To

The Members of Laurus Labs Limited

Your Directors have pleasure in presenting the 21st Annual Report of the Company together with the Audited Financial Statements for the Financial Year ended March 31, 2026.

(Rs. in crore)

During the year under review, on consolidated basis the Company has achieved a turnover of Rs. 6,813 Crores, representing growth of 23% and EBITDA of Rs. 1,826 Crores representing 64% growth. The net profit for the year was Rs. 889 crores with a growth of 148%. Gross margins improved by over 5% pts to 60.4% due to favorable CDMO mix. On standalone basis, the Company has achieved a turnover of Rs. 6,089 Crores, representing growth of 17% and EBITDA of Rs. 1,469 Crores representing 46% growth. The net profit of Rs. 740 crores with a growth of over 95%.

The results for the year under review demonstrate the strength of the Company's business and gave confidence in Company's outlook. The Balance sheet remain well positioned to support key CAPEX program ahead with continued focus on operational excellence.

FY 26 performance was significantly accelerated, delivering strong revenue growth and expanded profitability, backed by successful commercial supplies for NCE programs, new launches ramp-up and sustained leadership in Anti- retroviral segment.

The summary of key highlights for the year under review are:

• CDMO business (small molecule) reported revenues of Rs. 1,896 Crores, during FY26; increased by 38% from late-stage pipeline, commercial NCE API supplies, ramp-up of the growth projects. Sustained clinical and commercial contracting across technologies and sites driving good growth outlook. Advancing on commercial peptides manufacturing capability. Pipeline momentum remained healthy across Human health, Animal health and Crop science.

• CDMO Bio business reported revenues of Rs. 184 Crores, during FY26; increased by 15%. Reported healthy growth through revenue diversification. Continued pipeline progress on larger Global accounts across AOF and CDMO business

• Affordable Medicines (Generics) division reported revenues of '4,733 Crores, during FY26, increased by 18%. Strong performance driven by volume growth in ARV portfolio and ramp up of the select molecules in US and EU region. Continued investment in Capacities, integrated CMO, and expanding footprint across Developed market and Emerging market to support FY27. KRKA JV: FDF facility construction work going as per plan; Phase-1 manufacturing blocks to be ready by mid-2027.

• The Government of Andhra Pradesh has allotted 531.77 acres of land in Anakapalli District in Andhra Pradesh to the Company for establishment of Laurus Pharma Zone (LPZ) for setting up of manufacturing units for Pharma products. The Company has projected Rs. 5,630 Crores of investment and direct/ indirect employment to 6,350 people in three phases over a period of eight years. The proposed investments to support future business expansion, augmenting our offerings across manufacturing scale and new technologies.

• Strengthening large-scale manufacturing network & capabilities to support customers.

• Enabling technology platforms.

• Exemplary quality track record - commitment to "One Quality standard for all Markets".

• ARV de-risking continues: Transformation continues with consistent rise in CDMO revenue share.

• FY26 CAPEX at 16% of sales with continued advancement in on-going investment program to enable future growth across technologies. Capex Intensity to increase over FY27-28 to support growth projects across Small molecule (Human & Animal health), Fermentation, Peptides, and Gene therapy/ ADC.

• Declared 2nd interim dividend of Rs. 1.20 per share for FY26, 1st interim dividend was Rs. 0.80 per share.

• 132 quality audits in FY26 have been completed by various customers and regulatory agencies without any critical findings

• The Company is advancing ESG agenda and enhancing competitive edge:

• Listed consecutively in S&P Global Sustainability yearbook for 2026 and 2025.

• Achieved S&P Global Corporate Sustainability Assessment (CSA) score of 81 out of 100 in the category of pharmaceutical companies (previous year was 71).

• Consecutive "BBB" ratings in FY22-26 from MSCI ESG ratings.

• Investment in green energy to access renewable energy (Solar + wind), to be available from Q4FY27. This will enable to source around 50% of energy through renewable source.

• Committed to the United Nations Global Compact (UNGC) in support of its ten sustainability principles.

• Commenced process of establishing GHG targets aligned with SBTi standards.

• Focus on decarbonizing products. Advanced foam tender installed across manufacturing sites.

• Increased use of green technologies and intelligent equipment.

• The Company was certified as Great Place to Work in sixth consecutive year.

