal financial control systems and
procedures to combat the risk. The risk management
procedure is reviewed by the Audit Committee and
Board of Directors on a regular basis at the time of
review of the quarterly financial results of the Company.
A report on the risks and their management is enclosed
as a separate section forming part of this report.

AUDITORS & AUDITORS' REPORT

Pursuant to Section 139 (2) of the Companies Act, 2013,
read with the Companies (Audit and Auditors) Rules, 2014,
the Company at its 35^th Annual General Meeting (AGM)
held on August 2, 2022, had appointed M/s. Deloitte
Haskins & Sells, Chartered Accountants, as Statutory
Auditors of the Company for a period of 5 years i.e. up
to the conclusion of the 40^th AGM to be held in the year
2027. The Auditors have confirmed that they are not
disqualified from continuing as Auditors of the Company.

Further, in accordance with the circular dated January 7,
2026 issued by the National Financial Reporting Authority,
the Board, at its meeting held on February 9, 2026, upon
the recommendation of the Audit Committee and in
consultation with the Statutory Auditors, approved the
framework to ensure effective two-way communication
between Those Charged with Governance and the
Statutory Auditors.

The Statutory Auditors' report forms part of the Annual
Report. The notes on financial statements referred to in
the Auditors' Report are self-explanatory and do not call
for any further comments. There are no specifications,
reservations, adverse remarks on disclosure by the
statutory auditors in their report.They have not reported
any incident of fraud to the Audit Committee of the
Company during the year under review.

INTERNAL AUDITORS

M/s. Ernst & Young LLP are the Internal Auditors
of the Company and to maintain its objectivity and
independence, the Internal Auditors report to the
Chairman of the Audit Committee. The scope and
authority of the Internal Audit function is clearly defined
by the Audit Committee of the Board. The Internal
Auditors monitor and evaluate the efficacy and adequacy
of the internal control system of the Company, its
compliance with applicable laws/ regulations, accounting
procedures and policies. Based on the reports of the
Internal Auditors, corrective actions will be undertaken,
thereby strengthening the controls. Significant audit
observations and action plans were presented to the
Audit Committee of the Board on a quarterly basis.

COST RECORDS AND COST AUDIT

During the year under review, pursuant to Section 148
of the Companies Act, 2013 read with the Companies
(Audit and Auditors) Rules, 2014 and the Companies
(Cost Records and Audit) Rules, 2014, the Company
is maintaining the cost records as its business is
covered under the regulated sector viz. drugs and
pharmaceuticals. Audit of the Company's cost records
is not applicable for the financial year 2026-27 since the
Company's revenues from exports, in foreign exchange,
exceed 75% of its total revenues.

INTERNAL FINANCIAL CONTROLS AND THEIR
ADEQUACY

The internal financial controls (IFC) framework
institutionalised in Aurobindo has been evaluated in¬
depth for its adequacy and operating effectiveness,
wherein the Company has covered financial reporting
controls, operational controls, compliance-related
controls and also Information Technology (IT) controls,
comprising IT general controls (ITGC) and application-
level controls. The ITGC would include controls over
IT environment, computer operations, access to

programmes and data, programme development and
programme changes. The application controls would
include transaction processing controls in ERP Oracle
system which supports accurate data input, data
processing and data output, workflows, reviews and
approvals as per the defined authorisation levels.

To further strengthen the existing IFC framework
and support the growing business, the Company has
redefined all the process level controls at activity level
which has brought in more clarity and transparency in
day-to-day processing of transactions and in addressing
any related risks. All the controls so redefined and
identified have been properly documented and tested
with the help of an independent auditor to ensure their
adequacy and effectiveness.

The Internal Auditors conduct 'Process & control review'
on a quarterly basis as per the defined scope and submit
the audit findings along with management comments
and action taken reports to the Audit Committee for
its review.

The IFC framework at Aurobindo ensures the following:

• Establishment of policies and procedures,
assignment of responsibility, delegation of
authority, segregation of duties to provide a basis
for accountability and controls;

• Physical existence and ownership of assets at a
specified date;

• Enabling proactive anti-fraud controls and a risk
management framework to mitigate fraud risks to
the Company;

• Recording of all transactions occurred during a
specific period. Accounting of assets, liability,
and revenue and expense components at
appropriate amounts;

• Preparation of financial information as per the
timelines defined by the relevant authorities.

