Aakaar Medical Technologies Ltd — Q4 FY26

Aakaar Medical Technologies Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=BsvsXBATMP8 Published: 1d ago

0:01 1 second Okay. So um good evening everyone and welcome to H2 and FI 2026 earnings call of Akar Medical Technologies Limited. We 0:11 11 seconds have on call with us Mr. Dip Mewani founder and managing director Dr. Rahul Savakande the chief executive officer 0:20 20 seconds and director Rakkesh Parik the chief financial officer. We must remind you that discussion on today's call may include certain forward-looking 0:28 28 seconds statements and must be therefore viewed in conjunction with the risk pertaining to the business. Thank you and over to you sir. 0:40 40 seconds Uh good evening everyone. I'm Maswani here uh founder and managing director of Akar Medical. Welcome to Akar Medical 0:48 48 seconds Technologies H2 and FY26 earnings conference call. On behalf of the board 0:56 56 seconds and our entireity, my thank each of you, our investors, partners and stakeholders 1:03 1 minute, 3 seconds for your continued trust as we complete our first full year as a real estate company on the NSE merge platform. 1:12 1 minute, 12 seconds When I reflect on financial year 26, I see a year that tested our resolve and validated our fundamentals. 1:22 1 minute, 22 seconds The year began with a deliberate restraint. 1:26 1 minute, 26 seconds We consciously tightened credit terms in H1. We moderated sales growth and took short-term pain in favor of long-term final discipline. 1:36 1 minute, 36 seconds That was not an accident. That was a choice. And H2 is proved that it was the right one. 1:42 1 minute, 42 seconds a deliberate dip then a decisive rebound. H2 revenue came in at 41.63 63 1:50 1 minute, 50 seconds uh CR up to by 23% year one year and 64% 1:56 1 minute, 56 seconds over H1 with aida of around rupees 10.95 CR and P of rupees 2:05 2 minutes, 5 seconds 4C cr both at record half year levels for the full year we closed final year 2:12 2 minutes, 12 seconds 26 at 67 crores in revenue 10.97 Kes in Aida and 6.6 K in PAT 2:22 2 minutes, 22 seconds demonstrating compounding profitability even though a year of significant transition. 2:29 2 minutes, 29 seconds What makes this especially meaningful is that we achieved this while 7% strengthening the balance sheet. 2:38 2 minutes, 38 seconds Quarterly data days reduced materially across the year from 209 days in June 2025 to 167 days by March 2026. 2:51 2 minutes, 51 seconds Sortterm borrowings declined. ASM cash equivalent at 16 CR at year end. The IPO 2:58 2 minutes, 58 seconds capital is being purposely deployed rupees 9.3 cr into working capital 3:05 3 minutes, 5 seconds rationalization and the results are now visible. 3:09 3 minutes, 9 seconds On the strategic front of FI26 was not just a year of financial recovery. 3:16 3 minutes, 16 seconds It was a year of material portfolio expansion and ecosystem building. We launch five high potential products. 3:26 3 minutes, 26 seconds Latigo bottle toxin from Korea which is a US FDA product. Cipher new cipher which is now a USF approved fillers. 3:38 3 minutes, 38 seconds uh VM Corpor Corporation Italy a very high potential exosome uh portfolio and 3:46 3 minutes, 46 seconds Zonas uh again exosome portfolio from Korea and also a very unique uh device called 3:54 3 minutes, 54 seconds D light which is from USA each representing a deliberate step into 4:01 4 minutes, 1 second higher margin clinically differentiated territory. We expanded our customer base to over 6,300 4:09 4 minutes, 9 seconds doctors practitioners, extended our port uh footprint into tire two and tire three cities and launched 4:17 4 minutes, 17 seconds the Jelix partner clinic platform, our most ambitious ecosystem initiative to the date. 4:25 4 minutes, 25 seconds We are now a company with 10 consecutive years of uh bad positive performance, a growing onbrand portfolio at 37% 4:34 4 minutes, 34 seconds revenues and a product architecture that is increasingly differentiated and reconsible. 4:42 4 minutes, 42 seconds As we enter FI27, our priorities are clear. 4:47 4 minutes, 47 seconds discipline growth, margin expansion, improved operating leverage and sustained value creation for all stakeholders. 4:56 4 minutes, 56 seconds I now hand over to Dr. Rahul Savakande our CEO who will take you through the operational and business performance in detail. Thank you. 5:05 5 minutes, 5 seconds Uh thank you Dip sir. Uh I welcome you all. Dr. Rahul uh CEO at Akar Medical 5:12 5 minutes, 12 seconds Technologies Private Limited. I I'm happy to tell you that I completed 10 years this financial year and uh it has 5:20 5 minutes, 20 seconds been a great journey for me, great learning journey and a great uh uh highly work uh driven and hardworking uh 5:29 5 minutes, 29 seconds journey for me. Last 10 years we have been through lot of lots of ups and downs demonetization covid the last year 5:37 5 minutes, 37 seconds Ukraine warme funding winter today today what is happening at hornus uh and we have seen 5:44 5 minutes, 44 seconds it all uh the price is going up and down so it has been really a exciting and a journey that has kept me on tours uh 5:53 5 minutes, 53 seconds last year we got listed on 27th of June uh it was a very exciting moment in anybody's life so so was in my life 6:00 6 minutes also. Uh things did not turn out exactly how we planned this year. Uh however, we have kept our momentum of having pad 6:09 6 minutes, 9 seconds positive for last 10 years. Uh which gives some