Namaskar and good afternoon ladies and gentlemen. I welcome all the members to the 48th annual general meeting of Biocon Limited. This meeting is being held through video conference in accordance with the circulars issued by the Ministry of Corporate Affairs and SEBI. The proceedings of the meeting shall be deemed to have been conducted at the registered office of the company in compliance with applicable laws. Now before we initiate the AGM proceedings, let me introduce my colleagues who have joined us. I have Mr. Shreas Tambbe, CEO and Managing Director. Virtually joining us is Miss Naal Kiddai, Lead Independent Director and Chairperson of the CSR and ESG Committee. Professor Ravi Mazumar, Non-Executive Director. Mr. Eric Mazumar, Non-Executive Director and Chairperson of the Science and Technology Transformation Committee. Mr. Nicholas Haga, Independent Director. Miss Rea Meotra Menan, Independent Director and Chairperson of the Nomination and Remuneration Committee. Mr. Atul Dhavan, Independent Director and Chairperson of the Audit Committee. Mr. Thomas Roberts, Non-Executive Director. Mr. Arun Chandavawkar, Independent Director and Chairperson of the Stakeholders Relationship Committee. Miss Niveriti Ray, Independent Director. And on the dais I am also joined by Mr. Kedar Rupadhair, Chief Financial Officer, and Mr. Rajes Shenoi, Company Secretary and Compliance Officer, and Mr. Akillesh Nand, Global Head Governance Risk and Compliance. Mr. Raji Malik, Independent Director and Chairperson of the Risk Management Committee, and Mr. Daniel Bradbury as well as Mr. Peter Pott, Independent Directors, have not been able to attend this AGM due to personal exigencies. Mr. Bobby Parik has completed his tenure with the company as an Independent Director with effect from the close of business hours of July 22nd, 2026. Further, Mr. Nicholas Hagar shall complete his tenure with the company as an Independent Director with effect from the conclusion of this AGM. I would like to place on record my deep appreciation and gratitude to Bobby Parik and Nicholas Haggard for their valuable contributions and stewardship.
We also have representatives of BSR and Company LLP, statutory auditors, and V Shreharan and Associates, secretarial auditors, who have joined this meeting virtually. BSR and Company LLP, statutory auditors, shall complete their tenure with effect from the conclusion of this AGM. I extend our sincere appreciation for their professionalism, valuable guidance, and support throughout their tenure. Participation of members through video conference is being reckoned for the purpose of quorum as per the circular issued by the MCA and Section 103 of the Companies Act 2013. As the requisite quorum is present for this annual general meeting, may I call this meeting to order. Notice of this annual general meeting and the integrated annual report for the financial year 2025-26 was sent through email to all the members whose email IDs are registered with the company/RTA or the repository participants in compliance with the MCA and SEBI circulars. Additionally, the company has also sent a letter to members whose email IDs are not registered with the company/RTA or the depository participants providing the web link and path of the company's website along with the QR code from where the AGM notice and integrated annual report for the financial year 2025-26 can be accessed in compliance with SEBI listing regulations. As the AGM notice and the statutory auditor's report on the consolidated and standalone financial statements are already circulated to the members, I take the same as read today. There are nine resolutions proposed to be passed as set out in the notice of the AGM. The company has taken all the necessary steps required as per the provisions of the Companies Act 2013 and the circulars issued by MCA to enable the members to participate and vote on the resolutions as set forth in the notice of the AGM. Members who have not cast their vote through remote e-voting and who are participating in this meeting will have the opportunity to cast their votes through the InstaPoll facility provided by KFintech Technologies Limited, register and share transfer agent of the company. I now call upon our company secretary, Mr. Rajes Shenoi, to provide general instructions to the members regarding participation in this meeting and on casting of votes through the e-voting facility. Over to you, Rajes.
