Thank you, Lizanne. Good morning, everyone, and welcome to the Q3 FY26 earnings conference call of Glenmark Pharmaceuticals Limited.

Before we start the Q&A, let's review the performance for the quarter. For the third quarter of FY26, Glenmark's consolidated revenue from operations was at ₹39,006 million as against ₹33,876 million in the corresponding quarter last year, recording overall YoY growth of 15.1%.

For the nine months of FY26, Glenmark's consolidated revenue is at ₹1,32,119 million as against ₹1,00,655 million, recording a YoY growth of 31.3%. In terms of our regional performance, starting with India, sales for the formulation business in India for the third quarter of FY26 was ₹12,986 million as against ₹10,637 million in the corresponding quarter last year, recording a YoY growth of 22.1%.

In terms of secondary sales, Glenmark continues to significantly outperform the IPM in terms of YoY growth. As per IQVIA, Glenmark's India formulation business recorded a growth of 15.8% in the third quarter and 13% as per MAT December 2025 compared to the overall market growth of 10.9% in the third quarter and 8.3% as per MAT December.

Glenmark continues to outperform the overall market in its key therapeutic areas like dermatology, respiratory, and cardiac. Glenmark's India business is ranked 13th with a market share of 2.32%.

The company has 11 brands in the IPM top 300 brands as per MAT December data. In terms of its key therapeutic areas, Glenmark is ranked second in dermatology, second in respiratory, and fourth in the cardiac segment as per IQVIA third quarter data.

In terms of new product launches, in Q3, Glenmark announced the launch of Nebsmart GFB Smartules and Glenmark Airz FB Smartules, the world's first nebulized fixed-dose triple therapy for the treatment of chronic obstructive pulmonary disease or COPD. Both products combine three proven medicines: glycopyrronium, formoterol, and budesonide to reduce airway obstruction, inflammation, and improve lung function.

In a clinical study conducted in India, this nebulized triple therapy demonstrated rapid improvement in lung function and better control of breathlessness among patients. The treatment was well tolerated and demonstrated a good safety profile, offering patients a simpler and more effective way to manage COPD.

In terms of some of our other key products, particularly on the innovative/specialty front, Tevimbra, Brukinsa, which we partnered with BeiGene and launched in the first quarter, in a short period of time, these two brands have seen a very strong uptake in the market as a differentiated treatment option for patients across multiple solid tumors as well as hematological tumors. The company expects these two brands to meaningfully contribute to the India business growth over the next two to three years.

Lirafit, the company was the first to launch the biosimilar of Lirafit, continues to hold a clear market leadership position in the liraglutide market and gives a good segue for the company to launch other GLP-1 agonists also. Zepras, which Glenmark partnered with Pfizer and launched in January 2024, this continues to be well received by dermatologists as a novel treatment for moderate-to-severe atopic dermatitis with improved efficacy as well as oral convenience to patients.

In terms of the consumer care business in India, the GCC business delivered sales growth of 21.5% YoY. The flagship brand, Candid Powder, delivered a strong revenue growth of around 17% in the third quarter and now holds more than 56% market share as per IQVIA data.

Scalpe portfolio also delivered strong revenue growth of 50 plus percent in the third quarter. Some of the other brands like Bontress, Aloevera, Episoft also delivered high double-digit growth during the third quarter.

Moving on to North America, the North America business recorded revenues of ₹9,706 million for the third quarter of FY26 as against revenue of ₹7,813 million for the third quarter. This includes the out-licensing income for ISB 2001.

Net of that, the core business YoY growth for the North America region was 4.1% in the third quarter. Glenmark launched four products in Q3, all injectable products, which included sodium bicarbonate injection, ropivacaine injection, epinephrine injection, and leucovorin calcium injection.

Two ANDAs were filed during the quarter. Glenmark plans to file three ANDAs in the upcoming quarter.

In terms of our respiratory portfolio for the US, Glenmark has filed two ANDAs for generic nasal spray and is awaiting approval for the same. The company has already filed the ANDA for generic Flovent 44 mcg in May 2024.

In Q3, we also filed the ANDA for generic Flovent 110. The company is also working on other respiratory products which are in the pipeline and will be filed over the upcoming quarters.

Glenmark's marketing portfolio consists of 214 generic products, and company currently has 53 applications pending at various stages of the approval process. In November 2025, Glenmark announced that it had received the EIR from the US FDA for its formulation manufacturing facility in Monroe, North Carolina with a voluntary action indicated or VAI status.

