Innova Captab Ltd — Q4 FY26

Innova Captab Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=LHHzTcOxz0E Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Inova Capab Limited Q4 and FI26 on conference call. This conference 0:09 9 seconds call may contain forward-looking statement about the company which are based on beliefs, opinion and expectation of the company as on date of 0:16 16 seconds this call. These statement are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all 0:25 25 seconds participant line will be in the listen only mode and there will be an opportunity for you to ask question after the presentation conclude. Should you need assistance during the 0:33 33 seconds conference call, please signal an operator by pressing star then zero on your touchstone phone. Today from the management side, we have with us Mr. Vin 0:43 43 seconds Lori, managing director and Mr. Lokesh Wasin, chief financial officer and SG investor relation advisor. I now hand the conference over to Mr. Vine 0:52 52 seconds Lahariala, managing director of Innova Capab Limited. Thank you and over to you sir. 1:00 1 minute So please Good morning everyone. 1:06 1 minute, 6 seconds Good morning everyone and thank you for joining us today. We are pleased to present our operational and financial performance for Q4 and FY26. 1:16 1 minute, 16 seconds FY26 has been a defining year for Inova Cap as we achieved our highest ever annual performance reflecting the strength of our business model 1:25 1 minute, 25 seconds aggregation capability and customer relationship on a full year basis revenue stood at INR 1630 cr resisting a 1:34 1 minute, 34 seconds healthy growth of 31% yearonear while Q4 revenue come at 1 INR 448 cr delivering 1:42 1 minute, 42 seconds a strong growth of 42% compared to the cross funing quarter last year. The growth momentum was broad-based 1:50 1 minute, 50 seconds supported by continued traction across both our CDMO and branded Zenic business. 1:57 1 minute, 57 seconds Over the past few over the last few years, we have remained focused on expanding our product portfolio, strengthening customer partnership, 2:05 2 minutes, 5 seconds enhancing manufacturing capability and improving operational efficiencies. The benefit benefit of these initiatives are 2:13 2 minutes, 13 seconds now increasingly visible in our overall performance. 2:17 2 minutes, 17 seconds A key highlight during the year was the successful completion of the first full year of operation at our Katwa Zamu 2:25 2 minutes, 25 seconds facility. The ramp up was progressely progress progress steadily and I would like to appreciate the effort of our 2:33 2 minutes, 33 seconds team across the function for ensuring smooth execution while maintaining high standard of quality and compliance. 2:41 2 minutes, 41 seconds Starting with the CDM of business, we continue to deepen our presence in the domestic pharmaceutical market by 2:48 2 minutes, 48 seconds expanding our customer base to over 350 clients, including several leading pharmaceutical companies in India. 3:01 3 minutes, 1 second This reflect our continued emphasis on product development, customer centric innovation and long-term partnership. We 3:09 3 minutes, 9 seconds sincerely thank our customer for their continued trust and confidence in our capability. The CDMM of business 3:16 3 minutes, 16 seconds reported revenue of INR 11 33 cr that is 1,133 cr during FY26 reflecting a 3:25 3 minutes, 25 seconds yearon-year growth of 24%. Going forward, we see strong opportunity to further expand wallet share with existing customer while also adding new 3:34 3 minutes, 34 seconds relationship across the category and doses forms. Coming to our branded genic business, we delivered a strong growth 3:41 3 minutes, 41 seconds of 51% during the year. The performance was driven by geographical expansion into high potential domestic and 3:49 3 minutes, 49 seconds international market coupled with deeper penetration in our existing geographies. 3:54 3 minutes, 54 seconds Our manufacturing infrastructure continue to remain one of the core strength of the company. Over the years, we have built advanced and 4:02 4 minutes, 2 seconds technologydriven facility supported by automation, stringent quality system and globally compliant manufacturing 4:09 4 minutes, 9 seconds practices. These capabilities provide us with scalability, consistency, tracibility and operational flexibility 4:16 4 minutes, 16 seconds as we continue to grow the business. We also achieved important regulatory milestone during this year. Our 4:23 4 minutes, 23 seconds sephilosporin facility in Bhi received UK MHR approval while our Zamu blocks received P certification through SMDC 4:30 4 minutes, 30 seconds Ukraine. These certification will support our entry into regulated international market and strengthen our 4:37 4 minutes, 37 seconds positioning as a quality focused pharmaceutical manufacturing partner. 4:43 4 minutes, 43 seconds The Jammu facility continue to business encouraging progress with several marquee customers successfully 4:51 4 minutes, 51 seconds completing audits and validating stability data along with other key parameter. We remain confident about the scale up of the facility and its 4:59 4 minutes, 59 seconds contribution to grow over the coming years. 5:04 5 minutes, 4 seconds Looking ahead with multiple growth lever in place, capacity ramp up, an expanding product portfolio, deeper market 5:12 5 minutes, 12 seconds penetration, and a strong R&D engine. We are confident in our ability to deliver 20% plus revenue growth and create 5:20 5 minutes, 20 seconds long-term value for stakeholder. With improving scale and operating liies, we expect IBITA growth to outperform 5:28 5 minutes, 28 seconds revenue growth. As the Jamu plant utilization ramp up further, PAT growth should outpace IBITA growth added with 5:37 5 minutes, 37 seconds by the fact that the deprecion and financial costs related to the Zamu facility are largely fixed and already reflected in the base. Overall 5:45 5 minutes, 45 seconds incremental growth should translate into much stronger profitability going forward. 