Q1 2027 Gufic Biosciences Ltd Earnings Call

August 17, 2026

Speaker #1: Ladies and gentlemen, good day and welcome to the Gufic Biosciences Q1 FY27 earnings conference call. 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 2: Ladies and gentlemen, good day, and welcome to Gufic Biosciences Limited Q1 FY27 earnings conference call. 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. Should you need assistance during this conference call, please signal an operator by pressing Star and Zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Ms. Ami Shah from Gufic Biosciences Limited. Thank you, and over to you, ma'am.

Operator: Ladies and gentlemen, good day, and welcome to Gufic Biosciences Limited Q1 FY27 earnings conference call. 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. Should you need assistance during this conference call, please signal an operator by pressing Star and Zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Ms. Ami Shah from Gufic Biosciences Limited. Thank you, and over to you, ma'am.

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

Speaker #1: I now hand over the conference to Ms. Amisha from Gufic Biosciences. Thank you, and over to you, ma'am.

Speaker #2: Thank you so much. Good afternoon, everyone. I'm Amisha, Company Secretary. I welcome you all to the investor call of Gufic Biosciences for the Q1 financial results for the first quarter of FY 2026-27.

Ami Shah: Thank you so much. Good afternoon, everyone. I, Ami Shah, Company Secretary, welcome you all to the investor call of Gufic Biosciences Limited financial results for first quarter of FY26, '27. The press release and investor presentation relating to the result has been submitted to the stock exchange on Friday and are also available on company's website. Let me begin by introducing the management team joining us on today's call. We have with us Mr. Pranav Choksi, CEO and Whole-Time Director; Mr. Devkinandan Roonghta, Chief Financial Officer; and Mr. Avik Das, Investor Relations head. Before we begin, I would like to remind everyone of the Safe Harbor statement. Certain comments made during this call may contain forward-looking statements.

Speaker #2: The press release and investor presentation relating to today's results have been submitted to the stock exchange on Friday, and are also available on the company's website.

Speaker #2: Let me begin by introducing the management team joining us on today's call. We have with us Mr. Pranav Choksi, CEO and Whole-time Director; Mr. Devkinandan Runta, Chief Financial Officer; and Mr. Avik Das, Investor Relations Head.

Speaker #2: Before we begin, I would like to remind everyone of the safe harbor statement. Certain comments made during this call may contain forward-looking statements. These statements are based on management's current expectations and are subject to various risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in such statements.

Ami Shah: These statements are based on management's current expectations and are subject to various risks and uncertainties that could cause actual results, performance, or achievements to differ materially from those expressed or implied in such statements. Participants are advised to review the relevant disclosure and risk factors available in the public filings. With that, I would now like to hand over the call to Mr. Avik for his opening remarks. Thank you.

Speaker #2: Participants are advised to review the relevant disclosures and risk factors available in the public filings. With that, I would now like to hand over the call to Mr. Avik for his opening remarks.

Speaker #2: Thank you.

Speaker #3: Thank you. Thank you, Ami, and good evening, everyone. Thank you for joining us. Starting with indoor, the plant is running to plan. Qualification and validations are behind us.

Avik Das: Thank you. Thank you, Ami, and good evening, everyone. Thank you for joining us. Starting with Indore, the plant is running to plan. Qualification and validations are behind us. Product tech transfers are progressing on calendar we have set out, and our contract clients continue to migrate across from Navsari. What is new this quarter is capability. The depot and microsphere suite are nearing completion, so during this year, we will manufacture long-acting depot presentations in-house at Indore itself. We have also begun setting up a lipid-based antifungal by both an alternate approach over and above the conventional route. Very few sites in India run either, and both are targeted to be operational during this year. In Critical Care, we launched our monobactam and beta-lactamase inhibitor combination immediately on expiry of the innovator patent, and it is now introduced across corporate tertiary and secondary care networks.

Speaker #3: Product tech transfers are progressing on calendar. We have set out, and our contract clients continue to migrate across from Navsari. What is new this quarter is capability.

Speaker #3: The depot and microsphere suite are nearing completion, so during this year we will manufacture long-acting depot presentations in-house, at Indore itself. We have also begun setting up a lipid-based antifungal by both an alternate approach, over and above the conventional route.

Speaker #3: Very few sites in India run either, and both are targeted to be operational during this year. In critical care, we launched a monobactam and beta-lactamase inhibitor combination immediately on expiry of the innovator patent, and it is now introduced across corporate tertiary and secondary care networks.

Speaker #3: Early acceptance in large institutions has been encouraging. The division's focus this year is depth, widening, and coverage within the hospital groups we already serve rather than adding portfolio width.

Avik Das: Early acceptance in large institutions has been encouraging. The division's focus this year is depth widening and coverage within the hospital groups we already serve, rather than adding portfolio width. Sparsh has completed a full quarter on the rebuild channel. Outstanding days are within standard trade terms. Hospital onboarding has resumed at scale, and coverage is now balanced between nursing homes and corporate chains. Two points worth noting, our focus has moved towards our own manufactured brands, which help both margin and supply reliability, and the dual-chamber bag is gaining acceptance in major institutions. The division also entered Northeast and Jammu & Kashmir, applying the new channel architecture from the outset. Its launch pipeline for the year is the widest it has ever carried. In the women's health, Ferticare retains its leadership in recurrent implantation failure. The Puregraf group secured entry into major corporate IVF chains this quarter.

Speaker #3: Sparse has completed a full quarter on the rebuild channel. Outstanding days are within standard trade terms. Hospital onboarding has resumed at scale, and coverage is now balanced between nursing homes and corporate chains.

Speaker #3: Two points worth noting are: focus has moved towards our own manufactured brands, which help both margin and supply reliability, and the dual chamber bag is gaining acceptance in major institutions.

Speaker #3: The division also entered Northeast and Jammu & Kashmir, applying the new channel architecture from the outset. Its launch pipeline for the year is the widest it has ever carried.

Speaker #3: In Women's Health, Ferticare retains its leadership in recurrent implantation failure. The Puregraph Group secured entry into major corporate IVF chains this quarter. Investigator-led studies with senior Indian clinicians have begun.

Avik Das: The investigator-led studies with senior Indian clinicians have begun. Zenoa continues its planned shift away from injectables towards prescription-led chronic therapies. The antioxidant range we introduced is now a meaningful growth layer, and the two first mover launches are ahead, one in osteoarthritis and one addressing a metabolic ovarian segment. On botulinum toxin, we remain the number 2 brand in India in toxin type A, manufactured from our own strain. The in-licensed filler and biostimulator portfolio is progressing through its supply and regulatory steps for launch during this financial year, with no significant capital expenditure from us. On the therapeutics side, the franchise continues its expansion beyond the core neurology into urology, ophthalmology, pain management, as well as neurosurgery. In the nutraceutical and Ayurveda division, our lead joint care range outperformed its relevant product market this quarter.

Speaker #3: Zenova continues its planned shift away from injectables towards prescription-led chronic therapies. The antioxidant range we introduced is now a meaningful growth layer, and the two first-mover launches are ahead.

Speaker #3: One in osteoarthritis and one addressing the metabolic ovarian segment. On both, Millennium toxin—we remain the number two brand in India in toxin type A.

Speaker #3: Manufactured from our own strain. The unlicensed filler and biostimulator portfolio is progressing through its supply and regulatory steps for launch during this financial year.

Speaker #3: With no significant capital expenditure from us. On the therapeutic side, the franchise continues its expansion beyond core neurology into urology, ophthalmology, pain management, as well as neurosurgery.

Speaker #3: In the Nutritional and Ayurveda division, our lead joint care range outperformed its relevant product market this quarter. Our acid blocker continues to build gastrointestinal therapy into a second pillar alongside pain.