With this positive development, the company will restart manufacturing at the Monroe site. Moving on to Europe, Glenmark's Europe operations for the third quarter of FY26 were at ₹7,963 million as against ₹7,297 million, recording a growth of 9.1%.

There was a recovery in the European business during the third quarter, particularly due to the onset of the winter season, which aided the growth of the respiratory portfolio. As per the secondary sales data, Glenmark continues to outperform its covered market in CEE countries such as Czech Republic, Poland, and Slovakia.

There were five new product launches in that region, which also aided the growth. In the generic markets of Western Europe, Glenmark's performance remained stable with strong achievements in Germany and the Netherlands.

The branded respiratory portfolio in Western Europe also sustained its momentum. Glenmark continues to focus on increasing contribution from branded markets and portfolio in Europe.

Glenmark announced the launch of Winlevi in the UK market earlier this year, and the brand has seen a strong uptake throughout the year in the UK. In October 2025, Glenmark's partner Cosmo received marketing authorization approval for Winlevi in the European Union as well.

Glenmark is now planning to initiate the commercial launch in its licensed European territories by Q1 FY27. Moving on to emerging markets, for the third quarter of FY26, revenue from the emerging markets region was ₹8,119 million as against ₹7,491 million for the corresponding quarter last year, recording a growth of 8.4%.

Our Russia business continues to perform well. As per the IQVIA secondary sales data, Glenmark's Russia business recorded growth of 15.1% in Q3 and MAT December.

In its core therapeutic areas of dermatology, Glenmark recorded faster secondary sales growth than the overall market. Glenmark continues to rank ninth in dermatology and second in the expectorant market.

Ryaltris as one of the key brands in Russia continues to gain share. The Latin America region delivered high double-digit growth in the third quarter.

Key markets such as Brazil, Mexico witnessed a strong recovery on the back of multiple differentiated product launches in the respiratory segment. Ryaltris again is a key brand here, particularly in Mexico, and is awaiting approval in Brazil and is expected to help sustain the high growth in the region.

In the Middle East, Africa region, secondary sales growth remained subdued in key markets mainly on account of some new product launch delays. Ryaltris, however, continues to see strong pickup post its launch in key markets in the region such as Saudi Arabia, and it's still the leading allergy product in South Africa.

The region is expected to show gradual recovery towards growth starting in the fourth quarter. Key markets in the APAC region such as Malaysia, Australia recorded double-digit secondary sales growth during the third quarter.

The overall region is expected to maintain strong performance in the forthcoming quarters. Glenmark continues to remain one of the leading dermatology and respiratory companies in the APAC region.

A quick update on our global innovative portfolio, starting with Ryaltris. As of December 2025, marketing applications for Ryaltris have been submitted to more than 90 countries across the world.

The product has been commercialized in 52 markets and is expected to be launched in additional 10 to 12 10 to 12 markets over the next few quarters. In Q3, we launched Ryaltris in three additional markets, including Colombia.

As per the IQVIA data, Ryaltris continues to see a robust performance both in terms of value and unit market share and has recorded global secondary sales growth of 50% plus YoY. Glenmark's partner companies across Europe and emerging markets continue to witness a steady increase in its market share in all licensed markets.

Glenmark and its partner in mainland China, Grand Pharmaceutical, secured approval for Ryaltris in October 2025. The product is expected to be launched by Q1 of FY27.

Glenmark's partner in Thailand, Organon, is also planning to launch Ryaltris in Q4 of this year. Winlevi, as mentioned earlier, company launched Winlevi in the UK market in Q1 and saw strong uptake throughout the year.

Glenmark's partner received marketing approval for Winlevi in Europe, and Glenmark is planning to initiate commercial launch in its licensed European territories by Q1 of FY27. Winlevi is currently under regulatory review in South Africa as well, where Glenmark has the commercial rights.

Envafolimab, Glenmark has filed Envafolimab marketing applications in 18 markets to date. The first commercial launch is expected in FY27.

The company has received authorization from the regulatory authority in Kenya, Mauritius, and Uganda for supply of Envafolimab via early access programs or named patient programs. As announced earlier, Glenmark has also initiated a global multicenter Phase 3 study in resectable Stage III neoadjuvant or adjuvant non-small cell lung cancer.

