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Kwality Pharmaceuticals Ltd Q1FY27 Investor Presentation
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Some of the statements made in this presentation are forward-looking statements and are based on the current beliefs, assumptions, expectations, estimates, objectives and projections of the directors and management of Kwality Pharmaceutical Limited about its business, the industry and markets in which it operates. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the control of the Company and are difficult to predict. Kwality Pharmaceutical Limited does not undertake to update these forward-looking statements to reflect events or circumstances that may arise.
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‘; FY27 Guidance Updated METRICS FY26A (Actual) PREVIOUS FY27 GUIDANCE UPDATED FY27 GUIDANCE CHANGE / UPDATE (us. Previous Guidance) REVENUE 503 650 700+ Raised (X Crore) (+29%) (+39%+) INR 50 Cr+ E;:\:DA_ 118 176 - 196 189 - 196+ Raised % Margin) (~23.5% Margin) (27% - 28% Margin) (27% - 28%+ Margin) +13 bps . 67 100 109+ Raised (% Margin) e (~15.3% Margin) (~15.5%+ Margin) +30 bps (~*13.4% Margin) (+190 bps) (+220 bps) WE ARE RAISING THE BAR Note: YoY growth rates are for FY27 over FY26 All values in INR Cr. Increasing our growth and profitability outlook on the back of strong execution and clear visibility Raised Higher growth visibility Raised Stronger operating leverage and product mix Raised Improved profitability outlook
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g 4 Decades of Expertise and Manufacturing Excellence r rputure Growth: High Margin critical Research + Manufacturing + Quality Excellence Achieved Expertise in Complex Formulation care, Bio-similar and oncology molecules including peptides rBroad & Diverse Product Offering r 1000+ formulations across 25+ 4/5 Units EUGMP Approved as per therapeutic use 90% Revenue Annex 1 of recent EU guidelines from out-licensing and supplies Therapy Areas Development & Manufacturing 1,750+ employees including 90+ in R&D 700+ regulatory filings across many countries 20+ audits in the past two years 70+ countries served, with a diverse global clientele G I SNSS Beta Lactam Oncology %162 Cr Revenue in Q1FY27, Net Profit X26 Cr 40% Targeting topline growth in FY27 900000 Cephalosporins Biologics Hormones
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Revenue growth supported by manufacturing scale-up All values in INR Cr. CAGR :26% l 700+ 503 370 307 i ! ! FY23 FY24 FY25 FY26 FY27E Journey so far... 1983 2018 2020 2022 2023 2024 2025 2026 Company * Manufacturing * Migrated « Established « Established « Initiated « PICs GMP EUGMP approval for general and Founded Facility to BSE Beta lactam Biological Unit development of approval for beta lactam units Dpetadaticy « Developing Uiz * EU GMP for giPoLIol f(t:s lB"e“tta leciEm BE programmes for 40+molecules * PIC/s GMP for vast portfolio * Developed Oncology & g ) ongoing (3+ successfully completed) Injectable facility of Injectables 10+ complex Ce;_)halosponn * 2 BE studies * SFDA approval Sz e s (er L % products Units successfully for General Erythropoetin gRED) /dQ::' facility * Imt'itet‘:_l_ (Microspheres Market il conducted and Beta upgradation market filings Linosoril * Market filings —— N N . ol ? of KPL’s niche * Successful opegecapacbyexpansion * Exports to 40+ Nanoparticle) in biologics and oncology products approval and markets commercializati WHO GMP for Biologics (Drug on in High Substance and regulated Drug Product) markets-EU /S Africa Unit 6 - A dedicated plant for hormones being constructed (Completion by Q3CY26)
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PAT growing ~3x faster than revenue Revenue Scale Translating into Profit Acceleration FY24 FY25 FY26 I Revenue PAT —e—Filings All values in INR Cr. Key Levers and their performance over years Key Operational Levers Revenue (% Cr) Cumulative Filings (Nos.) Capacity Utilisation (Overall) R&D Spend (% of Revenue) Working Capital Cycle (Days) FY23 251 75 ~35% Less than 1% 297 FY26 503 700+ ~65%+ ~2.5% 161 Improvement / Status ~2x ~1.7x ~1.9x Investing for future -136 Days
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Ramesh Arora Chairman & Managing Director AREA OF FOCUS IT, Software and Legal Agreements & Proceedings 42 Years of Experience Ajay Arora Director AREA OF FOCUS Raw material procurement and infrastructure development 31 Years of Experience Aditya Arora Director AREA OF FOCUS Quality assurance, Quality control, Regulatory compliance 11 Years of Experience
