Sun Pharmaceutical Industries Ltd

Dear Shareholders,

Fiscal 2024-25 was marked by robust growth for Sun Pharma as the Company continued to make progress towards its strategic goals and improve its capabilities.

As we navigate the evolving landscape of the global pharmaceutical industry, we remain firm in our commitment to growth and profitability while proactively addressing the increasing risks faced by our Company and the industry.

Over the past few years, Sun Pharma's operating environment has undergone a remarkable change, prompting us to evolve in step with the shifting dynamics. Early in the decade, the COVID-19 pandemic disrupted medicine availability during a time of critical need, which led us to redesign our supply chains and strengthen local sourcing. Over time, significant price erosion in parts of generic business, including the US, has led us to adopt a more conservative approach to those markets. As healthcare budgets continue to soar across the world, pharma buyers across both Developed and Emerging Markets are seeking greater value for their medicine purchases.

In response, we are fortifying our branded portfolio with products that enhance the ‘standard of care' while remaining strongly cost-competitive in the generics business.

Some of the challenges cited above are likely to remain or even escalate in the future. Due to increasing geopolitical uncertainties, reliable supply of safe medicines has become high priority for nations worldwide, leading to demand for on-shoring or near-shoring of pharma manufacturing. It is likely that price pressures on drug manufacturers may further increase. In this dynamic environment, our endeavour has been to stay competitive by continuously offering compelling value to our patients, prescribers and buyers.

A characteristic feature of the pharma industry is that it is highly regulated, with varied regulations across countries adding to the complexity of operations. Regulatory changes can impact the way we operate in any geography, making it imperative for us to remain agile. Given that we operate over 100 countries, with a portfolio comprising both innovative and generic products, our readiness to adjust to changes in the external environment is a distinct advantage that has served us well and should remain a source of competitive advantage in future.

The Company has evolved alongside its expanding operations, with a demonstrated ability to manage and grow multiple pharma businesses simultaneously. This diversification has made us less dependent on any geography, event or specific product. Further, within each of our businesses, our focused efforts to minimise risks have positioned us for sustainable growth.

During FY25, our global consolidated revenues grew by 9.0% to I 520 Billion, while EBITDA grew by 17.3% to

I 153 Billion. Adjusted net profit was up by 19.0% to I 120 Billion. Our return ratios also continued their upward trend.

Our Global Specialty or Innovative Therapies business continued on its growth trajectory during the year. The contribution of Global Specialty to the consolidated revenue increased from 18% in FY24 to 20% in FY25.

Over the last few years, we have made substantial investments to enhance our capabilities in the Global Specialty business. This includes senior-level hires across various functions and the strengthening of our in-house clinical development capabilities. Our Specialty R&D spend increased to US$ 154 Million in FY25, reflecting our commitment to innovation. Having reached a critical mass, we are poised to increase our investments to scale up in the Innovative Therapies segment.

During the year, our market share continued to improve across geographies, including in India. We remain dedicated to serving patients and prescribers, a principle that has guided us since inception. Our recent initiatives include expanding our Global Specialty pipeline with new product introductions and increasing our field force in India and other Emerging Markets.

We lead the Pharmaceutical market in India in value as well as prescription volumes as per AIOCD-AWACS data. In FY25, our India Formulation sales reached I 169 Billion, up by 13.7% and accounting for about 33% of overall revenues. According to AIOCD-AWACS, our market share improved to 8.3% on a Moving Annual Total (MAT) basis ending March 2025 against 8.0% during the previous period ending March 2024. Our growth in India is primarily driven by higher volumes and new product launches. We have consistently demonstrated volume-led growth in comparison to the industry, which in turn, is primarily growing through price increases.

As per Specialty Market and Sales Resource Centre (SMSRC) data for MAT February 2025, Sun Pharma ranks #1 by prescriptions across 13 different classes of doctors.

We sustained our momentum in India with 42 new product launches during FY25. We undertook field force expansion in India during the reporting year, adding 8% to our existing field strength. Our India field force expansion, implemented in successive rounds over the last five years, has helped us declutter our portfolio and expand our presence in Tier II and Tier III towns.

In the US, our revenue grew by 5.8% to I 162 Billion, accounting for approximately 31% of our consolidated revenues. Our growth in the US has been driven by

Specialty sales, with several products gaining sustained traction. The Generics business in the US, on the other hand, was adversely affected by the ongoing compliance issues at our manufacturing facilities, as well as additional competition in certain products.

Our sales in Emerging Markets grew by 9.2% to I 94 Billion, contributing ~18% to our consolidated revenues. Our core markets, including Romania and Brazil, have continued to do well, recording strong double-digit growth in local currency terms.

