Alkem Laboratories Limited — Q4 FY26

Alkem Laboratories Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=7ij2iP2g72E Published: 2 weeks ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Alchem Laboratories Limited Q4 FY26 earnings conference call 0:08 8 seconds hosted by Motila Los Financial Services Limited. As a reminder, all participant lines will be in the listenon mode and 0:16 16 seconds there will be an opportunity for you to ask questions after the presentation concludes. 0:22 22 seconds Should you need assistance during this conference, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. 0:32 32 seconds I now hand the conference over to Mr. 0:34 34 seconds Tushar Manane from Motila Los Financial Services. Thank you and over to you sir. 0:40 40 seconds Thanks Tom. Uh good evening and a warm welcome for fourth quarter FI26 earnings call of Alcen Laboratories. From the 0:48 48 seconds management side we have Mr. Sepit Singh managing director, Dr. Vikas Gupta, CEO, Mr. Nitini Agarwal, CFO and Miss Puri 0:57 57 seconds Sha, head of investor relations. Over to you, Puri. Thank you, Tasha. Good evening everyone. 1:05 1 minute, 5 seconds On behalf of Alcen Laboratories, I welcome you all to our Q4 and FI26 earnings conference call. Uh we are happy to have our managing director Mr. 1:15 1 minute, 15 seconds Sanit Singh on the call today to engage directly with all of you and he'll address any queries related to the future strategy leadership transition 1:24 1 minute, 24 seconds and future outlook. Earlier today we announced our financial results along with the press release and investors 1:31 1 minute, 31 seconds presentation all of which are available on our website and also have been filed with the stock exchanges. We hope you have had an opportunity to review them. 1:42 1 minute, 42 seconds Before we begin, I'd like to remind everyone that this call is being recorded and the audio recording and transcripts will be made available on the stock exchanges and our website 1:51 1 minute, 51 seconds shortly after the conclusion of the call. Please note that today's discussion may include certain forward-looking statements and this 1:58 1 minute, 58 seconds statements should be viewed in conjunction with the risks and uncertainties associated with our business and the environment in which we 2:06 2 minutes, 6 seconds operate. With that, I would now like to hand over the call to our MP Mr. Sandep Singh for his insights. Over to you sir. 2:13 2 minutes, 13 seconds Thank you Purvi. 2:15 2 minutes, 15 seconds So good evening everyone. FYI26 has been a landmark year. We crossed 3,000 KITA. 2:21 2 minutes, 21 seconds So it's been a fantastic year and I will let Vikas fill in more details. But I would just like to say we're even 2:28 2 minutes, 28 seconds excited for the future and it has been a great year. We launched ZLP1 where we are doing extremely well and both met 2:36 2 minutes, 36 seconds and and bio bio similar biocMOS continue to be our growth areas. With this I think it's Vicas you please take over. 2:43 2 minutes, 43 seconds Thank you doctor and I would like to place on record that Dr. Vicas is going to now kind of proceed from Alim and 2:53 2 minutes, 53 seconds he's done a fantastic job and he will be missed and I'm sure that you all will join me to wish him all the best for his 3:00 3 minutes career. Thank you. Yeah, thank you so much uh Mr. Sep Singh and thank you everyone for being on the 3:07 3 minutes, 7 seconds call. Uh and I must at the beginning thank you all for all the patience and 3:14 3 minutes, 14 seconds support and guidance that you have been you know during my tenure at Alchem and I really value and cherish uh you know 3:21 3 minutes, 21 seconds my journey over here. uh as I speak uh about the Q4 and the annual results for uh for uh for the financial year FI26. 3:34 3 minutes, 34 seconds It has been a landmark year for Alchem and it has been marked by a very strong broad-based growth. Uh we have had a record profitability. We have continued 3:43 3 minutes, 43 seconds our progress across our strategic priorities. So I'm happy to share that we delivered our highest ever during the 3:49 3 minutes, 49 seconds year with surpassing 3,000 crores you know on an analyzed basis reflecting the strength of our business growth strategy 3:57 3 minutes, 57 seconds disciplined execution and operational excellence. Our performance was supported by a very healthy momentum across both the India branded generic 4:05 4 minutes, 5 seconds market as well as the international businesses in India. We continue to outperform the market across several key therapies with strong traction in 4:14 4 minutes, 14 seconds chronic segments and sustained brand performance. Uh I'm particularly pleased with our new products performance and the launches you know that we have done. 4:22 4 minutes, 22 seconds Uh it has been outstanding during the year and a key highlight has been the successful day one launch of semaglutide in the month of March 2026. 4:31 4 minutes, 31 seconds While the um you know these are very early trends but I'm happy to share that in the most recent IQVIR report you know 4:38 4 minutes, 38 seconds we could garner a market unit market share of around 11%. And uh and we expect it to go uh it to go up you know 4:46 4 minutes, 46 seconds even further in the coming months. So it has been a strong launch uh that that we have done internationally both the US as well as non- US businesses delivered 4:55 4 minutes, 55 seconds very strong growth supported by the new launches market expansion and steady execution. Importantly, the year also reflected the benefits of an improving 5:04 5 minutes, 4 seconds business mix. Uh we got operating leverage and continued our cost discipline which contributed to a meaningful margin expansion. 5:12 5 minutes, 12 seconds I will now present the key financial highlights of Q4 and FI26. In Q4, our total revenue from operations was 36, uh 33 million with a Y growth of 14.6%. 5:26 5 minutes, 26 seconds India sales were 23,245 million with a YI growth of 8.8%. 5:33 5 minutes, 33 seconds But if you look at our branded generic business growth, you know, that has been close to 10%, you know, and and uh 5:41 5 minutes, 41 seconds international sales were 12,223 million with a Y growth of 25.4%. 