Thank you and good afternoon, everyone. I welcome you all to the 3Q and 9M FY26 earnings conference call of Concord Biotech Limited.

We thank the management of Concord Biotech for providing us with the opportunity to host this earnings call. From the company today, we have Mr.

Ankur Vaid, Joint Managing Director and CEO, Mr. Raviraj Karia, CFO, and Mr.

Prakash Sanznani, AVP Accounts and Finance. I would now like to invite Mr.

Ankur Vaid to give his opening remarks. Over to you, sir.

Thank you. Good afternoon, ladies and gentlemen.

We delivered a steady performance during the quarter, reporting revenues of ₹278 crores representing 14% year-on-year growth. For the nine-month period, revenues declined by 5% primarily due to challenges in H1 arising from uncertainty on global trade due to US tariff dynamics, delay in written confirmation from COFEPRIS, and the deferral on tender-based supplies in Middle East market.

Importantly, these headwinds were largely timing-related rather than structural. Let me give an update on how these situations are evolving now.

We have also started with Stelis Biopharma, our US subsidiary to drive marketing. Uncertainties around tariffs and global trade dynamics temporarily disrupted customer procurement patterns and delayed second-source opportunities as customers waited for greater geopolitical stability before making firm decisions.

However, following clarifications that tariffs do not apply to generic products, order momentum began to recover. Now with the US trade deal taking shape, we are seeing increased engagement and more advanced discussions around larger second-source supply opportunities and CDMO partnerships.

Written confirmation approval delay from COFEPRIS, which did not allow us to sell in the European market for a couple of months, was received in early November, which has resumed the supplies back to normal. However, the ramp-up will happen in gradual manner.

Last being deferment of tender-based supplies to Middle East market was kept on hold on account of geopolitical tensions. This is currently status quo, and we are monitoring it closely.

Having said that, we will be the preferred supplier to them, and once this is resumed, we will be able to recoup the revenues from this tender. We have also seen India-EFTA Trade Agreement announced earlier this year, and we view this as a positive long-term development.

This agreement enhances access to one of the world's largest and most regulated healthcare markets, and strengthens India's position as a global manufacturing hub. Given our established presence in the EFTA market, we see this as a strategic opportunity over the medium to long term.

Also, we would like to mention the Union Budget, which is broadly supportive of the sector. Of particular relevance is the Bio-Pharma Shakti initiative, a ₹100 billion five-year program aimed at strengthening India's biopharmaceutical ecosystem.

Its emphasis on R&D, talent development, manufacturing capabilities, and faster regulatory approval aligns with our fermentation API expertise and supports long-term visibility. While spillovers from earlier disruptions are expected to materialize gradually, with all positive developments across the industry, we believe that Q4 will be stronger.

This is also reflected in our Q3 performance where revenues grew by 14% on a year-on-year basis. Speaking about key highlights for the quarter, our injectable facility has received WHO GMP certification, which will enable us to sell in the domestic market via our own brand and contract manufacturing opportunities.

Our initial focus remains on the domestic market with plans to expand into emerging markets following the necessary regulatory approvals. We have taken meaningful steps towards building this as a long-term growth platform for the company.

The facility has a peak revenue potential of approximately ₹600 crores. We have incorporated Concord Lifegen Limited, a wholly owned subsidiary, to further strengthen our marketing, sales, and distribution capabilities in India.

We have also started with Stelis Biopharma, our US subsidiary, to drive marketing, distribution, and commercialization of our products in the US, creating a direct commercial footprint and supporting global market expansion. From pipeline perspective, we have completed DMF for Nystatin and Voclosporin last year.

During the current year, as previously communicated, we plan to launch two new products primarily in the anti-infective segment, which offers large volumes, niche positioning, and limited competition. Moving on to margins, profitability during the nine-month period was impacted on account of startup costs associated with the commercialization of our injectable facility.

That said, our core API and formulations business continues to operate with stable unit economics. Excluding injectables-related startup cost and cost associated with our US subsidiary, EBITDA margins remain in the range of 40% for Q3 and 9M FY26.

