Q1 2027 Gujarat Themis Biosyn Ltd Earnings Call

August 10, 2026

Speaker #1: Ladies and gentlemen, you have been connected to the Gujarat Themis Biosyn Limited conference call. Please stay connected; the call will begin shortly. Ladies and gentlemen, you have been connected to the Gujarat Themis Biosyn Limited conference call.

Operator: Ladies and gentlemen, you have been connected to Gujarat Themis Biosyn Limited conference call. Please stay connected. The call will begin shortly. Ladies and gentlemen, you have been connected to Gujarat Themis Biosyn Limited conference call. Please stay connected. The call will begin shortly. Thank you. Ladies and gentlemen, good day and welcome to Gujarat Themis Biosyn Limited Q1 FY27 earnings conference call hosted by 361 Capital Market Private Limited. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations of the company as on date of this call.

Speaker #1: Please stay connected. The call will begin shortly. Thank you. Ladies and gentlemen, good day, and welcome to the Gujarat Themis Biosyn Limited Q1 FY27 Earnings Conference Call, hosted by 361 Capital Market Private Limited.

Speaker #1: 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 a guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator: These statements are not guarantee of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant clients will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Hrishikesh Patole from 361 Capital Market Private Limited. Thank you, and over to you, sir.

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

Speaker #1: I now hand over the conference to Mr. Rishikesh Patole from 361 Capital Market Private Limited. Thank you. Over to you, sir.

Speaker #2: Thank you, Pari. Good afternoon, everyone. On behalf of 361, I welcome you all to the Q1 FY27 earnings conference call of Gujarat Themis Biosyn.

Hrishikesh Patole: Thank you, Pari. Good afternoon, everyone. On behalf of 361, I welcome you all to the Q1 FY27 earnings conference call on Gujarat Themis Biosyn. Hope everyone is in good health and doing well. On behalf of GTBL today, we have with us Dr. Sachin Patel, Managing Director, Mr. Krupesh Patel, Chief Financial Officer. I now hand over the call to Sachin for the management's opening remarks, post which we'll open the session for Q&A. Over to you, sir.

Speaker #2: Hope everyone is in good health and doing well. On behalf of GTBL, today we have with us Dr. Sachin Patel, Managing Director, and Mr. Krupesh Patel, Chief Financial Officer. I will now hand over the call to Sachin for the management's opening remarks, post which we'll open the session for Q&A.

Speaker #2: Over to you, sir.

Speaker #3: Thank you very much, Rishikesh. Good afternoon, everyone. On behalf of GTBL, I welcome all of you to our Q1 FY27 earnings call to discuss our financial performance and business updates.

Sachin Patel: Thanks very much, Hrishikesh. Good afternoon, everyone. On behalf of GTBL, I welcome all of you to our Q1 FY27 earnings call to discuss our financial performance and business updates. As Hrishikesh mentioned, on the call with me today is Krupesh, our CFO. It gives me great pleasure to address you all today as GTBL stands at an important transformational juncture in its growth journey. Over the last few years, we have consistently spoken about transforming GTBL into a larger, more diversified, and innovation-driven pharmaceutical company. Today, we are beginning to see this strategy take tangible shape. While our quarterly financial performance remains important, what is more significant is the strategic platform we are building for the next decade of growth. The global pharmaceutical industry continues to evolve with increasing demand for complex APIs, specialty pharmaceutical ingredients, and fermentation-based products.

Speaker #3: As Rishikesh mentioned, on the call with me today is Krupesh, our CFO. It gives me great pleasure to address you all today, as GTBL stands at an important, transformational juncture in its growth journey.

Speaker #3: Over the last few years, we have consistently spoken about transforming GTBL into a larger, more diversified, and innovation-driven pharmaceutical company. Today, we are beginning to see this strategy take tangible shape.

Speaker #3: While our quarterly financial performance remains important, what is more significant is the strategic platform we are building for the next decade of growth. The global pharmaceutical industry continues to evolve, with increasing demand for complex APIs, specialty pharmaceutical ingredients, and fermentation-based products.

Speaker #3: Customers are seeking partners that offer scientific expertise, process development, regulatory compliance, and end-to-end manufacturing capabilities. We believe these structural trends create a compelling opportunity for GTBL, and our strategy is focused on building capabilities that allow us to participate in higher-value opportunities across the pharmaceutical value chain.

Sachin Patel: Customers are seeking partners that offer scientific expertise, process development, regulatory compliance, and end-to-end manufacturing capabilities. We believe these structural trends create a compelling opportunity for GTBL, and our strategy is focused on building capabilities that allow us to participate in higher value opportunities across the pharmaceutical value chain. The strategic initiatives undertaken over the last 18 to 24 months are all connected by one common objective, transforming GTBL into an integrated fermentation-led pharmaceutical platform. Our ongoing multi-phase capital expenditure program is expanding our fermentation infrastructure, strengthening our R&D capabilities, and creating downstream API manufacturing capacity. These investments are intended to diversify our product portfolio, deepen technology capabilities, and enable greater value addition. Historically, the company has developed deep expertise in fermentation-based intermediates. Going forward, we aim to progressively move downstream into APIs and other high-value products, thereby capturing a larger share of the pharmaceutical value chain.

Speaker #3: The strategic initiatives undertaken over the last 18 to 24 months are all connected by one common objective: transforming GTBL into an integrated, fermentation-led pharmaceutical platform.

Speaker #3: Our ongoing multi-phase capital expenditure program is expanding our fermentation infrastructure, strengthening our R&D capabilities, and creating downstream API manufacturing capacity. These investments are intended to diversify our product portfolio, deepen technology capabilities, and enable greater value addition.

Speaker #3: Historically, the company has developed deep expertise in fermentation-based intermediates. Going forward, we aim to progressively move downstream into APIs and other high-value products, thereby capturing a larger share of the pharmaceutical value chain.

Speaker #3: Moreover, we have been strategizing to complement this organic growth with inorganic expansion opportunities. As you might be aware, we announced two major strides in that direction recently.

Sachin Patel: Moreover, we have been strategizing to complement this organic growth with inorganic expansion opportunities. As you might be aware, we announced two major strides in that direction recently. We recently announced plans to acquire MicroBiopharm Japan, which specializes in precision fermentation and various other technologies and therapy areas. This acquisition provides access to advanced fermentation technologies, specialized scientific talent, proprietary knowhow, more manufacturing muscle, and an established R&D platform. The move adds therapy areas across immunosuppressants, oncology, and anti-infectives, as well as technical capabilities such as peptides, plasmids, ADCs, and enzyme engineering. Overall, this would enhance our capabilities across fermentation science, process development, and next generation products, accelerates our aspiration of becoming a globally integrated fermentation-based CDMO player. Complementing our technology expansion is acquisition of selected global brands from Sanofi. As a part of this, we are acquiring 13 established brands in the anti-TB and anti-infective segments.

Speaker #3: We recently announced plans to acquire Microbiopharm Japan, which specializes in precision fermentation and various other technologies and therapy areas. This acquisition provides access to advanced fermentation technologies, specialized scientific talent, proprietary know-how, more manufacturing muscle, and an established R&D platform.

Speaker #3: The move adds therapy areas across immunosuppressants, oncology, and anti-infectives, as well as technical capabilities such as peptides, plasmids, ADCs, and enzyme engineering. Overall, this will enhance our capabilities across fermentation science, process development, and next-generation products, and accelerate our aspiration of becoming a globally integrated, fermentation-based CDMO player.

Speaker #3: Complementing our technology expansion is the acquisition of selected global brands from Sanofi France. As part of this, we are acquiring 13 established brands in the anti-TB and anti-infective segments.

Speaker #3: This portfolio gives us access to 55 countries across Europe, Middle East, and Africa markets. While Microbiopharm strengthens our upstream scientific and manufacturing capabilities, the Sanofi portfolio expands our downstream commercial presence through established brands and international marketing access.

Sachin Patel: This portfolio gives us access to 55 countries across Europe, Middle East, and Africa markets. While MicroBiopharm strengthens our upstream scientific and manufacturing capabilities, the Sanofi portfolio expands our downstream commercial presence through established brands and international marketing access. It also creates opportunities for forward integration from intermediates to APIs and finished formulations. Together, these acquisitions substantially broaden our therapy areas such as oncology, immunosuppressants, et cetera, as well as give us a global geographical footprint. Viewed as a whole, these initiatives present a clear strategic roadmap. Expanded fermentation capacity supports manufacturing scale. Investments in R&D strengthen innovation. API expansion enables forward integration. MicroBiopharm enhances technology capabilities, the Sanofi portfolio broadens our commercial reach. Collectively, these initiatives position GTBL as an innovation-led pharmaceutical company with a growing CDMO capability, a wide therapy area, and a strong foundation for sustainable long-term growth.

Speaker #3: It also creates opportunities for forward integration from intermediates to APIs and finished formulations. Together, these acquisitions substantially broaden our therapy areas, such as oncology and immunosuppressants, as well as give us a global geographical footprint.

Speaker #3: Viewed as a whole, these initiatives present a clear strategic roadmap: expanded fermentation capacity supports manufacturing scale; investment in R&D strengthens innovation; API expansion enables forward integration; Microbiopharm enhances technology capability; and the Sanofi portfolio broadens our commercial reach.

Speaker #3: Collectively, these initiatives position GTBL as an innovation-led pharmaceutical company with a growing CDMO capability, a wide therapy area, and a strong foundation for sustainable, long-term growth.

Speaker #3: Now, I would like to hand it over to Krupesh to take you through the financial performance of the quarter. Over to you, Krupesh.

Sachin Patel: Now, I would like to hand it over to Krupesh to take you through the financial performance of the quarter. Over to you, Krupesh.

Speaker #2: Thank you, Sachinbhai. Good afternoon, everyone. Revenue from operations for Q1 FY27 stood at ₹43.8 crore, compared with ₹35.9 crore in the corresponding quarter last year, an increase of 22.1% year-on-year.

Krupesh Patel: Thank you, Sachin. Good afternoon, everyone. Revenue from operations for Q1 FY27 stood at INR 43.8 crore compared with INR 35.9 crore in the corresponding quarter last year, an increase of 22.1% year on year. This growth came in from a robust increase in sales volumes, which reflects a healthy demand outlook for our products. EBITDA for the quarter grew by 49.4% year on year to INR 20.8 crore with an EBITDA margin of 47.5%, up by 867 basis points. Profit after tax stood at INR 11.1 crore compared with INR 9.1 crore in Q1 FY26, reflecting a growth of 22.1% year on year. Our balance sheet remains healthy and provides the flexibility to continue investing in our long-term growth initiatives. With that, we can now open the floor for questions.

