Your directors take pleasure to present the 19^th Board’s Report of OneSource Specialty Pharma Limited (“the Company”
or “OSPL” or “OneSource”) prepared in line with the Companies Act, 2013 (“Act”) and the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”). This report presents
the Audited financial results (Consolidated and Standalone) and other developments in respect to the Company during the
financial year ended March 31, 2026 (“FY26” or “Financial Year”) and as on date of this report.

1. Financial Performance

The Company has prepared the Consolidated and Standalone Financial Statements for the financial year ended
March 31, 2026, in accordance with the Indian Accounting Standards (Ind AS) as prescribed under the Companies Act,
2013 (“Act”).

Key Highlights (Consolidated Financials)

¹Adjusted PAT and Adjusted EPS exclude exceptional items (FY26: ?99m, FY25: ?1,108m) and scheme related intangible amortisation (FY26:
?1,378m, FY25: ?1,413m).

2. Company’s Performance

About the Company:

OneSource is a pure-play specialty pharmaceutical
CDMO providing integrated development
and manufacturing solutions across complex
pharmaceutical products including biologics, drug-
device combinations, sterile injectables, and oral
technologies (soft gelatine capsules). It operates
five state-of-the-art facilities approved by global
regulatory authorities with a dedicated team of over
1,600 professionals. OneSource with its development
capabilities, industry leading manufacturing capacities,
and strong compliance track record, has won trust of
global pharmaceutical companies seeking efficient,
end-to-end solutions.

Performance Highlights

FY26 was a year of focused execution and capability
enhancement, strengthening the foundation for
sustainable long-term growth across our specialty
platforms.

Financial Snapshot

• Full-year revenue declined marginally by 2%
YoY, reflecting a softer second half impacted by
delayed semaglutide approvals in Canada.

• Full year EBITDA declined 35% YoY, reflecting a
high MSA base in prior year and an elevated cost
base in FY26 as the DDC facility ramped up.

Management’s Discussion and Analysis Report, which
forms part of the Board’s Report details the Company’s
operational and financial performance for the year.

3. Capital Structure

a. Authorised Share Capital

Authorised Share Capital of the Company as at
March 31, 2026 is ' 15,00,00,000 divided into
15,00,00,000 equity shares of ' 1 each.

b. Issued, Subscribed, and Paid-up Share Capital

The movement in Issued, Subscribed, and Paid-up
Share Capital of the Company during the year is as
under:

4. Dividend

The Company has reported a profit on a standalone
basis during the year. However, in view of ongoing
expansion plans and future capital requirements,
the Board has not recommended any dividend for
the financial year ended March 31, 2026. Dividend
distribution policy is available on below link:

https://www.onesourcecdmo.com/wp-content/

uploads/2025/01/Dividend-Distribution-Policy.pdf

5. Transfer to Reserves

Movement in reserves and surplus during the financial
year ended March 31, 2026, is provided in the Statement
of changes in equity included in the consolidated and
standalone Financial Statements (Refer to Note 11B in
the Consolidated as well as the Standalone Financial
Statements).

6. Update on Corporate Actions

During the year under review and to the date of this
Report, your Company has undertaken/ initiated the
following key corporate actions:

Scheme of Arrangements

6.1 Scheme of Arrangement for acquisition of
European CDMO business of SteriScience
and anti-infective business from Brooks
SteriScience.

The Board of Directors at their meeting held on
September 26, 2025, approved a strategic transaction
to strengthen the company’s capabilities and
capacity by acquiring the European CDMO business of
Steriscience and anti-infective business from Brooks
Steriscience.

The said transaction was intended to be achieved
through a Scheme of Amalgamation amongst
Steriscience Specialties Private Limited, Brooks
Steriscience Limited, Steriscience Pte. Limited, Strides
Pharma Services Private Limited and OneSource
Specialty Pharma Limited and their respective
shareholders (under section 230 to 232 read with
section 234, section 52, section 66 of the Act and under

section 210 read with section 212 of The Singapore
Companies Act, 1967 and other applicable provisions
of the Act, the Singapore Companies Act, 1967 and the
rules framed thereunder).