Trastuzumab deruxtecan partnered with Hengrui, in Q3, Glenmark advanced its preparations for the initiation of marketing applications for trastuzumab deruxtecan, a next-generation HER2-targeting antibody-drug conjugate which was in-licensed in the second quarter from Jiangsu Hengrui Pharmaceuticals for several emerging markets. The company expects the first wave of MA applications to begin in Q1 of FY27.

Lastly, aumolertinib partnered with Hansoh, in the third quarter of FY26, Glenmark entered into an exclusive license and collaboration and distribution agreement with Hansoh Pharma Group for aumolertinib, a third-generation EGFR tyrosine kinase inhibitor for the treatment of non-small cell lung cancer. Glenmark gained rights to develop, register, and commercialize aumolertinib across Middle East, Africa, Southeast Asia, Australia, New Zealand, Russia, CIS, and a few selected Caribbean countries.

Aumolertinib was approved in the UK in June 2025 for the first-line treatment of adult patients with locally advanced or metastatic non-small cell lung cancer with activated EGFR mutations and the treatment of adult patients of locally advanced or metastatic EGFR T790M mutation-positive NSCLC. Hansoh has also received positive CHMP opinion in the third quarter with an MA approval expected in the fourth quarter.

Aumolertinib is approved for four indications in China and is already marketed in China. Glenmark is preparing to initiate marketing authorization applications for aumolertinib in the first half of CY2026 and commercial launch anticipated during the second half of FY27.

Lastly, on Ichnos, Glenmark's Ichnos features a robust pipeline of innovative oncology molecules targeting multiple myeloma and solid tumors. Ichnos also has two autoimmune assets which have been out-licensed to leading companies and are in clinical development.

For ISB 2001, Ichnos is currently executing the Phase 1 study in Australia, United States, and several European countries. The study continued to dose expansion in April and is continuing to rapidly enroll patients.

Our next clinical molecule in oncology, which is ISB 2301, part of the IMMUNITE platform, this is a first-in-class multispecific NK cell engager developed for solid tumors and the first program from Ichnos' IMMUNITE platform. As mentioned earlier, a clinical candidate was selected in October 2025.

The program has now entered IND-enabling stage, and we are expecting to file the IND before the end of calendar year 2026. In terms of our immunology portfolio, ISB 880, which is partnered with Almirall, Almirall's Phase 2 clinical study in hidradenitis suppurativa continues to advance with ongoing patient recruitment and dosing, reinforcing the program's strong operational progress.

Almirall also plans to initiate POC for additional inflammatory skin diseases for ISB 880. ISB 830, Phase 1 trial was initiated in the first quarter of calendar year 2025.

Astria presented initial data at the EADV conference in September 2025, and now they're working to actively evaluate the most promising path forward for this molecule to accelerate the development. From the Glenmark management team, we have Glenn Saldanha, Chairman and Managing Director, and Anurag Mantri, Executive Director and Global CFO.

I'll now hand it over to Glenn for his opening comments.

Thank you, Utkarsh, and good morning, everyone, and welcome to the Q3 earnings call. If I look at the third quarter, we delivered strong growth in the third quarter with broad-based growth across most of our markets.

While the overall geopolitical uncertainty remains prevalent, depreciating global currencies helped our overall performance during the third quarter. In the third quarter, we continued to launch some very exciting innovative products in our core therapeutic areas, such as GFB nebulizer in India in the chronic respiratory segment.

Also, some of the products that we launched earlier, Tevimbra and Brukinsa, continue to drive our India performance. The positive outcome at Monroe has long-term strategic value for our US business.

In this quarter, we also partnered with Hansoh for aumolertinib, which is a third-generation novel EGFR. We're pretty excited about this asset because it will come to market in the second half of FY27 and can significantly enhance our overall innovative franchise.

If you look at innovative franchise, we have about seven, eight products, innovative-led global assets which will drive our sales growth over the next five years, primarily in the areas of oncology, dermatology, and respiratory medicine. On the back of 2001, we continue to do exceedingly well with our IGI platform.

2001 is progressing well in terms of the dose expansion study, and we're expecting 2301 filing by the end of this calendar year, which we're pretty excited about. Going forward, we expect a strong finish to FY26 with a good growth, particularly in the US via some of our respiratory launches that we are anticipating in the fourth quarter of this year.

Our India business continues to outperform the market, and we see good long-term growth levers, especially in chronic respiratory and our oncology franchise. We think Tevimbra, Brukinsa is the first launches.

We will also launch eventually aumolertinib and the Hengrui asset and various other assets in India, which will drive the sales of our India franchise. We see very strong growth coming out of India over the next five years.

