Q1 2027 Shilpa Medicare Ltd Earnings Call

August 5, 2026

Operator 2: Ladies and gentlemen, good day and welcome to Shilpa Medicare Limited's Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Monish Shah from Shilpa Medicare. Thank you, and over to you, Mr. Monish.

Operator: Ladies and gentlemen, good day and welcome to Shilpa Medicare Limited's Q1 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Monish Shah from Shilpa Medicare. Thank you, and over to you, Mr. Monish.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touchscreen phone. Please note that this conference is being recorded.

Speaker #1: I now hand the conference over to Mr. Monish from Shilpa Medicare. Thank you, and over to you, Mr. Monish.

Speaker #2: Yeah, thank you, Virat, and a very warm welcome to everyone on our first quarter FY27 results call. Today, from the management, we have with us Mr. Keshav Gutada, Executive Director and CEO of Shilpa Pharma Life Science.

Monish Shah: Yeah. Thank you, Virat. A very warm welcome to everyone on our Q1 FY27 results call. Today from the management we have with us Mr. Keshav Bhutada, Executive Director and CEO of Shilpa Pharma Lifesciences Limited, and Mr. Alpesh Dalal, our CFO. The financial results and the presentations are uploaded on the stock exchange, and the transcript along with the audio will be available on our website and also on the stock exchanges. Please note, today's discussion might include certain forward-looking statements based on current expectations and assumptions. These statements are subject to risks and uncertainties that could cause actual results to differ materially. The company undertakes no obligation to publicly update or revise any forward-looking statements. With that, I would like to hand the call over to Mr. Keshav for his opening remarks. Thank you, and over to you.

Speaker #2: And Mr. Alpesh Dalal, our CFO. The financial results and the presentations are uploaded on the stock exchange, and the transcript, along with the audio, will be available on our website and also on the stock exchanges.

Speaker #2: Please note, today's discussion might include certain forward-looking statements. Based on current expectations and assumptions, these statements are subject to risks and uncertainties that could cause actual results to differ materially.

Speaker #2: The company undertakes no obligation to publicly update or revise any forward-looking statements. With that, I would like to hand the call over to Mr. Keshav for his opening remarks.

Speaker #2: Thank you, and over to you.

Speaker #3: Thank you, Monish. Good evening, everyone. I want to start not with this quarter's numbers—we will get to those, and they are the best in our history.

Keshav Bhutada: Thank you, Monish. Good evening, everyone. I want to start not with this quarter's numbers, we will get to those. They are the best in our history, but with simple question: What kind of company is Shilpa Medicare becoming? Three years ago, the honest answer was: A solid, hardworking API business carrying a lot of debt. Our net debt to EBITDA was 6.7 times, and our ROC was in single digit. Today, we have net debt to EBIT of 1.3 times, a ROC of double digit, a credit rating just upgraded to AA minus. Portfolio that no longer makes ingredients. It develops first-in-class drugs, partners with global innovators, and manufactures some of the most complex molecules. As I have mentioned previously, I would like to reiterate on operational leverage. Still, our big bets in biologics, CDMO, novel drug delivery, NCE, are under monetization.

Speaker #3: But with a simple question: what kind of company is Shilpa Medicare becoming? Three years ago, the honest answer was a solid, hardworking API business carrying a lot of debt. Our net debt to EBITDA was 6.7 times, and our ROC was in single digits.

Speaker #3: Today, we have net debt to EBIT of 1.3 times, ROC in double digits, a credit rating just upgraded to AA minus, and a portfolio that no longer includes ingredients.

Speaker #3: It develops first-in-class drugs, partners with global innovators, and manufactures some of the most complex molecules. As I have mentioned previously, I would like to reiterate on operational leverage—still, our big bets in biologics, CDMO, novel drug delivery, and ND are under monetization.

Speaker #3: As those planned fill up, we are confident of incremental revenue and better margins. In simple terms, the heavy investing is largely behind us; the harvesting is ahead of us.

Keshav Bhutada: As those plans fill up, we are confident of incremental revenue and better margins. In simple terms, the reinvesting is largely behind us. The harvesting is ahead of us. Let me walk you through our Q1 performance division-wise. My overall commentary will be divided into 3 segments: API division, formulation division, and biologics division. In API division, we remain largely focused on CDMO, peptides, and oncology as a portfolio, and we continue to invest our resources in it. On CapEx side, we are doing large capital investment in peptide manufacturing capacity in India, which will have capability of manufacturing from start to end in solid phase synthesis, and block will complete commissioning by end of FY27. In CDMO side, we have totally 3 NCE advanced programs, which will get commercialized in FY28. We remain on track to complete 15 new oncology product validations on the generic side in FY27.

Speaker #3: Let me walk you through our Q1 performance, division-wise. My overall commentary will be divided into three segments: API division, formulation division, and biologics division.

Speaker #3: In the API division, we remain largely focused on CDMO, peptides, and oncology as a portfolio, and we continue to invest our resources in it. On the capex side, we are making large capital investments in peptide manufacturing capacity in India, which will have the capability to manufacture from start to end using solid phase synthesis.

Speaker #3: And block will complete commissioning by end of FY27. In CDMO side, we have totally three NC advanced programs, which will get commercialized in FY28.

Speaker #3: We remain on track to complete 15 new oncology product validations on the generic side, in FY27. In total, we are working on 25-plus NC programs in our API division, in which many of the programs are in early stage—Phase One, Phase Two—and three programs are in late stage.

Keshav Bhutada: In total, we are working on 25 plus NCE programs in our API division, in which many of the programs are in early stage, phase I, phase II, and 3 programs in late stage. Overall, API business is likely to have a steady growth in FY27. Now I'll start briefing about formulation division. Our first NCE molecule, norursodeoxycholic acid, which was approved last year in India, is performing as expected, and we are seeing some very good early clinical outcomes in patients in the end market. We have strong visibility of orders for FY27. norUDCA as a product, we are also taking this globally. In global market, we have successfully completed European and US scientific advisors, and we will be starting global phase II clinical studies in FY27.

Speaker #3: Overall, the API business is likely to have steady growth in FY27. Now, I'll start briefing about the formulation division. Our first NCE molecule, nor-ursodeoxycholic acid, which was approved last year in India, is performing as expected.

Speaker #3: And we are seeing some very good early clinical outcomes in patients, in the end market. We also have strong visibility of orders for FY27.

Speaker #3: For UDC as a product, we are also taking this globally. In the global market, we have successfully completed European and US scientific advisories. We will be starting global Phase 2 clinical studies in FY27.

Speaker #3: Three commercial 55B2s, which were approved in last year, are performing well as expected. And the sales are remain growing quarter on quarter. Three important near-term filings, which are Abrexin and Enzalutamide and Abritron formulation, are on track to be launched in FY28.

Keshav Bhutada: 3 commercial 505(b)(2)s, which were approved in last year, are performing well as expected, and the sales remain growing quarter-on-quarter. 3 important near-term filings, which are ABRAXANE, enzalutamide, and abiraterone formulation, are on track to be launched in FY28. rotigotine transdermal patch, which is one of the complex transdermal patches, for the product, since we already have received approval in Europe, the same product has been successfully filed in US, and we have already partnered with one of a very strong US partner in US. We remain on track for launch in FY28. OLC opportunity with Unicycive Therapeutics, where we are their CDMO partner for API and formulation. The partner is working very closely with US FDA on the recent CRL receipt, and we are working closely with our partner for next steps.

Speaker #3: Roti Codein transdermal patch, which is one of the complex transdermal patches, and for the product, since we have already received approval in Europe, the same product has been successfully filed in the US, and we have already partnered with one of our very strong US partners.

Speaker #3: And we remain on track for launch in FY28. OLC opportunity with Uniseisive Therapeutics, where we are their CDMO partner for API and formulation. The partner is working very closely with the US FDA on the recent CRL received.

Speaker #3: And we are working closely with our partner for the next steps. Apart from the above, we have a very strong and complex pipeline, for which product-wise status is already given in the investor presentation.

Keshav Bhutada: Apart from above, we have very good strong complex pipeline for which product-wide status is already given in investor presentation, I request all the investors to go through it. Overall, existing and new pipeline launches, there is likely strong growth possibility in formulation. Now I'll start briefing about biologics division. Our second biosimilar product, which is aflibercept, the product clinical studies have been successfully completed, and we remain on track for launch in India market in FY27. For the said product, already we have partnered with one of the best Indian companies, we have partnered with 3 companies who have decent market share in the ophthalmic industry in India. Our first European partnering of nivolumab with Orion Corporation gives us further assurance on commercialization of our biosimilar pipeline globally.

Speaker #3: And I request all the investors to go through it. Overall, with existing and new pipeline launches, there is likely a strong growth possibility in formulations. Now, I'll start briefing about the biologics division.

Speaker #3: Our second biosimilar product, which is aflibercept, the product clinical studies have been successfully completed. And we remain on track for launch in the India market in FY27.

Speaker #3: For the said product, already we have partnered with one of the best Indian companies. We have partnered with three companies who have decent market share in the ophthalmic industry in India.

Speaker #3: Our first European partnering of Nivolumab in Europe with Orion Corporation gives us further assurance on commercialization of our biosimilar pipeline globally. For the Nivolumab product, the India clinical study has already started.

Keshav Bhutada: For nivolumab product, India clinical study has already started, and we remain confident for launching this product in FY28 in India. On the other biosimilar pipeline, we have more than five biosimilars for which details and status are already given in the investor presentation. On CDMO side of business, Shilpa Biologics has very unique capabilities of manufacturing any product from clone development to fill finish. With this capability, we today have more than six active NCE programs already working with various partners. In which one of the program will be entering into human clinical studies in FY27 by our partner. Two NCE programs where we have done strategic investments, the program with MapTree and Alveolus Bio are on track to enter human studies in FY27. Our first ADC biosimilar is also on track for entering human studies in FY27.

Speaker #3: And we remain confident about launching this product in FY28 in India. Regarding the other biosimilar pipeline, we have more than five biosimilars, for which details and status are already given in the investor presentation.

Speaker #3: On the CDMO side of the business, Shilpa Biologics has very unique capabilities for manufacturing any product from clone development to fill-finish. And with this capability, we today have more than six active NCE programs already working with various partners.

Speaker #3: In which the first one of the programs has entered, will be entering into human clinical studies in FY27 by our partner. Two ND programs, where we have done strategic investments—the program with Matri and Alveolus Bio—are on track to enter human studies in FY27.

Speaker #3: Our first ADC biosimilar is also on track for entering human studies in FY27. Today, Shilpa Biologics is one of the very few integrated ADC manufacturing companies in India.

Keshav Bhutada: Today, Shilpa Biologics is one of the very few integrated ADC manufacturing company in India. On new biological entity, which is recombinant human albumin, as mentioned previously, we are confident of starting human clinical studies in current year, and we remain on track for filing in next year in India. Let me bring back to where I started. The transformation is already on scorecard in the delivering, in rating upgrade, in returns, in a record quarter driven by every part of business returns. We as a company have done the hard, patient building work and are now positioned to convert into higher growth and margins. We have built it to last, we have built it to compound. We would thank to all our investors in trusting us and staying alongside us always. Thank you, and I now hand over the call to Alpesh Dalal for talking on financials.

Speaker #3: On the new biological entity, which is recombinant human albumin, as mentioned previously, we are confident of starting human clinical studies in the current year, and we remain on track for filing next year in India.

Speaker #3: So let me bring back to where I started. The transformation is already on the scorecard. In the delivery and reading, upgrade. In returns, in a record quarter driven by every part of business returns.

Speaker #3: We, as a company, have done the hard, patient-building work and are now positioned to convert this into higher growth and margins. We are built to last.

Speaker #3: We are built to compound. And we would like to thank all our investors for interesting us and staying alongside us always. Thank you, and I now hand over the call to Alpesh Dalal to talk on financials.

Speaker #1: Thanks. Thanks, Keshav. And good evening, everyone. You know, welcome to our Q1 FY27 results call. Financial performance for the quarter. I'm really pleased to, you know, announce that we have delivered our highest ever quarterly revenue and EBITDA for the fourth successive quarter.

Alpesh Dalal: Thanks Keshav, good evening, everyone. Welcome to our Q1 FY27 results call. Financial performance for the quarter. I am really pleased to announce that we have delivered our highest ever quarterly revenue and EBITDA for the fourth successive quarter. With our quarterly revenue at INR 469 crores, reflecting a growth of 43% year on year, backed by healthy gross margin of 71% for the quarter. EBITDA for the quarter was INR 139 crores, again growing at 42% with an EBITDA margin of 30%. During the quarter, our operating PBT, which is before share of profit from JVs and associates and before exceptional items, was INR 92 crores against INR 50 crores in the same quarter last year. Whereas our reported PBT stood at INR 98 crores, growing at 98% year on year.

Speaker #1: And with our quarterly revenues at ₹469 crores, reflecting a growth of 63.43% year on year, backed by a healthy gross margin of 71% for the quarter.

