Hi. Good afternoon, everyone.

This is Rahul from IIFL Capital. I welcome you all to the third quarter earnings conference call of Corona Remedies Limited being hosted by IIFL.

From Corona, we have with us today Mr. Nirav Mehta, Managing Director and CEO; Mr.

Ankur Mehta, Joint Managing Director; Mr. Bhavin Bhagat, Chief Financial Officer; Mr.

Tejas Kothari, Vice President, Corporate Strategy and Business Development; and Mr. Vijay Chawla, President, India Business.

Over to you, sir, for your opening comments.

Good afternoon, ladies and gentlemen. Thank you all for joining us on the Q3 and 9 months FY26 earnings call of Corona Remedies Limited.

Along with me on call, I am joined by our Joint Managing Director, Mr. Ankur Mehta; our CFO, Mr.

Bhavin Bhagat; other members of the senior management team; and SGA, Strategic Growth Advisors, our Investor Relations partner. We have uploaded our result press release and investor presentation on the stock exchange and on company's website.

I hope everybody has the opportunity to go through the same. I would like to begin by giving you all a brief overview of Corona Remedies Limited.

Established in December 2004, Corona Remedies has been built on three core philosophies which are referred as the triple-C philosophy. The first C stands for culture.

It focuses on fostering root-level execution, internal growth, adaptability, and humility. The second C represents courage.

It reflects our willingness to acknowledge mistakes, learn from them, and continuously improve. The third C is commitment.

It represents our dedication to deliver global quality products and achieving long-term sustainable growth. Corona is an India-focused branded pharmaceutical company engaged in development, manufacturing, and marketing of formulations across key therapy areas like women's healthcare, cardio-diabeto, pain management, and urology, as well as other segments such as VMN, gastrointestinal, respiratory therapies, etc.

Approximately 96% of our revenue comes from India. Corona has grown, invested, and expanded in disciplined manner over the last two decades, creating a diversified product portfolio.

It is towards chronic and semi-chronic segment, which contributes approximately 70% to 72% of our total revenue. Today, we have a portfolio of 70+ brands with prominent brands like B29, Myo-D, Trican, Coltal, Obimet, etc.

In the past few years, we have consistently outpaced the IPM, Indian Pharmaceutical Market. Speaking for this quarter, we are number one fastest-growing pharmaceutical company amongst top 30 pharma companies in India for Q3 FY26.

We have grown at 18.9%, nearly twice as fast as the IPM, which has grown by 9.6% over the same period as per Pharmatrac. This has resulted in Corona's jumping up two ranks from 30th to 28th rank in IPM, Indian Pharmaceutical Market.

An important and diverse and differentiating factor driving our overall growth is volume. There are three growths: volume, price, and new introductions.

Or else, it is volume plus NI and price growth. Corona has always been differentiating factor in the overall growth with volumes plus NI.

Corona's healthy volume plus NI growth trajectory comes on back of our focus on the chronic and semi-chronic segment. Along our journey, we have also executed strategic brand acquisition and in-licensing arrangements to address therapy gaps in our portfolio and to establish complementary capabilities such as backward integration, marketing arrangements, and diversified product offerings.

We have a strong track record when it comes to acquired brands. After acquiring brands from giants like GlaxoSmithKline, Abbott, Sanofi, etc., we have been successful in scaling those brands considerably, and we hope to continue the same trend with seven brands acquisition from Bayer in July 2025.

The commercialization of the portfolio acquired from the Bayer will begin in Q4 FY26 with the launch of Noclot Plus. The Noclot franchise has significant market opportunities in antiplatelet and combination therapies and will contribute in our growth in years ahead.

The EU GMP-approved Gujarat facility has also received EAEU GMP accreditation. Eurasian GMP accreditation enables Corona's entry into five EAEU members countries like Russia, Kyrgyzstan, Armenia, Belarus, and Kazakhstan through a B2B model.

It opens access to a pharmaceutical market valued at approximately $25 billion and aligns strongly with Corona's long-term vision of building and strengthening international partnership. Cash flows has been cornerstone for our journey and will continue to be so.

We have a strong track record of EBITDA to OCF conversion, which has enabled us to reinvest for growth over the past two decades. Owing to our disciplined cash flow generation, capital allocation, and steady profitability, our returns ratios have been healthy.