Avik Das: Our acid blocker continues to build gastrointestinal therapy into second pillar alongside pain, and the division has prepared its first entry into an allopathic pain management segment, which launches during the year. In the international front, the model change is now producing fee income alongside supply revenue. During the quarter, we progressed licensing in Europe, executed a contract manufacturing and licensing arrangement with a North American counterparty, and received first contract manufacturing orders in Australia. On our registrations front, we secured approvals across eight countries during the quarter, and in one of them, five presentations in a single therapy area cleared on the same day, which is exactly what the therapy basket approach was built to do. The platform is in place, and the pieces are moving to schedule. Our medium-term expectations, which Pranav and Guntα Sir have set out in previous calls, are unchanged.

Speaker #3: And the division has prepared its first entry into the allopathic pain management segment, which launches during the year. On the international front, the model change is now producing free income alongside supply revenue.

Speaker #3: During the quarter, we progressed licensing in Europe, executed a contract manufacturing and licensing arrangement with a North American counterparty, and received the first contract manufacturing orders in Australia.

Speaker #3: On our registrations front, we secured approvals across eight countries during the quarter, and in one of them, five presentations in a single therapy area cleared on the same day, which is exactly what the therapy basket approach was built to do.

Speaker #3: So the platform is in place, and the pieces are moving according to schedule. The medium-term expectations that Pranav and Runta sir have set out in previous calls remain unchanged.

Speaker #3: With that, I'll hand over to Runta Sir for the finance update.

Avik Das: With that, I will hand over to Guntα Sir for the finance update.

Speaker #4: Thank you, Avi. I was going to give the highlights of Q1 of 26, 27 versus Q1 of 25, 26. Total revenue from the operation in 20 Q1 of 25, 26 was 226.9 crores compared to Q1 of 26, 27, 260.8 crores.

Devkinandan Roonghta: Thank you, Abhi. I am going to give the highlights of Q1 of FY27 versus Q1 of FY26. Total revenue from the operation in Q1 of FY26 was 226.9 crores compared to Q1 of FY27, 260.8 crores. The EBITDA for Q1 of FY26 was 33.2 crores, whereas the Q1 of FY27 is 47.2 crores. EBITDA margin in Q1 of FY26 was 14.6%, whereas Q1 of FY27 is 18.09%. Profit before tax in Q1 was 16.3 crores, whereas Q1 of FY27 is 30.1 crores. The PAT margin in Q1 FY26 was 7.1%. In Q1 FY27 is 11.56%. The profit after tax in Q1 of FY26 was 12.1 crores. In Q1 FY27 is 22.46 crore. The PAT margin in Q1 for FY26 was 5.3%, whereas in Q1 FY27 was 8.61%. Now, I am giving you financial highlights of Q1 FY27 versus Q4 of FY26.

Speaker #4: The EBITDA for Q1 of '25-'26 was ₹33.2 crores, whereas in Q1 of '26-'27, it is ₹47.2 crores. EBITDA margin in Q1 of '25-'26 was 14.6%, whereas in Q1 of '26-'27, it is 18.09%.

Speaker #4: Profit before tax in Q1 was ₹16.3 crore, whereas Q1 of '26-'27 is ₹30.1 crore. The PBT margin in Q1 '25-'26 was 7.1%.

Speaker #4: In Q1 2026-27, it is 11.56%. The profit after tax in Q1 of 2025-26 was ₹12.1 crores. In Q1 2026-27, it is ₹22.46 crores.

Speaker #4: The PAC margin in Q1 for 25, 25, 26 was 5.3% whereas in Q1 26, 27 was 8.61%. Now I'm giving a financial highlights of Q1 26, 27 versus Q1 Q4 of 26, 25, 26.

Speaker #4: The total revenue for Q4 of 25, 26 was 252.1 crores whereas Q1 of 26, 25, 26, 27 is 260.8 crores. The EBITDA margin in Q4 of 25, 26 was 44.7 crores.

Devkinandan Roonghta: The total revenue for Q4 of FY26 was 252.1 crores, whereas Q1 of FY27 is 260.8 crores. The EBITDA margin in Q4 of FY26 was 44.7 crores. Q1 of FY27 is 47.2 crores. EBITDA margin in Q4 of FY26 was 17.74%. Q1 of FY27 is 18.9%. Profit before tax in Q4 of FY26 was 27.6 crores, whereas Q1 of FY27 is 30.1 crores. The PAT margin in Q4 for FY26 for 10.96%. Q1 of FY27 is 11.46%. The profit after tax in Q4 of FY26 was INR 20.6 crores, whereas Q1 of FY27 is INR 22.46 crores. Thank you.

Speaker #4: Q1 of 26-27 is ₹47.2 crores. EBITDA margin in Q4 of 25-26 was 17.74%. Q1 of 26-27 is 18.9%. PAC margin, profit before tax in Q4 of 25-26, was ₹27.6 crores.

Speaker #4: Whereas Q1 of '25–'26, '27 is ₹30.1 crores. The PAC margin in Q4 for '25–'26 was 10.96%. Q1 of '26–'27 is 11.56%.

Speaker #4: The profit after tax in Q4 of '25-'26 was ₹20.6 crores, whereas in Q1 of '26-'27 it is ₹22.46 crores. Thank you.

Speaker #1: Thank you. We can now proceed to the Q&A session.

Ami Shah: Thank you. We can now proceed for the Q&A session.

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

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

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

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

Speaker #2: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Bhavya from Samantha Capital. Please proceed with your question.

Speaker #4: Yeah, thank you. Am I audible?

[Analyst] (Samasta Capital): Yeah, thank you. Am I audible?

Speaker #2: Yes, you're audible.

Operator 2: Yes, you're audible.

Operator: Yes, you're audible.

Speaker #4: Yeah, congratulations. I just wanted to know two things on GLP. Are we also participating in terms of our own brand, and also, has the third-party GLP we were manufacturing started to come into our revenues?

[Analyst] (Samasta Capital): Yeah. Congratulations first question. Just wanted to know two things on GLP. Are we also participating in terms of our own brand and also has the third party GLP manufacturing started kind of coming into our revenues?

Speaker #5: Yes, hi Bhavya, Pranav here. So, in terms of GLP-1 specifically, semaglutide, as we have mentioned in the calls before, we have partnered up with Hetero.

Pranav Choksi: Yes. Hi, Bhavya. Pranav here. In terms of GLP-1, specifically semaglutide, as we have mentioned in the calls before, we have partnered up with Hetero. Hetero got their permission in May 2026. Our traction of their revenues was reflected in Q1. To answer your question, we have started the CMO operations, which will, I would say, take some steam in Q2 but have further steam in Q3. The objective would be CMO in the domestic space on maybe 30% level, but 70% we hope at the end of the year would be capacity used for the international market where Hetero and Gufic as a single channel has filed in more than 22 countries. Of course, our revenues would be purely as a CMO. Again, I am reiterating, we are not going to do any front-end, neither in India, neither abroad.

Speaker #5: So, HETRO got their permission in May 2020, 6. So our traction of their revenues was residual in Q1, but yes, to answer your question, we have started the CMO operations, which will, I would say, pick up some steam in Q2 but have further steam in Q3.

Speaker #5: The objective would be CMO in the domestic space on maybe a 30% level, but 70% we hope, at the end of the year, would be capacity used for the international market, where HETRO and Gufi as a single channel have filed in more than 22 countries.

Speaker #5: But of course, our revenues would be purely as a CMO. Again, I'm reiterating, we are not going to do any front-end, neither in India nor abroad.

Speaker #5: We will be using this as a CMO opportunity to support Hetero, like we did in the past with Remdesivir, and they will be front-ending the product internationally as well as doing CMO in India.

Devkinandan Roonghta: We will be using this as a CMO opportunity to support Hetero like we did in the past with remdesivir, and they will be front-ending the product internationally as well as doing CMO in India.

Pranav Choksi: We will be using this as a CMO opportunity to support Hetero like we did in the past with remdesivir, and they will be front-ending the product internationally as well as doing CMO in India.

[Analyst] (Samasta Capital): I understand. Also the international market also changing model from a distributor to IP. If possible, can you just explain how that changes things and how that kind of benefits us?