Speaker #1: EBITDA for the quarter was ₹139 crore, again growing at 42%, with an EBITDA margin of 30%. During the quarter, our operating PBT, which is before share of profit from JVs and associates and before exceptional items, was ₹92 crore.

Speaker #1: Against ₹50 crore in the same quarter last year, whereas our reported PBT stood at ₹98 crore, growing at 98% year-on-year. During the quarter, we had a negative tax rate on account of reversal of deferred tax liability for Shilpa Medicare, where the company is planning to switch to the new regime on account of lower tax incidence under the new regime.

Alpesh Dalal: During the quarter, we had a negative tax rate on account of reversal of deferred tax liability for Shilpa Medicare, where the company is planning to switch to new regime on account of lower tax incidence under the new regime. Reported PAT for the quarter was INR 101 crore, growing at 115% year-on-year. Going forward, we expect the tax rate to normalize at around 25% for the coming quarters. On the CapEx front, we have spent about INR 114 crores in the first quarter, and the CapEx is primarily funded through our internal accruals and deployed across our different businesses. The improved performance and positive operating leverage that we have witnessed has helped us in improving our return ratios during the past two years, with ROC improving to 12.5% from 8.8% in FY25.

Speaker #1: Reported PAT for the quarter was ₹101 crore, growing at 115% year on year. Going forward, we expect the tax rate to normalize at around 20-25% for the coming quarters.

Speaker #1: On the capex front, we have spent about ₹114 crore in the first quarter, and the capex is primarily funded through our internal approvals and deployed across our different businesses.

Speaker #1: The improved performance and positive operating leverage that we have witnessed has helped us in improving our return ratios during the past two years, with ROC improving to 12.5% from 8.8% in FY25.

Speaker #1: And on adjusted for biologics and ND businesses, the ROC actually suits at 18.3% because these businesses are you know as Keshav was mentioning, they are still at early stages and you know have a lot of revenue generation opportunities still left there.

Alpesh Dalal: Adjusted for biologics and NBE businesses, the ROC actually stood at 18.3% because these businesses are, as Keshav was mentioning, still at early stages and have a lot of revenue generation opportunities still left there. With all those key verticals showing strong revenue momentum coupled with pipeline of niche launches, we remain confident of improving our operating leverage driven by improved business mix resulting into higher ROC in the coming years. Before moving to the segmented highlights, I would like to reiterate what Keshav has just mentioned that our company has received a credit rating category upgrade, from A+ to AA-. This reflects a significant improvement in our operations and financial performance over the past few years.

Speaker #1: With all three verticals showing strong revenue momentum, coupled with a pipeline of niche launches, we remain confident of improving our operating leverage and business mix, resulting in higher ROC in the coming years.

Speaker #1: And before moving to the segmental highlights, I would like to reiterate what Keshav has just mentioned: that our company has received a credit rating category upgrade—it has been improved from A+ to AA-.

Speaker #1: This reflects significant improvement in our operations and financial performance over the past few years. Besides this, I am also happy to announce that the company has been certified as a Great Place to Work, a recognition that reflects the culture, trust, and commitment towards a healthy work environment.

Alpesh Dalal: Besides this, I am also happy to announce that the company has been certified as a Great Place to Work, a recognition that reflects our culture, trust, and commitment towards healthy work environment. Now let me walk you through the segmented performance. Our API business clocked a revenue of ₹260 crores for the quarter, growing at 15% year-on-year. Our non-captive third-party API sales also witnessed around 16% growth year-on-year. The growth was on account of improved offtake of key products from newly expanded capacities, coupled with strong captive demand coming from our FDF, finished formulation vertical. Even the specialty CDMO within the API division witnessed a strong traction driven by new client acquisition in developed markets.

Speaker #1: Now let me walk you through the segmental performance. Our API business clocked a revenue of ₹266.0 crores for the quarter, growing at 15% year on year.

Speaker #1: And our non-captive third-party API sales also witnessed around 16% growth year on year. The growth was on account of improved offtake of our key products from newly expanded capacities, coupled with strong captive demand coming from our FDF—finished formulation—vertical.

Speaker #1: Even the specialty CDMO within the API division witnessed strong traction, driven by new client acquisition and developed markets. The formulation revenue for the quarter was at ₹198 crore, growing over 100% year on year.

Alpesh Dalal: The formulation revenue for the quarter were at ₹198 crores, growing over 100% year-on-year. Ex licensing income, the base business reported robust revenue growth of approximately 112% during the quarter, largely driven by complex FDF portfolio in US region supported by EU and ROW regions. Moving to the biologics segment. Our biologics segment reported revenue of ₹52 crores, growing at 42% year-on-year. This strong growth was driven by continued deal momentum towards licensing and partnership and CDMO businesses. I would like to request the moderator to open the line for Q&A.

Speaker #1: Excluding licensing income, the base business reported robust revenue growth of approximately 112% during the quarter, largely driven by the complex FDF portfolio in the US region, supported by the EU and ROW regions.

Speaker #1: Moving to the biologics segment, our biologics segment reported revenue of ₹52 crores, growing at 42% year on year. This strong growth was driven by continued deal momentum towards licensing and partnership and CDMO businesses.

Speaker #1: With that, I would like to request the moderator to open the line for Q&A.

Speaker #2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.

Operator 2: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sajal Kapoor from Antifragile Thinking. Please go ahead.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sajal Kapoor from Antifragile Thinking. Please go ahead.

Speaker #2: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question.

Speaker #2: Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Sajal Kapoor from Antifragile Thinking.

Speaker #2: Please go ahead.

Speaker #3: Yeah, hi. Thank you for taking my questions. Amazing execution, team—congratulations for that. Just two questions. First is, as our existing investments start monetizing and we can see that in the numbers, what would make you say we have enough capability for now and prioritize sweating existing assets over building a new one?

Sajal Kapoor: Yeah. Thank you for taking my questions. Amazing execution team. Congratulations for that. Just two questions. First is, as our existing investments start monetizing, and we can see that in the numbers, what would make you say we have enough capability for now and prioritize sorting existing assets over building the new one?

Speaker #4: Yeah, Sajal, thanks for your question. See, I think the most important point here—if you see our historical capex run rate, right—we have invested heavily in biologics.

Keshav Bhutada: Yeah, Sajal, thanks for your question. See, I think most important point here, if you see our historical CapEx run rate, we have invested heavily in biologics, we have invested heavily in formulations, and those investments for us could translate into sizable revenue because there the capacity utilization, what we have currently in some of those specialty divisions where we invested is very less today. We have room for decent capacity utilization there. Coming to API, where we have high capacity utilization, that is where we are already doing additional CapEx investment, where we feel that there is lot of room for additional capital investment and additional growth. The mix of these two is something which makes us more confident to tell that we have enough capital already deployed for upcoming growth.

Speaker #4: We have invested heavily in formulations. And those investments, for us, could translate into sizable revenue because the capacity utilization that we currently have in some of those specialty divisions where we invested is very low today.

Speaker #4: So we have room for decent capacity utilizations there. Coming to API, where we have high capacity utilization, that is where we are already doing additional capital capex investment.

Speaker #4: Where we feel that there is a lot of room for additional capital investment and additional growth. The mix of these two is something which makes us more confident to say that we have enough capital already deployed for upcoming growth.

Speaker #3: Yeah, no, that that's helpful. And the given that we have a diverse set of capabilities, including biologics, including peptides, and including CDMO, what is becoming cheaper or faster to develop?

Sajal Kapoor: Yeah. No, that's helpful. Given that we have a diverse set of capabilities, including biologics, including peptides, and including CDMO, what is becoming cheaper or faster to develop? Because all these capabilities now exist in the ecosystem, and we can leverage them in combination. What I'm trying to understand here is, are we getting a sense that one plus one is greater than two now?

Speaker #3: Because all these capabilities now exist in the ecosystem and we can leverage them in combination. So what I'm trying to understand here is, are we getting a sense that one plus one is greater than two now?

Speaker #4: No, Sajal, I think to answer in simple words, right, the Shilpa as a company, the way we are built, is integration. If you see our API is integrated with formulation or biologics is integrated from clone to fill finish.

Keshav Bhutada: No, Sajal, I think to answer in simple words, Shilpa, as a company, the way we are built is integration. If you see our API is integrated with formulation, our biologics is integrated from clone to fill finish. Same way, our albumin we do starting from clone development to fill finish. I think today what industry needs is the capabilities of one-stop solution. That is what we have.

Speaker #4: Same way our albumin we do from starting from clone development to fill finish. I think today what industry needs is the plant, the capabilities of one stop solution that is what we have.

Speaker #3: No, that's very helpful. Thank you so much, and I wish you all the very best.

Sajal Kapoor: No, that's very helpful. Thank you so much, and wish you all the very best.

Speaker #4: Yeah, thank you.

Keshav Bhutada: Yeah. Thank you.

Speaker #2: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant.

Operator 2: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Gaurav Bhardwaj from TechSec Funda Investment Managers. Please go ahead.

Operator: Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Gaurav Bhardwaj from TechSec Funda Investment Managers. Please go ahead.

Speaker #2: The next question is from the line of Gaurav Bharatwaj from TechSecFunda Investment Managers. Please go ahead.

Speaker #5: Yeah, hello sir. Am I audible?

Gaurav Bhardwaj: Hello, sir. Am I audible?

Speaker #4: Yes.

Alpesh Dalal: Yes.

Speaker #5: Sir, first of all, congratulations on your stellar results for the past two quarters. I have two questions. My first question is: how do you see the company developing over the next two to three years in terms of profitability and RoCE?

Gaurav Bhardwaj: Sir, actually, first, congratulations for your stellar result for consecutive quarters. Sir, I have two questions. First question is, how do you see the company down the line in two, three years in terms of profitability and through ROC? Sir, my second question is Shall I continue with second or later?

Speaker #5: And sir, my second question is, shall I continue with the second question now or later?

Speaker #4: Yeah, go ahead, go ahead.

Alpesh Dalal: Yeah, go ahead.

Speaker #5: And sir, my second question is, as there are many developments are going on in our company, I said what barriers can come into show to slower slow down our path?

Gaurav Bhardwaj: Sir, my second question is, as there are many developments are going on in our company, sir, what barriers can come in to slow down our growth path?

Speaker #5: Growth path.

Speaker #4: Yeah, okay. So I'll take the first question and second will be taken up by Keshav. So as far as, you know, the growth momentum is concerned, as we have been regularly seeing that we may not be able to provide guidance for the future, but as a general you know, rule or the way we have been working at various aspects and the way we are developing our pipeline, we we can visualize a very healthy and steady growth as Keshav had mentioned in his speech also, that we are looking at, you know, monetizing more and more our more and more of our investments that we have done in biologics and, you know, niche kind of formulation business as well.

Alpesh Dalal: Yeah. Okay. I'll take the first question, and second will be taken up by Keshav. As far as the growth momentum is concerned, as we have been regularly saying that we may not be able to provide guidance for the future, but as a general tool or the way we have been working at various aspects and the way we are developing our pipeline, we can visualize a very healthy and steady growth. As Keshav had mentioned in his speech also, that we are looking at monetizing more and more of our investments that we have done in biologics and niche kind of formulation business as well. Those are high margin, better profit-yielding businesses. They obviously are expected to generate significantly better returns as well.

Speaker #4: So those are high margin better profit yielding businesses. So they obviously are expected to generate significantly better returns as well. So whilst we may not be able to provide you a specific number, but what we can see from here on is that the growth trajectory looks very robust and with a faster growing trajectory on the profitability resulting into better ROCs across the board.

Alpesh Dalal: Whilst we may not be able to provide you a specific number, what we can see from here on is that the growth trajectory looks very robust and with a faster-growing trajectory on the profitability resulting into better ROCs across the board.

Speaker #5: Yeah, okay, sir. That's very helpful.

Gaurav Bhardwaj: Yeah. Okay, sir. That's very helpful.

Speaker #4: Yeah, and what could be the, you know, challenges that we could face, or what could slow down our growth? Probably—see, the thing is, the regulatory pathway in the pharmaceutical industry is a very critical aspect.

Alpesh Dalal: Yeah. What could be the challenges that we could face or what could slow down our growth? Probably, the regulatory pathway in pharmaceutical industry is a very critical aspect. Whilst we are working towards being very robust and compliant with our practices, once in a while, the way regulatory authorities look at us could be a bit different, and if some of those challenges come up, unexpected challenges come up, that might slow down the growth trajectory that we have. General trend towards moving further on the growth trajectory will continue. It might slow down if some such regulatory challenge comes up.

Speaker #4: Whilst we are working, you know, towards you know, being very robust and compliant with our you know, practices, once in a while the way regulatory authorities look at us could be a bit different.

Speaker #4: And if some of those challenges come up—unexpected challenges come up—that might slow down the growth trajectory that we have. But in general, you know, the general trend towards moving further on the growth trajectory will continue.

