Q1 2027 Shaily Engineering Plastics Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, good day, and welcome to the Q1 FY27 earnings conference call of Shaily Engineering Plastics Limited. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation.

Operator 2: Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings conference call of Shaily Engineering Plastics Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during this conference call, please signal an operator by pressing Star then Zero on your touchtone phone. Please note that this conference is being recorded. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on beliefs, opinion, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict.

Operator: Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings conference call of Shaily Engineering Plastics Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions at the end of today's presentation. Should you need assistance during this conference call, please signal an operator by pressing Star then Zero on your touchtone phone. Please note that this conference is being recorded. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on beliefs, opinion, and expectations of the company as of the date of this call. These statements are not the guarantees of future performance and may involve risks and uncertainties that are difficult to predict.

Speaker #1: Should you need assistance during this conference call, please signal an operator by pressing 'star' then '0' on your touchtone phone. Please note that this conference is being recorded.

Speaker #1: Before we begin, a brief disclaimer: this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as of the date of this call.

Speaker #1: These statements are not guarantees of future performance and may involve risks and uncertainties that are difficult to predict. I would now like to hand the conference over to Mr. Amit Sanghi, Managing Director of Shaily Engineering Plastics Limited.

Operator 2: I would now like to hand the conference over to Mr. Amit Sanghvi, Managing Director of Shaily Engineering Plastics Limited. Thank you and over to you, sir.

Operator: I would now like to hand the conference over to Mr. Amit Sanghvi, Managing Director of Shaily Engineering Plastics Limited. Thank you and over to you, sir.

Speaker #1: Thank you, and over to you, sir.

Speaker #2: Thank you very much. Good afternoon, everyone, and thank you for joining the Shaily Engineering Plastics earnings call for Q1 FY27. I am joined today by Sanjay Shah, our Chief Strategy Officer, and Hitesh Gada, our Investor Relations Advisor.

Amit Sanghvi: Thank you very much. Good afternoon, everyone, and thank you for joining Shaily Engineering Plastics earnings call for Q1 FY27. I'm joined today by Sanjay Shah, our Chief Strategy Officer, and SGA, our investor relations advisor. I hope everyone has had the opportunity to review our financial results and investor presentation, which have been uploaded on the stock exchange as well as the company's website. The global operating environment remained challenged in the quarter, with continued uncertainty arising from the geopolitical situation in West Asia and its wider impact on supply chain as well as commodity markets. This led to volatility in key raw material prices, particularly polymers, alongside logistic disruptions, container availability constraints, and elevated freight costs. Despite these external headwinds, we remain focused on execution.

Speaker #2: I hope everyone has had the opportunity to review our financial results and investor presentation, which have been uploaded on the stock exchange as well as the company's website.

Speaker #2: The global operating environment remains challenging this quarter, with continued uncertainty arising from the geopolitical situation in West Asia and its wider impact on the supply chain.

Speaker #2: as well as commodity markets. This led to volatility in key raw material prices, particularly polymers, alongside logistic disruptions, container availability constraints, and elevated freight costs.

Speaker #2: Despite these external headwinds, we remain focused on execution. Through disciplined operational planning, supply chain management, and calibrated pricing actions—including packs and mechanisms wherever applicable—we were able to effectively mitigate much of the impact and ensure business continuity.

Amit Sanghvi: Through disciplined operational planning, supply chain management, and calibrated pricing actions, including pass-through mechanisms wherever applicable, we were able to effectively mitigate much of the impact and ensure business continuity. Before I get into the highlights of the quarter, I'd like to take a minute to reflect on our healthcare journey and what we've achieved so far. Q1 has been exceptionally exciting with launches, I thought I'd take a moment and reflect on it. When I look at where Shaily stands today, our position rests on two principles that we have not compromised on, quality and innovation. Our focus is consistently on delivering the best possible outcome for our customers and for the patients who depend on our devices. That standard has shaped every decision along a very difficult path, one we traveled for years with much of the market unconvinced that we could deliver.

Speaker #2: Before I get into the highlights of the quarter, I'd like to take a minute to reflect on our healthcare journey and what we've achieved so far.

Speaker #2: You know, Q1 has been exceptionally exciting with launches, so I thought I'd take a moment and reflect on it. When I look at where Shaily stands today, our position rests on two principles.

Speaker #2: We have not compromised on quality and innovation. Our focus is consistently on delivering the best possible outcomes for our customers and for the patients who depend on our devices.

Speaker #2: That standard has shaped every decision along a very difficult path, one we traveled for years, with much of the market unconvinced that we could deliver.

Speaker #2: We took on risks that few in our industry would accept, stayed focused on the objective, and treated our early failures as critical information—ones that we learned from, corrected quickly, and moved on.

Amit Sanghvi: We took on risks that few in our industry would accept, stayed focused on the objective, and treated our early failures as critical information, one that we learned from, corrected quickly, and moved on. Combined with a deliberate effort to hire the best talent in the industry globally, this approach has produced measurable results for Shaily. Six of our eight device platforms are now fully commercial and sold across global markets, developed within 7 to 8 years. Over the same period, Shaily has delivered the world's first generic semaglutide launches in multiple markets and also secured the first tentative US FDA approval for generic semaglutide. Building on this, I'm pleased to announce that we have appointed dedicated heads of business development for both Europe as well as North America, our two priority growth markets.

Speaker #2: Combined with the deliberate effort to hire the best talent in the industry globally, this approach has produced measurable results for Shaily. Six of our eight device platforms are now fully commercial and sold across global markets.

Speaker #2: Developed within seven to eight years. Over the same period, Shaily has delivered the world's first generic semaglutide launches in multiple markets and also secured the first tentative US FDA approval for generic semaglutide.

Speaker #2: Building on this, I'm pleased to announce that we have appointed dedicated heads of business development for both Europe as well as North America—our two priority growth markets.

Speaker #2: Both our senior industry leaders, and with them in place, we are in discussions and confident of securing a partnership with a major global pharmaceutical over the near term.

Amit Sanghvi: Both are senior industry leaders, with them in place, we are in discussions and confident of securing a partnership with a major global pharmaceutical over the near term. The healthcare strategy is clear: continue to scale GLP-1 and insulin and simultaneously get into niche areas like emergency-use devices, on-body injectors, and more sustainable reusable devices, as well as forge partnerships with global pharma to take the next leap in Shaily's healthcare growth story. Now coming to the quarter, as committed earlier, our additional 25 million pen capacity is expected to become operational by end of September, taking our total installed pen injector capacity to approximately 75 million pens per annum. Moving to our segment-wide performance and key business developments. Healthcare continued to deliver robust performance during Q1 FY27.

Speaker #2: The healthcare strategy is clear: continue to scale GLP-1 and insulin, and simultaneously get into niche areas like emergency use devices, on-body injectors, and more sustainable reusable devices.

Speaker #2: As well as forge partnerships with global pharma to take the next leap in Shaily's healthcare growth story. Now coming to the quarter, as committed earlier, our additional 25 million pen capacity is expected to become operational by the end of September.

Speaker #2: Taking our total installed pen injector capacity to approximately 75 million pens per annum. Moving to our segment-wise performance and key business developments, healthcare continued to deliver robust performance during Q1 FY27.

Speaker #2: Segment revenue grew 85% year-on-year to ₹142 crore, contributing approximately 51% of consolidated revenue, and becoming our largest business segment for the quarter. Growth continued to be led by our pen injector platform, including devices used for GLP-1 and other chronic therapies.

Amit Sanghvi: Segment revenue grew 85% year on year to INR 142 crores, contributing approximately 51% of consolidated revenue and becoming our largest business segment for the quarter. Growth continued to be led by our pen injector platform, including devices used for GLP-1 and other chronic therapies. During the quarter, we received orders for injector pen supply following regulatory approval secured for the sale of semaglutide in Canada, Brazil by our pharmaceutical partners. In addition, we have also signed 2 new platform projects, further strengthening our long-term product pipeline. The consumer segment reported revenue of INR 116 crores during the quarter, accounting for around 41% of consolidated revenue. Performance reflected softer demand in home furnishings across Europe and United States, our largest export markets for the business. During this period, however, we continued to expand customer relationships and add new programs that strengthen our future revenue pipeline.

Speaker #2: During the quarter, we received orders for injector pen supplies following regulatory approvals secured for the sale of semaglutide in Canada and Brazil by our pharmaceutical partners.

Speaker #2: In addition, we have also signed two new platform projects for strengthening our long-term product pipeline. The consumer segment reported revenue of ₹116 crore during the quarter, accounting for around 41% of consolidated revenue.

Speaker #2: Performance reflected software demand and home furnishings across Europe and the United States, which are the largest export markets for the business. During this period, however, we continued to expand customer relationships and add new programs that strengthen our future revenue pipeline.

Speaker #2: In Q1 FY27, we secured a global project from an FMCG customer and also won new business in the LED lighting segment. The industrial segment maintained its healthy growth trajectory, with revenue increasing 25% year-on-year to ₹23 crore.

Amit Sanghvi: In Q1 FY27, we secured a global project from an FMCG customer and also won new business in the LED lighting segment. The industrial segment maintained its healthy growth trajectory, with revenue increasing 25% year on year to INR 23 crores. Growth was supported by new customer additions and increasing opportunities across engineering applications, including consumer electronics. During the quarter, we received business confirmations for new projects from both appliance as well as automotive customers. We also onboarded new customers with orders covering five consumer electronic components. Going forward, we remain focused on building sustainable revenue streams in this segment, particularly through consumer electronics and semiconductor trays. As we look ahead to FY27, we aim to strengthen and ramp up our newly commissioned capacities, deepening strategic customer relationships, accelerating innovation through our IP-led platforms, and maintaining operational excellence while delivering sustainable and profitable growth.

Speaker #2: Growth was supported by new customer additions and increasing opportunities across engineering applications, including consumer electronics. During the quarter, we received business confirmations for new projects from both appliance and automotive customers.

Speaker #2: We also onboarded a new customer with orders covering five consumer electronic components. Going forward, we remain focused on building sustainable revenue streams in this segment, particularly through consumer electronics and semiconductor trades.