5:51 5 minutes, 51 seconds We remain committed to executing our strategic road map with discipline and agility across both the both of our 5:59 5 minutes, 59 seconds business area. With this, I would like to hand over the call to our CFO to detail out the financial performance during Q4 and FY26. 6:10 6 minutes, 10 seconds Thank you sir and good morning everyone. 6:13 6 minutes, 13 seconds I will now walk you through the financial highlights for quarter 4 and FI26. 6:20 6 minutes, 20 seconds To highlight consolidated revenue for the quarter came in at rupees 447.8 crores with a 6:28 6 minutes, 28 seconds strong 42% year-on-year growth mainly driven by strong demand in both our business areas. Exports contributed 28% 6:37 6 minutes, 37 seconds for quarter 4 reflecting our continued focus and progress in global markets. 6:42 6 minutes, 42 seconds Our CDMO business revenue came in at rupees 34.8 8 crores up by 41% yearonear 6:50 6 minutes, 50 seconds mainly led by increased product portfolio adding new customers and deepening our wallet share with existing customers the branded generic business 7:00 7 minutes revenue stood at rupees 133 crores growth of 46% on a year-on-year basis 7:07 7 minutes, 7 seconds showcasing a pure testament to our distribution strategies for the quarter stood at rupees 66.7 7:14 7 minutes, 14 seconds crores with 31% % increase and aida margin of 14.9% mainly due to change in product mix 7:22 7 minutes, 22 seconds profit after tax for the quarter came in at rupes 38.1 cr up 29% on year-on-year basis 7:30 7 minutes, 30 seconds FY 26 highlights consolidated revenue for the full year came in at rupees 1630 7:38 7 minutes, 38 seconds cr with a growth of 31% on an year-on-year basis exports for the full year contributed 31% to the overall revenue. 7:49 7 minutes, 49 seconds TDMO business revenue stood at 1,133 crores with a growth of 24%. 7:55 7 minutes, 55 seconds Branded Germany business showed robust growth of 51% and came in at rupes 497 crores. AITA for the full year came in 8:04 8 minutes, 4 seconds at rupees 250.3 crores as against rupees 198.2 crores last year. Operating margins for FI26 came in at 15.4%. 8:14 8 minutes, 14 seconds Profit after tax stood at rupees 140.9 crores with a growth of 10% on a year-on-year basis. 8:22 8 minutes, 22 seconds Our balance sheet continues to demonstrate strong resilience reflecting the effect of strategic decisions undertaken over the past few years that 8:31 8 minutes, 31 seconds are now translating into tangible education on the ground. With disciplined capital allocation, a prudent leverage profile and sustained 8:40 8 minutes, 40 seconds investment in capacity and capabilities, we have built a solid financial foundation to support our growth ambitions. As these initiatives continue 8:48 8 minutes, 48 seconds to scale and deliver operating leverage, we are confident of our future growth in the coming years. With this, I would 8:56 8 minutes, 56 seconds like to conclude our opening remarks and open the floor for question and answer. Thank you. 9:02 9 minutes, 2 seconds Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press star 9:10 9 minutes, 10 seconds N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use 9:18 9 minutes, 18 seconds handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question symbols. 9:33 9 minutes, 33 seconds Our first question come from the line of Anuba from recent capital. Please go ahead. 9:39 9 minutes, 39 seconds Uh sir, thanks for the opportunity. Uh my first question is uh uh can you provide a rate of the CGMO uh segment 9:48 9 minutes, 48 seconds revenue growth into volume and realization growth uh both for uh like FI 26 and current quarter. 10:01 10 minutes, 1 second So normally uh our volume growth is at an uh entry level as other board of a certainty level. So often if you see 10:10 10 minutes, 10 seconds just so on a year onear basis our uh bad facility I uh grow by around 35%. 10:21 10 minutes, 21 seconds And uh this was mainly through Jammu facility which has just ramped up for the full year. And uh talking about our facility uh the growth has mainly come through volumes. 10:32 10 minutes, 32 seconds Okay. And uh are you witnessing uh like uh a spike in API prices and uh like how 10:42 10 minutes, 42 seconds will that impact our uh like revenue growth in the PDM segment going forward? 10:50 10 minutes, 50 seconds So basically you are talking about increase in APIs and its impact on our revenue model right on on CDM revenue 10:57 10 minutes, 57 seconds will be able because of the Middle East situation are we witnessing uh spiking uh EPI prices and uh I understand it's a 11:07 11 minutes, 7 seconds costless model but going forward will we be able to pass it on completely 11:13 11 minutes, 13 seconds so uh yes so due to this uh going on conflict there is certain uptick in uh prices of our raw materials and major 11:21 11 minutes, 21 seconds ingredients. Uh you rightly said uh our cost our pricing with CDMOS customers on cost plus basis. So uh largely those 11:30 11 minutes, 30 seconds increase has been passed to our customers. Exactly. 11:35 11 minutes, 35 seconds And as I said the uh like uh sequential acceleration revenue growth in second 11:42 11 minutes, 42 seconds half and even the growth is higher than is it mainly driven by the ramp up in the jumbo facility. 11:53 11 minutes, 53 seconds See the if I talk about if we talk about overall growth uh in Q4 as well as full year yes uh one of the major contributor is our ramp up of our Jammu facility. 