Thank you. Good afternoon, everyone, and welcome to the Q4 FY26 earnings conference call for Emcure Pharmaceuticals.

Thank you for joining us today. I am Saurabh Paliwal, and we'll begin today with brief opening remarks from the management and then open the lines for Q&A after the commentary concludes.

Joining me today on the call are Mr. Satish Mehta, Managing Director and CEO; Mr.

Taj Shaikh, Chief Financial Officer; Mr. Samit Mehta, Whole-time Director; Mr.

Vik Thapar, President, Corporate Development and Strategy and Finance; and Mr. Piyush Nahar, Executive Vice President, Corporate Development and Strategy.

We hope you have had an opportunity to review the financial results, the results presentation, and the press release that were released earlier. Before we start, I would like to remind everyone that this call is being recorded.

I also need to remind everyone about the safe harbor linked to today's call. Certain statements made during the call may be forward-looking in nature.

These statements are based on our current expectations, assumptions, and management's view as of today. Actual results may differ materially due to range of factors including market conditions, regulatory developments, competitive dynamics, operational factors, and other risks and uncertainties.

For additional details, please refer to our earnings presentation and press release. I'll now hand over the call to Mr.

Mehta to begin with his opening remarks. Over to you, Mr.

Mehta.

Thank you, Saurabh, and good afternoon, all of you. And [bade dil se?]

, I would like to thank you for joining us to review Emcure's Q4 and FY26 results. It means a lot that you have found time to join me.

FY26 marked the start of our 5-year strategy, focusing on turning last year's operational changes into measurable outcomes. I am very happy to tell my investors that we crossed a major milestone this year, surpassing $1 billion in revenue and having a growth of 16.6% year-on-year increase, exceeding the guidance that we had given to you.

We've also increased our base business EBITDA margins by over 100 basis points, and our adjusted PAT grew more than 40%. I repeat, our adjusted PAT grew more than 40%.

This outstanding results give us confidence that the investments we are making in our people—our people are very important—our processes, and I always keep telling, whenever I have been on the call, that we take a pride in telling everyone that Emcure has been built on science, technology, and innovation, and technology including the adoption of AI across key functions, are obviously starting to deliver. I'm very happy to say that.

Turning to key strategic highlights from the year. Let me now focus on portfolio expansion.

That's the first thing I would like to take up. We've strengthened our portfolio in core markets through in-licensing, M&A, and internal R&D.

I would now like to highlight three notable partnerships that we had in the year that has ended. I'm focusing on in-licensing to begin with.

The first partner that we had with Novo Nordisk, we also spoke last time, and very happy to inform my investors that Emcure was selected as the exclusive India partner for Poviztra, a patented rDNA biologic semaglutide. Rest of the products that we are seeing in the market are synthetic.

This is rDNA biologic semaglutide, which I would like to emphasize. Strong exclusive global data and established device distinguishes Poviztra from the generics which have been introduced.

The initial uptake has been promising, especially after the price cut in April 2026. I must say, the pricing which has been done is very competitive, and we obviously have a story and strategy.

We aim for steady growth through FY27. After Novo Nordisk, the second in-licensing that I would like to focus on is Sanofi.

We expanded our partnership to include their oral antidiabetic brands, Amaryl and Cetapin, boosting our position in cardiac and metabolic therapies. With this, Emcure is amongst the leading cardiac players.

Thanks to Amaryl and Cetapin, we also have now a reasonably good, strong foothold in the metabolic space as well. The third partnership which has happened, and we virtually started billing from 1st of April, we signed a distribution agreement for select nephrology and transplant medication in India, which has widened our offerings in the therapy.

It will not be out of place to mention that we have a reasonably strong position in the field of nephrology. We are one of the top five companies.

To that extent, this portfolio will obviously help us to augment our position in the field of nephrology going forward. These alliances with leading pharmaceutical companies demonstrate our strong commercial capabilities and scale in the India market.

India market means a lot to us. Now, after having spoken about in-licensing, I would now talk about M&A and portfolio consolidation.

As far as Zuventus is concerned, we completed minority stake buyout for full consolidation and expect operational synergies to play out over a period of time. Globally, we acquired the Manx portfolio in the UK to grow our UK business and European business as well.

Q-TI-VET we recently acquired in Canada, enhancing our derma range along with Emcutix. Let me now focus on our R&D and pipeline updates.

I spoke about in-licensing, I spoke about M&A and portfolio consolidation. Now let me turn on what has been happening in our R&D and pipeline and which we take a lot of pride.

Amphotericin B remains a key near-term focus. We launched in select European markets in H2 FY26 and intend expanding to Europe and rest of the world markets in FY27.

For bevacizumab, ophthalmic biosimilar for wet AMD, we received endorsement from CDSCO Subject Expert Committee, and we plan to launch in H1 FY27, pending approval. The third important thing is in the field of HIV, where my company enjoys a pole position.