Speaker #2: This growth came from a robust increase in sales volumes, which reflects a healthy demand outlook for our products. EBITDA for the quarter grew by 49.4% year-on-year to ₹20.8 crore, with an EBITDA margin of 47.5%, up by 867 basis points.

Speaker #2: Profit after tax stood at ₹11.1 crore compared with ₹9.1 crore in Q1 FY26, reflecting a growth of 22.1% year-on-year. Our balance sheet remains healthy and provides the flexibility to continue investing in our long-term growth initiatives.

Speaker #2: With that, we can now open the floor for questions.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question, please press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, you 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. The first question is from the line of Harsh Upadhyay, an individual investor. Please proceed with your question, sir.

Speaker #1: Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harsh Upadhyay, an individual investor.

Speaker #1: Please proceed with your question, sir.

Speaker #2: Yeah, ma'am. Am I audible?

Harsh Upadhyay: Yeah. Am I audible?

Speaker #3: Yes, clearly.

Sachin Patel: Yes, clearly.

Speaker #1: Yes, sir.

Operator: Yes, sir.

Speaker #2: Yeah. Good afternoon, Sachin sir. It has been almost three years since we last had a phone call, sir. So, first of all, my question is: what was the reason behind the almost three years of silence?

Harsh Upadhyay: Yeah. Good afternoon, Sachin, sir. It has been almost three years since we last had a con call, sir. First of all, my question is that what was the reason behind the almost three years of silence?

Speaker #3: Sorry, is that the first question or the only question?

Sachin Patel: Is that the first question or the only question?

Speaker #2: No, no. It is the first question, sir.

Harsh Upadhyay: No, it is the first question, sir.

Speaker #3: Okay. No, I think you're right. We have been silent for the past three years. I think we have been in a mode whereby our business has been pretty, I would say, flat, but at the same time we've been sold out on capacity and we have been in a working phase whereby we've been investing in capex and building the infrastructure that we have.

Sachin Patel: Okay. No, I think you're right. We have been silent for the past three years. I think we have been in a mode whereby our business has been pretty, I would say flat, but at the same time, we've been sold out on capacity, and we have been in a working phase whereby we've been investing in CapEx and building the infrastructure that we have. Admittedly, we have been late by almost about a year in terms of the projects that have been implemented, but now it's all ready to go.

Speaker #3: And admittedly, we have been late by almost a year in terms of the projects that have been implemented, but now it's all ready to go.

Speaker #2: Yes, sir. My first question is regarding the ₹3,000 crore mega acquisition that we are doing. We are raising around ₹1,000 crore through QIP and taking on debt of around ₹2,000 crore.

Harsh Upadhyay: Yeah, sir. My first question is regarding the INR 3,000 crore mega acquisition that we are doing. We are raising around INR 1,000 crore through QIP and taking a debt of around INR 2,000 crore. Now, if you take the modest cost of capital around 10%, then it will create around INR 200 crore of interest burden every year. If this new business brings around INR 1,000 to INR 1,200 crore of revenue in the initial years, then a huge chunk of profit will go directly as an interest payment. Sir, how does this actually make financial sense for us in the near term? When do you realistically expect these acquisitions to start adding actual net profit to our company's bottom line after paying the interest?

Speaker #2: Now, if we take the modest cost of capital—around 10%—then it will create around ₹200 crores of interest burden every year. So, if this new business brings around ₹1,000 to ₹1,200 crores of revenue in the initial years, then a huge chunk of profit will go directly as interest payment.

Speaker #2: So sir, how does this actually make financial sense for us in the near term? And when do you realistically expect these acquisitions to start adding actual net profit to our company's bottom line after paying the interest?

Speaker #3: A couple of points. Although we have signed both the acquisitions at one time, one of them gets closed right now. The second one is still probably about six to nine months, if not longer, away because the long stop date over there is June next year.

Sachin Patel: A couple of points. Although we have signed both the acquisitions at one time, one of them gets closed right now. The second one is still probably about 6 months or 9 months, if not longer away, because the long-stop date over there is June 2025. The reason for that essentially being that there are significant regulatory approvals that have to be obtained from over 50 countries. It is expected to take time, which it usually does. With regards to the interest cost, while the interest percentages are significantly higher in India, in the two geographies that we are looking at, the interest cost is significantly lower than the 10% that you have mentioned. We don't see interest outflow to the tune of the number that you mentioned. The way we see it from the very beginning, this business is actually cash flow positive.

Speaker #3: The reason for that is essentially that there are significant regulatory approvals that have to be obtained from over 50 countries. So it is expected to take time, which it usually does.

Speaker #3: And with regards to the interest cost, while the interest percentages are significantly higher in India, in the two geographies that we are looking at, the interest cost is significantly lower than the 10% that you have mentioned.

Speaker #3: So we don't see interest outflow to the tune of the number that you mentioned. And the way we see it, from the very beginning, this business is actually cash-flow positive.

Speaker #2: Okay, sir. So my next question is regarding the API block. Back in November 2023, on a call, you guided that we would start seeing additional revenue from the API block in FY25.

Harsh Upadhyay: Okay, sir. My next question is regarding the API block. Back in November 2023 con call, you guided that we would start seeing additional revenue from the API block in FY25. Now, we are already in the FY27, but our quarterly revenue is still stuck around the historic INR 40 crore run rate. Could you please explain, sir, what led to such a long delay of 2 years when we finally see the actual revenues in the P&L?

Speaker #2: Now, we are already in FY27, but our quarterly revenue is still stuck around the historic 40 crore run rate. Could you please explain, sir, what led to such a long delay of two years before we finally see the actual revenues in the P&L?

Speaker #3: So essentially, our API block, although we were planning to start it immediately, took a lot of time because we did not have enough capacity in the fermentation block.

Sachin Patel: Essentially our API block, although we were planning to start it immediately, it took a lot of time because we did not have enough capacity in the fermentation block. That is something which has just begun now. Unless we had more intermediate, we had no opportunity to produce API, because whatever we were producing was already contracted in terms of sales. We could not get into the API part by cannibalizing or by reducing the supplies that we had to the current customers, which have been long-term partners of ours for a long time.

Speaker #3: So, that is something which has just begun now. And unless we had more intermediate, we had no opportunity to produce API because whatever we were producing was already contracted in terms of sales.

Speaker #3: So, we could not get into the API part by cannibalizing or by reducing the supplies that we had to the current customers, who have been long-term partners of ours for a long time.

Speaker #2: So sir, now we have the additional fermentation capacity, which we are going to use to make the API, right?

Harsh Upadhyay: Sir, now we are having the additional fermentation capacity that is which we are going to use to make the API, right?

Speaker #3: That's right. That's right.

Sachin Patel: That's right.

Speaker #2: Yeah. So my last question is regarding the merger, the merger that we have planned with Themis Medicare, sir. So we noted the announcement happened in around November 2024.

Harsh Upadhyay: My last question is regarding the merger that we have planned with Themis Medicare, sir. Sir, we noted the announcement happened in around November 2024. After six months, the decision was made to withdraw the scheme. Sir, could you please explain the insight into the strategic thinking behind pursuing the merger initially, and what factors led you decide to call it off?

Speaker #2: But after six months, the decision was made to withdraw the scheme. Could you please explain the insight into the strategic thinking behind pursuing the merger initially?

Speaker #2: And what factors led you to decide to call it off?

Speaker #3: So our initial thought was to essentially make this a fully integrated pharmaceutical company with API fermentation and brands in the domestic market. But very but we at that at a similar point of time at GTBL, we appointed an external firm to give us a strategic option in terms of what all could we do in GTBL.

Sachin Patel: Our initial thought was to essentially make this a fully integrated pharmaceutical company with API fermentation and brands in the domestic market. At a similar point of time at GTBL, we appointed an external firm to give us a strategic option in terms of what all could we do in GTBL. This is where the whole concept of a fermentation-based CDMO became more clearer to us, and we felt that if we would be doing anything else, we would be diluting what GTBL is doing. Hence from a perspective of GTBL, it was decided that we want to grow this particular business as a fermentation-based CDMO, and not get into other businesses, which were predominantly domestic in nature.

Speaker #3: And this is where the whole concept of fermentation-based CDMO became clearer to us. We felt that if we were doing anything else, we would be diluting what GTBL is doing.

Speaker #3: And hence, from a perspective of GTBL, it was decided that we want to grow this particular business as a fermentation-based CDMO, and not get into other businesses which were predominantly domestic in nature.

Speaker #2: Right, sir. Thank you, sir. Thank you for that. That's all from my side. I'll join back the queue, sir.

Harsh Upadhyay: Right, sir. Thank you, sir. That's all from my side. I'll join back the queue, sir.

Speaker #3: Thank you. Thank you.

Sachin Patel: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one now. The next question is from the line of Arihant Agrawal from Ardhan Ventures.

Operator: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star one now. The next question is from the line of Aryant Agrawal from Ardhaant Ventures. Please proceed with your question.

Speaker #1: Please proceed with your questions.

Speaker #2: Hello. Yeah, hi. I had a question with regard to your group company, Themis Medicare. After the merger and the acquisition that you have—the Sanofi brands and MBJ—what are the benefits that can actually move towards formulation for Themis?

Aryant Agrawal: Hello. Yeah, hi. I had a question with regard to your group company, Themis Medicare, and post the merger and the acquisition that you have, the Sanofi brands and MBJ. What are the benefits that can actually move towards formulation for Themis? Do you see that happening over the next 1 to 2 years where, I think a formulation which is currently outsourced will eventually move towards Themis?

[Analyst 1]: Hello. Yeah, hi. I had a question with regard to your group company, Themis Medicare, and post the merger and the acquisition that you have, the Sanofi brands and MBJ. What are the benefits that can actually move towards formulation for Themis? Do you see that happening over the next 1 to 2 years where, I think a formulation which is currently outsourced will eventually move towards Themis?

Speaker #2: Do you see that happening over the next one to two years, where a formulation which is currently outsourced will eventually move towards Themis?

Speaker #3: So, I think a couple of things. I'll divide the discussion or the response between Themis and GTBL because we are really on the GTBL earnings call.

Sachin Patel: I think a couple of things. I'll divide the discussion or the response between Themis and GTBL because we are really on the GTBL earnings call. From a GTBL perspective, the Sanofi business, which is there, a certain part of it will be contracted to CMOs, which may or may not be Themis. As plans stand right now, it will not be Themis because there are projects which are going on in Themis already for some other category of products. We don't envisage that. Yes, we most certainly will be moving production from Sanofi to other sites, but on a CMO basis, which may or may not be inside India.