As injectable business scales up over the coming quarters, we expect this temporary margin impact to gradually normalize. Moving to segmental performance, in Q3 FY26, API revenues were at ₹219 crores representing growth of 24% on a year-on-year basis.

These figures exclude interunit sales to our formulation business. On the formulations front, revenues stood at ₹58 crores compared to ₹68 crores in Q3 FY25.

On the leadership front, we are pleased to welcome Mr. Raviraj Karia as our Chief Financial Officer.

He brings over two decades of experience in the pharmaceutical and healthcare sector, and his experience will further strengthen our leadership team. In summary, during Q3, we witnessed a gradual improvement in volumes despite it being a seasonally softer quarter due to holiday period and year-end closure in our key regulated markets.

We are entering Q4 with greater optimism and a stronger growth momentum. While FY26 is expected to remain below our historical averages, primarily due to the challenges encountered in the first half, we anticipate that FY27 and beyond will reflect a normalization in performance and regaining back the momentum, at least to our historical averages.

Over the medium to long term, Concord remains well-positioned to deliver sustained growth through injectables, CDMO, new product launches, and continued market share gains. With strong regulatory credentials, differentiated manufacturing capabilities, disciplined capital allocation, and expanding growth engines, we remain confident in our long-term strategy.

With this, I hand over the call to Raviraj Karia, our CFO, for financial and operational performance. Thank you.

Thank you, Ankur, and good afternoon, ladies and gentlemen. First, I would like to express my gratitude to the Concord Board and the management team for welcoming me into the Concord Biotech family.

I'm truly excited to join the organization at such a pivotal time. With a strong foundation and clear vision for growth, I look forward to closely working with the leadership team to strengthen the financial discipline, enhance the transparency, support the strategic initiatives that will drive the growth, long-term value for the stakeholders.

Let me take you to the financials and operational performance for the quarter. On a revenue front, our revenues for the quarter three financial year '26 stood at ₹278 crores as compared to ₹244 crores in the same period last year, witnessing a growth of 14%.

Our revenues for nine months financial year '26 stood at ₹729 crores as compared to ₹770 crores in the same period last year, with a de-growth of 5%. Revenue from API business stood at ₹219 crores in this quarter against ₹177 crores during the same period last year, with a growth of 24%.

Revenue in nine nine months financial year '26 for the formulation business formulation business in this quarter has stood at ₹58 crores as compared to ₹68 crores in the same period last year. Formulation revenues for nine months financial year '26 stood at ₹164 crores.

Revenue from our domestic and export business grew collectively by 14% in quarter three versus last year quarter. Now speaking on the EBITDA, EBITDA for this quarter stood at ₹99 crores as compared to ₹98 crores in the same period last year.

EBITDA for nine months '26 stood at ₹249 crores. EBITDA margin for this quarter stood at 35.6%.

EBITDA margins were largely impacted on account of expenses related to the commercialization of new injectable facilities and also on account of expenses related to the setting up of subsidiaries in the US market. Excluding these impacts, EBITDA margin for quarter three and nine months financial year '26 stood at 40%.

On profit after tax, our profit after tax for this quarter stood at ₹64 crores as compared to ₹76 crores in the same period last year. Profit after tax was impacted on account of impact of new labor codes, the extent of ₹3 crores, and also there was a higher other income of ₹15 crores in quarter three '25 compared to ₹10 crores in the quarter three this year.

If we exclude these impacts, there would have been a higher growth in profit after tax numbers compared to what was seen. We are a zero-debt company with investments, bank balance, and cash and cash equivalents to the tune of ₹1,263 crores as on December 31st, 2025.

With this, I shall now leave the floor open for the questions and answers.

Hi. Thank you for the opportunity and congratulations, Raviraj, for joining Concord Board.

My first question, Ankur, is on the growth which you have mentioned that FY26 will not be grow as per the historical trends which we have been growing. On beyond FY26, how do you see business momentum going on and how confident you are the external factors which we have faced this year in particular would not be, what gives you the confidence that we will be back toward normal growth?