We will also launch aumolertinib in the second half of FY27, and we'll keep scaling up Ryaltris and Winlevi going forward. Ryaltris will be a $100 million product for us this year and continues to scale as we go forward.

In summary, the next five years continue to remain pretty exciting for Glenmark in terms of growth, performance across all the parameters. We continue to move up the value chain, especially with our innovative franchise over the next five years through these seven, eight launches, which will clearly define the company and the future as we go forward.

We clearly remain on track to achieve our overall objectives that we laid out as part of Glenmark 3.0. With this, I'll hand it over to Anurag to give his opening comments, and then we can take Q&A.

Thank you, Glenn. Good morning, everybody.

We delivered on our near-term guidance with a strong revenue performance and a margin profile of 23% in this quarter. The business growth was helped in part by the currency depreciation across our key geographies.

However, our base business performance continues to remain strong, especially in key branded markets. Our gross margin in current quarter was impacted by the product mix.

However, we saw a good operating leverage, which helped in overall margins. We continue to remain net cash positive and are on track to target the gross debt zero by March '26.

Multiple initiatives are ongoing to help normalize working capital movement to remain around 115 115 days of net working capital days in line with our guidance by March '26. We remain confident of closing our FY26 on a strong note and foresee a good start to our next growth journey of Glenmark 3.0 from 2027 onwards.

Thank you. Utkarsh Gandhi (Senior General Manager, Investor Relations for Glenmark Pharmaceuticals Limited):

Thanks, Anurag. With that, I think we can open the floor up for Q&A.

Lizanne, over to you.

Hi, good morning, and thank you for the opportunity. My first question is on your commentary on gain from currency depreciation during the quarter.

If you can just quantify how much was that, and excluding that, what kind of growth we would have recorded?

Damayanti, currency depreciation goes into the multiple part of the P&L. In a normal business case, whatever the revenue and in terms of converting that revenue from that geography into the rupee terms, that goes and sits in the normal EBITDA side.

If you see on exceptional items, there is a currency difference of 7.3 crore, which is only on exceptional items. Out of exceptional items, 177.8 crore is due to the labor cost and balance 77 sorry, 7 crore is because of the exceptional item.

It fits into the multiple part of the businesses, and it's difficult to actually quantify that way.

Okay. My second question is on the Flovent status from the FDA.

Since your last communication, have you heard anything incremental, and when do you expect the agency to come back with its decision?

All I can say is we've had multiple discussions with the agency, and we're hoping we'll get an approval very quickly on Flovent 44.

Glenn, you mentioned respiratory will be significant in the fourth quarter. Flovent will be part of that?

We're hoping that Flovent is part of it, but we also have the nasal spray and various other products in the respiratory franchise which could get approved in Q4.

Okay. My last question is on your working capital management.

You mentioned 115 days is something which you're targeting by March '26. In terms of key changes and progress, what are the key initiatives and how things are shaping since last quarter when we had some right of expected?

If you can just talk a bit about your working capital management part.

Damayanti, we have initiated multiple options basically. One was on the sales side basically to get the debtors reduced, and that is through the factoring and some of the other instruments.

Including the other market like Europe and LatAm, which we were not doing earlier, and which obviously we will be very cost-conscious on this part. That's one on the sales side.

Similarly on MSME and vendor side also, we are trying to elongate the payment cycle through the RBI-related legitimate channels, which is include vendor financing and some of the vendor bill discounting sort of thing. Which will help us to move both on a sales side as well as on a purchase side to reduce the working capital cycle.

Okay. As of December, where do you stand against this target of 115 days?

Right now, we are actually again lower than 115 days, but as the business activities increase, that's why we are keeping, but right now we are close to 110 days.

Okay. Thanks, I'll get back in the queue.

Thanks for the opportunity. Sir, on Monroe, now that US FDA issues are behind, what would be the sort of trajectory in terms of business, I guess product approvals system outcome.

How do we start the commercial production and all?

I think we will start commercial production in this quarter, and we have one or two approved products, we will start commercializing that. Next year, you can anticipate we will sell about three products with a number of filings, right, next year.

I think the way to think about Monroe is it'll take some time, right, for the site to be in full flow, right, in terms of commercial production. At the operating level, I would say about four years, right, from today, we'll break even at the operating level.

Also, how do you intend to increase the number of filings from this site maybe over next 12 to 15 months?