The National Stock Exchange of India Limited and
BSE Limited by their respective letters dated
February 25, 2026 conveyed their “No-objection /No
Adverse Observation Letter”, for the Scheme.

However, the Board of Directors at their meeting held
on May 13, 2026, in the best interest of stakeholders
decided to not pursue the transaction in the current
form and revisit it following successful delivery of
respective companies’ FY28 guidance.

6.2 Amalgamation of Stelis Pte. Limited with
OneSource Specialty Pte. Limited, wholly
owned subsidiaries of OneSource Specialty
Pharma Limited (“the Company”)

Stelis Pte. Limited (“Stelis”), Singapore a wholly
owned subsidiary of the Company amalgamated
with OneSource Specialty Pte. Limited (“OneSource
Specialty Pte.”), Singapore another wholly owned
subsidiary of the Company with effect from
January 01, 2026 to simplify the existing corporate
hierarchy, enhance operational efficiency, and eliminate
redundant administrative, compliance, and legal costs.

Since the transaction was undertaken between the
wholly owned subsidiaries of the Company, there is no
impact on a consolidated basis and on the shareholding
pattern of the Company.

6.3 Striking off of the wholly owned subsidiary
entity - Stelis Biopharma UK Private Limited

Stelis Biopharma UK Private Limited was struck off with
effect from October 14, 2025, as there was no business
activity and remained dormant since its incorporation
on November 30, 2022.

7. Consolidated Accounts

The consolidated financial statements for the year
ended March 31, 2026, pursuant to Section 129(3) of
the Act, form part of this Annual Report.

8. Subsidiaries/Joint Ventures/Associates and
Accounts of Subsidiaries

In accordance with Section 129 (3) of the Act, the
Company has prepared a consolidated financial
statements.

The Company has the following subsidiaries, joint
ventures, and associate entities as at March 31, 2026:

List of Wholly Owned Subsidiaries:

• Biolexis Private Limited, India

• OneSource Specialty Pharma Inc, USA

• OneSource Specialty Pte. Limited, Singapore

• Strides Pharma Services Private Limited, India

Step-down wholly owned Subsidiaries:

• Biolexis Pte. Ltd, Singapore - Biolexis Private
Limited, India (Holding Company)

• OneSource Softgels Pte. Ltd., Singapore (formerly
known as Strides Softgels Pte. Ltd.) - Strides
Pharma Services Private Limited, India (Holding
Company

A statement containing salient features of the financial
statements of the Company’s subsidiaries, as required
in Form AOC 1 is enclosed as Annexure - 1 to this
Report.

9. Employee Stock Option Scheme

The Company has Stock Option Plan viz., OneSource
Specialty Pharma Limited: Employee Stock Option
Scheme 2021 (ESOP Scheme).

A statement giving detailed information on stock
options granted to Employees under the ESOP Scheme
as required under Section 62 of the Act, read with

Rule 12 of Companies (Share Capital and Debentures)
Rules, 2014 and Regulation 14 of SEBI (Share Based
Employee Benefits and Sweat Equity) Regulations,
2021 is enclosed as Annexure - 2 to this Report and
the scheme is also available at website of the Company
at below link:

https://www.onesourcecdmo.com/wp-content/

uploads/2025/07/OneSource_ESOP-Scheme.pdf

10. Loans, Guarantees, and Investments

Details of loans, guarantees, and investments covered
under Section 186 of the Act, form part of the notes to
the financial statements provided in this Annual Report.

11. Public Deposits

The Company did not accept any public deposit during
the year under review, as outlined in Chapter V of the
Act and the corresponding Rules.

12. Credit Rating

The Company continues to maintain a credit rating
of “IND A- ; Positive” assigned by India Ratings &
Research, which was reaffirmed in December 2025.

Further, at the request of the Company, CARE Ratings
Limited has withdrawn the ratings earlier assigned to
the Company’s debt instruments.

Note: Subsequent to the finalisation of the Board's Report in
August 2026, the rating was upgraded from "IND A-" to "IND A".

13. Directors and Key Managerial Personnel

As on March 31, 2026, the Company’s Board had
eight members. This includes one Non-Executive
Chairperson (Promoter Director), one Managing
Director, one Non-Executive Non-Independent Director
and five Non-Executive Independent Directors, one of
whom is a Woman Independent Director.

