Zydus Lifesciences Ltd

Dear Shareholders,

I am pleased to present our inaugural Integrated Annual Report for FY 2024-25. It captures Zydus' three-decade journey of advancing healthcare through science, innovation, and operational excellence. This report outlines our financial performance, ESG initiatives, and our commitment to transparency, sustainability, and long-term value creation.

Structured around seven capitals - financial, manufacturing, intellectual, human, social, relationship and natural - it offers a holistic view of our impact on people, communities, and the broader ecosystem. With this, Zydus aligns closer to global benchmarks in integrated reporting, reaffirming our purpose: improving lives through science, innovation, care, and sustainable growth. This is our continuing journey of ‘Transforming Health, Touching Lives.'

As we reflect on FY 2024-25, I congratulate the entire Zydus team for sustaining strong financial performance and advancing our core purpose. We further strengthened our balance sheet, expanded our market presence, and incubated new growth verticals. It was a landmark year, with robust, broad-based growth across our businesses.

Our entry into the global MedTech space marks a strategic step towards building a new growth pillar. Backed by advanced manufacturing and a specialist team, the business currently offers interventional cardiology solutions, with more to follow.

Innovation drives everything we do at Zydus. Guided by our patient-centric approach, we aim to deliver breakthrough solutions that address unmet needs, tackle neglected diseases, and enhance quality of life.

Our efforts on advancing our portfolio of NCEs, biologics including biosimilars, vaccines as well as rare disease therapies are meant to improve global patients' health outcomes, impacting their lives and eventually help create lasting stakeholder value.

Our NCE research has made strong progress in liver diseases such as MAFLD, MASH, and PBC. We are also advancing therapies for sickle cell disease. Additionally, our pipeline includes promising candidates for addressing unmet medical need indications like, ALS, UC, Parkinson's disease and CAPS.

Our U.S. based rare disease business, Sentynl Therapeutics, has made a meaningful difference in the lives of newborns with rare neurological disorders. The company is now awaiting USFDA approval for CUTX-101, a treatment for Menkes disease, which currently has no approved therapy. These therapies for rare and orphan diseases play a vital role in improving outcomes and quality of life for patients with unmet needs.

Our 27,000 enthusiastic and committed employees drive our progress and purpose. Their expertise powers our impact on patient lives. With a solid foundation and forward-looking strategy, Zydus is well-positioned to seize the opportunities of the next decade - each milestone a testament to our people's collective excellence.

AI is transforming our workplace by streamlining processes, enhancing decision-making, and driving innovation across functions - from research to marketing. By integrating automation and intelligent tools, we are boosting efficiency, precision, and speed while strengthening our focus on quality, safety, and impactful healthcare delivery.

We have begun integrating AI in areas like digital pathology and risk stratification. Tests like CanAssist ^? Breast use ML to assess protein expression, delivering objective, reproducible insights that aid oncologists in making informed chemotherapy decisions.

As a responsible organisation, sustainability is embedded across our operations. We are on track to achieve net water neutrality by 2028 and are aligned with long-term carbon goals. Climate risk assessments have helped mitigate asset-level risks, while a 38% rise in renewable energy use over last three years and green manufacturing practices have reduced water, energy, and waste - without compromising output. Our improved ESG ratings in key frameworks like S&P Global CSA and Sustainalytics reflect this continued progress.

Our CSR initiatives, driven by five pillars - Swasthya (Health), Shiksha (Education), Shodh (Innovation), Saath (Community), and Saksham (Livelihoods) - continue to create meaningful impact. Zydus Medical College and Hospital in Dahod provides free healthcare to over 4 lakh underserved patients annually, offers medical treatment and provides medical education to help increase the pool of HCP's to create a rich talent pool to serve communities healthcare needs in the future. We have enhanced learning environment, supported grassroot innovation, improved agricultural livelihoods through watershed projects, and empowered women through skill development - strengthening communities at every step.

As we look ahead, we remain focused on seizing emerging opportunities, leveraging transformative technologies, and going beyond the pill to deliver holistic solutions that promote both health and wellbeing.

Our progress is driven by the dedication of our people and the trust of our stakeholders - patients, partners, providers, investors, and communities. Their unwavering support has empowered us to take bold strides and reimagine the future of lifesciences. Our relentless pursuit of innovation-led growth, demonstrated by our strong performance in recent years, is set to drive profitable operations and maintain a robust balance sheet, creating exceptional shareholder value. With unwavering commitment to high standards of governance and transparency, we are poised to build a brighter, healthier future for all.

As we look to the future, we do so with thoughtful optimism - rooted in science and inspired by the difference we can make together. With collective resolve and shared purpose, we are confident in our ability to transform health, touch lives, and shape a future where care is more connected, and far-reaching than ever before.

Chairman