Welcome to Advanced Enzyme Technologies Limited Q3 and 9M FY26 earnings conference call. Kindly stay connected, our operator will be with you shortly.

Welcome to Advanced Enzyme Technologies Limited Q3 and 9M FY26 earnings conference call. Kindly stay connected, our operator will be with you shortly.

Welcome to Advanced Enzyme Technologies Limited Q3 and 9M FY26 earnings conference call. Kindly stay connected, our operator will be with you shortly.

Welcome to Advanced Enzyme Technologies Limited Q3 and 9M FY26 earnings conference call. Kindly stay connected, our operator will be with you shortly.

Welcome to Advanced Enzyme Technologies Limited Q3 and 9M FY26 earnings conference call. Kindly stay connected, our operator will be with you shortly.

Welcome to Advanced Enzyme Technologies Limited Q3 and 9M FY26 earnings conference call. Kindly stay connected, our operator will be with you shortly.

Welcome to Advanced Enzyme Technologies Limited Q3 and 9M FY26 earnings conference call. Kindly stay connected, our operator will be with you shortly.

Welcome to Advanced Enzyme Technologies Limited Q3 and 9M FY26 earnings conference call. Kindly stay connected— Thank you for dialing.

Can I have a name and company name, please? Yes, sir.

Just a second, sir. David...

Your second name, sir? Yes, sir.

Your company name, sir? Yes, sir.

Your location, sir? Sir.

No... Sir.

Just say your company location, sir. Sir.

Thank you. Thank you, sir.

I'm transferring to the call, sir. Just be online.

[Healthcare?] segment, the revenue for quarter three financial year 26 stood at ₹962 million, making a 6% year-on-year decline and 21% on sequential basis, while growth of 12% is observed in nine months year-to-date basis.

This degrowth is on account of lower sales in the pharma API and nutrition business across both domestic and international markets. Human healthcare contributed 56% of our total revenue in the current quarter.

Next, we have animal healthcare: revenue rose to ₹241 million, delivering a 22% increase year-on-year, 25% on sequential basis and 26% on year-to-date basis. Animal healthcare accounts for 14% of the total revenue in the current quarter.

Turning to bioprocessing, this segment recorded 13% year-on-year growth during the quarter, 41% sequential growth and 15% year-to-date growth. This growth is primarily on account of robust performance of our food business.

The food business grew by 16% on year-on-year basis, 51% on quarter-on-quarter basis and 19% on year-to-date basis. The non-food business degrew by 5% on year-on-year basis, it grew by 3% on quarter-on-quarter basis, while there is marginal increase of 1% on year-to-date basis.

Lastly, the specialized manufacturing segment remained flat on year-on-year basis, while it degrew by 16% on sequential basis. On nine-month basis, it grew by 25%.

This segment represents 9% of our overall revenue in the current quarter. The quarter presented its share of headwinds, nevertheless, we remain steadfast in our strategy and confident in the opportunities ahead.

We anticipate that our strong growth trajectory will persist across all business segments in the foreseeable future. Moving forward, our primary priority is to enhance resilience throughout our operations, thereby ensuring effective adaptation to the dynamic market conditions and emerging challenges.

With this, I will now hand over the call to Rauka ji. He will walk you through the financial and key subsidiary numbers.

Over to you, Rauka ji.

Thank you very much, Mukund. Good evening, everyone.

I hope you all are in good health and doing well. On the company's consolidated financial for third quarter and year-to-date nine months of fiscal year 2026: First, I would like to give comparison on year-on-year basis, this is Q3 FY26.

Revenue is increased by ₹28 million from ₹1,691 million to ₹1,719 million, a 2% increase. EBITDA is lower by about 11% at 29% as compared to 33% in the corresponding quarter of last year, this is ₹494 million as compared to ₹553 million.

Profit before tax has increased by 10% from ₹530 million to ₹583 million. This is about 34% of our revenue.

Profit after tax is increased by ₹43 million from ₹389 million to ₹432 million, this is about 25% of our revenue as compared to 23% in the corresponding quarter of last year. On Q-on-Q basis, sequential basis, revenue is down by about 7% from ₹1,845 million to ₹1,719 million.

EBITDA is decreased by ₹107 million from ₹601 million to ₹494 million, about 29% of our revenue as compared to 33% in the last quarter. Profit before tax is decreased by about ₹13 million from ₹595 million to ₹583 million.