We are one of the six global voluntary licensees for Gilead lenacapavir. We have filed DMF and expect to see product registration in FY27.

Our Scientific Advisory Committee is shaping our long-term pipeline in four areas—four areas, let me focus on these four areas. One is complex injectables, second is biosimilars, third is new delivery routes for existing drugs, and something which we have been talking for last couple of calls as well, is antibody-drug conjugates.

Now, having focused on in-licensing, merger and acquisition, portfolio consolidation, and having given you some flavor about R&D and our pipeline updates, let me now turn my attention to business performance. As far as the year which has just ended, FY26, we grew by 16.6% to 9,204 crores, ₹9,204 crores, with a resilient domestic performance and strong international performance.

Now let me focus, as far as business performance is concerned, to focus on domestic business, which is very close to my heart. Domestic business grew by 10% in FY26 to 4,027 crores, ₹4,027 crores, led by women health, cardiac, CNS, and oncology.

As far as Q4 is concerned, yes, I will admit, first person to admit, it was softer, mainly due to Zuventus portfolio and team reorganization, causing higher attrition. As you know that we acquired the minority stake in Zuventus, there was attrition.

Integration and new leadership hires have addressed these issues. I'm very happy to say that as far as April is concerned, it's absolutely as per the plan, it is on track, nothing to really worry as far as Zuventus is concerned going forward.

New therapy areas about which we spoke last time as well, derma, Emcutix, consumer health, diabetes, are scaling well. Poviztra-Novo Nordisk partnership shows promising early uptake.

We are in soft spot, as far as the pricing is concerned, and we do expect reasonable growth in FY27. I'm very happy to inform that as far as the field productivities is concerned, it has gone up from 5.4 lakhs per medical representative to 7 lakh per person over a period of last 2 years, obviously good things are happening.

As far as international markets are concerned, I am very happy to inform that revenue grew by 22% to 5,177 crores in FY26, 5,177 crores in FY26. Europe, strong base line business growth and successful launches with Manx integration.

Canada posted solid growth on market share gains and new launches. Rest of the world delivered healthy growth across non-ARV and ARV, with non-ARV supporting revenue diversification and ARV maintaining a strong order book.

I think as our non-ARV business is very important, and that's the function of the registration that we get in the various markets. We got reasonably good registrations, we are very bullish as far as the international markets are concerned going forward.

EBITDA margins improved year-on-year due to operating leverage across both domestic and international markets. Now, having talked about the year which has ended, now let me focus on outlook and growth levers as far as FY27 is concerned.

That's what I would like to focus, having spoken about the business for the year which has just ended. I talked about the first year of our strategic plan, where we have delivered the results, and we have been focusing on execution about whatever we decided in the beginning of the year.

Now, as far as the second year of our strategic plan is concerned, I am very happy to inform my investors, and your presence means a lot to me, that Emcure is very well positioned for strong performance going forward. Our growth drivers are at different stages.

The first growth drivers is obviously going to be domestic market. I'm very happy to say that we have a very strong team and portfolio which will drive better than industry growth ahead, especially in cardio, diabeto, biologics, women health, and new initiatives.

I've been leading this domestic initiative for last 30 years, and I feel good about the team which we have built up in last few months, and I feel good about the domestic market going forward. Then the second lever of growth will be semaglutide partnership, then Emcutix, the derma product that we have launched, and of course, the consumer business URTH, which is showing a good uptake.

It's stabilizing reasonably well, are in initial stages of scale up, and we expect returns from this to build over a period of next few years. All these areas are growing areas, as far as derma is concerned, that's a growing market of 14,000 crores.

There, because of the strategic initiatives that we are taking, we are bullish, and URTH, of course, we are doing well under leadership of Namita. Then Canada and Europe, we expect growth to continue, led by market share gains, new launches, and expanded portfolio.

Canada and Europe will continue to grow. The fourth lever is amphotericin B, and we expect in the current year amphotericin B should make significant contribution in FY27 on the back of registrations that we are receiving from different geographies, both regulated as well as emerging markets.

In rest of the world markets, we expect sustained growth led by non-ARV pipeline and robust ARV order book. FY27, we project low to mid-teen revenue growth, and as I have been explaining in last a few calls, so that I have had the privilege of addressing to you guys, that EBITDA margin expansion will happen as committed, between 75 to 100 basis points going forward, assuming stable regulations and macroeconomic conditions.

I think this is based on the assumptions that there will not be a major upheaval or problems or at the geopolitical level. I think overall, we are quite optimistic and bullish about the business as far as the second year of the execution of the plan is concerned.

In closing, I would like to tell my investors that our strong performance highlights our diversified business model, India-led manufacturing, scientific strengths, focus on science, innovation, technology, and more than anything else, one area on which we are hugely focused is on execution, because that's one area where we'll make a distinction when you compare or distinguish ourselves when we compare with other companies. The focus will be on execution going forward.