Speaker #3: So, from a GTBL perspective, the Sanofi business, which is there, will be contracted—a certain part of it will be contracted—to CMOs, which may or may not be Themis.

Speaker #3: But as plans stand right now, it will not be Themis because there are projects which are going on in Themis already, or in some other category of products.

Speaker #3: So we don't envisage that. But yes, we most certainly will be moving production from Sanofi to other sites—but on a CMO basis, which may or may not be inside India.

Speaker #2: Thank you. That answers my question. Thank you.

Aryant Agrawal: Thank you. That answers my question. Thank you.

[Analyst 1]: Thank you. That answers my question. Thank you.

Speaker #3: Thanks.

Sachin Patel: Thanks.

Speaker #1: Thank you. The next question is from the line of Nirali Shah from Ashika Investment Managers. Please proceed with your question.

Operator: Thank you. The next question is from the line of Nirali Shah from Ashika Investment Managers. Please proceed with your question.

Speaker #4: Yeah, thank you for the opportunity. I have three questions. So, the first one is on the MBJ. We have a lot of capabilities that we are bringing in from the MBJ portfolio, like precision fermentation, ADCs, enzymes.

Nirali Shah: Yeah. Thank you for the opportunity. I have three questions. First one is on the MBJ. We have a lot of capabilities that we are bringing in from the MBJ portfolio, like the precision fermentation, ADCs, and enzymes. Just wanted to know which of these platforms are already commercialized or commercially validated today, and which are essentially like a five-year option, and what revenue is currently being generated from each of them.

Speaker #4: I just wanted to know—which of these platforms are already commercialized or commercially validated today, and which are essentially like a five-year option? And what revenue is currently being generated from each of them?

Speaker #3: So at MBJ, apart from ADCs—which is a relatively new technology that they have developed and patented—all the other areas are already commercialized. This means they have experience with at least one project that they have developed and also commercialized, which implies they have the respective GMP accreditations too, as would be required.

Sachin Patel: At MBJ, apart from ADCs, which is a relatively new technology that they have developed and patented, all the other areas are already commercialized, which means they have experience of at least one project that they have put into development and also commercialized, which means they have the respective GMP accreditations, too, which would be required. In terms of revenues which are coming in from each of the verticals, that we are not in a position to divulge at this stage.

Speaker #3: In terms of revenues which are coming in from each of the verticals, we are not in a position to divulge that at this stage.

Speaker #4: Okay, so ADCs is something that will be coming up now, right?

Nirali Shah: Okay. ADCs is something that will be coming up now, right?

Speaker #3: ADCs is something which will be—so they have the technology, but there is no project which is still bagged from a CDMO perspective. But it's an innovative technology, which only time will tell how much interest it gains from the prospective customers.

Sachin Patel: ADCs is something which will be. They have the technology, but there is no project which is still bagged from a CDMO perspective. It's an innovative technology, which only time will say how much interest it gains from the prospective customers. All the other technologies, meaning peptides, plasmids Onco, precision fermentation, immunosuppressants, and anti-infectives, these are all commercialized, or at least one product from each of them is commercialized.

Speaker #3: But all the other technologies—meaning peptides, plasmids, Onco, precision fermentation, immunosuppressants, anti-infectious—these are all commercialized, or at least one product from each of them is commercialized.

Speaker #4: Understood. My second question is on the so we are seeing a global product market shift from Reform Piston towards Rifapentin. What is the downside to our existing Rifamycin-S economics, and how much of that risk is offset by the Gujarat Themis moving downstream into Rifapentin APIs?

Nirali Shah: Understood. My second question is, we are seeing a global product market shift from rifampicin towards rifapentine. What is the downside to our existing rifamycin S economics, and how much of that risk is offset by the Gujarat Themis moving downstream into rifapentine APIs?

Speaker #3: So we actually, from a Rifa-S manufacturing perspective, like the fact that the market is moving towards Rifapentin—although not as rapidly as we would like—because the requirement of Rifa-S to manufacture one kilo of Rifapentin is more.

Sachin Patel: From a Rifa S manufacturing perspective, we like the fact that the market is moving towards rifapentine, although not as rapidly as we would like, because the requirement of Rifa S to manufacture 1 kilo of rifapentine is more than what you require to manufacture rifampicin. From our perspective, it doesn't matter either way because we are ready with both the APIs.

Speaker #3: And what you're required to manufacture, reform piston. And from our perspective, it doesn't matter either way, because we are ready with both the APIs.

Speaker #4: Understood. And lastly, on the fermentation capacities, can you help bridge the utilization for the additional 540 KL capacity that we have come up with? And could you provide more color on the customer qualifications and how much of it is currently unallocated?

Nirali Shah: Understood. Lastly, on the fermentation capacities, you can help bridge the utilization, the additional 540 KL capacity that we have come up with and more color on the customer qualifications and how much of it is currently unallocated.

Speaker #3: So we have, as you mentioned, practically doubled the capacity. Not all of the expansion is going only for Reform Piston, because some of the expansion has also gone for R&D and cGMP pilot facilities.

Sachin Patel: As you mentioned, we have practically doubled the capacity. Not all of the expansion is going only for rifampicin because there is some expansion which has also gone for R&D and cGMP pilot facilities, but practically doubled the capacity. The manufacturing site starts full steam by the end of this month, so we have to basically commercialize everything that we produce.

Speaker #3: But practically double the capacity. And we, the manufacturing sites, start full steam by the end of this month. So we have to basically commercialize everything that we produce.

Speaker #4: So, what will be our utilization level from that incremental plan?

Nirali Shah: What will be our utilization level from that incremental plant?

Speaker #3: So from a fermentation perspective, it's zero or 100. So basically, we will be running capacity at full scale. The expanded capacity will be fully operational.

Sachin Patel: From a fermentation perspective, it's zero or 100. Basically, we will be running capacity at full scale. The expanded capacity will be fully operational and running and producing by the end of this month.

Speaker #3: And running and producing by the end of this month.

Speaker #4: Okay. That's.

Nirali Shah: Okay. That's fantastic.

Speaker #3: In terms of customers, in terms of customers, etc., obviously, our target is everyone who is using the intermediate, in and outside the country.

Sachin Patel: In terms of customers, et cetera, obviously our target is everyone who's using the intermediate in and outside the country.

Speaker #4: Understood. Okay. Thank you.

Nirali Shah: Understood. Okay. Thank you.

Speaker #3: Thanks.

Sachin Patel: Thanks.

Speaker #1: Thank you. The next question is from the line of Saloni Aria from Molecule Venture PMS. Please proceed with your question.

Operator: Thank you. The next question is from the line of Saloni Arya from Molecule Venture PMS. Please proceed with your question.

Speaker #4: Hello. Good afternoon, sir. I just have one question on the Microbiopharm Japan deal. We have been made aware that this deal is expected to be closed by the end of August.

Saloni Arya: Hello, good afternoon, sir. Sir, I just have one question on the MicroBiopharm Japan deal. We are made aware this deal is expected to be closed by August end. Has the funding been secured to close the deal?

Speaker #4: So, has the funding been secured to close the deal?

Speaker #3: Yes, pretty much. Pretty much.

Sachin Patel: Yes, pretty much.

Saloni Arya: Okay.

Speaker #4: Okay. And.

Sachin Patel: I think there would be some last-minute approvals required, but yes, otherwise it is in place.

Speaker #3: And I think there would be some last-minute approvals required, but yes, otherwise it is in place.

Sachin Patel: I think there would be some last-minute approvals required, but yes, otherwise it is in place.

Speaker #4: Okay. So if the funding is secured, then may I ask about this extra ₹450 crore debt flexibility option, plus the ₹1,000 crore guarantee that we have recently taken from the group companies?

Saloni Arya: Okay. If the funding is secured, may I ask what this extra INR 450 crore debt flexibility option plus INR 1,000 crore guarantee that we have recently taken from the group companies, what's the purpose for that, sir?

Speaker #4: What's the purpose of that, sir?

Speaker #3: So, we are preparing for multiple avenues in terms of funding. We have one avenue closed, but we would like to work with the optimal mix of debt and equity.

Sachin Patel: We are preparing for multiple avenues in terms of funding. We have one avenue closed, but we would like to work with the optimal mix of debt and equity. We are keeping everything ready by the end of this particular month when we have to do the closing to figure out or rather to ensure that we have the best mix that is required to close this particular transaction.

Speaker #3: So, we are keeping everything ready by the end of this particular month, when we have the closing to figure out—or rather, to ensure that we have the best mix that is required to close this particular transaction.

Speaker #3: And hence, there are multiple approaches which are being explored and being exercised also. At the right time, we will take a call on what works best for us.

Saloni Arya: All right.

Sachin Patel: Hence, there are multiple approaches which are being explored and being exercised also. At the right time, we will take a call what works best for us.

Speaker #4: Right. Makes sense, sir. Sir, regarding the standalone capex that we have done—the fermentation block as well as the API block—I just wanted to get an update from you. Since last we spoke, we were expecting the commercialization to happen from this month onwards.

Saloni Arya: Right. Makes sense, sir. Sir, regarding the standalone CapEx that we have done, the fermentation block as well as the API block, I just wanted to take an update from you. Since last we spoke, we were expecting the commercialization to happen from this month onwards. Has that started yet? What is the update on the same? When can we expect numbers coming in from the standalone entity?

Speaker #4: So, has that started yet, and what is the update on this thing? When can we expect numbers coming in from the standalone entity?

Speaker #3: So we should start seeing the output from the expanded capacity to a certain extent from this quarter, and then finally in the second half of the year.

Sachin Patel: We should start seeing the output from the expanded capacity to a certain extent from this quarter and then finally in H2 of the year.

Speaker #4: So, from both the API and the fermentation block, will they be up and running?

Saloni Arya: Sir, both the API and the fermentation block will be up and running?

Speaker #3: That's right.

Sachin Patel: That's right.

Speaker #4: Okay. Okay. That's it from my side, sir. All the very best for your venture. Thank you.

Saloni Arya: Okay. That's it from my side, sir. All the very best for your venture, sir. Thank you.

Speaker #3: Thank you.

Speaker #1: Thank you. Before we take the next question, we would like to remind the participants that you may press star and one to ask questions.

Sachin Patel: Thank you.

Operator: Thank you. Before we take the next question, we would like to remind the participants that you may press star and one to ask questions. The next question is from the line of Mithun Mehta from MMM Capital. Please proceed with your question.

Speaker #1: The next question is from the line of Mithun Mehdi from Capital. Please proceed with your question.

Speaker #5: Good afternoon, sir. My question is regarding the Sanofi acquisition, which is more of an asset-light model. We are not acquiring any of their manufacturing assets.