Speaker #4: Understood. And also, in the international market, there was a change in the model from a distributor-led approach to an IPO. So, if possible, can you just explain how that changes things and how that kind of benefits us?

Speaker #5: Oh, sorry. Can you repeat your question again? I lost your voice in the middle.

Devkinandan Roonghta: Sorry, can you repeat your question again? I lost your voice in the middle.

Pranav Choksi: Sorry, can you repeat your question again? I lost your voice in the middle.

Speaker #4: No, I was saying, in the presentation, you had a specific model for international—from distributor-led to IPO. So can you just...

[Analyst] (Samasta Capital): No, I was saying in the presentation, you had specified the model for international from distributor-led to IP-led.

Devkinandan Roonghta: Yeah. Right. Okay. I think I got your question correctly if I understood. Your question is that, basically in our presentation we have mentioned we are going from a B2B as well as to a B2C. In other words, where earlier we used to just manufacture products and give it to certain distributors in the emerging markets. Now our strategy specifically for markets like Africa, Southeast Asia, as well as South Asia, that is where we have a front-end, I would say, ambition. Just to add upon that, we have just recruited a team which is based in Mexico. One person who is based in Africa recruiting further people. One person who is based in Philippines and two more people who have an African and a Southeast Asian, I would say, legacy in Mumbai.

Pranav Choksi: Yeah. Right. Okay. I think I got your question correctly if I understood. Your question is that, basically in our presentation we have mentioned we are going from a B2B as well as to a B2C. In other words, where earlier we used to just manufacture products and give it to certain distributors in the emerging markets. Now our strategy specifically for markets like Africa, Southeast Asia, as well as South Asia, that is where we have a front-end, I would say, ambition. Just to add upon that, we have just recruited a team which is based in Mexico. One person who is based in Africa recruiting further people. One person who is based in Philippines and two more people who have an African and a Southeast Asian, I would say, legacy in Mumbai.

Speaker #5: So I think I got your question, and correct me if I misunderstood. So your question is that basically in our presentation, we have mentioned we have gone from B2B as well as to B2C.

Speaker #5: In other words, earlier we used to just manufacture products and give them to certain distributors in the emerging markets. Now, our strategy is specifically for markets like Africa, Southeast Asia, as well as South Asia.

Speaker #5: Africa is where we have a front-end, I would say, ambition. So just to add upon that, we have just recruited a team which is based in Mexico; one person was based in, I mean, Africa, recruiting for the people.

Speaker #5: One person who is based in the Philippines, and two more people who have an African and a Southeast Asian, I would say, legacy in Mumbai. They will be seated in Mumbai.

Devkinandan Roonghta: They will be seated in Mumbai, but of course traveling 15 days of the month. Gradually, what we are trying is, as we have done it in Europe in the past by trying to get our own subsidiaries made in Ireland and UK, where the marketing authorizations remain with us. In these markets also now, not now, but since the last 2 and a half years, we have been always saying that we are trying to get our registrations in. Some of our registrations have started coming in, and we hope in this coming year and next year, we should have more registrations in place. So right now would be the best time for us to actually have a separate team. Of course, in some countries, maybe start off with the distributor field force till we reach economic of scale.

Pranav Choksi: They will be seated in Mumbai, but of course traveling 15 days of the month. Gradually, what we are trying is, as we have done it in Europe in the past by trying to get our own subsidiaries made in Ireland and UK, where the marketing authorizations remain with us. In these markets also now, not now, but since the last 2 and a half years, we have been always saying that we are trying to get our registrations in. Some of our registrations have started coming in, and we hope in this coming year and next year, we should have more registrations in place. So right now would be the best time for us to actually have a separate team. Of course, in some countries, maybe start off with the distributor field force till we reach economic of scale.

Speaker #5: But of course, traveling 15 days of the month. So, gradually what we are trying is, you know, as we have done in Europe in the past by trying to get our own subsidiaries made in Ireland and the UK, where the marketing authorizations remain with us.

Speaker #5: In these markets also now—actually, not now, but since the last two and a half years—we have been always saying that we are trying to get registrations in.

Speaker #5: So, some of our registrations have started coming in, and we hope that in this coming year and next year, we should have more registrations in place.

Speaker #5: So, right now would be the best time for us to actually have a separate team. Of course, in some countries, maybe start off with the distributor field force till we reach economies of scale.

Speaker #5: Wherever we have enough registration and economies of scale, we would like to deploy our own, I would say, field experts, which help us to get better pricing.

Devkinandan Roonghta: Wherever we have enough registration and economic of scale, we would like to deploy our own, I would say, field experts, which help us to get a better pricing. Somewhere if we are getting, let's say, anything around 40% to 50% margins, we hope we can push them upwards of 15%, 20% more when we have our own field force. At the same time, also the IP and the trademark belongs to us. It's also creating our own IP and intangible assets going forward. That's the strategy which we have started doing since March. Once Dr. Raja started coming in last year, we started first in Europe and then this year in emerging markets. This recruitment has happened in the Q1.

Pranav Choksi: Wherever we have enough registration and economic of scale, we would like to deploy our own, I would say, field experts, which help us to get a better pricing. Somewhere if we are getting, let's say, anything around 40% to 50% margins, we hope we can push them upwards of 15%, 20% more when we have our own field force. At the same time, also the IP and the trademark belongs to us. It's also creating our own IP and intangible assets going forward. That's the strategy which we have started doing since March. Once Dr. Raja started coming in last year, we started first in Europe and then this year in emerging markets. This recruitment has happened in the Q1.

Speaker #5: So, you know, in some areas, if we are getting, let's say, a 50-50— I mean anything around 40 to 50 percent margins— we hope we can push them upward by 15 to 20 percent more when we have our own field force.

Speaker #5: At the same time, the IP and the trademark belong to us. It also helps us create our own IP and intangible assets going forward.

Speaker #5: So that's the strategy which we have started doing since March. Once Dr. Raja started coming in last year, we started first in Europe and then this year in emerging markets.

Speaker #5: So this recruitment has happened in Q1.

Speaker #4: Okay, that was very helpful. I have a few more questions. I'll get back into it. Thank you.

[Analyst] (Samasta Capital): Okay. Not a problem. I have a few more questions. I will get back in queue. Thank you.

Speaker #5: Sure.

Devkinandan Roonghta: Sure.

Pranav Choksi: Sure.

Speaker #2: Thank you. The next question is from the line of Aarav, an individual investor. Please proceed with your question. Yes, you're audible.

Operator 2: Thank you. The next question is from the line of Aarav, an individual investor. Please proceed with your question.

Operator: Thank you. The next question is from the line of Aarav, an individual investor. Please proceed with your question.

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

[Shareholder] (Private Investor): Hello, am I audible?

Operator 2: Yes, you are audible.

Operator: Yes, you are audible.

Speaker #5: Sir, I actually wanted to ask—first of all, congratulations on the portal. I wanted to ask if you are expecting a certificate for the Europe export.

[Company Representative]: Sir, I actually wanted to ask, first of all, congratulations on the quarter. I wanted to ask if you are expecting a certificate for the Europe export. Any update on that?

[Shareholder] (Private Investor): Sir, I actually wanted to ask, first of all, congratulations on the quarter. I wanted to ask if you are expecting a certificate for the Europe export. Any update on that?

Speaker #5: Any update on that? So, yeah, I think in Navsari we already have an EU certification, which we already use to continue the exports. The EU certificate I think we are referring to in the presentation would be for Indoor.

Pranav Choksi: Well, I think in Navsari, we already have an EU certification, which we already continue the exports. The EU certificate, I think what we are referring in our presentation would be for Indore. The Indore certificate would I think we are just waiting for the feedback from the authority. There were some complaints which we already have replied since the last two, three months, and even the finalist data also has gone. Hopefully in the next maybe a month or two, we should be hearing something from them.

Speaker #5: So, the indoor certificate—I think we are just waiting for the feedback from the authority. There was some compliance, which we already have replied to in the last two to three months, and even the finalist data has also gone.