Profit after tax is decreased by about ₹15 million from ₹447 million to ₹432 million, this is about 25% of our revenue as mentioned earlier. For nine months of FY26 versus nine months of FY25, our revenue is increased by about 15% from ₹4,697 million to ₹5,424 million, this is about 15% growth.

EBITDA is increased by ₹170 million, 11% increase from ₹1,488 million to ₹1,658 million, this is about 31% of our revenue as compared to 32% in the last year. Profit before tax is increased by about 20% from ₹1,439 million to ₹1,727 million.

Profit after tax is increased by about ₹212 million from ₹1,072 million to ₹1,284 million, this is about 24% of our revenue as compared to 23% in last year nine months. Regarding our subsidiary numbers: JC Biotech, quarterly numbers is top line of ₹159 million with EBITDA of ₹7 million and PAT of negative ₹4 million as compared to ₹172 million of top line and ₹22 million of EBITDA and ₹7 million of PAT in the corresponding last year Q3.

For nine months, JC Biotech top line is ₹556 million as compared to ₹488 million, registering 14% increase. EBITDA is ₹77 million as compared to ₹66 million, 17% increase.

PAT is ₹27 million as compared to ₹19 million, 39% increase. Evox, revenue stood at ₹87 million and EBITDA of ₹22 million and PAT of ₹15 million for Q3 of this year as compared to ₹64 million, ₹12 million and ₹4 million, respectively, of revenue, EBITDA and PAT.

For nine months, Evox revenue stood at ₹231 million as compared to ₹160 million, registering a 44% of increase, and EBITDA is increased from negative ₹8 million to ₹53 million in nine months, and PAT is ₹36 million as compared to negative ₹30 million. Our healthcare bifurcation: Our India sales stood at ₹481 million as compared to ₹460 million in corresponding quarter of last year.

International sales stood at ₹482 million as compared to ₹559 million. Our B2C sales stood at ₹91 million as compared to ₹103 million in the Q3 of the last year.

SciTech top line stood at ₹159 million and EBITDA of ₹28 million, PAT of ₹7 million as compared to ₹154 million of top line and ₹30 million of EBITDA and ₹20 million of profit. Nine months is ₹489 million as compared to ₹386 million.

EBITDA is ₹65 million as compared to ₹66 million, PAT is ₹15 million as compared to ₹32 million for nine months. Our largest product, which is anti-inflammatory enzyme, this is about 21% of our revenue as compared to 20% last year.

For nine months, it is 22% as compared to 19% last year. Top 10 customer is about 26% for this quarter as compared to 26% in Q3 of last year, and for nine months it is 23% as compared to 36% last year.

B2C sales numbers stood at ₹104 million as compared to ₹123 million in the last year quarter, corresponding quarter. R&D expenditure on standalone basis for Q3: revenue is ₹77 million and capex is ₹3 million, total is about ₹80 million, this is comparable to the earlier quarters.

Total ₹246 million we have spent so far in nine months. R&D expenditure as percentage of our revenue on consolidated basis, it is about 4.7% as compared to 4.9%.

Here, this is without considering the intercompany eliminations. On consolidated basis, R&D spend after considering the elimination, it is about 3.2% as compared to 3.3% in Q3 of FY25.

For nine months, it is 3.2% as compared to 3.7% in nine months of last year. That was from my side.

Now we shall open the floor for question-and-answer session.

Hi, sir. Am I audible?

Yes, Umang Shah.

Hi. Thank you for the opportunity.

Sir, first question was if you could break down the human nutrition revenue between India and international?

Yes. I'm giving you for nine months number, okay?

Okay.

India is 1,710. I am talking in millions: 1,710 million for nine months.

For international market, 1,686 million. Total is 3,396 million for nine months.

Got it. Sir, and second question was if you could speak about the decline in human nutrition segment.

You alluded to the fact that it was between both pharma and nutraceuticals. Even the numbers represent that.

Can you just help us understand, especially in nutraceutical business in US, what led to the decline?

Umang Shah. Umang.

Go ahead, sir.

What is going on in US. The overall, the market is very uncertain in US.

When there is a complete uncertainty in nutritional market, everybody is paying a heavy duty, no matter where the product is coming from, in the human nutrition market. Long-term strategies, short-term strategies are difficult to developed during this kind of uncertain markets.

Second part is the cost which is coming out from the China on all the raw materials for packaging, shipping, etc., is going up, and industry is trying to pass on that cost a little bit at a time. You can see that there is a slowing down, not because only on the nutritional side also, but the market-wise, it is affecting consumers very very heavily in the food segment, in pharma segment, everywhere.