respect to us and our second half typically has been in line with 6:18 6 minutes, 18 seconds what our second half is and uh we have been able to close the year slightly better than last year though not to our 6:26 6 minutes, 26 seconds lacking. uh and I still maintain uh going forward uh uh when we uh when we 6:33 6 minutes, 33 seconds had our IPO uh launch uh that we need to maintain uh CAGR of uh 30% and above to 6:41 6 minutes, 41 seconds grow well and our eyes are set on getting listed on the main board. So we are working towards that. uh when we got 6:49 6 minutes, 49 seconds listed last year, our uh data days were around 209 and I think we got we we received a lot of feedback uh regarding 6:58 6 minutes, 58 seconds cash flow and data days from our investors and we tried to tighten our screws around our business though the 7:05 7 minutes, 5 seconds normal nature of our business which is B2B through doctors has been uh involving high threads and we started 7:12 7 minutes, 12 seconds tightening uh uh our business and uh that did see slight slight downturn in terms of 7:21 7 minutes, 21 seconds business while our uh collection started improving at one point our uh it has been historically that our collections 7:29 7 minutes, 29 seconds were always 80% of our gross sales uh I think we at certain point were crossing 110% of our gross sales but the top line 7:38 7 minutes, 38 seconds was still not improving as much so uh but we still kept the demand going trainings ongoing in the first half of 7:46 7 minutes, 46 seconds last Here uh we kept conducting uh CMEs workshops and uh if you see our H1 was 7:54 7 minutes, 54 seconds slightly negative uh uh at 78 lakhs negative uh which which typically uh 8:01 8 minutes, 1 second tells that our first half is loaded with lot of investments on conferences, workshops, our internal cycle meetings 8:09 8 minutes, 9 seconds and the second half typically is slightly expense light and our operational efficiency kicks in and our profitability 50 always in the second 8:17 8 minutes, 17 seconds half is better. Even for the current financial year, our ratio of H1 to H2 is 38 to 62% which is again in line with 8:26 8 minutes, 26 seconds our business model. Uh however, we are trying very hard that we we change this to an equitable distribution across all 8:35 8 minutes, 35 seconds quarters and we have maybe a 50/50 kind of business where we are trying to work on our home care portfolio which has a 8:43 8 minutes, 43 seconds demand through the year. uh but still our business majorly is from doctors also this year saw that uh we tried in 8:51 8 minutes, 51 seconds spite of all the odds we tried to improve our operational efficiency where Akar brands have slightly increased in terms of revenue contribution to top 9:00 9 minutes rank to 37% which helped us in slightly bettering our gross margins from 54 to 59% 9:08 9 minutes, 8 seconds and uh we we are still trying to better this gross margin so that should be uh helping us in future for our business. 9:16 9 minutes, 16 seconds Uh uh the key highlights other than these were that uh our business even in device segment uh has seen a slight 9:24 9 minutes, 24 seconds degrowth but uh our recurring revenue in device segment is also improved. So today we stand that out of our 100% 9:31 9 minutes, 31 seconds business around 93% of business is based on recurring revenue. So that gives us a strong signal that the annuity of our 9:38 9 minutes, 38 seconds business stays strong for future and we are on a strong footing. our uh consumer uh doctor consumer user base from 5,200 9:47 9 minutes, 47 seconds has grown to 6,300 plus doctors. That again is telling us that we are doing the right thing. We are growing the 9:54 9 minutes, 54 seconds market and we're growing our reach. We started covering slightly interiors of India like cities like Ranchi, Agna, 10:03 10 minutes, 3 seconds Vnasi has started showing growth. We have a headquarter in Dharadun and we're trying to cover those markets. So obviously the aesthetic market is now 10:11 10 minutes, 11 seconds slightly penetrating uh these market pockets which are not as saturated and that would drive our growth in future. 10:19 10 minutes, 19 seconds Uh also an important thing that happened uh over last year we have taken a decision uh our typical business model 10:27 10 minutes, 27 seconds is B2B CSA model where we do business through uh our consign agent PSPL and 10:34 10 minutes, 34 seconds then we build doctors. Last year our 65% business happened through that model and 35% of our business happened through uh 10:42 10 minutes, 42 seconds the stockish model where we build stockish and stockish based doctor. Uh going forward we have seen that the industry is slightly moving towards 10:49 10 minutes, 49 seconds distributordriven business where the distributors the company builds the distributors and the distributors forward to the doctors. uh and uh people 10:58 10 minutes, 58 seconds are seeing better efficiency in terms of cash realization where the distributor sells to the doctor and he keeps control 11:05 11 minutes, 5 seconds on the collections at local level. Also, it gives us operational efficiency in terms of less than 24 hours delivery of 11:13 11 minutes, 13 seconds goods to the doctor. So that is where we are currently working on aggressively. 