Details about the Board, Committee composition,
Director tenure and other details are available in the
Corporate Governance Report, which is part of this
Annual Report.

During the year, Colin Michael Bond (DIN: 10982819)
was appointed as a Non-Executive Independent
Director effective June 23, 2025 and also as
Chairperson of Audit Committee effective from the said
date. Approval of shareholders for his appointment was
sought and obtained through Postal Ballot, the results
of which were declared on July 31, 2025.

The details of the Board members as on March 31, 2026 is as below:

Key Managerial Personnel (KMP):

In-terms of provisions of Section 2(51) and 203 of the Companies Act, 2013, the Company has the following Key Managerial
Personnel (KMP) as at March 31, 2026 and as on date of this report:

There were no changes in KMP’s during the year.

14. Declaration by Independent Directors

The Company has received declarations from all
Independent Directors in accordance with Section
149(7) of the Act read with Regulation 25(8) of the
SEBI Listing Regulations confirming that they meet
the criteria of independence as outlined in Section
149(6) of the Act and Regulation 16(1)(b) of the Listing
Regulations. Further, the Independent Directors have
confirmed that they are not aware of any circumstance
or situation, which exists or may be reasonably
anticipated, that could impair their ability to discharge
their duties with an independent judgment and without
any external influence.

Additionally, the Independent Directors have declared
their compliance with Section 150 of the Act read with
Rules 6(1) and 6(2) of the Companies (Appointment and
Qualification of Directors) Rules, 2014, regarding their
inclusion in the data bank of Independent Directors
maintained by the Indian Institute of Corporate Affairs.

There have been no changes in the circumstances
affecting their status as Independent Directors of the
Company. In the opinion of the Board, the Independent
Directors meet the conditions specified under the Act
and the Listing Regulations.

15. Board Performance Evaluation

Evaluation of all Directors, Committees, Chairperson of
the Board, and the Board as a whole was conducted for
the year.

Evaluation process has been explained in Page 167 of
the Corporate Governance Report, which forms part of
this Annual Report.

16. Remuneration Policy and Criteria for
Appointment of Directors

The percentage increase in remuneration, ratio
of remuneration of Directors and Key Managerial
Personnel (KMP) (as required under the Act) to the
median of employees’ remuneration forms part of this
report and is appended herewith as Annexure - 3 to
this report.

Further, as per the provisions of Section 197(12) of
the Act read with Rule 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial
Personnel) Rules, 2014, a statement containing names
of top ten employees in terms of remuneration drawn
and the particulars of employees employed throughout
the year and in receipt of remuneration of ?1.02 crore
or more per annum and employees employed for part
of the year and in receipt of remuneration of ^8.50 lakh
or more per month is to be provided.

However, in terms of the first proviso to Section 136(1)
of the Act, the Annual Report, excluding the aforesaid
information, is being sent to Shareholders of the
Company and others entitled thereto.

The said information is available for inspection at the
registered office of the Company up to the date of
ensuing AGM. Shareholders interested in obtaining a
copy may request the same by writing to the Company
Secretary at cs@onesourcecdmo.com.

17. Board Diversity

Your Company recognises and embraces the
importance of a diverse board in its success. The Board
has adopted the Board Diversity Policy, which sets out
the approach to the diversity of the Board of Directors.
The said Policy is available on the Company’s website
at https://www.onesourcecdmo.com/wp-content/
uploads/2026/08/Board-Diversity-Policy.pdf.

18. Management Discussion and Analysis Report

The Management Discussion and Analysis Report
as prescribed under Part B of Schedule V read with
Regulation 34 of the Listing Regulations forms part of
this Annual Report.

19. Corporate Governance Report

The Corporate Governance Report along with a certificate
on Corporate Governance from Vijayalakshmi K.,
Practicing Company Secretary, Bengaluru, for the FY26,
forms part of this Annual Report.

20. Board Meetings

The Board of Directors of the Company met 6 (six) times
during the year under review. The dates of the Board
meetings and the attendance of the Directors at the
meetings are provided in the Corporate Governance
Report, which forms a part of this Annual Report.