The overall, there is a tremendous uncertainty in the marketplace, and in that particular place, people try to hold on to placing any new orders. Does that make sense to you?

Got it, sir. Very useful.

Sir, and second question was what is the competitive intensity in our largest product in India? Is it normalizing compared to last year, or is it still quite high?

Umang ji, you can see the numbers, and if you see the numbers, probably we are growing, right? I don't see there is any problem, the competencies or any other area into that particular.

Got it, sir. Sir, and last question was at the end of the last year you had mentioned that we want to have a business in intermediates also.

It's been nine months of this year have been done. Any headway in this business?

We are still working on that, and probably when the right time will come, we will come out of it. Okay?

We will [unclear]. Like that, the plans are going well,

okay? Hopefully the market conditions will help us establish the foothold.

Okay. Great, sir.

Thank you so much, sir. I'll get back in the queue.

Thank you, Umang.

Thank you.

Hi. Thank you.

My questions are not about this quarter or nine months, but slightly medium to long-term. First one is how are you monitoring potential disruptive technologies or new entrants in the enzyme space, and what steps are you taking to ensure Advanced Enzyme is not kind of blindsided by them?

Very very interesting question, and thank you for asking that. Listen, there is a technologies which are coming in or the new entrants coming into the marketplace, there are certain segments in the human nutrition where people are more concerned with.

We are addressing that through our lot of research of new products, new areas. It takes little time to develop this new enzymes per se because it has to go through lot of regulatory approvals, etc.

We are already, if you will see, that we are very much on top of it, publishing our papers. We are also trying to get technical backgrounds and support systems because people nowadays don't like just an ingredient per se.

They want research data supporting it, and which too also with the peer-reviewed papers. That's how we are trying to attack that market, to make sure that we keep our lead continuously into this market.

No, that's helpful. Thank you, and— Uh-huh.

Yeah. That's helpful.

That's helpful. Yes, I agree it takes time to to commercialize a new discovery, taking all, it's a time-consuming, nothing works overnight in this industry, completely appreciate that.

My my second question is how do you decide when to, invest in incremental improvements to existing products versus pioneering entirely new enzyme solutions that might initially serve only a smaller or a less profitable markets, but, that may potentially lead into longer-term opportunities? Basically, the question is how do you decide when to sort of, become more cost-efficient because of competitive pressures or or otherwise in your existing products versus what R&D dollar or how to invest that incremental money into something novel, discovering it and then commercializing it?

What is this sort of mindset?

Mindset is basically you go to the marketplace where you have a better profit margins to begin with, and then expanding into the markets where there is margin pressure, but the volume gives us a cost-competitive advantage into our manufacture because of the volume.

Yeah. Do you keep separate teams for novel innovations, something which is getting discovered, versus incremental improvements, or are these same teams?

No, the teams you have to separate them and get most of the cost efficiencies, because nowadays travel is very expensive, as okay? Besides, AI is coming into picture, a lot of people are self-educated per se, quote, unquote.

It is always very interesting market dynamics where people throw the questions from AI, wanted to know all the answers kind of thing. This is a technical field a little bit, you have to explain it in the marketplace to make them understand why it is different, it is not the same thing.

No, sure. My question was, is it a single R&D center, because we've got multiple R&D centers, how do we position them for new innovation versus improvements?

No, there is single R&D centers.

R&D center is a single, but they are subdivided into different departments, functional divides. Okay?

There are different people taking care of different areas.

Understood. Okay.

That's helpful. Thank you so much for all the responses.

Thank you and all the very best.

You're welcome. Thank you.

Hi. Good afternoon.

I had just had one question. From my understanding, the sales in the Evox subsidiary just go to Europe.

Would that be the right understanding?

Yes, it is the right understanding.

Yes.

Okay. Based on that, if I look at ex of the Evox, pretty much our sales have dropped.

I'm just looking at the last quarters, we were doing around ₹4 crore if I just subtract the Europe sales from the Evox sales from the Europe sales. Besides the Evox, we've pretty much not done anything in this quarter.

Could you comment on what happened, why we've lost sales over there in Europe?

Shreyans, I think quarterly comparison, as we have already been mentioning, is not possible in our case.

People don't buy quarter-to-quarter and—

It all depends on customers, their own procurement schedules.