We are net cash surplus company. The performance is aligned with our annual guidance of 15% revenue growth and 20% PAT growth.

Our engine brands performed in line with the expectations. Going forward, our intent and strategy is to increase our market share across our key therapies areas by focusing on chronic and sub-chronic segment, offering products across the life cycle of a patient.

The strategy is primarily focus on launching new products that address unmet patients need within existing therapy areas. By identifying gap in patient care and unmet medical needs, we aim to introduce brand-line extensions that cater to evolving therapeutic landscapes.

Apart from the growing organically brand acquisition and in-licensing arrangements remain key growth drivers at Corona. We are also intensifying our focus with specialist and super-specialist prescribers through our medical representative network to enhance our presence in high-value therapeutic segments.

Given our diversified and expanding product portfolio, healthy brand strength, wide and growing marketing and distribution network, experienced leadership, and financial discipline, we are on track to deliver consistent growth and stable profitability. We expect to continue growing our revenue in mid-teen range and our profit after tax at high-teen range.

I would like to hand over the call over to our CFO, Mr. Bhavin Bhagat, to take you to the financial and operational performance.

Thank you, and over to Bhavin.

Thank you, Nirav. A warm welcome to everyone to our Q3 and 9 months FY26 earnings call.

I'll take you through the financial performance for the quarter and 9 months ended 31st December 2025. Coming to the quarterly performance first, revenue for Q3 FY26 stood at ₹342 crores versus ₹298 crores in Q3 FY25, reflecting a healthy growth of 15% YoY.

EBITDA stood at ₹83 crores versus ₹69 crores in Q3 FY25, reflecting a growth of 20% on a YoY basis. EBITDA margin improved by around 100 bps and stood at 24.3%.

Profit after tax adjusted for the one-time impact of new labor codes stood at ₹56 crores compared to ₹45 crores in Q3 FY25, reflecting a growth of around 24% YoY. Speaking of our 9 months FY26 performance, revenue for 9 months FY26 stood at ₹1,050 crores compared to ₹903 crores in 9 months FY25, reflecting a growth of around 16% on a YoY basis against our guidance of 15%.

EBITDA for 9 months FY26 grew by almost 25% on a YoY basis and stood at ₹231 crores. EBITDA margin has seen a healthy improvement of around 140 bps.

EBITDA margin for 9 months FY26 stood at 22%. Adjusted profit after tax for 9 months FY26 stood at 150 ₹154 crores compared to ₹118 crores in 9 months FY25, reflecting a growth of around 31% YoY against our guidance of 20%.

Our performance for the quarter and 9 months period is broadly in line with our guidance and is on a improving trajectory. On the return ratio front, we continued to maintain a healthy trajectory.

Our annualized ROE for 9 months FY26 stood at 31%, whereas annualized ROCE, return on capital employed, for 9 months FY26 stood at 48%. OCF to EBITDA stood strong at 86%.

With that, I would like to open the floor for questions. Thank you.

Hi. Good afternoon, everyone.

Sir, we have shown pretty strong outperformance versus the IPM yet again if you look at secondary sales data. However, on the reported basis, our extent of outperformance has narrowed a bit in this quarter.

Just wanted to understand what is leading to this difference between primary and secondary sales for us.

I couldn't get your question. Nirav here.

What I understand, you want to understand about difference between primary and secondary. My question understanding is correct?

No,

Nirav, my question is if you look at say IQVIA data, if you compare the growth reported by Corona in the third quarter versus what the industry has reported, there is a very significant outperformance, which you alluded to as well. If you look at the reported growth of 15% odd in this quarter, while it's still pretty strong, we've seen some other companies also reporting pretty strong growth in this quarter.

Just I wanted to check whether there is any reason for difference between primary and secondary sales specifically in this quarter or there's nothing much to read into this.

Okay. Honestly, there's nothing much to read into it.

More or less, this is data captured is just giving you the idea that how market has performed and what you have performed. It has never been possible to match apple to apple or pineapple to pineapple.

It is always a gap plus or minus here and there. This is just the guideline which IQVIA has shown.

You are talking about 15% versus 18.9% and trying to compare that?

