On behalf of the Board of Directors of the Company, it gives us immense pleasure in presenting the 35^th Board's Report, along with
the Audited Financial Statements (Consolidated & Standalone) for the financial year ended March 31,2026.

1. Financial performance

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 of Consolidated and Standalone Financial performance of the Company for the financial year ended
March 31,2026 is provided below:

¹Revenues referred in this section excludes interest income, guarantee commission, rental income and other non-operating income.
²EBITDA referred in this section is post employee benefit expenses and operating expenses.

2. Company's performance

FY26 marks another year of strong and profitable growth
for the Company, underpinned by its strategic focus on
Profitability, Efficiency, and Growth. Company continues
to maintain a disciplined approach to profitability-led
growth, prudent capital allocation and building a resilient
and sustainable business model.

Over the past 12 quarters, Company has consistently
strengthened its profitability metrics, enhanced cash
flow generation, and reinforced its balance sheet,
reflecting sustained execution excellence and improved
financial discipline.

During FY26, the operating environment remained
dynamic and volatile, primarily due to geopolitical
uncertainties. These factors resulted in incremental cost
pressures, particularly in the manufacturing and supply
chain operations. Despite these challenges, Company
demonstrated resilience, delivering consistent quarter-
on-quarter growth in absolute EBITDA and Operational
Profit After Tax.

Company's strong fundamentals, diversified business
mix, and disciplined financial management continue to
position it well to navigate uncertainties with confidence.

Consolidated Financial Performance for
the year

During FY26, Company reported Consolidated Revenue of
T48,587 million, as compared to T45,653 million in FY25,
registering a growth of 6.4% year-on-year. Gross Margins
expanded by 310 basis points to T29,000 million, as
compared to T25,854 million in FY25, reflecting a growth
of 12.2%.

EBITDA for FY26 stood at T9,253 million, as against T8,028
million in FY25, representing a growth of 15.3%, with
EBITDA Margin improving to 19.0% from 17.6% in FY25.

Operational Profit After Tax for FY26 increased significantly
to T5,181 million, compared to T3,447 million in FY25,
registering a growth of 50.3%. Operational Earnings Per
Share (EPS) improved to T56.2 per share from T37.5 per
share in FY25, reflecting a growth of 50.1%.

Reported Profit After Tax for FY26 increased to T5,745
million from T4,094 million in FY25, reflecting a growth of
40.3%. Reported EPS improved to T60.3 per share in FY26
from T44 per share in FY25, reflecting a growth of 37%.

As at March 31, 2026, reported net debt stood at T14,365
million, after foreign exchange impact of T1,115 million.
The net debt-to-equity ratio improved to 0.46x in FY26, as
compared to 0.59x in FY25. The current ratio improved to
1.28x in FY26 from 1.24x in FY25, and Return on Capital
Employed (ROCE) increased to 15.76% in FY26 from
14.86% in FY25, reflecting improved capital efficiency.

Market Wise Performance for the year
U.S. Market

Revenue from the U.S. business stood at 124,897 million
in FY26, as compared to 124,457 million in FY25. The
business remained stable despite competitive pressures
in recent product launches and a weaker flu season during
the second half of the year.

During the year, Company launched six products and
discontinued nine products that did not meet internal
margin thresholds, reinforcing its continued focus on
portfolio rationalisation and profitability.

Out of 70 commercialised products, Company maintained
leadership (top three ranking) in 37 products, contributing
~75% of U.S. revenues.

As at March 2026, Company had filed 223 ANDAs
and received approvals for 208 ANDAs, covering
~ 150 products.

Company continues to focus on its generics business
in North America with a focus on relaunching products
from its dormant and acquired ANDA portfolio. Multiple
products are currently under various regulatory stages,
including Prior Approval Supplements (PAS) and will
be launched at opportune time. In parallel, Company
continues to invest in building a differentiated and
sustainable pipeline to support long-term growth.

Ex-U.S. Market

Ex-U.S. business, comprising Other Regulated Markets
(ORM) and Growth Markets, delivered strong performance
during the year.

Revenue from this business stood at 122,404 million in
FY26, as compared to 118,512 million in FY25, reflecting
a growth of 21% year-on-year.