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pE Bat ) 1, Ny [\ _ @ Hormones is under construction, expected to commence by H2FY26 Successfully completed 20+ 01 regulatory, customer, and vendor audits over the past two years. Proactively upgrades plant 02 = Dractices by benchmarking against Form 483 observations across the industry Centralized CQA team ensures 03 audit learnings are consistently implemented across all manufacturing units
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@:fi% ed Manufacturing Capabilities Amvritsar Plant (Campus 1) Himachal plant (Campus 2) - we | e [ e [ o] vws [ v Oral Solids - Tab/Capsule, Suppositories Ointments/Creams, Oral Liquids Dental Cartridges Injectables (Vials/Ampoules/PFS) D57 S Sdhi Oral Solids - Tab/Capsule Powder for Injection Tablets - 1800 Million Capsules - 180 Million Ampoules - 200 Million Tablets - 3000 Million Vials - 200 Million Capsules - 1500 Million Lyophilized Products - 3 Million Powder for Injection - 50 Dry Powder Injection - 100 Million Million PFS - 1 Million Dry Syrup - 200 Million Dental Cartridge - 40 Million Sachet - 100 Million Suppositories - 40 Million Ointments - 20 Million EU GMP, PICS (Anvisa, EU GMP, PICS (Anvisa, Invima, Sfda, T, [ 5 Ukraine)
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Injectables Tablets Capsules Liquid externals and orals Creams and ointments Dry syrups Ophthalmic Sachets Suppositories Revenue share % 43% 40% 6% 3% 3% 2% 1% 1% 1% 1000+ products across key therapies - Broad Dosage form capabilities Therapies Generals, Beta Lactam, Oncology & Cephalosporins Generals, Beta Lactam, Oncology & Cephalosporins Generals, Beta Lactam, Oncology & Cephalosporins Generals, Beta Lactam, Oncology & Cephalosporins, Biologics Generals Beta Lactam & Cephalosporins General Beta Lactam General Unit wise Revenue Split for Q1FY27 63% 20% 15% 2% 1% . — FY26 mUnitl =Unit2 Unit3 =Unit4 =Unit5
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Revenue share 100+ clients across LATAM, MENA, ' Europe, Asia & Africa; expand via 700+ filings. = Outlicensing and Supply - CDMO Filings 200 175 140 o FY23 FY24 FY25 FY26 # Filings Tie to Moats Regulatory Approvals : EU GMP, ANVISA (Brazil), INVIMA (Colombia), etc., prove quality for tough markets. Affordable niche focus : Vision targets affordable complex molecules ° with high quality focus Proven growth : Filings jumped from 75 (2022-23) to 200 (2025-26); exports to LATAM, Africa, MENA via licensing. Leverage achieved ( @%fi) Monetizes in - house product development Enables rapid international expansion Stable export revenues with limited front - end risk
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End-to-End Pa g ip Driving Hig “ SHEEEE 80 scientists Proves innovation R&D Head: t eadcoun (DSIR-recognized) muscle Dedicated QA and QC QA & QC team teams function strength s Ao independently across each unit. Liposomal Pegylated Injectables, Emulsion Tech Focus Technology, Lyophilized High-margin niches Injectables, Long - acting Injectables, Niche Biological ni (30 - 40%) 300M injectables/year + Serving large and global C it apactty biologics demand Capacity Multi-block (oncology at i Utilization 60-70%) Efficient asset use Opens almost all the markets across the world Boosting talent, attaining expertise 214 188 174 140 145 115 107 922 80 78 R&D team QA team QC team FY23 =FY24 ®FY25 wQI1FY27
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Applied R&D + Development Engine supporting future CDMO partnerships Core Research Initiatives /;1\ Biosimilars Development ) ( Hypothesis driven innovation Enhancing existing drug molecules through formulation and process optimization to improve efficacy, safety, and manufacturability for high o N regulated markets. y € Oncology Research Conducting studies to strengthen capabilities in complex and high-value therapeutic segments (OSD & Injectables) o [ y ( Chronic Disease Research (Exploratory) Early-stage research focused on chronic and lifestyle diseases, supporting long-term specialty pharma and CDMO opportunities. o s y € Infrastructure & Capability Expansion Ongoing investments in increasing R&D capabilities MABs, analytical method development, and laboratory infrastructure to scale complex development work. =) a ( Building end-to-end biologics development and analytical capabilities to support future biosimilar launches and biologics CDMO engagements.
