Cohance Lifesciences Limited — Q1 FY26

Cohance Lifesciences Ltd Q1 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=cGoSOnLWUbU Published: 9 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to Cohen's Life Sciences Limited Q1 FY26 earnings conference call. As a 0:09 9 seconds reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance 0:18 18 seconds during the conference call, please signal an operator by pressing star then zero on a touchstone phone. Please note that this conference is being recorded. 0:26 26 seconds I now hand the conference over to Miss Cinderella Carvalo from Cohen's Life Sciences Limited. Thank you and over to you ma'am. 0:37 37 seconds Thank you Yu. Good evening everyone. 0:40 40 seconds Thank you for joining us today for a Cohance Life Sciences quarter 1 FY26 earnings call. This marks our first full 0:48 48 seconds quarter operating as a unified platform under the Kohhans identity. Following the formal integration of our acquired 0:55 55 seconds entities and rebanding earlier this year, we appreciate your continued interest and support as we begin this next chapter of growth and execution. 1:04 1 minute, 4 seconds Joining me on the call today are Mr. Vive Sharma, executive chairman, Dr. Prasad Rajuk, managing director, Mr. 1:12 1 minute, 12 seconds Himmanu Aarwat, Chief Financial Officer. 1:16 1 minute, 16 seconds Let me now invite Vive to share strategic overview for the quarter. 1:22 1 minute, 22 seconds Thank you Cinderella and good evening to all. Q1 FI26 has been an important start to the year not only from an execution 1:31 1 minute, 31 seconds standpoint but also in strengthening the foundation we have put in place over the past 12 years. This was our first full 1:39 1 minute, 39 seconds quarter as Cohen life sciences and I'm pleased to share that the transition has been on track both internally and 1:46 1 minute, 46 seconds externally with increasing alignment across teams, customers and platforms. 1:53 1 minute, 53 seconds We remain focused on our core identity as a technology-led global CDMO anchored in scientific partnership, speed and 2:02 2 minutes, 2 seconds reliability. Our three-pillar structure, Pharma CDMO, specialty chemicals, and 2:08 2 minutes, 8 seconds API plus continues to provide a resilient foundation for growth. In line with evolving global sourcing 2:16 2 minutes, 16 seconds strategies, we are seeing continued inflows of RFQ reflecting both China plus1 and EU plus1 diversification trends. 2:26 2 minutes, 26 seconds During the quarter, we responded to a healthy set of RFPs under this theme, particularly in HPA APIs, small 2:35 2 minutes, 35 seconds molecules. These requests are coming from established customers, expanding the scope of engagement further and 2:42 2 minutes, 42 seconds reinforces our positioning as a dependable CDMO partner for innovators looking to build supply security. 2:50 2 minutes, 50 seconds Among our many ongoing customer engagements, our recent visit to Japan stands out as a key highlight. We 2:58 2 minutes, 58 seconds strengthen our long-standing partnership with the leading innovator in ADC payloads with discussions progressing towards broader strategic collaboration. 3:07 3 minutes, 7 seconds We are also growing traction with other Japanese innovators across niche modalities including olonucleotides, 3:15 3 minutes, 15 seconds small molecules and our agrochemical and specialty chemical segments. 3:20 3 minutes, 20 seconds During the C quarter, we saw encouraging momentum across our CDMO business, particularly in lateral engagements and 3:28 3 minutes, 28 seconds differentiated modalities such as ADCs and olonucleotides. 3:33 3 minutes, 33 seconds Our capabilities in payload linker synthesis and bio conjugation continue to resonate strongly with global 3:41 3 minutes, 41 seconds innovators. At NJ Bio, our US-based subsidiary, we received a significant new order from an existing customer for 3:49 3 minutes, 49 seconds full ADC supply in earlyphase payload linker synthesis to bio conjugation 3:56 3 minutes, 56 seconds work. To support this and to meet future demand, we have commenced expansion of a dedicated cgmp suite in bio 4:05 4 minutes, 5 seconds conjongjugation at the Princeton facility by committing an investment of US $10 million. This will significantly 4:14 4 minutes, 14 seconds enhance our capacity enabling supply of full ADCs to clinical studies. We are pleased to share that our first adjacent payload program is under discussion. 4:26 4 minutes, 26 seconds Further strengthening our position in the ADC payload market where our two leading payload categories together 4:33 4 minutes, 33 seconds account for nearly 80% of current R&D pipeline programs. Our CGMP oliggonucleotide building block facility 4:41 4 minutes, 41 seconds at Nacharam backed by an 230 million INR investment is progressing on schedule 4:48 4 minutes, 48 seconds and is expected to be fully operation by the end of CY25. 4:53 4 minutes, 53 seconds Early stage engagements with innovator partners are advancing well with plant audits anticipated over the coming 5:00 5 minutes quarters. To summarize, excluding the temporary impact of inventory detomo segment delivered over 30% 5:09 5 minutes, 9 seconds year-over-year growth supported by robust demand across key customer programs in high value modalities. Our 5:16 5 minutes, 16 seconds niche technology revenue share has risen from the high teens in FY25 5:22 5 minutes, 22 seconds to above 20% in Q1 FY26 and is on track to approach the mid20s by the end of FI26. 5:32 5 minutes, 32 seconds This segment delivered growth well ahead of the broader pharma CDMO business excluding inventory Dtocking 5:40 5 minutes, 40 seconds underscoring our differentiated capabilities and strong execution in complex modalities. We secured another 5:49 5 minutes, 49 seconds US FDA approval from our partner program leveraging priority review and breakthrough therapy designation to fasttrack its market entry. 6:00 6 minutes Two additional products from our small molecule portfolio are expected transition to commercial stage over the next 12 to 18 months. We are also 6:09 6 minutes, 9 seconds awaiting responses from existing customers on pending lateral RFPs which could translate into additional opportunities in commercial products. 6:19 6 minutes, 19 seconds During the quarter, we secured a lifestyle management supply mandate from a lead leading global innovator for a 6:28 6 minutes, 28 seconds branded product API, underscoring our position as an integrated CDMO partner of choice. 6:36 6 minutes, 36 seconds I would like to also take a moment to reflect on the broader organizational evolution underway at Cohens. 6:43 6 minutes, 43 seconds As part of our strategic journey to build a best-in-class innovation global CDMO, we are pleased to announce the 6:50 6 minutes, 50 seconds formation of the Cohens external advisory board. 6:55 6 minutes, 55 seconds We have inducted five highly respected industry stalwarts into the external advisory board. Each bringing decades of 7:03 7 minutes, 3 seconds leadership experience across R&D, CNC, commercial, and supply chain roles at leading global innovator companies. 7:13 7 minutes, 13 seconds Their diverse perspectives and deep domain expertise will meaningfully shape our strategic direction and customer partnerships as we scale. 7:24 7 minutes, 24 seconds The external advisory board EAB as we call it will function as an independent panel of experts providing a strategic 7:32 7 minutes, 32 seconds council to cohence leadership on innovation, customer centric growth and operational excellence. 7:39 7 minutes, 39 seconds This initiative reinforces our commitment to long-term value creation and deep collaboration with global innovators aligned with our vision to 7:48 7 minutes, 48 seconds reach billion dollar USD by 2000 revenue by 2030. 