Titan Biotech Ltd Management Discussions

eCOnOMiC OVerVieW Global economics

Global growth is slowing due to a substantial rise in trade barriers and the pervasive effects of an uncertain global policy environment. Growth is expected to weaken to 2.3 percent in 2025 as compared to approx. 2.8 percent in 2024 with deceleration in most economies relative to last year. This would mark the slowest rate of global growth since 2008, aside from outright global recessions. Growth could turn out to be lower if trade restrictions escalate or if policy uncertainty persists, which could also result in a build-up of financial stress. Other downside risks include weaker-than-expected growth in major economies with adverse global spillovers, worsening conflicts, and extreme weather events. On the upside, uncertainty and trade barriers could diminish if major economies reach lasting agreements that address trade tensions. The ongoing global headwinds underscore the need for determined multilateral policy efforts to foster a more predictable and transparent environment for resolving trade tensions, some of which stem from macroeconomic imbalances.

After a succession of adverse shocks in recent years, the global economy is facing another substantial headwind, with increased trade tension and heightened policy uncertainty. This is contributing to a deterioration in prospects across most of the worlds economies. For emerging market and developing economies (EMDEs), the ability to narrow per capita income gaps with richer countries, boost job creation, and reduce extreme poverty remains insufficient. Downside risks to the outlook predominate, including an escalation of trade barriers, persistent policy uncertainty, rising geopolitical tensions, and an increased incidence of extreme climate events. Conversely, policy uncertainty and trade tensions may ease if major economies succeed in reaching lasting agreements that address ongoing trade disputes. The challenging global context faced by EMDEs is compounded by the fact that foreign direct investment inflows into these economies have fallen to less than half of their peak level in 2008 and are likely to remain subdued. Global headline inflation generally remains elevated relative to central bank targets and prepandemic averages and has even risen in some advanced economies since late last year. Slower disinflation globally over the last six months has largely prices.Therecentrise reflected consumer influenced by the implementation of trade restrictions. In addition, core inflationin some economies is expected to remain high duetopersistentservicespriceincreases.Inall,GDP-weightedglobalinflationis projected to average 2.9 percent in 2025 and 2026 still a little above the average inflation target but with notable heterogeneity across economies. Global relative to late 2024, principally reflectingtrade policy uncertainty. financial

Outlook

In advanced economies, growth forecasts for 2025 have declined substantially since January, driven by downgrades in some of the worlds largest economies. This reflects the shock dealt by the increases in trade barriers even with the partial 90-day pause in U.S. tariff increases and the associated policy uncertainty, financial volatility, and dampening effects on confidence. growth is expected to remain below potential growth estimates over the forecast horizon in some advanced economies, including in the United States and the euro area. In the United States, the announcement of trade policy changes did not provide much-needed clarity or reduce policy uncertainty, given the scale and scope of new tariffs, shifting timelines for their implementation, and fluid lists of exemptions. Against the backdrop of a more challenging external environment, EMDE growth is forecast to slow significantly in 2025, to 3.8 percent, with only a modest projected pickup in 2026-27. The expected rate of growth is well below prepandemic averages and the pace that is needed to create sufficient jobs to meet working-age population growth and make progress in closing large per capita income gaps with advanced economies. The deterioration in EMDE growth prospects is driven in large part by economies with a high degree of trade and investment openness. In these economies, large manufacturing sectors, high global value chain participation, and reliance on global financial markets amplify the negative spillovers from the recent shocks to global trade and confidence and the sharp rises in uncertainty and financial market volatility. domestic economic

India is poised to lead the global economy once again, with the International Monetary Fund (IMF) projecting it to remain the fastest growing major economy over the next two years. According to the April 2025 edition of the IMFs World Economic Outlook, Indias economy is expected to grow by 6.2 per cent in 2025 and 6.3 per cent in 2026, maintaining a solid lead over global and regional peers.

The April 2025 edition of the WEO shows a downward revision in the 2025 forecast compared to the January 2025 update, reflecting the impact of heightened global trade tensions and growing uncertainty Despite this slight moderation, the overall outlook remains strong. This consistency signals not only the strength of Indias macroeconomic fundamentals but also its capacity to sustain momentum in a complex international environment. As the IMF reaffirms Indias economic resilience, the countrys role as a key driver of global growth continues to gain prominence.

India is projected to remain the fastest-growing large economy for 2025 and 2026, reaffirming its dominance in the global economic landscape. The countrys economy is expected to expand by 6.2 per cent in 2025 and 6.3 per cent in 2026, outpacing many of its global counterparts. In contrast, the IMF projects global economic growth to be much lower, at 2.8 per cent in

2025 and 3.0 per cent in 2026, highlighting Indias exceptional outperformance.