5:47 5 minutes, 47 seconds ITA was rupees 5174 million resulting in an IITA margin of 14.4% 4% for the for 5:55 5 minutes, 55 seconds the Q4 FI25 versus a 12.4% uh versus a 12.4% for Q4 2025 uh in 6:04 6 minutes, 4 seconds sorry uh it is it is F 5174 for FI26 Q4 6:10 6 minutes, 10 seconds uh IITA grew by 32.2% YI R&D expenses for Q4 FI26 were 293 million uh which is 6:18 6 minutes, 18 seconds 6.4% 4% of our total revenue from operations but on an annualized basis it is pretty much uh as as per our guidance 6:26 6 minutes, 26 seconds profit before tax was rupees 5578 million with a yi growth of 40.7%. 6:32 6 minutes, 32 seconds Exceptional items for the quarter included rupees 602.7 million incremental liability towards graduity and leaving catchment for the past 6:40 6 minutes, 40 seconds service cost following finalization of central loans under the labor codes and rupees 747 million impairment of real 6:47 6 minutes, 47 seconds estate investments. Net profit was 2365 uh rupees 2365 million. 6:55 6 minutes, 55 seconds According to IQVR data for Q4 FI26, the company registered a growth of 11.1% YI 7:02 7 minutes, 2 seconds versus the IPM which grew at close to 10%. Acute segment reported a growth of 10% versus IPM which grew by 7.7% and 7:12 7 minutes, 12 seconds chronic segment reported 16.1% versus the IPM growth of 13.6%. Which is almost a 250 basis point outperformance. we 7:21 7 minutes, 21 seconds have outperformed in six key focused therapies you know which have which are meaningful for us in terms of uh you 7:29 7 minutes, 29 seconds know the internal uh value which is GI therapy we uh vitamins and minerals pain anti-diabetic respiratory and 7:37 7 minutes, 37 seconds dermatology for FI26 the key financial highlights the total revenue from operations stands at rupees 14147123 million with a y growth of 13.5%. 7:49 7 minutes, 49 seconds Uh, India sales were rupee 98514 million with a yi growth of 9.7%. International sales were 46810 million with a yi growth of 22.5%. 8:00 8 minutes IITA was rupee 3052 million resulting in an IITA margin of 20.4% 8:08 8 minutes, 8 seconds versus a 19.4% in FI25 and ITA overall grew by 19.6% 6% YI R&D expenses for the 8:16 8 minutes, 16 seconds whole year were rupees 6173 million which is 4.2% of the total revenue from operations versus rupees 5620 million in 8:25 8 minutes, 25 seconds FI25 which was 4.3% of the total revenue in that year profit before tax after exceptional item was rupees 28709 million which is a Y growth of 13.6%. 8:38 8 minutes, 38 seconds There were exceptional items for the year and I think subsequent details you know can be given by uh the finance team 8:46 8 minutes, 46 seconds you know by nippin in the later call. Uh the outlook as we enter FI27 we strive to drive the growth and profitability 8:54 8 minutes, 54 seconds with continued focus on strengthening execution improving the overall portfolio mix and expanding our differentiated pipeline thereby creating 9:02 9 minutes, 2 seconds long-term value through discipline investments and operational excellence. 9:05 9 minutes, 5 seconds While we remain optimistic on sustaining our momentum in FI27, the current geopolitical environment and evolving the global supply chain dynamics have 9:14 9 minutes, 14 seconds resulted in increased logistics costs along with some pressure on APIs and the packaging materials. Uh we are 9:22 9 minutes, 22 seconds continuously watching these changing trends. These external factors may lead to some near-term headwinds. However, we 9:29 9 minutes, 29 seconds are closely monitoring the situation and trying to proactively manage our supply chain. We are confident that with our 9:35 9 minutes, 35 seconds strong capabilities and adequate uh inventory built up, we are well positioned to mitigate potential disruptions and ensure continuity of operations. 9:46 9 minutes, 46 seconds For FI26, our tax rate has gone up and we can have the subsequent details uh you know on the reasons for the same you 9:54 9 minutes, 54 seconds know later during the call. With this I will open the floor for Q&As. 10:02 10 minutes, 2 seconds 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 touchstone 10:11 10 minutes, 11 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. 10:17 10 minutes, 17 seconds Participants are requested to please use handsets while asking a question. Ladies and gentlemen, we will now wait for a moment while the question Q assembles. 10:27 10 minutes, 27 seconds Our first question comes from the line of Sukrit Dartil with Eyesight Ventrade Private Limited. Please go ahead. Good 10:36 10 minutes, 36 seconds evening to the team. Uh I have two questions. My first question to Mr. SEP is uh what type of strategic levers are 10:43 10 minutes, 43 seconds you prioritizing in FYI 2627 to expand Alam's uh domestic uh formulation 10:50 10 minutes, 50 seconds leadership uh and accelerate growth in uh chronic and manage risk from regulatory pricing 10:58 10 minutes, 58 seconds pressures and global competition. That's my first question. I'll ask my second question after this. Thank you. 11:03 11 minutes, 3 seconds Yeah. So I think there is no strategic liver for 26 27. Every year we don't have a strategic liver. We are continuing on whatever strategy we had 11:12 11 minutes, 12 seconds decided last few years and that's paying good yield. I think Vikas can go into depths but for example GLP1 we're doing 11:19 11 minutes, 19 seconds extremely well in simaglutide. So things are working. What pricing risk we have we do to mitigate I think nobody in the 11:26 11 minutes, 26 seconds world can do that because the pricing is governed by regulations which we have to follow. Vicas over to you. 11:32 11 minutes, 32 seconds Yeah sure thanks. So Sukrit I think I've always maintained that domestic is one of our you know topmost priorities. So 11:40 11 minutes, 40 seconds one we have strengthened our new launches you know uh a lot in our in our domestic business. Uh we have I I spoke 11:49 11 minutes, 49 seconds about few years ago we had restructured the businesses and and that's paying very good uh dividend in terms of the overall growth that we are seeing across 11:57 11 minutes, 57 seconds therapies. you know as far as domestic business is concerned we recently launched semaglutide and I think that will be one of the biggest priorities 12:05 12 minutes, 5 seconds for us you know in the coming year we are seeing very good trends you know as far as uh and and that will propel our 12:11 12 minutes, 