Yeah. I was just looking at the outperformance on a relative basis.

I know on reported

No. I understand.

No, there is nothing like any extraordinary price thing on the primary or secondary front. It is more or less data captured things on the PharmaTrac or IQVIA.

Got it. The other question was if you look at the mix of domestic and international, we do share that percentage contribution from domestic in our presentation.

If you look at say the second quarter, third quarter, and even if I look at say first quarter from the RHP, the contribution of international has broadly stayed similar over the last three quarters. Now given this recent EU GMP certification for those five markets, should we expect a much faster growth in the international market compared to the domestic business?

Yes and no, both the things has been there. See, international business in the pharmaceutical industry has been typical.

First you get the accreditation approved, then you're going to submit the dossier. For dossier to get the approval will take another 1, 2 years, and then the business start.

On a long term, if you understand that after look at 3, 4, 5 years, the CI of international and India business will be broadly more or less 90 and 10, but not more than that. More or less it's a India-focused industry.

At the same time, if we continue to grow in India business by 15% more or less year and there, it doesn't change the proportionate because there also you grow by 20%, 25%, and here you grow by 15%, but the pie more or less remains same. This 3%, 4% will go to 7%, 8%, and then further go to 8%, 9% in a years to come.

That has been possible.

Got it, sir. Just one final follow-up.

Will we need any incremental investments to drive growth in exports?

No, I think so. Internal we have enough cash generated from the business.

As Bhavin has just spoke about OCF EBITDA is 84%. Today also we have been 100-crore plus net cash positive company.

I don't think so that we require any further capital to boost the international business.

Sir, my question also was on the OPEX. Any addition of manpower or any other spends on distribution, etc.?

We have just capitalized our 600 kg line, which enhances our 40% capacity as of now. As per our predictions and planning, I think so we require some one more plant in FY28 to FY29.

We will start thinking on this after a few months, I think so.

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

Thank you and all the best.

Thank you, sir.

Hi, sir. Thank you for the opportunity.

Sir, I was just looking at your employee and your MR-related costs and comparing that with some of the other companies that are operating in heavy domestic branded formulations, and more specifically in the therapy that you operate. It seems like that there is 14%, 15% kind of difference, which obviously has narrowed down in last 2, 3 years.

That in my analysis seems to be coming out from the PCPM, which for us seems to be lower than IPM. I just wanted to understand that given you highlight mid-teens kind of growth and your MR is growing at 5% to 7% CAGR, is this a possibility that we would continue to see margin expansion, margins probably hitting high 20s or potentially 30% in medium to long term?

Just wanted to understand what's your ambition on that part.

I request Bhavin to answer the question.

Hi, Shubham. Your question is bang on.

You asked the questions which everyone asked to us, and we answer them in a very clinical manner. Yes, your question is right that our employee cost percentage compared to the other peers seems to be high, but the answering that question is that you have to see apple-to-apple growth.

In the last three years, we have deployed 600 medical reps in the system, which will increase our employee cost in the initial days. You are also endorsed that in the last three years employee cost percentage has reduced.

Yes, it will come down in coming years down the line, but because of the heavy expansion which we did in the last three years, because of which the employee cost seems to be high. Another question towards PCPM is linked with the same things that when you deploy medical reps, as we mentioned in our earlier calls as well, that we would be deploying 5% to 6% medical reps out of the total medical reps on a yearly basis, on an average terms.

Because of which, in the past years our PCPM was low. Now if you see in years down the line, our PCPM will improve because of our leverage in our PCPM improvement and the revenue growth of 15% what we have committed.

Answering your last question about the margin expansion by 30% what you are saying and what we are currently at 20%, 21% or 22% from an EBITDA standpoint, yes, having said then as my employee cost will reduce, my EBITDA margins will improve. Lastly speaking, our revenue will grow by 15% irrespective of our MR additions and our PAT growth, which we are confident to achieve 20%.

That is what we would like to share.

Understood, sir. Thank you for answering my question, and all the best for the future.

Good evening, sir. Congratulations on a good set of numbers.

My question is more on the inorganic growth plan. Do we have any deal on the table?

Are we evaluating any inorganic acquisitions?

Thank you. As far as inorganic is concerned, we are constantly evaluating the things.