12:03 12 minutes, 3 seconds But having said that uh each and every business area as well as our capability across group has contributed to this overall growth. 12:13 12 minutes, 13 seconds And sir for the branded uh generic segment do you provide a split of that between domestic branded and export 12:20 12 minutes, 20 seconds branded uh uh normally we do not track our geography based business that is in the 12:28 12 minutes, 28 seconds serial level but roughly it is in the range of 70% uh uh domestic and 30 35% exports. 12:38 12 minutes, 38 seconds Yes sir. And so between the two which segment is like like driving the very like good growth uh for this overall business. 12:49 12 minutes, 49 seconds Can you provide some color? Uh yes as as we submitted while majority of our uh business area business comes from our 12:57 12 minutes, 57 seconds CTMO business area but uh the growth which is coming uh is coming from all business area and at the same time is 13:05 13 minutes, 5 seconds infused by each and every manufacturing capability that we are having uh final question before I get back in 13:14 13 minutes, 14 seconds the queue sir how are you witnessing the schedule and implementation like uh 13:21 13 minutes, 21 seconds a while now. So, uh like uh do you see like crackdown on uh like facilities which are not compliant and uh is it 13:30 13 minutes, 30 seconds like helping our growth? Can you give some color on that? 13:36 13 minutes, 36 seconds So, uh scheduleulum is now effective uh across the country and uh it is better that we comment on our capability. Over 13:45 13 minutes, 45 seconds all facilities are well uh compliant with the local uh regulation as well as 13:52 13 minutes, 52 seconds the international regulation. We have the approvals like uh if you see uh in 14:00 14 minutes the last uh year also we have received MH certification, we have the UCMP certification and then we have the PI certification. 14:07 14 minutes, 7 seconds So uh we have the international as well as the local compliance plants and uh uh definitely those who are complying will 14:16 14 minutes, 16 seconds be in a advantage phase that I can say. 14:22 14 minutes, 22 seconds Okay. Thank you. 14:29 14 minutes, 29 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star one. Our 14:38 14 minutes, 38 seconds first question come from uh uh next question come from the line of Sudaran Padama from ASK investment managers. 14:45 14 minutes, 45 seconds Please go ahead. 14:48 14 minutes, 48 seconds Yeah, thank you for taking my question and congrats on set of number. Sir uh you know with all the global issues happening uh you know how is the 14:56 14 minutes, 56 seconds availability of raw materials? Do we have any issues in the supply chain that we have seen which we you know are trying to address? Can you give some 15:04 15 minutes, 4 seconds color on you know the availability of material? 15:11 15 minutes, 11 seconds So Sudasan G as far as the availability is concerned there is no such uh problem what what should I say? So prices are 15:20 15 minutes, 20 seconds going up that is the the one thing but availability is not not at all a concern. So nothing is in in in 15:27 15 minutes, 27 seconds [clears throat] salted or the other way around what we can say uh there are two things one is the demand side and one is 15:34 15 minutes, 34 seconds the supply side. So as uh if you compare with the COVID situation uh in COVID situation there is a demand side 15:42 15 minutes, 42 seconds disruption also right this time demand is increasing at a normal uh growth rate or normal pace there are some disruption 15:52 15 minutes, 52 seconds on the supply side so that basically on the prices rather than availability of the material largely. 16:01 16 minutes, 1 second Mhm. Sure sir and sir you know coming to you know uh the sub parts of the business I mean I'm just trying to gauge 16:07 16 minutes, 7 seconds the you know uh the extent of operating leverage that can happen if I look at the utilization across plant I mean demo 16:16 16 minutes, 16 seconds facility is at sub 10% then you have the other facilities which are 75%. 16:22 16 minutes, 22 seconds And also if I look at you know sharon which again can be a huge positive delta both on sales and margin. So while Eida 16:30 16 minutes, 30 seconds would grow faster than your top line, I mean should we see what is the kind of margin expansion should we see because 16:37 16 minutes, 37 seconds across the board when I look at it, it looks like it is all you know pointing out to sustained margin expansion over the next. 16:46 16 minutes, 46 seconds So uh this is again a complex area to comment on the margin expansion but what we can say that uh uh it should be 16:55 16 minutes, 55 seconds better uh than the uh current year next year the margin or should be better than the current year. 17:07 17 minutes, 7 seconds So because how it is a complex that it depend on the product basket geographical presence everything and 17:15 17 minutes, 15 seconds then overall number will h how much delta will result. So that we we are not 17:22 17 minutes, 22 seconds able to speculate on that and the overall outlook we can say that it is positive for margin expansion also. 17:32 17 minutes, 32 seconds Sure. Sir the final question before I join that with you is when I look at the regulated international markets I mean 17:40 17 minutes, 40 seconds we have basically got the approval from UK Mr. foreign unit if we have a dedicated unit and if I look at the 17:48 17 minutes, 48 seconds foreign you know market as well I think we are in a stronger wicket given that you know government has implemented the MIP you know ensuring that Indian 17:57 17 minutes, 57 seconds ecosystem does well etc. I mean we also have you know invested a lot on sharon after you know we have got that facility 18:04 18 minutes, 4 seconds investment. So how do we see this part of the business I mean [clears throat] the international regulated pathway in the next few years from a strategic 18:12 18 minutes, 12 seconds perspective and where do you think in the next two to three years in terms of contribution. 