11:19 11 minutes, 19 seconds Uh last year also saw us uh launching few new products. The first in case is the brand called Lettibo which is USFD 11:27 11 minutes, 27 seconds approved. And the first month uh uh first month of this year this financial year we got the stocks and we launched 11:35 11 minutes, 35 seconds the brand and uh we are getting uh super exciting signals and I think we will be so this replaces our brand CX in the 11:43 11 minutes, 43 seconds market. Last year our injectoral portfolio in which Cox and SAFA are the major contributors was almost flattish 11:51 11 minutes, 51 seconds and uh Cox actually has the deal growth of around 100 1.5 crores plus because 11:58 11 minutes, 58 seconds the licenses for Latimo the new brand was supposed to be in place by November but there was certain interior uh 12:05 12 minutes, 5 seconds internal delay at the DCJI level and the licenses came late and we had 3 months of no product bonum toxin in the market which was launched in April this year. 12:16 12 minutes, 16 seconds So that that sale part will again recover and rather it is now showing uh more better growth than the existing CX 12:25 12 minutes, 25 seconds business. We also launched a portfolio of uh synthetic exosomes from a company called VM Corporation in Italy. Uh it 12:34 12 minutes, 34 seconds was launched in month of December. It's a highprofile high premium product for select customers which are market which 12:42 12 minutes, 42 seconds are Instagram and social media savvy and it's a highly marketable product and we are seeing good offshoots now customers 12:50 12 minutes, 50 seconds getting converted for these highric products and we see that the first half will surely a positive uptrend from this brand and they will contribute to our 12:58 12 minutes, 58 seconds top line significantly. Uh we also are seeing uh the new launch of another exoome in one in another of division of 13:07 13 minutes, 7 seconds ours uh which is uh the injectable business division uh where this brand again is uh showing good uh acceptance 13:15 13 minutes, 15 seconds from doctors is just 10 days of launch and uh we are getting good reviews from customers about the brand. So that again 13:23 13 minutes, 23 seconds will help us uh improve our top line this year. uh our internal brands like DRS1512 the hair care category overall 13:32 13 minutes, 32 seconds our hairare category is having a CAR of 122%. The skin care and so home care for skin and hair is growing at around 30%. 13:41 13 minutes, 41 seconds CAGR the hairare category is in line with the overall market hairare category which is growing phenomenally well and 13:47 13 minutes, 47 seconds our internal uh brand DRS512 and uh to be at GFC both brands are growing fairly 13:54 13 minutes, 54 seconds well and we are getting a good market share and we expect these brands to do well. DRS512 forward going we have already conducted 14:02 14 minutes, 2 seconds a clinical study uh at a doctor in Delhi and Mumbai and we are trying to now clinically show that these products have 14:11 14 minutes, 11 seconds uh visible results. So this this kind of study is now giving a strong signal that uh it's currently a cosmetic licensed product. We are working towards a 14:19 14 minutes, 19 seconds medical device licensed product for this kind of product and that gives us more strength to launch it globally. uh the clinical study is just getting completed 14:27 14 minutes, 27 seconds and uh once the data is collected we will publish the clinical data and that that will again further help us uh 14:34 14 minutes, 34 seconds penetrate the healthcare market and uh it has a very good gross margin around 80% plus. So that helps us uh uh improve 14:43 14 minutes, 43 seconds our profitability in coming times. uh in terms of team size, our team size remain constant uh and at 100 uh head in terms 14:52 14 minutes, 52 seconds of the field executives. Uh we are not looking at any major expansion this year. Uh so uh I think from operational 15:01 15 minutes, 1 second point of view uh our our expenses on selling cost at salary level would remain more or less uh flattish and we 15:10 15 minutes, 10 seconds expect that operational leverage to kick in our profitability at the end of the year. 15:22 15 minutes, 22 seconds Uh with that uh I would like to uh hand over the uh the call to Rakkesh. 15:30 15 minutes, 30 seconds Yeah, thank you. Thank you everybody. Uh good evening to everybody. Uh this is Rakkesh Parik CF Medical Technologies 15:38 15 minutes, 38 seconds Limited. Uh as far as the financials are concerned, our second half reflects a 15:44 15 minutes, 44 seconds strong recovery business momentum along with the significant improvement in the operational efficiency. Revenue from second half stood at 42 crores uh 15:53 15 minutes, 53 seconds registering growth of 60.4% on half year to on half yearly basis and 23.1% on year-to-year basis. Operating 16:03 16 minutes, 3 seconds AITA increased safely to 11 crores compared to 2 lakh rupees or 0.02 02 crores in first half that is 2 lakh 16:12 16 minutes, 12 seconds rupees in first half and the second half it is 11 crores and 8 crores it was in 16:18 16 minutes, 18 seconds second half of 25 translating AITA margin of 263% expansion of 2625 bps and 16:27 16 minutes, 27 seconds sequentially 168 bps year company has also reported a strong turnaround at the profitability level 16:34 16 minutes, 34 seconds with pet rising to 7 crores in second half as against a loss in first half that is 2526 and 6 crores in second half 16:44 16 minutes, 44 seconds of 25 margin improved to 17.77% reflecting announced operating leverage better project execution and discipline 16:52 16 minutes, 52 seconds cost management on a fullear basis company delivered