Speaker #2: As we look ahead to FY27, we aim to strengthen and ramp up our newly commissioned capacities, further deepen strategic customer relationships, accelerate innovation through our IP-led platforms, and maintain operational excellence while delivering sustainable and profitable growth.

Speaker #2: With that, I now hand over to Sanjay, who will take you through the operating and financial highlights in more detail. Thank you very much.

Amit Sanghvi: With that, I now hand over to Sanjay, who will take you through the operating and financial highlights in more detail. Thank you very much. Over to you, Sanjay.

Speaker #2: Over to you, Sanjay.

Speaker #3: Thank you, Amit. Good afternoon, everyone. Let me now take you through the financial and operating highlights for the quarter. Machine utilization improved to 50.2% during Q1 FY27, compared with 48.7% in Q1 FY26, reflecting a gradual improvement in capacity utilization.

Sanjay Shah: Thank you, Amit. Good afternoon, everyone. Let me now take you through the financial and operating highlights for the quarter. Machine utilization improved to 50.2% during Q1 FY27, compared with 48.7% in Q1 FY26, reflecting a gradual improvement in capacity utilization. Exports accounted for approximately 58% of consolidated revenue during the quarter, compared with 76% in the corresponding quarter last year. The change is primarily due to the growing contribution of our healthcare business, where products are supplied to global markets through our Indian pharmaceutical customers. Coming to the consolidated financial highlights for Q1 FY27. Revenue for Q1 FY27 stood at INR 281 crores, compared with INR 247 crores in Q1 FY26, registering year-on-year growth of 14%. EBITDA increased to INR 83 crores from INR 70 crores, representing a growth of 18%, while EBITDA margin improved by 120 bps to 29.7%.

Speaker #3: Exports accounted for approximately 58% of consolidated revenue during the quarter, compared with 76% in the corresponding quarter last year. The change is primarily due to the growing contribution of our healthcare business, where products are supplied to global markets through our Indian pharmaceutical customers.

Speaker #3: Coming to the consolidated financial highlights for Q1 FY27, revenue for Q1 FY27 stood at ₹281 crore, compared with ₹247 crore in Q1 FY26, registering year-on-year growth of 14%.

Speaker #3: EBITDA increased to ₹83 crores from ₹70 crores, reflecting a growth of 18%, while EBITDA margin improved by 120 bps to 29.7%. Profit after tax stood at ₹48 crores, compared with ₹41 crores in Q1 FY26, representing a growth of 17%.

Sanjay Shah: Profit after tax stood at INR 48 crores, compared with INR 41 crores in Q1 FY26, representing a growth of 17%. Tax margin improved to 17.1%, an expansion of 40 basis points year on year. Coming to segmental revenue breakup for Q1 FY27. Consumer revenue stood at INR 116 crores, compared with INR 151 crores in Q1 FY26, reflecting a decline of 24%, largely due to softer demand across Europe and US. Healthcare revenue increased to INR 142 crores from INR 77 crores, representing an 85% year-on-year growth. Industrial revenue grew to INR 23 crores from INR 18 crores, delivering a healthy growth of 25%. That concludes the update from my side. We will now open the floor for questions. Thank you.

Speaker #3: Back margin improved to 17.1%, an expansion of 40 basis points year-on-year. Coming to the segmental revenue breakup for Q1 FY27, consumer revenue stood at ₹116 crore, compared with ₹151 crore in Q1 FY26, reflecting a decline of 24%, largely due to softer demand across Europe and the US.

Speaker #3: Healthcare revenue increased to ₹142 crore from ₹77 crore, representing an 85% year-on-year growth. Industrial revenue grew to ₹23 crore from ₹18 crore, delivering a healthy growth of 25%.

Speaker #3: That concludes the update from my side. We will now open the floor for questions. Thank you.

Speaker #1: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press 'star' and 'one' on the touch-tone telephone.

Operator 2: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 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. We have our next question from the line of Shaleen Kumar from UBS India. Please go ahead.

Operator: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 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. We have our next question from the line of Shaleen Kumar from UBS India. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press Start and 2. Participants are requested to use handsets while asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our next question from the line of Shaline Kumar.

Speaker #1: From UBS India, please go ahead.

Speaker #4: Yeah. Hi, thanks. Hi, Amit. Hi, Sanjay. Hi. Congratulations on a good set of numbers. One first question—can we know how many pens we have done in the quarter?

Shaleen Kumar: Yeah. Hi, thanks. Hi, Amit, hi, Sanjay. Congratulations on the good set of numbers. One first question. Can we know how many pens we have done in Q1?

Speaker #3: So, all devices—delivery devices put together—we've done about close to 9 million in the first quarter.

Sanjay Shah: All delivery devices put together, we have done about close to 9 million in Q1.

Amit Sanghvi: All delivery devices put together, we have done about close to 9 million in Q1.

Speaker #4: Right. So, Amit, what is the ballpark proportion of insulin and GLP-1 in that?

Shaleen Kumar: All right. Amit, and what will be the ballpark proportion of insulin and GLP-1 in that?

Sanjay Shah: You've got a bit more than insulin and GLP-1. There is other therapies in the mix, but rough ballpark would be, consider 50% to 60% GLP-1, and the rest would be insulin plus other molecules.

Amit Sanghvi: You've got a bit more than insulin and GLP-1. There is other therapies in the mix, but rough ballpark would be, consider 50% to 60% GLP-1, and the rest would be insulin plus other molecules.

Speaker #3: You've probably got just a bit more than insulin and GLP-1. So, there are other therapies in the mix, but the rough ballpark would be to consider 50% to 60% GLP-1s, and the rest would be insulin plus other molecules.

Speaker #4: Got it, got it. And I would like to know the status of the new line, right? Which we had set up at the beginning of the previous quarter.

Shaleen Kumar: Got it. I would like to know the status of the new line which we have set up beginning of the previous quarter. We were facing some issues in setting up and reaching the optimum levels. Where we are on that?

Speaker #4: So, we were facing some issues in setting up and reaching the optimal levels. So, where are we on that?

Speaker #3: We have increased efficiency and increased speed on that line by about 9%. It still needs further improvements, so we have a plan. There is some additional equipment needed on the line, which is still under—it's not received actually yet.

Sanjay Shah: We have increased speed on that line by about 9%. It still needs further improvement, so we have a plan. There's some additional equipment needed on the line, which is still it's not received as yet. As soon as that is installed, that line should be able to see another 30% jump.

Amit Sanghvi: We have increased speed on that line by about 9%. It still needs further improvement, so we have a plan. There's some additional equipment needed on the line, which is still it's not received as yet. As soon as that is installed, that line should be able to see another 30% jump.

Speaker #3: As soon as that is installed, that line should be able to see another 30% jump.

Speaker #4: Right. That's great. And the timeline for that?

Shaleen Kumar: That's great. Timeline for that?

Sanjay Shah: It's a constant struggle right now, Shaleen, but we're looking at essentially before the end of this quarter.

Amit Sanghvi: It's a constant struggle right now, Shaleen, but we're looking at essentially before the end of this quarter.

Speaker #3: It's a constant struggle right now, Shaline, but we're looking at, essentially, before the end of this quarter.

Speaker #4: All right. And the next line, which we are getting in just our next month, do you think that you will face similar challenges, or do you have some learnings from the current line and the upcoming line will be much smoother?

Shaleen Kumar: The next line which we're getting in this or next month, do you think that you will face similar challenges, or you have some learnings from the current line and the upcoming line will be much smoother?

Speaker #3: So, one thing we've made sure of is we've delayed getting the second line that is coming in. I mean, not beyond what we had anticipated, but just, if I look at the overall program, the line was to come in and then go through a ramp-up.

Sanjay Shah: One thing we've made sure, we've delayed getting the second line that is coming in. I mean, not beyond what we had anticipated, but just if I look at the overall program, the line was to come in and then go through a ramp-up. Instead, we've kind of switched that strategy. We're going to do the ramp-up and get to an 80%-plus efficiency at the supplier before we do the FAT and then ship the line. We're not doing any R&D here.

Amit Sanghvi: One thing we've made sure, we've delayed getting the second line that is coming in. I mean, not beyond what we had anticipated, but just if I look at the overall program, the line was to come in and then go through a ramp-up. Instead, we've kind of switched that strategy. We're going to do the ramp-up and get to an 80%-plus efficiency at the supplier before we do the FAT and then ship the line. We're not doing any R&D here.

Speaker #3: Instead, we've kind of switched that strategy. We're going to do the ramp-up and get to an 80% plus efficiency at the supplier before we do the FAT, and then ship the line.

Speaker #3: We're not doing any R&D here.

Speaker #4: So effectively, once the line is here—maybe in a month or two—we should be able to achieve similar efficiencies, like the 80% we're talking about.

Shaleen Kumar: Effectively, once the line is here, maybe in a month or two, we should be able to achieve similar efficiency, like 80% you're talking about?

Speaker #3: Absolutely. Absolutely.

Sanjay Shah: Absolutely.

Amit Sanghvi: Absolutely.

Speaker #4: So Amit, on that basis, you have done 9 million in one queue despite all the challenges. In two queue, your efficiency is improving. In three queue, four queue, your line will be double and operating at a much higher efficiency.

Shaleen Kumar: Amit, on that basis, you have done INR 9 million in Q1 despite all the challenges. Q2, your efficiency is improving. In Q3, Q4, your line will be double and operating at a much higher efficiency. Your full-year guidance is INR 36 million. I mean, mathematically, you will be beating your guidance even with a single line operating at a much lower efficiency. Is it fair to believe that you will do much better than your guidance?

Speaker #4: So, but your full-year guidance is 36. I mean, mathematically, you will be beating your guidance even with a single line operating at a much lower efficiency.

Speaker #4: So, is it fair to believe that you will do much better than your guidance?

Speaker #3: I mean, it's an evolving situation, because it's not just—

Sanjay Shah: I mean, it's an evolving situation because it's not just.

Amit Sanghvi: I mean, it's an evolving situation because it's not just.

Speaker #4: It's a mathematics.

Shaleen Kumar: It's mathematics.

Speaker #3: It's not just delivered. It's also partners, customer partners, having some short-term potential supply chain issues as well. But yeah, I think we will—we should be able to go beyond 36 million.