Speaker #5: So hopefully, in the next, you know, maybe a month or two, we should be hearing something from them. Okay. And sir, about the Indore factories— it was unused; it was only working at 30% capacity. Are we expecting a jump on that?

[Company Representative]: Okay. And sir, about the Indore factory, it was only used at 30% capacity. Are we expecting a jump on that?

[Shareholder] (Private Investor): Okay. And sir, about the Indore factory, it was only used at 30% capacity. Are we expecting a jump on that?

Speaker #5: Yeah, of course. So, if you see quarter by quarter, the capacity utilization is going up as more and more products for the domestic, or for CMO, or for our own brands, or for that matter, wherever there are certain two or three countries where we have just been able to go for the transition and, I would say, site addition.

Pranav Choksi: Yeah, of course. If you see quarter by quarter, the capacity utilization is going up as more and more products for the domestic or for CMO or for our own brands or for that matter, wherever certain two, three countries which we have just been able to go for the transition and I would say site addition, we have already started that. Apart from that, we have taken validation batches. So, in terms of pure capacity expansion, yes, the amount has gone from 18% to 22%, last year, 20% to 25% last year than this year, close to 30%, 35%, and hopefully, like I said, we should end up the year on around 40%, 45% capacity utilization. So we are on course for that. Margin expansion using the Indore facility would of course come once we have what you call our EU in place.

Speaker #5: We have already started that. Apart from that, we have taken validation batches. So, in terms of pure capacity expansion, yes, the amount has gone from 18 to 22 percent last year, and from 20 to 25 percent last year.

Speaker #5: Then this year, close to 30, 35, and hopefully, like I said, we should end up the year at around 40–45 percent capacity utilization.

Speaker #5: So we are on course for that. Margin expansion using the indoor facility would, of course, come once we have what you call our, you know, EU in place.

Speaker #5: EU market, EU certification really opens a lot of markets for us, so we are just waiting for that. And also, apart from that, one of our, I would say, partners has also triggered their, I would say, submission for the US from our site.

Pranav Choksi: EU certification really opens a lot of markets for us, so we are just waiting for that. Also, apart from that, one of our, I would say, partners have also triggered their, I would say, submission for US from our site. So we expect them also in the next, I would say, a quarter or two with us as per the goal period. Yes, we are looking for all these movement of export markets, which would help us to not only utilize the capacity, but help us in our margins also.

Speaker #5: So, we expect them also in the next, you know, I would say a quarter or two, to visit us as per the goal period.

Speaker #5: So yes, we are looking for all these moments in export markets, which would help us to not only utilize the capacity but also help us in our margins.

Speaker #5: Yes, sir. Regarding the margins, from June 2023 to, I think, September 2024, we had an operating margin of 18%. But it dropped after that.

[Company Representative]: Yes, sir. Regarding the margins, from June 2023 to, I think, September 2024, we had operating margin of 18%, but it dropped after that, but now it is 18%. So is 18% the new normal margin for the years coming?

[Shareholder] (Private Investor): Yes, sir. Regarding the margins, from June 2023 to, I think, September 2024, we had operating margin of 18%, but it dropped after that, but now it is 18%. So is 18% the new normal margin for the years coming?

Speaker #5: But now it is 18 percent. So is 18 percent the new normal margin for the coming year? Yes, and I'm sure Dr. explained this in the last two calls also.

Pranav Choksi: Yes. I am sure Devkinandan Roonghta explained this in the last two calls also, because in the period which you have mentioned, at that time, the total expense of Indore as well as the depreciation and the interest were being capitalized. Hence, all those factors were till, I believe, October 2024 or that Q3 2025 were part of capitalization, and that is why after that you saw a drop post Q3, Q4 2025. But now with capacity utilization, with natural business progression, as well as exports margin expansion along with domestic business also. So what you are seeing, you are right, this is the, I would say, start of the improvement of margins going forward. Yes.

Speaker #5: Because in the period which you have mentioned, at that time, the total expense of indoor as well as the depreciation and the interest were being capitalized.

Speaker #5: So, hence, all those factors were, till I believe October 2024 or that Q3 '25, part of capitalization. And that's why, after that, you saw a drop post Q3, Q4 2025.

Speaker #5: But now, with capacity utilization, natural business progression, as well as exports, margin expansion along with the domestic business also, what you are seeing—as you’re right—this is, I would say, the start of the improvement of margins going forward.

Speaker #5: Yes, okay. So, thank you so much. That cleared up a lot. Thank you. Yeah.

[Company Representative]: Okay, sir. Thank you so much. That cleared a lot. Thank you.

[Shareholder] (Private Investor): Okay, sir. Thank you so much. That cleared a lot. Thank you.

Pranav Choksi: Yeah.

Speaker #2: Thank you. The next question is from the line of Agam Shah, an investor. Please proceed with your question.

Operator 2: Thank you. The next question is from the line of Agam Shah, an investor. Please proceed with your question.

Operator: Thank you. The next question is from the line of Agam Shah, an investor. Please proceed with your question.

Speaker #5: Yeah.

Agam Shah: Yes. Two questions. One, if you can, maybe it is still early, but can you elaborate on the botulinum toxin and tie-up which we did last quarter with the Canada fillers thing. How can it scale up this year in terms of revenue and going ahead? One more question on the GLP-1. You said you are doing the CMO route via partnership. So how much revenue or how much growth can it come this year?

Speaker #4: Just two questions. One, if you can, you know, maybe it's still early but if you can, could you elaborate on the toxin type, which we did last quarter with the Canada fillers thing.

Speaker #4: How can it scale up this year in terms of revenue and going ahead? And one more question on the GLP-1—you said you're doing the CMO route.

Speaker #4: We have partnerships. So, how much revenue or how much growth could come this year?

Speaker #5: Sure. So, the first question is about our aesthetic division, where I think we did the tie-up last year for the fillers. The fillers as a category complement our botulinum toxin product, because toxin and fillers are two important tools in the hands of aesthetics practitioners for their therapy.

Pranav Choksi: Sure. The first question being about our aesthetic division, where I think we have done the tie-up last year for the fillers. So the fillers, as a category, complement our botulinum toxin product because toxin and fillers are two important tools in the hand of aesthetics practitioners for their therapy. So the fillers market in India is around 200 crores. I think this is as per the import data and other data which we have derived from. So we feel that this filler market is much bigger than the toxin market as of now in India. Anywhere we used to go to meet our doctors, we always expected the same company to have a toxin and a filler.

Speaker #5: So the fillers market in India is around ₹200 crore. I think this is as per the import data and the other data which we have, which we have derived from.

Speaker #5: So we feel that this filler market is much bigger than the toxin market as of now in India. And wherever we used to go to meet our doctors, we always, you know, expected the same company to have a toxin and a filler.

Speaker #5: So, you know, this just helps us in our practice. It helps us in our training. It helps in the knowledge—this imitation. And I just didn't want to tie up with any other filler provider.

Pranav Choksi: This just helps us in our practice, it helps us in our training, it helps in our knowledge dissemination. I really just didn't want to tie up with any other filler provider. So we are fortunate enough, and my team did a great job that Revance from Canada, who is number 2 in US and also present in more than 32, 33 countries in the world, they have selected us to partner with them for India. So we feel that the revenue would be captured maybe by post-December because we have started the registration process in Q4 last year. So we feel that maybe by Q2 or mid of Q3, we should get the registration. We hope at least if not December, maybe January, we should launch the filler in the Indian market. So our first year projections are decent.

Speaker #5: So, we are fortunate enough, and you know, my team did a great job that readiness Prolinium from Canada, who is number two in the US and also present in more than 32, 33 countries in the world.

Speaker #5: They have selected us to partner with them for India, so we feel that the revenue would be captured maybe by post-December, because we have started the registration process in Q1.

Speaker #5: I'm sorry, Q4 last year. So we feel that maybe by Q2 or mid of Q3, we should get the registration. And we hope at least December—if not December, maybe January—we should launch the filler in the Indian market.