Thank you, chairperson. Good afternoon everyone. I welcome all the members, board of directors, and invitees to the 48th annual general meeting of the company. This meeting is being held through video conference in compliance with the Companies Act 2013 and circulars issued by the MCA. All members are kept on mute to enable seamless conduct of the meeting. All the documents referred to in the notice and the explanatory statement have been made available electronically for inspection by the members during the AGM. Members who wish to speak or seek inspection of such documents can send a request to the company secretary department as per the details mentioned in the notice of the meeting. As the AGM is being held through video conference, the facility for appointment of proxies by the members is not applicable and hence the proxy register for inspection is not available. The company has received requests from few members to register them as speakers at the meeting. Accordingly, the flow will be open for these members to ask questions or express their views. The moderator will facilitate this session once the chairperson opens the flow for questions and answers. It may be noted that the company reserves the right to receive the number of members asking questions depending upon the availability of time at the meeting. Now, let me summarize the nine resolutions placed at today's meeting seeking members approval as set out in the notice of the annual general meeting. The first four resolutions pertain to ordinary business which are: first, adoption of standalone and consolidated financial statements for the financial year ended 31st May 2026 and the reports of the board of directors and auditors thereon. Second, declaration of final dividend of 50 paisa per equity share for the financial year ended 31st March 2026. Third, appointment of Mr. Eric Mazumdar who retires by rotation and being eligible seeks reappointment as director. Fourth, appointment of S R Batliboi and Associates LLP, chartered accountants, as statutory auditors of the company and fixation of their remuneration. Resolutions number 5 to 9 are special businesses. Resolution number five is towards the formulation, adoption, and implementation of the Biocon Unity Long-Term Incentive Plan 2026 and notified plans there to eligible employees of the company. Resolution number six is towards grant of stock units or offer for employee stock purchase under the Biocon Unity Long-Term Incentive Plan 2026 including the notified plans there to the eligible employees of the present and future subsidiary companies, associate companies, or holding company if any of the company. Resolution number seven is towards authorization to the Biocon India Limited Employees Welfare Trust for secondary acquisition for implementation of the Biocon Unity Long-Term Incentive Plan 2026 including the notified plans there. Resolution number eight is towards providing financial assistance by the company to Biocon India Limited Employees Welfare Trust to enable acquisition or subscription of equity shares of the company for implementation of the Biocon Unity Long-Term Incentive Plan 2026 including the notified plans there. Resolution number nine is towards the ratification of remuneration to the cost auditors for the financial year 2026-27. The text of the resolutions along with explanatory statement is provided in the notice circulated to the members. In compliance with the MCA circulars, the items of special business in the AGM notice are considered unavoidable and hence are proposed for approval of the members. In compliance with the provisions of the Companies Act 2013 and SEBI listing regulations, the company has arranged for e-voting facility for all the members holding shares in the company as on the cut-off date of 30th July 2026 through KFintech Technologies Limited for all the resolutions proposed at today's AGM. The remote e-voting period commenced on Saturday, 1st August 2026 at 9:00 a.m. and ended yesterday, Wednesday, 5th August at 5:00 p.m. Members who have joined us today for this AGM through the video conferencing facility and who have not cast their vote during remote e-voting period can still cast their vote on all the resolutions as set forth in the AGM notice through the InstaPoll facility provided by KFintech Technologies Limited. Members may click on the thumb option below the screen to cast their vote on the resolutions. Mr. V Sridharan and in his absence Mr. Pravin Krani, practicing company secretaries and partners of Mrs. V Sridharan and Associates, have been appointed by the board as the scrutinizer for the e-voting process. Upon submission of report by the scrutinizer, the results of e-voting will be intimated to the stock exchanges within two working days from conclusion of this AGM and will be made available on the company's website and the website of KFintech Technologies Limited. Statutory auditors BSR and Company LLP and secretarial auditors V Sridharan and Associates have expressed unmodified opinion on their respective reports for the financial year 2025-26. The statutory auditors' reports on the standalone financial statements and on consolidated financial statements are made available on page number 268 and 334 of the annual report respectively. The secretarial audit report is available on page number 28 of the annual report. I now request the chairperson to address the members.