Speaker #4: It might slow down if some such regulatory challenge comes up.

Speaker #5: Okay, sir. Okay. Thank you so much.

Gaurav Bhardwaj: Okay, sir. Thank you so much.

Speaker #4: Yeah.

Alpesh Dalal: Yeah.

Speaker #2: Thank you. The next question is from the line of Krisha Kantara from Molecule Ventures. Please go ahead.

Operator 2: Thank you. The next question is from the line of Krisha Kansara from Molecule Ventures. Please go ahead.

Operator: Thank you. The next question is from the line of Krisha Kansara from Molecule Ventures. Please go ahead.

Speaker #1: Yeah, am I audible?

Krisha Kansara: Yeah. Am I audible?

Speaker #4: Yes, please.

Alpesh Dalal: Yes, please.

Speaker #1: Yeah. Firstly, many congratulations to the entire team on a very good set of numbers. Firstly, on Nord UDCA, I have three questions. First, post our launch in Q3 of FY26, we have seen two quarters of commercial revenue.

Krisha Kansara: Yeah. Firstly, many congratulations to the entire team on a very good set of numbers. Firstly, on NorUDCA, I have three questions. First, post our launch in Q3 FY2026, we have seen two quarters of commercial revenue, and our domestic formulation segment has contributed INR 59 crore in these two quarters. How much of this INR 59 crore came from NorUDCA? Second, we have now completed the disease curability duration of six months, as you rightly mentioned in the previous con call, and you also highlighted in your opening remarks that the clinical data is positive. Third, in the last month, Emcure Pharma, which is the marketing partner for Novo Nordisk semaglutide, they received CDSCO approval for an additional indication for treatment of fatty liver. What is the management's thought on this? Thank you.

Speaker #1: And our domestic formulation segment has contributed ₹59 crores in these two quarters. So, how much of this ₹59 crores came from Nord UDCA? Second, we have now completed the disease curability duration of six months.

Speaker #1: As you rightly mentioned in the previous concall, and you also highlighted in your opening remarks, the clinical data is positive. So could you please elaborate on this?

Speaker #1: And third, in the last month, MCure Pharma, which is the marketing partner for Novo Nordisk, Semaglutide, they received CDSO approval for an additional indication for treatment of fatty liver.

Speaker #1: So, what is management's thought on this? Thank you.

Speaker #4: So, Krisha, to give you simple answers, I think at the product level we don't give sales numbers. So, sorry that we cannot give those. But as I mentioned, we have a very strong order trajectory.

Keshav Bhutada: Krisha, to give you simple answers, product level, we don't give sales numbers, sorry that we cannot give. As I mentioned, we have very strong order trajectory. That should give confidence to everyone on the product. Coming to the third question, which is very important, the products like semaglutide or other products which people are doing for indications like non-alcoholic fatty liver disease. The mechanism of action of norUDCA and any other product which today many studies are going on is completely different. NorUDCA directly attacks the liver enzyme. That is the major advantage what is there in the product against products like semaglutide, which has a different mechanism of action for liver cirrhosis.

Speaker #4: I think that should give confidence to everyone on the product, which I think is very important—the product like Semaglutide or other products that we are getting, which people are using for indications like non-alcoholic fatty liver disease.

Speaker #4: See, the mechanism of action of Nord UDCA and any other product which today many studies are going on is completely different. Nord UDCA directly attacks the liver enzymes.

Speaker #4: That's the major advantage that is there in the product. Again, products like Semaglutide, which has a different mechanism of action for liver fibrosis.

Speaker #1: Okay, and what about the data? The six-month curability data that you mentioned?

Krisha Kansara: Okay. What about the data, the six-month curability data that you mentioned?

Speaker #4: Yeah, see, on the clinical data, if you read online, all the data of our product is already published, and we are already doing the phase four clinical study.

Keshav Bhutada: On the clinical data, if you read online, all the data of our product is already published, we are already doing the phase IV clinical study. Once that data is available, that also we will be publishing. That should suffice the requirement.

Speaker #4: Once that data is available, we will also be publishing it. I think that should suffice for the requirement.

Speaker #1: Okay, okay. And can I just pitch in one more question?

Krisha Kansara: Okay. Can I just pitch in one more question?

Speaker #4: Yeah.

Keshav Bhutada: Yeah.

Speaker #1: Yeah. So this is on the biologics team. Firstly, congratulations to Dr. Uday Harley on joining Shilpa Biologics. I would like the management to spend some time highlighting their strategy for building a dedicated team in the biologics division.

Krisha Kansara: Yeah. This is on the biologics team. Firstly, congratulations to Dr. Udaya Bhaskar on joining Shilpa Biologics. I would like the management to spend some time in highlighting the strategy of building a dedicated team in biologics division. We were able to clock around INR 150 crore of revenue. Now for us to scale this business from INR 150 crore to, let's say, INR 300 crore, INR 400 crore, I assume you would need the right kind of talent to work with Dr. Udaya Bhaskar and Mr. Madhav. What is the team-building strategy specifically on the biologics side?

Speaker #1: Last year, we were able to clock around ₹150 crore of revenue. And now, for us to scale this business from ₹150 crore to, let's say, ₹300–400 crore, I assume we would need the right kind of talent to work with Dr. Uday and Mr. Madhav.

Speaker #1: So what is the team building strategy specifically on the biologics side?

Speaker #4: So Krisha, I think it's something which is more of an operational question, which we can connect on later. But to give you an idea, we have a very strong team with diverse and wide experience.

Keshav Bhutada: Krisha, I think it's something which is more operational question, which we can connect later. To give you an idea, we have a very strong team of different experience and wide experience. Not only internal team, we are also engaging some very good consultants who have very good understanding of US and EU regulations. I think mix of that is something which will surely help us in our overall strategy, the plan, execution. I think further details on this, if required, you can connect to Monish further. Okay?

Speaker #4: And not only the internal team, we are also engaging some very good consultants who have a thorough understanding of US and EU regulations. So I think a mix of that is something which will surely help us in our overall strategy, planning, and execution.

Speaker #4: And I think for further details on this, if required, you can connect with Monisha. Okay?

Speaker #1: Sure, sure. And just on Jyoti Gautin, are we on track to introduce this before September this year in the European market?

Krisha Kansara: Sure. Just on rotigotine, are we on track to introduce this before September this year in the European market?

Speaker #4: So Krisha, I think there are many people waiting in the line. Sorry for that. So maybe you can come back on cue. It's okay.

Keshav Bhutada: Krisha, I think there are many people waiting in the line. Sorry for that. Maybe you can come back on queue.

Krisha Kansara: Sure.

Keshav Bhutada: Okay.

Krisha Kansara: Sure. Thank you.

Keshav Bhutada: Thank you.

Speaker #4: Thank you.

Operator 2: The next question is from the line of Yash Doshi from Unifi Capital. Please go ahead.

Operator: The next question is from the line of Yash Doshi from Unifi Capital. Please go ahead.

Speaker #2: The next question is from the line of Yash Doshi from Unifi Capital. Please go ahead.

Speaker #5: Yeah. Hi, manager. Congratulations on a good set of numbers. Regarding Nord UDCA, if you see quarter-on-quarter, in Q1 FY27, basically your domestic revenue has dipped a bit.

Yash Doshi: Yeah. Hi, Madhav. Congratulations for good set of numbers. Regarding NorUDCA, if you see quarter-on-quarter in Q1 FY27, basically your domestic revenue, that's dipped a bit. What's the exact reason for it? Because I think we launched 6 months ago, ideally the product should scale up, but that was a small blip.

Speaker #5: So is it what's the exact reason for it? Because I think we launched six months ago. So ideally, the product should scale up. But as a small blip?

Speaker #4: No, yes, it's not the small blip. If you see, I have again mentioned to everyone that this is not a product-level detail. So you are just seeing the total domestic sales, right?

Keshav Bhutada: No, Yash, it is not the small blip. If you see, I have again mentioned everyone that this is not a product-level detail. You are just seeing the total domestic sales, right? NorUDCA as a product, if you see historically and quarter on quarter is something some quarter someone will do more stocking, sometimes we will manufacture more, some quarter we will manufacture less based on the demand, based on the delivery schedule. I think that is not the right way of seeing the product. Overall, the product is doing good, that is what I can tell you.

Speaker #4: Nord UDCA as a product, if you see historically and quarter on quarter, is something where in some quarters someone will do more stocking. Sometimes we'll manufacture more.

Speaker #4: Some quarter we'll manufacture less based on the demand, based on the delivery schedule. I think that's not the right way of seeing the product.

Speaker #4: Overall, the product is doing well. That's what I can tell you.

Speaker #5: Understood. And another question was regarding the API division, which we grew at 16%, and it was led by your specialty CDMO. So I just wanted to check on that—was the growth more contributed by your normal innovative CDMO portfolio, or by the polymer division?

Yash Doshi: Understood. Another question was regarding the API division, which we grew at 16%, and it was led by your specialty CDMO. Just wanted to check in that was it more contributed by a normal innovative CDMO portfolio or the polymer division?

Speaker #4: Innovative CDMO.

Keshav Bhutada: Innovative CDMO.

Speaker #5: Oh, innovative CDMO. Yeah. And just last question, this quarter we onboarded two Japanese customers, right? I think it was late phase projects. So can we can you talk about the background of the clients, whether it's a big pharma or biotech?

Yash Doshi: Oh, innovative CDMO.

Keshav Bhutada: Yeah.

Yash Doshi: Just last question. This quarter we onboarded two Japanese customers, right? I think it is late-stage projects. Can you talk about the background of the clients, whether it's a big pharma or biotech, and what can be the opportunity size?

Speaker #5: And what could be the opportunity size?

Speaker #4: Yeah, I think I'll share more details on this in the upcoming call, because we have some confidentiality around the program.

Keshav Bhutada: Yeah. I think I'll tell you more details on this in the upcoming call, because we have some confidentiality on the program.

Speaker #5: Okay, understood. I'll join back the queue.

Yash Doshi: Okay, understood. I'll join back the queue.

Speaker #4: Yeah, thank you.

Keshav Bhutada: Yeah. Thank you.

Speaker #2: Thank you. The next question is from the line of Nikhil Upade from Simple. Please go ahead.

Operator 2: Thank you. The next question is from the line of Nikhil Upadhyay from Simpl. Please go ahead.

Operator: Thank you. The next question is from the line of Nikhil Upadhyay from Simpl. Please go ahead.

Speaker #3: Yeah, hi. Good afternoon. I hope I’m audible.

Nikhil Upadhyay: Yeah. Hi. Good afternoon. I hope I'm audible.

Speaker #4: Yes.

Keshav Bhutada: Yes.

Speaker #3: Yeah, congrats on a good set of numbers. Two questions. See, if I look at our—and one thing I should appreciate, the kind of details you put in your presentation is phenomenal.

Nikhil Upadhyay: Yeah. Congrats on a good set of numbers. Two questions. See, one thing I should appreciate the kind of details you put in your presentation, it's phenomenal. It gives a very good understanding of where we are going. One question on slide 12, if you look at it. On the API side, now we see that, if we track over the last four quarters, the number of programs on the specialty CDMO have increased significantly. Would it be right to say that the next level of growth from the API side would be more driven by the CDMO part of the business scaling up from where we are today? Should that be a right way to think about it? How many projects do you think will start getting commercial phase in 2027, 2028?

Speaker #3: It gives a very good understanding of where we are going. One question on slide 12: if we look at it on the API side now, we see that, and if we track over the last four quarters, the number of programs on the specialty CDMO has increased significantly.

Speaker #3: Would it be right to say that the next leg of growth on the API side would be more driven by the CDMO part of the business, scaling up from where we are today?

Speaker #3: Like, should that be the right way to think about it, or is it? And how many projects do you think will start getting into the commercial phase in 2027 or 2028?

Speaker #4: Yeah, your point is well taken. And yes, specialty CDMO will be a growth driver for us. Not only that, we have other oncology pipeline products and peptides as well.

Keshav Bhutada: Yeah, your point is well taken. Yes, specialty CDMO will be a growth driver for us. Not only that, we have other oncology pipeline peptides also. Yeah, specialty CDMO will be one of the leading drivers for us in the API division. Number of programs and the details around that, we don't disclose, so sorry for that. To give you a fair idea, we have almost three late-stage programs which will enter into commercialization next year.

Speaker #4: But yeah, specialty CDMO will be one of the leading drivers for us in the API division. The number of programs and the details around that, we don't disclose.

Speaker #4: So sorry for that. But to give you a fair idea, we have almost three late-stage programs which will enter into commercialization next year.

Speaker #3: Okay. And the second question is a little longer. See, if you look at our company, from 2018 to 2023-2024, we were in the investment phase in different segments: on biosimilars, on albumin, on API.