18:19 18 minutes, 19 seconds So uh if you see our regulated portfolio uh as you already covered that uh acquisition of seron helped us in in 18:27 18 minutes, 27 seconds that uh territory. In seron we are operating in market like Canada, UK and then Europe, Australia and in from our 18:35 18 minutes, 35 seconds sephilosing block also we are operating uh in all these market uh Canada, Europe and uh uh UK especially right so uh we 18:46 18 minutes, 46 seconds we are continuing focused on these market filing our uh product uh uh in 18:53 18 minutes, 53 seconds this territory uh we are getting the endorsement in uh for the multiple product in these market and we see a 19:00 19 minutes healthy uh better growth uh in our business and uh with a better margin especially uh in this uh market. 19:13 19 minutes, 13 seconds So do we see a contribution of you know developed markets improving you know visibility in the next three years from where it is today. 19:23 19 minutes, 23 seconds So Sudas if you see that uh we have covered this uh line so multiple times that we we are focused on all our 19:33 19 minutes, 33 seconds engines simultaneously uh equally whether it's a regulated market or our domestic trade generic or our CDMO we 19:42 19 minutes, 42 seconds are focused on all market so let's say if we are growing in one segment by 30% the the other one is also growing 19:50 19 minutes, 50 seconds so whether the product overall All mix will change or not change that is in the future but uh as a strategy or as a 19:58 19 minutes, 58 seconds company we are focused on all the category of the business. 20:04 20 minutes, 4 seconds Sure. Sure sir. Thanks a lot. I'll thank you. 20:13 20 minutes, 13 seconds Our next question come from the line of Ankit Sha from Canada Rabico AMC. Please go ahead. 20:20 20 minutes, 20 seconds Um yeah hi uh thanks for the opportunity. Uh sir uh can you share the revenues from Jammu in this quarter and 20:28 20 minutes, 28 seconds whether it has start started contributing positively to AITA. 20:34 20 minutes, 34 seconds So uh this quarter uh so basically if you talk about full year uh Jammu is achieved around 300 crores and uh this 20:42 20 minutes, 42 seconds quarter we are nearing a bit and in coming quarter as we said that uh the Jamu Mup is going on. We are very much posit positive that in coming quarter we 20:50 20 minutes, 50 seconds should be able to achieve uh AIA posit positive as well as start covering the fifth cost on Jamubat. 20:59 20 minutes, 59 seconds Okay. Right now we will be close to break even and uh going forward it will start contributing positively. Yes sir. 21:07 21 minutes, 7 seconds Okay. Got it. The second question was on the gross margin. So uh if I look our YI 21:15 21 minutes, 15 seconds gross margins are down uh despite our branded uh business share going up. Uh so what is the reason for the decline 21:24 21 minutes, 24 seconds and any RM cost increases are impacting that? 21:30 21 minutes, 30 seconds No sir. So basically uh if you see the uh change in gross margin profile is mainly due to the change in product mix. 21:37 21 minutes, 37 seconds Uh that is the only reason uh the change in raw material prices on the upper side has nothing uh impact on the gross margin part. 21:47 21 minutes, 47 seconds Okay. Okay. 21:49 21 minutes, 49 seconds Got it sir. Uh uh thanks for this. I'll get get back in the for more questions. Thank you. 21:59 21 minutes, 59 seconds Thank you. 22:03 22 minutes, 3 seconds Our next question comes from the line of Anishh Burman from Varia AMC. Please go ahead. 22:10 22 minutes, 10 seconds Hi uh good morning. Thanks for taking my question. Uh just uh Lkesh one question on the specifically the CIFA API prices 22:18 22 minutes, 18 seconds that you are seeing in this quarter. Can you broadly quantify on the CFA prices only what has been the increase on a YI and Q basis? 22:31 22 minutes, 31 seconds So you were talking about previous year uh Abish uh surplus foreign API prices. 22:39 22 minutes, 39 seconds So yes, if you remember uh our surplus for in prices have reduced uh during the quarter two and quarter three of this 22:46 22 minutes, 46 seconds financial year and start stabilizing uh in first half of quarter four before this uh conflict play out. So yes there 22:55 22 minutes, 55 seconds had been impact from Jammu as we have called out earlier that was a major impact which has impacted our revenue during this year. 23:03 23 minutes, 3 seconds Has there been a meaningful increase in these prices on a sequential basis? 23:10 23 minutes, 10 seconds Uh so uh not in the Q4 we can say but yes 23:16 23 minutes, 16 seconds uh with the pre if we see on the YTD basis then we can say yes there is a increase in the prices. 23:24 23 minutes, 24 seconds Okay. Okay. And uh the other question was on you quantified 300 crores of food jamu revenues just uh translates to 23:33 23 minutes, 33 seconds about 90 crores approximately on quarterly revenues and again I mean if these 90 crores are coming at a break 23:40 23 minutes, 40 seconds even so your just a back of the envelope calculation your uh xjamu iita margin comes at about 18 18.2%. Is that a good 23:50 23 minutes, 50 seconds estimate of the xjamu profitability of the business? Yes, you are right. 