Thank you, Rajes. Dear shareholders, I would like to start by saying that India stands at a defining moment in its scientific and economic journey. I believe that the convergence of biotechnology and artificial intelligence will transform healthcare just as information technology transformed the global economy over the past three decades. With its scientific talent, entrepreneurial spirit, and manufacturing capabilities, India has a unique opportunity to emerge as a global biotechnology powerhouse. This ambition is reflected in the government's vision to build a $700 billion bioeconomy by 2035. Long before biotechnology became a national priority, I'm proud to say that Biocon believed in its potential. For over 25 years, we have invested ahead of the opportunity, building scientific capabilities, nurturing talent, and creating world-class manufacturing infrastructure. In fact, we have started this process 48 years ago, building and creating India's largest biotech company. Our continued investment of around 7 to 9% of revenues in research and development reflects our belief that enduring scientific leadership is built through sustained commitment, not short-term opportunity. Those investments have enabled Biocon to become one of the world's leading biosimilars companies. Today we rank among the top five by revenue and are the third largest supplier of insulins by volume. Our portfolio spans more than 30 molecules with 12 commercialized globally, serving millions of patients across diabetes, oncology, and immunology. FY26 marked a defining milestone in our evolution. The integration of our generics and biosimilars businesses through the consolidation of Biocon Biologics as a wholly owned subsidiary has created a stronger, simpler, and more focused organization. By bringing together biosimilars, insulins, complex generics, and GLP-1 peptides under one company, we have sharpened our strategic focus, strengthened our balance sheet, and enhanced our ability to create long-term shareholder value. This new chapter will be led by Shrehas Tambbe. Having worked with Shrehas for nearly three decades, I have complete confidence in his ability to build on our strong foundations and lead Biocon into its next phase of global growth. I also want to thank Siddharth Mittal for his significant contribution over the past 13 years. His leadership has been instrumental in strengthening Biocon and preparing the company for this important transition. I wish him every success as he begins to lead Syngene towards its next phase of growth. Our financial performance in FY26 reflected disciplined execution despite a challenging global environment. Operating revenues grew 13% while EBITDA margins expanded by nearly 200 basis points. Our biosimilars business remained the primary growth engine, delivering 16% revenue growth and a 40% increase in EBITDA on a comparable basis. We also successfully raised nearly $1 billion through two qualified institutional placements or QIPs. This overwhelming investor support enabled us to consolidate full ownership of our biosimilars business, retire structured debt, strengthen our balance sheet, and improve our credit profile. Today, Biocon is financially stronger, strategically sharper, and better positioned than ever before.
Looking ahead, the next decade of healthcare will be defined by scientific innovation and artificial intelligence. AI is already transforming how medicines are discovered, developed, and manufactured. And we are embedding it across our research, development, manufacturing, and business operations to accelerate innovation and improve productivity. One of the most exciting growth opportunities lies in what I describe as diabesity – the closely linked and rapidly growing global challenge of diabetes and obesity and metabolic disease in general, which are now increasingly treated as a single interconnected metabolic condition. With our global leadership in insulin biosimilars and our rapidly expanding GLP-1 peptide capabilities, I do believe that Biocon is uniquely positioned to serve this evolving treatment paradigm and address one of the largest and fastest growing therapeutic markets in healthcare. At the same time, we continue to strengthen our leadership across biosimilars in oncology, immunology, and other chronic diseases, broadening patient access to affordable, high-quality biologic therapies around the world. Affordability remains one of healthcare's greatest challenges. Scientific breakthroughs achieve their true impact only when they reach the millions of patients who need them. This purpose continues to guide everything we do. During FY26, our medicines reached more than 23 million patients across 120 countries. We also strengthened our sustainability leadership, improving our S&P Global Corporate Sustainability Assessment score to 73 and earning inclusion in the S&P Sustainability Yearbook for the fourth consecutive year. These achievements reflect the philosophy that has guided us at Biocon from the very beginning: creating long-term value through scientific innovation, responsible business practices, and an unwavering commitment to patients. Before I conclude, I would like to thank our board, our employees, our partners, and above all you, our shareholders, for your continued trust and support. Nearly five decades ago, we set out to answer a simple question: Could a world-class biotechnology company be built from India? Today I think that question has been answered in a positive way. The more important question now is: Can India lead the next era of global biotechnology? I believe it can, and I believe Biocon has both the responsibility and the opportunity to help shape that future. For decades, we invested ahead of the opportunity in science, research, manufacturing, talent, and innovation. Those investments are now translating into stronger global leadership, greater resilience, and expanding access to affordable medicines. Our conviction has always been simple: If we create lasting value for patients through science and innovation, we will create enduring value for society and for our shareholders. The last five decades were about proving what was possible. The decade ahead is about leading at global scale. I believe Biocon has never been better positioned to do so. Thank you and namaskar. We will now proceed to the Q&A session. Over to you, Rajes.