7:56 7 minutes, 56 seconds Dr. Sudhir Singh who was running the CDMO business has decided to step back from active executive responsibilities 8:04 8 minutes, 4 seconds and on behalf of the board and entire Gohan's team I would like to extend our sincere appreciation to Dr. Sudir Singh 8:12 8 minutes, 12 seconds for his foundational contributions to building a CDMO platform and positioning it for sustained growth and global 8:19 8 minutes, 19 seconds relevance. We wish him continued success in his future endeavors. Sudir will closely work with this for seamless 8:26 8 minutes, 26 seconds transition with our ambition to build a global technology-led CDMO from India. 8:33 8 minutes, 33 seconds We have appointed Mr. Yan de Herb as CEO of our CDMO business. A strategic leadership move aligned with our global 8:42 8 minutes, 42 seconds growth agenda. Yan brings over three decades of experience including nearly 15 years in senior CDMO roles and has 8:52 8 minutes, 52 seconds built trusted relationships with leading innovators across US, EU and Asia. His 8:59 8 minutes, 59 seconds presence in the US together with our expanding global leadership team enhances our ability to operate as a unified platform. 9:09 9 minutes, 9 seconds In parallel, we continue to strengthen our CDMO leadership, deepen our techno commercial expertise and expand modality 9:18 9 minutes, 18 seconds specific capabilities to stay ahead of evolving customer needs while scaling with agility, quality and speed. 9:28 9 minutes, 28 seconds With that, I would now like to invite Dr. Prasada to take you through the segment performance and key operational updates. Dr. Prasada. Thank you, Vick. 9:38 9 minutes, 38 seconds Good evening to everyone. Q1 FI26 has progressed across our businesses in line with our expectations. We continue to 9:48 9 minutes, 48 seconds strengthen our key customer engagements and advance our platform readiness in high growth modalities, positioning 9:55 9 minutes, 55 seconds ourselves well for the future. Across these technology platforms, we are now working with more than 19 global 10:03 10 minutes, 3 seconds innovators including our NJ bio and Sapala customer network. 10:08 10 minutes, 8 seconds Regarding Pharma CDMO, late phase activity and differentiated programs continue to drive scaleup traction is 10:16 10 minutes, 16 seconds there. We signed several new CDS and master service agreements by adding top four large innovator customers across 10:25 10 minutes, 25 seconds the platform. Apart from a few mid and small biotech companies which indicates growing confidence from global 10:34 10 minutes, 34 seconds innovators in our integrated model, I'm happy to share with you some of the prominent wins and key developments 10:42 10 minutes, 42 seconds across the business lines. As shared by our chairman Vive, we have secured a life cycle management opportunity from a 10:49 10 minutes, 49 seconds leading innovator for a branded product API. Despite its long-term sustainable and margin accreative nature, this 10:59 10 minutes, 59 seconds collaboration has immense potential to scale up in the years to come. 11:05 11 minutes, 5 seconds We have been chosen as a high potent project which needs OEB4 infrastructure by a global innovator validating our infrastructure and regulatory maturity. 11:17 11 minutes, 17 seconds Commercial contracts for intermediates are under discussion with a large innovator customer under EU plus1 11:24 11 minutes, 24 seconds sourcing strategy. The continued ramp up of payload linker program across both in-house and partnered platforms. 11:34 11 minutes, 34 seconds Our ADC platform continues to gain momentum across both payload and bio conjugation modalities. At our Nacharam 11:42 11 minutes, 42 seconds facility, we also have finalized designs for addition of a new containment which is capable of demonstrating industry 11:51 11 minutes, 51 seconds hygiene studies up to OEB6 levels to support a customized payload program for 11:58 11 minutes, 58 seconds a large based innovator. This expands alliance with our increasing flexibility for growing demands of development 12:06 12 minutes, 6 seconds commercial supply quantities. Under this engagement, it reinforces our high potency competencies from a global regulatory approved site in India. 12:18 12 minutes, 18 seconds We are also deepening our engagements with three additional large innovator companies beyond two ongoing commercial programs reflecting a unique value 12:27 12 minutes, 27 seconds proposition sustained trust in our payload linker capabilities as an integrated global player. 12:35 12 minutes, 35 seconds PHAN's first program in the adjacent payload family is under discussion, expanding our payload portfolio and 12:43 12 minutes, 43 seconds strengthening our position across payload linker and bio conjugation workflows. In parallel, we continue to engage with both existing and new 12:52 12 minutes, 52 seconds customers seeing growing interest in RFQS received for payload linker synthesis. These partners are also 12:59 12 minutes, 59 seconds actively evaluating our Indian-based linker manufacturing capability along with our Princetonbased biojugation suit 13:08 13 minutes, 8 seconds predominantly as a part of their long-term supply chain strategy. We are expanding our offerings into next 13:16 13 minutes, 16 seconds generation modalities such as speculated antibbody conjugates, sRNA conjugates and antibbody 13:24 13 minutes, 24 seconds oligouonucleotide conjugates which are evolving space in the antibody drug conjugates. Our ongoing development of 13:33 13 minutes, 33 seconds versatile payload linker program for ADC supports these capabilities. 13:39 13 minutes, 39 seconds We continue to invest in scientific talent, compliance systems and capacities enabling us to deliver strong 13:46 13 minutes, 46 seconds repeat business and deepen strategic collaboration with leading ADC innovators. 13:54 13 minutes, 54 seconds We have announced INR 230 million for GMP oligouonucleotide block at Nacharam 14:01 14 minutes, 1 second facility. As we explained in our last con call, it is expected to be fully commercial by end of CY FI2526. 14:12 14 minutes, 12 seconds This leverages our expertise in modified nucleotides log nucleic acid to scale up these 14:20 14 minutes, 20 seconds chemistries from R&D to commercial manufacturing with up to multiple 100 kilo slots in a 14:28 14 minutes, 28 seconds fit to-purpose GMP facility. Overall project implementation is progressing as planned and the qualification is near 14:36 14 minutes, 36 seconds completion. It's important to notify the early customer interest remains robust and the platform will be a vital to our future modality mix. 14:48 14 minutes, 48 seconds Coming back to specialtity chemical segment as we have alluded during our last call, customer engagement remained 14:56 14 minutes, 56 seconds very positive. The ACUM business continues to have improving sequential recovery and the visibility is in line with our communicated expectations. 15:07 15 minutes, 7 seconds Performance chemicals shipments are expected to ramp up in the latter part of the year. Overall, we remain 15:14 15 minutes, 14 seconds confident of delivering full year growth targets. We are also now focused on adding two more customers in this 15:22 15 minutes, 22 seconds segment while we deepen our existing relationship with the large innovator company. 15:29 15 minutes, 29 seconds Regarding API plus and FDI business, it has delivered a strong performance backed up by a deeper business 15:38 15 minutes, 38 seconds fundamentals, scaling up of existing product portfolio and a healthy pipeline 15:44 15 minutes, 44 seconds that by securing orders in hand. We have validated few new products in API and 15:52 15 minutes, 52 seconds are also on track for 7 to eight new product validations and subsequent regulatory filing. commercialization efforts of formulation projects are delivering expected results. 