Sanjay Shah: It's not just our ability to deliver, it's also customer partners having some short-term potential supply chain issues as well. Yeah, I think we should be able to go beyond INR 36 million. Short answer is we should be.

Amit Sanghvi: It's not just our ability to deliver, it's also customer partners having some short-term potential supply chain issues as well. Yeah, I think we should be able to go beyond INR 36 million. Short answer is we should be.

Speaker #3: Short answer is we

Shaleen Kumar: Yeah. Effectively, if nothing, no other variable changes, demand remains strong, I hope it is strong, and you are able to execute the strategy. We should be in a comfortable position of beating our guidance of 36. That is what we can expect.

Speaker #4: It's nothing. No other variable changes without demand, where demand remains strong. I hope it is strong, and you're able to execute the strategy. So we should be in a comfortable position of beating our guidance of 36.

Speaker #4: That's the way to put it.

Speaker #3: Yes.

Speaker #4: Great, great. A bit on consumer electronics, and then I'll join back the queue. Any status update on the new plant where we have already started supplying commercially to the customer?

Shaleen Kumar: Great. A bit on consumer electronics and then I will join back the queue. Any status update on the new plant, where we are? Have you started supplying commercially to a customer? How many parts have been qualified? Any update on that?

Speaker #4: How many parts have been qualified? Any update on that?

Speaker #3: We have started commercial supply. We also got awarded five new components, as I mentioned in my earlier speech, from a new customer in consumer electronics, which we should be able to put into supply just before the end of the year.

Amit Sanghvi: We have started commercial supply. We also got awarded five new components, as I mentioned that in my earlier speech, from a new customer in consumer electronics, which we should be able to put into supply just before the end of the financial year. In terms of starting up of the new plant, we are looking at, I think you will receive an update in the next quarter earnings call, plans are quite solid and moving forward as projected.

Speaker #3: End of the financial year. And in terms of the startup of the new plant, I think you'll receive an update in the next quarter's earnings call, but plans are quite solid and moving forward as projected.

Speaker #4: Have you secured the location land?

Ritesh Shah: Have you secured the location land?

Shaleen Kumar: Have you secured the location land?

Speaker #3: Short answer: yes. We haven't announced it, but yes, we have.

Amit Sanghvi: Short answer, yes. We haven't announced it. Yes, we have.

Speaker #4: All right, that's great. That's great. I have a bunch more questions, but I would rather join the queue. Thank you so much.

Ritesh Shah: All right. That's great. I have a bunch of more questions. I would rather join the queue. Thank you so much.

Shaleen Kumar: All right. That's great. I have a bunch of more questions. I would rather join the queue. Thank you so much.

Speaker #3: Thank you.

Amit Sanghvi: Thank you.

Speaker #1: 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. Should you have a follow-up question, we request you to rejoin the queue. I repeat, please limit yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. Next question is from the line of Ritesh Shah from Investec. 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. Should you have a follow-up question, we request you to rejoin the queue. I repeat, please limit yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. Next question is from the line of Ritesh Shah from Investec. Please go ahead.

Speaker #1: Should you have follow-up questions, we request you to rejoin the queue. I repeat, please limit yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue.

Speaker #1: Next question is from the line of Ritesha from Investech. Please go ahead.

Speaker #4: Yeah. Hi. Thanks for the opportunity, and congratulations on a good set of numbers. My first question is on the sequential decline in gross margin.

Ritesh Shah: Yeah. Hi, thanks for the opportunity and congratulations on a good set of numbers. First question is on gross margin decline on a sequential basis. It's a bit perplexing given the healthcare pie in revenues has actually increased. Just wanted to understand, one is the pricing and second is the cost plus arrangements that we have on insulin and GLP-1 devices. A related one, any color that you can provide on pricing for those devices, taking into account the two large Chinese companies, which are also likely to hit the supply curve. How should we look at overall pricing, margins and cost plus? I think that's the first question. Thanks.

Speaker #4: It's a bit perplexing, given the healthcare pie in revenues has actually increased. So, just wanted to understand—one is the pricing, and second is the costless arrangements that we have on insulin and GLP-1 devices.

Speaker #4: And the related one, any color that you can provide on pricing for these devices, taking into account the two large Chinese companies which are also likely to hit the supply curve?

Speaker #4: So, how should we look at overall pricing, margins, and cost base? I think that's the first question. Thanks.

Speaker #3: So Ritesha, on gross margins, would you have seen—post-March, because of the war—commodity prices basically increased substantially. In addition to that, freight prices also went up.

Sanjay Shah: Ritesh, on gross margin, what you would have seen is post-March, because of the war, commodity prices basically increased substantially. In addition to that, freight prices also went up.

Speaker #3: And we've had some premium freight incidents where we've had to airlift material. So, while the pass-through with some customers would have been delayed, it would basically have happened between May and June.

Amit Sanghvi: We've had some premium freight incidents where we've had to airlift material.

Sanjay Shah: We've had some premium freight incidents where we've had to airlift material.

Sanjay Shah: While the pass-through with some customers would have been delayed, would basically have happened between May and June. With some customers, the cycle would have been probably in July. That was the reason why you see some gross margin decline. We expect that the gross margin will come back to normalized levels by Q3.

Speaker #3: And with some customers, the cycle would have been probably in July. So that was the reason why you see some gross margin decline. We expect that the gross margin will come back to normalized levels by Q3.

Speaker #4: That's great—on the pricing side, yeah.

Ritesh Shah: That's great. On the pricing side?

Sanjay Shah: Yeah. The question was quite vague on the pricing side.

Speaker #3: The question was quite vague on pricing.

Speaker #4: Yeah, yeah. So I kept it vague by design. I just wanted to understand your perspective on pricing for the GLP-1 devices, specifically with potential Chinese competition also impacting the supply curve.

Ritesh Shah: Yeah. I kept it vague by design. I just wanted to understand your sense on pricing for the GLP-1 devices, specifically with potentially Chinese competition also hitting the supply curve.

Speaker #3: Chinese competitor—I mean, look, as far as my knowledge goes, the Chinese are potentially putting their product on the market somewhere around $1.50 to $1.70.

Amit Sanghvi: Chinese competition, as far as my knowledge goes, Chinese are potentially putting their product on the market somewhere around $1.50 to $1.70. Again, copycat products, not really anything novel, that's 20-year-old technology. Some products that the Chinese have put on the market do infringe not only our patents but also other key suppliers globally. We're looking at a strategy on how to deal with that, but we're not too concerned about the Chinese pricing, very honestly. It's not that it's half of ours. Ours are, I think, somewhere above the $2 mark.

Speaker #3: And again, copycat products—so not really anything novel. That's 20-year-old technology. Some products that the Chinese have put on the market do infringe not only our patents, but also those of other key suppliers globally.

Speaker #3: We're looking at a strategy on how to deal with that. But we're not too concerned about the Chinese pricing, very honestly. It's not that it's half of ours.

Speaker #3: It's, yeah, ours are, I think, somewhere above the $2 mark. So there's certainly...

Ritesh Shah: Okay. I just wanted to understand, what is the frequency of price renewal? Typically, these are long gestation volume contracts, you fix up a certain cost plus with a 2-year tenure, or is it on a certain volumes? How does it work?

Speaker #4: I just wanted to understand, what is the frequency of price renewal? So, typically, are these long-duration volume contracts where you fix up a certain cost plus, with a two-year tenure, or is it based on certain volumes?

Speaker #4: How does it work? So

Amit Sanghvi: These are not cost-plus contracts. They're basically just volume and market-driven pricing contracts with a mechanism to do price review annually. It all depends on the type of agreement. It's not a cost-plus business, first of all, right? It's an intellectual property-led business, so it's never going to be a cost-plus business. We look at a base index on various things, inflation and potentially polymers. More importantly, we look at longevity of the contract and the commitment, and that's how pricing is decided.

Speaker #3: These are not cost-plus contracts. They're basically just volume- and market-driven pricing contracts, with a mechanism to do price review annually. So it all depends on the type of agreement.

Speaker #3: It's not a cost-plus business, first of all, right? It's an intellectual property-led business. So it's never going to be a cost-plus business.

Speaker #3: We look at a base index on various things—inflation and potentially polymers. But more importantly, we look at the longevity of the contract and the commitment.

Speaker #3: And that's how pricing is decided.

Speaker #4: Perfect. My second question is regarding the press release we issued about Dr. Reddy's ₹423 crore order a few quarters back.

Ritesh Shah: Perfect. My second question is on, we had put in a press release with respect to Dr. Reddy's INR 423 crore order a few quarters back. We understand that they have issues with regard to impurities in Canada. Brazil also is stuck with technical issues. In these circumstances, how comfortable are we with our guidance of INR 36 million? If not for DRL, do we have likes of Apotex or somebody else, who will comfortably lift our shipments? In the current context as well, wherein there are certain issues with DRL, is the offtake ongoing or is it some other companies are actually taking out our products?

Speaker #4: We understand that they have issues with regard to impurities in Canada. Brazil is also stuck for technical issues. In these circumstances, how comfortable are we with our guidance of 36 million?

Speaker #4: So, if not for DRL, do we have the likes of Apotex or somebody else who will comfortably lift our shipments? And in the current context as well, wherein there are certain issues with DRL, is the offtake ongoing, or are some other companies actually taking out our products?

Speaker #3: So, Ritesh, I don't think you've named a customer who secured business from a pharmaceutical customer. So, we don't want to name the customer. On the volumes part of it, I'll let Amit answer the question.

Sanjay Shah: Ritesh, I don't think we have named the customer. We said we have secured business from a pharmaceutical customer, so we don't want to name the customer. On the volumes part of it, I'll let Amit answer the question.

Speaker #2: Yes, sir. With whatever is happening with a particular partner, our device supplies are under, so the fact is that we actually need to supply more.

Amit Sanghvi: With whatever's happening on a particular partner, our device supplies are under. The fact is that we actually need to supply more because there's a gap, and the gap needs to be filled. Right now, we still have most of the approvals in various markets across the world. It's one of our partners selling. We still remain confident of the guidance.