Thank you, chairperson. Dear members, before we proceed with the questions and answer session, we would request you to kindly take note of a few points. Moderator will announce the name of each member who has registered themselves as speaker shareholder. Kindly unmute yourselves before you proceed to ask your question. Speakers are requested to keep your question brief and specific. I'll now request the moderator to facilitate the question and answer session please. Thank you.
Thank you, sir. We will now take up the speaker shareholders. We now request the first speaker shareholder Mr. Hanand Kotwan Kotwani to unmute the audio, switch on the camera, and ask the question please.
Yeah. Yeah, I am there. I am Namaste. A great pleasure. Great meeting. I am Hiran Kotwani from Kalya near Mumbai. Madam chairperson, highly respectable Mr. Chairperson, other dignity and my fellow shareholder. You talk of global leader. I hope you will be because you can only produce when we produce this oral anti-diabetic drug. We will thrill the world and you have capacity to do that. I have taken your balance sheet. Well, long way to go. Certainly 50% dividend is not respectable and the consoled profit is less but expansion at various end doing globally business I compliment you and your team how the future will be it will take long time but certainly your innovation and sustainability is well taken. I wish you to be world leader. You do in this work we are with you. The dividend is not important. The particularly affordable medicine you are tracking I am very much embraced. But if you innovate or revolute the world through you history tell us the new innovation as must and bound to be there. So you can innovate through the world best from my side. I am Hanan Gautwani from Kalya. Thank you.
Thank you, Shri Kotwani. Thank you for your good kind words and your very good message. We are committed to innovation. As you know we have delivered on innovation in the past and we hope to do so in the future. But thank you very much for your kind wishes.
Thank you. We now move on to the next speaker shareholder Mr. Koshik Narendra Sahuker. Mr. Koshik Narendra Sahuker can you please unmute the audio, switch on the camera, and ask your question please. Mr. Pawhik can you please speak. I'm sorry there seems to be some connectivity issue there is no feedback we move on to the next speaker shareholder Mr. Rishikesh Chopra. Sorry currently Mr. Rishikesh Chopra is not available in the meeting. We now move on to the next speaker shareholder Mr. Chaitan. Mr. Chaitan. Can you please. Somebody is waving their hands. Who is that? Uh it is Mr. Chopra. Yeah. Please Mr. Chopra go ahead. No we are not able to hear you Mr. Koshik. I think you are mute. Yes you are on mute. Please unmute and speak. We are not able to hear you.
Hello. Can you hear me ma'am? Thank you ma'am. Thank you so much to given me this speak with you myself not the koshik myself chetan chhatta and I'm joining this as from New Delhi and I am thank you for the moderator to giving me the chance again because he will unmuted me also. First of all I really congratulate to the management. Results. Almost 73 awards. Marvelous. No directors. 73. Shareholder shareholder last year 2022 2023 24 almost Last financial year 340,380 millions last year 26,440 million almost almost 1 lakh 23,900 million boost shareholder expansion shareholder lollipops million Last year last year huge huge profitability. Madam Book Book value. Yes, please. Okay, madam. Maybe happy family member. Thank you, ma'am. Thank you so much to giving me the chance to speak with you. acquisition global company acquisition was one of the largest acquisitions in the Indian pharma sector acquisition finan 50 balance sheet results. improve market capitalization. important. Bioon is the leading biologics bioarmaceutical company from India on the world stage. Top five biosimillers company ranking. Best wishes. Thank you.
We move on to the next speaker shareholder Mr. Satish Jayantilal Shah. I'm sorry Mr. Satish Jayantilal Shah is currently not available in the meeting. I now request Mr. Romesh Shankar Gula to unmute the audio, switch on the camera, and ask the question please. Mr. Romesh Shankar Gula can you please speak? Mr. Romeshankula you need to unmute. He's not there madam I'm sorry there seems to be some connectivity issue we move on to the next speaker shareholder Mr. Abhishek J. Mr. Abhishek J is currently not available in the meeting the next speaker shareholder Mr. PJ is also not available in the meeting the next speaker shareholder Mrs. Miss Lea Satisha is currently not available in the meeting. I now request Mr. Sarkar to unmute the audio, switch on the camera, and ask the question please.