Our priorities are clear, and priorities are absolutely well-defined: achieve sustainable above-industry growth—very important—both in domestic and other market. The second area, as far as execution is going to play a very important role, is to expand margins, that is very important going forward, get the synergies on account of the scaling of the business that is happening, and create long-term value for my stakeholders.

It's very, very important that my stakeholders is at the core of this strategies that will be formulating, and I am extremely conscious of the fact that your reposed faith in me and my company, to that extent that will always remain at the back of my mind as we execute our policies going forward. Again, I would like to reiterate that Emcure's science-driven portfolio and record delivering complex products set us apart.

We are different because we are focusing on technology, our complex products will set us apart. Our ongoing investments will be in people, products, processes, and partnerships that we have, position us for growth and profitability across all geographies, as in India, Canada, Europe, and rest of the world, as we progress our strategic plan.

I think, as far as going forward is concerned, the focus will be on growth, growth, and growth, and obviously, improving the margins, that's something that we have, and that's how we will go. Now I would also like to thank you all and all my Emcurians for all unstinted support they have given us, and we are very proud of that.

I would also like to thank all our shareholders for reposing faith in us and partners for their absolutely unstinted support, which means a lot to me as an individual at this point of time in my career. That's the biggest capital that I have, and I intend building on it for my shareholders and my partners going forward to deliver better results year after year.

Thank you for giving me patient hearing. Your support means a lot to us, all of us.

Now I will hand over to Taj, our CFO, to review the Q4 and FY26 financials. Taj, over to you.

Good afternoon, everyone. I will take you through the key financial highlights for the fourth quarter and the full year FY26.

I will be discussing all comparison on a year-on-year basis. Starting with the Q4 performance, revenue from operations for the quarter grew by 16.7% to 2,470 crores, up by 16.7%.

The domestic business grew by 5.2% to 977 crores due to softness in Zuventus arising from the recently concluded minority stake transaction and related leadership changes and team and portfolio reorganization. International markets maintained their strong growth momentum, with revenues growing 25.7% to 1,493 crores.

Europe reported revenues of 538 crores, a growth of 35.8%, with base business, Manx, and amphotericin B scaling up being contributing factors. Canada reported a 28.6% growth, with revenues increasing to 399 crores, led by market share gains and new launches.

Emerging markets grew 15.5% to 556 crores, with both ARV and non-ARV seeing strong growth. Gross margins for the quarter stood at 59.4% versus 57.8% in quarter four of FY25, up 160 bps because of a better business mix, especially new launches in international markets.

EBITDA, excluding other income, grew 24.5% to 485 crores. EBITDA margins improved to 19.7% from 18.4% in Q4 of FY25 and 19.5% in Q3 of FY26, supported by operating leverage and productivity gains being partly offset by Sanofi OAD contribution.

Depreciation and amortization for the quarter was 106 crores. Interest cost was 46 crores.

During the quarter, we also booked an exceptional expense of 43 crores related to Mantra earnout being higher than initial expectation due to better performance achieved. This was partly offset by reversal of 12 crores due to reassessment of new labor code related liabilities.

Excluding the impact of exceptions, the effective tax rate stood at 25.4% for the quarter. Consequently, reported PAT for the quarter was 244 crores, with a PAT margin of 9.9%.

Adjusted PAT came in at 279 crores, showing strong growth of 36% year-over-year, with PAT margin of 11.3%, which was up 160 bps. Net debt as of 31st March 2026 stood at 1,054 crores.

The increase in debt over the last year has primarily been because of payout for Manx as well as Zuventus minority stake acquisition. Moving to the annual performance for FY26, revenue from operations grew to 9,204 crores, a strong growth of 16.6%.

Domestic business grew to 4,027 crores, representing a growth of 10%. International markets performed well, with revenues growing 22.2% to 5,177 crores, driven by strong performance across EU, ROW markets, and Canada.

EU was the strongest performer, with revenues growing 25.5% to 1,850 crores. ROW markets scaled up to 1,840 crores, delivering a 21.8% growth.

Both ARV and non-ARV verticals contributed to this strong performance. Canada grew 18.7% to 1,487 crores through base business growth and new launches.

Gross margins for FY26 stood at 60.3%, up 20 bps. EBITDA for the year was at 1,789 crores, growing 21.8% from 1,469 crores in FY25.

EBITDA margins improved 80 bps to 19.4%, reflecting improved utilization and productivity gains. The EBITDA margin improvement is despite increase in R&D investments during the year.

R&D investments stood at 383.5 crores for FY26, corresponding to 4.2% of revenue. This was an increase of 50 bps year-over-year.

Depreciation and amortization grew to 415 crores from 384 crores in FY25. Excluding exceptional and one-time impact, our effective tax rate for FY26 was 26%.

Reported PAT was 941 crores, with PAT margin of 10.2%. PAT adjusted for exceptions was 1,008 crores, reflecting a growth of 41%.