• ImmunoACT, Mumbai, the associate of the Company treated around 600 patients suffering with Lymphoma and Lukemia with NexCAR-19. ImmunoACT is first company to launch commercial CAR_T therapy and expanding its facilities to create capacity for over 2000 treatments annually. ImmunoACT also got approval to carry phase 1 clinical trial for pediatric usage of NexCAR-19 and also carry phase 1 clinical trial for an additional program to treat multiple myeloma (BCMA).

Business prospects will remain positive based on increased CDMO Opportunities for Global customers, CMO opportunities for generic companies, expanded business Opportunities for Generics. The transformation of Company's portfolio is well underway, and momentum is building. The Company is making significant investments in novel technologies, scale and strengthening integrated capabilities offerings towards laying foundation for future growth. In the face of macro-economic volatility, the Company's business model has proven resilient and remain well positioned to execute on growth strategy with continued progress on EHS/ ESG initiatives.

Currently, we are managing several capex growth projects, which will be executed in the next 2 years. We will continue to invest in portfolio, focusing on product complexity, scale and sustainable technology platforms. We remain committed to advancing quality systems, meeting highest compliance standards from clients and global regulators as well.

More details have been given in the Management Discussion and Analysis Report which forms part of the Integrated Report 2026.

During the year under review, the Board of Directors of the Company, at their meeting held on August 21, 2025, has approved the Composite Scheme of Arrangement ("the Scheme") between Laurus Synthesis Private Limited (LSPL) ("Demerged Company" or "Transferor Company"), Sriam Labs Private Limited (Sriam) ("Resulting Company"), both wholly-owned Subsidiaries of the Company and Laurus Labs Limited ("Transferee Company" or "the Company") and their respective shareholders and creditors under Sections 230 to 232 of the Companies Act, 2013 ("the Act").

The Scheme inter alia provides for:

i) The demerger of LSPL, whereby the Identified Business Undertaking, i.e., Unit-1 of LSPL, shall be demerged and be merged with Sriam; and

ii) Amalgamation of the Remaining Business Undertaking of LSPL (i.e., entire LSPL excluding Unit-1) with the Company.

The Scheme is proposed for the ease of doing businesses by the group companies and consolidation of the businesses held by the subsidiaries. The demerger will enable consolidation of like businesses held by the subsidiaries under the Resulting Company for greater integration, financial strength and flexibility which will facilitate ease of doing business and operations, whereas the amalgamation will assist in achieving consolidation, greater integration, financial strength and flexibility which will maximize overall shareholders' value, facilitate ease of doing business and simplify the overall group structure.

The aforesaid companies have filed the requisite application along with the Scheme with the Hon'ble National Company Law Tribunal ("NCLT"), Amaravati Bench, Andhra Pradesh. In terms of the Hon'ble NCLT order dated February 24, 2026, meetings of the unsecured creditors of LSPL and Sriam were held on April 6, 2026 and the unsecured creditors of the respective companies unanimously approved the resolution in favour of the Composite Scheme of Arrangement. Further, the Hon'ble NCLT has dispensed with the requirement of meetings of the equity shareholders and secured creditors of all the applicant companies, as well as the meeting of the unsecured creditors of the Company.

The implementation of the Scheme is now subject to the final approval and sanction from the competent authorities.

The Board had declared the 1st interim dividend @ 40% (i.e., Re.0.80/- per share of the face value of Rs. 2/- each) on October 23, 2025 and paid to the shareholders in November, 2025 and the 2nd Interim dividend @ 60% (i.e., Rs. 1.20 per share of the face value of Rs. 2/- each) is declared on April 30, 2026 and the said dividend will be paid on May 20, 2026 to the shareholders, aggregating to 100% dividend i.e., Rs. 2 per share of the face value of Rs. 2/- each relating to the FY 2025-26. The dividend payout ratio is 14.6% for the year which is within the stipulated maximum of 20% under the Dividend Distribution Policy.

In terms of Regulation 43A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("SEBI Listing Regulations"), the Dividend Distribution Policy, is available on the Company's website at https://www. lauruslabs.com/Investors/PDF/Policies/Dividend Policy. pdf.

The Company did not transfer any portion of profits to reserves.

During the year under review, the Company has allotted 6,04,091 (Six lakh four thousand and ninety-one only) equity shares of Rs. 2/- to various eligible employees of the Company under ESOP Scheme 2016, ESOP Scheme 2018 and under ESOP Scheme 2021 upon exercise of their vesting rights in June, 2025 and December, 2025.