16:03 16 minutes, 3 seconds With this, let me now hand over it to our CFO Himmanshu for the financial overview. Thank you and over to you Manu. 16:13 16 minutes, 13 seconds Thank you Dr. Prasada and good evening to all. Our quarter 1 FI26 performance is in line with our expectations and the 16:21 16 minutes, 21 seconds trajectory we had outlined earlier. As always, we encourage you to evaluate our performance on a full year basis as 16:28 16 minutes, 28 seconds quarterly trends may not fully reflect the underlying momentum of the business. 16:33 16 minutes, 33 seconds Let me walk you through our quarter 1 financial year performance. 16:38 16 minutes, 38 seconds We reported a revenue of 13% growth year on year quarter 1 FI26 led by performance and specialtity 16:46 16 minutes, 46 seconds business API excluding the inventory detomo. 16:51 16 minutes, 51 seconds The revenue growth for the quarter exceed 25%. 16:55 16 minutes, 55 seconds While revenue recognition was backended this quarter due to shipment timing and inventory restocking, operating indicators remained healthy and aligned with our expectations. 17:06 17 minutes, 6 seconds The farmer se CDMO segment posted a year-on-year 1% revenue growth in quarter 1 FI26. However, adjusting for 17:15 17 minutes, 15 seconds the inventory restocking in the commercial products which we had outlined earlier, the segment delivered ahead of a 30% plus growth driven by 17:23 17 minutes, 23 seconds robust demand across key programs and high value modalities. 17:27 17 minutes, 27 seconds We also want to highlight that our niche technology revenue share has advanced from a mid- teens revenue share in FI25 17:35 17 minutes, 35 seconds to above 20% in quarter 1 FI26 and is well on track to approach a mid20s shares by FI26. 17:46 17 minutes, 46 seconds Growth in this segment was well ahead of the pharma CDMO business reflecting scale up in ADC and olonucleotides. 17:56 17 minutes, 56 seconds We expect this segment to be a meaningful driver of our growth trajectory as the bio conjugation capacity expansion in Princeton, the 18:04 18 minutes, 4 seconds cgmp olgonucleide building block facility at Nacharan and the customized payload linker synthesis ramp up in the 18:12 18 minutes, 12 seconds US and India together in the coming fiscal years will deliver significantly higher margins. 18:20 18 minutes, 20 seconds The adjusted AIDA margins reflects ongoing investment ahead of scale and the integration of recently acquired 18:28 18 minutes, 28 seconds high-tech growth assets. During the quarter, we invested rupees 559 million 18:35 18 minutes, 35 seconds in capex primarily towards capacity expansion and angio final stage validation at Nasharangolo suites as well as debottling across core manufacturing platforms. 18:46 18 minutes, 46 seconds We also generated 2.3 billion in free cash flow. We ended the quarter with a healthy cash balance of 4.4 billion on 18:55 18 minutes, 55 seconds our books, underscoring our disciplined approach to capital allocation and operational execution. We continue to maintain a healthy balance sheet and our 19:04 19 minutes, 4 seconds capital allocation remains sharply focused on scaling differentiated platforms, enhancing modality readiness 19:13 19 minutes, 13 seconds and capturing operating leverage over the medium term. We reiterate our 526 guidance and we continue to maintain a 19:21 19 minutes, 21 seconds long-term guidance of reaching 1 billion INR85 billion in 2030. 19:28 19 minutes, 28 seconds As we scale up further, our medium-term plans to achieve mid-30s AIDA margins remain intact. In closing, quarter 1 has 19:37 19 minutes, 37 seconds indeed laid the groundwork for the rest of FI26 and beyond. We remain focused on delivery execution excellence, scaling 19:46 19 minutes, 46 seconds differentiated platforms like ADC, oligos and strengthening our position as a trusted global CDM partner. With that, 19:54 19 minutes, 54 seconds I hand it over to Sundella. Thank you Himmanu. With that growth focused mindset, we are happy to open the floor for questions. 20:04 20 minutes, 4 seconds Yes, sir. 20:04 20 minutes, 4 seconds Thank you very much. Yes, we will now begin the question and answer session. 20:09 20 minutes, 9 seconds Anyone who wishes to ask a question may press star and one on the touchstone telephone. 20:15 20 minutes, 15 seconds If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. 20:25 20 minutes, 25 seconds Ladies and gentlemen, we'll wait for a moment while the question queue assembles. 20:35 20 minutes, 35 seconds First question is from the line of Anish Burman from Vicaria. Please go ahead. 20:42 20 minutes, 42 seconds Hi. Uh good evening. Thanks for taking my question. My question is specifically on the pharma CDMO side. Um the APIs 20:49 20 minutes, 49 seconds that you would be making for uh innovator big pharma companies. uh I wanted to know whether you are exporting 20:57 20 minutes, 57 seconds these APIs um into facilities in the US or are they majorly being exported into some European countries like Ireland and 21:06 21 minutes, 6 seconds the population is happening there. So which which is the major export country for your APIs under the pharmaceut 21:23 21 minutes, 23 seconds portion of this is going to Europe. 21:27 21 minutes, 27 seconds Okay. Uh my understanding is uh this is regarding the tariff. My understanding is that APIs do not come under the 21:35 21 minutes, 35 seconds definition of pharmaceutical as defined by section 232 investigations. Uh is this understanding correct that APIs 21:43 21 minutes, 43 seconds that are being imported into the US are getting tariffed as of now? 21:51 21 minutes, 51 seconds So listen, we don't make APIs, we do intermediates and they are, you know, they they are right now not part of the 22:00 22 minutes tariffs that are being talked about. As far as we are aware, pharma is exempt and right now we are exempt from any tariff discussion. 22:09 22 minutes, 9 seconds Okay. So right now whatever intermediates you are producing, you are exempt. Uh but the exemption is are you 22:16 22 minutes, 16 seconds um exporting any of these intermediates into US or is everything going into Europe? 22:25 22 minutes, 25 seconds Predominantly Europe. 22:28 22 minutes, 28 seconds Okay. Uh just one more question. Uh this is a hypothetical one. Let's say tomorrow something comes out of the section 232 investigation and you know 22:37 22 minutes, 37 seconds there is a tariff number that is being suggested. uh is there an agreement or an understanding on how will it get 22:45 22 minutes, 45 seconds passed on in the supply chain whether your customer will bear it or whether you will have to bear a part of it is 22:51 22 minutes, 51 seconds there some color on that this is himu so most of our current 23:02 23 minutes, 2 seconds agreements with the customers are on FOB basis we do not have the 23:10 23 minutes, 10 seconds liability to pay the tariff when the goods reach the shore of US. 23:16 23 minutes, 16 seconds Uh so hopefully that addresses the query that you have on the hypothetical question if farmer were to get tariff. 23:25 23 minutes, 25 seconds It does. Thank you so much. I will get back in the queue. Thank you. 23:31 23 minutes, 31 seconds Thank you participants. If you wish to join the question queue, you may press star N1. 23:44 23 minutes, 44 seconds Ladies and gentlemen, anyone who wishes to ask a question may press star and one on the touchstone telephone. 23:52 23 minutes, 52 seconds Next question is from the line of Dal from Jeff. Please go ahead. 23:59 23 minutes, 59 seconds Hi, thank you for taking my question. Uh I wanted to know you know uh we have been investing quite uh sorry to interrupt Mr. Dal your voice 24:08 24 minutes, 8 seconds is very low. Request you to please speak a little louder. 24:12 24 minutes, 12 seconds Yeah. Hi. Uh we have been investing into building teams and building talent. So wanted to know uh what is our current uh 24:21 24 minutes, 21 seconds BD team strength especially overseas and uh where are these uh uh teams located 24:28 24 minutes, 28 seconds and uh what is the future plan? Uh do we still see lot of uh aggressive uh hiring within these teams? 