steady growth across key financial parameters revenue 16:59 16 minutes, 59 seconds increased from 61.6 6 crores in financial year 20 to 20 425 to 66.9 17:07 17 minutes, 7 seconds crores in 2526 while AITA improved from 9.81 crores to 10.97 crores 17:14 17 minutes, 14 seconds grew from 6 crores in financial year 2425 to 6.6 6 crores in financial year 2526 reflecting continued focus on 17:22 17 minutes, 22 seconds profitability growth and operational efficiency margin improved from 15.94 crores in financial year 2425 to 16.39 crores in 17:31 17 minutes, 31 seconds finance in 2526 margin expanded from 9.7 to 9.9 crores 17:39 17 minutes, 39 seconds balance sheet continues to remain healthy supported by strong internal acrals and product financial management cash and cash equivalent are comfortable 17:47 17 minutes, 47 seconds at grows providing adequate liquidity to support future growth opportunities and operational requirement. IPO proceeds 17:54 17 minutes, 54 seconds have been purposely deployed and we continue to work towards strategic growth initiatives, operation strengthening and long-term value creation. 18:02 18 minutes, 2 seconds Weby ask for any questions. 18:08 18 minutes, 8 seconds Thank you sir. Um I request the participants to please raise their hand for Q&A round. 18:19 18 minutes, 19 seconds Okay. So uh first question we have from Natasha Singh. Please go ahead. 18:25 18 minutes, 25 seconds Uh thank you so much for giving the opportunity. So my question is uh can the company sustain 26% better margin uh 18:32 18 minutes, 32 seconds seen in H2 or was the part of the expansion due to one offs such as the 18:39 18 minutes, 39 seconds lower conference cost uh second half typically has lesser expenses so that's the reason so it is 18:46 18 minutes, 46 seconds acured over the year so our AITAS have been strong and it will grow from here 18:53 18 minutes, 53 seconds but the H2 AITA typically uh is built in with lesser expenses of conferences and other budgets. 19:02 19 minutes, 2 seconds Okay. So, basically it will continue with the growth, right? 19:06 19 minutes, 6 seconds Yeah. Yeah. Actually, we are we have just started and the business uh only grows from here. Uh every uh every month there are new clinics ongoing and 19:14 19 minutes, 14 seconds opening and we have a great portfolio in place. So, I think it should help us grow from here. 19:21 19 minutes, 21 seconds Okay. So my second question is how much of FY26 growth crane came from the price 19:28 19 minutes, 28 seconds increase versus genuine volume expansion and customer additions. 19:33 19 minutes, 33 seconds Uh price increases we have just taken now for the new stock that will be coming in. So there was no pricing which build in this growth. Uh it was rather 19:41 19 minutes, 41 seconds the portfolio uh portfolio sales that we did which has better gross margins. So like the hair care portfolio of DRS or 19:49 19 minutes, 49 seconds we have certain products where the margins are better. So that's where the growth better margins came in. 19:58 19 minutes, 58 seconds Okay sir. Got it. Thank you so much for taking the question. I wish you all the best. 20:04 20 minutes, 4 seconds Thank you. Uh next question is from Vidant Sha. Please go ahead. 20:10 20 minutes, 10 seconds Hi congrats on the good numbers. Ajit I have one question. Uh with a push towards stock distribution with a 90% 20:18 20 minutes, 18 seconds plus target, will gross margins dilute in exchange for lower working capital intensity. 20:49 20 minutes, 49 seconds Hello. Am I audible? 20:55 20 minutes, 55 seconds Yeah. Please, please repeat your question. 20:58 20 minutes, 58 seconds Yeah. Uh I just had a question. Uh with a push towards stock distribution, will gross margins value it in exchange for lower working capital intensity? 21:08 21 minutes, 8 seconds Uh uh actually uh what we have done is uh our always front load uh front load discounts were given to doctors on 21:16 21 minutes, 16 seconds slightly higher end because they were keeping the stocks and the payment and everything was done by the doctors directly. So uh appointing a 21:25 21 minutes, 25 seconds distribution channel in between helps us build doctors at a slightly lower quantity uh and thereby the margins our 21:32 21 minutes, 32 seconds gross margins we have kept tight at 60% post realization from distributor. So we are not diluting our margins we are reducing the discounts at doctor level. 21:44 21 minutes, 44 seconds Okay thank you. 21:50 21 minutes, 50 seconds Thank you. Uh our next question is from Majid Ahmed. Please go ahead sir. 21:59 21 minutes, 59 seconds Yeah. 22:00 22 minutes Yes sir. Thank you sir for the opportunity. Good set of numbers. Uh so majorly like as you're getting into Klein and others so what's the 22:08 22 minutes, 8 seconds contribution as of FI25 and FI26 and how much are you expecting for next year from what sir? 22:16 22 minutes, 16 seconds From the clinic segment like 50 clinics you have opened right as of now. Uh see the Zellex Clinic platform is has a very 22:23 22 minutes, 23 seconds unique positioning. Uh Zelix Clinic uh is is a is a tool where we are utilizing 22:30 22 minutes, 30 seconds our platform for marketing and getting customers to doctors. So it's kind of an integrated model. uh the direct revenue 22:39 22 minutes, 39 seconds from these customers is already there or it might it might slightly increase the actual numbers from these clinics will 22:46 22 minutes, 46 seconds kick in from this year because it's just appointment of