That's one. Second on the labor code, which we have kind of provided a provision of ₹3-odd crores, that is on a retrospective basis we have taken the provision.

If you can provide going forward, how should one look at on a recurring basis the impact of new labor code to our finances? These are the two, and I'll jump back in queue.

Sure. Let me first talk about in terms of the growth.

Historically, if you see, we have grown at around 18% or so. During our previous many interactions, what we have said is that the way that we look at growth over the next few years is that we, while the injectables can do a much larger business, but we have considered half of the business over the next three to five years, which contribute to around 6% growth.

Then we had also considered growth coming in from the CDMO because of enough capacities available and considering that how globally India is becoming more favorable for fermentation compared to, say, Europe or China. There was a 6% growth that we had kind of taken it over a medium-term period.

If you put together your baseline growth of 18 and the 6% from injectables and that of CDMO, you reach to 30%. In our previous discussions, we've also said that there could be years where you would see these kind of challenging environment, because of which we kind of toned it down to, say, a CAGR of 25% once these two growth drivers start kicking in at full capacity.

Till that time, you would see gradual movement going from the 18% to the 25% CAGR. Now with the introduction of new products across the fermentation and us taking different initiatives across formulations and gaining more market share because in the last three to four months, we've also gained significant accounts business across multiple products.

All these, when factored in together, gives us a lot of optimism that the growth can return to the historical CAGRs, and there could be potential upside, which could be there on account of injectable facility where we have, as I mentioned recently, now got the WHO GMP approval, and soon we will be engaging with the customers to kind of qualify this facility for their contract manufacturing as well, while we launch the products into the domestic markets under our own brand name as well. I think all these factors put together gives us confidence that the next year, we will be at least doing our historical CAGRs, and with favorable positionings on the other matters, we could be slowly and steadily inching towards the CAGR that we have said to be there over the next three to five years.

Ankur, just a follow-up on injectables. Given we will be focusing on domestic, do we have to incur a little bit more to develop the on-ground team because I believe this injectables products will be directly supplied to hospital chains, right?

That was our initial understanding. For that, do we have to incur a little bit more on marketing, a little bit more on developing that business on the domestic part?

That will also have some impact on our margins overall?

No. Not really, because we already have field force for the critical care division.

Close to around 100, 120 people are there for the critical care segment. They're supplying to the large corporate hospitals, mid-corporate hospitals, government institutions, nursing homes pan-India.

We are selling our own branded generics. Once we have kind of moved the manufacturing in-house, I think that has given and that continues to give a lot of confidence to the doctors that now the entire value chain is being controlled in-house rather than we relying on third-party manufacturers.

Because for some of the key products earlier, it was our API, but we were using a third-party manufacturer while doing the marketing on our own. Now with our own manufacturing, many of the core products would now be shifted in-house.

I think that would give a lot of confidence to the doctors and also help us grow the business in the domestic markets for the trade. Now also for the government institution, if you see, that is also a very, very large segment, which was currently being untapped by us because only manufacturers can participate to supply the government markets.

With us being a manufacturer now, in a span of one year or so, we will also start getting access to the government supplies. Which is currently absolutely untapped by us.

While it is there in our nephrology segment where we make the tablets and capsules because we are own manufacturer, but in injectables, that was not the case. Now with our own manufacturing, that market would also significantly open up, which would give us significant opportunities to grow in this segment.

Of course, as I said, the third opportunity is to us become a contract manufacturer. We also see a lot of potential in our own marketing.

That is the reason we have also started Concord Lifegen, which is only to cater to a certain specific segmentation of the hospitals, which we were currently unable to tap, which I said was the government institutions and certain smaller nursing homes, while the larger corporate hospitals and mid-corporate hospitals were already being tapped into.

Got it. On the employee cost, if you can, and then I'll jump back in queue.

Thank you. Yeah.

Can you elaborate the question, what is your exact question?