24:37 24 minutes, 37 seconds That's the first question. 24:46 24 minutes, 46 seconds Uh proceeding to my uh second question. Yeah, that was Can I answer that? 24:54 24 minutes, 54 seconds Yeah, sure. Sure. Go ahead. 24:57 24 minutes, 57 seconds Yeah. So, that was Thanks for your question. So, yes, you're right. We've been investing in front-end capabilities you know in uh all three uh major 25:05 25 minutes, 5 seconds markets US, Europe and uh and Japan, Southeast Asia. So today we have uh in the North America uh we have four BTS. 25:16 25 minutes, 16 seconds These are all experienced CDMO several of them are PhDs uh that we have hired in the last nine months or so. They are based in East Coast and West Coast. We 25:25 25 minutes, 25 seconds also have added a resource a very experienced uh exfarma executive in Europe as well as one very seasoned executive uh to the uh Japanese market. 25:38 25 minutes, 38 seconds Now in addition to that uh NJ bio you know also comes with it capabilities. So we have ADC specialists and they have 25:46 25 minutes, 46 seconds two PD resources actually that are focused on ADCs. We also have uh Sapala head resources. So they have a few 25:56 25 minutes, 56 seconds resources in Japan as well as one resource base in India that travel. So combination of all of them is about 10 26:03 26 minutes, 3 seconds resources 11 resources that are really helping us build brand and then growing you know uh customer relationship and then integrating with customer. 26:15 26 minutes, 15 seconds You think uh we are uh right about one second just wanted to clarify this is just for the CDMO business right? 26:22 26 minutes, 22 seconds Yeah in addition to that API plus has its own separate the specialty cam has its own separate team 26:30 26 minutes, 30 seconds you think we have the right team sizes or you think there is some room to augment it further on the CDMO side. 26:39 26 minutes, 39 seconds Yes. to listen I mean we are also it's not about a quantity I think it's a quality of people that we focus on so and I think us um what we will you know 26:49 26 minutes, 49 seconds we are we will announce some more people I think as time progresses uh to really add to people with some unique 26:56 26 minutes, 56 seconds experiences as well as unique uh you know capabilities but I'm actually very excited about this uh customer advisory 27:04 27 minutes, 4 seconds board that we have uh really engaged with these are very experienced people so with the combination of customer 27:11 27 minutes, 11 seconds advisory board our PD team and with Yan coming in and several of us really putting a lot of time on front end I'm 27:18 27 minutes, 18 seconds very excited I think with the team that we have and you know this is a process of evolution you may add one or two resource here and there but we are not 27:26 27 minutes, 26 seconds looking for major expansion in the quantity of team you know we may add one or two people if required but there's no major expansion plans there there's a 27:34 27 minutes, 34 seconds lot to be done with the team that we have and we are excited I think with the potential CPHI is coming. We're already blocking our calendars. A lot of 27:41 27 minutes, 41 seconds meetings are lined up. Other events are coming. This comes back in US in few weeks. So the team is really excited. 27:47 27 minutes, 47 seconds There's a lot of effort going on with the existing teams. If you feel the need, we'd be happy to bring some specialist people, you know, to help us accelerate the growth. 27:57 27 minutes, 57 seconds Uh understood. Very helpful. Does that answer your question? 28:00 28 minutes Yeah. Yeah, it does. It does. It was helpful. Uh secondly uh you know uh there are many uh payloads where you 28:08 28 minutes, 8 seconds know uh our payloads are going to other global uh CDMOS. So in those cases does 28:15 28 minutes, 15 seconds the uh end innovator know where is the payload coming from or is it completely at uh uh the discretion of the global 28:24 28 minutes, 24 seconds CDMO where the payload and linker is coming or uh uh you know the innovator is just informed about it uh but uh 28:33 28 minutes, 33 seconds again the final decision is with the CDM or is it the other way where the innovator uh mandates uh the CDM or to 28:41 28 minutes, 41 seconds use uh payloads from certain you know manufacturer how does uh uh that supply chain and decision making work. 28:53 28 minutes, 53 seconds So Dal that's a very good question. Uh final decision is fully with the innovator and innovator is fully aware 29:01 29 minutes, 1 second and it's part of the decision making process on selection of uh the the products that we supply. Uh and our 29:09 29 minutes, 9 seconds product is a key part of the endtoend supply chain that is required for the end uh molecule that the customer is 29:16 29 minutes, 16 seconds presenting. um you know as recent as just few months ago I personally met the end customer the final uh you know 29:23 29 minutes, 23 seconds customer so yes they are fully aware and they're fully integrated and they're fully aware and they're fully involved with us in the decision- making process 29:31 29 minutes, 31 seconds and the future plans for that product and the other products they might want to launch that requires that material or that similar material. 29:41 29 minutes, 41 seconds Got it. Uh one last bit uh uh as a firm uh do you think uh uh map manufacturing 29:50 29 minutes, 50 seconds or antibbody manufacturing looks a area that we would like to explore if any you know inorganic uh 29:59 29 minutes, 59 seconds opportunity comes up or whatever you know even trying to build it organically or you want to focus within the you know 30:08 30 minutes, 8 seconds peptide/ small molecule space and other you know uh key chemistries which are highlighted within the PPD. 30:18 30 minutes, 18 seconds Yeah. Double I mean listen our uh we are a customer ccentric organization. Our focus is to grow with customer and invest with customers. Even the 30:26 30 minutes, 26 seconds investments we have announced are very customer focused in terms of where the customer needs it and where customer is growing. Our discussions with customers 30:34 30 minutes, 34 seconds have reflected that they want to control the mass supply. They have enough resources. they want to do it themselves. We haven't seen from our 30:42 30 minutes, 42 seconds perspective the lens that we go with we haven't seen much need and desire actually for customer to really partner with us on that space you know the 30:50 30 minutes, 50 seconds customers that we work with and in the capabilities that we have invested in you know um whether it's the uh the 30:58 30 minutes, 58 seconds small molecules GDMO whether it's oliggo or the ADC we see a lot of potential to really grow lot of pipeline discussions 31:07 31 minutes, 7 seconds a lot of early stage discussions that can move to advanced stages is so we want to remain focused in ADC in those spaces and then penetrate deep and 31:15 31 minutes, 15 seconds expand and extend our relationship with customers. Right now we're not looking any map capabilities to acquire and invest. 31:25 31 minutes, 25 seconds Okay, thank you. I have few more question. I will probably join the queue. 31:31 31 minutes, 31 seconds Thank you participants to join the question queue you may press star and one. 31:38 31 minutes, 38 seconds Next question is from the line of Harid Ahmed from Aventas Park. Please go ahead. 31:45 31 minutes, 45 seconds Uh good evening. Thanks for the opportunity. Uh my first question is on the detocking which you alluded to. Uh is this specific to a particular product 31:54 31 minutes, 54 seconds or one or two products or are you referring to a detocking uh situation uh which is more general across the portfolio? 