I think every year, we will have at least three-odd filings, right, from the site, and we're working specifically on very complex injectables, right? We're not doing any run-of-the-mill product.

That is further enhanced the filings.

Got it, sir. Sir, secondly, Ryaltris, you highlighted it's $100 million product now.

Major geographies and their contribution, is there any geography which is contributing, say, more than 10, 15%? If you could just refresh that.

It's pretty broad-based. Europe obviously is a big driver along with some leading emerging markets like Russia, Australia, and multiple other countries, right, where the bulk of the sales are coming from.

I think it's pretty broad-based overall. There's no geography which is more than 20, 25% of sales, somewhere thereabouts.

Got it, sir. Lastly on gross margin, if I exclude the out-licensing income, the gross margin while it's highlighted that it's a product mix, but is there anything further?

Because without the out-licensing income, the gross margin is much lower at 65%.

It's largely because of the product mix and the geographical mix because of that. I think we are on track.

I think you will see a recovery on this, and what we say our guidance is the overall at EBITDA level, we are on track to deliver our guidance of 23% in a sustainable basis.

Also, just one point on gross margins. If we get these new product approvals, right, in Q4, you'll see a definite uptick in the gross margins.

Got it, sir. Sir, just a request and a suggestion that if you could put the R&D expense in the presentation or the press release itself, given that it's a core sort of for Glenmark Pharma, it would be good instead of putting it in the opening commentary in the presentation.

Sure. Utkarsh Gandhi (Senior General Manager, Investor Relations for Glenmark Pharmaceuticals Limited): Tushar, and just to reiterate, R&D for this quarter was 290 crores, total R&D.

Yeah. Thank you.

Thank you to both.

good morning. Glenn, in Europe, you have shown a rupee growth of around 9%, but I think rupee depreciation would be around 15%.

Did you decline in constant currency in Europe?

See, I think the way to think about Europe is we've had a phenomenal last three years or four years, right? The business has done exceedingly well if you look at our European business, right?

Given that, the first half, we've had some challenges in terms of growth, right, in the first half. Going forward, I think Europe, you should expect a single-digit to low double-digit growth from here, right, given that we've grown over 25% CAGR over the last three, four years.

Sure. I think you had earlier mentioned that maybe in the medium term, it can grow in double digits.

Is it because launches are a bit slow? See, '26, I can understand from a base of '25, but what about FY27, '28?

Can we still grow in double digits?

I think we can grow double digit in Europe. The key is we're waiting for some new product approvals, right?

For example, in FY27, we should have at least a couple of respiratory product launches, right, which should drive Europe. Also, Ryaltris, we should see some incremental growth coming in Europe in FY27 and beyond.

Winlevi also will contribute, right? We're just launching Winlevi in UK and in Europe.

Overall the business should continue to do well, right? Just to be conservative, we are saying high single digit to low double digit, right, growth for Europe going forward.

Increasing contribution of branded market will lead to this, actually.

Fair enough, fair enough. Sir, secondly, on the ISB product, 830 and 880, and I see both products are progressing well now.

Can you share what can lead to milestone payments for you?

We don't give any visibility to specific milestones, right, as a company. We've stayed away from that.

I think, look, I think the takeaway message is we have three innovative assets, all progressing well in the clinics, right? So 2001 continues to do well for us.

Additionally, 880, with Almirall starting the Phase 2, that's an exciting asset. Then of course, 830, right?

We have these three assets in the clinics. Hopefully this year by the end of this calendar year, we'll have 20 2301 also going into the clinics, right?

We have a good pipeline of innovative assets from here on, right? I think from a commercial perspective, the way to think about it is the next five years, right, will be contributed by these seven, eight innovative assets, right, the Hansoh, Hengrui, envafolimab, Ryaltris, Winlevi, Tevimbra, Brukinsa.

These are the next five years. Then post that, the following five years will be all about 2001 and some of these immunology assets and some of the rest of our portfolio.

I think that's the next 10-year journey, right, for the company, right, on the innovation side.

Sure. Just one more if I can.

You have increased your filings base in the US, can I ask from which plants are you doing the filings, because Indore, Baddi, Goa still, I think, under regulatory scanner?

I think the way to think about our US business is there are two plants, Aurangabad and Monroe, right, where the bulk of our filings are coming out of. Goa and Indore are under warning letter, we've tech transferred some of the products to some US CMOs, and we got a sucralfate suspension approved which was from one of the warning letter sites.