Growth in the Ex-U.S. business was driven by consistent
execution across key markets, including Europe, the UK,
the Nordics, Australia, and continued momentum in Africa.
These markets are scaling effectively and contributing
meaningfully to profitability, reinforcing their position as
key drivers of both growth and earnings.

Growth in Ex-U.S. business is expected to be driven
by expansion of the product portfolio, new customer
partnerships, conversion of a robust pipeline of
opportunities, and continued progress in filings
and approvals.

Access Market

Revenue from this business stood at 11,286 million in
FY26, as compared to 12,684 million in FY25, reflecting a
decline of ~52% year-on-year.

The segment, which comprises tender-based and
institutional sales across low-and middle-income
countries, is characterised by variability in order volumes
and timing.

The Access Markets business remains tactical,
contributing to volume and advancing its broader
objective of improving access to affordable medicines
in underserved regions. The segment also helps offset
manufacturing facility operating costs, thereby driving its
efficient utilisation.

Other Key achievements during FY26

• ESG & Sustainability - Company continues to make
strong progress on ESG front which is reflected in a
5-point improvement in its S&P Global's Corporate
Sustainability Assessment (CSA) and its inclusion in
the S&P Global Sustainability Yearbook for the second
consecutive year.

Company achieved a CSA score of 80, placing it
amongst a select group of global companies recognised
for strong sustainability performance. This reflects
continued commitment to environmental stewardship,
social responsibility, and governance excellence.

• Organizational Recognition - During the year,
Company and its teams received multiple recognitions
from leading industry bodies for contributions to
innovation, operational excellence, and leadership.
These accolades underscore the depth of capabilities
and execution excellence across the organisation.

• Corporate Social Responsibility - During the year,
Company successfully completed Vidyadhama -
Strides' Model Government Higher Primary School at
Haragadde, Bengaluru Rural. This flagship initiative
reflects Company's sustained commitment to
strengthening public education infrastructure and
creating meaningful, long-term impact for underserved
communities. Spread across 2.16 acres, the campus
has been thoughtfully designed to provide a safe,
inclusive, and future-ready learning environment.

In summary, FY26 reflects strong operational execution,
sustained improvement in profitability, and disciplined
financial management. Growth in Ex-U.S. business, margin
expansion, and strengthened balance sheet position have
enhanced the Company's resilience.

As we look ahead, we will continue to focus on delivering
profitable growth and strengthening our presence across
both U.S. and Ex-U.S. markets. At the same time, we
remain committed to building a structurally resilient
business, driven by sustainable growth, disciplined
capital allocation, and continued strengthening of the
balance sheet.

3. Dividend for FY26

Board of Directors, at their meeting held on May 18, 2026,
have recommended a Dividend of 15 per equity share of
face value 110 each (50%) for the financial year ended
March 31, 2026, subject to approval of the shareholders
at the ensuing Annual General Meeting (AGM). The total
dividend payout, if approved, would amount to ~1461
million, representing a payout ratio of 25% on a standalone
basis and 8% on a consolidated basis.

Dividend has been recommended in accordance with
the Dividend Distribution Policy of the Company and
shall be paid out of profits for the financial year ended
March 31, 2026.

If approved by the shareholders at the AGM, Dividend
shall be paid within 30 days from the date of AGM, after
deduction of tax at source, as applicable, to those
shareholders whose names appear in the Register of
Members or in the list of beneficial owners furnished by the
depositories as on the Record Date fixed for this purpose.

Strides' Dividend Distribution Policy is drafted in
accordance with the provisions of Regulation 43A of the
SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015 (SEBI Listing Regulations).

During the year under review, the Policy was reviewed and
amended to incorporate guidance on dividend payout
parameters. The Dividend Distribution Policy is available
on the Company's website, and the web link thereto is
provided on page 138 of this Annual Report.

4. Transfer to General Reserve

Movement in Reserves and Surplus for the financial year
ended March 31, 2026, is set out in the Statement of
Changes in Equity forming part of the Consolidated and
Standalone Financial Statements (Refer Note No. 20 and
19, respectively).