This new labor code-related, the provision you have made, the ₹3-odd crores, right, that is I think I believe for the retrospective period the provision has been made for the employees where the gratuity and whatever is required has been provided for. Going forward, on a recurring basis, do we expect employee cost to increase a little bit because of that?

If that is the case, if you can quantify the same.

Yes, your understanding is correct. This is an one-time correction that is basis the labor code across the industry and the companies.

Way forward, it is going to be an incremental, normalized cost that we will have.

It won't be material enough for 10 basis point or 20 basis point increase?

No, that will not be material enough.

Okay. Got it.

Thank you. I'll jump back in queue.

Thank you.

Hi, sir. Thank you for taking my question.

Could you give more understanding on how is the CDMO project doing? We were also in interaction with other projects for CDMO.

How is that shaping up?

Yeah. One of our projects is already commercialized in the US.

We are already in talks to kind of evaluate it to take it to a global level. Different markets are also being evaluated by our partner.

For now, I think it is primarily the US market. This is basically an NDA product where our client has launched the product in the US.

The first year or so has been primarily about setting up the marketing setups and kind of reaching out to the wholesalers and establishing that channel. Sales have already started.

What we're looking at is that for the next year, we are looking for further forecasting from them. Discussions are ongoing.

There is a good potential of the product in the US market with the possibility of expanding it in the global markets. There are, of course, other discussions happening on other projects as well.

As I mentioned that, the first half of the year was a challenging year because many of the projects were temporarily put on hold because of the uncertainty around the tariffs. Post-September, we have again started engaging with them, and I think discussions are progressing quite well.

We are also meeting these customers in March during DCAT. We are confident that there should be some positive movement around some of the projects which were at relatively advanced stages of discussion last year.

We continue to file a lot of RFQs primarily in the enzymes as well as in CMO opportunities for the innovator companies. A lot of effort is being put around that, and we are seeing positive momentum around this.

Also, sir, clarity in terms of whether that 100% tariff, which was imposed on branded drugs from India to US, does that stay currently?

To our understanding, it did not cover the brands which were already launched into the market. We've not read the new fine prints, but even in the earlier stages what we got the clarity around October, November that it is not going to be impacting the products that have already been launched into the US market.

The customers that or the clients that we have been talking to already have their products launched into the US markets. They're the innovator companies, then shifting the manufacturing to say from any other part of the world to India would not be impacting them in any manner.

For any newer launches, at least, the last that we knew of, it was impacting those clients if they move their manufacturing out of the US. Again, it's a very dynamic world that we're living in, there could be potential changes happening, which we are not right now familiar with.

It doesn't impact already launched branded products in the US.

Sure. Sir, lastly, could you help us with what is the CapEx number that we are looking for this year and ahead?

CapEx is primarily maintenance CapEx that is going on, and, in terms of number, maybe Raviraj can share more.

For the year, generally we have a CapEx number of around ₹100, ₹150 crores as a maintenance CapEx. That's the number generally we have.

Okay. That's the CapEx that we are looking to spend for FY26 and ahead of the year?

Yes.

Okay. Sure.

Thank you so much.

Thanks for the opportunity. Firstly, can you explain in terms of why was there a decline [unclear]

Naman, your voice is not clear.

Hello. Can you hear me?

Slightly better.

Yes, yes. Just wanted to understand the contraction in gross margins despite, let's say, around high 79%, 80% kind of API revenue contribution.

Anything specific that you want to call out?

No, not really. I think this is primarily on account of the product mix because if you're looking it from a quarter-on-quarter basis.

If you would look at from a nine-month basis, actually the gross margin has moved from 77% to 78%. On a quarter-on-quarter, it will be difficult to kind of take a call, and as I mentioned, it is primarily on account of the product mix, which as you extend the time period that kind of gets stabilized, and on a nine-month period, we have actually seen an improvement in the gross margins by 100 bps.

Yes, fair enough.

One on the formulation business. I believe that 1HFY25 had that Middle East tender or let's say high base.

Q3 this time also, we saw a 14% kind of decline. Anything that you would call out in terms of why there is still, let's say, decline in the formulation business?