21. Committees of the Board

As on March 31, 2026, the Board had the following
Committees:

Statutory Committees:

• Audit Committee (AC)

• Nomination and Remuneration Committee (NRC)

• Stakeholders’ Relationship Committee (SRC)

• Risk Management Committee (RMC)

• Corporate Social Responsibility Committee (CSR
Committee)

Non-statutory Committees:

• Strategic Advisory Committee

• Scientific Advisory Committee

• Environmental, Social, Governance (ESG)
Committee

• Management Committee

The Corporate Governance Report, which forms part
of this Annual Report, includes details about the
meetings and composition of the Board’s Statutory
Committees.

22. Related Party Transactions

The Policy on Materiality of and dealing with Related
Party Transactions, as approved by the Board, is
available on the website of the Company at

https://www.onesourcecdmo.com/wp-content/

uploads/2025/01/Policy-on-materiality-of-RPT.pdf

As required under Section 134(3)(h) of the Act, details
of transactions entered with related parties under the
Act are given in Form AOC-2, provided as Annexure - 4
to this Report.

23. Whistle-blower Policy/Vigil Mechanism

The Company is committed to maintaining the highest
standards of ethical, moral, and legal conduct in all its
business operations. In line with this commitment, the
Board of Directors has adopted a Whistle Blower Policy
in compliance with the provisions of the Act and the
SEBI Listing Regulations.

The Whistle Blower Policy provides an appropriate
mechanism for directors, employees, and other
stakeholders to make protected disclosures relating
to actual or suspected violations, including financial
irregularities, misrepresentation, fraud, theft, bribery,
corrupt business practices, insider trading, and leak
or suspected leak of unpublished price sensitive
information, among others.

The Policy also sets out the procedures for receipt,
tracking, investigation, and resolution of complaints,
including disciplinary action, where warranted. Further,
it provides safeguards to ensure confidentiality of the
reporting process and protection of whistle blowers
against any form of retaliation or victimization.

Protected disclosures may be made through various
channels, including email, submission of a physical
letter, a designated toll free number operated by
an independent third party, or through the SEEK
Application (available to employees only), which is also
operated by an independent third party.

The Audit Committee oversees the implementation and
effective functioning of the Whistle Blower Policy, and
no personnel of the Company have been denied direct
access to the Audit Committee under this mechanism.

Whistle Blower Policy is available on below link:

https://www.onesourcecdmo.com/wp-content/

uploads/2025/07/Whistle-Blower-Policy.pdf.

24. Risk Management

The Board of Directors has established a Risk
Management Committee to oversee the spectrum
of organisational risks diligently. The Corporate
Governance Report, an integral part of this document,
provides detailed insights into the committee’s
operations. The committee evaluates the effectiveness
of risk mitigation strategies, ensuring they are robust
and responsive.

25. Auditors

a. Statutory Auditors

Pursuant to the provisions of Sections 139
and 142 of the Act read with the rules made
thereunder, and the applicable provisions of the
Listing Regulations, the term of appointment of
the existing Statutory Auditors of the Company,
M/s. Deloitte Haskins and Sells, shall conclude at
the 19^th Annual General Meeting (“AGM”) of the
Company.

Based on the evaluation and recommendation
carried out by the management, M/s. B S R & Co.
LLP has been proposed for appointment as the
Statutory Auditors of the Company.

The proposal was placed before the Audit
Committee, which, after due consideration,
recommended the same to the Board of Directors.
The Board recommends the appointment of
M/s. B S R & Co. LLP as the Statutory Auditors of
the Company to the approval of the Members at
the ensuing AGM.

b. Secretarial Auditors

The Secretarial Audit is conducted to verify
compliance with the provisions of applicable
laws, rules, regulations, guidelines and Secretarial
Standards, thereby strengthening the Company’s
overall compliance framework.

Pursuant to the provisions of Section 204 of the
Act, Companies (Appointment and Remuneration
of Managerial Personnel) Rules, 2014 read with
Listing Regulations, the Shareholders in the AGM
held on September 22, 2025, have approved the
appointment of M/s. D V & Associates, Practicing
Company Secretaries, as the Secretarial Auditors
of the Company for a term of five (5) consecutive
years, commencing from April 1, 2025, i.e., from
FY 2025-26 to FY 2029-30.