Adjusted PAT margins stood at 10.9%, up by 189 bps. With that, I will now open the floor for questions.

Thank you so much for giving me an opportunity, and congrats to the management on good set of numbers. The first question I have on India business, we have delivered around 5% growth this quarter.

I understand if there was a Zuventus impact. Is it possible to quantify this impact, and does it mean that since there is a attrition and all what you mentioned, the next few quarters year-on-year growth could be affected on account of this restructuring?

Yeah. Thanks, Amey.

I think just to give the context, right? As we took over the Zuventus in end of Q2 early Q3.

We had got a new management team, and I think Q4 is when we did the restructuring of the whole team and portfolio out there. Most of the slower growth that you are seeing is because of that.

I think ex of the Zuventus impact, for the full year, we would have been close to the 9-10% base business growth that we have been talking about, that we delivered even in the first 9 months. Majority of the decline that you're seeing in Q4 was led by Zuventus.

I think the restructuring was a mix of portfolio restructuring, team refocus, and which led to a higher attrition. We don't think the impact lasts for the full year.

For FY27, what we do expect is we'll continue to growing above industry. As the CEO had mentioned even in his opening statement, April, we are now recovering back on track.

Go ahead.

I think we lost Amey. I don't know.

Thanks for the opportunity. Am I audible?

Yes.

Sir, as far as international market is concerned, if you could just share how much would have been the constant currency growth for each of the segment—Europe, Canada, emerging market? That's my first question, for the quarter.

Sure. I think overall, for the international market, the currency impact was about that 7 to 8% that we had.

It was slightly higher, more about closer to 11-12% in Europe, while Canada and emerging was slightly lower.

Got it. Then considering, let's say, constant currency growth of Europe for almost 20-22% for the quarter, and then we have niche product scale-up that's happening in Europe, what kind of an outlook one can think for next 2 years, '27, '28?

Sorry, Tushar, I missed you in between. You're talking about the overall international markets, or No,

I was referring particularly for Europe, even adjusting for the constant currency, the growth has been great with a good scale-up in certain niche products. Just was trying to understand the outlook for '27, '28 for Europe market.

Yeah. I think in the near term, the growth, we do expect it to be stronger in Europe, especially as ampho gets launched up.

Once it reaches the scale, I think over the next 2 years, we do still expect mid-teens of growth in the Europe business as a CAGR.

That should help to get better gross margins as well? At least for Q4, it is not getting reflected compared to Q3 despite improvement in the overall international business per se.

I think

if you look at it among the business itself, right? Usually, domestic is a higher GC business versus international.

Now, if you look at it, despite the domestic being slightly softer in Q4, our overall GC has improved Q-on-Q. Some of that is reflecting out.

I think for the full year, we do expect the GCs to remain around that 60-plus percent point.

So Understood. Just lastly on the domestic branded play, what kind of industry growth we think would be there for, say, FY27?

I think we continue to expect industry growth to be around that 8 to 9% odd. For us, the target, as we said, target for us is to grow faster than the industry out, to add your low double digits.

Understood. Thanks.

That's it from my side.

Yeah. Am I audible now?

You're audible now.

Yeah. Thank you so much.

I just have one follow-up question on Zuventus. What kind of operational synergies do you expect in Zuventus, will it improve our India margins?

Are you going to consolidate our common molecule brands which are present in both the entities or the MR field force, are you going to cut it down so that could improve the profitability? Any color on that would be helpful.

Basically, let me tell you that as far as we are concerned, Zuventus is a different segment altogether. Just to give you a flavor, as far as Emcure is concerned, essentially focuses on gynae, cardio, and metabolics.

That's what we do as far as Emcure is concerned.

I think we lost I think we lost the CEO. Can you guys hear me?

This is Bik.

Amey, I'll try and take a stab until Satish is able to join back in. I think the synergies are going to be more in terms of how we're organized on the sales and marketing efforts.

I think what Satish was trying to highlight that given these two segments still cater to very different therapeutic segments, on the manufacturing synergies, it's less because we have plants that are catering to specific sets of products on both sides. Definitely, on some of the sales and marketing and related support functions, that's exactly some of the restructuring efforts that are underway to be able to synergize and get some operating leverage in the sales and marketing aspects of the Zuventus business.

Thanks. Just two questions from my side.

Firstly on India, if you can just help us understand slightly more in detail as to how the acquisition of minority stake affected the Zuventus portfolio and the attrition? The second part to it is that of our total MR count, what percentage of field force is for Zuventus, and what is the kind of restructuring we saw there?

Sure. I think what happened along with the minority stake, what we also had was a big change in the management team, right?

Mr. Guha was leading that business since inception.

He stepped down, and we had a new team coming in. I think when the new management came in, we also had a relook at the whole portfolio, the team structure that we had.

I think something similar to what we did in the cardio diabeto when we took over the Sanofi, where we restructured the teams, which division was going to which therapies, what is the focus. That is what we took forward in Q4.