Nikhil Upadhyay: Okay. Second question is little longer. If you look at our company, from 2018 to 2023, 2024, we were in investment phase in different segments on biosimilar, on albumin, on API. The fruits of which we are now seeing over last two years and should continue. When you are thinking about investment today and looking at next three to five years, how are you thinking about the future investments and which would be the segments where you are putting most of your energy?

Speaker #3: And the fruits of which we are now seeing over the last two years, and should continue. Now, when you are thinking about investment today, and looking at the next three to five years, how are you thinking about future investments, and which would be the segments where you are putting most of your energy?

Speaker #4: Yeah, Nikhil, I think already the investments that we have made, if you see, in the last five years, right? We have still not even finished the utilization of that.

Keshav Bhutada: Yeah, Nikhil, I think already the investments, what we have done, if you see in last five years, right? We have still not even finished the utilization of that, we still feel that at least for next three years, we don't need any significant CapEx in some new investments like in biologic or in albumin, where we have already done lot of investment. I think that will take care of our growth in these divisions for the next years to come. As I mentioned already, like in the divisions where we feel capital is still required, like API and in some formulation, new molecules. There the investment we are continuing. We don't foresee any significant CapEx today. That is what we want to inform all our investors.

Speaker #4: And we still feel that, at least for the next three years, we don't need any significant capex in new investments like in biologics or in albumin, where we have already done a lot of investment.

Speaker #4: So I think that will take care of our growth in these divisions for the next years to come. And as I mentioned already, in the divisions where we feel capital is still required, like API and in some formulation new molecules, there the investment we are continuing.

Speaker #4: But we don't want to—we don't foresee any significant capex today. That is what we want. We want to inform all our investors.

Speaker #3: Yeah, that is one part on the capex. But on the R&D side, where are you putting most of your energy? Because on one side, we have our own specialty 505(b)(2) molecules and specialty molecules where we are doing the clinical trials.

Nikhil Upadhyay: Yeah, that is one part on the CapEx. On the R&D side, where are you putting most of your energy? Because one side we have our own speciality 505 [2] molecules and speciality molecules where we are doing the clinical trial. There is another part which is equally interesting, is the biologic CDMO and API CDMO, which is again, a strong growth engine for the whole industry. Between these two, how are you thinking about it? Like on the R&D investment, not on the CapEx investment.

Speaker #3: And there is another part which is equally interesting—the biologic CDMO and API CDMO—which is again a strong growth engine for the whole industry.

Speaker #3: So between these two, how are you thinking about it? Like, on the R&D investment—not on the CapEx investment.

Speaker #4: In the R&D investment, each division has its own R&D budget, which we will continue to allocate every year. How much in each division, etcetera, that's where there is a lot of detail which we don't disclose.

Keshav Bhutada: In the R&D investment, each division has their own R&D budget, which we will continue to do every year. How much in each division, et cetera, that's a lot of detail which we don't inform. To give you a fair idea, our investments in R&D continue on pipeline, we will continue to add several new products and also advance existing products.

Speaker #4: But to give you a fair idea, our investments in R&D continue on pipeline, and we will continue to add several new products and also advance existing products.

Speaker #3: Sure. I'll come back in with this.

Nikhil Upadhyay: Sure. I'll come back in with you.

Speaker #4: Yeah, thank you.

Keshav Bhutada: Yeah. Thank you.

Speaker #2: Thank you. The next question is from the line of Rakesh Mehta from Elite Bridge Capital. Please go ahead.

Operator 2: Thank you. The next question is from the line of Rakesh Mehta from Elara Bridge Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Rakesh Mehta from Elara Bridge Capital. Please go ahead.

Speaker #5: Hi, good evening. Thank you for the opportunity. First of all, congratulations, team, for the fabulous set of numbers. I have two queries. One is, biological business contributed just 11%.

Rakesh Mehta: Hi. Good evening. Thank you for the opportunity. First of all, congratulations team for the fabulous set of numbers. I have two queries. One is, biological business contributes just 11%, that is close to INR 52 crores. What would be the growth trajectory going forward? This is one. Should I go for next question?

Speaker #5: That is close to ₹52 crores. What would be the growth trajectory going forward? This is one. Should I go for the next question?

Speaker #3: As you mentioned—right—see, the biologics business, from a growth trajectory perspective, should witness significantly higher growth purely because it's on a smaller base.

Alpesh Dalal: As you mentioned, right? Biologics business from a growth trajectory perspective should witness a significantly higher growth purely because it's on a smaller base and also a lot of future lies in the biologics side. I would reiterate that we would not be in a position to provide exact numbers, the kind of growth and all, because we don't provide that kind of a guidance. The growth potential of biologics is significantly higher, especially because it's a new area and it's on a lower base, and also the industry is moving more towards biologics, so it provides that additional growth opportunity.

Speaker #3: And also, a lot of the future lies on the biologics side. Again, I would reiterate that we would not be in a position to provide exact numbers, or the kind of growth and all, because we don't provide that kind of guidance.

Speaker #3: But the growth potential of biologics is significantly higher, especially because it's a new area and it's on a lower base. Also, the industry is moving more towards biologics.

Speaker #3: So, it provides that additional growth opportunity.

Speaker #5: Okay. And what would be the contribution from India and from business outside India, in case you are planning anything about biologics?

Rakesh Mehta: Okay. What would be the contribution India and the outside India business in case if you are planning anything about biologics?

Speaker #3: In biologics? See, in biologics, a large portion of our CDMO and other work that we are getting is from outside of India. In India, we do have our own pipeline and that will also take shape.

Alpesh Dalal: In biologics? In biologics, large portion of our CDMO and other work that we are getting is from outside of India. In India, we do have our own pipeline, and that will also take shape. A larger portion is expected to come from international markets.

Speaker #3: But a larger portion is expected to come from international markets.

Speaker #5: Okay, thanks. Second query is: Current EBITDA is around 29%. First of all, how sustainable is it? And what would be the trajectory going forward?

Rakesh Mehta: Okay, thanks. Second query. Current EBITDA is around 29%. First of all, how it is sustainable and what would be the trajectory going forward, in case if you can throw some light.

Speaker #5: In case you can throw some light.

Speaker #3: So, see, this EBITDA margin—in fact, only a couple of quarters back, two or three quarters back—I had mentioned that this is obviously on a slightly better side.

Alpesh Dalal: See, this EBITDA margin, in fact, I had only a couple of two, three quarters back, I had mentioned that this is obviously on a slightly better side and we might see some change happening there, but we have been consistently able to maintain that around 30% levels. There is a constant performance showing that we are in that particular range and region. At this stage, I wouldn't want to get hopes very high. We would like to be conservative and over-deliver. We would put margins to remain in similar range.

Speaker #3: And we might see some change happening there. But we have consistently been able to maintain that around 30% level, so there is a constant performance showing that we are in that particular range.

Speaker #3: And region. At this stage, I wouldn't want to get hopes very high. We would like to be conservative and overdeliver, so we would expect margins to remain in a similar range.

Speaker #5: Okay. Thanks. That's Vishesh.

Rakesh Mehta: Okay, thanks. That's sufficient.

Speaker #2: Thank you. The next question is from the line of Deepak Sharma and Inderchal Investor. Please go ahead.

Operator 2: Thank you. The next question is from the line of Deepak Sharma, Individual Investor. Please go

Operator: Thank you. The next question is from the line of Deepak Sharma, Individual Investor. Please go

Speaker #5: Yeah, hi. Congratulations to the management for the excellent performance. My question is: CDMO has been one of the major growth factors for the company.

Deepak Sharma: Yeah. Hi. Congratulations to the management for the excellent performance. My question is, CDMO has been one of the major growth factors for the company. How do the management see CDMO journey in next three years? Second question is from Unicycive Therapeutics drug. What is the next step and what are the timelines for the drug?

Speaker #5: So, how does the management see the CDMO journey over the next three years? And the second question is on Unisys Drug. What are the next steps and what are the timelines for the drug?

Speaker #4: Yeah, Deepak, like you rightly mentioned, CDMO remains a very focused business for us as a company. And if you see, even in India today, if you count, right, there are not many companies who have the capability of doing small molecules, doing large molecules, doing API, doing payload, doing linker, doing conjugation, doing ADCs, doing mAbs, right?

Keshav Bhutada: Deepak, like you rightly mentioned, CDMO remains a very focused business for us as a company. If you see even in India today, if you count right, there are not many companies who has the capability of doing small molecule, doing large molecule, doing API, doing payload, doing linker, doing conjugation, doing ADCs, doing mAbs, right? The way our company is built is we have a very strong integrated capabilities. Usually we get customers who want one-stop solutions. We remain very confident and positive that CDMO as a business will continue to grow. Already many of the programs what we are working, many of them still are in early stage. Some are in phase I, right? As and when the program will advance, of suppose more than 25 programs, even 10 programs go commercial, we can see a sizable CDMO business. Okay?

Speaker #4: So the way our company is built is we have very strong integrated capabilities. Usually, we get customers who want one-stop solutions. So we remain very confident and positive that CDMO as a business will continue to grow.

Speaker #4: And already, many of the programs that we are working on, many of them are still in early stages. Some are in Phase 1, right? As and when the program advances—suppose, of more than 25 programs, even if 10 programs go commercial—

Speaker #4: We can see a sizable CDMO business, okay? And the second question was, yeah, on the Unisys part. See, on the Unisys part, because it's a partner program, it's already there in the public domain.

Keshav Bhutada: Second question was?

Deepak Sharma: UniCitive.

Keshav Bhutada: Yeah. On the Unicycive part, because it's a partner program, it's already there in the public domain. They have mentioned that they have received the CRL letter from US FDA and they plan to refile in Q3. I think that's the update which we also have in the public domain.

Speaker #4: They have mentioned that they have received the CRL letter from USFDA, and they plan to refile in Q3. I think that's the update which we also have in the public domain.

Deepak Sharma: Okay. Thank you.

Speaker #4: Thank you.

Keshav Bhutada: Thank you.

Speaker #2: Thank you. The next question is from the line of Tushar Bora from MK Ventures. Please go ahead.

Operator 2: Thank you. The next question is from the line of Tushar Bohra from MK Ventures. Please go ahead.

Operator: Thank you. The next question is from the line of Tushar Bohra from MK Ventures. Please go ahead.

Speaker #5: Yeah. Thank you for the opportunity, and congratulations to the management for a good set of numbers. There have already been a lot of questions on CDMO.

Tushar Bohra: Thank you for the opportunity and congratulations to the management for a good set of numbers. There have already been a lot of questions on CDMO, but just maybe a couple more on the same theme. Just looking at your presentation, the slide highlighting CDMO capabilities vis-à-vis peers, right? When we talk of Indian CDMOs, most of these are materially larger than Shilpa's CDMO business today. Also have several years of both capacity and capability investments. Just want to understand, while we are benchmarking against these companies favorably today, do you think that we have similar ambition and we have the wherewithal to get to, let's say, typically most of these companies are upwards of 800 to 1,000 crore revenue comfortably.

Speaker #5: But just maybe a couple more on the same theme. Just looking at your presentation, the slide highlighting CDMO capabilities, which are with peers. Right?

Speaker #5: When we talk of Indian CDMOs, most of these are materially larger than Shilpa's CDMO business today. They also have several years of both capacity and capability investments.

Speaker #5: Right? So just want to understand, while we are benchmarking against these companies favorably today, do you think that we have similar ambition and that we have the wherewithal to get to, let's say—so typically, most of these companies are upwards of ₹800 to ₹1,000 crore revenue comfortably.

Speaker #5: So, do we feel that this is the kind of scale-up that is possible for Shilpa? Or will we need specific investments into either capacity or capability building to really achieve the full potential?

Tushar Bohra: Do we feel that is the kind of scale-up that is possible for Shilpa, or we will need specific investments into either capacity or capability building to really achieve the full potential? Second, when we talk of CDMO, we are still talking API CDMO, but we have a separate biologics CDMO division as well, and we have CMO activity in formulation and specific niches like ADCs and peptides. How is it that you're approaching the entire business development part on CDMO? Are you approaching it as one single division across range of capabilities, or each division has its own fund for building the business?

Speaker #5: And second, when we talk of CDMO, we are still talking about API CDMO. But we have a separate biologics CDMO division as well. And we have CMO activity in formulation and specific niches like ADCs and peptides.

Speaker #5: So, how is it that you're approaching the entire business development part on CDMO? Are you approaching it as one single division across a range of capabilities?

Speaker #5: Or does each division have its own funnel for building the business?

Speaker #3: No, Tushar, I think

Keshav Bhutada: Tushar, I think we have never said as a company, only API. We are also promoting and I have told in my talk also that we have already several CDMO programs in biologics also. Coming to the size, yes, we feel it is sizable business. How much the value we don't want to disclose, but to just give you a fair idea, today in Shilpa, in the overall Shilpa group, we have only one product which is commercial on the CDMO side. We have more than 25 such NCE programs in various stages of development. I think as and when these molecule advance, you will see the growth trajectory accordingly. Coming to business development side, we have in respective division, respective people who promote and get the projects for us. I think that will remain continuing, and we have decent budget allocated for each of the division.

