1. Terms of Redeemable Preference shares (RPS) having nominal value of EURO. 1 each

During the previous year, the Company had converted the loan given into Redeemable Preference shares (RPS) in the month of August 2024. The issuer has an early redemption option before expiry of 10 years. Post 10 years and up to completion of 20 years, the investor has the redemption option. Redemption will be at face value along with accumulated premium to provide IRR of 7% per annum. Non-cumulative dividend on preference shares shall be payable at 0.1% only in case of adequate profits.

2. Terms of 13,93,66,844 Redeemable Preference shares (RPS) having nominal value of USD. 1.1646 each

During the year, Company has converted instrument currency of Redeemable preference shares issued by its wholly owned subsidiary, Piramal Dutch Holdings BV from EURO to USD. The impact of such change is a foreign exchange of H10.82 Crores for the year ended March 31, 2026.

3. Terms of Zero Coupon optionally fully convertible debentures (OFCD) of J 10 each

During the previous year, the Company had converted the loan given by subscribing for optionally fully convertible debentures in the month of October 2024. Both, the issuer and investor shall have an option to convert each OFCD into 1 equity share of INR 10/- each by giving a month notice. The OFCDs are convertible into equity shares of face value of INR 10/- each or at a fair value determined as per Rule 11UA of Income Tax Rules, 1962 whichever is higher as on the date of issue of OFCD, for every 1 OFCD held, at any time. If not converted earlier, Issuer has the option to redeem or convert the outstanding OFCDs on expiry of 10 years from the date of allotment at par.

4. Unquoted Equity Investments measured at FVTPL

The Company has invested in unquoted equity shares of Dalavaipuram Renewables Private Limited and Clean Max Aero Private Limited under the Captive / Group Captive Power Purchase arrangement for procurement of renewable energy.

These investments have been classified and measured at Fair Value Through Profit or Loss (FVTPL) in accordance with Ind AS 109 - Financial Instruments. However, due to non-availability of sufficient recent financial and valuation information from the investee companies as at the reporting date, the management was unable to reliably determine the fair value of these unquoted investments.

Accordingly, pending availability of relevant valuation inputs and considering the immateriality of the amounts involved, these investments have been carried at cost, which management considers to be a reasonable approximation of fair value at the reporting date.

The credit period on sale of goods and services generally ranges from 7 to 150 days.

The Company has a documented Credit Risk Management Policy for its Pharmaceuticals Manufacturing and Services business. For every new customer (except established large pharma companies), Company performs a credit rating check using an external credit agency. If a customer clears the credit rating check, the credit limit for that customer is derived using internally documented scoring systems. The credit limits for all the customers are reviewed on an ongoing basis.

Of the Trade Receivables balance as at March 31, 2026 of H 1,405.84 Crores (Previous Year H 1,666.69 Crores) the top 3 customers of the Company represent the balance of H750.12 Crores (Previous year H 733.16 Crores ). There are three customers (Previous year three Customer) who represent more than 5% of total balance of Trade Receivables.

The Company has entered into an arrangement with a bank to sell a portion of its trade receivables on a Non or Limited recourse basis. The receivables sold are agreed with the bank based on an assessment of the creditworthiness of the underlying customers and the contractual terms of the receivables. The Company has transferred substantially all the risks and rewards of ownership of the receivables to the bank and, accordingly, the receivables have been derecognised from the balance sheet. During the year ended March 31, 2026, trade receivables of H 64.59 Crs (Previous Year- Nil) were derecognised under this arrangement

The Company has used a practical expedient by computing the expected credit loss allowance for External Trade Receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience, adjusted for forward looking information. The Company has concluded that the carrying amount of the trade receivables represent the Company's best estimate of the recoverable amounts. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix.

(iv) Terms and Rights attached to equity shares:

Equity Shares:

The Company has one class of equity shares having a face value of H10/- per share. Each shareholder is eligible for one vote per share held. The dividend if declared by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

1. The Company has made an annual assessment of the recoverable value of intangible assets under development taking into account the prevailing market conditions and revised expectations of the future performance. Resultantly, during the year ended March 31, 2026, an impairment charge of H65.57 crores was recognized in accordance with principles of IND AS 36 Impairment of Assets, with respect to a certain intangible assets under development in the Company. Refer Note 53 (iii).

2. On November 21, 2025, the Government of India notified the four Labour Codes - the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020, consolidating 29 existing labour laws. The Ministry of Labour & Employment has also published draft Central Rules and FAQs. The Company has assessed and disclosed the incremental impact of these changes on the basis of currently ascertainable position (pending issuance of state-wise rules and other clarifications), consistent with the guidance provided by the Institute of Chartered Accountants of India. The incremental impact resulting from these changes is H 26.94 crore. The Company continues to monitor the finalization of Central / State Rules and clarifications from the Governments on other aspects of the Labour Codes and would provide appropriate accounting effect on the basis of such developments as needed Considering the materiality and regulatory-driven, non-recurring nature of this impact, the Company has presented such incremental impact under "Exceptional Items” in the financial results for the year ended March 31, 2026.