Speaker #2: Because there's a gap, and the gap needs to be filled. Right now, we still have most of the approvals in various markets across the world.

Speaker #2: So, it's one of our partners selling. We still remain confident in the guidance.

Speaker #4: Sure, this helps. I'll join back the queue. Thank you so much for the answers. All the very best. Thank you.

Ritesh Shah: Sure. This helps. I'll join back the queue. Thank you so much for the answers. All the very best. Thank you.

Speaker #3: Thanks.

Speaker #4: Thank you. We have our next question from the line of Harshad from GM Financials. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Harsha from JM Financial. Please go ahead.

Operator: Thank you. We have our next question from the line of Harsha from JM Financial. Please go ahead.

Speaker #5: Yeah. Hi, team. Thanks for the opportunity. A few questions from my side. So firstly, in terms of what Amit said, if you could give some sort of color with respect to the sort of visibility, or rather the type of conversations that you are having with your customers with regards to the Abu Dhabi capacity.

[Company Representative] (JM Financial): Yeah. Hi, team. Thanks for the opportunity. Few questions from my side. Firstly, in terms of, Amit, sir, if you could give some sort of color with respect to the sort of visibility or rather the type of conversations that you're having with your customers with regards to the Abu Dhabi capacity. Obviously, it is some time away from here, but some color on it in terms of the type of conversations that are going on.

Harsha Asnani: Yeah. Hi, team. Thanks for the opportunity. Few questions from my side. Firstly, in terms of, Amit, sir, if you could give some sort of color with respect to the sort of visibility or rather the type of conversations that you're having with your customers with regards to the Abu Dhabi capacity. Obviously, it is some time away from here, but some color on it in terms of the type of conversations that are going on.

Speaker #5: Obviously, it is some time away from here, but some color on it in terms of the type of conversations that are going on.

Speaker #3: I mean, look, I think we've said roughly 50 to 55 percent is, kind of, we've got commitments and indication on that, kind of that capacity.

Amit Sanghvi: I think we've said roughly 50% to 55%. We've got commitments and indication on that capacity. The rest we are working on. The plant is supposed to start selling by end of FY28, we should get into commercial sales by the end of FY28, which means the capacity, if you think about it, is really for the markets opening up in Europe in 2028, plus insulin, as well as the markets that will open up globally in 2030, 2031.

Speaker #3: The rest we are working on. The plant is supposed to start selling by the end of FY28. So, we should get into commercial sales by the end of FY28, which means the capacity, if you think about it, is really for the market opening up in Europe in '28, plus insulin, as well as the markets that will open up globally in 2030, 2031.

Speaker #5: Got it. Okay. Secondly, on the consumer electronics vertical, right? So, if I have to join some dots, basically the commentary that you all have been giving for the past few quarters, and also this time around—you did mention regarding the new win from a customer.

[Company Representative] (JM Financial): Got it. Okay. Secondly, on the consumer electronics vertical. If I have to, say, join some dots, basically commentary that you all have been giving for the past few quarters, and also this time around you did mention regarding the new win from a customer. How should one think about the type of scale you can reach in, let's say, in the next two to three years? Or rather, let me put it this way. When do you think Shaily as a company can realistically, say, hit $10 million revenue? I mean, some ballpark, some color on it, just for the investing community, for our financial models. Yeah.

Harsha Asnani: Got it. Okay. Secondly, on the consumer electronics vertical. If I have to, say, join some dots, basically commentary that you all have been giving for the past few quarters, and also this time around you did mention regarding the new win from a customer. How should one think about the type of scale you can reach in, let's say, in the next two to three years? Or rather, let me put it this way. When do you think Shaily as a company can realistically, say, hit $10 million revenue? I mean, some ballpark, some color on it, just for the investing community, for our financial models. Yeah.

Speaker #5: How should one kind of think about the type of scale you can reach in the next two, two to three years? Or rather, let me put it this way.

Speaker #5: When do you think Shaily as a company can realistically hit $10 million in revenue? I mean, some ballpark, some color on it. I mean, just for the investing community, you know, for our financial models.

Speaker #5: Yeah.

Speaker #3: So, Harsh, what we're doing is we're building up the portfolio and customers. I think 24 to 30 months is the short answer. That's our—again, this is not a guidance.

Sanjay Shah: Harsha, what we're doing is we're building up the portfolio and adding customers, adding products to it. We'll continue to do that.

Amit Sanghvi: I think 24 to 30 months is the short answer. Again, this is not a guidance, this is what our projections look like. We think we can get to that number by within 30 months.

Sanjay Shah: I think 24 to 30 months is the short answer. Again, this is not a guidance, this is what our projections look like. We think we can get to that number by within 30 months.

Speaker #3: So this is what our projections look like. We think we can get that number by—yeah, within 30 months.

Speaker #5: Got it. And just to appreciate this customer win, could you—are you in a position to give some qualitative details in terms of the time it took for you to get qualified for the customer?

[Company Representative] (JM Financial): Got it. Just to appreciate this customer win, are you in the position to give some qualitative details in terms of the time taken for you to get qualified for the customer? Anything on that side?

Harsha Asnani: Got it. Just to appreciate this customer win, are you in the position to give some qualitative details in terms of the time taken for you to get qualified for the customer? Anything on that side?

Speaker #5: Anything on that side?

Speaker #3: Harsh, again, all these details will be confidential, so it will be difficult for us to comment on that. Yeah.

Sanjay Shah: Harsha, again, some of these details will be confidential, so it will be difficult for us to comment on that. Yeah.

Speaker #5: Sure. Just lastly, from my side, in the UK subsidiary, right? So obviously, if we do control minus standalone, that kind of includes both the UK and the UAE subsidiary.

[Company Representative] (JM Financial): Sure. Just lastly, from my side, in the UK subsidiary. Obviously if we do control minus standalone, that kind of includes both the UK and the UA subsidiary. If I have to just do a normal calculation, I see a bit of a drop in the UK subsidiary revenue. Is that more of a timing kind of issue that is coming for the subsidiary?

Harsha Asnani: Sure. Just lastly, from my side, in the UK subsidiary. Obviously if we do control minus standalone, that kind of includes both the UK and the UA subsidiary. If I have to just do a normal calculation, I see a bit of a drop in the UK subsidiary revenue. Is that more of a timing kind of issue that is coming for the subsidiary?

Speaker #5: But if I have to just do a normal calculation, I see a bit of a drop in the UK subsidiary's revenue.

Speaker #5: Is that more of a timing kind of issue that has come in for the subsidiary?

Speaker #3: Yes, it is a timing issue. Look, there are certain milestones that were achieved at the very, very end of the month. But what we do is we don’t raise an invoice until we get confirmation from a customer that the milestone is achieved.

Amit Sanghvi: Yes, it is a timing issue. Look, there are certain milestones that were achieved at the very end of the month. What we do is we don't raise an invoice until we get confirmation from a customer that the milestone is achieved. It's a timing issue. It will come back over the next three quarters.

Speaker #3: So, it's a timing issue. It will come back over the next three quarters.

Speaker #5: So, if we assume that for the full year, we can achieve at least 15% growth in the UK subsidiary?

[Company Representative] (JM Financial): Safe to assume that for the full year, we can do at least 15% kind of growth in the UK subsidiary?

Harsha Asnani: Safe to assume that for the full year, we can do at least 15% kind of growth in the UK subsidiary?

Speaker #3: Harsh, we are not giving a guidance here. So, yeah. Thank you.

Amit Sanghvi: Harsha, we're not giving a guidance here, yeah.

Speaker #5: Sure, sure. No worries. Thank you. That's it from my side. I'll get back in the queue.

[Company Representative] (JM Financial): Sure. No worries. Thank you. That's it from my side. I'll get back in the queue.

Harsha Asnani: Sure. No worries. Thank you. That's it from my side. I'll get back in the queue.

Speaker #4: Thank you. We have our next question from the line of Nirali from Unique PMS. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Nirali from Unifi Capital. Please go ahead.

Operator: Thank you. We have our next question from the line of Nirali from Unifi Capital. Please go ahead.

Speaker #5: Yeah. Hi. Thank you for the opportunity. So, I have two sets of questions. One is on the consumer electronics. I understand you don't want to name the customer, but on the product side, can you qualitatively share how critical or complex your products are?

[Company Representative] (Unifi Capital): Hi. Thank you for the opportunity. I have two set of questions. One is on the consumer electronics. I understand you don't want to name the customer, but on the product side, can you qualitatively share how critical or complex your products are? Whether it is only one customer and we are in talks with more customers or not? Some qualitative direction on the consumer electronics part.

Nirali Gopani: Hi. Thank you for the opportunity. I have two set of questions. One is on the consumer electronics. I understand you don't want to name the customer, but on the product side, can you qualitatively share how critical or complex your products are? Whether it is only one customer and we are in talks with more customers or not? Some qualitative direction on the consumer electronics part.

Speaker #5: And whether it is only one customer, and if we are in talks with more customers or not? Some qualitative direction on the consumer electronics part.

Speaker #3: Yes. So Nirali, what we have said is that if you look at the presentation, and what Amit mentioned in his speech also, it's one customer where we have added five components.

Sanjay Shah: Nirali, what we have said is that if you look at the presentation and what Amit mentioned in his speech also, it's one customer where we've added five components.

Speaker #3: This is a new customer, new customer. It is pretty complicated and very complex components which we are doing. As we move, think of it this way: everything that we do would be internal components.

Amit Sanghvi: It is a new customer.

Sanjay Shah: New customer. It is pretty complicated and very complex components which we are doing.

Amit Sanghvi: Think of it this way, that everything that we do would be internal components.

Speaker #3: And as we move forward, yes, we will look at adding customers of very small devices, or small appliances, consumer electronic appliances. Very complex, by the way.

Sanjay Shah: As we move forward.

Amit Sanghvi: We will look at products of very small devices or small appliances, consumer electronic appliances. Very complex, by the way.

[Company Representative] (Unifi Capital): Okay.

Nirali Gopani: Okay.

Speaker #3: A lot of these components would be more complex than what we actually manufacture in our pens and autoinjectors.

Amit Sanghvi: A lot of these components would be more complex than what we actually manufacture in our pens and auto-injectors.