Okay. Because I see pretty much we're averaging last four quarters we're doing ₹4 crore, and now it's less than ₹1 crore, ₹90 lakh besides the Evox sales.

I'm— [Aisa nahi hoga yaar,

Europe ka sales jyada hai, but anyway we can talk.]

No. We will speak out.

I will give you exact number. I don't know how you have subtracted.

Okay. I will take that offline.

That's okay. That's all from my end.

Yeah.

Thank you.

We will talk to you.

For the opportunity. Am I audible?

look at your sales for the USA—

Am I audible now? Is this better?

I was talking about the US sales. There's been some weakness in the US sales of recent.

I think in one of the earlier calls you had alluded to the fact that this is relating to the tariffs. Now given the current favorable kind of trade deal that we have that was announced a couple of days back, what is the outlook for the sales in the US given it is our largest market, both in terms of recovering sales and then from here on growing henceforth forward?

If you can help us with how you plan to go ahead there with regards to new products, new customers, new segments, anything on that, please?

Tariff is a tariff, 18%, 25% or 50%. Do you think anybody is willing to pay you 50% higher prices in the retail marketplace?

It's impossible. You will lose your entire sales.

It's a various strategies that we don't lose customers, at the same time impact on the margins are not heavily affected. Most of the things, if you will see, that US companies will pass on some of the cost increases to the customers during this 2026.

There is a competition also which you have to keep in mind, whether competitors are ready to increase the prices or not. You have to be competitive in the marketplace what others are doing.

There are several factors comes into picture. This is something only thing it makes sense right now is yesterday's news will help us little bit better in sense of how to normalize and be reasonable.

We need to

our customers are profitable— I understand your point, but given that historically for us actually if you look at our numbers for FY25, those were also weak, and now after that FY26, as you said, tariff is understandable. Going forward, after the fact that the tariff has come down to 18% now, how do you see US as a market going ahead for us?

It will not have much of a difference for the market sale. We will see how the overall market is taking the tariff, whether it is 15%, 20%, 18%.

They will reflect in the marketplace and overall economy of the US. If the US economy remains strong with the employment, market will be good.

We see reasonably it should grow.

Okay. Do you think any efforts are needed with respect to setting up a local base or getting sales and marketing personal there, to further push for better growth there?

We always are looking for a better growth, right? Now we'll do our best.

It has not been really reflecting in the numbers,

hence the little bit of pushback on that, sir.

Sorry?

It has not been really reflecting in the numbers, and hence as investor, I think there was a slight bit of pushback on this matter. Going ahead, things will be better, as you said, rightly said.

Yeah.

No, no. We see a much better outlook.

What we are looking at is a lot more inquiries, a lot more interest. That will reflect in next years.

Okay. Because, sir, given US has such a large impact on our margins, if sales from there were to go down as they have been in the past, it would again affect our margins going ahead.

I think given all of this, it holds pretty much high importance, especially this large market for us.

Absolutely, absolutely. We are very mindful of that.

All right. Thank you, sir.

Hi. Thanks for the opportunity.

Couple of questions from my side. First, on the upcoming R&D center that was supposed to come in Nashik, I think somewhere during this particular year, is it possible to share what area you will be targeting to begin with, because it was mentioned that it'll be a far bigger setup as compared to what we have right now?

Any particular area and where you will see the benefits coming in, maybe not immediately, but over next couple of years from that perspective?

Abhishek ji, to begin with, we'll be targeting mostly on the strain development, protein engineering and on the fermentation side. That will be the first phase.

Sure. The reason why I'm asking this question is we have serratiopeptidase as our largest product, but you get this question a lot that which product can become a next serratiopeptidase for us.

Something similar can happen out of this R&D efforts that you are intending to do?

Yes, Abhishek ji. There are many other products which we are working out there, and probably the space will fasten up once this becomes live.

Okay. This will be largely targeted again for the exports only, right, broadly?

Sorry, the timing of this commissioning of this facility is when? Sorry, I missed out on that part.

Somewhere around the end of the second quarter of this coming year.

End of second quarter, perfect. Next question on capex.

We have maintained the capacity utilization at around 55%, 60%. I'm sure that considering since we have not done a large capex over last few years, the capacity utilization must have inched up.

Any plans of capex, be it greenfield or brownfield expansion, in next one or two years?

As we always mentioned, whenever we feel like it will be necessary, we'll do it. Of course, the cost will be very low.

Maybe I guess in the financial year 28-29, probably. Sorry, 26-27, 27-28, yeah, 28-29 mostly.