These controls cover the policies and procedures
adopted by the Company for ensuring the orderly and
efficient conduct of its business including adherence
to the Company's policies, safeguarding of its assets
of the Company, prevention and detection of its
frauds and errors, accuracy and completeness of
accounting records and timely preparation of reliable
financial information. The Company has an internal
control system, commensurate with the size, scale and
complexity of its operation.

SECRETARIAL AUDIT REPORT

Pursuant to the provisions of Section 179 and 204 of
the Companies Act, 2013 and Rule 9 of the Companies

(Appointment and Remuneration of Managerial
Personnel) Rules, 2014 read with regulation 24A of the
SEBI (Listing Obligations and Disclosures requirements)
2015 as amended from time to time, the Company at its
38^th Annual General Meeting (AGM) held on September
10, 2025 had appointed M/s. MRR & ASSOCIATES, (FRN:
S2025TS1022400), a Peer reviewed Company Secretary
in Practice by the Institute of Company Secretaries of
India, as Secretarial Auditors of the Company for a
period of 5 years i.e. up to the Financial Year 2029-30.
The Secretarial Audit Report issued in form MR-3 is in
Annexure- 4 of this Report.

As per regulation 24A(1) of the SEBI Listing Regulations,
your Company is required to annex a secretarial audit
report of its material unlisted subsidiary companies
incorporated in India to its Annual Report. Accordingly,
the Secretarial Audit Reports for the FinancialYear 2025¬
26 of APL Healthcare Limited, Apitoria Pharma Private
Limited and Eugia Pharma Specialities Limited, the
material subsidiaries incorporated in India, are annexed
along with Annexure-4 of this report.

There are no qualifications, reservations or adverse
remarks in the Secretarial Audit Report. Also, pursuant
to Regulation 24A of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015,
the Company has obtained the Annual Secretarial
Compliance Report from a Practicing Company Secretary
who has been peer reviewed by the Institute of Company
Secretaries of India and submitted the same to stock
exchanges where the shares of the Company are listed.
There are no adverse remarks or comments reported
during the year.

Further, M/s. MRR & Associates submitted its resignation
as Secretarial Auditor of the Company effective May
21, 2026 due to ill health of its sole proprietor. Hence,
as per Regulation 24A of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the
Company is required to appoint a Secretarial Auditor
who has been peer reviewed by the Institute of Company
Secretaries of India for a period of five years. The Board
of Directors of the Company has in its meeting held
on May 21, 2026 recommended for approval of the
members at the ensuring Annual General Meeting,
the appointment of M/s. RPR & Associates (Firm Regn.
No.S2017TL469100) who has furnished a certificate of
its eligibility and consent for appointment and has been
peer reviewed by the Institute of Company Secretaries
of India as the Secretarial Auditor of the Company for a
period of five years.

CORPORATE SOCIAL RESPONSIBILITY

In compliance with Section 135 of the Companies
Act, 2013 read with the Companies (Corporate Social
Responsibility Policy) Rules 2014, the Company

has established the Corporate Social Responsibility
Committee (CSR Committee).

The Board, on the recommendation of the CSR
Committee, adopted a CSR Policy. The same is available
on the Company's website athttps://www.aurobindo.
com/api/uploads/CSR-policy.pdf The CSR objectives
are designed to serve societal, local and national
goals in the locations that we operate in, to create a
significant and sustained impact on local communities.

The Company undertakes its CSR activities through
Aurobindo Pharma Foundation, a wholly-owned
subsidiary of the Company incorporated under Section
8 of the Companies Act, 2013.

The CSR projects approved by the Board for the year
2026-27 are available on the Company's website at
https://www.aurobindo.com/sustainability/annual-
action-planThe Annual Report on Corporate Social
Responsibility as per Rule 8 of the Companies (Corporate
Social Responsibility Policy) Rules, 2014 is annexed as
Annexure - 5 to this Report.

PARTICULARS OF EMPLOYEES

The statement of particulars of appointment and
remuneration of managerial personnel as required
under Section 197(12) of the Companies Act, 2013
read with Rule 5 of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014 is
in Annexure-6 to this Report. The statement containing
particulars of employees pursuant to Section 197(12)
of the Companies Act, 2013 read with Rule 5(2) of
the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 is open for inspection
at the Registered Office of the Company during business
hours on all working days of the Company, up to the date
of the ensuing Annual General Meeting. Any shareholder
interested in obtaining such details may write to the
Company Secretary of the Company.

Affirmation that the remuneration is as per the
remuneration policy of the Company.