As a result, the paid-up share capital as on March 31, 2026 stood at Rs. 107,97,13,164/- divided into 53,98,56,582 equity shares of Rs. 2/- each.

There is no change in the nature of the business of the Company or any of its subsidiaries or associates, during the year under review.

There are no material changes and commitments affecting the financial position of the Company that have occurred between the end of the financial year of the Company to which the financial statements relate and the date of the Report of the Board of Directors.

The Company has not accepted any deposits from public and therefore does not fall under the category of NBFC to comply with the requirements prescribed by the Reserve Bank of India from time to time as applicable to it.

At the end of the year, the status of the subsidiaries/ associates/ joint venture are as follows:

*WOS means Wholly-owned Subsidiary.

2Laurus Generics GmbH, Germany is Wholly-owned Subsidiary of Laurus Holdings Ltd., UK and step-down Wholly-owned Subsidiary of the Company. 3The Company is holding 49.24% of Laurus Generics Inc., USA and remaining 50.76% is held by Laurus Holdings Ltd., UK.

4KRKA Pharma Private Limited is joint venture company, wherein the Company is holding 49% and remaining 51% is held by joint venture partner, KRKA d.d., Novo mesto, a company registered in Slovenia.

5On fully diluted basis - 76.32%

During the year under review, Kurnool Renewables Private Limited became an associate company of your Company. There are no companies which became subsidiary companies of the Company during the year nor ceased to be subsidiaries or associate companies of the Company.

In terms of the provisions of Section 129(3) of the Act, the consolidated financial statement of the Company and all its Subsidiaries and Associates prepared in accordance with the applicable accounting standards forms part of this Annual Report. Further, a statement containing salient features of the financial statements of our subsidiaries and associates in the prescribed form in AOC-1 is attached as Annexure-1 to the Report of the Board of Directors.

Further, in terms of the provisions of Section 136 of the Act, the Company has placed separately the audited financial statements of its subsidiaries on its website www. lauruslabs.com and copies of audited financial statements of the subsidiaries will be provided to the Members at their request.

In terms of Regulation 16(1)(c) of the SEBI Listing Regulations, the Company does not have a material subsidiary,

The Company makes investments or extends loans/ guarantees to its subsidiaries for their business purposes. Details of loans, guarantees and investments covered under Section 186 of the Act, is provided in notes 5 and 33 to the standalone financial statements which forms part of this Integrated Report 2026. The same is within the limits prescribed under Section 186 of the Act.

During the year under review, the members of the Company at the Annual General Meeting ("AGM") held on June 26, 2025 has approved the re-appointment of Dr. Satyanarayana Chava, as the Executive Director and Chief Executive Officer of the Company, for a period of 5 (five) years with from April 1, 2025 to March 31, 2030, whose office will be liable to determination by retirement by rotation. The members of the Company have also approved the re-appointment of Mr. V V Ravi Kumar, as the Executive Director and Chief Financial Officer of the Company, for a period of 2 (two) years with from April 1, 2025 and to March 31, 2027, whose office will be liable to determination by retirement by rotation.

Further, during the year, the members of the Company have approved the re-appointment of Dr. C V Lakshmana Rao, a director liable to retires by rotation.

In terms of Section 152 of the Act, Mr. Krishna Chaitanya Chava and Mrs. Soumya Chava will retire at the ensuing AGM and, being eligible, seek re-appointment. The Board recommends their re-appointment, designated as the Executive Directors and their brief profile has been given in the Notice of the 21st AGM.

During the year under review, there was no change in the Key Managerial Personnel ("KMP") of the Company. As on the date of this report, the Company has the following Key Managerial Personnel as per Section 203 of the Act:

In terms of Section 149 of the Act and Regulation 16(1)

(b) of the SEBI Listing Regulations, Independent Directors have confirmed to the Company that they meet the criteria of independence. Further, each Independent Director has affirmed compliance to the Code of Conduct for Independent Directors as prescribed in Schedule IV of the Act. The Board has taken on record such declarations after due assessment of their veracity.

Pursuant to the provisions of the Act, and the SEBI Listing Regulations, the Board has carried out performance evaluation of its own performance, the Directors individually, as well as the evaluation of the working of the Committees. The outcome of the performance evaluation was discussed and found to be satisfactory. The manner of the evaluation of the Board and other Committees has been determined by the Nomination and Remuneration Committee in terms of the SEBI circular dated January 5, 2017.