11 seconds overall chronic growth uh you know in addition to and and that will contribute to even even the India growth overall uh 12:20 12 minutes, 20 seconds we have also looked at strategic expansion of manpower as far as you know India business is concerned domestic business is concerned so we have we have 12:28 12 minutes, 28 seconds added people wherever you know we are very bullish about growth and largely on the on the chronic side you know because 12:34 12 minutes, 34 seconds uh that is where uh you know our entire focus has been and I was just looking at the trends if you look at the definition 12:42 12 minutes, 42 seconds of acute and chronic then today our chronic business as far as branded genetic business is concerned you know we are close to 22% of our our business 12:50 12 minutes, 50 seconds is is from chronic and which is if if you see our last three or four years trend every year we are improving it uh 12:57 12 minutes, 57 seconds internally by at least a percent. And we see uh with now uh newer and newer products coming in over a period of time 13:04 13 minutes, 4 seconds on chronic we we expect it to get strengthened you know even further. So I think it's a journey and uh you know we 13:12 13 minutes, 12 seconds are very consistent uh as Mrs. Sundep Singh just mentioned. So uh this this is 13:19 13 minutes, 19 seconds we are just playing uh on on the whole I we'll focus on execution of whatever strategy you know we have planned out 13:26 13 minutes, 26 seconds for uh domestic business. My second question to Mr. Agarwal is uh again a forward-looking one. What type of 13:33 13 minutes, 33 seconds capital allocation and risk management frameworks have been applied in 2627 to balance dividend payouts with funding 13:40 13 minutes, 40 seconds for R&D in biosimilars and specialty drugs. any hedge against forex uh sorry any hedge against uh forex and raw 13:48 13 minutes, 48 seconds material volatility and uh any liquidity buffers put into place to s to sustain 13:54 13 minutes, 54 seconds the profits and uh go for the last last case expansion projects. Thank you. 14:00 14 minutes Okay. Uh let me first uh take the forex part. So we have a forex policy and we generally cover 80% or we hedge 80% of 14:09 14 minutes, 9 seconds our forex exposure in terms of raw material prices. 14:14 14 minutes, 14 seconds See due to uh war going on we we can see the raw material prices are increasing the packing material prices are 14:22 14 minutes, 22 seconds increasing and we have been cautiously watching the prices and we have been taking calls on weekly basis whether to 14:29 14 minutes, 29 seconds cover and how much to cover. Uh definitely there's the impact on first quarter there will will be impact going forward also if the situation don't 14:38 14 minutes, 38 seconds improve from here. uh I I have not shared any number in this call regarding how much will be the impact but we are 14:45 14 minutes, 45 seconds continuously monitoring our inventory levels and whenever there is a dip in price we also book uh in for API and for 14:53 14 minutes, 53 seconds packing material also we we build our inventory uh but you're right that there will be some impact on account of the 15:01 15 minutes, 1 second API prices and packing material going going uh forward in this year uh on capital allocation we said during our 15:09 15 minutes, 9 seconds last call also that Ocul is one of our biggest investment in last 10 years and we don't foresee any further investment 15:17 15 minutes, 17 seconds into acquisitions uh at least for say next 12 months. We want to first uh 15:24 15 minutes, 24 seconds actually integate okute into our alchemmetic business and that itself will take say another 12 months to do 15:31 15 minutes, 31 seconds it. In terms of dividend policy, currently I think we actually uh declare 15:37 15 minutes, 37 seconds 25 to 30% uh of our PAT as dividend. Uh in next year since we'll be coming out 15:45 15 minutes, 45 seconds of MAT definitely the PAT you will see that and we have actually discussed this in few of our previous calls also that 15:53 15 minutes, 53 seconds our tax rate will significantly go up from FI27. 15:57 15 minutes, 57 seconds Uh so definitely there will if we maintain the same dividend which you have declared in last few years if it 16:05 16 minutes, 5 seconds maintain the same uh absolute value then definitely the payout percentage will go up but we don't foresee any major reduction in absolute value of dividend. 16:16 16 minutes, 16 seconds The second good thing is that we'll be we have decided to move to the new tax reason uh from April 26 onwards. So the 16:26 16 minutes, 26 seconds past declaration uh uh sorry the past numbers which I have shared that our tax rate will be around 35 to 38% going 16:34 16 minutes, 34 seconds forward. So we want to revise our guidance on tax rate the number will be around 27 to 29% going forward. Uh so 16:43 16 minutes, 43 seconds which will increase our cash accumulation also over years. I hope I have answered all the question or is there any other 16:51 16 minutes, 51 seconds thank you and best thank you. Thank you. 16:56 16 minutes, 56 seconds Thank you ladies and gentlemen to ask a question you may please press star and one. 17:02 17 minutes, 2 seconds Our next question is from the line of Nha Manpurya with Bank of America. Please go ahead. 17:08 17 minutes, 8 seconds Yeah, thanks for taking my question. Uh my first question is on the India business growth. Uh uh Nikasa you mentioned that u you know the 17:16 17 minutes, 16 seconds semaglutide launch in India priority which should add to growth. uh given that we have grown this year at close to about 10%. Uh how should we think about 17:24 17 minutes, 24 seconds growth going forward? Should we assume that growth improves further? Um and if you could also give us some color into how the trade generic business grow in FI26 versus debranded. 17:37 17 minutes, 37 seconds So uh hi NA thanks for your question. I have always maintained that we will grow 100 to 150 basis points higher than the 17:46 17 minutes, 46 seconds market. Now uh what has happened is GLP has added to overall market's growth as well. So if the market growth you know 17:55 17 minutes, 55 seconds improves uh we will continue our growth trajectory 100 to 150 basis point higher than the market which is what we have 18:02 18 minutes, 2 seconds achieved even in the uh current year and and we expect that to you know happen in the in the coming year you know as well 18:11 18 minutes, 11 seconds and definitely semutide will add you know will will play a role in for us to ensure uh you know that kind of growth. 