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-, iated Capabilities sy Lyophilized Injectables Emulsion ° * Solubility via Freeze - drying ° Long - acting Technology + Improved Stability Injectables * Fast Absorption * Sustained Drug Release * Low Globule Size * Peptide-based Injections * Low Osmolaity * Polymeric Microspheres Liposomal Pegylated Niche Biological Injectables ° """"" H . 000 ° 7777777 lnicctables * Tissue Targeting * Low Genotoxicity * Intracellular Targeting * Low Immunogenicity * Increased Exposure Time * High Specificity * Drug Solubilization * Backed with robust preclincal and clinical data
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Operating in 70+ Markets South and Central America Middle East GCC/MENA RU/CIS
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Working Capital Normalizing with Scale, Improving Capital Productivity ~——ROE —ROCE MFY23 uFY24 4FY25 FY26 297 217 22 231 31.2% 208 196 189 200 161 16 i 2% 22.7% 114 111 19% 15% 11% - - - ‘ Cash conversion days Inventory days payable days FY24 FY25 FY26 ‘ Massive Improvement in cash conversion cycle from 297 days to 161 days backed by strong inventory discipline
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Low leverage and strong coverage - significant headroom for capex 0.44 043 18 0.96 0.41 ‘ ‘ 1.67 ‘ 0.39 0.88 1.60 038 038 0.86 Gross Debt/Equity Net Debt/Equity Current ratio Asset turnover | wFY24 “FY25 *FY26 WFY24 MFY25 FY26 wFY24 MFY25 FY26 — 9.15 1.79 0.92 177 0.74 6.48 0.57 4.68 170 Interest coverage Total asset/ equity | Debt / EBITDA wFY24 HFY25 FY26 wFY24 “FY25 ~FY26 WFY24 MFY25 »FY26 e —————————————————— - — —
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g Global Accrediations ANVISA - BRAZIL INVIMA - COLOMBIA DA - SAUDI AE - GMP EDA - MALAWI KMCA - KURDISTAN MOH - PERU ~ MCED | 3 MCAZ - ZIMBABWE FDA - GHANA UGANDA - Gmp COFEPRIS - MEXICO TEDA - TANZANIA @0 EDA - MALL EDA - YEMEN FDA - PHILIPPINES e ) DPML - IVORY COAST and many more...
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Q1FY27 Business Updates
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Strategic capacity additions expand Kwality beyond traditional formulations into high-entry-barrier specialty products. BIOLOGICS FACILITY R 1IaeppEEs Development Status (@) Drug Substance + Drug Product capability (@ Pre-linical success achieved for Erythropoietin Dedicated hormone manufacturing plant Plant will be ready by Nov 26 Development Roadmap a By Drug Regulatory (=i Development Approvals Biologics Platform Key Highlights 100L 500L+ ~195 Cr+ Current Expansion Planned Capex Bioreactor Completed (Multi year) Planned Capex Already Capex Incurred 66 Management has clarified that the FY29 revenue guidance exclu = Scale-up & Portfolio Expansion Potential Annual Revenue es contributions from both the Hormone facility and Biologics platform, creating meaningful upside beyond current guidance.
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Construction Update & Commissioning Roadmap Completion Tracker Civil Construction Equipment Procurement Equipment Installation Utilities & Services Team Recruitment R&D of molecules Initial Product Portfolio — Unit 6 Category Sex Hormones Synthetic Hormones BE Studies Required # Products Shortlisted 20+ 20+ 10+ I so% 80% 60% 10% 5% 20% Key Milestones 0 Construction commenced 0 Equipment order placed ° Major equipment installed ° Validation runs ° WHO / PICS GMP audit ° Commercial production Form Injectables 0OSD + Injectable 0osD Status Development Initiated Shortlisting Complete Pipeline Queued Q2FY26 Q3FY26 Q2FY27 Q2FY27 Q3FY27 Q3FY27
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® o & QLFY27 Financial Performance
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{ Performance drivers for Q1FY27 . Expansion in Regulated Markets e Regulatory & Compliance Milestones @ New registrations secured across LATAM (incl. Mexico, Colombia), MENA, GCC, and @ EU-GMP certification received for General and Beta Lactam plants — enabling expanded select Asian markets including Malaysia EU-regulated market access . . . @ Registered business model driving accelerated market-by-market growth in key o Eurastla_n audit successfully completed for General Plant; supporting entry into Eurasian . countries geographies @ SGS audit conducted for Ophthalmic line, reinforcing quality standards for specialised dosage forms . Global Market Presence e Capacity & Infrastructure Expansion @ Active engagement across LatAm, MENA, GCC, and Asian markets through registered business partnerships @ Strengthened market access footprint with new registrations enabling commercial momentum in new geographies L Ongoing expansion in biologics and oncology capacities ® Construction of a new hormone manufacturing facility underway . Bioequivalence (BE) & Development Programs e R&D and Product Pipeline Progress @ Continued BE program for 40+ oral solid dosage products across multiple therapies @ 3 generics of currently patented molecules in pipeline -1 Proof of Concept (PoC) and 3+ in Injectables successfully achieved @ EPO pre-clinical outcomes progressed to clinical trial stage; biologics pipeline L4 Completed over three BE studies during the quarter . continues to expand
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)=y Solid exec YoY Performance QoQ Performance All values in INR Cr. Revenue EBITDA and Margins (%) PAT and Margins (%) 162 41 26 112 / 25 / / 1123 QIFY26 QIFY27 QIFY26 QIFY27 QIFY26 QIFY27 Revenue EBITDA and Margins (%) PAT and Margins (%) 158 162 l/. .39 41 25 26 Q4FY26 QIFY27 Qe QUInZ7 QUFY26 QIFY27
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g Profit and Loss Statement - Q1FY27 Revenue from operations (Net) 162.4 157.1 3.4% 111.5 45.7% (c) Changes in inventories of finished goods work - in - progress and stock - in - trade Profit/Loss after Tax 25.7 253 3.2% 11.9 119.3% All values in INR Cr.