Mithun Mehta: Good afternoon, sir. Sir, my question is regards to the Sanofi acquisition, which is more on asset-light model, as we are not acquiring any of their assets, manufacturing assets. Since there are no factories being acquired, this Sanofi's portfolio molecule will be manufactured immediately by whom? As in, post closing this deal, as in where it will be manufactured. Will it be manufactured directly by us, or we will be going with some other party?

[Analyst] (MMM Capital): Good afternoon, sir. Sir, my question is regards to the Sanofi acquisition, which is more on asset-light model, as we are not acquiring any of their assets, manufacturing assets. Since there are no factories being acquired, this Sanofi's portfolio molecule will be manufactured immediately by whom? As in, post closing this deal, as in where it will be manufactured. Will it be manufactured directly by us, or we will be going with some other party?

Speaker #5: Since there are no factories being acquired, the Sanofi portfolio molecule will be manufactured immediately by whom? As in, who's closing this deal? As in, where will it be manufactured?

Speaker #5: Will it be manufactured directly by us, or will it be going with some other party?

Speaker #4: Okay.

Speaker #3: Sorry, the line was not very clear. Was the question if the Sanofi product is going to be manufactured directly by us, or by someone else?

Sachin Patel: Sorry, the line was not very clear. Was the question if Sanofi's product will be manufactured directly by us or by someone else? Was that the question?

Speaker #3: Was that the question?

Speaker #5: Yes, after the post-closing of this deal.

Mithun Mehta: Yes, after the post-closing has been

[Analyst] (MMM Capital): Yes, after the post-closing has been

Speaker #3: After post-closing, there is a transition service agreement between us and Sanofi for three years, whereby, in a step-by-step manner, all the transfers will take place.

Sachin Patel: After post-closing, there is a transition service agreement between us and Sanofi for three years, whereby in a step-by-step manner, all the transfers will take place. It'll start with country-by-country transfer of the marketing authorization from their name to our name, which will finally culminate into all the manufacturing moving into our control. Not the sites, not the people, but just the manufacturing. Essentially we will be using CMOs, some of them, which already Sanofi is using, and some of them we will create at the end of three years time.

Speaker #3: It'll start with a country-by-country transfer of the marketing authorization from their name to our name, which will finally culminate in all the manufacturing moving under our control.

Speaker #3: Not the sites, not the people, but just the manufacturing—so essentially, we will be using CMOs, some of which Sanofi is already using, and some of which we will create.

Speaker #3: At the end of three years' time.

Speaker #5: So, after three years, it would be completely manufactured by us. That's the plan, right?

Mithun Mehta: After three years, it would be completely manufactured by us. That is the plan, right?

[Analyst] (MMM Capital): After three years, it would be completely manufactured by us. That is the plan, right?

Speaker #3: We hope much earlier. We hope much earlier. But yes, three years is the maximum time it would take. So all the tech transfers, etc., would be completed in the first year itself.

Sachin Patel: We hope much earlier. We hope much earlier, yes, three years is the maximum time that would take. All the tech transfers, et cetera, would be complete in the first year itself.

Speaker #5: Okay, sir. My question is regarding the fundraising activity. How much are we raising via debt? Is it 2,000 or is it 1,500?

Mithun Mehta: Okay. Sir, my question is regards to the fundraising activity. How much we are raising via debt? Is it INR 4,000 or is it INR 1,500?

[Analyst] (MMM Capital): Okay. Sir, my question is regards to the fundraising activity. How much we are raising via debt? Is it INR 4,000 or is it INR 1,500?

Speaker #3: So we are keeping ourselves ready to do the transaction completely or significantly by debt and also planning on equity. So as I mentioned to the previous person who was asking the question, we'll do the right mix as a time goes, as the time comes by.

Sachin Patel: We are keeping ourselves ready to do the transaction completely or significantly by debt and also planning on equity. As I have mentioned to the previous person who was asking the question.

Mithun Mehta: Right

[Analyst] (MMM Capital): Right

Sachin Patel: right mix as the time comes by.

Speaker #5: But we haven't decided any absolute amount in terms of that. Is it going to be, as in, what's the exact amount? We have kept that option open.

Mithun Mehta: We haven't decided any absolute amount in terms of debt. As in what's the exact amount. We have kept that option open.

[Analyst] (MMM Capital): We haven't decided any absolute amount in terms of debt. As in what's the exact amount. We have kept that option open.

Speaker #3: Right now, I think what we have decided is that we are raising equity of up to ₹1,000 crore. That is what we are looking at right now, to raise equity up to ₹1,000 crore.

Sachin Patel: Right now, I think what we have decided is that we are raising equity to up to INR 1,000 crores. That is what we are looking at right now, to raise equity up to INR 1,000 crores. We will figure out exactly whether we raise INR 1,000 or what do we do with regards to the debt part. We are keeping everything ready for us.

Speaker #3: And then we will figure out exactly whether we raise 1,000, or how do we go about the debt. Sorry, what do we do with regards to the debt part?

Speaker #3: But we are keeping everything ready for us.

Speaker #5: Okay. Okay. And this MBJ is proprietary technology with, I think, 450 enzymes separately, as in how quickly we can absorb it and commercialize it within Gujarat Themis.

Mithun Mehta: Okay. This MBJ's proprietary technology, like 2450 enzyme library, as in how quickly we can absorb it and commercialize it within Gujarat Themis.

[Analyst] (MMM Capital): Okay. This MBJ's proprietary technology, like 2450 enzyme library, as in how quickly we can absorb it and commercialize it within Gujarat Themis.

Speaker #3: Sorry, was the question about enzymes and how we can commercialize them in GTBM?

Sachin Patel: Sorry, was the question about enzymes and how we can commercialize it in GTBL?

Speaker #5: Yes. How soon is it going to be?

Mithun Mehta: Yes. How soon it's going to be.

[Analyst] (MMM Capital): Yes. How soon it's going to be.

Speaker #3: Because I think—look, we have some clear ideas on this, and we can do a fair amount of work within the first year. So I think it won't take too much time for us to bring in some quick wins in terms of synergy between the two companies.

Sachin Patel: Look, we have some clear ideas on this. We can do a fair amount of work within the first year. I think it won't take too much time for us to bring in some quick wins in terms of synergy between the two companies.

Speaker #5: Great, that answers most of the questions. Sir, my only request is, can we have this call on a quarterly basis? If not quarterly, then at least on a semi-annual basis regularly, rather than just as a one-off?

Mithun Mehta: Great. That answers most of the questions. Sir, my only request is can we have this consult going on quarterly basis? If not quarterly, on a semiannual basis regularly rather than just one-off.

[Analyst] (MMM Capital): Great. That answers most of the questions. Sir, my only request is can we have this consult going on quarterly basis? If not quarterly, on a semiannual basis regularly rather than just one-off.

Speaker #3: Yeah, most certainly.

Sachin Patel: Yeah, most certainly.

Speaker #5: Okay, great. Thank you. Appreciate it, sir. Thank you.

Mithun Mehta: Okay, great. Thank you. Appreciate it, sir. Thank you.

[Analyst] (MMM Capital): Okay, great. Thank you. Appreciate it, sir. Thank you.

Speaker #3: Thank you.

Sachin Patel: Thank you.

Speaker #1: Thank you. The next question is from the line of Vignesh Iyer from Sequin Investments. Please proceed with your question.

Operator: Thank you. The next question is from the line of Vignesh Iyer from Sequent Investments. Please proceed with your question.

Speaker #3: Yes, sir. Two questions from my end. First question is on the promoter encumbrance. Could you guide me? If I'm not wrong, in the month of July, around 2% of the encumbrance got released.

Vignesh Iyer: Yes, sir. Two questions from my end. The first question is on the promoter encumbrance. Could you guide me, if I'm not wrong, in the month of July, around 2% of the encumbrance got released. What is the action plan from here on part of that? How would we see the encumbrance going down?

Speaker #3: So, what is the action plan from here on, on part of that? How would we see the encumbrance going down?

Speaker #6: Sorry, I'm not aware about this particular detail. The 2%?

Sachin Patel: Sorry, I'm not aware about this particular detail. The 2%?

Speaker #3: I mean, the pledge of the shares. That has happened because the I guess it is around as on June, it was around 48%, 48 and a half, and a certain one and a half, 2% got released in July.

Vignesh Iyer: I mean, the pledge of the shares that has happened. As on June, it was around 48%, 48.5%, and a certain 1.5%, 2% got released in July. Wanted to know what is the action plan on this part to reduce the promoter pledge.

Speaker #3: So, I wanted to know what is the action plan on this part to reduce the promoter pledge.

Speaker #6: I think within a year it should be going down significantly. A year to 15 months, it should be going down significantly.

Sachin Patel: I think within a year it should be going down. A year to 15 months, it should be going down significantly.

Speaker #3: Okay, okay. I wanted to understand, for our base business, what kind of capex can we expect this year and in FY27?

Vignesh Iyer: Okay. Wanted to understand on our base business, what kind of CapEx can we expect in this year, in FY27?

Speaker #6: So most of our capex is now completed. I think probably to do some last—sorry, to do a—sorry, what was that? Anyway, to do the last mile thing, we may have a little bit left, about 10 to 15 turns, but otherwise, most of the capex is already done by the company.

Sachin Patel: Most of our CapEx is now completed. I think probably to do some last mile things. Sorry, what was that? To do the last mile thing, we may have a little bit left, about INR 10 to 15 crores, but otherwise, most of the CapEx is already done by the company.

Speaker #3: Right. And some amount of maintenance capex would also be there, right, in this year?

Vignesh Iyer: Right. Some amount of maintenance CapEx would also be there, right? In this year.

Speaker #6: Yes, some amount—that would be there for sure. But typically, our maintenance capex has been a few crores, not much.

Sachin Patel: Yes. Some amount. That would be there for sure. Typically our maintenance CapEx has been a few INR crores, not much.

Speaker #3: Okay, so around 20-odd crores can be expected, I mean, on the base business for the year, including everything.

Vignesh Iyer: Okay. around INR 20 odd crores can we expect on the base business for the year?

Sachin Patel: Yes.

Vignesh Iyer: Including everything.

Speaker #6: Including everything.

Sachin Patel: Including everything.

Speaker #3: Yeah. Perfect. Perfect. Yeah, that's all from me. Thank you.

Vignesh Iyer: Yeah. Perfect. That's all from my side. Thank you.

Speaker #1: Thank you. The next question is from the line of Viraj Parekh from JMP Capital Family Investments Office. Please proceed with your question.

Operator: Thank you. The next question is from the line of Viraj Parekh from JMP Capital, Family Investment Office. Please proceed with your question.