Am I audible? Yes. Yes sir. Thank you. So good evening everyone. So congratulations for a consistent performance over the years madam. So I have the following four questions. So our revenues from the biosimilar business has been growing steadily over the years but our generics revenues are growing at a much slower pace. So can you explain this? Number two, how much of revenues do you expect the semaglutide will contribute to our generics business in FY27 and what are the key geographies where we have been making filings for generic semaglutide. My third question is you have stated that our CRDMO business grew by 3% year on year with near-term performance impacted by challenges relating to one large manufacturing customer. So can you elaborate on the set of challenges that that particular customer is facing and how much percentage revenues was attributable to that particular customer before these challenges took shape and madam my last question is why is our operating margins of 5% for the generics business much lower than the that of the biosimilars and the CRDMO segment that's it from my side that's thank you.
Thank you, Mr. Sarkar, and thank you for asking us some very important questions. Let me start by saying that as you know biosimilars is our key growth engine and we continue to focus on being leaders in biosimilars because of the fact that inherently it has a much better margin than generics. As you know, generics in general have a much lower margin because of the intense competition that every generics company faces around the world. Having said that, Biocon is also not a large generics company because it has focused on specialty generics which obviously doesn't have the kind of pace of growth that other generics companies have who have a much larger portfolio. We have chosen to be very focused on a specialty generics portfolio and therefore you are not seeing the kind of growth that you see in other companies. Having said that, we are now going to focus on developing a portfolio of products which will focus on improved growth, improved margins and in combination with biosimilars we want you to focus on biopharmaceuticals as a combined portfolio where you will see good growth, good margins and good profitability. In terms of your question on semaglutide as you know this is an evolving space companies have entered this space with a lot of excitement but also you are seeing that there's a lot of intense competition in emerging markets because those are the only markets that have opened up apart from Canada companies are also facing some manufacturing challenges but as a company which is end to end and integrated we believe that we are well positioned to have a good presence in the semaglutide market both in emerging markets and in the other markets when they open up. But I think what we are really looking at is to make sure that we enter these markets with a lot of preparation, thought, and durable presence in these markets. Right now we have been slower to the markets than other companies because we began these programs a little later but we do hope to enter them in the near future and once we enter these markets we will certainly let you know but I would also like to mention that when it comes to GLP-1s Biocon is already present in the advanced markets with liraglutide which is also a GLP-1 and therefore we believe when these markets open up to semaglutide and other GLP-1s, we should have a good presence in these markets with a competitive advantage. When it comes to Syngene, they were dependent on one company whose product was giving them sizable business and this company was in animal health. Unfortunately the product had perceived side effects and the business actually started getting affected. So whilst we were supplying them and giving them large supplies they had to slow down on offtake and now they have a large inventory because of the stoppage of their own product which has of course resumed. But since we have stocked up a large inventory for them, their demand for this drug is going to be much smaller than originally anticipated. So what we are now doing is to really develop a much more diversified customer base. It does take time as you know to suddenly fill up this kind of a gap and we expect that by the end of this fiscal you will start seeing some green shoots and a turnaround and FY28 will be the turnaround year. This year we have clearly indicated is a transition year under new leadership that is focusing on the CRDMO business and other specialty advanced services which will start gaining some traction by the end of this fiscal. And as for the operating margins I would like you to now start viewing Biocon as a biopharmaceutical company. You will see good operating margins as we move ahead. I hope I've answered all your questions. Thank you.
The next speaker shareholder Davinder Kaw is currently not in the meeting. We now request Mr. Ysef Yunis Ranguala to unmute the audio, switch on the camera, and ask the question please. Mr. Ysef Yunis Ranguala. Mr. Ysef Yunis Rangala, can you please unmute and speak? I'm sorry there is no feedback from Mr. Ysef Ununus Rangala. We move on to the next speaker shareholder Mrs. Celestian Elizabeth Mascinas to unmute the audio, switch on the camera, and ask the question please.