More details with respect to the Board evaluation is given in the Report on Corporate Governance which forms part of this Integrated Report 2026.

The Board and Committee meetings are pre-scheduled and a tentative calendar of the meetings is finalized in consultation with all the Directors to facilitate them to plan their schedule. However, in case of urgent business needs, approval is taken by passing resolutions through circulation. During the year under review, 7 (seven) Board Meetings were held. The details of the meetings are provided in the Report on Corporate Governance, forms part of this Integrated Report 2026.

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

i) Audit Committee;

ii) Stakeholders' Relationship Committee;

iii) Nomination and Remuneration Committee;

iv) Corporate Social Responsibility Committee;

v) Risk Management Committee.

All the recommendations made by the Board Committees, were accepted by the Board. The details of the above Committees are given in the Report on Corporate Governance which forms part of this Integrated Report 2026.

In terms of requirements under Schedule IV of the Act and Regulation 25(3) of the SEBI Listing Regulations, a separate meeting of the Independent Directors was held during FY 26. More details are mentioned in the Report on Corporate Governance which forms part of this Integrated Report 2026.

The Company's policy on the Directors' appointment and remuneration, including criteria for determining qualifications, positive attributes, independence of a director and other matters are adopted as per the provisions of the Act and the SEBI Listing Regulations. The remuneration paid to the Directors is as per the norms laid out in the Nomination and Remuneration Policy of the Company.

The Nomination and Remuneration Policy is adopted by the Board and the salient features of the policy are as follows:

• Non-Executive and Independent Directors ("NEDs") will be paid remuneration by way of sitting fees and commission. The remuneration/ commission/ compensation to the NEDs will be determined by the Nomination and Remuneration Committee and recommended to the Board for its approval.

• As approved by the shareholders at the shareholders meeting held on July 20, 2016, remuneration in the form of commission will be paid to Non-Executive and Independent Directors not exceeding 1% per annum of the profits of the Company computed in accordance with Section 198 of the Act.

• The payment of the Commission to the NEDs is as per approval given by the Board within the limit approved by the shareholders. The sitting fee payable to the NEDs for attending the Board and Committee meetings will be fixed, subject to the statutory ceiling. The fee will be reviewed periodically and aligned to comparable best in class companies.

• NEDs will not be eligible to receive stock options under the existing employee stock option scheme (s) ("ESOP") of the Company.

• The compensation paid to the Executive Directors will be within the scale approved by the shareholders. The elements of the total compensation, approved by the

Board and Nomination & Remuneration Committee will be within the overall limits specified under the Act.

• The Company's total compensation for Executive Directors and Key Managerial Personnel as defined under the Act / other employees will consist of:

• fixed compensation

• variable compensation

• benefits

• work related facilities and perquisites

• Changes made to the policy: Nil

The Nomination and Remuneration Policy is placed on the Company's website and available at the link: https://www. lauruslabs.com/Investors/PDF/Policies/Remuneration Policy.pdf

The Company had formulated a Risk Management Policy for dealing with various risks that it faces in the day-to- day operations of the Company. Risk Management Policy of the Company outlines different kinds of risks and risk mitigating measures to be adopted by the Company. The Company has adequate internal financial control systems and procedures to mitigate the risk. The Company has constituted a Risk Management Committee which reviews various risk mitigating practices that the Company is required to implement. The risk management procedure is reviewed by the Risk Management Committee and Board of Directors on a periodic basis.

The Company has in place an adequate system of internal controls, policies and procedures commensurate with its nature of business and size of operations for ensuring orderly and efficient conduct of the business, including adherence to the Company's policies, safeguarding of its assets, prevention and detection of frauds and errors, accuracy and completeness of the accounting records and timely preparation of reliable financial disclosures. The internal financial controls with respect to the financial statements are adequate and operating effectively.

Effectiveness of internal financial controls is ensured through management reviews, control self-assessment and independent testing by the Internal Auditors. The Audit Committee reviewed the internal financial controls that ensure that the Company's accounts were properly maintained and that the transactions were recorded in the books of accounts in accordance with the applicable accounting standards, laws and statutes. The Statutory and Internal auditors have confirmed that there was no internal control weakness during FY 2025-26.