In compliance with the provisions of the Companies
Act, 2013 and SEBI Listing Regulations, the Board,
on the recommendation of the Nomination and
Remuneration/ Compensation Committee approved
the Policy for Selection, Appointment of Directors,
KMPs and Senior Management persons. The said
Policy provides a framework to ensure that suitable and
efficient succession plans are in place for appointment
of Directors on the Board and other management
members. The Policy also provides for selection and
remuneration criteria for the appointment of Directors
and senior management persons.The Company affirms
that the remuneration is as per the remuneration policy
of the Company.

INSURANCE

All properties and insurable interests of the Company
including building, plant and machinery and stocks
have been fully insured. The Company has also taken
D&O Insurance Policy covering Company's Directors
and Officers.

MATERIAL CHANGES AND COMMITMENTS

There are no material changes and commitments in the
business operations of the Company during the financial
year ended March 31,2026 and up to the date of signing
of this Report.

CORPORATE GOVERNANCE

A separate section on Corporate Governance standards
followed by your Company, as stipulated under
Schedule V (C) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 is enclosed
as a separate section forming part of this report. The
certificate of the Practicing Company Secretary, M/s MRR
& Associates with regard to compliance of conditions
of corporate governance as stipulated under Schedule
V(E) of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 is annexed to the
Corporate Governance Report.

MANAGEMENT DISCUSSION AND ANALYSIS

Management Discussion and Analysis Report for the
year under review as stipulated under SEBI (Listing
Obligations and Disclosure Requirements) Regulations,

2015 is presented in a separate section forming part of
this report.

DEPOSITS

Your Company has not accepted any deposits from the
public within the purview of Chapter V of the Companies
Act, 2013.

INDUSTRIAL RELATIONS

Industrial relations at all units of the Company and its
subsidiaries have been harmonious and cordial.

TRANSFER OF UNPAID AND UNCLAIMED
AMOUNT TO IEPF

The dividends that remained unpaid/unclaimed for a
period of seven years, have been transferred on or before
due dates by the Company to the Investor Education
and Protection Fund (IEPF) established by the Central
Government. Section 124 of the Companies Act, 2013
read with the Investor Education and Protection Fund
Authority (Accounting, Audit,Transfer and Refund) Rules,

2016 (the 'Rules') mandates that companies shall apart
from transfer of dividend that has remained unclaimed
for a period of seven years in the unpaid dividend
account to the IEPF, also transfer the corresponding
shares with respect to the dividend, which has not been

paid or claimed for seven consecutive years or more
to IEPF.

Accordingly, the dividends that remain unclaimed
for seven years and also the corresponding shares
have been transferred to IEPF account on due dates.
The details of amount of unclaimed unpaid dividend
and corresponding shares transferred to IEPF during
the financial year 2025- 26 have been provided in the
AGM Notice.

Further, in accordance with the IEPF Rules, the Board of
Directors have appointed Mr. B. Adi Reddy, Company
Secretary as Nodal Officer of the Company for the purpose
of verification of claims of shareholders pertaining to
shares transferred to IEPF and / or refund of dividend
from IEPF Authority and for coordination with IEPF
Authority.The details of the Nodal Officer are available on
the website of the Company athttps://www.aurobindo.
com/api/uploads/unpaiddividendaccountdetails/Nodal-
Officer-IEPF.pdf

SHARE CAPITAL

During the financial year under review, there has been no
change in the Authorised and paid-up Share Capital of
the Company. The paid-up share capital of the Company
as on March 31, 2026, was ' 58,08,01,623 divided into
58,08,01,623 equity shares of ' 1/- each. The Company
has not issued any shares, debentures, bonds or any
convertible or non-convertible securities during the
financial year under review.

The Board of Directors at their meeting held on April
6, 2026, approved the buyback offer of up to 54,23,728
equity shares of ' 1/- each from the shareholders
of the Company. Accordingly, the Company bought
back 54,23,728 equity shares of the Company and
extinguished the same. After extinguishment of the
bought back shares the paid up equity share capital of
the Company reduced from 58,08,01,623 equity shares
of ' 1/- each to 57,53,77,895 equity shares of ' 1/- each
as on date of this report.

BUSINESS RESPONSIBILITY AND
SUSTAINABILITY REPORT

A detailed Business Responsibility sustainability
Report in terms of the provisions of Regulation 34 of
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 is available as a separate section in
this Annual Report.