That, I think with the management change and all that restructuring, that is what led to a higher attrition in the field force. As acute is largely a short-term treatment, right?

If you have a gap in the field force, it does lead to a much higher sales drop than what you will see in a normal chronic business. For coming to the question on the field force, about 40% of the field force is in Zuventus for us.

Okay. What percentage of this 40% would have seen restructuring or change in MRs?

I think difficult to put a number, but normally, if you look at it, attrition is about 20% to 30%. The quarter, we had a much higher attrition out there.

No, but having said that

It's not just the attrition. It's also restructuring of couple of the divisions and the products.

I think it's not just the attrition aspect. It's also being repurposed.

There's a little bit of disruption related to that that happens normally as part of any such exercise. I think all in all, what we're trying to highlight is that that was something carried out towards the end of Q3 and in Q4, but is starting to pay us dividends in the sense that for April, as the CEO mentioned, we are right on target in terms of our own internal expectations for Zuventus.

We're very happy with the progress that we're seeing, particularly over the last 45 to 60 days.

All right. Just if you can call out what is our MR strength as of today?

It comes around 40, yeah. Close to 4,000 odd.

Close to 4,000.

Okay. The reason why I asked these questions is that at least with some of your peers, what we've seen is that on the acute side, when we see such restructuring of field force, it does take a while for the productivity to show up because as you highlighted, this is short-term treatment.

A lot of it is based on your relationship with doctors, etc. That is the reason why I was trying to check.

It's good to know that you're mentioning that you're already seeing improvement in the month of April. We basically should not expect this to sustain, right, in terms of impact going into the next quarter?

So

No, we'll be back on track. Again, the other thing that I would like to say, that as Zuventus is concerned, over a period of time, we have built some very strong brands, so that should also take us through.

Though we are in acute, but at the same time, it's a very strong brands. I think that's how Bik was mentioning sometime back, right from April onwards, we are on track, and every reason to believe that things will get better by the day.

All right. Second question, just on our employee expenses, this year's it's probably grown at about 7-odd percentage.

Should we assume this run rate to continue?

We expect it to be around 10%.

Okay. Understood.

Next year.

Understood. I'll get back in the queue.

Yeah. Thank you.

Just carrying forward on domestic growth. For April, can you confirm with Zuventus, the growth is in line with the market, or it is still below market growth, including Zuventus, in the month of April?

Dheeresh, I don't think we'll comment on monthly growth and all, but as the CEO mentioned, right, I think versus what we had targeted out, we are fully on track for that. I think once we have the quarter, that's where we talk about the full year, quarter growth.

Okay. In Q4, did you say that ex of Zuventus, the growth was high single digit?

Did I hear that right, or something like that?

I think what we said is, ex of Zuventus, for the full year, we would have been that high single-digit growth. For

the full year. In Q4?

Q4 would have been about that 7-8%.

7-8%. All right, okay.

Thank you.

Hi, good afternoon. Just a quick question.

You had recently in-licensed this nephro brands from Roche. Could you give a sense of what is the annual revenue run rate for those brands, and also what sort of upfront payment have you made?

Bino, there's no upfront payment that we have made for this, right? I think similar to all the other in-licensing we have done, there is no upfront payment out here.

The portfolio is a smaller scale. It's only two, three key brands, it will be less than 50 cr annualized.

Understood. And

Bino, you know that we have a reasonably strong presence in nephrology. We ourselves are in a strong position, it should help Roche, it should help us.

Got it. A quick question on your guidance of low to mid-teen growth.

What sort of currency assumptions have you made? Does that include the benefit of depreciation of INR?

I think the currency assumption what we're building is average currency of 92 USD-INR.

92 USD-INR. Okay.

Got it. Thank you.

Hi, thanks for taking my question. You had mentioned about certain AI initiatives that are beginning to show results.

If you could provide some color on that, that's question one. Second is in terms of market share in your covered markets, how did that pan out in Q4 and in the full year?

The third is in the semaglutide part that you're talking about, right, how are you seeing catch up post you taking down the pricing in the month of April, given the launch of generics? Are you seeing your market share claw back?

Those are the three questions.

[Siddhant ko bolne do?]

Okay. Let me start on the AI front, and I can have my colleagues join in.

I think the AI initiative, it's very early days, and obviously, AI landscape keeps changing by the day. What we are trying to do is really champion it across the company.

In places like R&D and manufacturing, we are seeing definite benefits in terms of some of the speed of research and development of some of the products and the pipeline that we're working on, as well as in manufacturing, looking at how to, obviously, get better efficiencies or throughputs using AI to study our own batches being produced, etc. Then across the organization, I think whether you talk of support functions like legal, HR, finance, I think we are starting to adopt AI in different ways and means to be able to make our workforce a lot more productive.