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Historical Statement of Profit & Loss Revenue from operations (Net) a) Cost of materials consume: 241 (a) Cost of jal d 113 154 165 Share of profit/(loss) of associates and joint ventures accounted for using equity method (net of income tax) All values in INR Cr.
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‘;@5 Balance Sheet = tel Particulars (In INR Cr.) FY25 Particulars (In crs) ASSETS Non-current assets Property Plant & Equipment Intangible Assets Capital Work in Progress Deferred Tax Assts Investments Other Non current Assets Current Assets Inventories Trade Receivables Cash & Bank Balances Bank Balances other than above Other Current Financial Assets Other Current Assets Allvalues in INR Cr. 354 146 120 14 12 207 86 72 35 394 152 139 13 243 78 115 16 28 447 163 144 16 284 83 154 12 13 18 592 186 150 17 12 406 78 280 35 EQUITY & LIABILITIES Equity Share Capital Other Equity Total Equity attributable Non Controlling Interests Non-Current Liabilities Borrowings Provision Deferred tax liabilities Other Non current Current Liabilities Borrowings Trade Payables Other Current financial Liabilities Other Current Liabilities Provisions Current tax liabilities 354 10 190 201 -1 27 63 35 19 394 10 214 224 -2 20 79 44 19 447 10 254 264 -2 15 97 [ B EN©, ] 592 10 322 332 -2 29 101 102 0 w OV u
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Cash Flow Statement Cashflow from Operating Activities 41.38 42.98 52.72 16.59 | crfowfomveteacvees. RN 4o N e sy ) " cashowfrom HrananeAcrives NEEENRREE T ws TR 8 cash v Cash Equtvlorts s o IR T s 26 ne I All values in INR Cr. n
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~260 Cr Better Operating Capex Product Mix Leverage FY26 EBITDA Margin Adhering operational efficiency and cost optimization Implementing secondary packaging tech transfers in international markets to optimize logistics and local compliance costs, with 10+ projects already completed. Expected Outcome Improves cost efficiency & faster entry into markets Higher Export-led Investing in R&D Filings Margin Stability & Complex Products FY29 Target EBITDA Margin Capex-led expansion across Operations + Scaling Oncology, Biologics, and Hormone capacities to address demand growth * Advancing new formulations through BE studies Expanding capabilities with monoclonal antibodies (MABs) @ Expanding to high margin specialty platforms Commerecialize its first biologic, Erythropoietin, in H1 of the next financial year, while continuing to build its presence in complex and niche injectable manufacturing. Expected Outcome Margins will go up by 300 bps by FY27 @ Unlocking Regulated Market Upside through EU-GMP Readiness 4 of 5 manufacturing plants are EU-GMP approved, with 40+ bio-equivalence programs covering 40+ molecules targeted at highly regulated markets every year Expected Outcome Wining global trust.
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Propofol njecion P KWALIFOL THANK YOU ® Kwality Pharmaceuticals Ltd. Head Office Address : 6th Milestone, Majitha Road, Amritsar-143601, Punjab, India Company Contact: Ujjval Seth Ujjvalseth@kwalitypharma.com Investor Relations Contact: Go India Advisors Soumya Chhajed soumya@goindiaadvisors.com