Source : IMF and Global Economic Prospect of World Bank indusTrys TruCTure & deVeLOPMenT Biotechnology industry

Biotechnology sector is recognized as one of the key drivers for contributing to Indias US $ 5 Trillion economy target. Indian Biotechnology sector is poised to grow exponentially over the next decade. Policy initiatives of the Government of India (GoI) such as Startup India and Make in India programs are aimed to develop India as a world-class Biotechnology and Bio-manufacturing hub. india is among the Top-12 destinations for biotechnology in the world and 3rd largest destination for biotechnology in Asia Pacific. Indias biotechnology sector has a 3% share of the global Biotechnology Industry.

The indian Biotechnology industry was valued at $151.1 billion in 2023, and is projected to reach the national target of $300 billion by 2030. The biotechnology is propelled by 600+ biotech companies and 8,500 biotech startups. The Department of Biotechnology (DBT), Government of India, which is playing a pivotal role in realizing the sectors potential, aims to foster high-performance Biomanufacturing to enable a circular bioeconomy. This approach combines scientific and technological advancements with public-private partnerships and international cooperation to drive innovation and green growth.

Global Bio-india 2024 will deliberate on the opportunities and key challenges in the areas of bio-manufacturing, capacity-building, clinical trials, drug discovery, regulation & policies creating global supply chains for achieving a growth-oriented road-map for the biotechnology sector in the country. Technical Sessions & Policy dialogues on topics of national & Global importance, Bio- Partnering, startup Pavilion, B2B meetings and Mega Biotech exhibition by startups & sMes, Biotech Large Companies, Bioincubators, Bio-services,, are a few salient components of the event. The event also aims to showcase and identify key biotechnological innovations, products, services, technologies from national and international companies, start-ups and research institutes, as well as foster collaboration and funding opportunities for research and development.

Global nutraceutical industry

The global nutraceuticals market size was estimated at usd 591.1 billion in 2024 and is projected to reach usd 919.1 billion by 2030, growing at a CAGr of 7.6% from 2025 to 2030. The market growth is attributed to the increasing consumer awareness of preventative healthcare and the link between diet and well-being.

Key Market Trends & insights

• The Asia Pacific nutraceuticals market held 38.9% of the global revenue in 2024.

• The China nutraceuticals market is set to grow at a CAGR of about 8.6% from 2025 to 2030.

• Based on product, the dietary supplements segment accounted for a revenue share of 32.6% in 2024.

• Based on application, the weight management & satiety application accounted for a revenue share of 16.6% in 2024.

• Based on distribution channel, the sales of nutraceutical products through offline channels accounted for a revenue share of 79.0% in 2024.

Market size & Forecast

• 2024 Market Size: USD 591.1 Billion

• 2030 Projected Market Size: USD 919.1 Billion

• CAGR (2025-2030): 7.6%

• Asia Pacific: Largest market in 2024

• The aging global population, particularly in developed nations, is actively seeking solutions to maintain health and manage age-related conditions, leading to a surge in demand for supplements targeting joint health, cognitive function, and cardiovascular wellness. Simultaneously, rising rates of chronic diseases like obesity and diabetes are prompting individuals to adopt healthier lifestyles, including incorporating nutraceuticals into their daily routines. This proactive approach to health management is a key trend powering the industry forward.

MiCrOBiOLOGiCAL CuLTure MediA indusTry

The microbiological culture media industry in India is a growing sector, Titan Biotech (TM Media) leading the way in manufacturing and supplying a wide range of products. The industry is driven by research and diagnostic needs in clinical, industrial, and academic settings, with companies offering both dehydrated and ready-to-use culture media.

Products and services: o dehydrated Culture Media: A range of dehydrated media for various applications. o ready-to-use Culture Media: Pre-prepared media in petri dishes or other formats for convenience and ease of use. o specialized Media: Media designed for specific microorganisms or applications, including chromogenic media. o raw Materials and supplements: Basic ingredients like peptones, agars, and other supplements.

industry Applications: o Clinical Microbiology: Used in hospitals and diagnostic labs for identifying pathogens. o industrial Microbiology: Used in industries like food, pharmaceuticals, and biotechnology. o research: Crucial for research in diverse fields like microbial diversity, taxonomy, and environmental biotechnology. The global microbiology & bacterial culture media market size was estimated at usd 5.46 billion in 2024 and is expected to grow at a CAGr of 8.82% over the forecast period. This growth is primarily driven by the rising demand for accurate disease diagnosis, increased research into antimicrobial resistance, and the growing need for microbial testing in food safety & pharmaceutical production.