The Secretarial Audit Report issued by the
Secretarial Auditor in Form No. MR 3 is enclosed
as Annexure - 5 to this Report. The said report
does not contain any qualification, observation,
reservation or adverse remark.

Further, pursuant to Regulation 24A of the Listing
Regulations the Annual Secretarial Compliance
Report for the financial year ended March 31,
2026, issued by the Secretarial Auditor, was
submitted to the Stock Exchanges within the
prescribed statutory timelines.

c. Internal Auditors

M/s. Grant Thornton Bharat LLP (formerly known
as Grant Thornton India LLP) (LLPIN: AAA-7677)
are the Internal Auditors of the Company.

During the year under review, Internal Auditors
were satisfied with the management response on
the observations and recommendations made by
them during the course of their audit.

d. Cost Auditors

Pursuant to Section 148(1) of the Act, the
Company is required to maintain cost records
and accordingly such accounts and records were
maintained for the financial year ending March 31,
2026.

26. Business Responsibility and SustainabilityReport

The Business Responsibility and Sustainability Report
of the Company for the year ended March 31, 2026 is
provided in a separate section and forms part of this
Annual Report.

27. Corporate Social Responsibility (“CSR”)

The Company is not mandatorily required to spend on
CSR activities pursuant to the provisions of Section 135
of the Companies Act, 2013.

However, as per the conditions under the Karnataka
Industrial Areas Development Board (KIADB)
guidelines for OneSource: Unit 2, the Company is
required to undertake CSR activities.

The Board has constituted a CSR Committee to monitor
the aforesaid spend under KIADB guidelines.

Based on the recommendation of the said Committee,
the Board has adopted a CSR policy that provides
guiding principles for selection, implementation and
monitoring of CSR activities and formulation of the
annual action plan.

During the year, the Committee monitored the CSR
activities undertaken by the Company including the
expenditure incurred thereon as well as implementation
and adherence to the CSR policy.

The CSR Policy of the Company is available on the
website of the Company and can be accessed through
the web link at:

https://www.onesourcecdmo.com/wp-content/

uploads/2024/10/CSR-Policy-April-2022.pdf.

28. Conservation of Energy, Technology Absorption,
and Foreign Exchange Earnings and Outgo

The information on conservation of energy, technology
absorption and foreign exchange earnings and outgo
as stipulated under Section 134(3)(m) of the Act read
with Rule 8 of the Companies (Accounts) Rules, 2014,
is provided as Annexure - 6 to this Report.

29. Disclosure of compliance with other statutory
laws

a. Disclosure under the Sexual Harassment of
Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013

The Company has zero tolerance for sexual
harassment at workplace and has adopted a Policy
on Prevention of Sexual Harassment in line with
the requirements of The Sexual Harassment of
Women at the workplace (Prevention, Prohibition
& Redressal) Act, 2013 (POSH Act) and Rules
framed thereunder. OneSource has adopted a
gender-neutral policy.

In compliance with the provisions of the POSH
Act, Company has constituted Internal Complaints
Committee (ICC) to redress complaints received
on sexual harassment. Adequate trainings
and awareness programmes against sexual
harassment are conducted across the organisation
to sensitise employees to uphold dignity of their
colleagues and prevention of sexual harassment.

During the financial year under review, the
Company did not receive any complaints of
sexual harassment. Consequently, there were no
complaints disposed of during the year, and no
complaints were pending for more than 90 days
as at the end of the year.

b. Compliance with the Maternity Benefit Act,
1961

During the year under review, the company has
duly complied with provisions of the Maternity
Benefit Act, 1961 and all the facilities and
support systems are in place to ensure a safe,
secure, and inclusive working environment for
women employees, in line with the requirements
prescribed under Maternity Benefit Act, 1961 and
relevant rules thereunder.

c. Number of employees as on March 31, 2026

d. Material Changes and Commitments

There have been no material changes and
commitments affecting the Company’s financial
position between the end of the financial year and

the date of this report other than those which have
already been disclosed to the Stock Exchanges.