How should one look, let's say, in terms of a FY26?

I'm not sure if I understood correctly, but what I understand is that the formulation business, you're seeing that there is slightly a reduction compared to the last year. Is that what you're asking?

Yes, yes. YoY basis, there's 14% decline in the formulation business.

My belief was that the Middle East tender was stopped or halted in first half of FY25. There won't be any base impact or any, let's say, these issues in the third quarter of FY26.

Despite that, we see a decline in the formulation business. Let's say, what are the challenges in this piece?

No, no. I think as I said that the way that one needs to look at on a quarter-on-quarter is that there could be areas that we have kind of addressed through the API.

That gets reflected in our API numbers, which grew at 24%, because there are certain opportunities that would have been captured through the API rather than through the formulation. This is primarily coming in the emerging markets because in the India market as well as in the US markets, the sales volumes have increased.

In the emerging markets where we are not able to, say, gain opportunities through the API, only that is where we kind of look through the formulation route. If that is getting addressed through API, which in this quarter you're seeing with the growth on the API, then it had some bit of an impact on the formulations.

Coming to the API business, you'd highlighted around ₹20, ₹25 crore of sales deferment in 2Q. Has this been captured fully in 3Q?

That has been fully captured, which was on account of the written confirmation. That was to the tune of around ₹20 to ₹25 crores, which, actually during our last call only, that sales had already been executed because it happened somewhere in early November or so.

That sales to that customers already started to build on. Because they were only awaiting the certification.

Once that certification was there, then the sales started to pick up with them.

If I adjust that and largely see quarter-on-quarter, that has been the growth for the API business. The base business still has not, let's say, really grown if I adjust for that.

You will not be able to take that out, Naman, because it is not that suppose in this particular quarter that those customers have picked up double the quantity that they would want it. It's not that what it does is it kind of gradually spills over a little bit slowly and steadily into the subsequent quarters.

Because if they picked up something that instead of, say, July, August, they've now picked up in October, November, it will take time for them to consume those quantities. It is not that they've picked up in November and they will again pick it up in December, the ₹20 crores.

That does have a little bit of spillovers happening. It may not be the right way to kind of look at it that if we consider the growth minus that number, then the growth is a different number.

That would not be the right way to look at the numbers.

Okay. On the margins front, this time you'd called out Stelis' setup costs as well.

Could you provide what were the injectable plant losses for the quarter and what were the setup costs related to Stelis?

See, injectables would be close to around ₹10 to ₹12 crores, and the Stelis cost would range anywhere between ₹5 to ₹10 crores per quarter.

Okay. ₹5 to ₹5 to ₹10 crores?

₹5 to ₹10 crores per quarter.

Do we expect this ₹5 to ₹10 crore cost to increase from here on or this is the base and from here on, we'll start seeing revenues kicking in

for this? No.

The procedure of already getting the licenses for the US business is already completed. I think now we are gearing up for the launch activities.

In subsequent few months or so, we should start seeing the launch happening. There would be sales realizations coming from Stelis because they are not only for Concord products, but they would also be looking at in-licensing opportunities.

There would be certain costs which probably we were incurring right now with third parties, which would now be done through Stelis. There could be some cost which kind of gets compensated because of the reduction that we may end up seeing with our third-party distributor, current marketing partner.

As I think business with Stelis would grow, these costs would then be accordingly taken care of.

Anything in mind in terms of we'll be moving away from the distributor and completely sell everything from this facility itself or there will be a mix of third-party and own channel?

No. In-licensing opportunities are going to be in the near future because, as I said, that since right now we've just established and the approvals for the licenses have come in, the in-licensing opportunities are going to be somewhat of a medium-term roadmap.

Till that time, all the dossiers that Concord has, the supplies are going to be from Concord to Stelis. There are a few ANDAs which currently our current marketing partner is not marketing those products, they are immediately going to go to Stelis for marketing.

Then that is going to lead to the sales increase for those products in the US. Products will be manufactured till that time in Concord till the time in-licensing opportunities, which are a medium term, do not get executed.