Even on the marketing side, whether it's analysis of sales force effectiveness and related sales and marketing initiatives like graphics design or brand plans, etc., these are all areas where we're seeing some adoption of AI bearing some fruit. We're very excited because I think the real benefits of that will accrue over the next 2 or 3 years as we become more and more well-versed in using it more holistically across the organization.

I think to your second question around semaglutide, I'll let my colleagues also answer. Certainly, we wanted to be aggressive in terms of the post-generic entry in terms of offering a very robust price point while still offering the innovator brand.

We are starting to see some green shoots of that as well. I will pause and let Piyush or Satish comment on semaglutide and as well as the last question that you had.

Thank you.

Samit would like to talk about semaglutide. Samit, go ahead.

That's something that is very close to your heart. Go ahead.

No, Poviztra, there's obviously a lot going for that brand. A, it's an innovator brand; B, it's an rDNA biologic versus the synthetic generics that have entered the market.

Now with this price reduction, I think we have a real sweet spot in terms of the pricing vis-à-vis the generics. Of course, across specialties, there's close to 1,000 sales reps that are actively promoting this product.

We believe that all this should get us very good traction over the short to medium term as well.

The other thing I would like to add, only sometime back, we got also permission for MASH. That's one thing that is happening, newer indications.

In addition to that, SEC has cleared, it should be coming anytime. In addition to that, what really happens that in the price war that is going on with so many generics in the market, with absolutely correct pricing strategy, thanks to Novo Nordisk, and reach and penetration, and having got some head start, because we started promoting the product from December onwards, I think going forward, I'm quite optimistic about Poviztra.

We should do well on the back of the clinical data that we have. As far as Novo is concerned, we have access to 40 clinical trials, what they have done all over the world.

As Samit rightly alluded to, ours is a rDNA, rest of the products are synthetic. I think on the back of say science and technology that we'll be talking, we'll distinguish ourselves from the competition, and let's see how it plays out.

At the same time, as I'm talking to you, I'm quite optimistic. Third one, which is, Piyush?

That's

Covered market share.

That's you

Yeah. I think overall, given the Zuventus impact that we had in Q4, our covered market share would have probably been flattish for the year.

Thank you. Thanks for the detailed responses.

Thanks.

Sir, thanks for opportunity. My question is related to the India business.

If we see there are different parts in the India business, like base business is there, then semaglutide, and Sanofi business. Despite all these parts, our growth is just 5%.

I just try to understand what kind of a growth we have seen in base business, then other businesses also. What we are, as compared to our previous questions, we are realizing that the peers, those have acute portfolio, are facing such problems like they're restructuring of a team and all.

The growth is almost delayed for a few quarters. Will you throw some more light on that part?

I think, as you mentioned, right, the restructuring had an impact on Q4. What we are seeing, at least in the last 45 days 40 or 35 days odd of the year, the revival and the business performing as per plan.

I think for us, we don't expect the impact to last a very long time for us. No, but

as I explained sometime back, and I'm sure you must have listened, that we have problem only in Zuventus. As far as other business is concerned, like IB, where we are strong in gynae, cardiac, and metabolics, that continues to perform as per our expectations.

Then our onco and nephrology also is performing as per our expectations. Because of change in management and restructuring that Bik so eloquently explained, we had a bit of a setback as far as Zuventus is concerned.

As I told in my opening remarks, right from April onwards, we are on track, nothing to worry, really.

I would like to just clarify one point. The acquisition of the minority stake and the departure of Mr.

Guha happened in the month of October. This is not a recent departure, and therefore, we're concerned about the lagging effect of that over the next 2, 3 quarters.

What we're trying to highlight is some of this started already in, let's say, end of our Q3, carried into predominantly Q4, where we took the efforts over the prior 3 months in Q4 to have a lot of that restructuring take place. Now we're seeing the green shoots of that.

From our perspective, we think that Zuventus is more or less back on track starting in Q1 itself, as opposed to being concerned that this is going to be a, let's say, 2, 3-year additional quarters lag. We're already about 4, 5 months into that entire process.

My assessment is that we are almost lost 80 to 90 crore of a business in the first quarter sorry, in the last quarter, Q4 of our quarter, from the Zuventus side. Behalf of that, we have grown in the semaglutide side and others also.

This growth should be on the higher side.

Piyush, did you follow the question? Yeah.

I think Poviztra, the semaglutide side is still ramping up, right? It's not a big driver for or a big contributor to growth at this point.

I think as what we talked about even last time, the initial few months, it was more about market shaping and building the business and all. Then March onwards, there was anticipation of generics coming in, there was a price cut.

Q4, we didn't have that much of a semaglutide delta in the business out there. I think what it's highlighting is, ex of Zuventus, if you look at it, our domestic business is growing at that high single-digit, low double-digit rate on an organic basis itself.

Thank you, sir. Thank you very much.

Thank you for the opportunity. My first question is on the domestic side.

If you can quantify the contribution of these in-licensing products to the domestic business?

The in-licensing make up for the domestic about 15% of our sales.