Likewise, we have some other products which are tech transferred to US CMOs. Baddi, we have completely discontinued US commercialization, our and filings.

Sure. That's very useful.

Thank you, and all the best.

Good morning, and thanks for taking my questions. Just some numbers, this 290 crores of R&D, if you can split between Ichnos and the rest of the business?

Around 50% this was IGI related.

Okay. The second one was regarding your other expenses, which seem to have come off year-on-year basis despite currency depreciating and that would cost in many of your international markets.

If you can give some color on why the other expense is coming down and how should we think about that going forward?

Other expenses broadly it remains in line, but if you see on a quarter-on-quarter basis, sometimes because of approval and the phasing of the expenses, sometimes it goes lower, but I think overall we should see a inflationary-related impact on the other expenses. This quarter, it looks lower, but I think it's more a phasing and booking issues.

Okay. Finally, sir, if I can ask, if you can share the net cash number and also the CapEx that you have done for this year, both tangible addition and intangible addition, please?

CapEx in this quarter was around 215 crore and YTD CapEx was 715 crore. On this quarter CapEx, around 55% was on intangible and 45% was tangible.

That's what the broadly CapEx number was. On net cash, if you see, we remain net cash positive.

In fact, gross debt was close to around 100 and net cash was also close to 600 crore. In fact, we had a large payment in this quarter of around 1,250 crore, which includes IGI tax, dividend we have paid, we had a CapEx amount.

Despite that, actually we remain on cash overall net cash positive.

Sir, what is the net cash number you said?

Around 600 crore.

Utkarsh Gandhi (Senior General

Manager, Investor Relations for Glenmark Pharmaceuticals Limited): Saion, gross debt is about 600 crore, and net cash is around Around 1,200 crore of cash.

Okay. Okay.

Just in terms of your future liabilities, what should we sort of pencil in, because some of the licensing deals that you have done from various companies in the recent past, and also some liabilities related to litigation. If you can have some visibility for this year, next year, how should we think about payouts if you have to factor in?

I think just couple of things, right? On the legal settlements, obviously, Sayan, we can't give too much of visibility, right?

However, if you look at the MDL, right, we have done a settlement with the DPPs, that's public information, right? We still have some of the other classes to go, right, which is mainly the AGs and the EPPs, right, on the MDL, which is probably the largest right now in terms of legal cases.

That's on that side. On the innovation side, with us doing these three transactions, right, the Hengrui transaction, obviously, some of it is built into the intangible numbers that Anurag mentioned.

Aumolertinib, we're still in the process of paying that. I think that is

a Timing-wise, it could be in this quarter or it could be early next quarter. I think because it's difficult to actually give you the specific because it depends on the commercial progression of the deal.

I think it could be somewhere at the end of this quarter or early next quarter, accordingly.

Then going forward, beyond that, Sayan, the next big milestones are all linked to the launches of these products, but we don't anticipate any big amounts being paid on any three of these assets, right? I think that's kind of where we stand.

It's more back-ended, royalty-based, and sales-linked milestones and which are the drivers to the numbers.

All right, sir. Okay.

Thanks a lot. I'll join back.

Thank you for taking my questions. I have two questions.

The first is on your specialty business, the seven, eight innovative assets which Glenn mentioned earlier. If you could just broadly, directionally tell us in terms of how the gross margin levels would differentiate from the rest of our portfolio in these seven, eight innovative assets, including the ramp-up we've seen in Ryaltris, and where you can see the gross margin eventually settling as we scale up these seven, eight assets?

I think that's a very good question. Look, see, the gross margins are significantly higher than where we are today, right, the core business, right?

I think more than the gross margins is also the EBITDA margins will be significantly higher. There will be a definite margin uplift, right?

I would anticipate a lot of this will start playing out from FY28, not '27. By '28, you'll have aumolertinib fully commercialized in many, many markets as well as the Hengrui asset starting to commercialize in some of the markets by FY28.

I think the real uplift in the margin profile of the company will happen from the current 23-odd levels, right, will happen from FY28 onwards.

Okay. No, that's helpful, Glenn.

If you could throw some light on how the Ichnos quarterly revenue and cost will be accounted for going forward in terms of how we're recognizing the AbbVie payments? If you could just explain on the accounting for the next few quarters, revenue and cost, both.

On a revenue side, whatever, as you recall, the upfront payment which we got, we booked $525 million last quarter last quarter. Now there would be a equalized run rate of $17.5 million every quarter.