5. Update on Corporate Actions

During the year under review, your Company has
undertaken/ initiated the following key corporate actions:

5.1. De-merger of Identified Business of

Arco Lab Private Limited, a Wholly owned
Subsidiary of the Company

Arco Lab Private Limited (Arco Lab), a wholly owned
subsidiary of the Company, operates as a Global Life
Sciences Capability Centre providing life sciences
consulting, digital innovation, and business solutions.

Pursuant to a Scheme of Arrangement under Sections 230
to 232 of the Act, Arco Lab has proposed to demerge its
Life Sciences and Digital Innovation Capabilities business
into Pivot Path Private Limited (Pivot Path), a company
incorporated under the Act on April 10, 2025, and currently
a wholly owned subsidiary of Arco Lab.

Appointed Date for the proposed Scheme is April 10, 2025.

Upon the Scheme becoming effective, investment held
by Arco Lab in Pivot Path shall stand cancelled, and Pivot
Path shall issue shares to Strides Pharma Science, and
consequently shall become a wholly owned subsidiary
of Strides.

Arco Lab and Pivot Path have jointly filed a petition with
the Hon'ble NCLT, Bengaluru Bench, seeking approval
of the Scheme. As at the date of this Report, the Scheme

is pending for final approval from Hon'ble NCLT. The
proposed restructuring is not expected to have any
financial or operational impact on the Company.

5.2 Acquisition of balance stake in Neviton
Softech Private Limited, India (Neviton)

Neviton Softech Private Limited (Neviton), India, is engaged
in providing IT services and engineering solutions to a
diverse client base, with core capabilities in development
of machine interfaces using IoT devices and integration of
live data into real time applications.

Arco Lab Private Limited (Arco Lab), a wholly owned
subsidiary of the Company, had acquired an initial equity
stake of 25% in Neviton in August 2022, followed by an
additional 25% equity stake in January 2024.

On February 16, 2026, Arco Lab acquired the remaining
50% equity stake in Neviton from the existing shareholder
for a cash consideration of EUR 2 million ~1218 million.

Consequently, with effect from the said date, Neviton has
become a wholly owned subsidiary of Arco Lab and a step
down subsidiary of the Company.

The acquisition is expected to strengthen synergies
between Arco Lab and Neviton, enhance the Group's
knowledge based and IT service offerings, and support
operational efficiencies, cost optimisation, and increased
digitisation across the Group.

5.3 Agreement to acquire stake in Asaco Trinity
Proprietary Limited, South Africa

Strides Pharma Asia Pte. Ltd., a wholly owned subsidiary
of the Company in Singapore has entered into a Sale of
Shares Agreement on March 11, 2026, for acquisition
of 12.5% equity stake in Asaco Trinity Proprietary
Limited (Asaco).

Asaco is one of the shareholders of Trinity Pharma
Proprietary Limited (Trinity), South Africa. Trinity is a step-
down subsidiary of the Company with business operations
in South Africa.

The said transaction shall enable Strides' group to increase
its effective shareholding in Trinity by ~2.5% from 51.76%
to 54.26%. The proposed transaction is subject to certain
closing conditions and is expected to be completed
by Q2FY27.

5.4 Strengthening Presence in
Sub-Saharan Africa

During the year under review, Strides Pharma International
AG (SPIAG), a step-down subsidiary of the Company,
entered into definitive agreements with Sandoz AG,
Switzerland, and its group entities for acquisition and
in-licensing of a portfolio of branded generic products
across Sub-Saharan Africa (SSA).

The transaction covers key SSA markets, including
Western Africa (comprising 10 countries), Ghana,
Nigeria and Kenya. The acquired portfolio comprises
multiple well-established brands across anti-infective,
cardiovascular and dermatology therapeutic segments,
several of which individually generate annual sales
exceeding U.S.$ 1 million. In addition to outright
acquisitions, select products will continue to be marketed
by Strides under in-licensing arrangements. To ensure
uninterrupted supply, Strides will also enter into a
manufacturing and supply agreement with Sandoz.