Speaker #5: Okay. Interesting. And secondly on the healthcare side. So any update on we were in talks with we were in talks with innovators. So any directionally how are we moving on that side?

[Company Representative] (Unifi Capital): Okay. Interesting. Secondly, on the healthcare side, one, any update on? We were in talks with innovators. Any directionally, how are we moving on that side? In your opening comments, you also mentioned that other than GLP-1 and insulin, you are working on a few other healthcare products. If you can spend some time on that.

Nirali Gopani: Okay. Interesting. Secondly, on the healthcare side, one, any update on? We were in talks with innovators. Any directionally, how are we moving on that side? In your opening comments, you also mentioned that other than GLP-1 and insulin, you are working on a few other healthcare products. If you can spend some time on that.

Speaker #5: And in your opening comments, you also mentioned that other than GLP-1 and insulin, you are working on a few other healthcare products. If you can spend some time on that.

Speaker #3: Yeah. Look, what we are working actively on first is emergency use. Emergency use typically has a very high reliability requirement, which is mandated by the US FDA.

Amit Sanghvi: Look, what we are working actively on is, first is emergency use. Emergency use typically has a very high reliability requirement, which is mandated by the US FDA. We're working on emergency use auto-injectors that can support customers across the world on molecules like epinephrine. It's not just epinephrine, but there are some molecules which are under confidentiality, so I will not name them. Second is that we're looking at sustainable solutions for auto-injectors. Essentially, you have close to 1 billion auto-injectors that end up in the landfill every year, just based on semaglutide and tirzepatide therapy. We're trying to come up with, and we're looking at launching by the end of the year, our reusable auto-injector. The third therapy we're working on are on-body injectors. On-body injectors are typically used in oncology treatments.

Speaker #3: So we're working on emergency use auto-injectors that can support customers across the world on molecules like epinephrine. It's not just epinephrine, but there are some molecules which are under confidentiality.

Speaker #3: So I will not name them. Second is that we're looking at sustainable solutions for auto-injectors. Essentially, auto-injectors—you have close to a billion auto-injectors that end up in the landfill every year.

Speaker #3: Just based on semaglutide and tirzepatide therapy, we're trying to see—we're trying to come up with, and we're looking at launching by the end of the year, our reusable auto injector.

Speaker #3: And the third therapy we're working on is on-body injectors. So, on-body injectors are typically used in oncology treatments. We're looking at a molecule and developing the program further on—again, biologics or biosimilars—but we've got a delivery range from 3 mL to about 23 mL.

Amit Sanghvi: We're looking at a molecule and developing the program further on, again, biologics or biosimilars, but we've got a delivery range from 3 ml to about 23 ml. We're not sure if we can do 23 ml, but from 3 ml to 15 ml is likely possible to be done on our platform. Those are currently under talks.

Speaker #3: We're not sure if we can do 23 mL, but from 3 mL to 15 mL is likely possible to be done on our platform.

Speaker #3: So, those are currently under talks.

Speaker #5: And on the innovator side?

[Company Representative] (Unifi Capital): On the innovator side?

Nirali Gopani: On the innovator side?

Speaker #3: On the innovator side, like I said, I actually made it a part of my speech. I am quite confident that we'll get somewhere over the next four to six quarters.

Amit Sanghvi: Innovator side, like I said, I am actually made it a part of my speech. I am quite confident that we will get somewhere over the next 4 to 6 quarters. We have dedicated staff now, senior industry leaders, both in the US as well as in Europe. We are very hopeful that we can make some sort of an announcement in the next 6 quarters.

Speaker #3: We have dedicated staff now—senior industry leaders, both in the US as well as in Europe. We're very hopeful that we can make some sort of announcement in the next six quarters.

Speaker #5: Perfect. And just one last clarification: so semiconductor side revenue should start from Q4 of this financial year, right?

[Company Representative] (Unifi Capital): Perfect. Just one last clarification. semiconductor side revenue should start from Q4 of this financial year, right?

Nirali Gopani: Perfect. Just one last clarification. semiconductor side revenue should start from Q4 of this financial year, right?

Speaker #3: Yes, that's the current Q4 semiconductor revenue. Yes, yes, yes, yes.

Amit Sanghvi: Yes. That is the current Q4 semicon revenue. Yes.

Speaker #5: Perfect. Thank you so much for answering my question.

[Company Representative] (Unifi Capital): Okay. Thank you so much for answering my questions.

Nirali Gopani: Okay. Thank you so much for answering my questions.

Speaker #3: All right. Thank you.

Amit Sanghvi: All right. Thank you.

Speaker #4: Thank you. We have our next question from the line of Akhil Parikh from 361 Capital. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Akhil Gupta from 361 Capital. Please go ahead.

Operator: Thank you. We have our next question from the line of Akhil Gupta from 361 Capital. Please go ahead.

Speaker #5: Yes, thanks for the opportunity, and many congratulations to the entire team for solid execution. Amit, in your opening remarks, you highlighted that we have afforded two heads.

Akhil Gupta: Yeah. Thanks for the opportunity, and many congratulations to the entire team for solid execution. Amit, in your opening remarks, you highlighted that you have appointed two heads, based out of Europe and US, probably for getting contracts from innovator brands. Would you be able to share some color on their background from where they have come from, and probably the internal discussion with regards to what their key roles would be? That's my first question.

Speaker #5: Based out of Europe and the US, probably for getting contracts from innovator brands. Would you be able to share some color on their background—where they have come from—and probably the internal discussion with regards to what their key roles would be?

Speaker #5: That's my first question.

Speaker #3: Yes. So our European business head comes from a education. He's done his he's from a he's done a master's from HEC Paris. And business school from Burgundy School of Business.

Amit Sanghvi: Yes. Our European business head comes from a Well, education, he's done his master's from HEC Paris, and business school from Burgundy School of Business, and long experience in medical devices, drug delivery particularly. He's also worked in other industries. Our US head comes from all of my competitors and some, essentially West, Phillips-Medisize, Pezo, B. Braun, Fresenius, Shaily.

Speaker #3: And long experience in medical devices, drug delivery particularly. But he's also worked in other industries. Our US head comes from all of my competitors and some essentially: West, Philips, Medtronic, Stevenato, Hasselmeier, SHL.

Speaker #5: So, and the roles probably worked on what they're supposed to do. If you can throw some colors.

Akhil Gupta: Sure. The roles, probably what they are supposed to do, if you can throw some color.

Speaker #3: Sorry, can you repeat that? You just said it was all.

Amit Sanghvi: Sorry, can you repeat that? You were just breaking.

Akhil Gupta: No, I am saying in terms of the internal discussion with regards to what their roles would be or KRAs would be, if you can throw some color on it.

Speaker #5: No, I'm saying in terms of the internal discussion with regards to what their roles would be, or KRAs would be, if we can throw some color on it.

Speaker #3: I mean, their heads of respective regions, heads of business development for the respective regions. And the role is—so, look, when you work with innovators, there is quite a lot of technical discussion.

Amit Sanghvi: They are heads of respective regions, heads of business development for the respective regions. Their role is. Look, when you work with innovators, there is quite a lot of technical discussion. While they are commercial roles, they are fully responsible for liaising and getting projects scoped out and spending the time and resources needed with the development teams to meet the customer's objectives. It will be an end-to-end role.

Speaker #3: So, while they're commercial roles, they are fully responsible for liaising and getting projects scoped out, and spending the time and resources needed with the development teams to meet the customers' objectives.

Speaker #3: So, it'll be an end-to-end role.

Speaker #5: Sure, good to hear that. And my second and last question is with regards to our consumer segment, right? It has been on a declining trend for some time.

Akhil Gupta: Sure. Good to hear that. My second and last question is, with regards to our consumer segment, and it has been on a declining trend for some time, and its contribution is reducing on a quarter-on-quarter basis. How should one view that it's a next three years perspective, right? We are now getting more and more into high-end tech and science-driven precision engineering manufacturing. Will it make sense to have this portion of the business at three or five years down the line? That's all from my side.

Speaker #5: And its contribution has been reducing on a quarter-on-quarter basis. How should one view that in terms of a three-year perspective, right? We are now getting more and more into high-end tech and science-driven, precision engineering manufacturing.

Speaker #5: Will it make sense to have this portion of the business at three or five years down the line? That's all from my side.

Speaker #3: Yeah, so I think the way we look at it, to Shaily's overall performance, I don't think it's going to make much of a difference.

Amit Sanghvi: I think the way we look at it, to Shaily's overall performance, I don't think it's going to make much of a difference. We don't know what happens in three years. What happens over a period of three years. Essentially, Europe and North America need to see growth for the home furnishings business to do well. While we're adding new customers, we think we're in a fairly decent position for now.

Speaker #3: We don't know what happens in three years. What happens over a period of three years? Essentially, Europe and North America need to see growth for the home furnishings business too.

Speaker #3: Do well. We're also adding while we're adding new customers, we think we're in a fairly decent position. We're not yeah. And okay, just for your information, if you look at within quarter four and quarter one, the business has grown.

Sanjay Shah: Yeah. Ashish, just for your information, if you look at between Q4 and Q1, the business has grown. When you look at Q1 to Q1 year, there has been a de-growth on the business. Between Q4 and Q1, the business has grown.

Speaker #3: It's not a... when you look at Q1 to Q1, yeah, there has been an increase in the business, but between Q4 and Q1, the business has grown.

Speaker #5: So, from your perspective, how should I look at it?

Akhil Gupta: From a full year perspective, how should we look at it?

Amit Sanghvi: It's difficult. I don't think we'll be able to give you an answer. I don't think it will make a difference to overall Shaily's bottom line.

Speaker #3: It's difficult. I don't think we'll be able to give you an answer. But I don't think it will make a difference to overall Shaily's bottom line.

Speaker #3: And I think what we also had said when we did the Q4 call is that this business could probably not grow in the current year.

Sanjay Shah: I think, Amit, what we also had said when we did the Q4 call, this business could probably not grow in the current year. We'll remain at the level which we did in FY26.

Speaker #3: So, we're coming at a level if we didn't, FY26.

Speaker #5: Sure, sure. Thank you so much, and best of luck for the coming quarters.