On expenses side, we get a reimbursement, but which reimbursement we net it off and goes into the other expenses. That does not go impact the top line and bottom line simultaneously.

That actually gets netted off as per the reimbursement part in the other expenses.

That's very helpful. My last question was, what will be the number for the Ichnos quarterly cost that we spend going forward for the next three to five years?

We've guided to a $70 million run rate, right, in terms of burn for IGI, right?

Annualized $70 million,

we'll stay within that.

We are booking the exactly $17.5 million per quarter, which is again $70 million every year. That's how we are booking the revenue also.

Good morning to the team. I have two questions.

The first question to Mr. Glenn is across Glenmark's core business, you have spoken extensively about the portfolio focus and therapeutic priorities.

Just want to understand the key tradeoffs you are currently making between investing behind scale in established markets versus nurturing newer therapies in newer areas and what internal signals would you lead to rebalance the capital or management attention between these two sectors? Thank you.

That's my first question, and I'll ask my second question after this. Thank you.

Glenmark, we've always been therapy-focused, right? Unlike many of our peer companies, we've focused on these three areas, right, derm, respiratory, oncology.

I don't think it's that easy to switch areas, at least for us, because we've built deep expertise starting from R&D right up to commercialization in these three areas, right, which actually is a competitive advantage for us. That's the way we view it.

I think, given this expertise that we've built in these three areas, we are now expanding our EM franchise, right, India and emerging markets, in terms of commercialization with a clear view that longer term, as we get more innovative assets, we could continue to move up the value chain into some of the developed markets as we go forward. The capital allocation between the therapy areas versus getting into newer areas doesn't exist for Glenmark because we built our business basis that, at least for now, right?

That's the next 5 to 10 years, we'll continue to focus on the areas that we have defined for ourselves.

Thank you. My second question to Mr.

Mantri is beyond high-level margins and cost commentary, what are the key early indicators you track internally across pricing, product mix, and working capital that give you confidence on profitability and cash flow sustainability before these trends reflect in the reported results?

Good question basically. What we track, and this is very critical for us, because especially when we are operating in emerging markets and across the market.

We track closely that our working capital. One is that on a debtors and inventory side, because these markets consumes a large working capital requirement, and also on a purchase side.

Actually how to bring this entire working capital cycle more efficient and reduce this cycle. If you see industry has been maintaining almost operating at 125, 130 days, but we are targeting 115 days this year, and then we will continue to work on the improvement further.

This is what we closely track: debtors, inventory, creditors days, and how to actually improve with the various instruments, but at a most efficient cost manner.

Thank you and best of luck for the next quarter.

Thank you. Thank you.

Hello. Thank you for the opportunity.

I would like to ask that what is the planned CapEx for the next fiscal year and what are the strategic motives behind it?

I think the CapEx typically is running at around 700, 800 crores a year. You should see the same

800 crore is the CapEx for next year, actually next year we should see.

That's the way to think about it, and I think the investment is all going into one is ongoing CapEx, right, in terms of plants, expanding our current lines, and various facilities, right? That's the bulk of it.

Hengrui and

Some of the in-licensing that we do.

Okay. Thank you.

Hi, good morning. Just a book

Hi, am I audible?

Thank you.

Hello. Yes.

Yes, please go ahead, Tarang.

Good morning. Just a bookkeeping clarification.

The net cash as on 31st December '25 is over and above what you've reserved at Ichnos, or this is on a consolidated basis?

Cash is at a consolidated basis. Basically Ichnos money we actually keep utilizing as per their phasing requirement.

It's not that we keep that cash separately, it's a consolidated numbers which I told you on that 600 crore of net cash.

Got it. Okay.

Thank you.

Thanks for the follow-up. Just one question.

Sir, any of the assets now where there's a further scope of the deal, at least in the current assets, or maybe any new asset that can come up, let's say over next 6 to 9 months?

Tushar, I can't give you any visibility to further partnering right now, but all I can say is the Yeah, go ahead.

No, I meant to ask that at least the products which are already sort of out-licensed to the partners, is there a scope for getting more partners for such product, firstly?

Look, there is always scope, Tushar, right? On each of these assets, right, we can always look for some regional partnerships, some smaller partnerships.

It can go on and on, right? I think it's not right to give any visibility around partnering, right, on each of the assets.

One is that we already have and even subsequent assets, right, that we're developing, like 2301 and beyond, right? All of them can be partnered at any point in time.