The said acquisition significantly expands Strides'
footprint in SSA, more than doubling its presence in the
region. With the integration of Sandoz's branded portfolio
into Strides' existing operations, the Group is expected to
emerge among the top five pharmaceutical companies
in SSA by sales and among the top two players in the
representable market.

The transaction is expected to create strong strategic
synergies by expanding Strides' market reach,
strengthening therapeutic leadership and enhancing
engagement with prescribers across the region. The
expanded portfolio provides access to new therapeutic
areas, facilitates cross-selling opportunities and enables
deeper penetration across pharmacies, clinics and
healthcare institutions. These benefits, together with
operational efficiencies from an enhanced commercial
and supply chain platform, are expected to support
sustainable growth and long-term value creation.

The initial consideration for the transaction is U.S.$ 12
million, payable at closing and funded through internal
accruals. The transaction is expected to be EPS accretive.
Completion is expected by the end of Q2 FY27, subject to
customary regulatory and antitrust approvals.

6. Composition of the Board

The Company's Board of Directors comprises a diverse
group of accomplished professionals who bring a broad
range of industry expertise, strategic perspective,
and strong governance stewardship to the decision
making process.

The Board plays a pivotal role in shaping Strides' strategic
direction and supporting the long term sustainability of
the business. Through its focus on governance practices,
risk management, and performance monitoring, Strides'
Board provides effective leadership to drive responsible
growth and long term value creation.

List of Board of Directors and movement during the year
forms part of the Corporate Governance Report which
forms part of Annual Report.

Retirement by Rotation and Re-appointment
at the ensuing AGM

In accordance with the provisions of Section 152 of the
Act and the Company's Articles of Association, Mr. Arun

Kumar (DIN: 00084845), is liable to retire by rotation at
the ensuing AGM and being eligible, offers himself for his
re-appointment.

Board recommends his re-appointment to the Board.

Relevant details including profile of Mr. Arun Kumar is
provided in the AGM Notice.

KMP of the Company during the year and as
at the date of this report, are set out below:

• Mr. Arun Kumar (Whole Time Director and KMP upto
April 4, 2025)

• Mr. Badree Komandur (Managing Director & Group CEO)

• Mr. Aditya Arun Kumar (Executive Director - Business
Development)

• Ms. Manjula Ramamurthy (Company Secretary &
Compliance Officer)

• Mr. Vikesh Kumar (Group Chief Financial Officer)

7. Board Meetings

Board meets at regular intervals to review performance of
the Company, to discuss and decide on various business
strategies, policies and other matters.

During FY26, Board of Directors met six times. The
intervening gap between meetings was within the period
prescribed under the Act and SEBI Listing Regulations.

Details of meetings of Board held during FY26 along with
information relating to attendance of each director is
provided in the Corporate Governance Report which forms
part of Annual Report.

8. Board Committees

Board has constituted sub-committees to focus on specific
areas and make informed decisions within the authority
delegated to each of the Committees. Each Committee
of the Board is guided by its Charter, which defines the
scope, powers and composition of the Committee.

Board has constituted the following Statutory Committees:

1) Audit Committee

2) Nomination and Remuneration Committee

3) Stakeholders' Relationship Committee

4) Corporate Social Responsibility Committee; &

5) Risk Management & Sustainability Committee

Board has also constituted a non-statutory committee
titled ‘Management Committee'. This Committee primarily
considers matters that may be delegated by the Board of
Directors of the Company under Section 179 of the Act and
other delegable matters for administrative convenience.

Management Committee comprises of two Independent Directors and an Executive Director. Chairperson of the Committee
is appointed on a rotation basis amongst the Independent Directors. This Committee meets at such intervals, based on
requirements of the Company.

Details pertaining to composition, terms of reference, details of meetings held during FY26 along with attendance of each of
the committee members for all the above Committees are provided in the Corporate Governance Report, which forms part of
this Annual Report.

During the year, all recommendations made by the Committees were approved by the Board.

9. Share Capital

Authorized Share Capital

During the year under review, there was no change in the Authorized Share Capital of the Company.

Authorised Share Capital of the Company as at March 31,2026 stood at 12,183,700,000/- divided into 218,370,000 equity shares
of 110 each.