32:09 32 minutes, 9 seconds So Har this is Himmanu. So the detocking that you referred to is specific to few products. It's actually I think we had 32:17 32 minutes, 17 seconds mentioned it earlier as well is mentioned to uh it's related to two uh large commercial molecules that uh we 32:26 32 minutes, 26 seconds are experiencing the restocking right now. 32:31 32 minutes, 31 seconds Got it. And uh the second one is on this new expansion uh that you've announced at uh Nacharam facility for oligoucleotides. 32:40 32 minutes, 40 seconds Uh so just trying to understand uh how exactly this expansion enhances or offering on the oligo side. Um you know 32:49 32 minutes, 49 seconds what exactly are we capable of supplying now versus what will be our enhanced capability going forward post the expansion. 33:04 33 minutes, 4 seconds Harit Prasad here our starting point of oligo is predominantly researchdriven and uh the 33:12 33 minutes, 12 seconds important uh requirement for us is to abilities to have cgmp capabilities that's where we have started looking at 33:20 33 minutes, 20 seconds it we also have mapped what could be the potential subsegment of these modalities where needs immediate scale up based on 33:28 33 minutes, 28 seconds the customer interest and we have figured out nucleotides is one modality subsegment they are looking for log 33:35 33 minutes, 35 seconds nucleic acid not many companies in the world can actually make it to the extent of purity what we make these are all the 33:42 33 minutes, 42 seconds few uh decision drivers which have actually triggered for creating a GMP capability and uh we are pretty sure 33:51 33 minutes, 51 seconds with the customer interest what we have received uh we should definitely be able to expand our R&D capability to a cgmp 34:01 34 minutes, 1 second level of manufacturing. After then there is also a logical extension and uh we have clearly laid down our internal thinking process as well. This is the 34:10 34 minutes, 10 seconds first step of our business progression and once we lock in some of the customers we also have a further 34:17 34 minutes, 17 seconds capacity expansion to make the final ooliggon nucleotide at scale. So this is the broad plan that we have which cannot 34:25 34 minutes, 25 seconds happen unless you have a multicolor level cgmp manufacturing capability. 34:31 34 minutes, 31 seconds Last but not least, it's also important to understand these capabilities have to exist in a regulatory approved plant. 34:39 34 minutes, 39 seconds This particular block is coming in in a US FDA approved site. So which gives the comfort for the innovative companies to 34:48 34 minutes, 48 seconds come and qualify us. I hope this answers your question. Harit. 34:53 34 minutes, 53 seconds Yes sir. Uh that's helpful. And and the last one is on the expansion at NJ bio. 34:59 34 minutes, 59 seconds Um so your release talks about uh uh you know this expansion um supplying phase 35:07 35 minutes, 7 seconds one to clinical quantities but uh when I look at our payload capabilities we already supply uh commercial at at 35:14 35 minutes, 14 seconds commercial scale. So now how should we think about our uh you know further enhancing our bio conjugation capabilities to uh you know commercial scale. 35:29 35 minutes, 29 seconds So, so Harit um you know at NJ bio uh as we move so we are adding capacity on uh 35:36 35 minutes, 36 seconds conjugation suites as part of acquisition of NJ bio. We also have uh facility available very close to 35:45 35 minutes, 45 seconds Princeton and NJ bio which can be converted at a very fast pace to build commercial capability. We have and as 35:53 35 minutes, 53 seconds customer progresses as I said we are investing behind customer as customer makes progress on the migloos that they go we can convert that facility it's 36:01 36 minutes, 1 second actually a semibuilt facility that is already ready in a pharma park with lot of basic infrastructure so the time to 36:09 36 minutes, 9 seconds make this existing site to a commercial is very fast however we are investing where the customer needed and with this customer that we are working and the 36:17 36 minutes, 17 seconds others that we are talking to as the molecule progresses from the stage that we We are working if you see the need we have plans ready that we can very 36:25 36 minutes, 25 seconds quickly expand into commercial capability and then you know work accordingly. Right now our focus is to really finish this site quickly and then 36:34 36 minutes, 34 seconds take the molecules forward and deliver on what we had and then see the readouts and then accordingly invest capital behind customer group. 36:44 36 minutes, 44 seconds Understood sir. Thanks for taking my questions. Thank you. Thank you. Thank you. 36:51 36 minutes, 51 seconds Next question is from the line of Shamsawasan from Goldman Sachs. Please go ahead. 36:56 36 minutes, 56 seconds Yeah, good evening. Uh thank you for taking my question. I'm on the road so just bear with some background noise but uh uh just one question uh was on the 1q 37:05 37 minutes, 5 seconds performance and relative to what the fiscal 26 outlook is. Uh sir margins have come in lower I know even if you 37:12 37 minutes, 12 seconds adjust for the one-off expenses 23 24% we have guided for a low 30% kind of margin. So what gives us the confidence? 37:19 37 minutes, 19 seconds You also mentioned about these u uh you know detocking I I presume it's in CDM. 37:24 37 minutes, 24 seconds Sorry I missed some of your opening comments but just want to understand how should the rest of the quarters pan out and what gives us the confidence of the guidance for fiscal 26 remains intact. 37:40 37 minutes, 40 seconds Uh so this is Himmanu. 37:43 37 minutes, 43 seconds As mentioned uh during the call we have reiterated our guidance uh both for FI26 and more importantly 37:52 37 minutes, 52 seconds for the FI30 or 20301 billion. So we remain committed to delivering the $1 38:01 38 minutes, 1 second billion or 85 billion INR in 2030. 38:07 38 minutes, 7 seconds If you uh notice we've kind of carved out the impact of the dtoing molecules 38:14 38 minutes, 14 seconds and as we know that CDMO business has these peaks and troughs and we had 38:22 38 minutes, 22 seconds called out that there are two commercial molecules where we are exper experiencing destto if you isolate that and if you peel the 38:29 38 minutes, 29 seconds onion and you realize that farmer CDMO has grown at around 30%. And all the three engines are actually firing 38:37 38 minutes, 37 seconds because you look at spec it's growing at 28%, API is growing at 90%. So while we have always maintained that this is a 38:46 38 minutes, 46 seconds business which we should not look at quarterto quarter and that's what I will stay firm with you as well. We should not interpret anything from a quarterto quarter business. 38:57 38 minutes, 57 seconds I think the most important thing that we've also called out during the quarter is the contribution coming from the 39:04 39 minutes, 4 seconds niche technologies and we have mentioned that the niche technology share of the total revenue has steadily grown from 39:13 39 minutes, 13 seconds mid teens in last year to early 20s and we're expecting it to be mid20s as we end FI26. 39:23 39 minutes, 23 seconds I think that should also give us confidence of how the niche technologies which is where we are building a 39:30 39 minutes, 30 seconds platform and we're calling that out very categorically for 2030 is growing. So I believe that we remain firm on our 2030 39:40 39 minutes, 40 seconds guidance of a billion dollar as well as mid AITA which we have called out. 39:47 39 minutes, 47 seconds Uh humano uh thank you for that but I was more looking at 26 only. So if you could just rehash and tell us what the 39:53 39 minutes, 53 seconds current year guidance only is uh uh because maybe there was some confusion on the previous call. So what are we calling for organic growth for fiscal 26 40:02 40 minutes, 2 seconds full year and what is the margin uh levels that we're expecting to full year fiscal 26. 