36. Employee Benefits :

Brief description of the Plans:

Other Long Term Employee Benefit Obligations:

Leave Encashment, which is expected to be availed or encashed beyond 12 months from the end of the year is treated as other long term employee benefits. The Company's liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. Actuarial losses/ gains are recognised in the Statement of Profit and Loss in the year in which they arise.

Long Term Service Award is recognised as a liability at the present value of the defined benefit obligation as at the Balance Sheet date.

Defined Contribution plans:

The Company's defined contribution plans are Provident Fund (in case of certain employees), Superannuation, Employees State Insurance Fund and Employees' Pension Scheme (under the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952). The Company has no further obligation beyond making the contributions to such plans.

Post-employment benefit plans:

Gratuity for employees in India is as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for the number of years of service. The gratuity plan is a funded plan and the Company makes contributions to recognised funds in India. The Company's Gratuity Plan is administered by an insurer and the Investments are made in various schemes of the trust. The Company funds the plan on a periodical basis.

In case of certain employees, Provident fund is administered through an in-house trust. Periodic contributions to the trust are invested in various instruments considering the return, maturity, safety, etc., within the overall ambit of the Provident Fund Trust Rules and investment pattern notified through the Ministry of Labour investment guidelines for exempted provident funds.

These plans typically expose the Group to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. Plan investment is a mix of investments in government securities, equity, mutual funds and other debt instruments.

Interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the return on the plan's debt investments.

Longevity risk

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan's liability.

Salary risk

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan's liability.

The gratuity plan is a funded plan and the Company makes contributions to trust administered by the Company. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments. In respect of certain employees, Provident Fund contributions are made to a Trust administered by the Company. The contributions made to the trust are recognised as plan assets. Plan assets in the Provident fund trust are governed by local regulations, including limits on contributions in each class of investments. The Company actively monitors how the duration and the expected yield of the investments are matching the expected cash outflows arising from the employee benefit obligations, with the objective that assets of the gratuity / provident fund obligations match the benefit payments as they fall due. Investments are well diversified, such that the failure of any single investment would not have a material impact on the overall level of assets. A large portion of assets consists of government and corporate bonds, although the Company also invests in equities, cash and mutual funds. The plan asset mix is in compliance with the requirements of the regulations in case of Provident fund.

The expected rate of return on plan assets is based on market expectations at the closing of the year. The rate of return on long-term government bonds is taken as reference for this purpose.

In case of certain employees, the Provident Fund contribution is made to a Trust administered by the Company. In terms of the Guidance note issued by the Institute of Actuaries of India, the actuary has provided a valuation of Provident fund liability based on the assumptions listed above and determined that there is no shortfall at the end of each reporting period.

*Attrition rate (30% per annum for service of 4 years and below and 8.5% per annum for service of 5 years and above for year ending March 26 and March 25) considered is the management's estimate based on the past long-term trend of employee turnover in the Company. The tenure has been considered taking into account the past long-term trend of employees' average remaining service life which reflects the average estimated term of post-employment benefit obligation.

The Company's Gratuity Plan is administered by an insurer and the Investments are made in various schemes of the trust. The Company funds the plan on a periodical basis.

In case of certain employees, Provident fund is administered through an in-house trust. Periodic contributions to the trust are invested in various instruments considering the return, maturity, safety, etc., within the overall ambit of the Provident Fund Trust Rules and investment pattern notified through the Ministry of Labour investment guidelines for exempted provident funds.

Weighted average duration of the defined benefit obligation is 6 years.(Previous year :6 years)

The above sensitivity analysis are based on change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The liability for Leave Encashment (Non - Funded) as at March 31,2026 is H53.03 Crores .(Previous year H42.31 crores)

The liability for Long term Service Awards (Non - Funded) as at March 31,2026 is H4.86 Crores .(Previous year H 3.56 crores)

45. Capital Management

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings as detailed in note 17 & 20 offset by cash and bank balances and current investments) and total equity of the Company.

The Company determines the amount of capital required on the basis of annual as well as long term operating plans and other strategic investment plans. The funding requirements are met through non convertible debt securities or other long-term / short-term borrowings. The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

a. Liquidity Risk Management

Liquidity Risk refers to insufficiency of funds to meet the financial obligations. Liquidity Risk Management implies maintenance of sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit lines to meet obligations when due.