On the previous participant's question on the US CDMO opportunity, is this that animal health product or this is something else?

No, no. These are human products.

We have five five ANDAs which

No, no. Not about ANDA.

I'm talking about the CDMO opportunity.

Oh, CDMO. Okay.

That is an animal product, yeah.

Animal health product, right.

Yeah.

I have more questions. I'll get back into the queue.

Sure. Thank you.

Hi. Good afternoon, sir.

First question is on you mentioned increased engagement on second-source supply post clarity on US tariffs. Are these discussions largely with existing customers or new innovator or generic players?

What is the kind of conversion timeline that one should expect?

I think engagement is going on on both fronts. Most of the discussions that we're doing is where we've already had some level of engagements on other products with those customers.

That also gives us an opportunity to engage a lot more on the newer products as a second-source opportunities. Secondly, also, certain markets, the customers have started looking at us as whom we were not engaging with them in the past.

Say, for example, Nystatin, which is an anti-infective product, it has a slightly different customer base as well. In those cases, those are relatively newer customers for Concord as well.

Most of those are newer customers. Of course, we have few Indian customers wherein we already have established relationships, and that is helping us to kind of engage with them on these newer products as well.

I would say it is a mix of both. We do have couple of products at the API level, which is our own API, where we are engaging with the innovators.

I expect that maybe one of those projects hopefully will commercialize in this quarter, and hopefully with another one, we would take some validation batches at least if not in this quarter, in the next quarter. I know of at least two two are there where the engagement level with the innovators they're relatively newer products and engagement levels are quite at an advanced stage.

We have also actually to add on, commercialized one anti-infective product with one of the innovator companies as well. The supplies may not look much in this quarter because they've just started picking up, but I think we have a good level of engagement, visibility over the next year's time with them.

Understood. How should we see the Q4 the exit run rate or as we enter FY27, especially in the APIs?

Second on the how should we see the formulation segment over the next two to three years?

See, giving exact numbers for quarter four would be difficult, but as I said that there has been an uptick in revenues and we're optimistic of the improved performances in Q4, but difficult to put a number to how things are going to be in Q4. I think given the optimism which is there and given that we are getting a lot of second-source opportunities, we're optimistic of the growth rate for Q4.

Understood, sir. There was one question on formulations also.

How should we see that over the medium term?

Yeah. I think formulation also will have a big growth driver because when I answered to his question, that injectables, we're looking at a 6% growth contribution to the revenues over the baseline of 18%.

That is a facility which has recently got commercialized, got its WHO GMP also. We are now engaging with a lot of customers to kind of get that facility qualified for them.

In the next one to two years, we should see good level of growth coming in from not only our own branded generics, but also as a contract manufacturing partner, because no company in India has its own fermentation API as well as injectable formulation. Even the API companies who are importing the product or exporting the products to India, they are also pure API companies only.

They don't have their own formulations. There is no company like Concord which would have this mix of fermentation APIs and finished formulations, which would give us a good competitive edge for our products as well as for contract manufacturing.

Over a medium term, I think injectables would play out quite well or should play out quite well. Then from a medium to long-term perspective is where we would start seeing growth coming in from the emerging markets with the registration processes going through, and that should kind of also help growth in the medium to a longer-term perspective.

We're seeing good traction coming in from the injectable side. What we're doing with Stelis and with newer dossiers being filed in global markets, that would help us drive growth in the oral solid opportunity as well.

That's how at least we look at the formulation business over the next two to three years.

Understood, sir. Thank you.

Thank you.

Hi. Good afternoon, everyone.

Ankur, do you still expect to grow overall sales in FY26?

As I said, Alankar, in my previous response that difficult to give you a number in terms of what the growth is going to be looking like. Yes, I think the way that we are progressing, the second half looks to be much better.

We've already seen how quarter three is doing. We're optimistic of quarter four.

We have a good order book position. We continue to build on that over the next one, one and a half month that we have and deliver those quantities and sales to our customers.