The cost will be about ₹50 crore at that point.

Okay. Nothing in this particular year, right?

Not this year except for the R&D capex, whatever we will need for the R&D center.

Okay. The serratio capacity, because this quarter was maybe kind of muted, but in nine months the growth has been very strong.

How are we placed in terms of capacity utilization for serratiopeptidase? The JC Biotech plus our capacity is sufficient for, let's say, a couple of more years, or—

I think our capacities are good enough as of now. We are well-placed.

Sure. Sure.

Sure. Sure.

Done, sir. That's it from my side.

Thank you and all the best.

Thank you, Abhishek ji.

Hi. Thank you for the opportunity.

My query is with respect to the EU region. In the last few years, if I take from 2021 onwards, we've had approvals wherein initially we had some four product approvals, and now we are standing at nine product approvals for the EU region.

In these years from '21 to '25, our revenue has not increased significantly. It's about ₹32-33 crore in that zone.

Could you tell us what are we selling essentially in European Union, and why, in spite of having so many product approvals, our revenues are not growing in that region?

Our major target is a food segment in the European region, and that is what we are doing it. If you ask me, if you don't have these regulations, probably our sales would have been zero, because you can't sell without this product being registered.

Assuming that since it's get registered, you will have a significance revenue, is not true. We are doing our best, we are trying to expand the market wherever it is possible, and I guess we are still growing.

This year also we grew into the European area, not degrew or something of that.

No, sorry. I was referring to from financial year 2021 till 2025, not just this nine months or last one year or so.

I was talking about the last four odd years, four-five years. Because if you see the numbers, ₹32 crore is what we had in—

I think in Europe, we have changed slightly the business model of our European company. They were having some contract research, external contract research, then internal for us, and then some product sales.

Because of that realignment also, I think now the product sales was slightly down in couple of years, and now we are looking into that aspect and seeing that some kind of revenue we are going to get from that product sale business as well, which has been developed in India, and then European company will take care of that. That process is on.

Yes, and slightly the numbers, as you rightly said, is a kind of range-bound so far.

Okay. Okay.

Appreciate that response. The other question that I have is I believe the one novel ingredient application that we have in Europe is again related to serratiopeptidase.

Now once we have that approval, and assuming that probably it takes maybe a couple of years for us to kind of ramp up the sale of this novel ingredient in the European region, is it likely that this product will continue to be the top revenue generator for us?

Listen, if you know very well, you are aware, most of healthcare issues are inflammatory related, right? We have to make sure that awareness is there, people find that products are working very well for them.

It's a marketing efforts, product establishment, brand establishment, etc. We are sure that it will grow.

Okay. Okay.

Thank you so much. That's all.

That were my questions. Thank you so much and wish you all the best.

Thank you.

Hi. Thanks for taking my question.

Sir, a couple of things. One is I think over the last few years, there has been a lot of discussion on US business and India business, but outside of these two, the other geographies have actually done relatively better.

We see sustained growth from these geographies. Can you just spend some time and help us understand what are the areas which are helping us with this growth, and also whether these are sustainable numbers, and whether we can build upon this over a period of time?

If you could just share some insights on this, that was question number one. Second question was we had created a 100% owned subsidiary to transfer our B2C business, and we had some thoughts on how to kind of getting to or expand our B2C business significantly in India.

If you could just share some update on that?

When we talk about it, we did a lot of registration in Asia and other countries. If you really look into the rest of the world and Asia, those are the two markets which are giving us some results.

The work which we did in the last two, three, four years, they are yielding some results right now, and we can see that there are certain growth in the Asia as well as in the rest of the world area. Now coming to your next question on the—

Nutrazyme.

On Nutrazyme, we did separated this entity, and now the team is there, which is a focus team which is working onto this area particularly. As of now, the way we see it, this year it will be a small sale, somewhere around ₹1-1.5 crore probably at the end of the year.

We are constantly focusing on that. The team is young and dynamic, and we will see the results in coming two-three years.

Do we have significant product pipeline which you could probably share with investors as to what kind of products are we looking at? Historically—

You can go to the Wellfa website if you want to. We do have a 10-12, somewhere around basket of 10-12 products out there, and you can look into those products at the Wellfa.

We have a Wellfa brand. You can go and take a look at it.

Not only take a look at the brand, I suggest you buy some and try it yourself.

Yes, yes. We'll do most certainly, sir.