Speaker #5: So our first year projections are decent. But let's again instead of me giving you numbers I've given you total market numbers and we hope that with the help of these fillers we can also not only strengthen our number two position but very close to you know very close we can grab the number one position in terms of toxin and fillers in the next you know three to five years in India.

Pranav Choksi: But again, instead of me giving you numbers, I have given you total market numbers, and we hope that with the help of these fillers, we can also not only then in our number two position, we are very close. We can grab the number one position in terms of toxin and fillers in the next three to five years in India. So that answers, I think, part one of your question. Part two of your question is about GLP-1. Yes, in GLP-1, again, I reiterate that our focus is purely on CMO. In the Q1 also, we had a 10 to 15-day planned shutdown because we were introducing a new machine, assuming that in March Hetero would get the permission.

Speaker #5: So that answers, I think, part one of your question. Part two of your question is about GLP-1. So yes, in GLP-1, again, I reiterate that our focus is purely on CMO.

Speaker #5: In Q1, we also had a 10 to 15-day planned shutdown because we were introducing a new machine, assuming that in March Hetero would get the permission.

Speaker #5: And Hetero got some part of the, I would say, strengths of semaglutide approved in May, and some other strengths also are in the process of getting approved or have been approved last month.

Pranav Choksi: Hetero got some part of the, I would say, strengths of semaglutide approved in May and some other strengths also are in the process of getting approved or have been approved last month. I will check and get back to you. So we hope that the traction will pick up from Q2. Some traction has happened in the month of July, much more we see in August. We hope there is some, again, media fills in void by which, again, the plant will be closed for five days and there are visits. Q3 is when we will see the actual traction happen. So, again, in terms of numbers, they would be part of our 15% year-over-year growth, which we always tell to people, and we already embedded in this. Again, Anshuman, our role is purely as a CMO.

Speaker #5: I'll check and get back to you. So, we hope that the traction will pick up from Q2. Some traction has happened in the month of July.

Speaker #5: Much more we see in August. We hope there are some, again, media fills involved, by which, again, the plant will be closed for five days and there are visits.

Speaker #5: And Q3 is when we will see the actual traction happen. So again, in terms of numbers, they would be part of our 15% year-over-year growth, which we always tell to people.

Speaker #5: And we are already embedded in this. Again, I'm saying our role is purely as a CMO. We have no front-end plans or revenue forecast for the GLP-1 on our own.

Pranav Choksi: We have no front-end plans or revenue forecast for the GLP-1 on our own.

Speaker #4: And docs also, are you being conservative when you say you're going to grow by 15 percent?

Agam Shah: On tox also. Are you being conservative when you say you are going to grow by 15%?

Pranav Choksi: You mean 15% year-over-year as a company? Yes. I am not being conservative because there are some product mix we are also leaving out and we will be getting a little low yielding. I would say our 15% to 20% is what we say we should grow year-on-year as overall, as a company.

Speaker #5: You mean 15 percent year-over-year as a company? Yes. I'm not being conservative, because there are some products mixed in here—also, we're leaving out and will be getting out of certain products—which are low yielding.

Speaker #5: So, I would say a 15 to 20 percent is what we say we should grow year on year, overall as a company. Yeah.

Speaker #4: So is it that maybe from next year you'll be reaching that inflection to grow beyond 20%, or has the business said that we'll be growing only at 15-20%?

Agam Shah: Is it that maybe from next year you will be reaching that inflection to grow beyond 20% or the business has said that we will be growing only at 15%, 20%? The thing I am trying to understand is it somewhere or is it something can we push the pedal and grow beyond 20%? The scale we are, it does look like 20% plus is achievable.

Speaker #4: So the thing I'm trying to understand is: is it somewhere, or is it something? I mean, can we push the pedal and, you know, grow beyond 20%?

Speaker #4: At the scale we are at, it does look like, you know, 20 percent plus is achievable.

Speaker #5: All right. So, I think I would love to give you any other comments right now on the call; otherwise, our efforts are on to grow much beyond.

Pranav Choksi: All right. I think I would love to give you any other comments right now on the call otherwise, but our efforts are on to grow much beyond. But 15% to 20% is what we commit to you that would be our bare minimum.

Speaker #5: But 15 to 20 percent is what we commit to you—that would be a bare minimum.

Speaker #4: Okay. Okay. Okay. And Butax, are we launching in export markets?

Agam Shah: Okay. And Zarbot, are we launching in export markets?

Speaker #5: We have started the process of registering the standoff. Again, Botox is not a brand name; that's Allergan. So, Stanox is our brand name.

Pranav Choksi: We have started the process of registering the Stunnox. Again, BOTOX is not our brand name. That is Allergan. So Stunnox is our brand name. So our botulinum toxin, Stunnox and Zarbot, we are in the process of registering in some countries which take around 12 to 18 months, depending on the different geographies. But the limitation would be our facility. Our current facility is only WHO Phase 1 with limited capacity. So we are right now looking to register them only in the Southeast Asian markets, African markets to start off with. For the other global markets, we have a strategy maybe post next year once we see further cash flow coming.

Speaker #5: So, our Botulinum toxin Stanox and Zarboard—we are in the process of registering these in some countries, which takes around 12 to 18 months depending on the different geographies.

Speaker #5: But the limitation would be our facility. Our current facility is only WHO Phase I, with limited capacity. So we are right now looking to register them only in the Southeast Asian markets and African markets to start off with.

Speaker #5: For the other global markets, we have a strategy—maybe post next year—once we see further cash flow come.

Speaker #4: Okay, okay. Are all your indoor capabilities now operational, or is that something you'll get to in Q2?

Agam Shah: Okay. Indore, all the capabilities are now operational or something is yet to come in Q2?

Speaker #5: No, the indoor unit is completely operational. What I think Avid meant from his call is that there are different product lines which we'll keep on introducing.

Pranav Choksi: No, Indore as a unit is completely operational. What I think Avik meant from his call that there are different product lines which we will keep on introducing. So earlier, lyophilized liquid were introduced in the form of small molecules. There were some GLP-1 validation batch taken last year, last two quarters. This year in Q1, we have initiated the, I would say, the installation and qualification of the depot as well as the liposomal injection. So these are just new product lines which will keep on being added to the Indore facility. It is not that any new infrastructure or equipment or anything of that sort or any major CapEx is being done. In the existing CapEx, we are just adding product lines, nothing else.

Speaker #5: So, earlier, Lyophilized liquids were introduced in the form of small molecules. There were some in the GLP-1 validation batch taken last year, in the last two quarters.

Speaker #5: And this year, in Q1, we have initiated, I would say, the installation and qualification of the depot, as well as the liposomal injection.

Speaker #5: So these are just new new product lines which we'll keep on being added to the indoor facility. It's not that any new infrastructure or equipment or anything of that sort is any major capex is being done.

Speaker #5: In the existing capex, we are just adding product lines—nothing else.

Speaker #4: Okay. Okay.

Agam Shah: Okay.

Speaker #5: Yeah.

Pranav Choksi: Yeah.

Speaker #4: Got it. Thanks. I'll join in on that.

Agam Shah: Got it. Thanks. I join in that.

Speaker #1: Thank you. Ladies and gentlemen, anyone who wishes to ask a question, please press star and one on your touch-tone telephone. To ask a question, please press star and one at this time.

Operator 2: Thank you. Ladies and gentlemen, anyone who wishes to ask a question, please press star and one on their touch-tone telephone. To ask a question, please press star and one at this time. The next question is from the line of Nitya Shah from Kamya Khia Wealth Management. Please proceed with your question.

Operator: Thank you. Ladies and gentlemen, anyone who wishes to ask a question, please press star and one on their touch-tone telephone. To ask a question, please press star and one at this time. The next question is from the line of Nitya Shah from KamayaKya Wealth Management. Please proceed with your question.

Speaker #1: The next question is from the line of Nitya Shah from Kamaya Care Wealth Management. Please proceed with your question.