Akhil Gupta: Sure. Thank you so much, and best of luck for coming quarters.

Speaker #3: Thank you. Thanks, okay.

Speaker #4: Thank you. I remind all participants, please restrict yourselves to only two questions per participant. Should you have a follow-up question, we request that you rejoin the queue.

Amit Sanghvi: Thank you.

Sanjay Shah: Thank you, Ashish.

Sanjay Shah: Thank you. A reminder to all participants, please restrict yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Sanjay Kumar from ICICI PMS. Please go ahead.

Operator: Thank you. A reminder to all participants, please restrict yourself to only two questions per participant. Should you have a follow-up question, we request you to rejoin the queue. We have our next question from the line of Sanjay Kumar from ICICI PMS. Please go ahead.

Speaker #4: We have our next question from the line of Sanjay Kumar from iThoughtPMS. Please go ahead.

Speaker #6: Hi, sir. So, first question on the consumer electronics. Our industrial business segment has grown 15%. So, have you started supplying the five parts for this customer?

Sanjay Kumar: Hi, Ashish. First question on the consumer electronics. Our industrial business segment has grown 15%. Have you started supplying the 5 parts for this customer? From current capacity, what revenue can we do in consumer electronics from our existing capacities?

Speaker #6: And from current capacity, what revenue can we do in consumer electronics from our existing capacities?

Speaker #3: Sanjay, we have just taken on the business. Amit mentioned earlier that we will start supplying these components by the end of the year.

Sanjay Shah: Sanjay, we have just taken on the business. Amit mentioned earlier that we will start supplying by the end of the year of these components. We actually look at a ramp-up from next year onwards.

Speaker #3: So we actually look at a ramp-up from next year onwards. We would be able to come in with—

Speaker #6: And that will be from existing capacities, right? Because our new—we have just...

Sanjay Kumar: That will be from existing capacities, right? Because you have

Speaker #3: It will be from the existing facility, but there will be some investments required in cooling, automation, and everything, which we would be doing.

Sanjay Shah: It will be from existing facility. There will be some investments which will be required in tooling and automation and everything, which we'll be doing.

Speaker #6: Okay. And what will be the capex that we'll be doing for consumer electronics and semiconductor tricks? And the timelines also for these capex, please.

Sanjay Kumar: Okay. What will be the CapEx that we'll be doing for consumer electronics and Semiconductor trays, and the timelines also for these CapEx, please?

Speaker #3: The semiconductor trays, I think we have mentioned it. If you're looking at investing about ₹5 crore and all in our existing facility, which would meet initial requirements once we start supplies, and once we know how the market develops in terms of how customers in India start filling up, that's when we will have a better idea in terms of how we would be required to make further investments.

Sanjay Shah: Semiconductor trays, I think we have mentioned it. We are looking at investing about INR 5 crores and odd in our existing facility, which would meet initial requirements. Once we start supplies and once we know how the market develops in terms of how customers in India start scaling up, that's when we will have a better idea in terms of how we would be required to make further investments. On consumer electronics, again, we have said that once we set up a plant down south, we would be looking at an investment of somewhere between INR 80 to 100 crores in that facility.

Speaker #3: On consumer electronics, again, we have said that once we set up a plant down south, we would be looking at an investment of somewhere between ₹80 to ₹100 crores in that facility.

Speaker #6: Okay. And for this consumer electronics, Amit mentioned that it is a small device, but the customer also has other devices. Can we get into these other devices, or is our scope limited to this particular device?

Sanjay Kumar: Okay. For this consumer electronics, Amit mentioned that it is a small device, but the customer also has other devices. Can we get into these other devices or is our scope limited to this particular device?

Speaker #3: We're looking at getting into the whole ecosystem. It will be a process that we need to go through. We'll walk with the customer through that, which is what we are trying to do.

Sanjay Shah: We're looking at getting into the whole ecosystem. It will be a process which we need to go through, work with the customer for that, which is what we are trying to do.

Speaker #6: Okay. Okay. Got it. All right. Thank you.

Sanjay Kumar: Okay. Got it. All right. Thank you.

Speaker #3: Thank you.

Sanjay Shah: Thank you.

Speaker #4: Thank you. We have our next question from the line of Rupesh Tatia from Long Equity Partners. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Rupesh Tatiya from Long Equity Partners. Please go ahead.

Operator: Thank you. We have our next question from the line of Rupesh Tatiya from Long Equity Partners. Please go ahead.

Speaker #6: Yeah, thank you. Thank you for the opportunity, and congratulations on the fantastic results in healthcare, in semiconductor trades, and packaging, right? I mean, what is our right to win?

Rupesh Tatiya: Yeah. Thank you. Thank you for the opportunity, and congratulations, Amit, for fantastic results in healthcare. In semiconductor trays and packaging, what is our right to win? What is the complexity of these trays? I assume it is a consumable. A bit more qualitative color, if you can give, that would be very helpful.

Speaker #6: What is the complexity of these trades? I assume it is a consumable, so a bit more qualitative color, if you can give, that would be very helpful.

Speaker #3: So Rupesh, these are very special phases. These are not trades as we call trades, but they are very, very specialized. The dimensional tolerances are extremely critical.

Sanjay Shah: Rupesh, this is very special trays. We call it trays, but it is very specialized. The dimensional tolerances are extremely critical. It's very specialized raw material, conductive plastic. There are a lot of features around it, which is very critical. Not too many players will be able to do it. Even if you look at from a global perspective, there are less than a dozen companies who do this business globally. As this ecosystem develops in India in terms of semiconductor manufacturing, this requirement would go up and we are trying to be part of the ecosystem.

Speaker #3: It's a very specialized raw material—conductive plastics. So, there are a lot of features around it which are very, very critical. Not too many players will be able to do it.

Speaker #3: Even if you look at it from a global perspective, there are less than a dozen companies who do this business globally. As this ecosystem develops in India, in terms of semiconductor manufacturing, this requirement would go up and we are trying to be part of the ecosystem.

Speaker #6: So, I mean, these are— I mean, these are trays, like you use it once and then throw them away. Is it like that? And then what would be the annual requirement in India?

Rupesh Tatiya: Amit, these are trays, like you use it once and then throw them away. Is it like that? What would be annual requirement in India? Is it in few hundred thousands or is it in millions?

Speaker #6: Is it in, like, a few hundred thousand, or is it in, like, millions?

Speaker #3: It will be in millions. As I said, this is a consumable, so it will depend on the type of capacity which is being set up in India.

Sanjay Shah: It will be in millions. As I said, this is a consumable, so it will depend on the type of capacity which is being set up in India. This would be required in a very large quantity. There is enough of information which is available online, which I think you could research and you'd get a sense in terms of what sort of market this can be.

Amit Sanghvi: It will be in millions. As I said, this is a consumable, so it will depend on the type of capacity which is being set up in India. This would be required in a very large quantity. There is enough of information which is available online, which I think you could research and you'd get a sense in terms of what sort of market this can be.

Speaker #3: This would be required in a very large quantity. There is enough of information which is available online which I think you could research and get a sense in terms of what sort of market this can be.

Speaker #6: Okay. Okay. And the second question, sorry. So, any plans to enter any of the pharma consumables? I mean, there are quite a few, and a lot of them have a lot of barriers to entry.

Rupesh Tatiya: Okay. The second question, sorry. Any plans to enter any other pharma consumables? There are quite a few, and a lot of them have a lot of barriers to entry. Are we looking at any other pharma consumables?

Speaker #6: So are we looking at any other pharma consumables?

Speaker #3: No, no, we're not looking at getting into it. We will not get into pharma consumables.

Sanjay Shah: No. We're not looking at getting into it. We will not get into pharma consumables.

Speaker #6: Okay. Okay. Thank you. Thank you for asking that question.

Rupesh Tatiya: Okay. Thank you. Thank you for answering my questions.

Speaker #3: Thank you very much.

Sanjay Shah: Thank you very much.

Speaker #4: Thank you. We have our next question from the line of Vinil Shah from Dalan Broker. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Vinay Shah from Dalal & Broacha. Please go ahead.

Operator: Thank you. We have our next question from the line of Vinay Shah from Dalal & Broacha. Please go ahead.

Speaker #5: Thank you for taking my question. Most of my questions are answered—I just had one query. If the management could speak about the opportunity, to, like, quantify the incremental time which has opened up for now with the—

Vinay Shah: Thank you for taking my question. Most of my questions are answered. I just had one query. If the management could speak about the opportunity, like quantify the incremental TAM, which has opened up for now with the.

Speaker #3: Can you answer a little louder? And if you cannot hear, please ask your question again.

Amit Sanghvi: Can you talk a little louder? We cannot hear your question.

Speaker #5: Yeah, sure, sure. Yeah. So, I just wanted to know if the management can shed some light on the opportunity—the incremental TAM which has opened up for us with the approach we feel for Seller Limited in Canada and Brazil.

Vinay Shah: Sure. I just wanted to know that if the management could shed some light on the opportunity, the incremental TAM, which has opened up for us with the approach we flew for Shaily Limited in Canada and Brazil.

Speaker #3: That's very generic. I mean, I just wanted—

Amit Sanghvi: That's a very generic

Vinay Shah: I just wanted to understand what is the opportunity for us.

Speaker #5: to understand what the opportunity is for us.

Speaker #3: I'm sorry, I'm going to struggle to answer that question. If you can be more specific, please.

Amit Sanghvi: I'm sorry. I'm still struggling to answer that question. If you can be more specific, please.

Speaker #5: So, Vinil, if you are looking at more in terms of understanding how much of the market for Brazil or Canada, I think, again, there are research reports which quantify that market.

Sanjay Shah: If you are looking at more in terms of understanding how much of this market for Brazil or for Canada, I think, again, there are research reports which qualify that market. I think we are not competent to talk about that market.

Speaker #5: I think we are not competent to call—I mean, talk about—that market in terms of what could be the market share for that.

Vinay Shah: Okay.

Sanjay Shah: You need a market share for that.

Speaker #6: Okay. Thank you.

Vinay Shah: Okay. Thank you.

Operator 2: Thank you. We have our next question from the line of Aman Vij from Astute Investment Management. Please go ahead.