I think we had mentioned in the past that we historically have been a B2B company and not necessarily a B2C company. Any ideas, just because B2C is a very very different animal altogether, right, in terms of marketing, ad spend, is there any plan to kind of do some JV with some other company or do it ourselves or Because if the products are there and if they're good and we are doing it for other people for white labeling point of view, there could be an opportunity for us to kind of scale that business.

Thank you for suggesting and confirming what we think in the same manner. With both of them are thinking alike on that matter.

We will do all of that, whatever you said, is grow our brands, align with few other B2C company people and integrate and expand. That is a totally different beast than B2B.

We have to think in the different way, and we'll take all the expertise necessary in that particular market. That's why we are separating the company under the Nutrazyme.

Okay. Sir, in the past, we have kind of briefly touched upon industrial enzymes, but if you could kind of spare some time and help us understand in the sense what areas in industrial enzymes do we actually do and or we intend to kind of add to our portfolio, because that seems to be a very interesting space where, given all the investments that are happening in India either from green ammonia point of view or rare earth minerals point of view or a whole variety of other things that are getting manufactured, and each time we kind of read some literature, what we come across is there are a lot of industrial enzymes which get used.

Is there anything that we do in any of these spaces or intend to get into any of these spaces, just a broad-brush idea if you could give?

We are intended to get into those spaces on the growing marketplace. Our new R&D center will really help us into that, because ultimately in all industrial segment, there is a performance which really counts right there and then and there.

They don't wait. It's two areas which we have to show immediately of a performance and cost-effectiveness, and it requires lot of work and proving that our enzymes are better than what they are using or not using at this point in time.

Do we have products, or—

No, we have products. The thing is you need a lot of R&D also for to support.

Right. Okay?

That is what our new center will give us space and area to develop new applications.

All right. All right.

I'll get back in the queue. Thank you.

Hi, sir. Thank you for taking my questions again.

Sir, since Vasant ji is also on the call, just wanted to hear from him in terms of over next two-three years, in which areas of enzymes do we see the most opportunity, and will Advanced Enzyme be able to take part in it? Umang,

thank you for calling. See, we have to stick with a lot of these areas which we are already servicing, but we will also expand into few other market areas in the same market.

See, there are two geographical marketplace and different application marketplace. Okay?

Still our healthcare will be always a top area for us, but we are also going into biochemical processing and various other areas where the margins are not necessarily very high, but at the same time opportunities are enormous. We are looking at both different areas where we can expand and utilize our capacities very efficiently, at the same time grow our marketplace.

That's where the whole concentration of the management is at this time.

Great, sir. Great, sir.

Thank you so much. Sir, now in the budget, buybacks have become better in terms of the tax implications.

Would really suggest if now where the stock price are, if we can consider a buyback of equity shares, that also helps in increasing the promoter holding, and also helps long-term shareholders increase their stake without any friction. Just if that's something you could consider.

Last thing was if I heard it right, there was a loss in JC Biotech. Is that the right understanding?

That is right this quarter, yes. This quarter, yes, but you don't look at it quarter-on-quarter.

Okay. Okay.

Was it an operational loss or a one-time loss, because EBITDA margin was positive, but— There were

some major, what you can call it, stores and— Spares, yes. Stores and spare consumption for this quarter, which comes annually sometimes.

Okay. Is it one-time, or does it happen once every year?

It is

once in a year.

Once in a year or twice in two years once or some that kind of thing. This quarter again there was some lower sale, but again if you don't look at it quarter-on-quarter.

Okay. Okay.

Really great. Thank you so much, sir.

Hello. Am I audible?

Yes.

I just had one question. In the earlier response, you mentioned that going forward you're seeing a much better outlook and a lot more inquiries and interest.

Could you specify in which segment are we seeing all of these inquiries coming in?

We are only in the two places, now, enzymes and probiotics. Most of it is, for example, our marketplace is a very different and dynamic marketplace.

In US, you are talking about US market, right?

In general, you specified that we'll be seeing a better outlook going forward, are these inquiries more of,

yeah, specifically for US market, right? More inquiries into US marketplaces.

Okay? In general—

You meant specifically the US market, right?

Correct. You are correct.

The

was referred more to the US market, but there are always inquiries in Indian market as well or this area as well, right.

Yeah. Overall it is a bigger market.

Got it. Thank you.

Just next question was on the specialized manufacturing segment. We saw a good growth in the last four-five quarters, and this quarter was relatively flat.