18:19 18 minutes, 19 seconds Uh what was your second part of your question? Sorry, come again. 18:23 18 minutes, 23 seconds On the trade generic. Yeah. So trade generic, you know, this year we had carved out a a a separate entity and uh 18:30 18 minutes, 30 seconds during that transition uh you know we have had uh certain challenges. So this year the growth has been lesser you know as far as trade generic is concerned 18:39 18 minutes, 39 seconds it's close to around uh you know 4 4.3% you know on an on an annualized basis. 18:47 18 minutes, 47 seconds uh but our focus on in the in the trade generic business has largely been on the 18:54 18 minutes, 54 seconds uh on the profitability you know I have said it earlier also you know we have focused on a margin improvement as far as trade 19:02 19 minutes, 2 seconds generic business is concerned so we have not chased you know just topline there are challenges in that business in terms 19:09 19 minutes, 9 seconds of the overall uh you know receivables that that uh you know can happen so we we want to focus on margin improvement 19:16 19 minutes, 16 seconds as far as you know trade generic business is concerned and and our key growth driver you know branded generic business where you know we want to uh be 19:26 19 minutes, 26 seconds you know very fast as compared to market I think that is what it continues on trade generic business also we are pretty hopeful that the coming year you 19:34 19 minutes, 34 seconds know our growths will be much better than this year just to add because of the sales cut off issues we could not deliver so uh the reported growth is on 19:43 19 minutes, 43 seconds the lower side on the trade generic on trade genes here. 19:48 19 minutes, 48 seconds Understood. That's helpful. Uh my second question is on the uh you know cost thresholds that you mentioned. Uh given that we don't know when when the 19:56 19 minutes, 56 seconds situation is going to improve and the cost thresholds that you've talked about. Um how should we think about the margin improvement guidance that we 20:04 20 minutes, 4 seconds mentioned in the past that you know we should see you know 100 basis points margin improvement every year. uh would it be possible for us to deliver on that 20:12 20 minutes, 12 seconds uh you know or do you think the best case at the moment would be for us to be able to maintain the FI26 margins? So na 20:20 20 minutes, 20 seconds this is you know uh you know that geopolitical environment you know is very unstable right and uh when we had 20:28 20 minutes, 28 seconds given the guidance of 100 basis points improvement maybe every year that is more on a more stable and a like to like 20:37 20 minutes, 37 seconds uh you know period and and we still believe that operationally you know if everything remains the same you know we would do that uh in the current scenario 20:45 20 minutes, 45 seconds you know it's it's a moving goalpost you know we don't know uh how much time how much price variability, how inflation will play out. But I think we will we 20:55 20 minutes, 55 seconds will continue to do things that are there in our control. We are taking various measures, you know, whatever we can to to mitigate or minimize, you 21:03 21 minutes, 3 seconds know, the risk. But yes, it I think in in the current scenario, it looks like whatever, you know, we have achieved in 21:10 21 minutes, 10 seconds the current year, we should be, you know, pretty much in line with at least, you know, that. But of course you know as the quarters would progress we will 21:18 21 minutes, 18 seconds have more clarity on what kind of headwinds you know would play out and uh you know I think in the by by H2 or Q3 21:27 21 minutes, 27 seconds of this year we will be more clear as to how the environment is prevailing because anything that we predict at this 21:35 21 minutes, 35 seconds stage you know may or may not uh turn out to be true you know because this is something beyond anybody and and I'm 21:41 21 minutes, 41 seconds sure every business is is uh having a similar trend. And every business is having a similar sentiment. 21:47 21 minutes, 47 seconds [clears throat] 21:48 21 minutes, 48 seconds Sure, understood, sir. Uh but based on Okay, no worries. Uh my second sorry, one last question if I may. Um on the 21:55 21 minutes, 55 seconds operating cost in the quarter, um you know, I see that R&D is increased materially. We've also seen an increase 22:01 22 minutes, 1 second in other expenses. So uh any color on you know is this a sustainable base of cost that we should assume? So I mean R&D what should be the range as well as the other expenses? 22:12 22 minutes, 12 seconds So in terms of R&D spent you know I've always maintained our our filing cycle is such that Q4 you know we file maximum 22:20 22 minutes, 20 seconds number of products. So so in Q4 even last year we had 5% of our revenue as a R&D spend and this year you know it has 22:29 22 minutes, 29 seconds been around six 6 and a half% but if you look at the annual uh spend you know for uh it'll be within the range of 4 to 5% 22:36 22 minutes, 36 seconds only even this year we have been at 4.2% 2%. Last year we were at 4.3%. So it has been pretty similar you know in terms of 22:44 22 minutes, 44 seconds our overall uh you know percentage and and and we we expect it to be a similar between four to 5% even in the coming 22:51 22 minutes, 51 seconds year and other expenses. 