Speaker #6: Good afternoon, sir, and thank you for the opportunity. My first question is slightly broad-based. What I would like to mention is that since FY23 to FY26, we have been more or less in a similar range of revenues as well as operating profitability.

Viraj Parekh: Good afternoon, sir, and thank you for the opportunity. Basically what I would like to mention is, since FY23 to FY26, we have been more or less in a similar range of revenues as well as operating profitability. Firstly, I would want you to throw some light as to what is the vision of the management team and the company for the next, say, three to five years. I understand we have been in an investment phase. If you could give us some flavor, it will be very helpful. That's the first one. If I may, sir, second is a little bit on the bookkeeping front. If you could guide us as to how the gross block has moved from FY23 to FY26, in absolute terms, if you can just re-mention it, sir.

Speaker #6: So firstly, I would want you to throw some light on what is the vision of the management team and the company for the next, say, three to five years.

Speaker #6: I understand we have been in an investment phase, so if you could give us some flavor, it would be very helpful. That's the first one.

Speaker #6: And if I may, this second one is a little bit on the bookkeeping front. If you could guide us as to how the gross block has moved from FY23 to FY26 in absolute terms—if you can just re-mention it, sir.

Speaker #6: Thank you, and all the very best. Thanks. So I'll answer the first question, and I'll let Rupesh answer the second one on gross block.

Viraj Parekh: Thank you and all the very best.

Sachin Patel: Thanks. I'll answer the first question, and I'll let Krupesh answer the second one on gross block. Over the last, four or five years, our numbers have been pretty flat in terms of revenue and in terms of margins, because essentially we've been sold out. To increase capacity and fermentation is not very easy. It's taken us, first two years have been there in terms of upgrading our current facility, which were quite old, and then the next three years have been spent in terms of creating the new infrastructure that we have done now. The flatness really comes essentially, as I said, from the fact that we've been sold out and nothing else. In terms of our future vision and goals, as I mentioned in the introductory statements that I made, we want to transform.

Speaker #6: So, over the last, I think, four or five years, our numbers have been pretty flat in terms of revenue and in terms of margins because, essentially, we've been sold out.

Speaker #6: And to increase capacity and fermentation is not very easy. So it's taken us, first, two years have been there in terms of upgrading our current facility, which was quite old.

Speaker #6: And then the next three years have been spent in terms of creating the new infrastructure that we have done now. So the flatness really comes essentially, as I said, from the fact that we've been sold out and nothing else.

Speaker #6: In terms of our future vision and goals, as I mentioned in the introductory statements that I made, we want to transform. So, besides definitely growing on the stack that we already have organically, by selling more of what we are producing and perhaps some more products, we want to transform ourselves into a fermentation-based CDMO.

Sachin Patel: Besides definitely growing on the stack that we already have organically, by selling more of what we are producing and perhaps some more products, we want to transform ourselves into a fermentation-based CDMO. That is what the focus is. That is what we are working on through this Japanese acquisition. At the same time, financial strength is extremely important, and that is where the Sanofi portfolio comes in, because it is forward integration of some of our APIs, which gives us a healthy stack of margins over there also. The vision is quite simple, fermentation-based CDMO, grow on that and improve our financial performance. I'll let Krupesh answer the gross block question.

Speaker #6: So that is what the focus is. That is what we are working on through this Japanese acquisition. And at the same time, financial strength is extremely important, and that is where the Sanofi portfolio comes in, because it is forward integration of some of our APIs, which gives us a healthy stack of margins over there also.

Speaker #6: So, the vision is quite simple: fermentation-based CDMO, grow on that, and improve our financial performance. Let's have Rupesh answer the cross-block question.

Speaker #5: So, if you see on the gross block side, our gross block was around ₹62 crore in FY23. And if you see the FY26 balance sheet, it is around ₹435 crore, including CWIP.

Krupesh Patel: If you see on gross block side, so our gross block was around INR 62 crores in FY23, and if you see the FY26 balance sheet, it is around INR 435 crores including CWIP. If you see, we have incrementally added around INR 370 crores in last three years in gross block. This INR 370 crore comprises of new fermentation facility, API facilities, new R&D infrastructure, and the hybrid power project which is recently going on.

Speaker #5: So if you see, we have incrementally added around ₹370 crore in the last three years in gross block. These ₹370 crore comprise new fermentation facilities, API facilities, new R&D infrastructure, and the hybrid power project, which is recently going on.

Speaker #6: Right. Right. Sure. Sure, sir. Sure, sir. Just a follow-up on that. Thank you for your answer, firstly. So, secondly, is it—or would it be right to say—that we can replicate our historic asset terms? And just on the growth side, sir, over the next three to five years, if you can just give us some sense on the growth, sir: what is the kind of top line we would want to achieve, seeing the kind of long-term investments that we've made?

Viraj Parekh: Right. Sure, sir. Just a follow-up on that. Thank you for your answer, firstly. Secondly, would it be right to say that we can replicate our historic asset tons and just on a growth side, sir, next three to five years, if you can just give us some sense on the growth, sir. What is the kind of top line we would want to achieve seeing the kind of long-term investments that we've made. Again, my question is for the longer term, sir, not for the near term, just to clarify.

Speaker #6: And again, my question is for the longer term, sir, not for the near term—just to clarify.

Speaker #5: So, in asset terms, if I can say—see, out of ₹370 crores, around ₹200 crores is, if you can consider, on the asset side, because these ₹200 crores comprise the new fermentation facility and API facility.

Krupesh Patel: On asset tons, if I can say, out of INR 370 crore, around INR 200 crore is if you can consider on asset ton side, because this INR 200 crore comprises new fermentation facility and API facility. If I can say on asset ton basis, it is on INR 200 crore, you can say 1.4 to 1.5x is the asset ton.

Speaker #5: So, if I can say, on an asset turnover basis, it is around ₹200 crore. You can say 1.4 to 1.5x is the asset turnover.

Speaker #6: Got it. Got it, sir. Got it. So will it be fair to say that across, say, next three to five years, putting conservative also we would want to reach that 500 crore odd number in terms of our top line?

Viraj Parekh: Got it, sir. Will it be fair to say that across, say, next three to five years, putting conservatism also, we would want to reach that INR 500 crore odd number in terms of our top line?

Speaker #5: So, I just want to say I don't want to specify a certain number here. But I can say, on a base case basis, we want to grow at a high teens basis, I can say.

Krupesh Patel: I don't want to specify a certain number here, but I can say that on best case basis, we want to grow on high teen basis, I can say.

Speaker #6: Got it. Got it. No, understood, sir. Thanks a lot for your patient hearing and answers, and all the very best to the team.

Viraj Parekh: Got it. Understood, sir. Thanks a lot for your patient hearing and answers and all the very best to the team.

Speaker #5: Thank you. Thank you.

Sachin Patel: Thank you.

Krupesh Patel: Thank you.

Speaker #1: Thank you. The next question is from the line of Nimish Pandey from NB Investments. Please proceed with your question.

Operator: Thank you. The next question is from the line of Nimish Pandey from NB Investors. Please proceed with your question.

Speaker #7: Good afternoon, sir. Thank you for giving me the opportunity. I hope I am audible to you.

Nimish Pandey: Good afternoon, sir. Thank you for giving me the opportunity. Hope I'm audible to you.

[Analyst 2]: Good afternoon, sir. Thank you for giving me the opportunity. Hope I'm audible to you.

Speaker #6: Yeah, clearly.

Sachin Patel: Yeah, clearly.

Speaker #7: Yes, sir. So, I have a couple of questions. I just wanted to know, sir, could you take us through the key factors that shaped, I mean, FY26 revenue and profitability?

Nimish Pandey: Yes, sir. Sir, I have a couple of questions. Just wanted to know, could you take us through the key factors that shaped FY26 revenue and profitability? What key development should investors watch over the coming two to three years, particularly around the company's CapEx and acquisition plans?

[Analyst 2]: Yes, sir. Sir, I have a couple of questions. Just wanted to know, could you take us through the key factors that shaped FY26 revenue and profitability? What key development should investors watch over the coming two to three years, particularly around the company's CapEx and acquisition plans?

Speaker #7: And what key developments should investors watch over the coming two to three years, particularly around the company's capex and acquisition plans? For FY26, in terms of numbers, if you see, they are pretty much in line with the previous few years.

Sachin Patel: For FY26, in terms of numbers, if you see, they are pretty much in line with the previous few years. There may have been one year where you would have seen a little bit of reduction because of some production-related issues because of excessive rains and power fluctuations. Otherwise, on the whole, FY26 has been pretty stable and pretty steady with others the previous few years. All I can say is, I think we were pretty much sold out in terms of capacity. We were producing to our usual efficiency and we were sold out. I think there's nothing else that I can add to that. The second question was, again?

Speaker #7: So there may have been one year where you would have seen a little bit of reduction because of some production-related issues, because of excessive rain and power fluctuations.

Speaker #7: But otherwise, on the whole, FY26 has been pretty stable and pretty steady vis-à-vis the previous few years. So all I can say is, I think we were pretty much sold out in terms of capacity.

Speaker #7: So we were producing at the usual efficiency, and we were sold out. So I think there's nothing else that I can add to that.

Speaker #7: While the second question was, again, yes. So the second question was: how do I mean, and what key developments should investors watch over the coming two to three years, particularly around the company's capex and acquisition plans?

Nimish Pandey: Yes, sir. Second question was, what key developments should investors watch over the coming two to three years, particularly around the company's CapEx and acquisition plans?

[Analyst 2]: Yes, sir. Second question was, what key developments should investors watch over the coming two to three years, particularly around the company's CapEx and acquisition plans?

Speaker #6: I think, over there, you clearly mentioned—I think Rupesh mentioned in the previous caller's response also—in terms of how the capex has come through and what we expect in terms of asset turns from the new capex, which is coming.

Sachin Patel: I think over there you've clearly mentioned, I think Krupesh mentioned in the previous caller's response also in terms of how the CapEx has come through and what we expect in terms of asset turns from the new CapEx, which has come in. Obviously, we would very much hope and expect growth coming in on a quarter on quarter basis. That is one part. The second part is with MBJ coming in the fold, with all the capabilities coming in the fold, I think some exciting synergies is what we are foreseeing coming through, which would essentially obviously lead to a lot of new projects that we can do together, which will also add further to the revenues and earnings of the company. I think integration with the Sanofi portfolio.

Speaker #6: So, obviously, we would very much hope and expect growth coming in on a quarter-on-quarter basis. That is one part. The second part is, with MBJ coming into the fold, with all the capabilities coming into the fold, I think some exciting synergies are what we are foreseeing coming through, which would essentially, obviously, lead to a lot of new projects that we can do together. This would also add further to the revenues and earnings of the company.