The Senior Management along with centralized treasury is responsible for the management of the Company's short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows, and by assessing the maturity profiles of financial assets and liabilities. The Company has access to undrawn borrowing facilities at the end of each reporting period, as detailed below:

b. Interest Rate Risk Management

The Company is exposed to interest rate risk as it has assets and liabilities based on floating interest rates as well. Senior Management along with centralised treasury assess the interest rate risk run by it and provide appropriate guidelines to the treasury to manage the risk. The Senior Management along with centralised treasury reviews the interest rate risk on periodic basis and decides on the asset profile and the appropriate funding mix. The Senior Management along with centralised treasury reviews the interest rate gap statement and the interest rate sensitivity analysis.

This includes Short Term Borrowings limits including but not limited to Working Capital Demand Loans, Packing Credits, Letter of Credits, etc. where credit rating has been obtained and which can be issued, if required, within a short period of time.

The following table details the Company's remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. To the extent that interest flows are floating rate, the rate applicable as of reporting period ends respectively has been considered.

The sensitivity analysis below have been determined based on the exposure to interest rates for liabilities at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming the amount of the liabilities outstanding at the end of the reporting period was outstanding for the whole year and the rates are reset as per the applicable reset dates. The basis risk between various benchmarks used to reset the floating rate liabilities has been considered to be insignificant.

If interest rates related to borrowings had been 100 basis points higher / lower and all other variables were held constant, the Company's Profit before tax for the year ended/Other Equity (pre-tax) as on March 31, 2026 would decrease/increase by H 7.09 Crores for total borrowings (Previous year H 12.17 Crores) . This is attributable to the Company's exposure to borrowings at floating interest rates.

In assessing whether the going concern assumption is appropriate, the Company has considered a range of factors relating to current and expected profitability, debt repayment schedule and potential sources of replacement financing. The Company has performed sensitivity analysis on such factors considered and based on current indicators of future economic conditions; there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.

The balances disclosed in the table above are the contractual undiscounted cash flows.

If interest rates related to loans given had been 100 basis points higher/lower and all other variables were held constant, the Company's Profit before tax for the year ended/Other Equity (pre-tax) as on March 31, 2026 would increase/decrease by H5.01 Crores (Previous year H 4.48 Crores). This is attributable to the Company's exposure to lendings at floating interest rates.

c. Foreign Currency Risk Management

The Company is exposed to Currency Risk arising from its trade exposures and Capital receipt / payments denominated, in other than the Functional Currency. The Company has a detailed policy which includes setting of the recognition parameters, benchmark targets, the boundaries within which the treasury has to perform and also lays down the checks and controls to ensure the effectiveness of the treasury function. The Company has defined strategies for addressing the risks for each category of exposures (e.g. for exports , for imports, for loans, etc.). The centralised treasury function aggregates the foreign exchange exposure and takes prudent measures to hedge the exposure based on prevalent macro-economic conditions.

d. Accounting for cash flow hedge

The objective of hedge accounting is to represent, in the Company's financial statements, the effect of the Company's use of financial instruments to manage exposures arising from particular risks that could affect profit or loss. As part of its risk management strategy, the Company makes use of financial derivative instruments, such as forward exchange contracts for hedging the risk arising on account of highly probable foreign currency forecast sales.

For derivative contracts designated as hedge, the Company documents, at inception, the economic relationship between the hedging instrument and the hedged item, the hedge ratio, the risk management objective for undertaking the hedge and the methods used to assess the hedge effectiveness. The derivative contracts have been taken to hedge foreign currency fluctuations risk arising on account of highly probable foreign currency forecast sales.

The Company applies cash flow hedge to hedge the variability arising out of foreign exchange currency fluctuations on account of highly probable forecast sales. Such contracts are designated as cash flow hedges as per Ind AS 109.

The Company determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency, amount and timing of their respective cash flows. The foreign currrency forward contracts are denominated in the same currency as the highly probable future sales, therefore the hedge ratio is 1:1. Further, the entity has excluded the foreign currency basis spread and takes such excluded element through the income statement. Accordingly, the Company designates only the spot rate in the hedging relationship.

The Company has a Board approved policy, adopted at group level on assessment, measurement and monitoring of hedge effectiveness which provides a guideline for the evaluation of hedge effectiveness, treatment and monitoring of the hedge effective position from an accounting and risk monitoring perspective. Hedge effectiveness is ascertained at the time of inception of the hedge and periodically thereafter. The Company assesses hedge effectiveness on prospective basis. The prospective hedge effectiveness test is a forward looking evaluation of whether or not the changes in the fair value or cash flows of the hedging position are expected to be highly effective in offsetting the changes in the fair value or cash flows of the hedged position over the term of the relationship.

Hedge effectiveness is assessed through the application of dollar offset method and designation of spot rate as the hedging instrument. The excluded portion of the foreign currency basis spread is taken directly through income statement.

Except for those financial instruments for which the carrying amounts are mentioned in the above table, the Company considers that the carrying amounts recognised in the financial statements approximate their fair values.