Speaker #4: We have never said, as a company, only API. We are also promoting, and I have told in my talk also, that we already have several CDMO programs in the biologics side. Yes, we feel it is a sizable business.

Speaker #4: We don't want to disclose the value, but just to give you a fair idea, today in Shilpa, in the overall Shilpa group, we have only one product which is commercial on the CDMO side.

Speaker #4: We have more than 25 such NC programs in various stages of development. I think as and when these molecules advance, you will see the growth trajectory accordingly.

Speaker #4: And coming to the business development side, we have, in the respective divisions, respective people who promote and get the projects for us. I think that will continue.

Speaker #4: And we have a decent budget allocated for each of the divisions.

Speaker #5: And on the initiative that you mentioned on the NC programs, so what is the ramp-up possibilities you're expecting over the next three years? How many of these you mentioned three late-stage programs, I think.

Tushar Bohra: On the initiative that you mentioned on the NCE programs. What is the ramp-up possibilities you're expecting over the next 3 years? You mentioned 3 late-stage programs, I think. How many of these over the next 3 years will mature, potentially?

Speaker #5: How many of these, over the next three years, will mature? Potentially?

Speaker #4: It depends on our partner, because these programs are not run by us, right? But I think, as of today, with the visibility we have for next year, we have three NC programs which will enter the commercial phase.

Keshav Bhutada: It depends on our partner because these programs are not run by us. I think as on today, what visibility we have for next year, we have three NCE programs which will enter commercial phase.

Speaker #5: And just one last question on the same theme. We have, in a lot of these cases on the CDMO contracts, struck very interesting agreements where we've invested in these smaller biotechs, smaller companies.

Tushar Bohra: Just one last on the same theme. We have, in a lot of these cases on the CDMO contracts, struck very interesting contracts where we've invested in these smaller biotechs, smaller companies. Possibly there's an angle of even a profit share or a component that is over and above the supply contract. Is it fair to assume that the outcome for Shilpa in this case would be materially higher than what a normal CDMO would realize from these programs if some of them do work?

Speaker #5: So possibly there's an angle of even a profit share or a component that is over and above the supply contract. So, is it fair to assume that the outcome for Shilpa in this case would be materially higher than what a normal CDMO would realize from these programs?

Speaker #5: If some of them do work?

Speaker #4: Yes, you are right.

Keshav Bhutada: Yes, you are right.

Speaker #5: Okay, thank you so much. We'll join back in queue.

Tushar Bohra: Okay. Thank you so much. We'll join back in queue.

Speaker #4: Thank you.

Keshav Bhutada: Thank you.

Speaker #2: Thank you. The next question is from the line of Sumit Gupta from Antique Stock Broking. Please go ahead. Sorry to interrupt, Mr. Gupta, we are not able to hear you well.

Operator 2: Thank you. The next question is from the line of Sumit Gupta from Antique Stock Broking. Please go ahead. Sorry to interrupt, Mr. Gupta. We are not able to hear you well. Please use a microphone while asking your question.

Operator: Thank you. The next question is from the line of Sumit Gupta from Antique Stock Broking. Please go ahead. Sorry to interrupt, Mr. Gupta. We are not able to hear you well. Please use a microphone while asking your question.

Speaker #2: Please use a microphone while asking your question.

Speaker #5: Hello. It is fine?

Sumit Gupta: Hello, is it fine?

Speaker #2: Please go ahead with the question.

Operator 2: Please go ahead with the question.

Operator: Please go ahead with the question.

Speaker #5: Yeah, hi. I'm also on a great set of tables. Sir, one thing regarding the gross margin. So what is the two things such as what is driving the gross margin?

Sumit Gupta: Hi. I'm just on a great set of tables. One thing regarding the gross margin. Just two, three questions. What is driving the gross margin? Secondly, with respect to the like one key last year, gross margin was around 75%. However, I think it was largely due to the Ryan deal. Except that, what would be the gross margin last year?

Speaker #5: And secondly, with respect to one thing last year, gross margin was around 75%. However, I think it was higher due to the Orion deal.

Speaker #5: So, ahead of that, what would be the gross margin last year?

Speaker #4: So, Sumit, I think we don't disclose product-level margins. But I think, to give you a fair idea, on the gross margin side, right, the kind of product sales that we will have this year and the upcoming launches, which I have mentioned in my speech, all these are complex products, like the Rotigotine transdermal patch. It is a very complex product; very few players are in the market.

Keshav Bhutada: Sumit, I think we don't disclose product level margins. I think to give you a fair idea on the gross margin, the kind of product sales what we will have in this year and upcoming launches, which I mentioned in my speech, all these are complex products like rotigotine transdermal patch is a very complex, very few generic players are in the market. ABRAXANE is again a very complex product. We have such complex products which will be launched every year. Also our existing pipeline like NorUDCA, which is NCE product. We have which are again a very different product with no generics. I think all of these are driving our gross margins. How much the percentage and all the details, I think you can connect to Monish later for the more details.

Speaker #4: Abraxane is, again, a very complex product. We have such complex products which will be launched every year. Also, in our existing pipeline, like Nor-UDC, which is an NC product, we have 5580s, which are, again, very different products with no generics.

Speaker #4: I think all of these are driving our gross margins. As for the percentage and all the details, I think you can connect with Monish later.

Speaker #4: For the more details.

Speaker #5: And just to give some idea around the slight dip that we have seen in the gross profit margin, that also has to do with, because of the recent political situation globally, the raw material prices and all have gone up.

Alpesh Dalal: Just to give some idea around the slight dip that we have seen in the gross profit margin, that also has to do with because of the recent political situation globally, the raw material prices and all have gone up, and that ends up impacting margins at least for the time being. That has been one of the reasons for a slight dip that you have seen on gross margin front.

Speaker #5: And that ends up impacting margins, at least for the time being. So, that has been one of the reasons for the slight dip that you have seen on the gross margins front.

Speaker #5: Understood, sir. So heads of that, so when the things normalize, so in that case, what would have been the gross margin? Like any?

Sumit Gupta: Understood, sir. Except that, when the things normalize, in that case, what would have been the gross margin? Like

Speaker #4: It's difficult to quantify that way. It's difficult to quantify that way, Sumit, because there are times a part of it you are able to pass on to the customer, not the full piece.

Alpesh Dalal: It's difficult to quantify that risk, Sumit, because there are times a part of it you are able to pass on to the customer, not the full piece. It changes the entire equation depending on where we stand at a point in time.

Speaker #4: So it changes the entire equation depending on where we stand at a point in time.

Speaker #5: But you are able to pass on partially.

Sumit Gupta: You are able to pass on partially.

Speaker #4: Partially, yes.

Alpesh Dalal: Partially, yes.

Speaker #5: Understood, sir. Thank you. All the best.

Sumit Gupta: Understood, sir. Thank you. All the best.

Speaker #4: Thank you.

Alpesh Dalal: Thank you.

Speaker #2: Thank you. The next question is from the line of Nishant from Grudon. Please go ahead.

Operator 2: Thank you. The next question is from the line of Nishant from Growthon. Please go ahead.

Operator: Thank you. The next question is from the line of Nishant from Growthon. Please go ahead.

Nishant: Hello, am I audible?

[Analyst] (Growthon): Hello, am I audible?

Speaker #5: Hello. Am I audible?

Speaker #4: Yes, please.

Alpesh Dalal: Yes, please.

Speaker #5: My question is related to a new tech regime which we have followed under HM200A. In the Income Tax Act, there was a provision that we can claim deduction with respect to research and development in scientific research and development—deduction to the extent of 100%, even on capital goods.

Nishant: My question is related to the new tax regime which we have followed under HM 200A. In the erstwhile Income Tax Act, there was a provision that we can claim deduction with respect to research and development, in scientific research and development deduction to the extent of 100%, even on the capital goods. Why we have forgone that, and we have adopted the new regime? Because we are in the research and development segment also. There might be a separate new unit or is it something like we have incorporated an entity in research and development and we are following that 15% tax? The second point is the US notification regarding generic drugs. I have seen that 45 crore is being exported from Shilpa to US. There is a notification that they will be charging, basically tariff at the rate of 100%.

[Analyst] (Growthon): My question is related to the new tax regime which we have followed under HM 200A. In the erstwhile Income Tax Act, there was a provision that we can claim deduction with respect to research and development, in scientific research and development deduction to the extent of 100%, even on the capital goods. Why we have forgone that, and we have adopted the new regime? Because we are in the research and development segment also. There might be a separate new unit or is it something like we have incorporated an entity in research and development and we are following that 15% tax? The second point is the US notification regarding generic drugs. I have seen that 45 crore is being exported from Shilpa to US. There is a notification that they will be charging, basically tariff at the rate of 100%.

Speaker #5: So why have we forgone that and adopted the new regime? Because we are in the research and development segment also. So, maybe there might be a separate new unit, or is it something like we have incorporated an entity in research and development and we are following that 15% tax?

Speaker #5: And the second point is the US notification regarding generic drugs. Since there was a, I have seen that ₹45 crore is being exported from Shilpa to the US.

Speaker #5: So there is a notification that they will be charging a basic tariff at the rate of 100%. So, are we planning to acquire any unit in the US so that we can counter that tariff rate?

Nishant: Are we planning to acquire any unit in US so that we can counter that tariff rate?

[Analyst] (Growthon): Are we planning to acquire any unit in US so that we can counter that tariff rate?

Speaker #4: Yeah. So, on the first question around the new regime—see, as you rightly pointed out, this 100% tax exemption benefit is available for R&D capex.

Alpesh Dalal: Yeah. On the first question around the new regime. See, as you rightly pointed out, this 100% tax exemption benefit is available for R&D CapEx. R&D, we already have our fully functional R&D units across our divisions. We are not expecting any significant R&D related CapEx coming up. Whatever is our CapEx around our revenue R&D spend, that anyways gets fully charged to P&L in any case, so we get the tax benefit over there. What we lose out by not getting into the new regime is the accumulated MAT credit that we have got in Shilpa Medicare that we have to forego if we don't get into the new regime. Also there is-

Speaker #4: The R&D we already have are fully functional R&D units across our divisions. So, we are not expecting any significant R&D-related capex coming up. Whatever is our capex around our revenue R&D spend, that anyway gets fully charged to P&L in the case.

Speaker #4: So we get the tax benefit over there. What we lose out by not getting into the new regime is the accumulated MAT credit that we have got in Shilpa Medicare, which we have to forego if we don't get into the new regime.

Speaker #4: Also, there is.

Speaker #5: I think the additional depreciation will also be foregone in this case.

Nishant: I think further additional depreciation will also be foregone in that case.

[Analyst] (Growthon): I think further additional depreciation will also be foregone in that case.

Speaker #4: There is no additional depreciation that comes up in this particular change. No, no, there is no additional depreciation. But it is something which only becomes a timing difference and nothing more than that.

Alpesh Dalal: There is no additional depreciation that comes up. In this particular case-

Nishant: On plant and machinery.

[Analyst] (Growthon): On plant and machinery.

Alpesh Dalal: No, there is no additional depreciation, but it is something which only becomes a timing difference and nothing more than that. Even the CapEx related R&D depreciation that you get is a timing difference. The difference in the tax rate is significant. It changes roughly by 9.75% or so. That swing is big. Also, we are able to utilize the MAT credit to the extent of 25% of tax. Effective tax rate comes down by another 6% to 6.5%.

Speaker #4: So, even the capex-related R&D depreciation that you get is a timing difference. But the difference in the tax rate is significant. It changes roughly by 9.75% or so.

Speaker #4: So that swing is big. Also, we are able to utilize the MAT credit to the extent of 25% of tax, so the effective tax rate comes down by another 6 to 6.5%.

Speaker #5: So, what you stated is that 25.17% is being reduced by the match credit to the extent of 25%, and that comes out to around 19%. And further, from the impression of what you have stated, there is no further capex.

Nishant: You stated that 25.17% is being reduced by the MAT credit to the extent of 25%, and that comes out around 19%. Further, from the impression what you have stated is that there is no further CapEx. All the development will be met with the existing capacity through additional production. Right?

[Analyst] (Growthon): You stated that 25.17% is being reduced by the MAT credit to the extent of 25%, and that comes out around 19%. Further, from the impression what you have stated is that there is no further CapEx. All the development will be met with the existing capacity through additional production. Right?

Speaker #5: So, all the development will be matched with the existing capacity through additional production, right?

Speaker #4: Yeah. So there isn't—so as I say, there are certain investments that happen, but not significant enough for us to forego the tax benefit that we get over here.

Alpesh Dalal: Yeah. As I said, there are certain investments that happen, but not significant for us to forego the tax benefit that we get over here.

Speaker #5: Yeah. The second question was related to the US threat of tariffs. So how will we counter that? Because ₹45 crore is the turnover which we are getting from the US, right?