Speaker #6: And I think integration with the Sanofi portfolio will also be a very interesting space to watch, because that will definitely add value in terms of both the top line and bottom line.

Sachin Patel: That will also be a very interesting space to see because that will definitely add value in terms of both top line and bottom line.

Speaker #7: Okay, so my next question is: What strategic value do the MicrobioPharma acquisition and the Sanofi portfolio bring to GTB? And how do they strengthen the company's CDMO capabilities and growth prospects?

Nimish Pandey: Okay. Sir, my next question is, what strategic value do the MicroBiopharm acquisition and the Sanofi portfolio bring to the GTBL? How do they strengthen the company's CDMO capabilities and growth prospects?

[Analyst 2]: Okay. Sir, my next question is, what strategic value do the MicroBiopharm acquisition and the Sanofi portfolio bring to the GTBL? How do they strengthen the company's CDMO capabilities and growth prospects?

Speaker #6: So, to have a fermentation-based CDMO title or to call yourself a fermentation-based CDMO, besides doing fermentation, we need a large number of capabilities that one needs to have to be able to say that, yes, we have all the capabilities that a typical fermentation-based bios CDMO would require.

Sachin Patel: To have a fermentation-based CDMO title or to call yourself a fermentation-based CDMO, besides doing fermentation, you need a large number of capabilities that one needs to have to be able to say that, Yes, we have all the capabilities that a typical fermentation-based bio CDMO would require. If we had to build those capabilities in-house, it would take us seven to eight years. With MicroBiopharm, it gives us a jump start of seven to eight years because all these capabilities are there, projects are there, supplies are there, and of course, relationships with big pharma in Japan and a few big pharma globally also. This is what MicroBiopharm brings us from one day to another. With regards to Sanofi, we were producing intermediates till yesterday. Now we are producing APIs.

Speaker #6: So, if we had to build those capabilities in-house, it would take us seven to eight years. Now, with MicroBioPharma, it gives us a jump start of seven to eight years.

Speaker #6: Because all these capabilities are there, projects are there, supplies are there, and of course, relationships with big pharma in Japan and a few big pharma globally also.

Speaker #6: So this is what microbiopharma brings us from one day to another. And with regards to Sanofi, we were producing intermediates still yesterday. Now we are producing APIs.

Speaker #6: One also wants to produce formulations, because you want to make sure that you have the entire value chain. So, I think that is the benefit that the Sanofi portfolio brings.

Sachin Patel: One also wants to produce the formulations because you want to make sure that you have the entire value chain under you. I think that is the benefit that the Sanofi portfolio brings us, is essentially secures our bread and butter, which is what we are making right now.

Speaker #6: It essentially secures our bread and butter, which is what we are making right now.

Speaker #7: Okay, got it. Understood, sir. So, my last question is: How do you expect GTBI's business mix and financial performance to develop over the next few years?

Nimish Pandey: Okay, got. Understood, sir. My last question is, how do you expect GTBL's business mix and financial performance to develop over the next few years? What returns do you expect from the investments being made as part of the current growth strategy? It's pretty generic, but if you could please answer.

[Analyst 2]: Okay, got. Understood, sir. My last question is, how do you expect GTBL's business mix and financial performance to develop over the next few years? What returns do you expect from the investments being made as part of the current growth strategy? It's pretty generic, but if you could please answer.

Speaker #7: And what returns do you expect from the investments being made as a part of the current growth strategy? I mean, it's pretty generic, but if you could please answer.

Speaker #6: I think, again, this was probably answered in the previous caller. With the expanded capacity, we are expecting the asset terms that Rupesh mentioned.

Sachin Patel: I think, again, this was probably answered in the previous caller. The expanded capacity we are expecting, the asset turns that Krupesh mentioned, and we should start seeing that as time goes by in the future. I think that's the GTBL standalone objective, which is there.

Speaker #6: And we should start seeing that as time goes by in the future. So, I think that's the GTBL standalone objective, which is there.

Speaker #7: Understood. Understood. Thank you. Thanks a lot. Thanks for answering my questions.

Nimish Pandey: Understood. Thank you. Thanks a lot. Thanks for answering my questions.

[Analyst 2]: Understood. Thank you. Thanks a lot. Thanks for answering my questions.

Speaker #6: Thanks.

Sachin Patel: Sure. Thanks.

Speaker #1: Thank you. The next question is from the line of Sakib from South Quay Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Saket from Saurashtra Capital. Please proceed with your question.

Speaker #6: Hi. Am I audible? Yes, clearly. Sir, just one quick question. Vis-à-vis the Sanofi acquisition—while you have clarified that you would be manufacturing some of these products in-house or via CMO, depending on the capacity at hand—are we going to market these products as well?

[Analyst] (Saurashtra Capital): Hi, am I audible?

Operator: Yes, sir, you're audible.

Sachin Patel: Yes.

[Analyst] (Saurashtra Capital): Sir, just one quick question with regards the Sanofi acquisition. While you have clarified that you'll be manufacturing some of these products in-house or via CMO, depending on the capacity at hand. Are we going to market this product as well? Because it seems currently Sanofi is not really aggressively promoting these products. Will there be a, say, a more aggressive stance on marketing these offerings? Because these might be, I think, branded generic products in their respective markets. Any color on that?

Speaker #6: Because it seems that currently, Sanofi is not really aggressively promoting these products. So, will there be a move towards a more aggressive stance on marketing these offerings? Because these might be, I think, branded generic products in their respective markets.

Speaker #6: So, any color on that? Yes. So, all of them are branded generic. You are absolutely right. And you are absolutely right, Sanofi is not marketing them at all.

Sachin Patel: Yeah. All of them are branded generic. You are absolutely right. You are absolutely right, Sanofi is not marketing them at all. Wherever we want, we have the opportunity to take Sanofi distributors, and some of them are pretty strong. We intend to go ahead with that. In certain markets where we feel that not enough is being done, we have already tied up with distributors who are strong over there in terms of taking these particular products to market. We are already there in the market, but much more can be done with aggressive marketing, and that is definitely something that we are very excited about.

Speaker #6: So, wherever we want, we have the opportunity to take Sanofi distributors, and some of them are pretty strong. So, we intend to go ahead with that.

Speaker #6: And then in certain markets where we feel that not enough is being done, we have already tied up with distributors who are strong over there, in terms of taking these particular products to market.

Speaker #6: So we are already there in the market, but much more can be done with aggressive marketing. And that is definitely something that we are very excited about.

Speaker #6: Okay. And sir, are these products not promoted via say medical representatives, something that is there in the Indian space? These are all more like seems more like a trade-generic products, like distributed via distributors.

[Analyst] (Saurashtra Capital): Okay. Sir, are these products not promoted via, say, medical representative, something that is there in the Indian space? These are all more like trade generic products, distributed via distributors. Is that the case?

Speaker #6: Is that the case? These are branded generic products. So, in certain markets, distributors are marketing them through their field force. In certain markets, no one is promoting them.

Sachin Patel: These are branded generic products. In certain markets, distributors are marketing it through their salesforce. In certain markets, no one is promoting them. Excuse me, there's a mixed bag. Country to country, there's a difference.

Speaker #6: So there is a mix of there's a mix excuse me. There's a mixed bag. Country to country, there is a difference. Okay, sir. Now, sir, if I whatever we have gathered so far, it seems it's already operating at that segment or that those brands are operating at a reasonably high margin because, again, the marketing cost per se is relatively low.

[Analyst] (Saurashtra Capital): Okay, sir. Sir, whatever we have gathered so far, it seems it's already operating at that segment or those brands are operating at a reasonably high margin. Again, the marketing cost per se is relatively low and Sanofi's premium pricing is anyways giving them that. Is there a way and means by which we are looking at, say, expanding that EBITDA margin or the value add or, say, the better owner thesis that we want to bring to the table is largely through better distribution rather than margin expansion. Can margin expansion be relatively ruled out given that it's already operating at a relatively high margin, even for a branded generic play?

Speaker #6: And Sanofi's premium pricing is anyway giving them that. So, is there a way and means by which we are looking at, say, expanding that EBITDA margin or the value-add? Or, say, the better owner thesis that we want to bring to this table is largely through better distribution rather than margin expansion?

Speaker #6: So, can margin expansion be relatively ruled out given that it's already operating at a relatively high margin, even for a branded generic play? No.

Speaker #6: In fact, both the opportunities are there. Besides the fact that you rightly pointed out—we improved distribution to a much more aggressive approach—we are also expecting significant improvement in margins by integrating our API that we are producing into the supply chain.

Sachin Patel: No, in fact, both the opportunities are there. Besides the fact, as you rightly pointed out, we improve distribution through a lot more aggressive approach. We also are expecting significant improvements in margins by integrating our API that we are producing into the supply chain, vis-a-vis the API that currently Sanofi uses.

Speaker #6: Vis-à-vis the API that currently Sanofi uses... Okay, sir. Okay. Now, just in case if I missed out, sir—within the micropharma space, what percentage is currently coming via, say, patented offerings or, if not today, then say for three to five years out depending on the kind of pipeline that we have?

[Analyst] (Saurashtra Capital): Okay, sir. Just in case if I missed out. Within the MicroBiopharm space, what percentage is currently coming via, say, patented offerings or, say, if not today, say for 3 to 5 years out depending on the kind of pipeline that we have. What would be the, say, patented vis-a-vis genericized portfolio mix? Is it safe to assume that entire revenue from MicroBiopharm currently is out-and-out formulations CDMO, right? Not the typical API CDMO that we have in India space, Zydus primarily.

Speaker #6: So, what could be the, say, patented vis-à-vis, say, genericized portfolio mix? And is it safe to assume that the entire revenue from Micropharma currently is—they are out-and-out formulations CDMO, right?

Speaker #6: Not the typical API CDMO that we have in the India space—the major ones, primarily. So Microbiopharma is 100% API CDMO. There is very little formulation, probably about 4% or 5% formulation, which is there.

Sachin Patel: MicroBiopharm is 100% API CDMO. There is very little formulation, probably about 4% or 5% formulation, which is there, and APIs, which are predominantly made by fermentation. 60% of their business is currently CDMO. A significant amount is CDMO.

Speaker #6: And APIs, which are predominantly made by fermentation. And 60% of their business is currently CDMO, so a significant amount is CDMO. And how much would be safe under patent?

[Analyst] (Saurashtra Capital): How much would be, say, under patent?

Speaker #6: So from what we understand, most of it is already off-patent. Okay. But their development pipeline, obviously—the new projects that they are working on—are under patent, but they are yet to be commercialized.