For financial assets/liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-thecounter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

Valuation techniques used to determine the fair values:

i. This includes mutual funds and equity shares which are fair valued using quoted prices and closing NAV in the market.

ii. This includes forward exchange contracts. The fair value of the forward exchange contract is determined using forward exchange rate at the balance sheet date.

iii. These investments have been classified and measured at Fair Value Through Profit or Loss (FVTPL) in accordance with Ind AS 109 - Financial Instruments. However, due to non-availability of sufficient recent financial and valuation information from the investee companies as at the reporting date, the management was unable to reliably determine the fair value of these unquoted investments. Accordingly, pending availability of relevant valuation inputs and considering the immateriality of the amounts involved, these investments have been carried at cost, which management considers to be a reasonable approximation of fair value at the reporting date.

During the year, the Company, as part of its annual review of intangible assets under development, reassessed certain product development projects in light of changes in market conditions, evolving competitive alternatives, and updated estimates of commercial viability. Based on this reassessment of risks and expected returns, management concluded that it would not be commercially prudent to continue further development of certain projects.

Accordingly, the Company determined that the probable future economic benefits associated with these assets are no longer sufficient to support their carrying values or justify further capital deployment. Consequently, the carrying amount of such intangible assets under development aggregating to ?66.06 crores (previous year: ?25.94 crores) has been fully impaired during the year.

Of the total impairment recognised, ?65.56 crores (previous year: Nil) has been presented as an 'Exceptional item' in the Statement of Profit and Loss, considering the materiality and non-recurring nature of the charge, in accordance with the presentation requirements of Ind AS 1. The balance amount has been recognised under 'Other expenses'.

(1) Working Capital excludes current borrowings

(2) Tangible Net Worth Total Debt Deferred Tax Liability= Capital Employed

55 The Company has not been declared as wilful defaulter by any bank or financial institution or any other lender.

56 The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

57 The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

58 The Company has not traded or invested in crypto currency or virtual currency during the financial year.

59 Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the unaudited books of account of the Company of the respective quarters, except as mentioned in Note 20. The statement for the quarter ended March 31, 2026 will be submitted to the bank basis audited financial statements for the year ended March 31, 2026.

60 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

61 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

62 The Company has transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, and disclosed as under:

The above goodwill relates to past acquisitions of Hemmo Pharmaceuticals Private Limited of H145.05 Crores (Previous year - H145.05 Crores), Convergence Chemicals Private Limited of H8.08 Crores (Previous year- H8.08 crores) and pharma business of Piramal Enterprises Limited (demerged undertaking as defined in the scheme) of H7.42 Crores (Previous year- H7.42 Crores).

For the purpose of impairment testing, goodwill acquired in a business combination is allocated to the cash generating units (CGU) or group of CGUs, which are benefited from the synergies of the acquisition. Goodwill is reviewed for any impairment at the operating segment, which is represented through group of CGUs.

The recoverable amount of a CGU is the higher of its fair value less cost to sell and its value- in- use.

CGUs to which goodwill has been allocated are tested for impairment annually, or more frequently when there is indication for impairment. The financial projections basis which the future cash flows have been estimated consider (a) reassessment of the discount rates, (b) revisiting the growth rates factored while arriving at terminal value and subjecting these variables to sensitivity analysis. If the recoverable amount of a CGU is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit on a pro-rata basis of the carrying amount of each asset in the unit.

The recoverable amount being fair value (less cost to sell) was computed using the discounted cash flow method for which the estimated cash flows for a period of 5 years were developed using internal forecasts, and a post-tax discount rate of 14.50% to 15.00% (Previous year-12.50%) and long term growth rate of 5% (Previous year-7%) (Fair Value Hierarchy- Level 3).

The post tax discount rate takes into account cost of both debt and equity. The cost of equity is derived from the expected return on investment by the Company's investors. The cost of debt is based on the interest-bearing borrowings the Company is obliged to service. Company-specific risk is incorporated by applying individual beta factors. The beta factors are evaluated annually based on publicly available market data.

Growth rate is based on published industry research. Management recognises that the speed of technological change and the possibility of new entrants can have a significant impact on growth rate assumptions. The effect of new entrants is not expected to have an adverse impact on the forecasts, but could yield a reasonably possible alternative to the estimated long-term growth rate. Any reasonable possible reduction in the longterm growth rate is not expected to result in impairment.

When using industry data for projecting cash flows for future years, management assesses how the Company's position, relative to its competitors, might change over the forecast period. Management expects the Company's marketshare to be stable over the forecast period.

The management believes that any reasonably possible changes in the key assumptions would not cause the carrying amount to exceed the recoverable amount of cash generating unit.

No impairment was identified as of March 31, 2026 as the recoverable value of the CGUs exceeded the carrying values.