22:58 22 minutes, 58 seconds uh in terms of other expenses uh definitely there will be some inflationary pressures and uh not only 23:05 23 minutes, 5 seconds on the API prices but on other cost also but we don't uh expect it to increase there will be increase of I'm talking uh 23:15 23 minutes, 15 seconds increase without say optic acquisition which will happen in say one or two months uh the sale transfers will happen other than that then the other expenses 23:24 23 minutes, 24 seconds can increase by 7 to 8% not beyond See and if your question is only on if your question is only on the Q4 you know 23:32 23 minutes, 32 seconds why we have a say a 200 cr type increase from Q3 to Q4 on our on our other expenses then you know there are there 23:41 23 minutes, 41 seconds are various uh heads and various reasons to it one you know we carried out uh some due diligences because we were 23:48 23 minutes, 48 seconds acquiring uh you know certain companies so that has that has added to that's a one-time you know cost which is 23:56 23 minutes, 56 seconds featuring in this quarter We had you know foreign currency impact because even the foreign subsidiaries expenses you know as the rupee would uh 24:05 24 minutes, 5 seconds you know depreciate uh that adds on to the to the cost. So so that's that's one impact. uh then there is uh you know 24:13 24 minutes, 13 seconds some u internal renovation costs etc which were more one-time you know which is which is also featured uh in as part 24:20 24 minutes, 20 seconds of other expenses but as as Nathan has guided I think from a broad r outlook range you know you can you can consider 24:27 24 minutes, 27 seconds it more than that understood thank you so much thank you our next question comes from 24:36 24 minutes, 36 seconds the line of sepumar with Clintis research solutions please go ahead Thank you for taking the question. 24:46 24 minutes, 46 seconds So I can update on the Sorry to interrupt Sep, but your line is not very clear. Am I audible enough now? 24:55 24 minutes, 55 seconds This is a little better. Please go ahead. 24:57 24 minutes, 57 seconds Thank you. First of all, thank you for taking my question. Um, could management provide an regulatory launch timeline for the Dennis portfolio? Currently, I 25:06 25 minutes, 6 seconds know we are in the FDN activity. So how should we think about the approval and launch timeline for prolifers in the US? 25:15 25 minutes, 15 seconds Yeah. Hi. So so yes we are under approval. I think with this I think if we are good maybe by next 25:25 25 minutes, 25 seconds quarter I mean next next year's first quarter. So there's still some time. And second thing keep in mind that we don't have a basket yet. So we have to figure 25:34 25 minutes, 34 seconds that out as well. So there could be an option where we'll out license it to someone also. Yeah. But will launch it this year. 25:44 25 minutes, 44 seconds Yeah. 25:44 25 minutes, 44 seconds Okay. So my second question is on the European market. I know we had got approval for a Prolia binder. So how we 25:51 25 minutes, 51 seconds are going to tackle the pricing pressure in the Europe and when you are expecting the submission of extra binder in the European market. 25:59 25 minutes, 59 seconds So what sorry what bio similar last one probably bio similar. No, that okay that you askedimab is the same thing. Okay. 26:07 26 minutes, 7 seconds So we have I think that we have European partners for that. In has European partners. Yeah. So the pricing pressure is for everyone. 26:14 26 minutes, 14 seconds We'll figure it out how it settles. But uh yeah. 26:20 26 minutes, 20 seconds So when are we expecting the submission for buy somewhere in the European market? 26:27 26 minutes, 27 seconds I think uh one second. 26:36 26 minutes, 36 seconds I so I think we got approval for both. 26:38 26 minutes, 38 seconds So but right now we have partner only for one. So we are not uh going to uh launch it anytime soon. 26:47 26 minutes, 47 seconds Okay. So my last question is on promises of evity biosimler. So we are so which which maps? Excuse me. Which map? 26:57 26 minutes, 57 seconds Romas map. 26:58 26 minutes, 58 seconds Yeah. What about it? So could you please provide any um insights that when we are going to start the I don't think so we have that product in a pipeline. 27:07 27 minutes, 7 seconds Okay. Yeah. Yeah. 27:11 27 minutes, 11 seconds See right now we do not have that product in our pipeline. I think at an appropriate time we can talk about that particular product but uh you know 27:19 27 minutes, 19 seconds please uh that I mean be more specific that will be my request if there is any question. Okay. Thank you. Thank you. Thank you J. 27:28 27 minutes, 28 seconds Thank you so much. 27:30 27 minutes, 30 seconds Thank you. Our next question is from the line of Kunal Damesha with McQuary. Please go ahead. 27:37 27 minutes, 37 seconds Hi. Uh thank you for taking my question. 27:39 27 minutes, 39 seconds Uh so the first one on the uh uh you know what are your estimates or internal budget uh for growth uh in our various 27:48 27 minutes, 48 seconds uh line of businesses uh for FI27 and uh on margin uh I think there are a lot of 27:55 27 minutes, 55 seconds pulls and push uh you know uh but let's say if we kind of combine all that you know there's a positive impact of 28:02 28 minutes, 2 seconds currency depreciation as well uh where do you see the FI27 margin range to That's the first question. 28:11 28 minutes, 11 seconds Yeah. Hi. Hi Kunal. Thanks for your question. See in terms of our you know estimates if you ask me u you know 28:20 28 minutes, 20 seconds domestic I have already called out that you know we should be uh 100 250 basis points higher than the market which 28:28 28 minutes, 28 seconds means that u maybe a double digit uh you know kind of uh growth is is is what we are looking forward to. If you look at 28:37 28 minutes, 37 seconds from from US market, US market, you know, from a uh currency to currency uh you know basis of dollar to dollar, we 28:45 28 minutes, 45 seconds are looking at a high singledigit margin and and you know the currency gain would would add up to that and then uh if we have some new launches you know that'll 28:53 28 minutes, 53 seconds come in the H2 they will also contribute to some extent you know on our overall US growth. uh from the RO markets you 29:01 29 minutes, 1 second know we have we've looked at a higher teams kind of market uh you know growth and and we assume that that is going to 29:08 29 minutes, 8 seconds be the trend even in the coming year. So I think this is the broad uh outlook on the growth you know that we are 29:16 29 minutes, 16 seconds anticipating for FI27. I think I've already answered the question on the overall margins you know when Niha was 29:22 29 minutes, 22 seconds asking u in the current uh scenario you know we have touched a 20.4% 4% uh uh kind of growth like to like you know we 29:31 29 minutes, 31 seconds we would we should be within the range of 20 to 21%. But of course you know there will be a better clarity uh on it 29:40 29 minutes, 40 seconds uh considering the geopolitical situation you know stabilizes and we are we have more clarity on costs as we progress uh quarter after quarter within the year. 29:51 29 minutes, 51 seconds Sure. Thank you. And uh second question is on the uh you know what is the current contribution uh from the medtech 29:58 29 minutes, 58 seconds uh and uh when would the okloc uh acquisition be concluded and then when will we start seeing those numbers in 30:06 30 minutes, 6 seconds the uh uh in alken's uh uh numbers yeah the contribution in less than a 30:13 30 minutes, 13 seconds percentage right now met is very small and then by when the deal will close maybe in like in 45 to 60 is 45 to 60 days it will get complete. 