In terms of Section 134(3) (c) of the Act, the Board of Directors of the Company states that:

a. in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures;

b. the directors had selected such accounting policies and applied them consistently and made judgments 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 profits of the Company for that period;

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

d. the directors had prepared the annual accounts on a going concern basis;

e. the directors had laid down internal financial controls to be followed by the company and that such internal financial controls are adequate and were operative effectively; and

f. the directors had devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operative effectively.

All contracts, arrangements and transactions entered by the Company with related parties during FY 2025-26 were in the ordinary course of business and on an arm's length basis. Details of the related party transactions as per Ind AS24 have been provided in note no. 33 of the standalone financial statements and in note no. 32 of the consolidated financial statements.

During the year, the Company did not enter into any transaction, contract or arrangement with related parties, that could be considered material in accordance with the provisions of the Act or the SEBI Listing Regulations and the Company's Policy on Related Party Transactions ("RPT Policy"). Accordingly, the disclosure of related party transactions in Form AOC-2 is not applicable.

The Policy on Related Party Transactions was amended during the year to align the same with the statutory requirements. The updated RPT policy of the Company is available on the Company's website at https://www. lauruslabs.com/Investors/PDF/Policies/Revised RPT Policy.pdf.

The Company has a Whistle Blower Policy, which lays down the process to raise genuine concerns and seek resolution towards the same without fear of retaliation. More details on the functioning of the Whistle Blower Policy and weblink of the Policy has been provided in the Report on Corporate Governance, which forms part of this Integrated Report 2026.

M/s Deloitte Haskins & Sells LLP, Firm Registration No.117366W/W-100018 have been appointed as Statutory Auditors of the Company for the second term of five years from the conclusion of 17th AGM till the conclusion of 22nd AGM to be held in the year 2027 of the Company at a remuneration as may be approved by the Board.

The Statutory Auditors' Report for the standalone and consolidated financial statements does not contain any qualification, reservation, adverse remarks or observation and has been presented separately in the respective financial section, which forms part of this Integrated Report 2026.

M/s Deloitte Haskins & Sells LLP (ICAI Firm Registration No. 117366W/W-100018) will continue as the Statutory Auditors of the Company until the conclusion of the 22nd AGM to be held in the year 2027, and they will complete their second term. Based on the recommendation of the Audit Committee, the Board at its meeting held on March 12, 2026 recommended the appointment of M/s S.R. Batliboi & Associates LLP, Chartered Accountants (ICAI Firm Registration No. 101049W/E300004) as the Statutory Auditors of the Company to hold the office for a term of 5 (five) consecutive years from the conclusion of the 22nd AGM to be held in the year 2027 till the conclusion of the 27th AGM to be held in the year 2032, subject to approval of the members of the Company. The resolution relating to the appointment of M/s S.R. Batliboi & Associates LLP, as the Statutory Auditors of the Company will be proposed to the shareholders of the Company for their approval at the 22nd AGM of the Company to be held in the year 2027.

In terms of the provisions of Section 148(1) of the Act read with rules made thereunder, the Company maintains the cost records in respect of its 'pharmaceuticals' business.

On the recommendation of the Audit Committee, the Board has appointed M/s. Sagar & Associates, Cost Accountants (Firm Registration No. 000118) as Cost Auditor of the Company for FY 2026-27 at a remuneration of Rs. 5,50,000/- (Rupees five lakhs fifty thousand only) plus reimbursement of out-of-pocket expenses at actuals and applicable taxes. M/s. Sagar & Associates have confirmed that they are free from disqualification specified under Section 141(3) and proviso to Section 148(3) read with Section 141(4) of the Act and that the appointment meets the requirements of the Act. They have further confirmed their independent status and an arm's length relationship with the Company.

The provisions of the Act also require that the remuneration of the Cost Auditors be ratified by the members and therefore, the same is recommended for approval of the members at the forthcoming 21st AGM.

As a matter of record, relevant Cost Audit Reports for FY 2024-25 was filed with the Central Government on August 22, 2025, within the stipulated timeline. The Cost Audit Report for FY 2025-26 will also be filed within the prescribed timeline.

In terms of the provisions of Regulation 24A of the SEBI Listing Regulations and Section 204 of the Act read with the rules made thereunder, the members of the Company at the 20th AGM held on June 26, 2025, has approved the appointment of M/s RPR & Associates, Practicing Company Secretaries, Hyderabad (a peer reviewed firm, represented by Mr. Y Ravi Prasada Reddy, Proprietor of the firm having CP. No. 5360) as the Secretarial Auditors of the Company for a period of 5 (five) consecutive financial years i.e. from 2025-26 to 2029-30.