23:57 23 minutes, 57 seconds Okay. And one more question. Uh Vin, you said that AITA margin in FI27 should show some increase. This is and in the 24:06 24 minutes, 6 seconds previous calls you were also talking about some investments that you need to do in the business for long-term growth because of which I think you mentioned that there might be some pressure on 24:14 24 minutes, 14 seconds margins. So you are talking about an AITA margin increase taking into account these investments that you'll need to do next year. 24:22 24 minutes, 22 seconds So uh if you see that uh the next chunk of the revenue which is going to contribute in 24:31 24 minutes, 31 seconds uh Jammu right so in pharmaceutical facility what happened maximum operating 24:37 24 minutes, 37 seconds side expenses we have already committed uh whether it's a let's say electricity 24:44 24 minutes, 44 seconds or employee and employee benefits head most of the cost is already uh uh 24:51 24 minutes, 51 seconds committed. So the whatever the uh incremental revenue will come there it will trigger the operational deliveries 24:59 24 minutes, 59 seconds and we we expect that there should be a few percent point improvement in the ITA. Now the thing is that overall 25:08 25 minutes, 8 seconds situation will depend on the product mix uh overall revenue growth and every uh factor taking in account. Now let me 25:16 25 minutes, 16 seconds come to the second part of your question that uh if there is a long-term uh investment in any strategy. So what happen in the initial strategy that that 25:25 25 minutes, 25 seconds is a capitalized cost. So let's say if you are putting some uh plant uh in the next financial year then the cost of 25:33 25 minutes, 33 seconds interest will is again a capitalized. So directly it will not flow to the uh P&L and uh that's why we are expecting that there is a margin expansion can happen. 25:46 25 minutes, 46 seconds Okay. So despite this investment there could be a margin expansion at least on the AITA but you also mentioned like the PAT growth to be higher than AITA 25:55 25 minutes, 55 seconds growth. So let's say if there is capitalization of a new facility say still you believe that the PAT growth can be higher than the AITA growth 26:03 26 minutes, 3 seconds because then leverage might hit you negatively because the plant expenses will come and the revenues would not come in FI27 probably. 26:12 26 minutes, 12 seconds Yes. So the cost of depreciation and interest is already taken care last in in the FY26 26:20 26 minutes, 20 seconds right. So if there there is improvement in IITA so that will outperform the IMITA 26:27 26 minutes, 27 seconds that even you if you see the quarter and quarter results of our company uh if you compare the uh results with the Q2 26:36 26 minutes, 36 seconds uh Q3 Q4 result with the Q1 even the H2 with the H1. So that is a clearcut example of that right. So when there is 26:45 26 minutes, 45 seconds a revenue increase of let's say x% then iita and pet grow better than the revenue grow. 26:54 26 minutes, 54 seconds Yeah. But SI for the new investment I mean the deprecation and interest cost is still not in the P&L right because 27:03 27 minutes, 3 seconds so that will take the time now this will uh kick in not in the FY27 or maybe partly kick in for the FY28. 27:13 27 minutes, 13 seconds Okay. Okay. Understood. Yeah. 27:15 27 minutes, 15 seconds Understood. Thank you so much. I'll get back in because any new project if we start with the green field it takes one and a half year to start the commercial production. 27:24 27 minutes, 24 seconds Right. Right. Understood minister. Thank you so much. 27:29 27 minutes, 29 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question may press star and one. Our next question come 27:36 27 minutes, 36 seconds from the line of Rajes Johi from Chris Capital. Please go ahead. 27:41 27 minutes, 41 seconds Yeah. Uh congratulations on a good set of numbers and thank you for this opportunity. Uh so my first would be uh 27:48 27 minutes, 48 seconds I mean a couple of months back I think uh if I remember correctly you had disclosed in an exchange filing you had purchased a land parcel at BI for about 27:58 27 minutes, 58 seconds 20 odd crores. So just wanted to get a sense on you know since you've started this uh Jamu plant recently uh I mean 28:05 28 minutes, 5 seconds are you facing a supply crunch in or a capacity crunch in one of our products already and which is why we've gone ahead with that uh you know producing of 28:14 28 minutes, 14 seconds land there at BDI so this uh if you see the numbers for the BDI general block facilities that is 28:23 28 minutes, 23 seconds on the higher utilization side so uh the Jamu Bhi and acquired for the journal 28:31 28 minutes, 31 seconds block uh construction. So if let's say if we can uh we will come out with the detail not on that once the uh things 28:40 28 minutes, 40 seconds will be finalized but this block will be for the general oral uh tablet capsule 28:46 28 minutes, 46 seconds oral liquid uh facility uh in Bhi that will relax our Bhi portfolio. So if you 28:54 28 minutes, 54 seconds see uh our budy portfolio we are going on a higher utilization side. So keep the growth momentum uh active and live 29:04 29 minutes, 4 seconds uh we need the capacity expansion for general portfolios which is not uh covered in Jamu. In Jamu 29:11 29 minutes, 11 seconds we uh we have like injectable uh in general facility and sephilosporin beta lectum and penum. 29:21 29 minutes, 21 seconds So the expansion will not be in the that area. So it will be in the existing portfolio of bad. 29:30 29 minutes, 30 seconds Understood sir. And so so this expansion uh at bi that you just I mean alluded to. So this will be I mean in which year 29:38 29 minutes, 38 seconds or something? So I mean my question is basically for fi 27. uh do you see any major capex uh I mean in terms of growth 29:46 29 minutes, 46 seconds capex as such uh that we planning to incur or anything which has been already incurred that might come online in FI27. 