PrOduCT Wise PerFOrMAnCe / seGMenT Wise

The Company has only one segment and primarily engaged in the business of Biological Products. As the Companys business activity falls within a single primary business segment.

OuTLOOK

The outlook for the biotechnology, nutraceutical and microbiological culture media sector in India seems promising with strong government support for the countrys expanding economy and dedication to sustainability and innovation. risK And COnCern

The nutraceutical and microbiological culture media industries face risks related to product contamination, lack of scientific evidence, and regulatory compliance. Contamination with microorganisms like E. coli or Salmonella can occur during production, while inadequate testing can lead to health hazards and brand damage. Lack of rigorous clinical studies for nutraceuticals also raises concerns about efficacy and safety. Organizations can create sustainable value for its stakeholders by effectively managing the risks they are willing to take, be it at a strategic, financial or operational. Therefore, identifying, analyzing and promptly managing risks is critical from a Corporate Governance standpoint to enable an organization to attain its strategic objectives and protect the interest of its stakeholders.

Risks can be categorized as financial, customer concentration operational, strategic, regulatory/statutory, reputational, geopolitical, catastrophic/pandemic.

The major risk is frequent increase in price of few raw materials which can increase cost of product and can make few products unprofitable unless the increase is passed on to the user which may at times be difficult due to stiff competition. Further, delay in grant of approvals can result in delay in launching of key products in the market. In addition, significant competition in key products could also affect market share and profitability of the Company.

OPPOrTuniTies

The increase in the population is driving the demand of product across the world and as we all know a simple rule of economics, higher the population bigger the opportunity. The Global Biotech, nutraceutical and microbiological culture media Market is open and the opportunity to tap the global market is immense. The Company has tried to maintain its market share during 2024-2025 and is regularly encashing on all opportunities. Your Company has maintained its quality standards and always working towards improvements. New Technology Developments and New Product Developments do take place and updating in terms of technology and quality is the need of the hour.

THreATs

Stiff Competition both on domestic and International level poses some threat to the market share of company but since the market is quite large, the same is easily absorbed. Your Company has to abide by stringent regulations and specifications pertaining to its products in its domestic and export markets. Your Company operates in a highly competitive market. Some of the key factors driving competition in the industry include product functionality and quality, pricing, customer service, product innovation and effectiveness of marketing and distribution channels. To survive and succeed in a stiff competitive environment, it is very important for the Company to distinguish its product and service offerings through a clear and unique value proposition. Some of the competitors of the Company have greater financial, marketing and other resources, which enables them to pursue more vigorous marketing and expansion activities. Intense competition may have a material adverse impact on the Companys operations. inTernAL COnTrOL sysTeM And THeir AdeQuACy

Titan Biotech Limited has well established internal control systems for operations of the Company. All the departments of the company including the accounts & finance department has experienced and trained staff capable of implementing and monitoring internal control systems. The internal control system of the Company is adequate to safeguard the Companys assets and to ensure that the transactions are properly recorded. Further, the internal control system ensures that proper record is being kept and all statutory and other laws, rules and regulations are being complied with.

The Company has appointed an independent firm of chartered accountants to monitor the internal audit of its activities, based on an internal audit plan, which is reviewed each year in consultation with the statutory auditors and approved by the audit committee. The Company has identifiedinherent reporting risks for major element in the financialstatements and established controls to prevent the same. These risks and the prevention controls are revisited periodically considering the changes in business, IT systems, regulations and internal policies, based on evaluations of the audit, as per Section 177 of the Companies Act 2013 and Regulation 18 of SEBI Regulations, 2015, the Audit Committee has concluded that as March 31, 2025, internal financial controls were adequate and operating effectively.

FinAnCiAL PerFOrMAnCe vis-?-vis OPerATiOnAL PerFOrMAnCe revenue

The revenue of the Company reduced as compared to previous year revenue from rs. 16407.21 Lakhs to rs. 15645.08 Lakhs mainly due to Economic Slowdown in the Global market, stiff competition, rising cost selling and distribution expenses

The selling and distribution expenses increased by 27.74% primarily because of the increase in Business Promotion and other expense during the year ended March 31, 2025.

Tax expenses

Our income taxes decreased by Rs. 181.85 Lacs from Rs. 778.86Lacs for the year ended March 31, 2024 to rs. 596.91 Lacs for the year ended March 31, 2025.