Nishant: The second question was related with US threat of tariff. How we will be counter-feeding that? Because INR 45 crore is the turnover which we are getting from US, right?

[Analyst] (Growthon): The second question was related with US threat of tariff. How we will be counter-feeding that? Because INR 45 crore is the turnover which we are getting from US, right?

Speaker #4: No, see, also historically on the product side, what we sell in the US, right, we are not selling any me-too generics. All our products are complex products which have some kind of differentiation, okay?

Keshav Bhutada: No. If you see here historically also on the product side, what we sell in US, right? We are not selling any me-too generics. All our products are complex products which have some kind of differentiation. Okay? For us, materially, it doesn't have very big impact. Saying so, evaluating on the US manufacturing facilities, next steps on that, I think that all the industry in India is still monitoring how the Trump regime will behave on that, what are the terms and conditions. I think once we have more clarity on that, it will be a right decision to move on that next steps.

Speaker #4: So for us, materially, it doesn't have a very big impact. But, having said that, in evaluating the US manufacturing facilities, the next steps on that—I think that all of the industry in India is still monitoring how the Trump regime will behave on that, what are the terms and conditions.

Speaker #4: I think once we have more clarity on that, then it will be the right decision to move on to the next steps.

Speaker #5: Thank you, sir.

Nishant: Thank you so much.

[Analyst] (Growthon): Thank you so much.

Speaker #4: Absolutely. To give you a very clear picture, Shilpa, as a company, we are not selling any 'me-too' generics in the U.S., okay? All our products are complex.

Keshav Bhutada: Lastly, to give you very clear picture, Shilpa as a company, we are not selling any me-too generic in US. Okay? All are complex.

Speaker #5: No, it's not about that in general. It's about the strategy, because under one situation, they impose a tariff threat that they will be imposing on exports from India.

Nishant: No, it's not about that generic, it's about the strategy because under one situation they impose a tariff threat that they will be imposing on export from India under generic, they will be coming with the future that they will be imposing tariff on all the matters. It's about how we can strategize the same thing and what is the point of view of company. Thank you so much for addressing my concern. Thank you and congratulations on the numbers.

[Analyst] (Growthon): No, it's not about that generic, it's about the strategy because under one situation they impose a tariff threat that they will be imposing on export from India under generic, they will be coming with the future that they will be imposing tariff on all the matters. It's about how we can strategize the same thing and what is the point of view of company. Thank you so much for addressing my concern. Thank you and congratulations on the numbers.

Speaker #5: Under generic, they will be coming with the future that they will be imposing tariffs on all the masses. And so it's about how we can strategize the same thing and what is the point of view of the company.

Speaker #5: Thank you so much for addressing my concern. Thank you, and congratulations on the numbers.

Speaker #4: Yeah. Thank you.

Keshav Bhutada: Yeah. Thank you.

Speaker #2: Thank you. The next question is from the line of Anubhav Goyal from Cosma Ventures. Please go ahead.

Operator 2: Thank you. The next question is from the line of Anubhav Goel from Cosma Ventures. Please go ahead.

Operator: Thank you. The next question is from the line of Anubhav Goel from Cosma Ventures. Please go ahead.

Speaker #5: Sure. Congratulations on a good set of numbers for a very broad base. So just one question. Sir, regarding the strategy of taking stakes in companies to provide CDMO services, if you can just elaborate—what is our thought process, what is driving this, and can we expect many more like this in the future?

Anubhav Goel: Sir, congratulations on a good set of numbers. Very broad-based. Just one question. Sir, the strategy of taking stakes in companies to provide CDMO or services, if you can just elaborate here, what is our thought process? What is driving this? Can we expect many more like this in the future? Is this something we have to do at this stage to grow this business? Just where can this figure go to in terms of overall spends?

Speaker #5: Is this something we have to do at this stage to grow this business? And just where can this trigger go in terms of overall spends?

Speaker #4: So, Anubhav, that's a completely different confidential strategy on our side. I think we are not interested in sharing any more details on this, but I can tell you this is a very unique strategy which we have.

Keshav Bhutada: Anubhav, that's completely a different confidential strategy on our side. I think we are not interested to inform any more details on this. I can tell you this is a very unique strategy which we have, and we would inform more details really if needed, if the size of such deals increase in future.

Speaker #4: We would provide more details, if needed, should the size of such deals increase in the future.

Speaker #5: But sir, fair enough. So, is it fair to say we can expect more deals like this?

Anubhav Goel: That's fair enough. Sir, is it fair to say we can expect more deals like this?

Speaker #4: Yes, it depends on the kind of programs we get, right? We don't invest. We get many programs where investment opportunities come, but we as a company are very selective.

Keshav Bhutada: Yeah, it depends on the kind of programs we get, right? We don't invest, we get many programs where investment opportunities come. We as a company, we are very selective. It should fall in our therapy, it should fall in our corporate strategy, only then we take interest.

Speaker #4: It should fall in our therapy. It should fall in our corporate strategy only; then we take interest.

Speaker #5: Okay, got it. Thank you so much.

Anubhav Goel: Okay, got it. Thank you, sir.

Speaker #4: Yeah. Thank you.

Keshav Bhutada: Yeah. Thank you.

Speaker #2: Thank you. The next question is from the line of Akhilesh Patak from Smart Sync Services. Please go ahead.

Operator 2: Thank you. The next question is from the line of Akhilesh Pathak from Smartsync Services. Please go ahead.

Operator: Thank you. The next question is from the line of Akhilesh Pathak from Smartsync Services. Please go ahead.

Speaker #5: Hello. Good evening, everyone. Thanks a lot for giving the opportunity. Congratulations on great set of numbers that you have. I see 11x improvement in the US.

Akhilesh Pathak: Hello. Good evening, everyone. Thanks a lot for giving the opportunity. Congratulations on great set of numbers that you have. I see 11x improvement in the US, but there is a considerable downtrend in Europe numbers from INR 77 odd crore to INR 57 crore. What would be the reason, and how we want to capture that territory again in Europe?

Speaker #5: But there is a considerable downtrend in Europe numbers from 77-odd crore to 57 crore. What would be the reason, and how do we want to capture that territory again in Europe?

Speaker #4: No, Akhilesh, I think if you see Shilpa as a company, the way we sell products in the end market—these are mainly tender products.

Keshav Bhutada: No, Akhilesh, I think if you see Shilpa as a company, the way we sell products in the end market, these are mainly tender products. In Europe business, we don't see any dip. It's just that there is a variation on quarter-on-quarter supplies. Some quarters we have more supply, some quarters we have less supplies. That's the only reason. There is no other reason. The performance of Europe business, the product and market is really doing good for us.

Speaker #4: So, in the Europe business, we don't see any dip. It's just that there is a variation in quarter-on-quarter supplies—some quarters, we have more supplies.

Speaker #4: Some quarters, we have less supplies, so that's the only reason. There is no other reason. The performance of our Europe business, the product, the end market is really doing good for us.

Speaker #5: Okay, great. I have another question on the capacity utilization of the various plants that we have in Bangalore, the Chilra and Dadwar. What kind of capacity utilization do we have currently?

Akhilesh Pathak: Okay, great. I have another question on the capacity utilization of various plants that we have in Bangalore, at Raichur and Dadra. What kind of capacity utilization we have currently? Because there was a comment that they are underutilized as per the gross block that we have incurred.

Speaker #5: Because there was a comment that they are underutilized as per the cross-block that we have incurred.

Speaker #4: Yeah, I think for that you can connect with Monish, our IR head. I think he'll be able to give you segmental utilization details.

Keshav Bhutada: Yeah, I think for that you can connect to Monish, our IR head. I think he will be able to give you segmental utilization details.

Speaker #5: Okay, great. Thank you. Thank you very much.

Akhilesh Pathak: Okay, great. Thank you. Thank you very much.

Speaker #2: Thank you. The next question is from the line of Amish Kanani from Novize Investment Managers. Please go ahead.

Operator 2: Thank you. The next question is from the line of Amish Kanani from Norwest Venture Partners. Please go ahead.

Operator: Thank you. The next question is from the line of Amish Kanani from Knowise Investment Managers. Please go ahead.

Speaker #5: Yeah. Hi, sir. Sir, congrats on a really good set of numbers and a quarter where gross margins were dipping, but still, you know, we maintained our operating margins.

Amish Kanani: Yeah. Hi, sir. Sir, congrats on a really good set of numbers and a quarter where gross margins were dipping, but still, we maintained our operating margins. Really operating leverage is kicking in. Also congrats on a credit rating upgrade, sir. Sir, partly my question was about this capitalization that was asked by the previous participant. Maybe even I'll take it offline with Monish. Sir, if you can give us some sense, we do disclose ROCE, the new businesses. We can approximate the amount of gross block or capital employed that we are allocating to these two new divisions, which are also not yet getting utilized. If you can give us a flavor there of what should be the, say, asset turnover and maybe an EBITDA margin or gross margin level. Is it in line with company as blended margins?

Speaker #5: So really, operating leverage is kicking in. And also, congrats on the credit rating upgrade, sir. So, my part of the question was about this capitalization that was asked by the previous participant.

Speaker #5: Maybe I'll even take it offline with Monish. But sir, if you could give us some sense—we do disclose ROC, excluding the new businesses.

Speaker #5: So we can approximate the amount of gross flow for capital employed that we are allocating to these two new divisions, which are also not yet being utilized.

Speaker #5: So, if you can give us some flavor there of what should be the, say, asset turnover, and maybe an EBITDA margin or gross margin level—is it in line with the company's blended margins?

Speaker #5: If you can give us some sense—and should it be in FY28 or FY29—some flavor will be helpful for us to model, sir.

Amish Kanani: If you can give us some sense. Should it be in the year FY28 or FY29? Some flavor will be helpful for us to model, sir.

Speaker #4: Yeah, yeah. I think one thing I want to inform all our investors—to answer this question, I'll answer a bit differently. As a company, if you see, we have a pipeline in formulation, in biologics, in new biological entity albumin, right?

Keshav Bhutada: See, I think one thing I want to inform all our investors, to answer this question, I will answer a bit differently. As a company, if you see, we have a pipeline in formulation, in biologics, in new biological entity, albumin, and API business, which obviously everyone is aware. If you see, like in biosimilar itself, you can see in our investor presentation, we have several biosimilars as well as ADC program. If you see today, we only partnered for only one biosimilar in Europe till date. We have such eight molecules for which we still have to do the partnering. We have to take the product to market, then the commercial revenues will come. You can imagine the delta of ROC which this asset can generate. Similarly, on the albumin front, where we have already invested from last several years. We have finished the preclinical studies.

Speaker #4: And API business, which obviously everyone is aware of. But if you see, like in biosimilars itself, you can see in our investor presentation, we have several biosimilar as well as ADC programs, right?

Speaker #4: If you see today, we have only partnered for one biosimilar in Europe to date. We have eight such molecules for which we still have to do the partnering.

Speaker #4: We have to take the product to market; then the commercial revenues will come. So, you can imagine the delta of ROC that this asset can generate.

Speaker #4: Similarly, on the albumin front, where we have already invested for the last several years, we have finished the preclinical studies, we have finished Phase 1 studies, and we are starting a Phase 3 study globally.

Keshav Bhutada: We have finished phase I studies. We are starting phase III study globally. For this, already we have partnered in end market like Europe, which is one of the largest market for albumin. You can imagine the kind of commercial ROC which this asset can generate. I think with this, I will leave the points open because segmental-wise ROC, the details, I think you can connect to Monish, as I mentioned previously, and he can explain you further on.

Speaker #4: And for this, we have already partnered in end markets like Europe, which is one of the largest markets for albumin. So you can imagine the kind of commercial ROC that this asset can generate.

Speaker #4: I think with this, I will leave the points open because, segmental-wise—ROC, the details—I think you can connect to Monish, as I mentioned previously, and he can explain to you further.

Speaker #5: Yeah. I can just add on saying that, you know, from being ROC negative, you know, about a year, year and a half back, these divisions have become ROC positive a bit, you know, at a lower level still because of the higher asset base that it has got.

Alpesh Dalal: Yeah. I can just add on saying that from being ROC negative about a year and a half back, these divisions have become ROC positive, albeit at a lower level still because of the higher asset base that it has got. As Keshav was mentioning, the potential to improve the ROC over there is significant. I had obviously mentioned what the blended ROC in my opening speech and what the adjusted ROC is. That can also give you some flavor as to what kind of delta could be there.

Speaker #5: But as Kesha was mentioning, the potential to improve the ROC over there is significant. And I had obviously mentioned what the blended ROC is in my opening speech.

Speaker #5: And what the adjusted ROC is. So that can also give you some flavor as to, you know, what kind of delta could be there.

Speaker #5: Yes, yes. Appreciate that. Thanks a lot, and always.

Amish Kanani: Yes. Appreciate that. Thanks a lot and all the best.