Sachin Patel: From what we understand, most of it is already off patent.

[Analyst] (Saurashtra Capital): Okay.

Sachin Patel: Their development pipeline, obviously, the new projects they are working on are under patent, they are yet to be commercialized. The commercialized projects are now off patent.

Speaker #6: But the commercialized projects are now off-patent. And is the clientele largely based out of, say, Japan because there are a lot of innovators over there, or do they also have clientele outside that, like, say, Europe or the US?

[Analyst] (Saurashtra Capital): Is the clientele largely based out of, say, Japan because there are a lot of innovators over there, or they also have clientele outside that, like, say, Europe or US-based company?

Speaker #6: There's something. 60% is in Japan; 40% is outside Japan. Okay. And this is clientele, or this is revenue? Revenue. Okay. Okay. Thank you. Thanks for answering my queries.

Sachin Patel: 60% is in Japan, 40% is outside Japan.

[Analyst] (Saurashtra Capital): Okay. This is clientele or this is revenue?

Sachin Patel: Revenue.

[Analyst] (Saurashtra Capital): Okay. Thank you for answering my queries.

Speaker #6: Thank you. Best of luck. Thank you. Thank you.

Sachin Patel: Thank you.

[Analyst] (Saurashtra Capital): Best of luck.

Sachin Patel: Thank you.

Speaker #1: Thank you. The next question is from the line of Supesh from Kosha Capital. Please proceed with your question, sir.

Operator: Thank you. The next question is from the line of Satish from Kosha Capital. Please proceed with your question.

[Company Representative] (Kosha Capital): Am I audible?

Speaker #6: Am I audible?

[Analyst] (Kosha Capital): Am I audible?

Speaker #1: Yes, sir. You're audible now.

Operator: Yes, sir. You're audible now.

[Company Representative] (Kosha Capital): Thanks.

[Analyst] (Kosha Capital): Thanks.

Speaker #6: Sorry, I'm not able to hear anything. Am I audible now? Is that ok? Yes. Yeah. So you had mentioned that you are basically acquiring capabilities and getting a head start of seven to eight years with the acquisition of Microbio Pharma.

Sachin Patel: Sorry, I'm not able to hear anything.

[Company Representative] (Kosha Capital): Am I heard now? Is better?

[Analyst] (Kosha Capital): Am I heard now? Is better?

Sachin Patel: Yes.

[Company Representative] (Kosha Capital): Yeah. You had mentioned that you're basically acquiring capabilities and getting a head start of seven, eight years with the acquisition of MicroBiopharm. Could you please share what are these capabilities and with whom will we be competing with these capabilities in the global arena? That's the first question, sir.

[Analyst] (Kosha Capital): Yeah. You had mentioned that you're basically acquiring capabilities and getting a head start of seven, eight years with the acquisition of MicroBiopharm. Could you please share what are these capabilities and with whom will we be competing with these capabilities in the global arena? That's the first question, sir.

Speaker #6: Could you please share what these capabilities are, and with whom we will be competing with these capabilities in the global arena? That's the first question, sir.

Speaker #6: So, in terms of capabilities, besides a wider range of product categories—I mean, we are making anti-infectives or other decomposition-based products—they have immunosuppressants.

Sachin Patel: In terms of capabilities, besides wider product categories, we are making anti-infectives or other rifampicin-based products. They have immunosuppressants, they have oncology, and they have anti-infectives. In terms of capabilities, they have got peptides, they have plasmids, which essentially is a base to manufacture DNA, RNA, gene therapy, CAR T. They have precision fermentation, they have enzyme engineering, and capability that they are now building up is ADCs.

Speaker #6: They have oncology, and they have anti-infectives. And in terms of capabilities, they have got peptides. They have plasmids, which essentially are a base to manufacture DNA, RNA, and gene therapy.

Speaker #6: CAR-T, they have precision fermentation, they have enzyme engineering, and the capability that they are now building up is ADCs. Sure. And who, in terms of...

[Company Representative] (Kosha Capital): Sir.

[Analyst] (Kosha Capital): Sir.

Sachin Patel: In terms of-

Speaker #6: Yeah, competitors, sir. Bench. I think globally, there are quite a few companies—not too many—but it’s probably, and that is also another interesting part for us.

[Company Representative] (Kosha Capital): Yeah, competitors.

[Analyst] (Kosha Capital): Yeah, competitors.

Sachin Patel: I think globally there are quite a few companies. Not too many, but probably that is also another interesting part for us. Not too many in fermentation CDMO which covers all these things, but a few. I think the large ones are obviously the likes of Lonza and perhaps WuXi in China, and of course in India we've got Anthem Biosciences. I think this would probably be a summary, and a few more globally.

Speaker #6: Not too many in fermentation CDMO, which covers all these things, but a few. I think the large ones are obviously the likes of Lonza, and perhaps WuXi in China, and of course, in India, we have got Anthem Biosciences.

Speaker #6: So I think this would probably be a summary, and a few more. Sure, got it. And so, second is: both these acquisitions—the acquisition of Sanofi's brands and this one—will they be margin dilutive, or will they be on similar margins that the current GTBL business has?

[Company Representative] (Kosha Capital): Sure. Got it. Sir, second is, both these acquisitions, acquisition of Sanofi's brands and this one, will it be margin dilutive or will it be on the similar margins that our current GTBL business has? Once we stabilize and integrate our operations successfully.

[Analyst] (Kosha Capital): Sure. Got it. Sir, second is, both these acquisitions, acquisition of Sanofi's brands and this one, will it be margin dilutive or will it be on the similar margins that our current GTBL business has? Once we stabilize and integrate our operations successfully.

Speaker #6: I mean, once we stabilize and integrate our operations successfully, we would hope that once this integration is completed and the stabilization is done, we would be close to where we are right now.

Sachin Patel: We would hope that once this integration is complete and once the stabilization is done, we'll be close to where we are right now.

Speaker #6: Got it. Thank you so much. All the best.

[Company Representative] (Kosha Capital): Got it. Thank you so much. All the best.

[Analyst] (Kosha Capital): Got it. Thank you so much. All the best.

Speaker #1: Thank you. Before we take the next question, we would like to remind participants that you may press star one to ask a question.

Operator: Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Harsh Upadhyay, an individual investor. Please proceed with your question.

Speaker #1: The next question is from the line of Harsh Upadhyay, an individual investor. Please proceed with your question.

Speaker #6: Yeah, sir. Thanks for providing the opportunity once again. Sir, my question is regarding what exactly we are cooking right now in our API block.

Harsh Upadhyay: Thanks for providing the opportunity once again. Sir, my question is regarding what exactly we are cooking right now in our API block. Is it mainly rifampin, rifaximin, or any other molecule?

Speaker #6: Is it mainly rifampicin, rifaximin, or any other molecule?

Speaker #3: All three. All three.

Sachin Patel: All three.

Harsh Upadhyay: All three. Okay, sir. Sir, I am asking about the Sanofi deal. Sir, what will happen in the future? Suppose Sanofi is selling a medicine of anti-tuberculosis and Sanofi is written on the medicine name. In the coming future, we will see the name of GTBL on that medicine. How will it happen?

Speaker #6: All three. Okay, sir. And sir, I'm asking about the Sanofi deal. Sir, what will happen in the future? So, suppose Sanofi is selling a medicine for anti-tuberculosis.

Speaker #6: And Sanofi is written on the medicine name. So in the coming future, will we see the name of GTBL on that medicine? How will that happen, sir?

Speaker #6: Yes, the brand will remain as it is—whatever it is right now—and the manufacturer will change from Sanofi to Themis Biosyn. Right, sir?

Sachin Patel: Yes. The brand will remain as it is, whatever it is right now, and the manufacturer will change from Sanofi to Themis Biosyn.

Harsh Upadhyay: Right, sir. Sir, are you planning to use the API that you are manufacturing from the Indian facility to Sanofi? How will the integration happen?

Speaker #6: And sir, are we planning to use the API that you are manufacturing from the Indian facility? To Sanofi, is this how the integration happens?

Speaker #6: Eventually, yes. So, sir, has there been any inspection or audit from the Sanofi side since we are going to utilize our API in that?

Sachin Patel: Eventually, yes.

Harsh Upadhyay: Sir, is there any inspection or audit happen from the Sanofi side that we are going to utilize our API in that?

Speaker #6: No, but we are expecting approvals for our APIs in the coming years, so we don't need to wait until the integration with the Sanofi portfolio happens.

Sachin Patel: No, we are expecting approvals for our APIs in the coming years. We don't need to wait until the integration with the Sanofi portfolio happens. We'll be ready much before that.

Speaker #6: We'll be ready much before that. Okay, sir. And sir, regarding that hybrid power plant that recently has gone live, what kind of actual savings or percentage boost can we expect in our EBITDA margin from lower power costs?

Harsh Upadhyay: Okay, sir. Sir, regarding that hybrid power plant that recently has gone live. What kind of actual saving or percentage boost that we can expect in our EBITDA margin from lower power cost?

Speaker #6: So, it has not gone live yet. We are expecting phase one to go live in September, and then two months later, the second phase will start.

Sachin Patel: It has not gone live yet. We are expecting phase I to go live in September, and then two months later, the phase II will start. It should improve our EBITDA margins for sure, because this will allow us to get power at a significantly lower price.

Speaker #6: And it should improve our EBITDA margins for sure, because this will allow us to get power at a significantly lower price. Yes, sir.

Harsh Upadhyay: Yes, sir. Sir, my last question is regarding that recent dispute with Optimus Drugs. Sir, could you please explain, sir, what was the main reason behind their initial decisions of not buying our product?

Speaker #6: Sir, my last question is regarding the recent dispute with Optimus Drug. Could you please explain what was the main reason behind their initial decision not to buy your product?

Speaker #6: So, because of confidentiality reasons, I will not get into the details of it. But the good news is that the dispute is behind us, and we are restarting business.

Sachin Patel: Because of confidentiality reasons, I will not get into the details of it, but the good news is that that dispute is behind us and we are restarting business.

Speaker #6: So, in case, suppose they have not adjusted to our needs and whatever agreement happened earlier, what was the option that we had, except for the dispute and the lawsuit that happened?

Harsh Upadhyay: Sir, in case, suppose they have not adjusted with our needs and whatever the agreement that happened earlier, what was the option that we had except that dispute and the lawsuit that happened? What are the alternate options that we had to handle our inventory?

Speaker #6: But what are the alternate options that we had to handle our inventory? There are more than enough buyers for the same product in the country.