SIGNIFICANT/ MATERIAL ORDERS PASSED BY
COURTS/ REGULATORS/TRIBUNALS

There was no significant material order passed by the
Regulators or Courts or Tribunals that would impact the
going concern status of the Company and its operations
in future.

SECRETARIAL STANDARDS

The Company has complied with the applicable
Secretarial Standards issued by the Institute of Company
Secretaries of India, i.e., SS-1 and SS-2, relating to
'Meetings of the Board of Directors' and 'General
Meetings' respectively.

OTHER DISCLOSURES

Auropharm Limited acquired non-oncology prescription
formulations business of Khandelwal Laboratories
Private Limited

Auropharm Limited (previously known as Auro
Pharma Limited), a wholly owned subsidiary of the
Company, at its board meeting held on January 1,2026
approved the acquisition of non-oncology prescription
formulations business (the "Business") of Khandelwal
Laboratories Private Limited on a going concern basis
through a Business Transfer Agreement ("BTA") for a
cash consideration of ' 3,250 million subject to true up
adjustments for the working capital as provided for in
the definitive agreements. The transaction was signed
and closed on January 1, 2026.

Transfer of domestic branded generic
pharmaceutical formulations products business
to Auropharm Limited

The Board of Directors of the Company at its meeting
held on April 6, 2026, has approved the transfer of the
Company's domestic branded generic pharmaceutical
formulations products business on a going concern
basis through a business transfer agreement to
Auropharm Limited (previously known as Auro Pharma
Limited), a wholly owned subsidiary of the Company.
The transfer is in line with the Company's strategy
in further streamlining and accelerating Company's
domestic business for faster growth. The Business
Transfer Agreement (BTA) was executed on April 6, 2026.

The completion of sale is estimated within 90 to 120 days
from the date of BTA, subject to satisfactory completion
of customary conditions precedent in accordance
with the provisions of the BTA. Once completed, the
economic benefits of the business shall be transferred
to Auropharm Limited from April 1, 2026.

Transfer of domestic branded generic pharmaceutical
formulations products business will be done for a
lumpsum consideration of ' 1,432.10 million subject to
such adjustments as provided for in the BTA.

Aurobindo Pharma USA Inc., entered into a
definitive agreement to acquire Lannett Company
LLC, USA

During the year, Aurobindo Pharma USA Inc., a wholly
owned subsidiary of the Company, entered into a
definitive agreement with Lannett Seller Holdco Inc, USA,
under which Aurobindo Pharma USA Inc will acquire
100% of membership interest in Lannett Company LLC,
USA from Lannett Seller Holdco Inc for a consideration at
an enterprise value of US$ 250 million (' 21,850 million)
on a cash free debt free basis and including normalized
levels of working capital.

The above transaction is subject to US Federal Trade
Commission approval and the same is awaited. The
transaction aligns with Company's strategic objective to
expand its U.S. manufacturing footprint by enhancing its
existing domestic capabilities. Through this acquisition,
Company will gain access to:

• A complementary portfolio of profitable products,

• A growing Contract Development and Manufacturing
Organization (CDMO) business, and

• A U.S. based manufacturing facility with significant
excess capacity (425k sq ft facility with ~3.6bn doses
capacity) and with potential for further expansion.

The acquired product portfolio is primarily focused on
non-opioid controlled substances, particularly in ADHD
therapeutics for which Company currently has a limited

presence. This acquisition strengthens the Company's
ability to serve the U.S. generics space and provides
strategic diversification into a specialized, high-value
therapeutic category.

Other disclosures

During the year under review:

• no proceedings are made or pending under the
Insolvency and Bankruptcy Code, 2016;

• no instance of one-time settlement with any Bank
or Financial Institution;

• no shares with differential voting rights and sweat
equity shares have been issued; and

• there has been no change in the nature of business
of the Company.

CREDIT RATING

The Company has obtained the Credit ratings from India
Ratings & Research Private Limited, and it has assigned
ND AA /Stable/IND A1 on Rating Watch Evolving for
Company's fund based working capital facilities and ND
A1 on Rating Watch Evolving for Company's non-fund
based working capital limits vide their letter dated March
11, 2025.

ACKNOWLEDGEMENTS

Your directors are grateful for the invaluable contribution
made by the employees and are encouraged by the
support of the customers, business associates, banks and
government agencies. The Directors deeply appreciate
their faith in the Company and remain thankful to them.
The Board shall always strive to meet the expectations
of all the stakeholders.