Issued, Subscribed and Paid-up Share Capital

Issued, Subscribed and Paid-up Share Capital of the Company as at March 31, 2026, stood at 1921,727,140/- divided into
92,172,714 equity shares of 110/- each.

Movement in issued, subscribed and paid-up share capital during the year is as under:

10. Subsidiary, Joint Ventures and Associate Companies

Strides operates through a global structure comprising over 30 entities across North America, Africa, Europe, Asia and Australia.

These entities play a critical role in strengthening market presence, supporting regulatory filings, enabling manufacturing
operations and undertaking marketing and distribution of pharmaceutical products.

Details of Subsidiaries, Joint Venture, and Associate entities as at March 31, 2026 are provided below:

List of Subsidiaries, which have become or ceased to be part of the Group during the year is also
mentioned below:

Policy on Material Subsidiaries

Company has formulated a Policy for determination of
Material Subsidiaries in accordance with Regulation 16(1)

(c) of the SEBI Listing Regulations.

The said Policy is available on the Company's website,
and the web link for accessing the same is provided on
page 138 of this Annual Report.

Governance Framework at Subsidiaries

Governance practices across the subsidiaries,
particularly material subsidiaries, are harmonized with
Strides' compliance standards. Governance frameworks
at the subsidiary level, including Board processes,
financial controls, legal & regulatory filings and statutory
compliances, are closely aligned with those of the
parent Company.

11. Accounts of Subsidiaries

During the year, Board of Directors have reviewed affairs
of the subsidiaries. As part of the quarterly/ annual
board meeting, Audit Committee and Board of Directors
of the Company are provided with requisite updates/
information/ reports relating to subsidiaries as required
under the Act and SEBI Listing Regulations.

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

A statement containing salient features of financial
statements of the Company's subsidiaries, joint ventures
and associate companies, and their contribution to the
overall performance of the Company, as required in Form
AOC 1 is enclosed as Annexure-1 to this Report.

12. Corporate Governance Report

As per SEBI Listing Regulations, Corporate Governance
Report along with Statutory Auditor's Certificate thereon
for FY26 forms part of this Annual Report.

Further, disclosure about following matters is provided
in the Corporate Governance Report (which forms part of
this Board's Report):

• Vigil Mechanism/ Whistle Blower Policy

• Policy on Directors Appointment and Remuneration
(Strides' Nomination and Remuneration Policy)

• Policy on Prevention of Sexual Harassment at workplace

• Declaration by the Independent Directors of
the Company

• Board Evaluation

• Investor Education and Protection Fund

13. Management Discussion and
Analysis Report

Management Discussion and Analysis Report (MD&A)
prepared in accordance with the SEBI Listing Regulations,
provides a comprehensive overview of the Company's
operations, industry trends, financial performance, and
strategic outlook.

MD&A Report for FY26 forms part of this Annual Report.

14. Business Responsibility and
Sustainability Report

As per SEBI Listing Regulations, Business Responsibility
and Sustainability Report for FY26 forms a part of this
Annual Report.

15. Employee Stock Option Scheme

Presently, your Company has one Stock Option Plan viz.,
Strides' Employee Stock Option Plan 2016 (ESOP Plan).

A statement giving detailed information on stock
options granted to Employees under the ESOP Plan 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 is also available at
https://www.strides.com/investors/shareholder-
information/general-meeting.

16. Particulars of Employees and
Remuneration

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.

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 11.02 Crore or more per
annum and employees employed for part of the year and
in receipt of remuneration of 18.50 Lakh or more per month
is to be provided.

However, in terms of the second proviso to Section
136(1) of the Act, 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. Any Shareholder interested in obtaining a copy
thereof, may write to the Company Secretary in this regard.

17. Corporate Social Responsibility (CSR)

Strides' CSR initiatives help address socio-economic
challenges in the realms of Health & Hygiene, Education,
Employability & Livelihood and Community Welfare.

A detailed report on the CSR activities undertaken during
FY26 is enclosed as Annexure-4 to this Report. Group CFO
of the Company has certified that CSR funds disbursed for
the projects have been utilized for the purposes and in the
manner as approved by the Board.