30:26 30 minutes, 26 seconds Yes, we we estimate so okay so so first quarter onwards uh like quarter two onwards you'll have full impact of occluded 30:35 30 minutes, 35 seconds yes if the deal closes yes okay perfect and and uh you know uh 30:42 30 minutes, 42 seconds lastly on uh this trade generic where Dr. Vikas highlighted that the focus has always also been on the profitability 30:51 30 minutes, 51 seconds uh just from a you know qualitative or directional uh perspective uh between uh let's say the uh the the 30:58 30 minutes, 58 seconds kind of business segments we have uh like the India branded generic US uh RO 31:05 31 minutes, 5 seconds u you know where where would the uh trade generic profitability would uh you know fit in uh from the uh uh from the 31:14 31 minutes, 14 seconds let's say the uh you chronological order perspective I think India branded would be the highest but then uh where would 31:21 31 minutes, 21 seconds trade generic fit in if not called out segment wise profitability anyways but what I can 31:28 31 minutes, 28 seconds tell you is we have improved in the last few years and now even trade generic is not very far from our corporate uh you 31:36 31 minutes, 36 seconds know margins so you know that has been our intent and that is what you know we are uh continuously focusing on so 31:43 31 minutes, 43 seconds that's the range you know that I can give Uh sure. Uh thank you and uh all the best to to the team and all the best to Dr. Vikas uh for your new journey. 31:54 31 minutes, 54 seconds Thank thank you so much Final. Yeah. Thanks for all all your support. 32:00 32 minutes Thank you participants to ask a question you may please press star and one. 32:07 32 minutes, 7 seconds Our next question comes from the line of Abdul Kadar Puranwalla with ICICI securities. Please go ahead. 32:13 32 minutes, 13 seconds Yeah. Yeah. Hi. Thank you for the opportunity. Uh so my first question is with regards to the revenue and uh the 32:21 32 minutes, 21 seconds cost of uh uh enzyme and uh you know the US biologic uh plant what you have started. So if you could highlight that 32:30 32 minutes, 30 seconds you know the cost as well as the revenue in Q4. 32:33 32 minutes, 33 seconds Yeah broadly I'll tell you then maybe Nathan can fill in he's a numbers man. 32:37 32 minutes, 37 seconds So see if you split in into two businesses that is India and US. The reason I'm saying that because in India started much earlier. Indian US just got 32:46 32 minutes, 46 seconds commissioned last year or just few months back. So India is around is in break even much more than break even. We 32:54 32 minutes, 54 seconds are in in late uh in early sing double digits you can say teens a bita US we will lose money of course because that 33:03 33 minutes, 3 seconds it takes time to ramp up. So overall yes we'll not be a bit positive. Maybe this year we'll be close to it but I think 33:10 33 minutes, 10 seconds Indian and India and Indian US we have to see separately to be fair to it. So in US will take time to kind of get a beta break even. 33:20 33 minutes, 20 seconds Um okay and uh so on previous uh uh you know expectation what we had of at least a one time asset turn at uh this 33:28 33 minutes, 28 seconds particular site. So I mean you know post uh uh uh the imposition of tariffs and more focus on insourcing. How was the 33:38 33 minutes, 38 seconds order inflow at uh the US engine uh you know manufacturing facilities? 33:44 33 minutes, 44 seconds I think early to early to say see these headlines are great everybody feels fantastic but big companies take a lot of time and don't forget big companies 33:51 33 minutes, 51 seconds are setting up their own capacity. So that that also plays out you have to keep that in mind. So I think it's early 33:58 33 minutes, 58 seconds days to declare any victory or that one time asset turnover look dramatically different. Nothing of that sort has happened yet. 34:07 34 minutes, 7 seconds Understood. And as a last one just a position for mine. So if you know going ahead in the PPT uh you know after completing the acquisition of acute tech 34:15 34 minutes, 15 seconds if you could also highlight the progress of Nzene as well as the metric business in terms of the way the assets are moving would be very helpful. Yeah, 34:23 34 minutes, 23 seconds we'll do that. Whenever there's something meaningful to report, we will we will do it, sir. Thank you. Sure, sir. Thank you. Thank you. 34:32 34 minutes, 32 seconds Thank you. 34:34 34 minutes, 34 seconds Our next question comes from the line of Tushar Man with Motila Losal Financial Services. Please go ahead. 34:41 34 minutes, 41 seconds Yeah, thanks for the opportunity sir. So firstly on like as uh Vikas sir moves on so if you could you know uh give a 34:49 34 minutes, 49 seconds clarity in terms of are we going to look for a new CEO or and then now that tech is also there where of course business 34:56 34 minutes, 56 seconds heads are correct so if you could sort of give a overall CXO level uh you know in terms of the changes that would 35:04 35 minutes, 4 seconds happen or any new person coming up if you could just share. Yes, thank you sir. I will I will. So yes, we will look 35:11 35 minutes, 11 seconds for a CEO. We have engaged with the top three global header for this and uh that would be in place. It would take few 35:18 35 minutes, 18 seconds months but business will go on because you know promoters are completely involved and and you spoke about okotech 35:25 35 minutes, 25 seconds and other businesses. Keep in mind that the the group businesses which are non-farma okotech or in they will report 35:34 35 minutes, 34 seconds to let's say other promoters or MD and and the CEO would be look at the hardcore pharma business that's the structure which we have and going forward it will remain the same. 35:46 35 minutes, 46 seconds Got it sir. Yes sir. 35:48 35 minutes, 48 seconds And uh sure got it. So secondly coming to the domestic formulation market if you could share uh the number of MRS 35:56 35 minutes, 56 seconds attrition rate and what how do you think about uh scaling the MRS in F2728 maybe? 