40:09 40 minutes, 9 seconds So Sham I think uh it's important and I think thank you for this question because it helps me clarify our position very clearly. So see for us the organic 40:19 40 minutes, 19 seconds and inorganic are two sides of the same coin. Okay, it's about capital allocation and I think what we as an 40:28 40 minutes, 28 seconds organization we do believe we have created this platform in the last five five and a half years based on a mix of 40:36 40 minutes, 36 seconds organic and inorganic. So that's the way we have been and we do believe that we have the secret sauce of integrating 40:45 40 minutes, 45 seconds first finding out leveraging those assets buying them and then integrating to create a niche technology platform. 40:54 40 minutes, 54 seconds That's what we've been doing. So for us inorganic growth is a core part of our thesis and you will see that we continue 41:02 41 minutes, 2 seconds to add value accreative highquality businesses. 41:05 41 minutes, 5 seconds I think we should consider this as an appropriate use of our capital to acquire capabilities, geographical presences as well as customer versus 41:14 41 minutes, 14 seconds uh other organic model of doing capex and building the same over a longer period of time. For us, inorganic is a 41:23 41 minutes, 23 seconds way to scale up business and ultimately the investment in capex will yield the 41:30 41 minutes, 30 seconds right results for us. So I would urge you guys to kind of think about it in the way we look at and not separating it 41:38 41 minutes, 38 seconds as an organic or inorganic. It's just a capital allocation philosophy and maybe our philosophy may be slightly different in the way we run our business. 41:54 41 minutes, 54 seconds Uh thank you man. I've not got the answer but I I'll take it off now. 42:00 42 minutes Thank you. Before we move to the next question, a reminder to the participants to ask a question, you may press star 42:07 42 minutes, 7 seconds and one. Next question is from the line of Abdul Kadir Puranwala from ICI Securities. Please go ahead. 42:15 42 minutes, 15 seconds Yeah. Hi sir. Thank you for the opportunity. So my first question is with regards to your opening remarks on 42:22 42 minutes, 22 seconds you know your interaction with the Japanese customer. So, so where are we in this discussion now and uh you know 42:30 42 minutes, 30 seconds do we have any visibility of uh certain onboarding of certain clients or certain new projects coming in in the near term? 42:49 42 minutes, 49 seconds Hello. Uh was I audible? 42:51 42 minutes, 51 seconds Yeah, thank you. Uh yeah know you are audible. uh you know thank you so much for your question. So listen our relationship is very strong. We are 43:00 43 minutes heavily uh committed to that part of the world. We have a full-time very experienced dedicated resource uh just 43:08 43 minutes, 8 seconds for the CDMO business in addition to the oliggo resources and actually all different parts of the businesses that we have all three engines actually 43:17 43 minutes, 17 seconds that's a very unique thing CDMMO API um specialty camp and oligo all five of them are seeing 43:26 43 minutes, 26 seconds traction from Japan area um this uh recent trip that I did we met with lot of existing customer a lot of customers 43:34 43 minutes, 34 seconds along with actually Dr. Nares and also we met with some very large innovators and had very exciting meetings. I'm happy to share Dr. Naran is actually 43:43 43 minutes, 43 seconds going back again because customers want to see him and discuss some other important things. So in you know in addition to existing relationship we 43:51 43 minutes, 51 seconds have actually onboarded a new customer which I talked about in my opening with Mark it is also from Japan on a CDMO 43:58 43 minutes, 58 seconds that's a commercial molecule that is back transfer is going on that is scaling and we expect it to reach its full potential at least based on our 44:06 44 minutes, 6 seconds projection in the next year year and a half time frame right so that's happening on it back cam actually we have onboarded uh Japanese customer last 44:14 44 minutes, 14 seconds quarter when we are doing very early phase work with them and that's looking very very promising. So we have multiple 44:21 44 minutes, 21 seconds relationship with Japan. We continue to invest time and I am personally committed to see lot of growth coming from that area. The relationship with 44:30 44 minutes, 30 seconds customers is very strong and uh we are excited I think with the potential with existing products with same customers 44:38 44 minutes, 38 seconds with new products with the same customers and the new customer pipeline that we are developing in that area. 44:47 44 minutes, 47 seconds Got it sir and uh so just uh one more on your API business. So uh you know how 44:55 44 minutes, 55 seconds does this uh you know fit into the entire scheme of things when you know we are approaching innovators and at the same time we have this generic business. 45:05 45 minutes, 5 seconds So I mean what is the perception that the innovators would have you know when we are uh into uh a generic kind of a 45:12 45 minutes, 12 seconds business for our business model I'll let Dr. Prasad answer that I have my own views but let Dr. answer I'll be 45:20 45 minutes, 20 seconds happy to thank you for this question to clarify ourselves the very fact that we have defined our thesis for 45:27 45 minutes, 27 seconds API plus is not to compete with the innovative companies on paragraph 4 filings it is more of a matured product 45:37 45 minutes, 37 seconds with a deeper cost leadership position where by securing global capacity where we can gain a market leadership position 45:45 45 minutes, 45 seconds those are all the products that we always play on the Contrary we have you have you must have followed our commentary in the early part of our con 45:54 45 minutes, 54 seconds call where we mentioned one of the branded product was qualified by the 46:00 46 minutes innovator company which API belongs to them. So what it implies is we become a 46:08 46 minutes, 8 seconds life cycle management solution providers for the innovator companies for their matured molecules. In fact, it actually 46:16 46 minutes, 16 seconds complements our strategy of CDMO by complementing our overall skill set about API. As you understand the skill 46:25 46 minutes, 25 seconds set and the regulatory environment that is required for making intermediate to API is completely different. So we have 46:33 46 minutes, 33 seconds that unique competency and that complements and propels the growth of both the engines of CDMO as well as API plus 46:42 46 minutes, 42 seconds you want to add then I think you complement it. So we are seeing good traction just in addition to the one that Dr. Prasada talk. I actually had a discussion with a 46:50 46 minutes, 50 seconds different customer recently and they were looking at different businesses and when they took the lab products they were very excited and uh they want they 46:59 46 minutes, 59 seconds immediately start inquiring about two APIs that we do because they are securing it from a very high cost area and they immediately inquiry was can we 47:08 47 minutes, 8 seconds work with you guys. So I personally is very complimentary. It's helping uh our customers and the innovators actually 47:17 47 minutes, 17 seconds optimize their costs, accelerate their speed and then even have alternate sources in certain places. 