During the year, CSR Policy was reviewed and amended
to enhance clarity, strengthen governance roles, and
encourage employee volunteering.

Strides' CSR Policy is available on Company's website and
weblink to access the same is provided in Page 138 of the
Annual Report.

18. Particulars of Loans given, Investments
made, Guarantees given or Security
provided by the Company

Company has disclosed the full particulars of loans given,
investments made, guarantee given or security provided
during the year, as required under Section 186 of the
Act, Regulation 34(3) and Schedule V of the SEBI Listing
Regulations in Note no. 40 to the standalone financial
statements, which forms part of this Annual Report.

19. Particulars of Contracts or
Arrangements with Related Parties

In accordance with the requirements of the Act and the
SEBI Listing Regulations, your Company has framed a
Policy on Materiality and Dealing with Related-Party
Transactions (RPTs).

During the year under review, the said Policy was reviewed
by the Audit Committee and Board to align with the
regulatory amendments, amongst other changes. The
updated Policy is available on the Company's website and
web link to access the same is provided in Page 138 of the
Annual Report.

Company has a process in place to periodically review and
monitor RPTs. All RPTs entered into by the Company during
FY26 were in ordinary course of business and at arm's
length basis. There are no materially significant related
party transactions made by the Company which may have
potential conflict with interests of the Company.

Information on transactions with related parties pursuant
to Section 134(3)(h) of the Act read with Rule 8(2) of the
Companies (Accounts) Rules, 2014 is enclosed as
Annexure-5 to this Report.

All transactions with related parties are also disclosed in
Note no. 45 to the Standalone Financial Statements in the
Annual Report.

20. Auditors and Audit Reports

20.1 Statutory Auditors

In terms of the provisions of Section 139 of the Act, a
company shall appoint/ re-appoint an audit firm as
Statutory Auditors for not more than two terms of five
consecutive years.

M/s. B S R & Co. LLP, Chartered Accountants (Firm
Registration no. 101248W/ W-100022) were re-appointed
as Statutory Auditors of the Company at the AGM held on
September 9, 2022 for the second term of five years i.e.,
from the conclusion of the 31^st AGM till the conclusion of
the 36^th AGM of the Company to be held in the year 2027.
Accordingly, BSR will be completing their final term as
Statutory Auditors of the Company in 2027.

Statutory Auditors' Report for the financial year ended
March 31, 2026, is enclosed along with the financial
statements in the Annual Report. The said report was
issued by the Statutory Auditors with an unmodified
opinion and does not contain any qualifications,
observations or adverse remarks.

Appointment of Deloitte Haskins & Sells, LLP as
Statutory Auditors from FY28

Based on the recommendation of Audit Committee,
Board of Directors of the Company at their meeting
held on May 18, 2026 has approved and recommended
the appointment of M/s. Deloitte Haskins & Sells, LLP,
Chartered Accountants (Firm Registration No. 117366W/
W-100018) as its Statutory Auditors for a first term of five
consecutive years commencing from the conclusion of
36^th AGM of the Company (to be held in the year 2027). Their
first term of five years shall be valid upto the conclusion of
41^st AGM of the Company (to be held in the year 2032).

The said appointment is subject to approval of
shareholders of the Company in their AGM to be held in
the year 2027, further subject to fulfilment of all applicable
regulatory requirements including Auditors independence
in accordance with the relevant laws and regulations.

20.2 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 observations
and recommendations made by them during course of
their audit.

20.3 Cost Auditors

Pursuant to the provisions of Section 148(1) of the Act,
Company is required to maintain cost records, and
accordingly, such cost accounts and records are duly
made and maintained.

Cost Audit for FY26

Board of Directors of the Company, at their meeting held
on May 22, 2025, based on the recommendation of Audit
Committee, approved the appointment of M/s. Rao, Murthy
& Associates, Cost Accountants (Firm Registration No.
000065), as the Cost Auditors of the Company for FY26.
The remuneration payable to Cost Auditors for FY26 was
approved by the Members at the Annual General Meeting
held on August 7, 2025.