As of now also we are evaluating on two brand acquisitions, but it is always been one out of 100. We never know that when these things will convert into the reality.

We are bang on. We are working hard into it that if any brand or a portfolio is been in the fitment, we are happy to see it.

We have several examples of success in this fashion. We are looking into it.

As of now, nothing concrete into it.

Okay. Thank you, and all the best, sir.

Thank you so much. This is Amey from JM.

Nirav, I have one question on basically long-term margins. In terms of growth, we have been one of the top companies in top 30 companies in India.

When it comes to margins, we are still at around 20 22%, 24% kind of a range, whereas a similar business mix or product mix companies are also operating at 35% plus EBITDA margin. At what point you think in terms of scale we will be able to achieve these kind of margins?

Also what is the difference in terms of the structure, etc., between these companies and us when it comes to the margin profile? Thank you so much.

Thanks, Ameybhai. Ameybhai, see, as far as pharmaceutical industry is concerned, more or less, answering your second question first and first the second, more or less the structure remains same for majority of all top companies.

Talking about the peers, the structure more or less remains same. See, what we think at Corona, we are in the business of revenue growth with specialists and super-specialists prescription-based business and a long-term business.

Today we are in four therapies. Slowly and gradually, as I've discussed last time, we are going to enter in infertility.

Sometime we'll enter in rheumatology, spine. We are trying to enter into the new therapies.

Always we keep in the mind that we will grow with the 15%. When we talk about 15%, we are talking about double than the market, more or less, or 1.8 times than the market, right?

When market grows about 8%, 9%, 10%, and if you're talking about 15% plus, I think so we are talking about more or less 1.75 to 2% than the market. To do it, we have to enter with new therapies, we have to launch a new products, we have to go ahead with super-speciality focus.

Whatever we do, we always remain two numbers in the mind: 15% revenue growth and 20% profitability growth. If we continue to achieve in the same blind directions, I think so we will soon be entered with the peers in the years to come.

The point is consistently we have at Corona, we have to achieve 20% profitability growth and 15% revenue growth. If one happens and if doesn't happen, I think so it's not a healthy mix.

Revenue growth is equally important as the profitability growth, and our eye is on 15% and 20% revenue and profitability for next few years as a guideline also. I think so if we achieve, we will be more or less near to the peers.

Sure. Going ahead, investors basically should see that you will continue to try to maintain your top-line growth while your margins will keep on gradually improving as you scale achieve?

Absolutely. Absolutely.

I think so you have summed up my answer. Sure,

sure. Thank you so much, sir.

The second question I have is on the seasonality front. Since this is first time we are seeing the quarters of our businesses, is it possible to explain how the quarters are typically staggered in terms of both expenses, because there have been some companies in the market which typically do tend to spend a lot in terms of marketing in a fourth quarter or something like that, or the fourth quarter is typically weak quarter for many of the India-focused companies?

In that aspect, if you can explain the seasonality of our businesses in terms of both revenue as well as the expenses. Thank you.

As far as Corona is concerned, we have about 70% to 72% of chronic and semi-chronic. Acute business is been about another 20%, 30% on overall business.

More or less, there is hardly a seasonality, but 3%, 4% plus or minus on quarter-on-quarter variation may happen. Hypothetically, if you talk about four quarter and 25%, 25%, 25%, 25%, then it may be 22% to 27% percentage sort of revenue and hence the profitability.

More or less, this is the range which we follow. If you look at Corona since FY22, always we have delivered FY22 to today we are in FY26.

Now we are approaching towards the last quarter of FY26. We have always delivered on a yearly basis 15% plus revenue growth and 20% plus PAT growth.

Sure, sure. We should expect a minimal seasonality impact in quarters going ahead basically.

In terms of expense, do we stagger our expense across four quarters or we might see one of the quarters being higher in terms of spend? Because this

was

good EBITDA margins of 30 24%. Should we expect that to continue going ahead, or

Answering your question, we staggered the expenses. There's nothing like a load on one of the quarter.

I think so we will continue to do so with the guideline and estimation which I have just spoken now.

Sure, sure. Thank you so much, sir.

I will join back the queue.

Thank you.

Yeah. Hi, sir.