29:56 29 minutes, 56 seconds So uh just so basically as we said it is still in the uh deluation stage and as and when it would be finalized we will 30:04 30 minutes, 4 seconds come with a more concrete uh uh plan going ahead but on a very broad stop this capex should be in incurred uh in 30:12 30 minutes, 12 seconds both FI27 and FI28 the weightage of it and the portion of it will be finalized as and when we have in the position to 30:20 30 minutes, 20 seconds uh finalize it but uh on an overall level the way we are seeing it right now the overall Capital outlet should be in the range of 150 170 crores. 30:31 30 minutes, 31 seconds Understood sir. Thank you. 30:32 30 minutes, 32 seconds And the and the overall potential overall potential of this block at an uh optimum level should be in the range of 450 to 30:40 30 minutes, 40 seconds 500 or revenue sir. Thank you sir. And the last 30:48 30 minutes, 48 seconds question so on on seag right we seeing very strong pick up now in the IP. So just wanted to get your thoughts on how 30:56 30 minutes, 56 seconds you're looking at this opportunity and your plans for the same. 31:01 31 minutes, 1 second Yeah. So for temagotide we are closely monitoring the market and uh uh we we 31:09 31 minutes, 9 seconds are working in our R&D and uh our initial R&D have uh worked on the 31:16 31 minutes, 16 seconds product and uh uh uh we we are getting a positive figure from there. uh so there are two things that one is the market 31:24 31 minutes, 24 seconds side and other is is our uh uh exhibition of or exhibited exhibit batches and filing to the local FBA. 31:34 31 minutes, 34 seconds So uh we will not be the uh as the product is already launched we will we are not in the race of the initial 31:42 31 minutes, 42 seconds launching and all that. So we will be the uh be in ready with the wave two type uh uh concept. So let's say if the 31:51 31 minutes, 51 seconds product is going good in the market then we should be ready in the wave two of the product. 32:00 32 minutes Understood sir got uh [clears throat] thank you so much and wishing you all the best. 32:07 32 minutes, 7 seconds Thank you. Our next question come from the line of Gorav Bhama from JM Financial. Please go ahead. 32:14 32 minutes, 14 seconds Hi sir good morning. Am I audible? 32:18 32 minutes, 18 seconds Yes good morning. Hello. Yes. First of all, congratulations on the book side of thank you for extending the opportunity. 32:25 32 minutes, 25 seconds So, I have a few questions. Uh the first I'll start with Jamu. If you can provide me a rough split between let's say uh 32:33 32 minutes, 33 seconds CDMMO business and the bandit generic business in that 300 crline that you mentioned for FI26 that'll be helpful. 32:41 32 minutes, 41 seconds Uh so Gorab we normally do not track our uh business area uh revenue at an capability level but yes uh our 32:51 32 minutes, 51 seconds manufacturing capability at Jammu is uh in position to cater all our business areas for all geographies. So this the 32:58 32 minutes, 58 seconds revenue which has come uh from Jammu contributes to both CDMO as well as branded generics. 33:04 33 minutes, 4 seconds Understood and even a rough break up is not possible at this point did not be uh as of now is not possible. 33:12 33 minutes, 12 seconds Understood. And secondly I wanted to understand what uh like uh how has Sharon Bio been performing? What are the top lines for the year and how are the 33:20 33 minutes, 20 seconds margins sitting at that part of the business? So uh Sharon has been performing well. 33:26 33 minutes, 26 seconds It has integrated uh good enough over last two years of our acquisition. This year their revenue uh is around 240 odd 33:36 33 minutes, 36 seconds kores. Uh as we said it is mainly uh presence in export regulated markets. So their margin profile is better on as far as our average margin is concerned. 33:48 33 minutes, 48 seconds Understood. Understood. And so uh going forward to FI27 what will be the cape guidance for the year entire year? 33:56 33 minutes, 56 seconds Do we have any uh mind? 34:00 34 minutes Yes. In addition to in addition to our normal maintenance caps that we incurred uh which is in the trend of our recent 34:07 34 minutes, 7 seconds percentage numbers reflected in financial. So the project of new buddhi plant which we said which is still under 34:14 34 minutes, 14 seconds pipeline and under finalization. Uh that is a major thing that we anticipate should come within FI27 and FI28. 34:23 34 minutes, 23 seconds Understood. Uh that'll be also on my side. Thank you. Thank you. 34:31 34 minutes, 31 seconds Thank you ladies and gentlemen. Anyone who wishes to ask a question my press star and one. 34:40 34 minutes, 40 seconds My next question comes from the line of Nitin Shager from Green Capital Single Family Office. Please go ahead. 34:48 34 minutes, 48 seconds Hi good afternoon. My question is more from a macro point of view as an investor rather than an analyst. Is that 34:57 34 minutes, 57 seconds uh sir what do you see the future of the CDMO and the generics landscape? I just wanted to get a sense of the starting of 35:04 35 minutes, 4 seconds the annual year vision exercise from the company. uh are we looking at more complex biologics and advanced therapies 35:13 35 minutes, 13 seconds or are we looking at antibbody drug conjugates or high potency APIs or peptide based therapies 35:20 35 minutes, 20 seconds uh in terms of more complex uh formulations. 