Speaker #4: Thanks so much.

Alpesh Dalal: Thanks, Amish.

Speaker #2: Thank you. The next question is from the line of Ajay from Niveshan. Please go ahead.

Operator 2: Thank you. The next question is from the line of Ajay from Nipison. Please go ahead.

Operator: Thank you. The next question is from the line of Ajay from Nipison. Please go ahead.

Speaker #5: All right. Thanks for the opportunity. Am I audible?

Ajay: Thanks for the opportunity. Am I audible?

[Analyst] (Nipison): Thanks for the opportunity. Am I audible?

Speaker #4: Yes, please.

Alpesh Dalal: Yes, please.

Speaker #5: All right, sir. I wanted to understand the economics of the license and service income line. For the last couple of years, we have been witnessing a good chunk of our revenue from that side.

Ajay: Sir, I wanted to understand the economics of the license and service income line. Like for last couple of years, we have been witnessing a good chunk of our revenue from that side. Wanted to understand, what sort of margin does it carry, and does it flow straight away to the P&L or the development costs are already expensed in it? If you can split this license or service income under the formulation or API, CVM apart, that will be helpful.

[Analyst] (Nipison): Sir, I wanted to understand the economics of the license and service income line. Like for last couple of years, we have been witnessing a good chunk of our revenue from that side. Wanted to understand, what sort of margin does it carry, and does it flow straight away to the P&L or the development costs are already expensed in it? If you can split this license or service income under the formulation or API, CVM apart, that will be helpful.

Speaker #5: So what I wanted to understand is, what sort of margin does it carry? And does it flow straight away to the PBT, or are other development costs already expensed in it?

Speaker #5: And if you can split this license or service income under the, like, formulation or API/CDMO part, that will be helpful.

Speaker #4: Yeah. So, we probably would not be in a position to provide segregated numbers for them. But, you know, this licensing income that we generate, it's not that there are no spends or no expenditure for that.

Alpesh Dalal: Yeah. We probably would not be in a position to provide segregated numbers for them. This licensing income, what we generate, it is not that there are no spends or no expenditure for that. We obviously have developed the products. Spends have been done at a particular point in time. Revenue may not necessarily come in at the same period that the spends have been done because we develop the product, we take initially the R&D spends up to a particular level, and only then we end up getting some licensing revenues out of it. These are continuous developments. At any point in time, we have various programs which are under development, and some of them would end up generating licensing income in future, the way the current licensing income-related spends were done in the past.

Speaker #4: We have obviously developed the products, and the spending was done at a particular point in time. Revenue may not necessarily come in during the same period that the spending occurred.

Speaker #4: Because, you know, we develop the product, we initially take the R&D spends up to a particular level. And only then do we end up, you know, getting some licensing revenues out of it.

Speaker #4: But these are continuous developments. So, you know, at any point in time, we have various programs which are under development. And some of them would end up generating licensing income in the future.

Speaker #4: The way the current licensing income related spends were done in the past. We obviously and for every successful program, it's not necessary that, you know, every program that we work on is successful.

Alpesh Dalal: For every successful program, it is not necessary that every program that we work on is successful. There are some failures also that we have to budget, and that goes straight to our P&L as a hit. Some of these things are difficult to quantify and segregate what is the margin profile. Obviously, what we receive as licensing fees is significantly higher than the spends that we incur.

Speaker #4: There are some failures also that we have to budget for, and that goes straight to our P&L as a hit. So some of these things are—so it's difficult to quantify and segregate what is the margin profile.

Speaker #4: But obviously, what we receive as licensing fees is significantly higher than the spends that we incur.

Speaker #5: And sir, how should one look at this? Because will the majority of that be recurring revenue, or will it be one-time income?

Ajay: How should one look at this? Because majority of that would be a recurring revenue or it will be a one-time income. For example, when a product like Unicycive, for which we are doing a CDMO product, if that gets commercial. I wanted to understand how should one look at this part of the revenue? Is it more of a recurring revenue or a kind of one-time income?

[Analyst] (Nipison): How should one look at this? Because majority of that would be a recurring revenue or it will be a one-time income. For example, when a product like Unicycive, for which we are doing a CDMO product, if that gets commercial. I wanted to understand how should one look at this part of the revenue? Is it more of a recurring revenue or a kind of one-time income?

Speaker #5: For example, like when a product like Unisize, for which we are doing a CDMO product, gets commercial. So, sir, I wanted to understand, how should one look at this part of the revenue?

Speaker #5: Is it more of a recurring revenue, or is it a kind of one-time income?

Alpesh Dalal: Understood the question, Ajay. See, the point here is that our business is a B2B business. We are in the business of developing these products, the portfolio, and we license it out. We don't really do an in-market presence of our own. In that light, the more and more portfolio development we keep doing, we will keep getting licensing opportunity because that's our fundamental business model. CDMO is a separate kind of business altogether, and it should not be mixed up with the licensing revenue at all.

Speaker #4: Understood. Understood the question, Ajay. See, the point here is that our business is a B2B business, so we are in the business of developing these products—the portfolio.

Speaker #4: And we license it out. We don't really have an in-market presence of our own. So, in that light, you know, the more and more portfolio development we keep doing, we will keep getting licensing opportunities.

Speaker #4: Because that's our fundamental business model, right? CDMO is a separate kind of business altogether, and it should not be mixed up with the licensing revenue at all.

Speaker #5: Understood. And sir, can we restrict questions to two, please, Ajay? We have others waiting in the queue. Sir, just one last one, like that was.

Ajay: Understood.

[Analyst] (Nipison): Understood.

Alpesh Dalal: Can we restrict questions to two, please, Ajay? We have others waiting in the queue.

Ajay: Just one last link.

[Analyst] (Nipison): Just one last link.

Speaker #2: Sorry to interrupt, Mr. Ajay. Maybe, Rikesh, you can return to the question queue for a follow-up question.

Operator 2: Sorry to interrupt, Mr. Ajay. May we request you return to the question queue for a follow-up question?

Operator: Sorry to interrupt, Mr. Ajay. May we request you return to the question queue for a follow-up question?

Speaker #5: Yes, sure.

Ajay: Yeah, sure.

[Analyst] (Nipison): Yeah, sure.

Speaker #2: Thank you. The next question is from the line of Surendra Khemka from AVS Equity LLP. Please go ahead.

Operator 2: Thank you. The next question is from the line of Surendra Themkha from AVI Security LLC. Please go ahead.

Operator: Thank you. The next question is from the line of Surendra Themkha from AVI Security LLC. Please go ahead.

Speaker #5: Sir, I want to know any adverse effect of biosecurity act vis-à-vis China and India? If any, in future?

Surendra Themkha: Sir, I want to know any adverse effect of Bio Security vis-a-vis China and India, if any, in future.

Keshav Bhutada: Sorry, your question was not clear.

Speaker #4: Sorry, your question was not clear.

Speaker #5: Yes. Are there any adverse effects of the Biosecurity Act from the US vis-à-vis India and China on our production or selling formulations?

Surendra Themkha: Any adverse effect of the BIOSECURE Act from the US vis-a-vis India and China on our production, selling, formulation.

Speaker #4: No, because the Biosecurity Act is mainly for China, and that also, I think it's all there in the public domain. But I think these are some things which are more policy-related decisions which happen at a regulator level.

Keshav Bhutada: No, because BIOSECURE Act is mainly for China, and that also, I think it's all there in the public domain. I think these are some things which are more policy-related decisions, which happens at a regulator level. I think we will not be able to comment more clearly on that. As on date, we don't see any major impact of this Act for us.

Speaker #4: I think we will not be able to comment more clearly on that. But as of today, we don't see any major impact of this act for us.

Speaker #5: Okay. Thank you. Thank you.

Surendra Themkha: Okay, thank you.

Speaker #4: Thank you.

Keshav Bhutada: Thank you.

Speaker #2: Thank you. The next question is from the line of Nidhi Kumari from Narnolia Financial Services. Please go ahead. Ms. Kumari, your line has been unmuted.

Operator 2: Thank you. The next question is from the line of Nidhi Kumari from Narnolia Financial Services. Please go ahead. Ms. Kumari, your line has been unmuted. Please go ahead with the question.

Operator: Thank you. The next question is from the line of Nidhi Kumari from Narnolia Financial Services. Please go ahead. Ms. Kumari, your line has been unmuted. Please go ahead with the question.

Speaker #2: Please go ahead with your question.

Nidhi Kumari: Yeah, hello. Am I audible?

Speaker #3: Can I—yeah, hello. Am I audible?

Speaker #4: Yeah.

Keshav Bhutada: Yeah.

Speaker #3: Thank you for the opportunity. I have two questions. First, on the first NPA, what is the peak API revenue opportunity for Shilpa, if you could broadly answer?

Nidhi Kumari: Thank you for the opportunity. I have two questions. First, on the fourth MCA, what is the peak API revenue opportunity for Shilpa, if you could broadly answer. Also, as the product scales, what percentage of the innovator's product sales does Shilpa technically earn through API supply? Second, on norUDCA, could you share the revenue mix this quarter between product sales and licensing income? Within product sales, what was the contribution from Shilpa's own channel versus partner supply? Thank you.

Speaker #3: Also, as the product scales, what percentage of the innovator's product sales does Shilpa technically earn through API supply? Second, on more UBCA, could you share the revenue mix this quarter between product sales and licensing income within product sales?

Speaker #3: What was the contribution from Shilpa's own channel versus partner supply? Thanks.

Speaker #4: Yeah, okay. On the second question, I think Kesha had already specified that we will not be able to provide product-level detailing and all. And on the overall potential of the API business, I think the API business has been there with us for a few decades now.

Alpesh Dalal: Yeah. Okay. On the second question, I think Keshav had already specified that we will not be able to provide product-level detailing and all. On the what would be the overall potential of API business, I think API business has been there with us since a few decades now. It is a business that we have been growing. I don't think there is any specific cap that we look at that the API business can grow only up to a particular level. It is just a function of creation of capacity and making our supplies and growing our portfolio.

Speaker #4: It is a business that we have been growing. I don't think there is any specific cap that we look at, that the API business can grow only up to a particular level.

Speaker #4: It is just a function of creation of capacity and, you know, making our supplies and growing our portfolio.

Speaker #3: Yeah. Actually, this was the API revenue opportunity I was asking about for the first NPA program.

Nidhi Kumari: Actually, this was the API revenue opportunity I was asking for the fourth MCA program.

Speaker #4: Okay. No, so product-specific or project-specific details we will not be able to provide, Nidhi. You'll have to pardon us for that.

Alpesh Dalal: Okay. No. Product-specific or project-specific details, we will not be able to provide, Nidhi. You'll have to pardon us for that.

Speaker #3: Okay. Thank you.

Nidhi Kumari: Okay, sir. Thank you.

Speaker #2: Thank you. The next question is from the line of Thirumala Reddy, a New Zealand investor. Please go ahead.

Operator 2: Thank you. The next question is from the line of Tirumala Reddy, an individual investor. Please go ahead.

Operator: Thank you. The next question is from the line of Tirumala Reddy, an individual investor. Please go ahead.

Speaker #4: Yeah. Am I audible? Hello? Yeah, we can hear you. Yeah. Yeah, thanks. So in the CDMO business, is it possible for you to share how many customers we are handling now?

Tirumala Reddy: Yeah. Am I audible? Hello.

Alpesh Dalal: Yeah, we can hear you.

Tirumala Reddy: Yeah. Thanks. In the CDMO business, is it possible for you, how many customers we are handling with now? Just to understand how direct our customer base is.

Speaker #4: So, just to understand how diversified our customer base is—yeah. We have, overall in Shilpa Group, right, we have more than 20 customers on only the CDMO side.

Keshav Bhutada: Yeah, we have overall in Shilpa Group, we have more than 20 customers on only CDMO side.

Speaker #4: Okay. Okay. Okay. Thank you. The second part is on Adalimumab. So we have got USFDA approval. So how are the commercial sales standing for this product?

Tirumala Reddy: Okay. Thanks a lot. The second part is on adalimumab. We have got your approval. How the commercial sales standing in this product?

Speaker #4: Yeah. The Adalimumab as a product is doing well. Today, we have a decent market share in India because the partner who is selling our product has very good reach in the arthritis space.

Keshav Bhutada: Yeah. The adalimumab as a product is doing good. Today we have a decent market share in India because the partner who is selling our product has very good reach in the arthritis space. Product as a case is doing good, but it is not a very big opportunity. That was our first product. The way we partnered here was just to give a fair idea to the market that Shilpa has capabilities of developing and getting approval in biosimilars, where adalimumab was one such simple product. You will see the future how our pipeline we have designed is more complex products like aflibercept, mepolizumab, which are more complex than adalimumab.

Speaker #4: So, the product as a case is doing good, but it's not a very big opportunity. That was our first product. So, the way we partnered here was just to give a fair idea to the market that Shilpa has capabilities of developing and getting approval in biosimilars.