Operator: Thank you. We have our next question from the line of Aman Vij from Astute Investment Management. Please go ahead.

Speaker #4: Thank you. We have our next question from the line of Aman Wicks from Aster Investment Management. Please go ahead.

Aman Vij: Good evening, Amit and Sanjay. My question is on the pen side. Given now we have already supplied maybe 5 to 10 million pens. How is the initial feedback on, say, both the main platforms from Brazil, from Canada mostly, because this is the first time we are scaling this to a very big number. Could you talk about the feedback from the customers, from our final end customers also in the last few months, how that has been with the two platforms?

Speaker #6: Good evening, Amit and Sanjay Bhai. My question is on the pen 5. So, given that we have already supplied maybe 5 to 10 million pens...

Speaker #6: So, how is the initial feedback on, say, both the main platforms—from Brazil, from Canada mostly—because this is the first time we are scaling this to a very big number?

Speaker #6: So could you talk about the feedback from the customers, from our final end customers also in the last few months? How has it had how that has been over the two platforms?

Speaker #3: So, feedback has been, let's say, above average—good. Pretty good. We're not seeing very significant issues. There are issues—not saying there aren't—but let me put it this way.

Amit Sanghvi: Feedback has been, let's say above average good, pretty good. We are not seeing very significant issues. There are issues, not saying there aren't, but let me put it this way, there is a lot more involved beyond Shaily's device manufacturing that goes into the market. I would say that we have had very less number of issues in terms of the device performance. We have trending data now on all the batch release that we do, and batch release goes through a very extensive testing. We have not seen even a statistical decline in any of our numbers. Statistically, the performance of the device is very strong.

Speaker #3: There is a lot more involved beyond Shaily's device manufacturing that goes into the market. So, I would say that we've had very few issues in terms of the device performance.

Speaker #3: And we have trending data now on all the batch release that we do. And batch release goes through very extensive testing. So we've not seen even a—we've not seen even a statistical decline in any of our numbers.

Speaker #3: So, statistically, the performance of the devices is very strong.

Speaker #6: Sure, that is helpful. Second question is on the scaling up of our customers in Brazil and Canada, and the other big geographies like Brazil.

Aman Vij: Sure. That is helpful. Second question is on the scaling up of our customers in Brazil and Canada and the other big geographies like Turkey. Is my understanding correct, maybe as of today, only five, seven players, apart from India. India, a lot of our customers have launched. Canada, Brazil, maybe less than a half a dozen customers would have launched. In the next two, three quarters, is it expected that maybe at least half a dozen more will launch and we will see a good scaling maybe Q2 or Q3 onwards?

Speaker #6: So is my understanding correct? Maybe as of today, there are only like five to seven players apart from India. So in India, a lot of our customers have launched.

Speaker #6: But Canada, Brazil, maybe less than half a dozen customers would have launched. But in the next two, three quarters, is it expected that maybe at least half a dozen more will launch, and we'll see?

Speaker #6: A good scaling may be Q2 or Q3 onwards.

Amit Sanghvi: Look, once the market has shifted already to some generic, then taking that same patient and shifting to another generic is difficult. I think Canada, we will be quite dominant in Canada. Brazil, we are number 2, I believe, in terms of launches, we should still control a very significant share in Brazil as well. If I look at what is coming up, both in Canada and Brazil, I think we will still continue with a majority position. India, to be honest, I really do not know what is going on here, markets increasing, decreasing. Once someone is taking up share from someone else and everything is playing out, then it consolidates. I think it is a good market to be in.

Speaker #3: Look, once the market has shifted already to some generic, then taking that same patient and shifting to another generic is difficult. So, I think in Canada, we will seem—we will be quite dominant in Canada.

Speaker #3: Brazil—we are number two, I believe, in terms of launches. So, we should still control a very significant share in Brazil as well. And if I look at what's coming up, both in Canada and Brazil, I think we will still continue with a majority position.

Speaker #3: India, yeah, I don't know, to be honest. I really don't know what's going on here. The market's increasing, decreasing; someone is taking up share from someone else, and everything's playing out. But then it consolidates.

Speaker #3: I think it's a good market to be in.

Aman Vij: Any light you can throw on the other big geographies which might open up very soon, like Turkey and Mexico and?

Speaker #6: Any light items on the other big geographies which might open up very soon? Like Turkey and Mexico, and...

Speaker #3: So, Mexico, Turkey, and the Middle East—so Saudi, particularly. Let's see. Aman, I don't have more information right now. But Mexico, obviously, can be a big market.

Amit Sanghvi: Mexico, Turkey, and Middle East, so Saudi particularly. Let's see. Aman, I don't have more information right now, but Mexico obviously can be a big market.

Speaker #6: Do you expect to be in the top three in all these three newer, opening-up markets also?

Aman Vij: Do you expect to be, say, top three in all these three newer opening up markets also?

Speaker #3: Why top three? I think we should be at the top—we should be the largest player.

Amit Sanghvi: Why top three? I think we should be top. We should be the largest player.

Speaker #6: Okay. So, on the demand side, at least not only for this year—you've talked about this year and you're confident of 36 million—but even next year, you are quite confident of scaling, right?

Aman Vij: Okay. Demand side, at least not only for this year, you've talked about this year, you are confident of 36 million, but even next year you are quite confident of scaling, right?

Speaker #3: I mean, yes. The short answer is yes.

Amit Sanghvi: Yes. Short answer is yes.

Speaker #6: Yeah, sure. That helps. These are my questions. Thank you.

Aman Vij: Sure. That helps. These are my questions. Thank you.

Speaker #3: Thank you.

Amit Sanghvi: Thank you.

Speaker #4: Thank you. We have our next question from the line of Ishika Kar from VJX Research. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Ishika Garg from VJX Research. Please go ahead.

Operator: Thank you. We have our next question from the line of Ishika Garg from VJX Research. Please go ahead.

Speaker #7: Hello.

Ishika Garg: Hello.

Ishika Gupta: Hello.

Speaker #3: Yeah. Hi there.

Amit Sanghvi: Yeah. Hi there.

Speaker #7: First, I finally have two questions. Firstly, have the venues from the consumer segment fallen in percentage? So I want to know if the primary reason behind this fall is the decline in the furniture market in Europe and the USA.

Vinay Shah: Sir, I kindly have two questions. Firstly is our revenue from the consumer segment has fallen in percentage. I kindly want to know the primary reason behind this fall is the fall in market of furniture in Europe and USA. What is your take on India? Is it also driven by India or India and furniture segment is kindly doing good?

Speaker #7: So, what is your take on India? Is it also driven by India, or is the Indian furniture segment finally doing well?

Speaker #3: Look, the share of our customers in India—the share of our products we supply to our customers with respect to India—is probably 2%. Yeah, this is very little.

Amit Sanghvi: Look, the share of our products we supply to our customers with respect to India is probably 2%.

Sanjay Shah: Okay.

Amit Sanghvi: It's very negligible, so it makes no difference whether India market picks up or doesn't. The reality is the share in Europe and North America has degrown. That's where we are.

Speaker #3: It's very negligible, so it makes no difference whether the India market picks up or not. And the reality is the share in Europe and North America has de-grown.

Speaker #3: So that's where we are.

Speaker #7: And first, thank you for this. Second question is, are revenue segment from the export segment has fallen? So I want to know in absolute term what's the case like in absolute term the export revenue is still greater than the domestic or is it that the domestic segment has picked up faster or at a higher rate than the export segment?

Krishnabha: Sir, thank you for that. Second question is, our revenue segment from the export segment has fallen. I want to know in absolute term, what's the take like? In absolute term, the export revenue is still greater than the domestic or is it that the domestic segment has picked up faster or at a higher rate than the export segment?

Ishika Gupta: Sir, thank you for that. Second question is, our revenue segment from the export segment has fallen. I want to know in absolute term, what's the take like? In absolute term, the export revenue is still greater than the domestic or is it that the domestic segment has picked up faster or at a higher rate than the export segment?

Speaker #3: Ishikar, what's happening is, as I mentioned in the speech, our sales in healthcare have gone up quite a lot. While healthcare sales are for the overall global market, we supply to a lot of domestic pharma companies, who basically then put in the drug and then export it out.

Sanjay Shah: Krishnabha, what's happened is, as I mentioned in the speech, our sales on healthcare have gone up quite a lot. While healthcare sales are for overall global markets, we supply to a lot of it goes to domestic pharma companies who basically then put in the drug and then export it out. That's one reason for the mix changing. Secondly, we have seen some degrowth on our consumer business, which is mainly export-oriented, where the consumer business revenue has come down. That's another reason for the lower export percentage.

Speaker #3: So, that's one reason for the mix changing. Second is, yes, we have seen some degrowth in our consumer business, which is mainly export oriented.

Speaker #3: Where the consumer business revenue has come down, that's another reason for the lower export percentage.

Speaker #7: And so, what do you look at in the future? Still, if we look at quarter one, FY27, is the majority of the revenue still coming from the export segment?

Krishnabha: Sir, what do you look in future? Still if you look in Q1 FY27, still majority of the revenue is coming from export segment. What's your outlook in the future? Like in future, domestic revenue will be overtaking the export revenue.

Ishika Gupta: Sir, what do you look in future? Still if you look in Q1 FY27, still majority of the revenue is coming from export segment. What's your outlook in the future? Like in future, domestic revenue will be overtaking the export revenue.

Speaker #7: So, what's your outlook for the future? In the future, will domestic revenue overtake export revenue?

Sanjay Shah: Krishnabha, as we move forward, I think our healthcare business is going to grow. We are going to look at more growth on our semiconductor and consumer electronics business, which will again be more domestic-focused. I think the domestic business overall will grow as a percentage.

Speaker #3: Ishikar, as we move forward, I think our export and our healthcare business are going to grow. We are going to look at more growth in our semiconductor and consumer electronics business, which will again be more domestically focused.

Speaker #3: So, I think the domestic business overall will grow as a percentage.

Speaker #7: Okay, so thank you for your insights.

Krishnabha: Okay, sir. Thank you, sir, for your insight.

Ishika Gupta: Okay, sir. Thank you, sir, for your insight.