these doctors. The initial ground work is just started. Uh the 16 clinics are already on board and 22:55 22 minutes, 55 seconds we are looking to have at least 50 clinics by the end of the year and we have internal criteria of some minimum business around 3 to four lakh rupees 23:04 23 minutes, 4 seconds per month. So obviously that would kick in as a so we would for the next financial year reporting maybe H1 or H2 23:12 23 minutes, 12 seconds we might have more clear data of Zelix separately presented to you what these doctors are contributing to the top line at present already these customers are 23:20 23 minutes, 20 seconds our uh one of the top users of our products and their average business is around 1 to two lakhs per month uh which 23:28 23 minutes, 28 seconds will increase to three lakhs from this this year start you're saying uh 3 to four lakh per month per clinic right at least. 23:37 23 minutes, 37 seconds Yeah, these clinics that's the that's that's where we want these clinics to be because we are investing in marketing these clinics and the entire platform 23:45 23 minutes, 45 seconds and we expect the clinic revenues to increase uh through our effort and their effort together. Also uh this gives us a 23:52 23 minutes, 52 seconds unique marketing leverage and the doctors uh who are uh the consumers who are seeing these advertisements will 24:00 24 minutes also see our brand advertisements through this channel also. So this channel becomes a direct channel for certain exclusive products to be launched. So that's that's the vision. 24:12 24 minutes, 12 seconds So what is the capex for per clinic as of now? 24:16 24 minutes, 16 seconds So uh our this business model is doctor own doctor operated. There is no del capex. We don't own the clinic. We are 24:24 24 minutes, 24 seconds tying up all the clinics in a single chain. uh uh the brand name is Delix as a platform and the doctor doesn't 24:32 24 minutes, 32 seconds currently pay anything. Uh in future we might take a franchise fee for new doctors but currently nothing of that 24:39 24 minutes, 39 seconds sort is there. So it's a it's a scalable platform layer where it's it's more of a cross-ell engine where there is 24:47 24 minutes, 47 seconds recurring consumption ecosystem that would be put in place so that these doctors consume our product and also the consumers became more aware about our brands marketing through this channel. 25:00 25 minutes Okay. Tax is more of a marketing channel than the separate as a business model. 25:04 25 minutes, 4 seconds We generate revenue through clinics. So that's not this the business revenue will increase for Akar directly also because these 25:12 25 minutes, 12 seconds clinics would then give more more dedicated support. I'll give an example. 25:16 25 minutes, 16 seconds If a clinic has a monthly purchase of say 15 lakh rupees and if currently they give us 15,000 or one lakh or two lakh 25:24 25 minutes, 24 seconds they would have to increase their clinic support to us and if I am sending patients for specific indications. 25:31 25 minutes, 31 seconds Hello. Yes. Audible service. 25:34 25 minutes, 34 seconds Yeah. And if we if I'm supporting them with this marketing activity, our doctor per clinic usage will go up for sure. 25:42 25 minutes, 42 seconds Second is for every service of a service service which is not using our product like a hair transplant and if I send a patient I would be also charging 25:50 25 minutes, 50 seconds commission on the service. So that would add to our revenue in coming years. Got it. 25:57 25 minutes, 57 seconds uh sir because if you you also getting to hair transplant I think that's a huge market like how are you trying to get products into that and uh scaling that 26:07 26 minutes, 7 seconds segment so hair how much does that contribute as of now hair transplant segment uh currently we don't have anything in hair transplant as such we have a device 26:16 26 minutes, 16 seconds which we are uh I mean I think it is too early but we have started working on uh manufacturing license and test license 26:23 26 minutes, 23 seconds level and the application so we are doing our own working on our own uh exclusive device and we are getting into 26:32 26 minutes, 32 seconds manufacturing kind of setup for this device which we would want to patent if we get uh exclusivity and new technology 26:40 26 minutes, 40 seconds uh which would improve the hair transplant success rate uh by 1995%. 26:46 26 minutes, 46 seconds Uh so we are getting into that obviously Zelix was the brand of the hair transplant device from which this clinic model started the idea of the entire clinic model germinated. 26:56 26 minutes, 56 seconds We would we would we are getting into Zelix hair transplant devices for now the Zelix clinic we will refer we will refer the patients of hair transplant to 27:05 27 minutes, 5 seconds these clinics and we would charge certain commission which is agreed with okay sir got it 27:13 27 minutes, 13 seconds uh sir finally just wanted to know you are you saying about a particular product where the gross margins are north of 80%. So what type of revenue 27:21 27 minutes, 21 seconds potential are you looking in that segment? uh see uh in India androgenic alopeesia is a very rampant thing and more and more people are realizing it. 27:31 27 minutes, 31 seconds I'll just give an parallel that a clinic a brand like try has crossed 300 plus crores and brand like mentop is around 27:39 27 minutes, 39 seconds 300 crores plus. So healthcare is a big segment and it's growing very fast and people are realizing this and so DRS512 27:47 27 minutes, 47 seconds has a strong potential not just in India but abroad and it's our own proprietary formulation uh uh and uh with with the 27:56 27 minutes, 56 seconds results that it is showing in terms of clinical efficacy and dermatologist doing tricoscopic assoc analysis and 28:04 28 minutes, 4 seconds showing results I it well for us it could be a brand in reckoning in times to So 28:12 28 minutes, 12 seconds what type of revenue potential are we looking that way in the coming years if you can get some ballpark? 