47:24 47 minutes, 24 seconds Got it. And uh so one final one if I may. So your capacity expansion at NJ and Sapala. So when does that come on 47:33 47 minutes, 33 seconds board? And uh you know when you talk about uh the niche uh specialties uh you know scaling up to say 25%. Is that 47:42 47 minutes, 42 seconds going to be driven by the new capacities what you're building off? 47:50 47 minutes, 50 seconds So the expansion of oligos site at our Nacharam site uh is actually in late stages of construction. We expect some 47:59 47 minutes, 59 seconds validation and uh other things to happen next quarter and I think by the end of this calendar year we should have it live. We are actually already having 48:07 48 minutes, 7 seconds some active discussions with customers to really bring some products there. uh ADC site the work has already started um 48:16 48 minutes, 16 seconds and the u the timeline for that could be early calendar next year uh somewhere 48:24 48 minutes, 24 seconds that time frame a lot depends on I think some of the other factors there but we are aggressively pursuing and trying to 48:32 48 minutes, 32 seconds push the contractors to finish it before the end of this career so we should see some traction this year our hope is that you know on both of them we are having 48:39 48 minutes, 39 seconds active discussions we should see signups some contraction but next year we'll see a full-fledged impact of those sites. 48:48 48 minutes, 48 seconds Wonderful sir. Thank you for answering my questions. Thank you. 48:57 48 minutes, 57 seconds Next question is from the line of Chaksha from White Pine Investments Management. Please go ahead. 49:04 49 minutes, 4 seconds Yeah, thanks for the opportunity. The first question I have is this one-time expenses that we have. Uh when can we 49:14 49 minutes, 14 seconds expect them to not appear in P&L because yeah the way I look at is the more we do M&A more this one time will keep on 49:23 49 minutes, 23 seconds coming. So if you can throw some light uh on this one time expenses that you classify uh is this the last year 49:31 49 minutes, 31 seconds assuming there are no further M&A or is there a last quarter? 49:35 49 minutes, 35 seconds So that's why because that's a significant part of our aida bridge that's why I'm asking 49:44 49 minutes, 44 seconds so chag him to this side so for us what we do is 49:51 49 minutes, 51 seconds we classify the non operating related expenditure 49:57 49 minutes, 57 seconds into the one-time expenses okay so I mean the nature of business is such that 50:05 50 minutes, 5 seconds we have an employee uh esops and that we categorize as one-time expenses or these 50:14 50 minutes, 14 seconds appear as whatever you wish to call them. These are the adjustments that appear there right for us in the current 50:22 50 minutes, 22 seconds quarter we've also incurred certain professional and legal services which is associated with talent acquisition and contractual compliances. 50:34 50 minutes, 34 seconds Now these are actually part of our ongoing commitment to secure top talent and protecting companies intellectual property as well as competitive positions. 50:44 50 minutes, 44 seconds In auditor's view, this was considered as a one-time expenses and it was classified as such. So that's what they 50:53 50 minutes, 53 seconds are pertaining to this quarter. I think it's very difficult for me to answer a question about when they can disappear. 51:00 51 minutes I mean I would be as interested as you that they disappear but that's the current nature of the business 51:07 51 minutes, 7 seconds because in 24 we had a reasonable amount in 25 we had a reasonable amount of one time uh and your AIDA bridge really 51:15 51 minutes, 15 seconds changes simply because of this number I understand forex is is a different uh uh thing al together and I appreciate that. 51:24 51 minutes, 24 seconds So that's one. Uh second is uh uh second question is in just again 51:31 51 minutes, 31 seconds coming back to S26 uh outlook. Uh is uh the way to look at this is there has to 51:39 51 minutes, 39 seconds be a significant ramp up in H2CMO uh for us to have a 30% kind of margins 51:47 51 minutes, 47 seconds given the way that Q1 has played out. uh is the is this the right uh understanding or assumption for us to be 51:55 51 minutes, 55 seconds closer to 30% margin H2 has to be a significant ramp up in uh in pharma CDMO 52:02 52 minutes, 2 seconds and a related question is this 30% adjusted growth in pharma CDM you called out any indication from customer by when 52:11 52 minutes, 11 seconds this inventory restocking will get over or at what stage they are because that 52:23 52 minutes, 23 seconds So Jer I think uh two points one we have reiterated our guidance for FI26 52:31 52 minutes, 31 seconds number two we have commented that we are a long-term business we are investing in 52:38 52 minutes, 38 seconds the business to deliver a $1 billion by 2030 and mid30s a bitter I think that's 52:46 52 minutes, 46 seconds the guidance we would want you to look into and consider. 52:55 52 minutes, 55 seconds No, fair point. I as far as dto is concerned, allow me to finish my second part of your question. 53:01 53 minutes, 1 second As far as detocking of the commercial molecules is concerned, we had mentioned that it is a year phenomena. 53:09 53 minutes, 9 seconds At quarter one it is very difficult for the customer to share any appreciation more than what they have shared at this stage. 53:19 53 minutes, 19 seconds Okay. This this is this is appreciation. 53:24 53 minutes, 24 seconds Okay. Thank you very much and all the best. Thank you. 53:29 53 minutes, 29 seconds Next question is from the line of Vive Akarval from City Group. Please go ahead. 53:34 53 minutes, 34 seconds Hi. Thanks for the question. uh in the opening com opening comments you talked about an API of branded product uh it 53:42 53 minutes, 42 seconds would be helpful if you can throw some more light on what kind of the product it is so what's the overall market size 53:49 53 minutes, 49 seconds at innovator level and uh when you can commercialize this product 54:01 54 minutes, 1 second repeat the question hey can you please repeat the question. 54:07 54 minutes, 7 seconds Yeah. So, uh the question is related to API supply contract that you got for a branded product. Uh you have mentioned 54:15 54 minutes, 15 seconds in the opening dean. So, just want to understand what kind of the product it is and uh what are the overall market size of that product at an innovator 54:23 54 minutes, 23 seconds level and uh from your end uh when you can commercialize that product. Thank you. 54:37 54 minutes, 37 seconds It's a thank you for the question. It's a commercial product for us and we are not making for customer based on our 54:46 54 minutes, 46 seconds experience of making this product with long-term stability and our proven track record customers actually qualified us 54:54 54 minutes, 54 seconds which enables us to increase our market share from what it is now to a substantial level. At this stage we can 55:01 55 minutes, 1 second share up to this extent. We will definitely be the dominant market player for this particular product with this 55:08 55 minutes, 8 seconds new addition of the innovator as a life management solution. 55:14 55 minutes, 14 seconds We can be one of the largest in the globe for this molecular. 55:21 55 minutes, 21 seconds Okay. So this product is already commercialized by the innovator in the market actually. 55:28 55 minutes, 28 seconds So already commercial for the innovator innovator and uh they have been sourcing uh from one of the European counterpart 55:37 55 minutes, 37 seconds because of their strategic change. They are looking for a long-term sustainable partner outside of Europe. That's how uh 55:44 55 minutes, 44 seconds it's a long process. It took almost uh six quarters time to reach to the stage what we are talking about. Otherwise it's a fully fully commercial product for the innovator under their own hand. 55:57 55 minutes, 57 seconds Understood. And what would be the overall market size of the product uh at an innovator level? 