Sales in the Rest of World (RoW) markets grew by 6.7% to I 72 Billion, contributing ~14% to the consolidated revenues. Our performance was impacted by price cuts in Japan in the early part of the year. In RoW, growth in the Specialty business compensated for pricing pressure in the Generics business.

The Global Specialty revenue recorded a strong 17.1% growth to reach US$ 1,216 Million during FY25. Key products such as Ilumya, Winlevi, Cequa and Odomzo continued to perform well globally. FY25 also proved to be an eventful year in terms of enhancing our Specialty pipeline.

At present, a significant portion of our investment in the Specialty business has not started to yield revenues. Our spend on the acquisition of Concert

Pharmaceuticals and Checkpoint Therapeutics will only provide commensurate returns over a longer time-frame.

These long term returns are not assured merely by paying up the transaction value, as these investments have given us ownership of pre-revenue assets. We believe that when such long-term bets pay off, they have the potential to transform the business at scale. We shall therefore continue to allocate capital for such investments while remaining focused on driving growth in our core businesses and retaining our competitive advantage across each of them.

In May 2025, our Company announced completion of the acquisition of Checkpoint Therapeutics, Inc., which is a focused on developing novel treatments for patients with solid tumour cancers. With the acquisition, Sun Pharma has added Unloxcyt™ (cosibelimab-ipdl) – the first and only US FDA-approved anti-PD-L1 treatment for metastatic or locally advanced cutaneous squamous cell carcinoma (cSCC) to the Company's global onco dermatology franchise.

In October 2024, Sun Pharma announced a globally exclusive agreement with Philogen for the commercialisation, licensing, and supply of Fibromun (L19TNF), an innovative anti-cancer immunotherapy. Sun Pharma will be responsible for the global commercialisation of Fibromun, currently in registration trials for the treatment of soft tissue sarcoma and glioblastoma.

In July 2024, US FDA approved Leqselvi, an oral Janus Kinase (JAK) inhibitor for the treatment of severe alopecia areata. In April 2025, the US Court of Appeals for the Federal Circuit vacated the preliminary injunction that had restricted the medicine's market launch.

In June 2024, the European Medicines Agency (EMA) validated the submission of the Marketing Authorisation Application (MAA) for Nidlegy (melanoma and non-melanoma skin cancers).

ILUMYA/ILUMETRI is an IL-23 inhibitor used in the treatment of adults with moderate-to-severe plaque psoriasis, who are also candidates for systemic therapy or phototherapy. We market the product ourselves in several countries, including the US, Canada, Australia, Japan, and through our partners in Western Europe and China.

WINLEVI is a first-in-class topical androgen receptor inhibitor, approved by the US FDA, for the topical treatment of acne vulgaris in patients above the age of 12.

CEQUA, indicated for topical ophthalmic use, is the first and only US FDA-approved cyclosporine treatment delivered with NCELLTM technology. This product offers the highest concentration of cyclosporine for ophthalmic use approved by the US FDA, and is indicated to increase tear production in patients with dry eye, an inflammatory disease that afflicts more than 16 Million people in the US.

ODOMZO, a hedgehog pathway inhibitor, is indicated for the treatment of adult patients with locally advanced basal cell carcinoma (laBCC) that has recurred following surgery or radiation therapy, or for those who are not candidates for surgery or radiation therapy. Odomzo is available in the US and several other international markets.

LEVULAN KERASTICK+BLU-U combines a powerful 20% aminolevulinic acid HCl (ALA) topical treatment with blue-light precision while limiting exposure to the deeper tissue. It is the only Photodynamic Therapy indicated for the treatment of minimally-to-moderately thick actinic keratoses of the face or scalp, or actinic keratosis of the upper extremities.

Our R&D investment for FY25 stood at I 32 Billion, or 6.2% of the overall sales. During the year, we filed approximately 280 formulation dossiers globally.

Out of total R&D spend, Sun Pharma spent 40% on Specialty or Innovative R&D. Sun Pharma's Specialty R&D pipeline comprises seven candidates in various stages of clinical trials. Our pipeline in advanced clinical stage or post-approval stage is made up of the following products:

• LEQSELVI, a US FDA-approved JAK inhibitor indicated for the treatment of adults with severe alopecia areata. Open Label Extension studies for Leqselvi are ongoing.

• UNLOXCYT, a US FDA-approved anti-PD-L1 treatment for advanced cutaneous squamous cell carcinoma. Unloxcyt further bolsters our innovative portfolio in onco-derm therapy.