Finance Cost

Our finance cost decreased from Rs. 116.99 Lacs for the year ended March 31, 2024 to Rs. 80.18Lacs for the year ended March 31, 2025. The decrease and repayment in borrowings during the year ended March 31, 2023, primarily, resulted in lower finance expense.

Employee benefits expenses

Employee benefits expenses account for 16.86% of our total revenue and form a major part of our total expenses. The expenses include fixed as well as variable components of employees salaries, along with contribution to provident fund and gratuity. Share based payments to employees and staff welfare expenses are not a part of that cost. Break-up of this head of expenses compared to the previous years numbers, is given below:

Particulars	Fy 2024-25			Fy 2023-24	increase/ (decrease) %
	rs. (in Lacs)	% of total revenue	rs. (in Lacs)	% of total revenue
salary, Wages & Bonus	2398.57	15.33%	2173.85	13.25%	2.08
Contribution to Provident &	173.42	1.10%	141.50	0.86	0.24%
Other Funds
Gratuity Fund and Leave Exprnses	74.66	0.47%	57.21	0.35%	0.12%
Staff Welfare	65.96	0.41	55.70	0.34	0.07%

Total employee benefits expenses has increased by 11.25%. As a percentage of revenue, employee benefits expenses increased to 16.86% in FY25 from 14.45% in FY24. Increase in salaries and wages and contribution to provident and other funds, is in line with increase in revenue and headcount, taking into account cost optimization and pyramid rebalancing measures

Liquidity And Capital resoutrces/movement of Money (Cash)

The data given in Table A, Cash generated from operating activities in FY 2025 was Rs. 2,611.28 Lacs. Investing activities net outflow amounting to Rs. (987.47) Lacs in FY 2025 includes net investment in property, plant, equipment and intangibles to build capacity and capabilitiesforfuturebusinessgrowth.Cashoutflow financingactivities was Rs. (796.08) Lakhs. from Closing cash and cash equivalents as on March 31, 2025 was Rs. 512.79 Lakhs.

standalone statement of Cash Flows (rs. in Lacs)

PArTiCuLArs	2025	2024
Profit before Tax	2,436.73	3,152.90
Cash Flows from:
i. Operating Activities	2,611.28	2,901.66
i. Investing Activities	(987.47)	(2,030.37)
ii. Financing Activities	(796.08)	(286.62)
Closing Cash and Cash equivalents	512.79	284.01

MATeriAL deVeLOPMenT in HuMAn resOurCes

There has not been any major development on the human resources front. The industrial relation continues to be cordial during the year 2024-2025. The number of permanent employees on the rolls of Company as on 31st March, 2025 was 424. Total Headcount was increased by 7.07% during the year. siGniFiCAnT Key FinAnCiAL rATiOs

Details of significant changes (i.e. change of 25% or more as compared to the immediately previous financial financial ratios, along with detailed explanations therefore-

Particulars	Financial year 2024-2025	Financial year 2023-2024	Change
Debtors Turnover	8.35	8.27	- %
Inventory Turnover ^^	1.85	2.29	- %
Interest Coverage Ratio	36.59	30.79	-%
Current Ratio	4.46	3.71	-%
Debt-equity Ratio	0.02	0.06	-%
Operating Profit Margin #	16.02	20.67	-%
Net Profit Margin	11.68	14.47	-%
Return on Net Worth	12.59	18.42	-%

# Operating Margin is Defined as profit Before Taxes and Interest ^^ Inventory Turnover defined of Raw Material

interest Coverage ratio:

Rise in expense due to increase in turnover profit, higher interest cost is the reason for fall in Interest Coverage Ratio.

CAuTiOnArys TATeMenT

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable securities, laws and regulations. Actual results may differ substantially or materially from those expressed or implied inter-lia due to risk and uncertainties. These risks and uncertainties include the effect of economic and political conditions in India and abroad, volatility in interest rates and in the securities market, new regulations and Government policies that may impact the Companys businesses as well as the ability to implement its strategies. Importantfactorsthatwouldinfluencethe Companys operations include cost of raw materials, tax laws, interest and power cost and economic developments and such other factors within the country and the international economic and financial developments. The above discussion and analysis should be read in conjunction with the Companys financial statements included in this report and the notes thereto. Investors are also requested to note that this discussion is based on the consolidated financial results of the Company.

For Titan Biotech Limited

for Titan Biotech Limited

 

suresh Chand singla		naresh Kumar singla
Managing director		Managing director
din: 00027706		din: 00027448

 

date: August 13, 2025

Place: delhi