36:03 36 minutes, 3 seconds So uh you know we have I I just mentioned we have expanded you know some 36:10 36 minutes, 10 seconds uh field force in the recent quarter and uh you know so our number of MARS at a 36:16 36 minutes, 16 seconds group level is around 14,000 you know 500 uh the other uh what was the uh the 36:24 36 minutes, 24 seconds attration was the other question right uh we are at we are at 18 to 19% kind of attrition currently and which has been a 36:33 36 minutes, 33 seconds substantial reduction from the previous years and much lower than uh than the industry average you know that that we see. So I think it's a pretty stable 36:42 36 minutes, 42 seconds field force and and now with with the added number of people and and and large part of that addition is on the chronic 36:49 36 minutes, 49 seconds side because that's where we see the the growth opportunity and which is what we are going after. 36:57 36 minutes, 57 seconds And just uh one on the semognite side while you know uh in terms of dosage wise uh we are going to be only into injectables. 37:08 37 minutes, 8 seconds Yeah. So at this stage you know we have approval from the regulator for injectables and we have entered that market. Uh our clinical trial for 37:16 37 minutes, 16 seconds tablets uh you know is on. We we will be going through the regulator you know in 37:23 37 minutes, 23 seconds a while. uh and once we get the approval you know from from uh the innovator we'll figure out a go to market strategy for tablets 37:31 37 minutes, 31 seconds and will this get extended further to ro or let's say non US markets opportunity yeah yeah yeah correct so at this stage 37:39 37 minutes, 39 seconds you know we are we are looking at like I mentioned in the earlier call as well uh India is uh you know showing a lot of 37:47 37 minutes, 47 seconds opportunity we want to be absolutely sure and be on top of our supply chain for domestic market we are also alo 37:53 37 minutes, 53 seconds working on on uh rest of the markets uh including the US but that will be you 38:01 38 minutes, 1 second know that's not immediate it will be in a while so we have we will start our filing even for the US market maybe in a 38:08 38 minutes, 8 seconds year and a half we will file for US and for RO markets you know we are uh we just uh you know figuring out I we will 38:16 38 minutes, 16 seconds be going after it but it will be say a few quarters from now Okay. And just lastly, I missed the US 38:25 38 minutes, 25 seconds growth guidance just a little bit on the US growth. Yeah, I mentioned that on a dollar to dollar basis, you know, 38:32 38 minutes, 32 seconds we will be a higher singledigit uh you know kind of growth. Uh uh there will be a forex gain you know that that might 38:40 38 minutes, 40 seconds add to that growth and and then you know there are uh new launches you know that that we are looking at. So put together I think uh that's that's the guidance that I would give on the US growth. 38:51 38 minutes, 51 seconds Thanks. Thanks for addressing my questions. Thank you. 38:55 38 minutes, 55 seconds Thank you. Ladies and gentlemen, to ask a question, please press star one. 39:02 39 minutes, 2 seconds Our next question is a followup from Niha Manpura with Bank of America. Please go ahead. 39:08 39 minutes, 8 seconds Uh yeah, on this high single digit US guidance that you've mentioned, uh does this include the CDMO business that 39:16 39 minutes, 16 seconds would also be reported under the US revenue? No, no, this this I'm talking of Pharma. 39:22 39 minutes, 22 seconds Okay. So the CDMO would be reported separately in tax that that will be a part of the but yeah you're right as a geography you know we 39:30 39 minutes, 30 seconds report that but uh this guidance is largely on the on the farmer and when should we start seeing revenue 39:39 39 minutes, 39 seconds from the CDMO business come through uh you know for uh the CDMOS already started for uh in not 39:46 39 minutes, 46 seconds from the US plant that much last year we recognized some CDMO from US that was like less than 100 CR. So it's pretty small. 39:56 39 minutes, 56 seconds It would take time for us to get like meaningfully like 200 300 codes. It will take us couple of years. 40:02 40 minutes, 2 seconds And where where would that reflect in the segmental breakup that we did? 40:08 40 minutes, 8 seconds That will come in in currently currently we don't share segment wise sales or profitability. NA 40:15 40 minutes, 15 seconds so our plan is reflection once it will become uh substantial we'll start heading not only for our 40:23 40 minutes, 23 seconds but also for not reflected in the US business which we talk about I understand that I think very 40:30 40 minutes, 30 seconds yes currently it is part of US you are right okay understood okay thank you so much thank you 40:39 40 minutes, 39 seconds to ask a question ladies and gentlemen you may press star and one our next question is from the line of Rahul Juni 40:45 40 minutes, 45 seconds with IFL Securities Limited. Please go ahead. 40:50 40 minutes, 50 seconds Yeah. Uh thanks sir for taking my question. Uh just uh on the US business we had received approval for Tolapin. So 40:59 40 minutes, 59 seconds when uh if you can talk about in terms of when could be a launch for the product and when you launch do you think the market would still be limited 41:08 41 minutes, 8 seconds competition or you would expect the market to become competitive at the time of Alchem's launch. 