Sachin Patel: There are more than enough buyers for the same product in the country, that was not a problem. Over the last six or nine months, we had not supplied to them, and still we could easily sell out our capacity. That was not a problem, but as I mentioned, both the companies have worked constructively to resolve the dispute and continue business.

Speaker #6: So that was not a problem. And over the last six or nine months, we have not supplied to them, and still, we could easily sell out our capacity.

Speaker #6: So that was not a problem. But as I mentioned, both the companies have worked constructively to resolve the dispute and continue business. So is there any plan to further dilute the customer concentration going forward?

Harsh Upadhyay: Sir, is there any plan for further value the customer concentration going forward?

Speaker #6: I think I mentioned in one of the previous answers that our endeavor is to get into the supply chain and sell intermediates to anyone in the country.

Sachin Patel: I think I mentioned in one of the previous answers that our endeavor is to get into the supply chain and sell intermediate to anyone in the country and outside who is manufacturing these APIs.

Speaker #6: And outside, who is manufacturing these APIs? Okay, sir. Thank you, sir. Thanks a lot for all the replies, and best of luck, sir.

Harsh Upadhyay: Okay, sir. Thank you, sir. Thanks a lot for all the replies.

Sachin Patel: Thank you.

Harsh Upadhyay: Best of luck, sir.

Speaker #6: Thank you very much.

Sachin Patel: Thank you very much.

Speaker #1: Thank you. The next question is from the line of Hitesh from Kosha Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Hitesh from Kosha Capital. Please proceed with your question.

Speaker #6: Hi, so thanks for the opportunity again. One very strategic question, sir: very few Indian companies have been able to successfully digest a large overseas acquisition.

[Company Representative] (Kosha Capital): Hi. Sir, thanks for the opportunity again. One very strategic question. Sir, very few Indian companies have been able to digest a large overseas acquisition. We have very few examples of Indian companies turning around, I think in our case, two back-to-back major acquisitions, given the size of our company, the current business. Just trying to understand how thin are we spreading in terms of management bandwidth and also the kind of risk that we are taking because there's a leverage coming in, there's a huge integration that needs to be done. Then there's a group company also, where again, we have some inherent challenges. As an investor, it looks a little worrying how things could play out given this context, sir.

[Analyst] (Kosha Capital): Hi. Sir, thanks for the opportunity again. One very strategic question. Sir, very few Indian companies have been able to digest a large overseas acquisition. We have very few examples of Indian companies turning around, I think in our case, two back-to-back major acquisitions, given the size of our company, the current business. Just trying to understand how thin are we spreading in terms of management bandwidth and also the kind of risk that we are taking because there's a leverage coming in, there's a huge integration that needs to be done. Then there's a group company also, where again, we have some inherent challenges. As an investor, it looks a little worrying how things could play out given this context, sir.

Speaker #6: We have very few examples of Indian companies turning around. And I think, in our case, with back-to-back major acquisitions given the size of our company and the current business, I'm just trying to understand: how thin are we spreading ourselves in terms of management bandwidth, and also what kind of risk are we taking, especially because there's leverage coming in.

Speaker #6: There's a huge integration that needs to be done and then there's a group company also where again, we have some inherent challenges. How are you I mean, as an investor, it looks a little worrying how things could play out given this context, sir.

Speaker #6: So, both the businesses that—so let me put it this way. First of all, I think you will agree that, over the last five or seven years, the GTBL business has been pretty steady.

Sachin Patel: Let me put it this way. First of all, I think you will agree that over the last five or seven years, GTBL business has been pretty steady, cash flows have been pretty strong. From a GTBL perspective, things have been, I think, reasonably robust. In case our endeavor when we were looking at both the acquisitions were that, yes, we are getting into a new geography, we don't want to really look at inorganic opportunities where there is uncertainty of business or there have been too many ups and downs over the last five years. Both the businesses that we are looking at have been very steady historically. There has been no major upside nor downside with any of the businesses. As a result of that and For example, in MBJ, a very strong management, which continues to be there.

Speaker #6: And cash flows have been pretty strong. So from a GTBL perspective, things have been I think a reasonably robust. In case for our endeavor, when we were looking at both the acquisitions were, that's yes, we are getting into a new geography.

Speaker #6: And we don't really want to look at inorganic opportunities where there is uncertainty in the business or where there have been too many ups and downs over the last five years.

Speaker #6: So both the businesses that we are looking at have been very steady historically. There has been no major upside nor downside in any of the businesses.

Speaker #6: And as a result of that, and for example, in MBG, there is very strong management, which continues to be there. So we are not getting into any geography or any business where we are taking on the responsibility of turning the business around.

Sachin Patel: We are not getting into any geography or any business where we are taking the responsibility of turning the business around. We are simply bringing in the synergies in both the places, which can add value, whereby one plus one is equal to significantly more than two. I think that is where strategically we are aligned. We have no intentions of going to Japan managing the company in Japan. Integration for sure, where both the teams are very excited to work together on that.

Speaker #6: We are simply bringing in the synergies in both the places, which can add value, whereby one plus one is equal to significantly more than two.

Speaker #6: So I think that is where, strategically, we are aligned. We have no intention of going to Japan and managing the company in Japan. But integration, for sure, where both teams are very excited to work together on that.

[Company Representative] (Kosha Capital): Mm-hmm. Sure.

[Analyst] (Kosha Capital): Mm-hmm. Sure.

Speaker #6: The integration and common projects where both the India-Japan advantage can actually come out. Yeah. So, I mean, I haven't done—I couldn't do a very detailed research on Micro Biopharm, but in the last five years, now this is the second time it is changing hands.

Sachin Patel: In integration and in common projects where both the India-Japan advantage can actually come out.

[Company Representative] (Kosha Capital): Sure. Sir, I couldn't do a very detailed research on MicroBiopharm, in the last five years, now this is the second time it is changing hands. I think the first time it happened in 2021, 2022, or something. I don't see, at least, from whatever limited work that I've done, I haven't seen much of improvement in the last four or five years after the last management took over. I think the private equity firm took it over. In this context, when do you think the benefit or the synergies that you are anticipating will come to us? What is the timeframe you're looking at when we can realize that benefit, sir?

[Analyst] (Kosha Capital): Sure. Sir, I couldn't do a very detailed research on MicroBiopharm, in the last five years, now this is the second time it is changing hands. I think the first time it happened in 2021, 2022, or something. I don't see, at least, from whatever limited work that I've done, I haven't seen much of improvement in the last four or five years after the last management took over. I think the private equity firm took it over. In this context, when do you think the benefit or the synergies that you are anticipating will come to us? What is the timeframe you're looking at when we can realize that benefit, sir?

Speaker #6: So, I think the first time it happened was in 2021—'21 or '22, or something. And then, at least from whatever limited work that I've done, I haven't seen much of an improvement in the last four or five years after the last management took over.

Speaker #6: I think the private equity firm took it over. So, do you really—I mean, in this context—when do you think the benefit or the synergies that you are anticipating will come through? How much time frame are we looking at?

Speaker #6: What is the time frame you're looking at when we can realize that benefit, sir? So the private equity firm came in five or six years ago.

Sachin Patel: The private equity firm came in five, six years ago, and as the fund closes, the life of the fund closes, they are up for sale, and that is what has happened. With regards to their journey over the last five years, although the top line may have not improved, there is a significant improvement in the bottom line, which has happened by them creating a lot of value-added businesses and technologies which have improved EBITDA line significantly. I'll leave it to that and say that as a top line, it may not seem as interesting, but from the capabilities that they have built up and the bottom line that they have managed to get, and the cash flow situation that they have, it's a very interesting proposition.

Speaker #6: And as the fund closes—the life of the fund closes—they are up for sale, and that is what has happened. And with regard to their journey over the last five years, although the top line may not have improved, there is a significant improvement in the bottom line.

Speaker #6: This has happened by them creating a lot of value-added businesses and technologies, which have improved the EBITDA line significantly. So, I'll leave it at that.

Speaker #6: And say that as the top line, it may not seem as interesting, but from the capabilities that they have built up, and the bottom line that they have managed to get, and the cash flows and the cash flow situation that they have, it's a very interesting proposition.

Speaker #6: And I should also state that two and a half years ago, we went to them to ask if they were ready for sales. So, the initiation in terms of sales was actually very well thought out from our end.

Sachin Patel: I should also state that two and a half years ago, we went to them to ask if they were ready for sale. The initiation in terms of sale was actually very well thought of from our end.

Speaker #6: Sure, sure. And so the second part, when do you see these synergies playing out? What is the time frame you're looking at, sir? We expect some projects to start within the first year.

[Company Representative] (Kosha Capital): Sure. The second part, when do you see these synergies playing out? What is the timeframe you're looking at, sir?

[Analyst] (Kosha Capital): Sure. The second part, when do you see these synergies playing out? What is the timeframe you're looking at, sir?

Sachin Patel: We expect some projects to start within the first year.

Speaker #6: Got it. Sure, sir. I'll look forward to learning more about this as we move along. Thank you so much, and all the very best.

[Company Representative] (Kosha Capital): Got it. Sure, sir. I look forward to learning more on this as we move along. Thank you so much, and all the very best.

[Analyst] (Kosha Capital): Got it. Sure, sir. I look forward to learning more on this as we move along. Thank you so much, and all the very best.

Speaker #6: Thank you.

Sachin Patel: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand over the conference to Dr. Sachin Patel, sir, for his closing comments.

Operator: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand over the conference to Dr. Sachin Patel, sir, for his closing comments. Over to you, sir.

Speaker #1: Over to you, sir.

Speaker #6: Thank you. Thank you very much. As we look ahead, our priorities remain focused on executing our expansion projects, integrating the recent acquisitions, commercializing new capabilities, broadening our product portfolio, and maintaining strong financial performance.

Sachin Patel: Thank you. Thank you very much. As we look ahead, our priorities remain focused on executing our expansion projects, integrating recent acquisitions, commercializing new capabilities, broadening our product portfolio while staying focused on strong financial performance. We believe these investments lay a foundation for a greater, stronger, and more diversified, globally competitive GTBL. We remain committed to disciplined execution, innovation-led growth, and sustainable value creation for all our stakeholders. Thank you all for joining this call today. Take care. Bye-bye.

Speaker #6: We believe these investments are the foundation for a greater, stronger, and more diversified, globally competitive GTBL. We remain committed to disciplined execution, innovation-led growth, and sustainable value creation for all our stakeholders.

Speaker #6: Thank you all for joining this call today. Take care. Bye-bye.

Speaker #1: Thank you. On behalf of 361 Capital Market Private Limited, that concludes this conference. Thank you for joining us, and Mina, you may disconnect your line.

Operator: Thank you. On behalf of 361 Capital Market Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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