30. Cyber Security

Due to the rise in cyberattacks, we regularly review
our cybersecurity practices and improve our processes
and technology controls based on new threats. Our
company has real-time security monitoring in place,
along with necessary controls at different levels,
from individual user devices to networks, servers,
applications, and data.

31. Regulatory Orders

Currently, there are no substantial or material orders
issued by regulatory bodies, courts, or tribunals that
could affect the Company’s capacity to continue as a
going concern. According to the Listing Regulations, the
Company is committed to transparently disclosing any
significant events, important information, or regulatory
directives it receives, ensuring that stakeholders are
kept informed on a regular basis.

32. Annual Return

The draft Annual Return as required under sub-section

(3) of Section 92 of the Act in form MGT-7 is made
available on the website of the Company and can be
accessed at https://www.onesourcecdmo.com/wp-
content/uploads/2026/08/Annual-Return-1.pdf

33. Secretarial Standards

The Company has complied with the applicable
Secretarial Standards issued by the Institute of
Company Secretaries of India, as amended from time
to time.

34. Unclaimed Shares Suspense Account

The Company, on December 10, 2024 had allotted
equity shares to shareholders of Strides Pharma
Science Limited (“Strides”) and Steriscience Specialties
Private Limited (“Steriscience”) pursuant to the Scheme
of Arrangement amongst the Company, Strides, and
Steriscience.

The equity shares of the Company against the (1) IEPF
account of Strides, (2) Letter of Confirmation cases of
Strides, (3) Unclaimed Suspense account of Strides and

(4) Shares held in physical form in Strides, were issued
in demat form to corresponding suspense account
opened by the Company with NSDL.

Details pertaining to Unpaid Shares Suspense account
is provided in the Corporate Governance Report.

35. Other Disclosures

a. During the year under review, the Statutory Auditor,
Internal Auditor and Secretarial Auditor have not
reported any instances of fraud committed in the
Company by its Officers or Employees to the Audit
Committee and/or Board under section 143(12) of
the Act.

b. There are no proceedings initiated/pending
against the Company under the Insolvency and
Bankruptcy Code, 2016, and there is no instance
of one-time settlement with any Bank or Financial
Institution.

c. The Company has not issued any equity shares
with differential rights regarding dividends, voting,
or other rights.

d. There has been no change in the nature of the
business of the Company during the financial year
ended March 31, 2026.

36. Directors’ Responsibility Statement

Pursuant to the requirements under Section 134(5)
read with Section 134(3)(c) of the Act, with respect
to Directors’ Responsibility Statement, it is hereby
confirmed that:

a. In the preparation of the annual accounts for
the financial year ended March 31, 2026, the
applicable accounting standards have been
followed and there are no material departures
from the same;

b. t he Directors have selected such accounting
policies and applied them consistently and made
judgements and estimates that are reasonable
and prudent so as to give a true and fair view of
the state of affairs of the Company as on March
31, 2026 and of the profit of the Company for the
year ended on that date;

c. the Directors have taken proper and sufficient
care for the maintenance of adequate accounting
records in accordance with the provisions of the
Act for safeguarding the assets of the Company
and for preventing and detecting fraud and other
irregularities;

d. the Directors have prepared the annual accounts
on a going concern basis;

e. the Directors have laid down internal financial
controls to be followed by the Company and that
such internal financial controls are adequate and
were operating effectively; and

f. the Directors have devised proper systems to
ensure compliance with the provisions of all
applicable laws and that such systems were
adequate and operating effectively.

37. Acknowledgement

Your Directors take this opportunity to express their
sincere gratitude to all employees, customers, and
suppliers who have contributed to OneSource’ success
over years. Their hard work, dedication, and support
have been instrumental in achieving our goals and
driving our business forward.

We would also like to thank our shareholders for their
continued trust and investment in the Company. We
are committed to build strong relationships with all our
stakeholders, and we value their feedback and inputs
as we strive to improve and grow our business.

We look forward to your continued support in the years
ahead.

For and on behalf of the Board of Directors

Arun Kumar

Chairperson,

Date: May 13, 2026 Non-Executive Director

Place: Bengaluru DIN: 00084845