56:04 56 minutes, 4 seconds It's difficult to uh put that number attached to it right now. 56:10 56 minutes, 10 seconds No problem at all. Just one more question around this uh uh desktoping. 56:14 56 minutes, 14 seconds It's quite common in the CBM business side. So uh is it possible for you to uh highlight what is the reason for the 56:22 56 minutes, 22 seconds deep stocking uh by the innovator and uh is it possible you can see some kind of a ramp up in the coming quarters from 56:31 56 minutes, 31 seconds this from these couple of modules 56:41 56 minutes, 41 seconds big uh I think it's a customer specific uh point which is there I'm assuming ing that it would be a function of many 56:51 56 minutes, 51 seconds subjects including inventory management and the commercial demand from their side 56:58 56 minutes, 58 seconds and if you support these two products uh whatever the supplies that you made in this particular quarter so these are likely to remain uh more or less similar 57:06 57 minutes, 6 seconds for the rest of the uh rest of the year is it the right way to look at 57:14 57 minutes, 14 seconds sorry Vive your voice is not clear for us Uh could you please repeat the question? 57:20 57 minutes, 20 seconds No problem. I will take it uh from Tinder later. Thank you. Thanks. 57:27 57 minutes, 27 seconds Thank you. 57:31 57 minutes, 31 seconds Next question is from the line of DAL from Jeff. Please go ahead. 57:38 57 minutes, 38 seconds Yeah. Hi, thanks for taking my question. Uh so on the 2030 guidance which is uh a 57:46 57 minutes, 46 seconds billion dollar uh how much uh you think you know the current platform can get 57:53 57 minutes, 53 seconds you up to very very very ballpark because let's say you know in fiscal 25 we were at almost 335 million and we 58:02 58 minutes, 2 seconds need to reach a billion so that's almost cap of 660 million. So how much of this delta can the current platform bridge 58:11 58 minutes, 11 seconds very very I won't hold on to those numbers because I know it's early days but you think like you know 80 90% of it 58:19 58 minutes, 19 seconds is achievable by the current capability and you just need to invest into the capacities and maybe you know inch up uh 58:27 58 minutes, 27 seconds on the capability curve or you think there are big missing gaps and uh the current uh platform can get maybe 50 60% 58:36 58 minutes, 36 seconds of it and there are other uh you know capabilities that you need to really u uh get into the market and uh post that 58:46 58 minutes, 46 seconds you'll probably be able to get into the rest rest of the delta of this 2030 guidance 58:56 58 minutes, 56 seconds honestly you know we could go for an hour on this particular subject I mean obviously for us as an organization 59:03 59 minutes, 3 seconds there's very deep work that has been done Before we've articulated this, I'm genuinely struggling as to where to 59:11 59 minutes, 11 seconds start and where to end. Uh the answer to this question, let me give you a pointer. Okay. One of the reason we've 59:18 59 minutes, 18 seconds called out the niche tech and the share of revenue is for the very reason for 59:26 59 minutes, 26 seconds the investors to appreciate and understand how we've been investing behind niche and how that share of 59:34 59 minutes, 34 seconds revenue is growing. If I mention what we have articulated, we were at mid teens in FI25. 59:46 59 minutes, 46 seconds We've increased the share of revenue to early 20s and we're guiding to mid20s in 59:53 59 minutes, 53 seconds niche tech. And if you look at some of the earlier material we have shared, 59:59 59 minutes, 59 seconds niche tech is slated to grow upwards of 22 to 25% 1:00:06 1 hour, 6 seconds in the market and we believe that we can get a dominant share there. 1:00:12 1 hour, 12 seconds So I would like to end it here because I think this is a subject where we could spend lot of time working together on 1:00:21 1 hour, 21 seconds this and helping you relate to the entire strategic direction of the company. 1:00:28 1 hour, 28 seconds Got it. And uh secondly from a tariff standpoint uh how does the math work on the specime is it exposed to us or you 1:00:37 1 hour, 37 seconds think you know the exposure to us is extremely low and uh uh that's not really a area uh to be looked into. 1:00:49 1 hour, 49 seconds So our supplies in aim are uh to Latan. 1:00:54 1 hour, 54 seconds So we are not exposed to US. In the spec on the OLED piece, our customer is 1:01:01 1 hour, 1 minute, 1 second specifically willing to pick up the tariff if and when the tariff were to get implemented. So we are not having an 1:01:09 1 hour, 1 minute, 9 seconds exposure on either of the two segments uh on the tariff side. 1:01:17 1 hour, 1 minute, 17 seconds This is uh helpful. Uh just a few bit on the you know uh bookkeeping side. Uh so uh what was the reason for other income? 1:01:28 1 hour, 1 minute, 28 seconds uh and how do you see that going forward and secondly on ESOP charges uh uh till 1:01:35 1 hour, 1 minute, 35 seconds what year uh do you expect them to hit our P&L and uh what could be the ballpark quantum will it be sort of a 1:01:44 1 hour, 1 minute, 44 seconds static number next 2 3 years so ESOP charges 1:01:52 1 hour, 1 minute, 52 seconds is not a static number I think it has been variable in FI25 versus 26 We've been uh in all fairness we've been waiting for completion of the merger. 1:02:03 1 hour, 2 minutes, 3 seconds There will be further esops which have to be granted and hence the charge will increase on the ESOP. 1:02:14 1 hour, 2 minutes, 14 seconds Okay. So what kind of charge are we expecting for 26? Any expectation for 27 as well? 1:02:22 1 hour, 2 minutes, 22 seconds No, it's too early. uh I have to work with our HR colleagues. I don't have visibility to share with you at this stage. Please allow me some time. 1:02:33 1 hour, 2 minutes, 33 seconds Yeah, sure. No issue. And uh on other income uh how do we see that shaping up uh into into next few quarters and for 1:02:42 1 hour, 2 minutes, 42 seconds the year because from a Qoq standpoint there is a significant fall. Uh was the payment for uh some of the acquisition done in 4Q or is there something else? 1:02:52 1 hour, 2 minutes, 52 seconds So is it PLI income something something else? 1:02:57 1 hour, 2 minutes, 57 seconds No, no. I think uh I think we need to okay a majority part of the other income 1:03:05 1 hour, 3 minutes, 5 seconds was the treasury related income which was invested when we acquired the assets 1:03:12 1 hour, 3 minutes, 12 seconds of NJO and Sapala right so that's what has led to the decline in the other 1:03:19 1 hour, 3 minutes, 19 seconds income apart from other other minor elements of it. 1:03:25 1 hour, 3 minutes, 25 seconds Got it. So this is the sort of number that we can look forward to in next few 1:03:30 1 hour, 3 minutes, 30 seconds quarters. Is that right? Understanding 1:03:40 1 hour, 3 minutes, 40 seconds you'll have to really excuse me for these kind of questions. No problem. 1:03:44 1 hour, 3 minutes, 44 seconds See the cash balance will determine the other income, right? 1:03:47 1 hour, 3 minutes, 47 seconds And we are reporting healthy cashes cash in the balance sheet. 1:03:52 1 hour, 3 minutes, 52 seconds No problem. No problem. Okay. And lastly uh wanted to understand the math behind. 1:03:58 1 hour, 3 minutes, 58 seconds Sorry to interrupt Mr. Dhal. We will take that as a last question due to time constraint. Sir thank you. 1:04:07 1 hour, 4 minutes, 7 seconds Thank you ladies and gentlemen. We will take that as a last question for the day. I would now like to hand the conference over to the management for the closing comments. 1:04:20 1 hour, 4 minutes, 20 seconds Thank you everyone. We look forward to our next call. Thanks for your time and joining us. Thank you. Thank you all of you. To all of you. 1:04:28 1 hour, 4 minutes, 28 seconds Thank you sir. On behalf of Cohen's Life Sciences Limited, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.