28:17 28 minutes, 17 seconds It's a big market. It it could be in few hundred crores also in coming times. You don't know I at this point uh direct B2B 28:25 28 minutes, 25 seconds market cannot judge the market size because the data is not available. The numbers that I told you about Rya and 28:32 28 minutes, 32 seconds Mentop are published datas. So uh it could be it could it could be major part of our business in coming times especially in the healthare category. 28:43 28 minutes, 43 seconds Got it. Got it. So just finally like uh like I'm unable to see your uh audited statement audited natural statement in the exchange filings. 28:54 28 minutes, 54 seconds So if you need to send it's just getting 29:03 29 minutes, 3 seconds looks maybe it must be server issue or something. 29:06 29 minutes, 6 seconds Okay sir. Okay sir as per the board meeting post the board meeting it was uploaded immediately. 29:14 29 minutes, 14 seconds Okay sir. Okay. You can write your uh CS. 29:21 29 minutes, 21 seconds Okay. So that's all for me sir. Thank you sir. Thank you. Thank you. 29:25 29 minutes, 25 seconds Thank you. Uh next we have MKkesh Panjani. Please go ahead. Sir, good evening. 29:33 29 minutes, 33 seconds Good evening. 29:34 29 minutes, 34 seconds Uh sir, in your uh presentation you have mentioned that uh uh you have network of around 6,300 dmats. 29:43 29 minutes, 43 seconds So uh can you give me the uh uh total nationwide number how many dermatologists we have in India? In 29:52 29 minutes, 52 seconds India we uh we we in total have 17,600 registered with IDVL. Non-registered would be around 2,000 2,000. So total 30:01 30 minutes, 1 second 20,000 plus dermatologists those practicing aesthetic around 8 to 9,000 today. And our coverage is around uh 30:10 30 minutes, 10 seconds overall 12,000 because we have launched a solis product. So 12,000 is coverage. 30:15 30 minutes, 15 seconds Our physical coverage at any point is around uh 4 to 6,000. uh rest we are in 30:23 30 minutes, 23 seconds touch with WhatsApp and email marketing and other other sources. Okay. Okay. Got it. 30:30 30 minutes, 30 seconds So this 6,300 is not our chain or our uh this this is build customers. We have built these customers. Got it. Got it. 30:38 30 minutes, 38 seconds And sir, is there any seasonality in our business like H2 is better than H1? Like right now we saw that H2 is far better than H1. 30:49 30 minutes, 49 seconds Uh H Over the years our ratio has been 40 40 60 H1 to H2 and this year also it's more or 30:58 30 minutes, 58 seconds less same and that's what I said in my uh remarks that we are trying to see we can equate it across all the quarters. 31:08 31 minutes, 8 seconds Okay. Okay. But now like in April 27 we can expect that our H1 would be better. 31:15 31 minutes, 15 seconds Hello. Yeah. Can you hear me? Yeah. 31:19 31 minutes, 19 seconds Yeah. I'm asking like in this year our H1 was uh not good. So in a coming year 31:26 31 minutes, 26 seconds like in FI27 u uh can we expect normal U H1 in the terms of profitability and revenues both? 31:36 31 minutes, 36 seconds It will be better than last year. 31:38 31 minutes, 38 seconds Okay. Okay. Okay. And so what we are doing on working capital side to make uh our um operating cash flow positive and 31:48 31 minutes, 48 seconds uh to reduce the Saturday inventory days I'll answer these two questions separately in two separate parts. 31:56 31 minutes, 56 seconds Inventory is a separate question because there are certain regulatory related things. So the inventory is on slightly 32:02 32 minutes, 2 seconds higher side. uh regarding our database uh and our overdue collections now with a change of business model from 1st of 32:10 32 minutes, 10 seconds April uh and we are putting in tight controls to the distributors so that uh uh they pay us within 40 to 45 days of 32:19 32 minutes, 19 seconds billing and forward they will also control the billing to doctors and second is our billing to doctors individual doctors would be on a 32:27 32 minutes, 27 seconds slightly lower quantity and that's why we are billing more number of customers than focusing on small number of doctors. So uh I think we are very 32:37 32 minutes, 37 seconds positive that we want to get this down to 110. I think I have said in my previous call also getting down further would be slightly difficult especially 32:45 32 minutes, 45 seconds the kind of business we are in. Uh if you move towards more of home care business I think it might go down also but our is more ours is more 32:54 32 minutes, 54 seconds professional care product used by doctors in clinic. uh so it's around 110 to 100 uh in the coming times and if it 33:02 33 minutes, 2 seconds happens I think it would be cash flow positive end of the year. 33:07 33 minutes, 7 seconds Okay. Okay. Okay. And and sir where do you see Akar in next 3 to four years. 