Just going forward, how do we see this segment turning out?

Again, don't look at it quarter-on-quarter. There are always sometimes the payment issues or other issues, and sometimes the sales reversals are there.

Don't look at it quarter-on-quarter, look at it just nine-month and it's good, and I think it's continue to grow.

Yes. Going forward, are we adding new products in this segment, as we had acquired this earlier?

How is it going on? Can we just get some color on it, are we adding new products, are we getting good traction?

This is basically effervescent-based technology company, they do work for various clients. They are doing for, say, nutraceutical segment, and of course for animal division also.

We are doing a lot of work for overseas company as well as now we are expanding our footprint in India. Basically it is tablets or sachet, this is effervescent-based.

We are now looking into how do we market this product into whether we can go for even in textile segment, can we have some product like that which can be used? Even disinfectants can be used, and cosmetic also there is a scope.

We are working on various things, but yes, it is a process which is taking it's on time, and we are working with a couple of good clients, companies, on different areas in this particular company.

Okay. Just one clarification.

Currently, as you mentioned, this business is not yet penetrated in India, we don't have a lot of clients in India as of now, right? Is it mostly more of concentrated in US or it's spread out geographically?

It's a combination of both, and there are a lot of different projects which are going on with different companies in India as well as in abroad.

Okay? Got it.

Thank you.

Hi, team. Two questions and two parts to them.

The first one being on the US subsidiary. Sir, by when do you anticipate that the volume will start picking up from there, because, as you mentioned, the inquiries have already started flowing, and we also see that World Nutrition Inc versus Advanced Supplementary, that case is also solved.

By when do you expect that higher sales or if I read well, the margins tend to increase if sales are higher from US? [laughter]

It's a good question. I think it should reflect things changing into this year.

Okay?

Sir, on the— Uh-huh. Sir, on the R&D side, there were some products which were just about to be launched in March, are we on track for that, or will we see some delay, maybe spillover into June or September?

Do you have specific on the product which you're talking about?

No, sir. It was mentioned in the previous concall, but then there were no specifics as such, but it was said that it will be launched in March, probably.

It's a constant process, Rohit ji. I don't know which product we are referring to at this point of time.

We have several products in the pipeline. It's again depends on the market response.

You go into the market, you come back, you again do the some kind of thing if it requires. If it is good, it just goes.

It's constant process, Rohit ji. Mm-hmm.

Okay.

In short, listen, there is not simple thing to concentrate on one product. We have multiple products in pipeline which we are working on, and let me tell you that not every quarter we are going to review and says what happens on that particular one.

Several products are there, and there are some products get hit very quickly, some products take little longer time, some will have delays because you have to go into pilot scale, then people are just not going to jump on it, they go slow process, sometimes somebody is very fast, depends on the market pull. Believe me that all of these are under continuous review, and push is very big and trying to get some products which get bigger heat, so that our revenue generations can be there ASAP.

Okay.

Sir, the Union Budget, it was speaking quite a lot about fillip to the toll manufacturing, while the FM was also trying to attract some global businesses and some investments thereof, while she also mentioned about some impetus for Biopharma Shakti or maybe biologic mediums. Do you think that these developments can get some volumes as well as value for us?

The chances is very high, provided if we get some kind of a relief from this government regulations and bureaucratic messes. Government talks very very big, and they are respect you, but, as we all know, there is so many rules and regulations.

Lot of companies are greatly interested, and we are very much interested in working with them.

Because Rathi ji— Yes, Kabra ji, boliye. [Nahi

main to ye bata raha tha ki ye budget ka abhi tak aur bhi samajhna bahut baki hai abhi tak, jo fine lines padhna aur ye bolna bahut aasan hai, and there are lot of things which were coming with a new institutes and other things, what I understand, but we need to go through the fine lines and understand it more deeply.]

Because, Kabra ji, in one of the concalls recently, you mentioned that we were working on some contract manufacturing and some developments thereof. Even if you look slightly into the fine print, they are giving some tax benefits, which Rathi ji just mentioned about.

Any developments is the only thing that I'm asking. We still need to evaluate the impact of it on the budget and other things, right?

We are working on some of the areas, but let's see. We still need to understand the budget, honestly.

[laughter]

Okay, Kabra ji. That makes a lot of sense.

Thank you. Thank you for answering my questions.

Thanks a lot. Thank you, Rohit.

Quickly for Mr. Rathi, thank you for being on the call today, sir.