41:16 41 minutes, 16 seconds So u our expected launch is around September or October you know somewhere around that time and uh it's it's a 41:25 41 minutes, 25 seconds limited player launch you know it's not as crowded as some of the other uh you know markets uh other product categories 41:32 41 minutes, 32 seconds that we have seen u I think as compared to those you know it's it's a limited player uh launch 41:41 41 minutes, 41 seconds so it should not be as crowded as as some other as as normally happens in US. 41:48 41 minutes, 48 seconds Okay. So essentially we are targeting launch in September October of this year. So contribution should come in second half. Second up. 41:57 41 minutes, 57 seconds Uh sure. And with this tall webapton launch given that you are talking about let's say limited competition market uh 42:05 42 minutes, 5 seconds that would imply that the US business should grow much faster. 42:10 42 minutes, 10 seconds Sorry Rahul just to qualify at this stage you know we still have four months five months you know we don't know if other things will come down so the same 42:18 42 minutes, 18 seconds you know what happens is on the on the base business you know us as a market is a value er erosion you know that we see 42:27 42 minutes, 27 seconds over a period of time so maybe in the in the some in some products you know you see a value erosion that would happen but with on the back of some of the new 42:35 42 minutes, 35 seconds launches you know we are able to make up so I think that is So uh that's why the guidance is is on is on those lines. 42:44 42 minutes, 44 seconds Sure sir. And my second question is with respect to the India business. Uh you talked about TGX business growing let's 42:52 42 minutes, 52 seconds say four 4 and a half% in FY 26. That would essentially imply that the branded 42:59 42 minutes, 59 seconds genics business grew closer to 11% last year. Now next year. Yeah. 43:06 43 minutes, 6 seconds Go ahead. Yeah. 43:08 43 minutes, 8 seconds So, so, so, so, so what my question was obviously TGX growth last year was impacted because of the uh restructuring 43:15 43 minutes, 15 seconds which you carried out. So, let's say TGX on a stable trajectory next year and we benefiting from GLP1 or SIMA scale up in 43:23 43 minutes, 23 seconds India. Then potentially the BGX growth for FY27 could be even better than this 43:31 43 minutes, 31 seconds 150 basis point outperformance which you called out versus the IPM. 43:37 43 minutes, 37 seconds see uh if if the GLP1 you know really say adds a lot of value I'm sure the 43:44 43 minutes, 44 seconds market growth would also be you know much higher so that's why I have I have given the growth guidance relative to 43:52 43 minutes, 52 seconds the market growth you know so if if market also is bullish and the market growth from say a 9% moves to 11% then 43:59 43 minutes, 59 seconds our growth also will be much higher uh I think it's it'll be as a guidance you know I would say 150 basis points ahead 44:07 44 minutes, 7 seconds of market you know is fairly doable uh as far as that is concerned because that is just one product category you know 44:14 44 minutes, 14 seconds and our large base is is still you know acute you know so chronic is say 22 to 23% of our of our overall uh you know 44:23 44 minutes, 23 seconds base over there so sometimes that weighted average plays out but uh I think I will I will not do that 44:31 44 minutes, 31 seconds calculation I would just keep the focus clear on are be beating the market you know as far as uh you know 100 to 150 44:39 44 minutes, 39 seconds basis points is concerned and then uh yeah of course you know the growth can be bullish and in6 you see they acquired 44:48 44 minutes, 48 seconds it also so uh I there was some incremental on account of acquisition so which is already built in the base now 44:58 44 minutes, 58 seconds okay sure sir and given that you touched about on the acute business so on anti-infectives we have seen that the market continues to remain muted both 45:07 45 minutes, 7 seconds for the IPM as well as ALCAM. So any visibility in terms of when could we see some sort of a growth uh improvement in 45:16 45 minutes, 16 seconds the acute therapies in India. So yeah, see the market may have been muted but if you look at our growths you know we 45:23 45 minutes, 23 seconds have outperformed even in acute you know and in acute anti-infective is muted and that too in in anti-infectives if you 45:31 45 minutes, 31 seconds would see the struggle has been on the oral liquids as well as on the injectable side right if you see overall 45:38 45 minutes, 38 seconds you know oral solids uh there still there have been you know some growth you know it has been a shade better than uh 45:46 45 minutes, 46 seconds so I think if you look at our growth grows our growths have been say a high singledigit kind of growth even on even on even on that segment but even in 45:55 45 minutes, 55 seconds acute you know we we've say for example we've uh uh A2Z has been a a great uh story you know for us in the recent 46:03 46 minutes, 3 seconds years we are really outperforming the market we have seen very good growth coming out of that segment respiratory you know is growing pretty fast for us 46:12 46 minutes, 12 seconds so there are areas pain and analistics you know we see you know as a category we we have revived our growth. So if you 46:19 46 minutes, 19 seconds look at you know some of those segments we are getting you know good traction but of course you know when anti-infective market will come back it 46:27 46 minutes, 27 seconds is very hard for anybody to predict you know that's that's more uh you know it has yeah I mean we we would we would 46:34 46 minutes, 34 seconds rather not predict it and we would just do things that are in our control. 46:40 46 minutes, 40 seconds Uh sure Dr. Was thank you for answering the question I will join back with you. Thanks. 46:47 46 minutes, 47 seconds Thank you ladies and gentlemen. If you wish to ask questions, you may please press star and one. 47:01 47 minutes, 1 second Participants to ask a question. You may please press star and one at this time. 47:24 47 minutes, 24 seconds We have no further questions. Ladies and gentlemen, I would now like to hand the conference over to the management for closing comments. 47:31 47 minutes, 31 seconds Thank you everyone for joining today's call and for your continuous interest thoughtful questions and active participation. Should you have any 47:39 47 minutes, 39 seconds follow-up queries or uh require any further clarification, please feel free to reach out to us. Have a pleasant evening. Thank you. 47:49 47 minutes, 49 seconds Thank you. On behalf of Motila Los Financial Services, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.