Thanks for taking my question. Sir, on let's say the 600 MRs which you said you have added over the past 3 years, can you also talk about in terms of the divisions in which these MRs have got added?

The second part to that question would be we obviously are now trying to ramp up our IVF portfolio through the seven brands which we acquired from

Bayer.

Can you also talk about let's say in terms of how the rep team and the channel strategy is being adopted for scaling up the IVF portfolio?

Thanks, Rahul. Answering your question on the about this split of the 600 medical representatives.

We have launched one one one vertical into the cardio-metabolic, names Radiance, and there we have taken about 250 people. The another is the Solaris, which we have, taken a team for gynecology, women's healthcare.

Another 250 people, and about the 100 people all across the other divisions. That's how we have taken about 600 people in the business.

As far as this Bayer seven brands deal is concerned, as I you know told you, the one of the brand is Noclot Plus, which we are going to launch in this month this month, this quarter, Q4 of FY26, which is in the therapy of cardiology as the antiplatelet, anticoagulant market, Noclot Plus. We're going to launch couple of other combination in the category of Noclot in a quarter to come.

This is about one brand. Another, few brands, about four, five brands, we are going to launch with the IVF portfolio.

We already been more or less, taken the team about 46 people across the nation because these are the super-speciality people where we want to cater about 3,000 cent IVF centers. Our goal is to cater about 3,000 top centers, IVF centers of the country.

People are in place. We are more on training is going on, and we are going to launch few other, products with the Bayer's trademark.

The validation batch is going on, and we are going to make it in quarter one or quarter two of FY27, which we also given the guidance last time. More or less, we will use this trademark the capitalization of the trademark by FY27 first quarter few and second quarter few.

Sure, sir. Of these 3,000 IVF centers which we target to cover, how many reps have we added?

Sir, given that it is kind of an institutional business, do you think that the hygiene parameters which we have for the rest of our business in terms of discounting, we might have to go aggressive in terms of trying to scale up this IVF institutional business?

Number one, we have taken 46 people. These 46 people are meeting to this 3,000 centers where we are already been meeting them since years together with our women's healthcare three divisions like Aarush, Solis, and Solaris.

As far as supply chain is concerned, there is only a change that if this products are coming into the cold chain management, we will utilize that channel as a cold chain management or a normal chain management. The hygiene, payment, credit days, all is remain same as per the Corona philosophy, because we always believe that governance is extremely important in any business.

In this institute business, we have decided not to give any leverage onto the fundamentals of Corona. We will not do it.

The products are little unique, little different, and the technology is of Bayer, we will take the utmost advantage of it.

Sure, sir. Sir, my second question is with respect to let's say the GLP-1 market in India.

The market would open up from March '26. What are our ambitions in terms of the GLP-1 space?

If you can comment about your strategy, whether you would launch both the injectable and the oral version at the same point in time?

No, Rahul. Here at the March '26, about 25th or 26th March 2026, GLP-1 patent will come to the end.

At that time, that is only for the injectable, not for the oral. We are going to launch the GLP-1 injectable with Ryptide as the brand name.

Let's see that how this market shape up. We are being there because we understand this segment is extremely important.

Let's see. In the times to come, I think so we can debate more on this subject.

Sure, sir. Sir, last question with respect to the quarterly seasonality.

While you mentioned that the expenses are not let's say heavy on any one quarter, but if I look at your margin profile last year, third quarter your EBITDA margins were closer to 23%, and fourth quarter last year the margins came down to 19%. Do you think that a similar seasonality would play out this year as well in terms of margins or would you expect let's say the margins to sustain at 2Q or 3Q levels?

As I say, Rahul, to Ameybhai also, more or less if you look at 25, but here and there few percentage has been there because of that quarter's need or launching a new vertical or a new product, whatever it is. More or less our endeavor is to give annualized 15% revenue and 20% PAT growth, putting one quarter here and there.

There is no seasonality factor as such. Yes, hypothetically this time in March, we are looking to launch GLP-1.

While some sales and distribution cost may incur little higher in the last quarter, maybe possible, I don't know. What I mean to say, we always eye on yearly data of 15% and 20% revenue and PAT growth as a growth.

Today, we have been very optimistic as far as this quarter also, and hence the annualized return of FY26 also.

Sure, sir. I will join back the queue.

Thank you.