The Secretarial Audit Report issued by M/s RPR & Associates for the period under review in Form MR-3 is in Annexure -2 to this Report. The Annual Secretarial Compliance Report has also been issued by M/s RPR & Associates. There are no qualifications, reservations or adverse remarks in the Secretarial Audit Report and Annual Secretarial Compliance Report.

There are no significant and material orders passed by the Courts or Regulators against the Company.

CARE has reaffirmed/revised with its rating of "AA Negative" to "AA Stable" on the long-term bank facilities of the Company and Reaffirmed A1+ on the short-term bank facilities of the Company.

All properties and insurable interests of the Company including buildings, plant and machinery and stocks have been fully insured.

In terms of Section 135 of the Act, the Company has a Board- level Committee. namely, Corporate Social Responsibility (CSR) Committee. More details on composition and terms of reference of CSR Committee is given in the Report on Corporate Governance which forms part of this Integrated Report 2026. Based on the recommendation of the CSR Committee, the Board has adopted a CSR policy that provides guiding principles for selection, implementation and monitoring of CSR activities and formulation of the annual action plan.

During the year, the CSR Committee monitored the CSR activities undertaken by the Company including the expenditure incurred thereon. An impact assessment of the eligible projects completed before March 31, 2025 has been carried by an independent agency and the report of such impact assessment was noted by the CSR Committee and the Board. Details of the CSR Policy and initiatives taken by the Company during the year are available on the Company's website at www.lauruslabs.com. The report on CSR activities is attached as Annexure-3 to this Report of the Board of Directors.

Disclosures pertaining to remuneration and other details as required under Section 197(12) of the Act, read with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, is attached in Annexure-4 to this Report of the Board of Directors.

In terms 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 showing the names and other particulars of the employees drawing remuneration in excess of limits set out in the said rules, is provided in a separate exhibit forming part of this report and is available on the website of the Company, at www.lauruslabs.com. The Integrated Report 2026 is being sent to the shareholders excluding the aforesaid exhibit. Shareholders interested in obtaining this information may access the same from the Company website. In accordance with Section 136 of the Act, this exhibit is available for inspection by shareholders through electronic mode.

The Company believes that competent and committed human resources are important to achieve success in the organization. In line with this philosophy, utmost care is being exercised to attract quality resources and suitable training is imparted on various skill-sets and behavior. Various initiatives were undertaken to enhance the competitive spirit and encourage bonding teamwork among the employees to achieve the targeted growth in the performance of the Company.

The information required under Section 134(3)(m) of the Act read with Rule 8(3) of the Companies (Accounts) Rules, 2014, is appended hereto as Annexure-5 and forms part of this Integrated Report 2026.

The Company has three employee stock option schemes namely, 'Employees Stock Option Scheme-2016', 'Employees Stock Option Scheme-2018' and 'Employees Stock Option Scheme-2021'. There are no other changes in the said schemes during the year. During the year, the Company has allotted 6,04,091 (Six lakh four thousand and ninety-one only) equity shares of Rs. 2/- to various eligible employees of the Company under ESOP Scheme 2016, ESOP Scheme 2018 and ESOP Scheme 2021 upon exercise of their vesting rights in June 2025 and December 2025.

The Schemes are in compliance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The details of Company's stock option Schemes as required under Regulation 14 of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021, are available on the Company's website at www.lauruslabs.com

The details of stock options are as mentioned in Annexure-6 and forms part of this Integrated Report 2026. Further, details of the stock options is given in the note 29 to standalone financial statements also forms part of this Integrated Report 2026.

The Company's Secretarial Auditors, M/s RPR & Associates, Practicing Company Secretaries, have certified that the Employee Stock Option Schemes of your Company have been implemented in accordance with the Regulations and the resolutions passed by the Members in this regard.

The Company has formulated and implemented a policy for Prevention of Sexual Harassment of Women at workplace. During the year under review, the Company has not received any complaints under the policy, no complaints were pending either at the beginning or at the end of the year.

The Company has appropriate systems, processes and policies to ensure professional ethics and harmonious working environment. We follow zero tolerance towards corruption and unethical conduct. These are ensured through Whistle Blower Policy, Anti-Bribery and Anti- Corruption Policy, Gift Policy, Sexual Harassment Policy and Redressal Guidelines.

The Company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013.