Putting a number there would be challenging for me.

Okay. I asked this, Ankur, because you had said that there would be growth at overall level in FY26.

I take your point. Second question is, can you broadly break down the API growth across pricing, volumes, and new launches for 9M FY26?

If you see, the launches that happened in last year were only for two products, which was Nystatin and Voclosporin. These two products, one is a Para IV product, the other is a generic product where there are only three players, primarily three players in the global markets.

Both of those two players are based out of Europe. That gives us a lot of advantage to kind of become a leader on that particular anti-infective product.

We have already started seeing good traction coming on those products. We have started supplying validation quantities and exhibit batch quantities to our customers, and they have filed also.

Hopefully, in the next year, we should start seeing commercial sales happening to these customers across global markets. For this year, it has been primarily supplies of exhibit and validation batch quantities, which on a number basis, it may not be that significant a number.

Much of the growth, as I said, is coming from our already commercialized 28, 29 products which are there. These two products that have got launched have seen more of validation and exhibit batch quantities being supplied in this year.

Within those 28, 29 existing molecules, how would you break the growth between volumes and pricing? Just a qualitative response should suffice.

No. Here, it has been all volume growth only.

While I would say that in fermentation products where the kind of competition that we have, there are only maybe two or three players on the market. In spite of that, I don't think that you can go with a pricing increase.

It has been mostly or majorly a volume game rather than a price increase way of growing.

Has pricing declined, Ankur, if I look at 9M FY26 for the API business? Can it be as high as a double-digit pricing decline or more likely in the single-digit range?

See,

if it would have been a double-digit price decline, then the gross margins would not have increased by 100 bps.

Okay. More in the single-digit range, would that be a safe number to look at?

See, again, it depends, Alankar, on a product-to-product and customer-to-customer. Sometimes, as I said earlier also in our previous discussions, you give certain discounts to certain customers for larger growth in other products and all.

We have more than 300 customers. If we end up giving some customers some discounting in anticipation of newer businesses, I would say that to be in single digits, not because of pricing pressure, but because of larger opportunities to address to.

Is how I would put at it.

Got it. Got it.

A couple of smaller questions. Firstly, did you recognize any revenues from the injectable facility at all in the third quarter?

No, insignificant. Because it's been primarily the exhibit batches that we took, which were supplied to the India market, because you have to go with the six months stability and other things.

We commercialized the facility in March. With six months of data also, you end up being in September.

October, November, December did see supplies of those validation batches, but it is insignificant in the overall revenue mix.

Fair enough. What was the share of immunosuppressant APIs to the overall API sales mix in nine months?

What we would look at is that for the 77%, 78% of the API business, it would be closer to around 70%, 75%, which has been historically been the case. There has not been any major change in the mix between immunosuppressants and anti-infectives and other segments.

I'm happy to see that the other segments are also growing in terms of volumes because I did mention that we're trying to work with the innovators in the anti-infective segment as well. There is a lot of growth momentum which is coming in the non-immuno segment as well, while immuno segment continues to build and kind of stay strong there.

The mix has been relatively more or less the same as it had been last year for last nine months.

Understood. The final question, capacity utilizations, please, for Unit 1, Unit 2, and Unit 3?

Hi. For the quarter, the Unit 1 was at 81%, Unit 3 was at 40%, and Unit 2 was at 27%.

Got it. That's it from my side.

Thank you and all the best.

Thank you.

Thank you.

Hi. Thank you so much for the opportunity.

I had three questions. One is continuing from the previous participant, if you can just comment more on your non-immunosuppressant portfolio, basically what is the strategy there, the competitive intensity that is happening, and over a longer term, how do you see the mix evolve?

That is the first question. Second is, wanted to a bit more understanding on the R&D side basically now since we're looking to go aggressive on CDMO side.

How are we looking to ramp up our R&D operations? That's the second question.

Third, I think we've seen a good amount of cash balance building up on a balance sheet, and now the majority of CapEx were done through. Are we actively looking at any inorganic opportunities to probably add to a portfolio and grow more?