33:13 33 minutes, 13 seconds Uh I want to be myself on the main board at least in next 3 years. Uh that's the 33:18 33 minutes, 18 seconds dream and uh if our Zelix platform does well uh we would be very much there. Uh 33:26 33 minutes, 26 seconds other than that also Zelix or no Zelix we are still on the course and we are very positive that uh we should get on the uh a growth trajectory once again. 33:38 33 minutes, 38 seconds Uh I think last year we listened to too many people's I think I think this year we know that we will continue our regular business model and we'll try to 33:47 33 minutes, 47 seconds keep the controls tight but we will focus on topline. I think the numbers would happen. 33:54 33 minutes, 54 seconds Okay. Okay. and and sir we have seen very good improvement in aida margins. 33:59 33 minutes, 59 seconds So do you think that these margins are sustainable going ahead? 34:03 34 minutes, 3 seconds Uh it is 100% sustainable. Uh our ours is more of an operational efficiency that would kick in I think in the coming 34:11 34 minutes, 11 seconds years because we have invested up front in the field force uh deployment and we have multiple divisions. So we have five 34:19 34 minutes, 19 seconds divisions operating at this point. one for devices, four for consumable products and each division uh we have a 34:26 34 minutes, 26 seconds headcount. So a headcount that is dedicated which was invested as a investment to market those products. So 34:33 34 minutes, 33 seconds obviously the turnover increases at 30 and if the salaries increase at 10 to 12% or 14% maybe in future op obviously 34:41 34 minutes, 41 seconds the operational efficiency will kick in and the abitas will improve. 34:45 34 minutes, 45 seconds Okay sir. Okay. Thank you so much sir and all the best. 34:52 34 minutes, 52 seconds Uh, next we have Chajit Malu. Please go ahead. 35:07 35 minutes, 7 seconds Um, you're not audible. 35:14 35 minutes, 14 seconds Okay, I'll take next one for now. Uh, we have Arpit Rajan. Please go ahead. 35:26 35 minutes, 26 seconds So am I audible? Yeah. 35:30 35 minutes, 30 seconds Okay. First of all, congratulations on your numbers. Uh what I wanted to ask was so half half two revenue growth you 35:38 35 minutes, 38 seconds know appears extremely strong at 64% half purely and half purely. How much was this simply deferred demand from 35:45 35 minutes, 45 seconds half one due to higher credit policies and should investors expect the normalization in FY27 growth rates? 35:54 35 minutes, 54 seconds uh our growth rates I think would be better than last year overall. Uh because as I said our majority of the 36:02 36 minutes, 2 seconds portfolio is getting stabilized a new toxin we have launched which is a big market of 200 crores at least at doctor 36:09 36 minutes, 9 seconds level uh of the data that we know and we are operating currently at around 3 and a half crores only and the top number brand is around uh uh 100 plus crores. 36:20 36 minutes, 20 seconds So if we take market share it would itself give us a good growth this year. 36:25 36 minutes, 25 seconds Uh our filler filler is got a USFD approval. So that again is kicking in well. Uh our DRS510 and the 2ite brand 36:35 36 minutes, 35 seconds is growing well and it gives us good gross margins. Uh and uh I think our number one brand the yellow peel emo 36:43 36 minutes, 43 seconds lightning cream is around 13 crores and we are looking to make it around 20 plus crores. uh so it should drive our growth 36:51 36 minutes, 51 seconds positively. Our top 10 brands currently contribute around uh 65 67% of our so our focus this year is to grow our top 37:00 37 minutes contributing brands and the new brands will contribute and add to the top line. 37:05 37 minutes, 5 seconds So I think we are very much focused on growing the numbers. Uh as I have always said I want to keep our CAG at 30% going forward. So I think we are on track. 37:17 37 minutes, 17 seconds Okay. Also I wanted to ask that you had mentioned that halfon weakness was deliberate. If that's the case then why 37:26 37 minutes, 26 seconds was the business model earlier dependent on such extended credit cycles in the first place? 37:33 37 minutes, 33 seconds Uh basically uh the entire industry of aesthetic is on the same business model because it's a new market we are creating. The doctor doesn't have a 37:41 37 minutes, 41 seconds patient immediately. the patients are have to be converted and plus these are high price point high ticket uh 37:50 37 minutes, 50 seconds and to the doctors. Uh as we grew over last 10 years we have started expanding our reach so that the per doctor billing 37:58 37 minutes, 58 seconds goes down and then eventually the per doctor billing goes up where uh they use multiple brands at a lower price so the 38:06 38 minutes, 6 seconds consumption happens faster. So the whole idea is to increase consumption at doctor level by billing them multiple products but at lower quantity so that 38:14 38 minutes, 14 seconds they have good scope of consumption. So I think it should improve in the coming times but the distributor model uh is uh 38:22 38 minutes, 22 seconds looking to be better as proven by even the other counterparts like and grandma got into the same model. So uh we are 38:30 38 minutes, 30 seconds working on a proven model now. So hopefully that would uh bring us better margins and a better credit control. 