The applicable Secretarial Standards, i.e., SS-1 and SS-2, relating to 'Meetings of the Board of Directors' and 'General Meetings' respectively, have been followed by the Company.

No application has been filed under the Insolvency and Bankruptcy Code. Therefore, the requirement to disclose any applications filed or proceedings pending under the Insolvency and Bankruptcy Code, 2016 during the year, along with their status at the close of the financial year, is not applicable.

There was no instance of one-time settlement with any Bank or Financial Institution.

Pursuant to Regulation 32(1)(b) of the SEBI Listing Regulations, since the Company has not made public issue, rights issue or preferential issue during the year under review, the disclosure related to deviation or variation in the use of proceeds is not applicable.

In terms of the provisions of Section 134(3)(a) of the Act, the Annual Return of the Company, is available on the website of the Company at www.lauruslabs.com.

The Company is voluntarily publishing the Integrated Annual Report for FY 2025-26, which includes both financial and non-financial information. The reporting weaves together our purpose, values, strategy, stakeholder's value creation, ESG, governance, performance and future outlook, all of which influence the material aspects of our business.

A separate section on Corporate Governance practices followed by the Company, as stipulated under Schedule V(C) of the SEBI Listing Regulations is enclosed and forming part of this Integrated Report 2026.

The certificate of the Practising Company Secretary Mr. Y Ravi Prasada Reddy with regard to compliance of conditions of corporate governance as stipulated under Schedule V(E) of the SEBI Listing Regulations is annexed to the Report on Corporate Governance.

Various business aspects including market conditions, business opportunities, challenges etc. have been discussed at length in the Management's Discussion and Analysis (MD&A), which forms part of this Integrated Report, 2026.

The SEBI Listing Regulations mandate the inclusion of the BRSR as part of the Annual Report for top 1000 listed entities based on market capitalization. In accordance with the SEBI Listing Regulations, the Business Responsibility and Sustainability Report for the financial year 2025-26 forms part of this Integrated Report, 2026.

The Company prioritizes environmental stewardship as a key driver of its business strategy, with a strong focus on efficient capital allocation and advancing Environmental, Social, and Governance (ESG) practices. The Company's ESG strategy prioritizes positive social impact for patients, employees, communities, environmental sustainability, while ensuring responsible business practices to build trust with our stakeholders and drive long term sustainable growth. The Company actively works towards reducing carbon emissions and addressing climate issues, emphasizing the creation of sustainable value and the conservation of natural resources to contribute to a cleaner world.

Our commitment to ESG is evident in our consecutive "BBB" rating by MSCI ESG Ratings, improved Dow Jones Sustainability Index (DJSI) score to 81 out of 100 in pharmaceutical category and recognition such as the EcoVadis 'Silver' award for key facilities.

The Company continues to drive ongoing ESG initiatives, including system certifications, the release of an integrated report aligned with the Business Responsibility and Sustainability Reporting (BRSR) framework, investment in renewable energy through acquiring a stake in Ethan Energy and Kurnool Renewables, conducting climate risk assessments, and receiving several awards for our environmental, health, and safety practices.

• The company ranked among the world's most sustainable businesses in the S&P Global Sustainability Yearbook 2026. It achieved an elite ESG score of 81 out of 100, placing it in the top tier of the global pharmaceutical industry.

Unit-5 has been awarded the Gold for Best Safety Performer 2025 in the Pharmaceutical, Drugs and

Healthcare category at the CII Andhra Pradesh Industrial Safety Excellence Awards 2025.

• Unit-3 has been awarded with the silver award within the Pharma Industry in recognition of outstanding achievements in Energy Conservation and Energy Efficiency for the year 2025 by the Andhra Pradesh State Energy Conservation Mission.

• Laurus Labs has been awarded with the Fire Safety Excellence Award 2026 by the State Disaster Response and Fire Services, Government of Andhra Pradesh.

• Unit-3 has been awarded with the Platinum Award for promoting environmental sustainability at the GreenEnviro Safety Awards & Summit 2026. •

• Laurus Labs is certified as a Great Place to Work for the 6th consecutive year by Great Place to Work?, India.

Your Directors place on record their sincere appreciation to customers, business associates, bankers, vendors, government agencies and shareholders for their continued support.

Your Directors are also happy to place on record their sincere appreciation to the co-operation, commitment and contribution extended by all the employees of the Laurus family and look forward to enjoying their continued support and cooperation.