Speaker #5: Oh, hi. Congrats on a good set of numbers. I saw in the presentation there was a mention of a tie-up with a global health organization, so could you please expand a little bit more on that?

Nitya Shah: Hi. Congrats on a good set of numbers. I saw in the presentation that there was a mention of a tie-up with a global health organization. Could you please expand a little bit more on that? What is the opportunity here as you get access to 109 countries? Actually, Avik, can you refresh me, what was this tie-up about? Is it and which sector?

Speaker #5: What is the opportunity here as you get access to 109 countries? Actually, Avid, can you refresh me on what this tie-up was about? Is it, in which sector?

Pranav Choksi: Actually, Avik, can you refresh me, what was this tie-up about? Is it and which sector?

Pranav Choksi: This was with respect to some of our antifungal antibiotics with CHAI.

Avik Das: This was with respect to some of our antifungal antibiotics with CHAI.

Speaker #4: This was with respect to some of our anti-fungal antibiotics with Chai.

Speaker #5: Okay, okay. So, yeah. So, for you, there are global types—inwards and outwards. So I had to ask this question—please pardon me. In terms of the special type which you're referring to, is that for the European markets? And apart from the European markets, there are these special markets for the liposomal product where we have signed up with the CHAI Foundation for liposomal amphotericin B.

Nitya Shah: Okay. For you, there are global tie-ups inwards and outwards, so I had to ask this question. Please pardon me. In terms of the special tie-up which you are referring is that for the European markets and apart from the European markets, there are these specialist markets for the liposomal product where we have signed up with the CHAI Foundation for liposomal amphotericin B, and they will help us to access more than 100 markets of the molecule of liposomal amphotericin B. For that, there are certain bioequivalence studies which will be done. We initiated this already last year and I believe by August or September, we should have the studies ready and then we will be filing it for the further submission to WHO PQ as well as the other countries.

Pranav Choksi: Okay. For you, there are global tie-ups inwards and outwards, so I had to ask this question. Please pardon me. In terms of the special tie-up which you are referring is that for the European markets and apart from the European markets, there are these specialist markets for the liposomal product where we have signed up with the CHAI Foundation for liposomal amphotericin B, and they will help us to access more than 100 markets of the molecule of liposomal amphotericin B. For that, there are certain bioequivalence studies which will be done. We initiated this already last year and I believe by August or September, we should have the studies ready and then we will be filing it for the further submission to WHO PQ as well as the other countries.

Speaker #5: And they will help us to access more than 100 markets for the molecule liposomal amphotericin B. For that, there are certain bioequivalence studies which will be done. So, we initiated this already last year, and I believe by August or September we should have the studies ready, and then we'll be filing it for further submission to WHO PQ as well as other countries.

Speaker #5: So this is a relationship, and we hope that this molecule will then be taken up. This molecule is from Navsari itself, and now we are in the process of introducing the same to Indore also.

Nitya Shah: So this is a relationship and we hope that this molecule will then be taken up. This molecule is from Navsari itself.

Pranav Choksi: So this is a relationship and we hope that this molecule will then be taken up. This molecule is from Navsari itself.

Pranav Choksi: And now we are in the process of introducing the same to Indore also.

Speaker #4: Okay, understood. Yeah, that's it from my end. Just wanted clarification on this. Thank you.

Nitya Shah: Okay, understood. Yeah, that's it from my end. Just wanted clarification on this. Thank you.

Speaker #5: Yeah.

Pranav Choksi: Yeah.

Speaker #1: Thank you. The next question is from the line of Arvind Arora from A Square Capital. Please proceed with your question.

Operator 2: Thank you. The next question is from the line of Arvind Arora from A Square Capital. Please proceed with your question.

Operator: Thank you. The next question is from the line of Arvind Arora from A Square Capital. Please proceed with your question.

Speaker #5: Hi, thank you for the opportunity. So, with the current capacity, what could be the peak revenue without any further capex? Is it near to 2,700 crores across?

Arvind Arora: Hi. Thank you for the opportunity. With the current capacity, what would be the peak revenue, without any further CapEx? Is it near to INR 2,700 approx?

Speaker #4: So, I think before I ask Rungta sir to answer this question, just to tell you that the revenue would depend on the number of vials the product makes, and also several permutation and combinations are there.

Pranav Choksi: I think, before I ask Rungta sir to answer this question, just to tell you that the revenue would depend on the number of vials the product makes and all those combination is there. However, considering the current, I would say, average revenue per vial what we already have as per legacy, Rungta sir will reply to your question.

Speaker #4: However, considering the current, I would say, average revenue per vial that we already have as per legacy, Rungta sir will reply to your question.

Speaker #5: Basically if you see the expected revenue from our side for 26, 27 will be in the range of around 1100 crores. And you multiply it by every 15 percent increase over year two years you will able to get the revenue because 1100 into 15 percent 1250 then 1450 then it can go up to maximum it can touch up to 1600 crores with existing facilities.

Devkinandan Roonghta: Basically, if you see the expected revenue from our side for 2026, 2027 will be in the range of around INR 1,100 crores, and you multiply it by every 15% increase over year to year, you will be able to get the revenue because INR 1,100 into 15%, INR 1,250, then INR 1,450, then it can go up to Maximum it can touch up to INR 1,600 crores with the existing facilities.

Speaker #5: Okay. Good. In the one answer I think it mentioned that we will be closing our capacity utilization by the year end would be 40 to 45 percent.

Nitya Shah: Okay. In the one answer, I think it mentioned that we will be closing our capacity utilization by the year-end, would be 40% to 45%. Correct? If I extrapolate that, then the number would come near to INR 2,700.

Arvind Arora: Okay. In the one answer, I think it mentioned that we will be closing our capacity utilization by the year-end, would be 40% to 45%. Correct? If I extrapolate that, then the number would come near to INR 2,700.

Speaker #5: Correct. And if I extrapolate that, then the number would come close to 2,700. Yeah. Sorry, go ahead, Rungta sir, then I'll answer this question.

Pranav Choksi: Yeah.

Nitya Shah: So actually, that's okay. Yeah. Sorry, go ahead, Rungta sir, then I'll answer this question. Please.

Devkinandan Roonghta: So actually, that's okay.

Pranav Choksi: Yeah. Sorry, go ahead, Rungta sir, then I'll answer this question. Please.

Speaker #4: With 27, I don't understand. 2,700 means?

Devkinandan Roonghta: 27? I don't understand. 2,700 means?

Speaker #5: So I think I'll come back to what we are referring to. If you see, 40 to 45 percent can be of a tenement vial for a pantoprazole, which might be giving us a revenue of around ₹60 to ₹80 per vial.

Pranav Choksi: I think what I'll come back to what we are referring to. If you see, 40% to 45% can be of a 10 ml vial for a pantoprazole, which might be giving us a revenue of around INR 60 to INR 80 per vial. However, we are also trying to improve the product mix by which we come up with molecules which are costing maybe anything around INR 300 to maximum to INR 1,000, INR 1,500 per vial. And that's why the introduction of depot long-acting injectables as well as liposomes. It'll never be a single category. Always the product mix up all these things. So what Rungta sir is trying to say that Navsari had mostly capped off at around 800 as the total capacity maximum extraction, which was possible.

Speaker #5: However, we are also trying to improve the—what do you call it—the product mix, by which we come up with molecules which are costing maybe, you know, anything around ₹300 to, maximum, ₹1,000–₹1,500 per vial.

Speaker #5: And that's why the introduction of depot long-acting injectables, as well as liposomals, is important. So, it will never be a single category—it's always the product mix of all these things.

Speaker #5: So, what Rungta sir is trying to say is that, you know, Navsari had mostly capped off at around 800 as the total capacity or maximum extraction which was possible.

Speaker #5: Of course, Toxin and Tenants were the only two blocks which were not saturated. So, we should—we could go to around maybe 900–950.