35:25 35 minutes, 25 seconds I just wanted to get a sense of generics uh I mean we all understand CDMO generics and jumbo facility and all that 35:32 35 minutes, 32 seconds but just wanted to get a sense of a vision exercise of the company. it will be helpful to understand uh and evaluate uh the strategy please. Thank you. 35:44 35 minutes, 44 seconds Thank you for the question. So if you see sir uh CDMO partner is uh essential for any uh front- end marketing company. 35:53 35 minutes, 53 seconds It's not like a luxury. It is been essential to [clears throat] to cover up the uh capacity gap to cover up the 36:02 36 minutes, 2 seconds product uh gap technology gap and uh that's why it is a essential partnership between uh two companies uh B2B 36:11 36 minutes, 11 seconds companies uh in the landscape and uh if you see our portfolio uh your question 36:17 36 minutes, 17 seconds is well uh defining the future of the CDMO industry as well. So there are two 36:24 36 minutes, 24 seconds part one is that is like a uh complex and miss segment product like uh peptides and we are already working on 36:33 36 minutes, 33 seconds that and the other is that like what we used to do in the past uh since last 10 20 years and then in the third domain is 36:42 36 minutes, 42 seconds like expanding our capability into the new doses form uh where we are not present. So even if you see our Jammu 36:49 36 minutes, 49 seconds facility we have expanded ourselves in the multiple uh segments like uh BFS resto 36:58 36 minutes, 58 seconds uh and then the different category of the drugs like beta lemm and penms and 37:04 37 minutes, 4 seconds uh overall uh if you see in the future that uh we also expect that the a strong 37:11 37 minutes, 11 seconds product pipeline in R&D can support our business function in a wellal added uh uh margins as well as the top line. 37:24 37 minutes, 24 seconds Great. Thank you sir. I just wanted to get a quick connection to that like in terms of um movement of CDMO more from 37:33 37 minutes, 33 seconds uh to CRDMO where we say that research and development is far more important in the long run and the spend on research 37:40 37 minutes, 40 seconds and development and the actual time and effort and bandwidth of management on research and development rather than just manufacturing. 37:47 37 minutes, 47 seconds So in in in the context of innova cap tab if you can just highlight uh little 37:55 37 minutes, 55 seconds points which we get may make very clear that what is the company intending to do and kind of spend on research and 38:03 38 minutes, 3 seconds development in specific without highlighting any competitive research advantages but generics if you could talk about general viewpoint on research 38:11 38 minutes, 11 seconds and development from the point of view of an over capital. Thank you. 38:16 38 minutes, 16 seconds Yeah. So sir uh uh we are uh basically uh a Zenic focused company and our 38:24 38 minutes, 24 seconds development and R&D is also focused in that segment only right and uh in the coming future there are multiple product 38:33 38 minutes, 33 seconds is going to be of patented and uh uh if we can do the reverse engineering and can launch these product early in market 38:42 38 minutes, 42 seconds right so that could be the advantageous uh play for us And being a CDMMO uh 38:49 38 minutes, 49 seconds company uh for us the advantage is that we can have the front lining uh partner with the multiple company. 38:58 38 minutes, 58 seconds So one way or other way uh there is a cost saving also. Hello. 39:05 39 minutes, 5 seconds Okay. Thank you. Yes. Yes. 39:11 39 minutes, 11 seconds Thank you [clears throat] sir for that uh input and all the best uh for the consistent performance shown by you know our capab. Thank you. 39:20 39 minutes, 20 seconds Thank you. Thank you. 39:22 39 minutes, 22 seconds Thank you. Our next question come from the line of Vir Sha from PGIM. Please go ahead. 39:28 39 minutes, 28 seconds Uh hi. Thank you for the opportunity and congratulations on great setup numbers. 39:33 39 minutes, 33 seconds I just have one question. Uh so you mentioned 300 crores of revenue for Jamu in FI26 which comes to 39:40 39 minutes, 40 seconds sorry to interrupt you in between but your voice is very low. If you can just be a little loud please. Thank you. Am I audible now? Yes. 39:48 39 minutes, 48 seconds Yes. 39:49 39 minutes, 49 seconds Okay. Yeah. So I was mentioning the Jamu revenue you mentioned 300 crores in FY26 which comes to around 7580 crores. if 39:59 39 minutes, 59 seconds you could help me with a quarterly run rate or fullear uh guidance for FY27 specifically from Jamu point of view. So 40:07 40 minutes, 7 seconds how are you expecting the revenue to ramp up uh in that area? 40:14 40 minutes, 14 seconds Yes. So uh for current year uh our exit turn rate is was 90 cr plus for this quarter and uh for as far as fi27 is 40:24 40 minutes, 24 seconds concerned so we would like to maintain that we are very much confident of maintaining that 20% plus volume growth 40:31 40 minutes, 31 seconds uh from fi26 to fi 27 and yes uh jammu would play major role in that but as of now uh the breakup of facility wise may 40:41 40 minutes, 41 seconds not be available it is not feasible for us to share that breakup uh we will still like to maintain that overall at at group level we will maintain that uh 20% plus volume growth. 40:53 40 minutes, 53 seconds Okay. Okay. Great. Thanks. Uh that's it from my side. All the best. Thank you. 41:00 41 minutes Thank you. Our next question come from the line of Anubha Mukharj from Prein Capital. Please go ahead. 41:06 41 minutes, 6 seconds Uh so the domestic uh branded business is it entirely uh trade generics or do 41:13 41 minutes, 13 seconds we market uh like our products through ethical marketing? 41:19 41 minutes, 19 seconds No no no our domestic branded generic business is in in form of trade generic. 