Okay. Are we still scouting, or are we still interested in doing more such in-licensing deals in the near term?

I'll take that question.

Madam,

we are concerned, the entire focus will be on organic growth, build our own brands and take them to the next level, also launch the products from our R&D. At the same time, suppose if something comes in in-licensing, we are obviously pretty open.

Because let me tell you, getting the cardio portfolio from Sanofi has obviously given a fillip to our products as well, that has worked out well. As far as metabolics are concerned, we hardly had any presence before we got metabolics portfolio as in Amaryl and Cetapin from Sanofi.

What really happened, on the back of this portfolio, my own products with good GC have also started doing well. I think, while the emphasis will be obviously on organic growth and focusing on our big brands becoming bigger, but at the same time, as I've mentioned in the early part of this address, in-licensing will continue to be part of our strategy going forward wherever it is going to be accretive and going to add value to our current portfolio.

Sure. On this Poviztra brand, how should we look at it?

Despite the competition, but then we had a price cut, and we had some encouraging results out of it. Do we see it becoming a meaningful contributor in the next couple of years to the domestic sales?

I think so, because what really happens, thanks to Novo Nordisk, the pricing is very competitive. As the market crowds, and most of the people will be talking about, say, price war is going to happen in times to come.

As far as we are concerned, we'll talk about the merit of the product, which is rDNA product, not synthetic, backed by a lot of clinical data. We'll be differentiating ourselves on the back of science.

We'll be talking to the doctor. To that extent, as I'm talking to, every reason to believe that this product should do well going forward for us.

Go ahead.

I was just going to add that as you've already mentioned, as the indications of use continue to widen, and more and more specialists become comfortable writing the brand, that's where we think we will continue to gain momentum with this brand as well.

Sure. My second question is on the R&D pipeline towards ADC.

If you can just explain what part of the ADC are we in house into, and when do we see this getting commercialized? How long is it for the commercialization today, please?

Sure. There are two parts to the ADC program.

One will be a biosimilar ADC, and the other will have some element of innovation in it, especially the linker around which we have our own IP. The linker and payloads will be in house, the conjugation will be done in house.

For the mAb, since it's a crowded market with available drug substance, we are partnering with a company to work on the mAb. In that context, the biosimilar ADC should have a shorter approval pathway, and the innovative ADC, of course, will be slightly longer.

We've seen some encouraging results in terms of identifying some potential lead candidates.

Okay. By when do we expect commercializing these products?

Is it in the near couple of years' time?

The biosimilar ADC, the only reason I'm not giving out a very specific timeline is because the regulatory landscape in India itself is evolving. Many countries globally have done away with phase three trials, which are typically the most expensive studies, which have the longest timeline as well.

If there is some regulatory pathway that is similar to these countries, then it could take away a significant portion of the development timeline. There's no point in trying to guess where and at what time these paths will coincide.

It could make a significant difference in the approval timelines with and without a phase three. It may not be accurate to give out a timeline, but obviously, the biosimilar will be earlier than the novel one.

Okay. Lastly on the capex front, if you can just give us the capex expected for FY27?

Yeah. I think

I think there we continue to guide around that 400 cr rough number. I think we'll broadly be in that range of 400, 425-ish crores.

Sure. Okay.

Thank you. Thanks a lot.

Yeah.

Yeah. Hi, good afternoon.

My first question is around the assumptions on your guidance. You said barring any geopolitical events, but as we speak, there are geopolitical events afoot that might just push up the prices, or would have already pushed up the prices of some raw materials.

How much of some of the price or cost increase would be already built in your guidance?

Kunal, I think couple of factors, right? One is, I think given the nature of the business and specially some of the markets we are in, for most of the markets, we do have between one to two quarter of inventory.

At least I think for next one or two quarters, we don't see much of a impact coming through. I think post that, obviously we'll have to see if this price elevation lasts across raw material, and how much we can pass it on to the customer side.

You would have seen even in the domestic market, the IPA has reached out for price hike. I think we are also looking at what we can do even in the international markets.

It's still a evolving phase. At this point, we don't think unless it deteriorates further, it should not be a major impact, but we'll have to see as it evolves.

Kunal, one more point that I would like to add. This a industry-wide problem, is not restricted to one company.

The advantage that we will have that we are not in a purely generic-generic market, because we are having differentiated products. To that extent, our ability, that's what I presume, I don't know how it plays out, will be better in terms of asking for higher price going forward.

As far as India is concerned, this a industry-wide problem. IPA has very proactively taken up with the government, and we are also involved in the negotiation.

Let's see how it plays out going forward. It's a industry-wide problem.

Understood, sir. Understood.

Sir, second question is I think you were looking to file for semaglutide in Canada. Now with a couple of approvals, it might be a bit late, I guess.

What is the path ahead? Would you be kind of now partnering with someone, maybe as a marketing partner, or what's the path ahead?

Bik, would you like to take that?