Pranav Choksi: Of course, Toxin and Polynucleotide were the only two blocks which were not saturated, so we could go to around maybe 900, 950. Of course, in Toxin there is no limitation. It's more about market creation. Otherwise, without Toxin it would be around 800 to 900 crores maximum, where the capacity maxed out. So in Indore, anything around 800 to a max of around 1,200 crores, depending on the product mix, that's the maximum, I would say, revenue extraction possible from the current investment, what we have done without any CapEx. So the total CapEx is around 300 odd crores. I think exact is again mentioned in the balance sheet. But we feel that anything around 800 to 1,000 or 800 to 1,200, again, depending on the product mix, the different geographies and the improvement in product basket, what will be, that is possible from Indore.

Speaker #5: Of course, in toxin there is no limitation. It's more about market creation. Otherwise, without toxin, it would be around ₹800 to ₹900 crores maximum, where the capacity will be maxed out.

Speaker #5: So, in indoor, anything around 800 to a maximum of around 1,200 crores, depending on the product mix, that's the maximum, I would say, capacity extraction—I mean, I would say revenue extraction—possible from the current investment that we have done, without any capex.

Speaker #5: So the total capex is around ₹300-odd crores. I think exact, as again mentioned in the balance sheet. But we feel that anything around ₹800 to ₹1,000 or ₹800 to ₹1,200, again depending on the product mix, the different geographies, and the improvement in product basket—what we do—that is possible from Indore.

Speaker #5: So, totally, when I add both of them up—800 plus, around 800 plus 1,000—it comes to around 1,600 to 2,000 crores. That is the maximum capex, I mean maximum revenue, which is possible with the current product basket and current legacy.

Pranav Choksi: Totally when I add both of them up, 800 plus 1,000, it comes to around 1,600 to 2,000 crores is the maximum revenue, which is possible with current product basket and current legacy. If you also refer to our presentation, that is what also we mentioned, that what we were doing as B2B, we are trying to also now change it to B2C. So wherever possible, what we were getting maybe an X price, you are now with us going with our front end in those certain markets. Hopefully in the next one year, two years, three years, four years, we can get at least 2X, 3X, depending on having our own field force and our own penetration. That will be another natural progression which adds and also then in licensing product mix, new product addition, all that adds furthermore.

Speaker #5: If you also refer to our presentation, that's what we also mentioned—that what we were doing as B2B, we are now trying to also change to B2C.

Speaker #5: So, wherever possible, what we were getting maybe an X price a year, now with us going with our front end in those certain markets, hopefully in the next one, two, three, or four years, we can get at least 2x or 3x, depending on having our own field force and our own penetration.

Speaker #5: So that will be another natural progression, which adds. And also then, you know, in licensing, product mix, new product addition, all that adds furthermore.

Speaker #5: So, answering your specific question—with no capex, keeping in mind the current product mix and keeping in mind the current realization per value—then we are looking at anything around 1,600 to 1,800 going forward.

Pranav Choksi: Answering your specific question, that with no CapEx, keeping in mind the current product mix, keeping in the current realization per value, then we are looking at anything around 1,600 to 1,800 going forward. However, efforts are on that with the same infrastructure, we can do a product basket changes by which we can extract that revenue further. So that is how the operation happens. And the capacity what I mentioned, again, I will repeat that 40% to 45% is where the capacity utilization would be on current product mix, which are mostly INR 80 to INR 100 level. We hope that going forward with the product mix changing, we go to around INR 300 and INR 400 and eventually then to an average INR 500 per vial model, then another price benefit or revenue extraction is possible.

Speaker #5: However, efforts are underway so that, with the same infrastructure, we can implement product basket changes, which will help us extract further revenue.

Speaker #5: So that is how the operation happens. And the capacity—what I mentioned, again, I'll repeat that—40 to 45 percent is where the capacity utilization would be on the current product mix, which are mostly at the ₹80 to ₹100 level.

Speaker #5: We hope that going forward, with the product mix changing, we will go to around 300 and 400 rupees, and eventually to an average, you know, 500 rupees per vial model.

Speaker #5: Then another, you know, price benefit or revenue extraction is possible. So, I hope I've given a long answer, but I hope it gives you a good understanding of how the revenue projects.

Pranav Choksi: This is I hope I have given a long answer, but I hope it gives you a good understanding of the revenue projects. Yeah.

Speaker #5: Yes. Yes. Yes. Fair enough. Yes. Thank you. Thank you so much, and all the best. Yeah.

Nitya Shah: Yes, yes. Fair enough. Yes. Thank you. Thank you so much, and all the best.

Arvind Arora: Yes, yes. Fair enough. Yes. Thank you. Thank you so much, and all the best.

Pranav Choksi: Yeah.

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 2: 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. To ask a question, please press Star and One now. The next question is from the line of Ameya from Value Equity. Please proceed with your 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. To ask a question, please press Star and One now. The next question is from the line of Ameya from ValueEquity. Please proceed with your question.

Speaker #1: To ask a question, please press star and one now. The next question is from the line of Amaya from Value Equity. Please proceed with your question.

Speaker #4: Hi. Am I audible?

[Analyst] (Value Equity): Hi, Ameya audible?

[Analyst] (ValueEquity): Hi, Ameya audible?

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

Operator 2: Yes, sir, you're audible.

Operator: Yes, sir, you're audible.

Speaker #4: Hi. So my first question is, in the same Street annual report, I've seen that the company has seen substantial employee addition. So I wanted to know, what is the strategy here?

[Analyst] (Value Equity): My first question is, in the recent period annual report, I've seen that the company has seen substantial employee addition. I wanted to know what is the strategy here? Is it moving to Indore or, as you had initially highlighted on the export side, you are taking in multiple folks. What is the kind of targets that are setting in with this kind of employee addition?

[Analyst] (ValueEquity): My first question is, in the recent period annual report, I've seen that the company has seen substantial employee addition. I wanted to know what is the strategy here? Is it moving to Indore or, as you had initially highlighted on the export side, you are taking in multiple folks. What is the kind of targets that are setting in with this kind of employee addition?

Speaker #4: Is it moving to indoor, or as you had initially highlighted on the export side, you are taking in multiple folks? So what are the kind of targets that you are setting with this kind of employee addition?

Speaker #5: So, yes, a majority of it would be with the indoor addition, as the capacity, I would say, is going up and also as product baskets are being added.

Pranav Choksi: Yeah, a majority of it will be with the Indore addition. As the capacity, I would say, is going up, and also as product basket are being added, that would definitely be one of the things. The other things also what we are adding is in international market, which we hope international market would not be more than, I would say 20, 25. There are other operational, I think team members, regulatory team members also come there. But I would say the majority chunk it will be Indore as well as maybe just say around 50 to 60 people, which will be added on domestic business side in terms of domestic expansion.

Speaker #5: That would definitely be one of the things. The other things also, what we are adding is, when in international market, which we go for, international market would not be more than, like, I would say, 20–25.

Speaker #5: There are other operational, I think, team members—regulatory team members also come up. But I would say the majority chunk would be, it would be indoor, as well as maybe just like, say, around 50 to 60 people which will be added on the domestic business side in terms of domestic.

Speaker #4: Okay. And what are the specific, like, because of the kind of addition? Do we have in place some kind of metrics that we measure productivity from these incremental employee additions? Because it's quite a large number if I take in context the previous years' additions, right?

[Analyst] (Value Equity): Okay. What are the specifics? Because the kind of addition, do we have in place some kind of metrics that we measure productivity from these increments in employee additions? Because it is quite a large number if I take in context to the previous years' additions, right?

[Analyst] (ValueEquity): Okay. What are the specifics? Because the kind of addition, do we have in place some kind of metrics that we measure productivity from these increments in employee additions? Because it is quite a large number if I take in context to the previous years' additions, right?

Speaker #5: So one of the reasons also might be that in certain core areas, where we had a strategy in indoor, you know, we had certain core areas where people were put on training first, and they were first part of a contract, and then they were taken on board.