41:25 41 minutes, 25 seconds Okay. and and sir uh uh can you uh share some qualitative aspect of like uh what differentiated strategy are you 41:33 41 minutes, 33 seconds following that is helping us uh grow the business at such a high rate it will be very helpful. 41:42 41 minutes, 42 seconds So uh yes uh Anuhab as far as our trade generic business is concerned uh we follow a very ground on ground strategy. 41:52 41 minutes, 52 seconds We are we have it that distribution model through distributor stockist which uh to the stockist level and retailer level. At the same time uh we have 42:01 42 minutes, 1 second adopted a hybrid model of having a uh on field staff at the ground uh which helps 42:09 42 minutes, 9 seconds and contributes to the sales. So they keeps on working with the stock office, the wholesalers as well as the retailers to push the sale forward. So it's a it's 42:18 42 minutes, 18 seconds a hybrid model which we have adopted and it has yearly results year on year at the same time having a good business 42:24 42 minutes, 24 seconds acumen of uh pharmaceutical trading. So the the placement of product the dosage 42:32 42 minutes, 32 seconds form the penetration into market at a uh all level of tiers of market. So it is really helping us to scale up the revenue. 42:42 42 minutes, 42 seconds Get that. And for the branded business, uh is it like therapy agnostic or do we uh focus on certain therapy? 42:52 42 minutes, 52 seconds Sorry, your question is not clear. Can you please repeat? 42:55 42 minutes, 55 seconds Sir, uh yeah, I'll repeat. Sir for the branded generic business uh like do we focus on certain therapies uh in in this 43:04 43 minutes, 4 seconds segment or like we market like all sorts of uh 43:12 43 minutes, 12 seconds so uh from uh if you see from the domestic angle then uh largely where the inova has the capability it is focused 43:21 43 minutes, 21 seconds on that but we are open to the other segment of the uh products. as well. 43:29 43 minutes, 29 seconds Okay, thanks. I'll get back with you. Yeah, thank you. 43:35 43 minutes, 35 seconds Thank you. The next question come from the line of W Gupta from Present Capital. Please go ahead. 43:40 43 minutes, 40 seconds [clears throat] 43:42 43 minutes, 42 seconds Hi sir, thank you for the opportunity. Am I? 43:46 43 minutes, 46 seconds Yes, thank you. Right. Hi sir. So, so we had about 200 odd crores of growth in the CDMO business year on year. Was the 43:55 43 minutes, 55 seconds majority of this growth driven by a domestic business or was majority of it driven by exports? 44:02 44 minutes, 2 seconds So uh as we said earlier also so the revenue which is coming uh whether it is manufacturing capability or business areas it is coming from all uh growth. 44:13 44 minutes, 13 seconds So CDM growth is fueled by both domestic as well as exports. 44:18 44 minutes, 18 seconds Right. But the majority of it will you be able to provide like just a correlative format or whether majority of it was domestic or uh exports 44:27 44 minutes, 27 seconds that quantity team break up may not be level as of now. 44:32 44 minutes, 32 seconds Got it sir. Uh right. So so the export growth that we've also witnessed we've also had like about 200 odd growth in 44:40 44 minutes, 40 seconds the export business as well. uh sir was the bulk of the growth in the export business driven by uh the brand generics business or the CDM business again. 44:51 44 minutes, 51 seconds So see uh once uh as I submitted that further session set uh break up of 44:59 44 minutes, 59 seconds domestic uh export as well as CDM branches generics as of now uh we may not be able to comment on that. 45:07 45 minutes, 7 seconds Got it sir. Just one last question sir. 45:08 45 minutes, 8 seconds Uh so I just wanted to have an understanding of customer concentration in the export business for both the branded generics as well as the CDN business. Uh can you just give like a 45:17 45 minutes, 17 seconds correlative understanding of are we like dependent on very few customers for export business both in the brand as well as the CDMO business. 45:28 45 minutes, 28 seconds So uh once as far as our CDMO uh business is concerned uh our business is well uh diversified uh amongst major 45:36 45 minutes, 36 seconds pharmaceutical companies of India as well as globally and uh it is well diversified having not having an over 45:44 45 minutes, 44 seconds relent of any customer or any product and the at the same time uh the branded journey business as it is more spread out at a distributor stockish and 45:53 45 minutes, 53 seconds retailer level there is also not that much over reliant or dependency on any single to one customer or geography or a location. 46:01 46 minutes, 1 second Gotcha. And the same thing holds true specifically just for the export business as well. So we not heavily reliant on few uh customers for our 46:10 46 minutes, 10 seconds export business. Just the export business at a group level. Uh we are also well diversified there. 46:17 46 minutes, 17 seconds Good sir. Right. Thank you. So that's also my Thank you. 46:21 46 minutes, 21 seconds Thank you ladies and gentlemen. due to the time constraint. That was the last question for today. I know in the conference over to management for the closing remarks. 46:31 46 minutes, 31 seconds Thank you and over to you Tim. 46:34 46 minutes, 34 seconds Uh thank you everyone for joining us in this earning call. We appreciate your time and showing interest in our 46:41 46 minutes, 41 seconds company. In case of any queries, you can get in touch with our us or SGA, our investor relation advisor. We look 46:49 46 minutes, 49 seconds forward to meeting all of you over the next call. Thanks a lot. 46:54 46 minutes, 54 seconds Thank you so much sir. Ladies and gentlemen, on behalf of Inova Capital Limited, that concludes this conference.