I can take that. In fact, in Canada, both Apotex and Reddy's did get the approval very recently.

You'll be happy to know that our Mantra subsidiary in Quebec has partnered with Dr. Reddy's and will be launching the product hopefully sometime in Q2 and then ramp up from there.

We are obviously filing our own product in Canada as well for addressing, I think, the more mid-term opportunity throughout Canada. We're very, very excited about our partnership with Dr.

Reddy's to be able to capture a decent market share in the Quebec market, where we anticipate that the pricing dynamics will be more favorable there relative to even the rest of Canada. It just shows you the strength of our team that DRL has chosen to partner with us for trying to capture that early mover advantage in the Canadian market.

That's good to know. Would it be like a profit-share kind of an agreement or more of a fixed marketing margin kind of an agreement?

Yeah. I don't want to specifically comment on the deal dynamics.

I think it's early days, but I think it's a decent opportunity for us for specifically the Quebec region. I think only time will tell how lucrative that can become.

Obviously, at the same time, I must say that early days, there was a lot of numbers being thrown around for the Canadian market. Obviously, some of the pricing has corrected a bit.

We think it's still a decent opportunity for us, looking at the dynamics of the deal, as well as longer term when we anticipate entering at some point in the future with our own product to address the remainder of the market.

Got it. Got it, sir.

Thank you, and all the best.

Yeah. Hi, good evening.

Thanks for taking my question. My first question is in continuation with the previous participant's question on the impact of business because of the Middle East conflict.

I just wanted to know whether are you facing any constraints in terms of container availability or raw material or even people in your factory? Is there any impact on the business because of that?

I don't think we're seeing any supply issues right now. I think the impact that we have is largely more on the pricing front.

We have not seen any impact.

No, again, supply is in the sense in a limited sense, what is really happening, the prices have shot up. The solvents are not available that we require for active pharmaceutical ingredients.

That is industry-wide problem that we are facing. Even for that matter, one must admit, the insurance cost and the freight cost has also gone up because of the longer route which is required to be taken.

At the same time, it's difficult to opine what is the impact as of now. As Piyush rightly mentioned sometime back, we are carrying inventory everywhere.

If war continues for a few months, I think the entire industry, not necessarily pharma, all of us are going to be impacted.

Right. No, for example, costs like you mentioned freight and insurance costs and all, these are inventory independent.

In these kind of cost increases, are you able to pass it on, or are you taking it right now on your P&L?

I think it's a mix. I think the guidance what we are guiding out includes what we are seeing in terms of the pricing.

Okay. As far as for your domestic business, if you have any CMO partners in India, are you facing any bottlenecks from those partners?

No,

as of now, no.

Okay. My second question is on the FDA announced some development on the biosimilar front where they reduced the R&D for development of biosimilars.

Just your opinion on how does it impact the new entrants or the incumbents differently, if you can just talk about that a little bit?

Yeah. I think many companies will now find it a little more lucrative to enter the biosimilar space because, like I was previously mentioning, phase three, which is essentially an efficacy study for a lot of biosimilars could possibly be waived off.

That was the largest component in terms of both cost as well as elongating the timelines. Once that goes away and we see more approvals coming through that have been filed without the phase three or with the waiver, then definitely the biosimilar space will heat up a little more.

That said, that's where company like Emcure, Gennova will have the advantage given that we have been in this business for quite a long time and have developed strong expertise on both the mammalian as well as the bacterial platforms, off which most of the biosimilars are anyway produced. In terms of maximizing or optimizing the titers, the yields, the COGS, we're there.

Even with competition being very intense and COGS playing a major role, we should be able to thrive in the market going forward.

Understood. Thanks.

I'll get back in the queue.

Okay. This is Satish Mehta.

Thanks for very active participation. I would like to reiterate that we have delivered strong growth in FY26, which has exceeded our initial guidance.

I understand your concern about Zuventus, but I would like to again reiterate, we are in good shape. April has been as per our expectations, and I believe we will deliver the growth as per the guidance which has been given by the company.

Nothing to worry as far as the domestic business is concerned. With our diversified business model, as we kept on talking about our pole position that we have in Canada, Europe, and emerging market, I believe we are very well positioned to continue our growth trajectory.

As Piyush mentioned and as I also mentioned in my initial remarks, low to mid-teen growth with continued EBITDA margin expansion in FY27 will keep on working. That is something which will happen.

As we mentioned, the entire focus will be on execution, processes, and people, and growth will be fairly well diversified because the company and the business that we have built, we are very strong four verticals as in domestic market, which I love, we should keep on doing better and better as we go along. At the same time, excellent position in Canada, Europe, and emerging market that we have, to that extent, business is in good shape, and we should deliver results as per the expectations of the market going forward.

Thank you very much for giving patient hearing, and looking forward to interacting with you from time to time. If you have any follow-up questions, kindly feel free to reach out to us, and we'll be more than happy to answer.

Thank you very much.