Speaker #4: Adalimumab was one such simple product. Then you will see in the future how our pipeline is designed with more complex products, like Aflibercept and Magnevolumab, which are more complex than Adalimumab.

Speaker #4: Okay. Okay. Thanks a lot. Thanks a lot. Thank you.

Yash Doshi: Okay. Thanks a lot.

Keshav Bhutada: Thank you.

Speaker #2: Thank you. The next question is from the line of Yash Doshi from Unify Capital. Please go ahead.

Operator 2: Thank you. The next question is from the line of Yash Doshi from Unifi Capital. Please go ahead.

Operator: Thank you. The next question is from the line of Yash Doshi from Unifi Capital. Please go ahead.

Speaker #5: Yeah, yeah. Just one question: regarding our 505(b)(2) ramp-up for the two products, I just wanted to understand, in the coming quarters, will the ramp-up be more for those products?

Yash Doshi: Yes. Just one question. Regarding our 505(b)(2) ramp up for the two products, just wanted to understand the ramp up in coming quarters. Will it be more for those products, and how is the penetration level in the US market?

Speaker #5: And how is the penetration level in the US market?

Speaker #4: Yeah, yes. I think product-level details we don't give. But I think what I can tell you is, the kind of product that Shilpa has and the complexity—it's not that just because you have developed a 505(b)(2), you get market share.

Keshav Bhutada: Yeah, Yash, I think product level details we don't give, but I think what I can tell you is the kind of product what Shilpa has and the complexity. It's not that just you have developed a 505(b)(2) so you get market share. It's also the kind of product advantages it has against the generic products and all of that. That's what we understand very well in the market, and accordingly our product is developed. Yes, it has a very good opportunity and sustainable opportunity. That's what I can tell you.

Speaker #4: It's also the kind of product, the advantages it has against the generic products and all of that. That's what we understand very well in the market.

Speaker #4: And accordingly, our product is developed. So yes, it has a very good opportunity and sustainable opportunity. That's what I can tell you.

Speaker #5: Okay, and just one last question. Regarding our complex FDS products, which we are expected to launch around 2028 or 2029, like ZND and the other two products—will it be a kind of first phase launch, or will it be a kind of second wave launch?

Yash Doshi: Okay. Just last question. Regarding your complex FDF products which are expected to launch in around 2028, 2029, like Zetandie and other two products, whether it will be kind of a first wave launch or it will be a kind of second wave launch.

Speaker #4: No, every product is different. Like, if you see Roti 14 as a product in a transdermal patch, right, it's more a first wave of generic launch that we are doing.

Keshav Bhutada: No. Every product is different. If you see Rotigotine as a product in transdermal patch set, it's more a first wave of generic launch what we are doing. If you go to products like, suppose, ABRAXANE, there are already generic players, but very few generics and very complex and goes in almost every tender. It's a mix of both. More important is we select only products which will give us, the day we are in market, it will give us sustainable growth in the upcoming years. We will never do a product which one month or six months it's selling and suddenly the sales has gone down by 90%, 95% in the pricing. Such product Shilpa will never do.

Speaker #4: But if you go to products like, suppose, Abrexen, there are already generic players. But very few generics, and it is very complex and goes into almost every tender.

Speaker #4: So, it’s a mix of both. But more important is that we select only products which, from the day we enter the market, will give us sustainable growth in the upcoming years.

Speaker #4: We will never do a product where, after one month or six months of selling, suddenly the sales have gone down by 90%, 95% in the pricing.

Speaker #4: Such a product, Shilpa will never do.

Speaker #5: Okay. Thank you.

Yash Doshi: Okay. Thank you.

Speaker #4: Yeah. Thank you.

Keshav Bhutada: Thank you.

Speaker #2: Thank you. The last question for the day is from the line of Ajay from Nevershare. Please go ahead. Mr. Ajay, your line has been unmuted.

Operator 2: Thank you. The last question for the day is from the line of Ajay from Nitesh Securities. Please go ahead. Hello, Mr. Ajay. Your line has been unmuted. Please go ahead with your question.

Operator: Thank you. The last question for the day is from the line of Ajay from Nitesh Securities. Please go ahead. Hello, Mr. Ajay. Your line has been unmuted. Please go ahead with your question.

Speaker #2: Please go ahead with your question.

Speaker #5: Sir, the system wanted to understand, like, now on the on-call as an API segment. We have 15 new on-call as the API products which we are targeting.

Ajay: Sir, just wanted to understand now on the oncology API segment, we have 15 new oncology API products which we are targeting, and also new CapEx which we are coming up. Wanted to understand the growth trajectory on the API front and just on the formulation part, what portion of our formulation requirement is sourced internally? How much of our formulation business is captively run through our API business?

[Analyst] (Nipison): Sir, just wanted to understand now on the oncology API segment, we have 15 new oncology API products which we are targeting, and also new CapEx which we are coming up. Wanted to understand the growth trajectory on the API front and just on the formulation part, what portion of our formulation requirement is sourced internally? How much of our formulation business is captively run through our API business?

Speaker #5: So, and also a new KPX which we are coming up with. So, wanted to understand the growth trajectory on the API front, and just, like, on the formulation part—what portion of our formulation requirement is sourced internally?

Speaker #5: Like, how much of our formulation business is capital run through our API business?

Speaker #4: Yeah. For your first question on the oncology API and the kind of growth trajectory we will have, that will all depend on how these molecule trials translate at our end customer line.

Keshav Bhutada: For your first question on the oncology API and the kind of growth trajectory we will have, that will all depend on how this molecule trials translating at our end customer line. We have very strong promising opportunities in many of these products. It's just that the timeline and the way it will monetize, I think that's something we will have to monitor. For sure, each of these products, the kind of investments we have done in these products, there is already end customer who is interested to buy. Only then we invest in the product. I think that kind of visibility we already have. Coming to the second question on the formulations. Formulation, what was it?

Speaker #4: But we have very strong, promising opportunities in many of these products. It's just that the timeline and the way it will commoditize—I think that's something we will have to monitor.

Speaker #4: But for sure, for each of these products, the kind of investments we have done in these products, there is already an end customer who is interested to buy; only then do we invest in the product.

Speaker #4: So I think that kind of visibility we already have. Coming to the second question on the formulations—formulation, what was it? How much is the captive?

Ajay: How much-

[Analyst] (Nipison): How much-

Ajay: How much is the captive? Yeah. In formulation, the overall captive percentage, if I tell you, it's more than 50%.

[Analyst] (Nipison): How much is the captive? Yeah. In formulation, the overall captive percentage, if I tell you, it's more than 50%.

Speaker #4: Yeah. So, in formulation, the overall captive percentage, if I tell you, it's more than 50%.

Speaker #5: Got it. And sir, currently, how in the US market or the global market, the biotechnology and biosimilar segments have again started to pick up.

Ajay: Got it. Sir, given currently how in the US market or the global market, the biotechnology and biosimilar have again started to pick up, our biologics revenue has also announced scaling up with INR 50 crore in this quarter, and in last year we did INR 150 crore. I just wanted to know your thoughts, we also have good number of products in the pipeline. Going forward, would the strategy be more of doing a CDMO kind of business over here or just out-license the product and get a milestone income from this. Wanted to just understand the strategy on this front and also some of your thoughts on how are we looking at this business going forward.

[Analyst] (Nipison): Got it. Sir, given currently how in the US market or the global market, the biotechnology and biosimilar have again started to pick up, our biologics revenue has also announced scaling up with INR 50 crore in this quarter, and in last year we did INR 150 crore. I just wanted to know your thoughts, we also have good number of products in the pipeline. Going forward, would the strategy be more of doing a CDMO kind of business over here or just out-license the product and get a milestone income from this. Wanted to just understand the strategy on this front and also some of your thoughts on how are we looking at this business going forward.

Speaker #5: And our biologics revenue has also now scaled up, like, with 50 crore in this quarter and, like, last year we did 150 crore.

Speaker #5: So, I mean, just wanted to know your thoughts. Like, we also have a good number of products in the pipeline. So, going forward, would the strategy be more of doing a CDMO kind of business over here, or just out-license the product and get milestone and milestone income from this?

Speaker #5: So, I just wanted to understand the strategy on this front and also hear some of your thoughts on how we are looking at this business going forward.

Speaker #4: See, on the biosimilar side, all in our biologics division, we have a mixed strategy, okay? We have short-, mid-, and long-term strategies. In the short to mid-term, we depend more on biosimilars as well as CDMO programs.

Keshav Bhutada: See, in the biosimilar side or in our biologics division, we have a mixed strategy. We have a small, midterm, and long-term strategy. Small to midterm will depend more on biosimilars as well as CDMO programs. Long-term is something which are more strategic partnership where you will see with Alveolus Bio, with mAbTree Biologics, which are more a long-term bets, but one product clicks then you have very good potential for many years. I think that's how our overall strategy is for biologics.

Speaker #4: Long-term is something which are more strategic partnerships, where you will see with Alveolus Bio, with Maptree Biologics. These are more of a long-term bet, but if one product clicks, then you have very good potential for many years.

Speaker #4: I think that's how our overall strategy is for biologics.

Speaker #5: Got it. And sir, one last question, if I can chip in. Sir, on the Oran deal which we have for the European market, I mean, I have been following the presentation of it.

Ajay: Got it. Sir, one last question, if I can chip in. Sir, on the Orion deal which we have for the European market, I have been following the presentation of late, and on some of the products which we have mentioned, there is slight delay which we have mentioned because of some issues with maybe the US FDA and this. On this Orion particularly, I want to ask you, internally, what launch year are we expecting this to get? What launch year are we expecting this? On scale or anything, if you would like to comment on the peak revenue or the timings you see.

[Analyst] (Nipison): Got it. Sir, one last question, if I can chip in. Sir, on the Orion deal which we have for the European market, I have been following the presentation of late, and on some of the products which we have mentioned, there is slight delay which we have mentioned because of some issues with maybe the US FDA and this. On this Orion particularly, I want to ask you, internally, what launch year are we expecting this to get? What launch year are we expecting this? On scale or anything, if you would like to comment on the peak revenue or the timings you see.

Speaker #5: And on some of the products which we have mentioned, there is a slight delay, which we have mentioned, because of some issues with maybe the US FDA and this.

Speaker #5: But on this Oran particularly, I want to ask you, like, internally, what launch year are we expecting for this? Which launch year are we expecting?

Speaker #5: And on, like, scale or anything, if you would like to comment on the peak revenue or the timings you see?

Speaker #4: So, Ajay, on Oran, our client-specific details—as we mentioned previously also—we don't give any details, so pardon us for that. We do not give any client or product-specific detailing.

Keshav Bhutada: Ajay, on Orion or client-specific details, as we mentioned previously also, we don't give any details. Pardon us for that. We don't give any client or product-specific detailing. Further, if you have any query, you can connect to Monish, whatever is possible, he will be happy to answer.

Speaker #4: Further, if you have any queries, you can connect with Monish. Whatever is possible, he will be happy to answer.

Speaker #5: Yeah. Sure. Sure. Sure.

Ajay: Sure.

[Analyst] (Nipison): Sure.

Speaker #4: Yeah.

Keshav Bhutada: Yeah.

Speaker #2: Thank you.

Ajay: Thank you.

[Analyst] (Nipison): Thank you.

Speaker #5: Thank you.

Keshav Bhutada: Thank you.

Speaker #2: Ladies and gentlemen, due to time constraints, that was the last question for the day. I will now hand over the conference to Mr. Alpesh Dalal for closing comments.

Operator 2: Ladies and gentlemen, due to time constraints, that was the last question for the day. Now I hand over the conference to Mr. Alpesh Dalal for closing comments.

Operator: Ladies and gentlemen, due to time constraints, that was the last question for the day. Now I hand over the conference to Mr. Alpesh Dalal for closing comments.

Speaker #5: Yeah, thanks. Thanks a lot. Thank you for your time and your thoughtful questions. Each year, we remain committed to growing and scaling the company to new heights.

Alpesh Dalal: Thanks a lot. Thank you for your time and your thoughtful questions. Each year, we remain committed to growing and scaling the company to new heights, and your continued interest and support mean a great deal to us. As has been repeated in our call as well, that if you have any follow-on questions, please reach out to our investor relations team. Thank you very much.

Speaker #5: And your continued interest and support mean a great deal to us. As has been repeated in our call as well, if you have any follow-on questions, please reach out to our investor relations team.

Speaker #5: Thank you very much.

Speaker #2: Thank you. On behalf of Shilpa Medicare, that concludes this conference. Thank you for joining us, and you may now disconnect the line.

Operator 2: Thank you. On behalf of Shilpa Medicare, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

Operator: Thank you. On behalf of Shilpa Medicare, that concludes this conference. Thank you for joining us, and you may now disconnect your line.

Alpesh Dalal: Thank you.

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Q1 2027 Shilpa Medicare Ltd Earnings Call

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