Cost Audit for FY27

Members may further note that, over the last few financial
years, Company's export revenues in foreign currency have
consistently exceeded 75% of its total standalone turnover.
During FY26, revenue from exports in foreign currency
constituted ~96% of the total standalone turnover.

Accordingly, as per the provisions of the Act, Company is
eligible for and has availed the exemption from cost audit
for FY27. Assessment relating to cost audit requirement
shall be carried out by the Company on a year-on-
year basis.

20.4 Secretarial Auditors

M/s. V Sreedharan and Associates (Firm Registration no.
P1985KR14800), a Peer Reviewed Practicing Company
Secretaries, based out of Bengaluru, is the Secretarial
Auditor for the Company.

Secretarial Audit for FY26, inter alia, included audit of
compliance with the Act and the Rules made thereunder,
SEBI Listing Regulations and other applicable Regulations
prescribed by SEBI, amongst others. Copy of the said
Report is enclosed as Annexure-6 to this report.

Secretarial Auditor has observed that Company intimated
the Stock Exchanges regarding changes in Senior
Management Personnel (cessation/ appointment) on
May 10, 2025, which was beyond the timeline prescribed
under applicable regulatory provisions, and in this regard,

BSE Limited, vide its letter dated July 18, 2025, sought
clarification from the Company.

Company has responded to BSE Limited vide its letter
dated July 22, 2025 that the delay in intimation was due
to administrative reasons. Since then, Company has
strengthened its internal processes and coordination
mechanisms to ensure timely identification and disclosure
of events in compliance with Regulation 30 of the SEBI
Listing Regulations. No fines or penalties have been
imposed on the Company in this regard as on the date of
this Report.

20.5 Secretarial Audit Report of Material
Unlisted Subsidiary

In accordance with the provision of 24(A) of the SEBI Listing
Regulations, a listed company is required to annex the
secretarial audit report of its material unlisted subsidiary
in India to its Annual Report.

Arco Lab Private Limited (Arco Lab) was identified as a
Material Unlisted Subsidiary of the Company in India
for FY26.

Secretarial Audit for Arco Lab was conducted by
Vijayalakshmi K, a Peer Reviewed Practicing Company
Secretary. The said Report, enclosed asAnnexure 7 to this
report, does not contain any qualifications, observations
or adverse remarks.

21. Internal Financial Controls

Company has in place adequate framework for Internal
Financial Controls as required under Section 134(5)(e) of
the Act.

During the year under review, such controls were tested
and no material weaknesses in their design or operations
were observed.

22. Risk Management

Risk Management has always been an integral aspect of
our organisational activities and control systems.

Company has in place Enterprise Risk Management
(ERM) Policy which provides a structured and disciplined
approach to identify, assess, mitigate, and monitor risks
across the organisation. Our ERM framework is dynamic
and deeply integrated into our decision-making processes
continuously evolving to align with our strategic priorities
and the shifting global risk landscape. It addresses a
wide range of potential exposures, including financial,
operational, geopolitical, compliance and Sustainability-
ESG risks, ensuring that Company remain agile and future-
ready.

ERM Policy is available on Company's website and
weblink to access the same is provided in Page 138 of the
Annual Report.

Pursuant to the SEBI Listing Regulations, Company has
constituted a Risk Management Committee. During the
year, Committee's mandate was expanded to include
oversight of sustainability goals, and it was consequently
renamed as the ‘Risk Management and Sustainability
Committee'.

Details pertaining to composition, terms of reference,
details of meetings held during FY26 along with attendance
of each of the committee members are provided in the
Corporate Governance Report, which forms part of this
Annual Report.

23. Other Disclosures

23.1 Nature of Business of the Company

During the year under review, there has been no change in
nature of business of the Company.

23.2 Deposits

During the year under review, Company has neither
accepted nor renewed deposits from the public falling
within the ambit of Section 73 and 74 of the Act read
with the relevant Rules framed thereunder. Hence, the
requirement for furnishing of details relating to deposits
covered under Chapter V of the Act or the details of
deposits which are not in compliance with Chapter V of
the Act is not applicable.

Requisite return for FY26 with respect to amount(s) not
considered as deposits shall be filed with the Registrar of
Companies within the prescribed timelines. The Company
does not have any unclaimed deposits as at the date of
this report.