These are my three questions. Thank you.

Sure. Thanks.

As answered earlier that for the nine months, we've seen that the mix has been more or less similar while volume growths are also happening in the anti-infectives, antifungal, and onco segment. Now even the newer products that we have, the ones that are there in the pipeline, all of them are in the anti-infectives, antifungal, and onco segment.

They're again products where you would see limited competition, and they are complex and niche products. Like the ones that we launched last year like Nystatin, as I mentioned earlier, there were only three players, Concord being one of them.

We have few products which are there in the pipeline right now where there are again maximum two or four players. Most of them, as one would see, are either from Southeast Asia or Europe.

We have one product which is in pipeline, which is where you have good competition from China. The way that we are developing that product, the cost competitiveness is also significantly lower than that of China's cost.

We have a lot of products where we are actually selling our APIs into the China market. It's not that this is one such product.

We have many products where we are much, much more competitive than even the Chinese manufacturers. To answer your question, the newer set of products which are there, the base principle remains the same as it has been for the immunosuppressants.

It is just that it has seen a much smaller time to kind of gain market share. Many of these products are gaining market share as we speak.

It's just a matter of time till it reaches to the number that you would have seen in our other segments. That's how we would look at the non-immuno segments.

When we talk about the R&D and CDMO, we have more than 100 scientists which are working in the R&D. The team is continuously working on new products development as well as the CDMO opportunities.

Once any newer project comes in, each customer is assigned a project leader who works very closely with that customer. Here, it is more about the expertise which is there rather than the cost that gets loaded on to.

That's why you would see that our R&D costs typically stays 2% to 3%, which is significantly lower than the cost which many of the formulation companies would see, because it is more of an expertise and a skill-driven rather than a scale-driven developmental cost. If we do feel the need at any point of time to ramp up our people, that is not a challenge at our end.

At least for now, we're not seeing any reasons to kind of go towards that path. I think we have a good mix of PhDs and R&D scientists who are working on these products.

To answer your third question that, while we have a good, healthy cash position, we are looking at different opportunities, and I would say those opportunities are being looked not only organically, but also inorganically. There are pure opportunities that we are continuing to look at inorganically, and there are few opportunities that we are evaluating if kind of look at it from to grow in adjacencies of fermentation to take it organically as well.

Both the two options are there on the table to kind of see that how we can optimally utilize this cash flow.

Okay. Great.

Thank you, Ankur. That was very detailed and helpful.

Thank you.

Thank you for the follow-up opportunity. Just a clarification on the maintenance CapEx number which you mentioned, that ₹100, ₹150 crore annually on an asset base of gross block of ₹1,100-odd last year.

It seems to be pretty high. We used to give guidance around ₹20, ₹25-odd crore earlier.

I'm just trying to understand why the increase in maintenance part. Second is on the cash balance which you mentioned.

Is it ₹1,298 crores as of December? That's the number you have mentioned?

These are the two. Sorry.

Yeah. Of course, you're right that there is a level of maintenance CapEx across, which is closer on ₹30, ₹40 crores.

We also have some CapEx which is going for certain newer projects that we are trying to build on with some of our customers and also certain opportunities to kind of grow over the next few years. There is some bit of CapEx happening around that in addition to the maintenance CapEx.

It's a blend of growth and maintenance, is it,

₹100,

₹150-odd crore? Okay.

The cash balance is ₹1,290-odd or 1,290?

The investment is ₹340 crores.

Total cash and

The investment is ₹340 crores.

Okay.

In mutual funds.

Sorry, I lost your voice. Hello?

There is a correction there. It is close to 3 ₹350 crores.

Total cash and cash equivalent will be ₹350-odd crores, right?

Yeah. Yes.

Okay. Got it.

Thank you.

Thank you, everyone, for joining on our Q3 and 9M FY26 earnings call. We hope we have been able to address all your queries.

For any further information, please get in touch with us or SGA, our investor relation advisors. Thank you once again and have a good evening.

Thank you.