38:39 38 minutes, 39 seconds Okay, understood. Uh that's it from my side. 38:46 38 minutes, 46 seconds Next we have Charit Malu. Please go ahead. Hi audible. Yes. 38:52 38 minutes, 52 seconds Uh thanks a lot for the possibility. I'm quite new to the company. So like I have one question regarding our own brand. So I guess you earlier you mentioned like 39:01 39 minutes, 1 second we are contributing 40% of revenues to our own brands. So going forward what's our target from this like are we still 39:09 39 minutes, 9 seconds maintaining 40% or going to increase that like what's the trajectory? 39:14 39 minutes, 14 seconds Uh our focus is to improve topline and uh there are a lot of new technologies that come from outside India and those 39:23 39 minutes, 23 seconds brands come at a premium. So when we try to increase our top line the the new brands that we have launched recently 39:30 39 minutes, 30 seconds like Lativo, Zumage or VM portfolio if their benefit kicks in they will suddenly increase the top line more than 39:38 39 minutes, 38 seconds what we are expecting at this point in time. So our focus is to increase our portfolio overall in terms of value like 39:45 39 minutes, 45 seconds suppose this year uh we have done say 25 crores I would increase it to 50. So the profitability will automatically improve. the ratio is slightly beyond my 39:54 39 minutes, 54 seconds control because uh India still is not developing those technologies. So that's why like when I'm saying that we're 40:01 40 minutes, 1 second working on our own hair transplant device or our own uh misotherapy product like DRS512 the whole idea is that maybe 40:09 40 minutes, 9 seconds we can market this in other markets outside India in future and our top lines would be much better with our own portfolio but for now we cannot directly 40:18 40 minutes, 18 seconds control uh because the technology in India is not still at par with what it is developed outside especially Korea or European markets. 40:29 40 minutes, 29 seconds And like what kind of margins do we have from this? Again, we have kept our gross margin targets at 60 uh 60%. So we try to keep it at that. 40:43 40 minutes, 43 seconds Understood. That's it from Thank you. 40:52 40 minutes, 52 seconds Uh thank you. Uh next we have Kushbu Singana. Please go ahead. 40:58 40 minutes, 58 seconds Hello. Uh my first question is that cash and cash equivalents stand at 16 crores. 41:04 41 minutes, 4 seconds But how much of this is truly free cash versus IPO proceeds yet to be utilized? 41:11 41 minutes, 11 seconds The IPO proceeds yet to be utilized is around about 11 14 crores plus the interest from the FD it has been kept is 41:19 41 minutes, 19 seconds as an FD. So totaling to 15.3 crores. So that is the the amount that is in FDA that is to be utilized as far as the IPO 41:27 41 minutes, 27 seconds is concerned and that is included in the 16.3 crores of the cash and cash. 41:32 41 minutes, 32 seconds Okay, understood. My second question is that you deploy 20 cr of IPO capital into working capital rationalization. 41:39 41 minutes, 39 seconds Should investors interpret this as a business structurally requiring requiring high working capital support? 41:46 41 minutes, 46 seconds No. No actually it is not 20 crores. 41:49 41 minutes, 49 seconds This is round about the the 20 27 crores has has been the is the proceeds out of which 3 crores 3.3 crores have been 41:58 41 minutes, 58 seconds utilized as a share issue expenses balance is 23 crores wherein the 9 crores has to be utilized in 2526 42:07 42 minutes, 7 seconds so 9.35 crores is as per the DRHP which is to be utilized in 2526 and balance 14 42:14 42 minutes, 14 seconds crores has to be utilized in 2627 so 20 crores have not as of utilize 31st March 26th we have utilized only 39.35 42:23 42 minutes, 23 seconds not 20 crores uh okay but 20 crores is to be utilized for working capital rationalizations yes yes 42:32 42 minutes, 32 seconds yeah so that's my question should investors interpret this as a business structurally requiring high working capital support 42:39 42 minutes, 39 seconds uh it typically requires because we are Hello. 42:50 42 minutes, 50 seconds Hello. Yes. Am I audible? Yeah. Yeah. Yeah. 42:57 42 minutes, 57 seconds So, uh we we we have invested a lot of money in the theme and expansion and 43:05 43 minutes, 5 seconds launching lot of new products. At this point, Akar is I think one of the first few which has the broadest consumable 43:13 43 minutes, 13 seconds portfolio in terms of categories. So if I want to put it in good parlance, Akar 43:19 43 minutes, 19 seconds is Amazon of aesthetics uh in India. So is that so also our limited to private 43:27 43 minutes, 27 seconds sorry private limited to limited conversion has its own challenges of conversion of licenses from private limited to limited. Then we have certain 43:36 43 minutes, 36 seconds minimum order quantities for each product. So while this conversion is happening, we need to maintain inventory. So that's why the working 43:43 43 minutes, 43 seconds capital is strongly uh required to maintain this uh inventory at one point and second also we have invested up 43:51 43 minutes, 51 seconds front in the team. So we have to maintain the team till the operation leverage kicks in. 43:57 43 minutes, 57 seconds Okay. Thank you. 44:15 44 minutes, 15 seconds We'll wait for a minute. 44:24 44 minutes, 24 seconds Request the participants to please mute yourself. 44:31 44 minutes, 31 seconds Okay sir. Um thank you Dup Rahul sir Rakkesh sir and Anup sir. Um I think we are good to conclude the call. Thank you for your time. Thanks everyone. 44:42 44 minutes, 42 seconds Thank you. Thank you. Thank you sir. 45:08 45 minutes, 8 seconds The recording has stopped.