23.3 Disclosure on compliance with Secretarial
Standards

Company complies with all applicable mandatory
Secretarial Standards issued by the Institute of Company
Secretaries of India.

23.4 Reporting of Fraud

No frauds were reported by Auditors of the Company as
specified under Section 143 of the Act for FY26.

23.5 Significant and material orders passed by
Regulators or Courts

During the year under review, there were no significant
and material orders passed by the regulators or courts
impacting the going concern status of your Company and
its operations in future.

23.6 Annual Return of the Company

Pursuant to Section 92 of the Act and Rules made
thereunder, Annual Returns of the Company for FY26 has
been uploaded on the website of the Company and can
be accessed athttps://www.strides.com/Upload/PDF/
annual-return-2026.pdf.

23.7 Conservation of Energy, R&D, Technology
Absorption and Foreign Exchange Earnings/
Outgo

Details of Energy Conservation, R&D, Technology
Absorption and Foreign Exchange Earnings/ Outgo is
enclosed as Annexure-8 to this Report.

23.8 Confirmation regarding compliance to
Maternity Benefit Act

During the year under review, Company has complied with
the provisions of Maternity Benefit Act, 1961 along with
all applicable amendments and undertook necessary
measures to ensure compliance for all eligible employees.

23.9 General

Further, your Directors' state that no disclosure or
reporting is required in respect of the following matters
as there were no transactions on these items during the
year under review:

• Issue of equity shares with differential rights as to
dividend, voting or otherwise as per Section 43(a)(ii) of
the Act;

• Issue of Sweat Equity Shares under any scheme as per
provisions of Section 54(1)(d) of the Act;

• Company does not have any scheme of provision of
money for purchase of its own shares by employees or
by trustees for the benefit of employees;

• No instances of non-exercising of voting rights in
respect of shares purchased directly by employees
under a scheme pursuant to Section 67(3) of the Act;

• MD & CEO of the Company does not receive
any remuneration or commission from any of
its Subsidiaries;

• There was no revision in the Financial Statements
and Board's Report of the Company during the year
under review;

• Company has not made any application under the
Insolvency and Bankruptcy Code, 2016 (IBC). Further,
there are no proceedings admitted against the Company
under IBC; and

• There was no one-time settlement done with the Banks
or Financial Institutions. Therefore, the requirement to
disclose details of difference between valuation done
at the time of taking the loan from Banks or Financial
Institution and at the time of one-time settlement is
not applicable.

24. Material changes and commitments

There were no material changes and commitments
affecting the financial position of the Company between
end of the Financial Year and the date of this report.

25. Directors' Responsibility Statement

Pursuant to the requirement under Section 134 (3)(c)

of the Act with respect to the Directors' Responsibility

Statement, Board of Directors of your Company state that:

(a) in preparation of annual accounts, the applicable
accounting standards have been followed along with
proper explanation relating to any material departures.

(b) 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 at the end of the financial year and of the
profit and loss of the Company for that period;

(c) directors have taken proper and sufficient care
for 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) directors have prepared the annual accounts of the
Company on a going concern basis;

(e) directors have laid down internal financial controls
to be followed by the Company and that such
internal financial controls are adequate and are
operating effectively;

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

26. Acknowledgements

Your Directors' place on record their sincere appreciation
for the collective dedication, commitment, and valuable
contributions of all employees of the Company,
across locations and levels, whose efforts have been
instrumental in achieving the overall growth and progress
of the Company.

Directors also express their gratitude to the Company's
vendors, suppliers, bankers, financial institutions,
employee unions, members, customers, Government
and regulatory authorities, stock exchanges, consultants,
and all other business associates and stakeholders for
their continued cooperation, support, and confidence in
the Company.

Company remains committed to building strong and
enduring relationships with all its stakeholders and values
their feedback and inputs as it continues to strengthen its
operations and pursue sustainable growth.

For and onbehalf of the Board of Directors

Arun Kumar Badree Komandur

Date: May 18, 2026 Non-Executive Director & Chairperson Managing Director & Group CEO

Place: Bengaluru DIN: 00084845 DIN: 07803242