From a three to five-year perspective, you say medium to long-term perspective, where do you see our company progressing towards? What do you think is really needed to get there?

R&D obviously is a huge and strong pillar for us, but apart from R&D, I think what else do you think is required for us to take us to that position there in three to five years?

As we said before also, same thing, I don't think we are changing our tune anywhere. We will grow 13% to 15% double digit, more than double-digit growth overall on a continuous basis on three to five years.

There are a lot of hurdles will come in the places, and there will be some sailings, but overall we are very comfortable with our thinking on and accordingly sometimes we can hit a very big way. The growth may increase rapidly, but overall 13% to 15% is very comfortable for us.

Understood, sir. No, because from a historical perspective, last couple of years have been slightly weak.

This year nine-month obviously, to give credit where due, we have done well. As I said, the last few years, the last two, three, four years odd have been weak.

Given that context, I was asking do we require any changes in any particular functions per se, be it sales, marketing, manufacturing, operations, anywhere else? Does anything have to change, and if yes, what would that be?

[laughter] Well, we are we are we are addressing to those. That is what you are looking at overall nine-year nine months performance also, and we will we'll see that we will continue to meet your expectations.

The only thing what I would like to add out here, the ride will be roller coaster. It will not be the straightforward graph of this.

Some years we will grow faster and some years we might grow little slow.

That is understandable, sir. A small bookkeeping question.

On margins, what was earlier communicated was that tariffs would have a 200 bps odd impact on margins. Now with tariffs kind of moderating, how's the margins trend going ahead from here?

Almost nine months is gone, I think another three months we have to see the impact. It is most likely instead of 2% on EBITDA, I think it will be around 1% or so.

It's a worst-case scenario. We are also trying to pass on, as earlier sir has mentioned, some of the cost to the customers in US.

We'll see what will be the last impact, but this is the worst-case scenario.

Understood, sir. Thanks a lot and wishing you all the very best.

Thank you.

Hi, listen to the previous participants talking to you about the buyback, which you did not answer. Also feel that the current market cap of your company kind of is at a lower level.

Maybe you can think of. Is there is any view on that?

Sorry, your question is not clear. Can you please repeat?

No, I am talking about the buyback. Even the previous participant also asked you about that, you did not answer.

Since the valuation is so attractive, maybe do you have any plans? The taxation of the buyback also in the recent budget become little attractive.

No, we appreciate your question and your guidance, but there are many things which you know very well, this is a prerogative of the board, right? It cannot be answered as such.

Okay.

Okay. Thank you, sir.

Thank you for the opportunity again. Sir, my question is with regards to slide number 25 of your presentation.

There is one segment within human nutrition, biocatalysis. If I see the revenues in FY24 and FY25, we've kind of gone down from $3.3 million to $2.1 million.

Now, my question is with respect to the biocatalysis, could you explain what are we doing right now, and maybe in the next three to four years or five years, where do we go ourselves going ahead in this segment of biocatalysis?

Biocatalysis business? What are we doing in biocatalysis, right?

That is the question. It's gone down, no, from— Dollar terms.

Dollar terms, right. We are working on the biocatalyst areas, that's what I can say.

A lot of things are there on the pipeline, there might be something here and there, and we still need to understand that. The growth prospects are very good into this area, Ketan ji.

Because even in some of the previous calls, you've mentioned that there are some products under trial with some customers. Is there any update of those trials of those products?

Or if there is some kind of a outlook in terms of timeline, how long there will be some outcome of those trials, be it one year, two years, something like that?

Maybe I would like to say that probably we will have to wait till the first quarter of the next financial year.

Okay. Okay.

Thank you so much. Wish you all the best.

Thank you. I think Shreyans Gathani has asked one question.

Shreyans, probably you were reducing the Evox number directly from the European numbers whatever we have shared with you. The number which we have shared is net of our intercompany transaction.

You have to look from that angle. Our Europe, I think revenue number was about ₹96 million during this quarter as compared to ₹105 [million?]

in Q3 of last year and ₹116 [million?] for Q2 of this year.

Thank you, everyone, for taking your valuable time for attending our earnings conference call. We will keep you all posted for any further updates.

I request you all to kindly send in your questions that may remain unanswered. An audio recording and the transcript of this call will be uploaded on our website and on stock exchanges in due course.

Looking forward to host you all in the next quarter. Till then, stay healthy, stay safe.

Thank you. Thank you, everyone.

Bye-bye.