Hi. Good afternoon, everyone.

Thank you for taking me. Sir, I have a couple of questions.

Sir, just wanted to get some sense on the portfolio and the new product pipeline. Can you share some more details on the acquisition pipeline or in-licensing that are in the pipeline?

Thank you, sir. Sir, as far as inorganic is concerned, I've answered just before a few minutes that we are looking at some acquisitions as the proposal.

Nothing concrete, nothing finalized. We are in the process of looking at the things very, very optimistically.

About the new launch, we are, as I also said, with the Bayer portfolio capitalization, we already launched one of the product, Noclot, as a capitalization. Now we are looking at few more, about five, six products, in the infertility segment in next two to three quarters.

We're going to capitalize and launch. About GLP-1 also, we are thinking to launch in the first day of the off-patent.

As a philosophy, we are launching one or two new products per division. More or less about 8 to 10 new introductions per year.

Majorly, about 95% is organically, and 5%, 7% chances are there with the inorganically. This is more or less our philosophy is.

In the quarter four, we are eyeing on launching three biosimilars: one about denosumab, that is, Trican DNAB, which strengthen our osteoporosis segment; about recombinant FSH in another quarter with Fostine R, a Bayer's brand name Fostine R, we are going to launch about recombinant FSH; and GLP-1. We are trying to target specialists and super-specialists in the chronic therapy and trying to launch new products, about 8 to 10 in a year.

Hope I answered your question.

Yeah. Thank you.

Sir, as you talked on Bayer, what kind of market size does we have there and what is our aspirational revenue target from this product portfolio?

About ₹1,500 crore of IVF market and about ₹800 crore of antiplatelet or anticoagulant market.

Sir. Sir, just last question.

As you mentioned about volume growth, can you let me know ballpark breakup between volume, price, and product mix for this 9 months?

It is about 5%, 5%, and 5% more or less, 0.5% here and there. Volume is about 5% against the industry, impact is about 0.5%, and about new product is about 5.5%, 6% 5.5%, 6%, and remaining is the price.

Sir. Thank you.

Thank you so much for the details, sir. Thank you.

Thank you, sir.

Thank you.

Hi. Thank you for the opportunity.

Just wanted to understand a couple of other sort of colors around the growth. Could you help us understand how are you seeing the growth pan out between expansion of the workforce versus PCPM growth?

That was one. On the new product introductions that you've mentioned, how much of that will require any additional CAPEX towards manufacturing versus external CDMO or CMO-led manufacturing?

Those are my two questions.

Generally, as far as the 15% revenue growth is concerned, it is more or less with the organically, with with the team. Because any expansion gives first year first 2, 3 years is the, base years.

They are not going to contribute much into the growth trajectory. For the future, you have to expand the team also.

That is our guideline is about 5% to 7% people on year-on-year or, put together, we try to expand the people in the country of India. As far as our own manufacturing and CMO, I think so the the ratio is about 65% and 35%.

More or less it remains same, 65% and 35%. Sometimes, it goes to 40 and then 60, or sometimes it goes to 70 and 30.

The range remains 65% own manufacturing and 35% on CDMO CMO, dependability.

Therefore, in context of the future growth outlook, should we assume that that ratio will remain same? How should we then think of CAPEX in that context?

As I say you, we want to make sure that as much as about 65% plus we want to have the own manufacturing. At the same time, if we don't have that capacity, we will go on CMO as of now.

After 2, 3 years, when we scaled up with that portfolio, we can think of manufacturing in-house. More or less by next year, I think so we require to start thinking into it as a company.

We have decided to start thinking into it because at that time we need another block for our 28, 29, FY28, '29 also. We will try to look into it if you want to add any new line like injectable line or biosimilar line.

We'll think of at that given of time. As of now, there is no need, because just we have 40% we have just unlocked the 40% capacity by 600 kg line.

Got it. That's helpful.

Thank you so much. All the best.

Thank you, sir.

Thank you all once again for joining us today on the Q3 and 9 months FY26 earning call. We will keep the investor and analyst community posted with any update relating to Corona Remedies.

We hope we have been able to address all your queries. For any other information, kindly get in touch with us or SGA, our Investor Relationship partner.

Thank you so much, and have a great evening ahead.