• NIDLEGYTM is filed with EMA for the treatment of locally advanced fully resectable melanoma. NIDLEGYTM is also being investigated for the treatment of locally advanced melanoma and for the treatment of high-risk basal cell carcinoma and other non-melanoma skin cancers. Sun Pharma is the partner for commercialisation of the candidate in EU, Australia and New Zealand.

• Our currently marketed product, ILUMYA , is undergoing Phase-3 clinical trials for additional indication of treatment of psoriatic arthritis. Topline data for the studies is expected during the second half of CY25.

• FIBROMUN consists of the L19 antibody fused to tumour necrosis factor (i.e.L19TNF). Late-stage clinical trials with registration potential are going on in soft tissue sarcoma and glioblastoma.

Adherence to global cGMP standards is a key priority for us, and we keep a relentless focus on 24x7 compliance to ensure uninterrupted supplies to our customers and patients worldwide.

We are facing US FDA compliance-related issues at three of our facilities. These include an import alert at the Halol facility, receipt of non-compliance letter for the Mohali facility, both during FY23. Additionally, our Dadra facility was accorded an Official Action Indicated (OAI) status in FY24 . Besides these three, all our facilities remain compliant with global regulatory standards, including those of US FDA. We have completed the implementation of Corrective and Preventive Action (CAPA) in the Halol facility, which is currently awaiting US FDA inspection, and we are in the process of implementing CAPA at the Mohali and Dadra facilities.

Sustainability has become pivotal in building a more equitable, environmentally conscious, and sustainable future for all. Sustainability is not just a commitment but a shared responsibility that calls for decisive action. Our approach focuses on embedding sustainable practices into our operations to deliver long-term value for all stakeholders.

I am happy to let you know that Sun Pharma has been included in the S&P Global Sustainability Yearbook 2025, earning its place among the top 5% of pharmaceutical companies assessed by S&P globally for this Yearbook, which recognises companies within their respective industries that have demonstrated strong performance in corporate sustainability.

We have an unwavering focus on combating climate change. Key focus areas include improving energy efficiency, increasing the share of renewable energy, strengthening water conservation, and advancing sustainable waste management. Attracting, retaining and nurturing a highly diverse and skilled workforce are also key focus areas for us. Our Corporate Social Responsibility (CSR) initiatives for the local communities are centred around areas like healthcare, education, water & sanitation, rural development, and environmental conservation. We implement focused and socially responsible initiatives with the objective of promoting the holistic development of our local communities. Our comprehensive corporate governance framework underpins our commitment to upholding the highest standards of ethical governance and enabling sustainable outcomes for all our stakeholders.

We are conscious of our responsibility towards the future of our planet, and it demands increased focus on climate resilience and responsible business practices. We will continue to endeavour to integrate ESG into our business strategy.

Our focus has always been on sustainable cost reduction via technology interventions and process enhancements. We are also directing our efforts towards reducing working capital deployment across our businesses. Sustained efforts are being made to further improve our manufacturing efficiency, optimise our production footprint, and reduce overall fixed costs.

With a strong net cash position of approximately US$ 3.1 Billion as of March 31, 2025, we are well-positioned to explore inorganic growth opportunities, including but not limited to strengthening our Global Specialty portfolio.

We anticipate mid to high single-digit consolidated topline growth in FY26, and expect our Global Specialty business to continue on its growth path. Our R&D spend in FY26 is likely to be in the range of 6%-8% of sales, with increased spending expected on Specialty products.

• Enhance compliance across our manufacturing operation, and work towards achieving full regulatory resolution at the three facilities facing US FDA action

• Ensure the readiness for our upcoming launches, namely LEQSELVI and UNLOXCYT

• Advance our pipeline of Global Specialty products

• Prepare the business for potential disruptions arising from tariffs and geopolitical issues

• Ensure supply chain continuity and simultaneously focus on inventory optimisation

• Enhance IT systems to facilitate business operations and ensure security and digital transformation

• Embed sustainability practices across our operations as per our clear and actionable targets to achieve our sustainability goals

• Continued focus on cost and operational efficiency

• Sustain the positive momentum in improving overall return ratios

Our growth over the past four decades would not have been possible without the Company's dedicated workforce. In FY25, Sun Pharma employed more than 43,000 people worldwide. We continue to work towards ensuring that our Human Resource management systems keep pace with this expansion. It is our constant endeavour to treat all our employees in a fair and equitable manner.

We are grateful to our Board of Directors for their guidance and support.

Your support to us as a shareholder is of vital importance, and we hope that you will continue to repose your confidence in us in the future.

Regards,