Speaker #3: Thank you very much. Thank you.

Sanjay Shah: Thank you very much.

Amit Sanghvi: Thank you.

Speaker #4: Thank you. We have our next question from the line of Nitesha from Investech. Please go ahead.

Operator 2: Thank you. We have our next question from the line of Ritesh Shah from Investec. Please go ahead.

Operator: Thank you. We have our next question from the line of Ritesh Shah from Investec. Please go ahead.

Ritesh Shah: Hi. Thanks for the opportunity again. Two questions. One is, as we are growing at a very fast scale, Amit, the question is specifically for you. How are we looking at retaining employees? Do we have any further plans of ESOP schemes? I think that's one. Second, you did indicate emergency use auto-injectors, reusable auto-injectors, and on-body injectors. At what stage of development are we for all these three, and what will be our moat that we bring on the table with respect to these three products? Thank you.

Speaker #8: Hi. Thanks. Thanks for the opportunity again. Two questions. One is, India is growing at a very fast scale. Aman, the question is specifically for you.

Speaker #8: How are we looking at retaining employees? Do we have any further plans for ESOP schemes? I think that's one. And second, you did indicate emergency-use auto injectors, reusable auto injectors, and on-body injectors.

Speaker #8: At what stage of development are we for all these three? And what will be our moat that we bring to the table with respect to these three products?

Speaker #8: Thank you.

Speaker #3: I'll take your last question first, Nitesh. The reusable auto-injector—we've brought it to a point where we've tested, or we will be testing, performance in the current month or early next month.

Amit Sanghvi: I'll take your last question first, Ritesh. The reusable auto-injector, we've gotten it to a point where we will be testing performance in the current month or early next month. We will be showcasing it for the first time at CPhI in Milan. Let's say it's quite advanced. On the emergency use auto-injector, it's a program that we've been working on for roughly 18 months, and we will bring it to a closure by the end of 2027. It's based on the Toby auto-injector, but with key changes in design. It's got a automatic needle insertion into the patient. You have to understand that, with these emergency use, a patient must get drug or they will die. Automatic injection, dose delivery, and retraction. Very high level of reliability.

Speaker #3: And we will be showcasing it for the first time at CPHI in Milan. So let's say it's quite advanced. On the emergency use auto-injector, it's a program that we've been working on for roughly 18 months.

Speaker #3: And we will bring it to a close by the end of '27. It's a device where you have essentially—sorry, sorry, just a second.

Speaker #3: It's based on the Toby auto injector, but with key changes in design. So it's got an automatic needle insertion into the patient. And you have to understand that, with these emergency uses, a patient must get the drug or they will die.

Speaker #3: Automatic injection, growth, delivery, and retraction—very, very high level of reliability. So, we have to statistically prove through testing and performance that we meet 99.999% reliability on activation of the device.

Amit Sanghvi: We have to statistically prove through testing and performance that we meet 99.999% reliability on activation of the device. It's going to be a very novel device and something that we feel is not many of our competitors are doing. In fact, I'm not seeing any of our competitors do a single emergency use device. Then on body is more getting a partnership and moving on with the development of the Mira, something that we prototyped about two, three years ago. Now to your first question on talent. I think we're quite well respected in the industry. We know people who want to come and work for us and work with us. That's how we recruited our business development guys in both US and Europe. Retaining talent, training them, we're spending a lot of money on training our talent.

Speaker #3: So it's going to be a very, very novel device, and something that we feel not many of our competitors are doing. In fact, I'm not seeing any of our competitors do a single emergency use device.

Speaker #3: And then, on-body is more about getting a partnership and moving on with the development of the Mira, something that we prototyped about two, three years ago.

Speaker #3: And now to your first question on palette. I think, look, we're quite well respected in the industry. In fact, we know people who want to come and work for us and work with us.

Speaker #3: That's how we recruited our business development guys in both the US and Europe—retaining talent, training them. We're spending a lot of money on training our talent.

Amit Sanghvi: Since Joe has come on board and has now become fully active, there is also, let's call it new ideas or ideas from someone who has got a lot of years of experience in the industry on manufacturing quality and automation. We are in that journey. We are doing well. I think we can retain the talent. It is not so much ESOPs. We pay well. There are ESOP schemes that other employees will become eligible for in the coming years. For now, I do not see a challenge retaining or hiring new employees. Our culture, Ritesh. It is a fun environment to work in. You should try it out.

Speaker #3: Since Joe has come on board and has now become fully active, there's also, let's call it, new ideas or ideas from someone who's got a lot of years of experience in the industry on manufacturing, quality, and automation.

Speaker #3: So we're in that journey where we're doing well. I think we can retain the talent. It's not so much ESOPs—we pay well. There are ESOP schemes that other employees will become eligible for in the coming years.

Speaker #3: But for now, I don't see a challenge retaining or hiring new employees. And our culture, Nitesh—it's a fun environment to work in. You should try it out.

Speaker #8: Thank you. Yep. Just to go back to the first one, how big can these three products be? Like, GSB one is huge. Now, these three products that we are looking at—there are products in the marketplace as well.

Ritesh Shah: Thank you. Yep. Just to go back to the first one, how big can these three products be? GLP-1 is huge. These three products what we are looking at, there are products in the marketplace as well. How are we looking at it from a scale standpoint? Is it the new GLP-1 kind of cash flow generator or what is the thought process over here from a profitability and a scale-up standpoint?

Speaker #8: So how are we looking at it from a scale standpoint? Like, is it the new GSB one kind of cash flow generator, or what is the thought process over here from a profitability and scale-up standpoint?

Speaker #3: I think of it this way. Something like emergency use would be mid-single digit millions to high single digit maybe low double digit millions. But you essentially given the complexity of the therapy, you have a device cost of 6 to 10 dollars per device, right?

Amit Sanghvi: Think of it this way. Something like emergency use would be mid-single-digit millions to high-single-digits, maybe low-double-digit millions. You essentially, given the complexity of the therapy, you have a device cost of $6 to $10 per device, right? It is an expensive therapy. It is an expensive proposition to design and manufacture it. With the risk comes the reward. Something like on-body injector would be in the range of $15 to $25 or $35, for example. Again, you would be looking at very low millions, maybe one or two, but a high-value, high-margin therapy. On the reusable auto-injector, we do not know. It is our take on what the industry needs. We find out as we showcase the product. We do not know what the market will look like.

Speaker #3: It's an expensive therapy. It's an expensive proposition to design and manufacture it. But with the risk comes the reward. Something like an on-body injector would be in the range of $15 to $25 or $35, for example.

Speaker #3: Again, you'd be looking at low millions, very low millions, maybe one or two, but a high-value, high-margin therapy. And on the reusable auto injector, we don't know.

Speaker #3: It's our take on what the industry needs. We find out as we showcase the product. We don't know what the market can look like.

Speaker #8: Perfect, this is useful. Just a quick follow-up: is there anything incremental on Cipla? We were working on the inhalers over there—has there been any progress? That's one.

Ritesh Shah: Perfect. This is useful. Just quick follow-ups. Anything incremental on Cipla? We were working on the inhalers over there. Is there any progress? That is one. Secondly, for the Abu Dhabi facility, what are the timelines we are looking at? Has the orders placed in for the machinery, civil construction started? How should we look at it given it will impact FY29 volumes for sure?

Speaker #8: And secondly, for the Abu Dhabi facility, what are the timelines we are looking at? Have the orders been placed for the machinery, and has civil construction started?

Speaker #8: How should we look at it, given it would impact FY29 volumes for sure?

Amit Sanghvi: Ritesh, I don't think we have ever said anything about Cipla and inhalers, to be very honest. We are not doing any inhalers at the moment. As far as Abu Dhabi is concerned, the site needs to be in production by end of FY28.

Speaker #3: Anything about Cipla and inhalers, to be very honest, we are not doing any inhalers at the moment. And as far as Abu Dhabi is concerned, the site needs to be in production by the end of FY28.

Speaker #8: Sure, this is very useful. Thank you so much. All the very best. Thank you.

Ritesh Shah: Sure. This is very useful. Thank you so much. All the very best. Thank you.

Speaker #3: Thanks a lot.

Amit Sanghvi: Thanks a lot.

Speaker #8: Thank you. Ladies and gentlemen, that was the last question of the day. I now hand the conference over to the management for closing comments.

Operator 2: Thank you. Ladies and gentlemen, that would be the last question of the day, and I now hand the conference over to the management for closing comments.

Operator: Thank you. Ladies and gentlemen, that would be the last question of the day, and I now hand the conference over to the management for closing comments.

Speaker #3: Thank you very much. As we move through FY27, we remain encouraged by the momentum in our healthcare business and the progress we're seeing across our strategic growth initiatives, like consumer electronics and semiconductors.

Amit Sanghvi: Thank you very much. As we move through FY27, we remain encouraged by the momentum in our healthcare business and the progress we're seeing across our strategic growth initiatives like consumer electronics and tech trays. While certain end markets continue to experience near-term demand softness, our diversified business model, expanding healthcare platforms, and disciplined execution positions us well for the future. Thank you, everyone, for joining today's call and for your continued interest and support. Should you have any further questions, feel free to reach out to SGA, our investor relations advisors. Thank you very much and have a great evening.

Speaker #3: While certain end markets continue to experience near-term demand softness, our diversified business model, expanding healthcare platforms, and disciplined execution position us well for the future.

Speaker #3: Thank you, everyone, for joining today's call and for your continued interest and support. Should you have any further questions, feel free to reach out to SGA, our investor relations advisors.

Speaker #3: Thank you very much, and have a great evening.

Speaker #8: Thank you, sir. On behalf of Shaily Engineering's Plastics Limited, that concludes the conference. Thank you for joining us and you may now disconnect your lines.

Operator 2: Thank you, sir. On behalf of Shaily Engineering Plastics Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.

Operator: Thank you, sir. On behalf of Shaily Engineering Plastics Limited, that concludes the conference. Thank you for joining us, and you may now disconnect your lines.

Browse all earnings call transcripts

Q1 2027 Shaily Engineering Plastics Ltd Earnings Call

Request TrialDemo

Shaily Engineering Plastics

Earnings