Pranav Choksi: Well, one of the reason it also might be that in certain core areas where we had a strategy in Indore that we had certain core areas where people were put in on training first and they were first part of contract. Then they were taken on board. So you must have seen that transition also happening in terms of the people coming on payroll. So it is not something which is just added as such on a big way. Because if you see, our employee cost is still growing at the same percentage. It is just, I think, the certain people on contract, not only in Indore but as a strategy in Navsari also, which were earlier for visual inspection or would be part of our packaging or would be part of maybe a core which is linked to quality and efficiency.

Speaker #5: So, you must have seen that transition also happening in terms of the people coming on payroll. So, it's not something which is just added as such in a big way, because if you see, our employee cost is still growing at the same percentage.

Speaker #5: It's just, I think certain people on contract, not only in the indoor unit but also as a strategy in Navsari, which earlier—for you know, visual inspection—would be part of our packaging or would be part of maybe a core area which is linked to quality and efficiency.

Speaker #5: Those people have just been decided to be taken on board to ensure that consistency as well as you know the output both in terms of quality management systems and as well as in terms of quantity is consistent.

Pranav Choksi: Those people have just been decided to be taken on board to ensure that consistency as well as the output, both in terms of quality management systems and as well as in terms of quantity is consistent. So that is one step which we took, which you might have seen that increase last year. But that would be a last year phenomenon. This year you would not feel such a huge addition happening on board. That was a one-time thing.

Speaker #5: So, that is one step which we took, which you might have seen that increased last year. But that would be a last year phenomenon.

Speaker #5: This year, you would not feel such a huge addition happening on. So, that was a one-time thing.

Speaker #4: Okay. And my second question is on the indoor utilization. How do we look at, like in your mind, what would be the ideal production mix maybe over the next three to four years? What's the kind of ideal mix that you're targeting to get that better operating leverage from indoor?

[Analyst] (Value Equity): Okay. My second question is on the Indore utilization. How do we look at, in your mind, what would be the ideal production mix maybe over the next one, two years? What is the kind of ideal mix that you are targeting to get that better operating leverage from Indore?

[Analyst] (ValueEquity): Okay. My second question is on the Indore utilization. How do we look at, in your mind, what would be the ideal production mix maybe over the next one, two years? What is the kind of ideal mix that you are targeting to get that better operating leverage from Indore?

Speaker #5: So, if you see now, we have around four lines there. The fourth line is of ampule, which I'll talk about separately. The third line is of suspension and liquid vial, which we feel that with certain contracts and certain projects, we should have suspensions and liquid formulations, which I hope in the next three years would come close to 80% capacity utilization.

Pranav Choksi: So if you see now we have around four lines there. The fourth line is of ampoule, which I will talk separately. The third line is of suspension and liquid vials, which we feel that with certain contracts and certain projects, we should have suspensions and liquid formulations, which would, I hope in the next three years, that would come close to 80% capacity utilization. The first two lines are basic for lyophilization, which is our core business. So there, right now we have small molecules. Now we are introducing the depot and the liposomal products also from Navsari to do capacity expansion there. So there also, since out of the two lines, we have total six lyophilizers, where four lyophilizers have 100,000 vial capacity and two lyophilizers have 44,000 vial capacity.

Speaker #5: The first two lines are basic for lyophilization, which is our core business. So there we have, right now, small molecules. Now we are introducing the depot and the liposomal products also from Navsari to do capacity expansion there.

Speaker #5: So there also, since we have, you know, out of the two lines, we have a total of six lyophilizers, where four lyophilizers have a 100,000-vial capacity and two lyophilizers have a 44,000-vial capacity.

Speaker #5: The two lyos, which are 44,000-vial capacity, will be ones which will be for more high-value complex injectables, as well as, you know, even small-volume products in anti-infective or any other critical care space, which are very unique in their offerings.

Pranav Choksi: The two lyos which are 44,000 vial capacity will be one which will be for more high-value complex injectables as well as even small volume products in anti-infective or any other critical care space, which are very unique in their offerings. And in the four lyophilizers, which are quite big in terms of output, we aim to do also those basic commodity, but at the same time essential products also from a PPI, from a large-selling antibiotic to an antifungal and so on and so forth. At the same time, there will be these depot products and these liposomal products, which also will be added on one of those big lyophilizers for capacity expansion, which is where the current validation batches are happening. So we see a product mix of around like liquid would be 20% in Indore.

Speaker #5: And in the four lyophilizers, which are quite big in terms of output, we aim to do also those basic commodity, but at the same time essential products—also from a PPI, from a large-selling antibiotic to an antifungal, and so on and so forth.

Speaker #5: At the same time, there will be these depot products and these liposomal products, which also will be added on one of those big lyophilizers for capacity expansion. That is where the current validation batches are happening.

Speaker #5: So we see a product mix of around, you know, like a liquid would be 20 percent in indoor, and lyophilization would still be around 50 to 60 percent.

Pranav Choksi: Our lyophilization would still be around 50%, 60%, but the remaining 20%, 30% would come from the complex injectables also.

Speaker #5: But the remaining 20 percent would come—20 to 30 percent would come—from the, you know, the complex injectables also.

Speaker #4: Okay. So would it be fair to say that, from a mix point of view, maybe by the midpoint of FY28, we would be starting to see the serial operating leverage gains?

[Analyst] (Value Equity): Okay. Would it be fair to say that from a mix point of view, maybe midpoint of FY28, there would be gradually serial operating leverage gains?

[Analyst] (ValueEquity): Okay. Would it be fair to say that from a mix point of view, maybe midpoint of FY28, there would be gradually serial operating leverage gains?

Speaker #5: I hope before that, because there are other things also coming in. So I hope before that we can see something. But you mentioned mid '28, right?

Pranav Choksi: I hope before that, because there are other things also coming in. I hope before that we can see something. But you mentioned mid 2028, right?

Speaker #4: Yeah, mid-2028. Maybe a year out from now for that.

[Analyst] (Value Equity): Yeah, mid 2028. Maybe a year out from now for that.

[Analyst] (ValueEquity): Yeah, mid 2028. Maybe a year out from now for that.

Speaker #5: Oh yeah yeah yeah. You meant you meant mid 2028 financially. Yeah. Sorry. 27 28 financially. So yes you can say by mid 27 28 financial leverage should start kicking in your eye.

Pranav Choksi: Oh, yeah. You meant mid 2028 financial year. Sorry, 2027-2028 financial. Yes, you can say by mid 2027-2028 financial, the leverage should start kicking in. You are right. Yes.

Speaker #5: Yes.

[Analyst] (Value Equity): All right. Thank you. Thank you so much.

[Analyst] (ValueEquity): All right. Thank you. Thank you so much.

Speaker #4: All right. Thank you. Thank you so much.

Speaker #5: Yeah.

Pranav Choksi: Yeah.

Speaker #1: Thank you, ladies and gentlemen. That was the last question from the participants. I now hand over the conference to Ms. Amisha for closing comments.

Operator 2: Thank you. Ladies and gentlemen, that was the last question from the participants. I now hand over the conference over to Ms. Ami Shah for closing comments. Thank you. Over to you, ma'am.

Operator: Thank you. Ladies and gentlemen, that was the last question from the participants. I now hand over the conference over to Ms. Ami Shah for closing comments. Thank you. Over to you, ma'am.

Speaker #1: Thank you, and over to you, ma'am.

Ami Shah: Thank you, Pari, and thank you everyone for joining us today. If you have any additional questions or you would like to have any further information with regards to this call, please feel free to get in touch with the IR team. We will be happy to assist you. Thank you once again for your participation and have a great day. Thank you.

Speaker #2: Thank you. Thank you Pari and thank you everyone for joining us today. If you have any additional questions or you would like to have any further information with regards to this call please feel free to get in touch with the IR team.

Speaker #2: We will be happy to assist you. Thank you once again for your participation, and have a great day. Thank you.

Speaker #1: Thank you. On behalf of Gufic Biosciences Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

Operator 2: Thank you. On behalf of Gufic Biosciences Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you. On behalf of Gufic Biosciences Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 Gufic Biosciences Ltd Earnings Call

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