Our bigger challenge for us is that what is the optimal time to do any of these partnerships and do we really need to do it, because otherwise we end up giving up too much if we do it too early.

Got it, sir. Really helpful.

Thank you.

Hi. Thank you for the opportunity again.

Glenn, I have a question on this ISB 2001 asset. You're still conducting and enrolling patients for TREAT-Net studies, right?

Just want to understand when this R&D and clinical trial responsibility will be going to the partner or you will complete the TREAT-Net and how things work there?

Unfortunately, I can't give you too much visibility on our relationship with AbbVie, right? All we're saying is the dose expansion will end and we've made significant progress with the dose expansion.

I think any further information, you'll see in some public communications as and when we're ready to put it out.

Sure. My second question is again, yesterday during the budget speech, I guess there was emphasis on biomanufacturing production in India by the Finance Minister.

Any initial thoughts, because I guess she was emphasizing on oncology and other NCD treatments, etc. Since you are, I think, focused in this segment, any thoughts here?

Currently we don't do any manufacturing of biologics within Glenmark, right, in-house. We've continued to outsource even a lot of our biologic manufacturing, right?

However, you never know how things play out in the future, right? It's definitely a positive for the industry.

Okay. Thanks, sir.

Thank you.

Hi, thanks for taking the question. Glenn, on two two businesses.

One is on the US. US obviously with the couple of respi approvals you talked about likely coming through to see this in the next few quarters, and you talked about some of the first two files which will probably come towards the end of the year.

That probably gives us decent visibility on '27, '28 growth in the US. Now how should we think about US subsequently?

Are these sort of one-off drivers which come in and the business gets to a base, a relatively high base, and then how should we think about US subsequently from here on? After these sort of drivers enter the business?

I think the way to think about it is '27 is all about Flovent 44 and maybe one more strength of Flovent and the three out of the three, at least two two sole FTFs, right, coming onto the market in the second half of FY27. '28 and beyond, we will see some of the Monroe approvals, injectable approvals starting coming through as well as the additional respiratory filings that we're doing over the next 12 to 18 months, right, which again are super complex and difficult, right?

I think these are the two main drivers to the US business from '28 and beyond, right, as we go forward.

Glenn, on the respi filings, when you say these are complex filings, by when do you think you'll be probably able to do the first of these filings beyond Flovent?

It's probably happening in the next three to six months.

Okay. Secondly, on the emerging market business, there's been some slowdown this year.

You talked about Europe being a slightly slower sustainable growth from here on, how should we think about

emerging markets piece? Emerging markets, next year should be a strong year for EMs, okay, and the core business, we see some significant growth plus, of course, with the launch of this aumolertinib, right, in the second half of next year, right, starting from then, EMs should be a significant driver, right, over the next five years for the company.

This is what, a 15, 20% growth business on a compounding basis, or a 10, 15% compounding business? How do you broadly categorize?

If you see on a five-year basis, it's north of 20% very clearly CAGR.

Going forward. Okay.

Lastly, Glenn, on the specialty business, Ryaltris obviously has scaled up to close to 100 million, as you talked about. Ex of Ryaltris, when do you see the other launches start to become meaningful for us?

The 50 million to 100 million bracket, collectively, when do they get there?

See, Ryaltris is currently growing at 25, 30%, right, top line. The growth numbers are still very strong in the existing markets.

Over and above that, we're still waiting for the Chinese launch to happen, coming up. We're expecting a Brazilian approval coming through.

There are still a number of markets where it's still not commercialized, right? I think getting up to 200, 250 is not going to be a huge challenge for us, right, over the next three to five years.

On the ex-Ryaltris portfolio, when do you think it starts to become meaningful?

Sorry, say that again.

Ex-Ryaltris

innovative portfolio, is that what you're talking about?

Yeah. When does it start to become meaningful, $50 million plus or thereabouts in the range overall?

I think FY28, you'll see a big, big upswing, right, because FY28, as I said, you'll have this aumolertinib plus you'll have some markets of Hengrui. Plus of course, India will be really meaningful.

Starting FY27 itself in the second half with aumolertinib being launched, right, and in India, right? Then Tevimbra, Brukinsa doing well, the run rate already is maxed it for Tevimbra, Brukinsa.

Then again FY28, we'll have the Hengrui asset also launching. I think the build-out is very solid, right, and you'll see some good growth numbers.

FY28, for sure, you'll be ahead of 50 million, right, collectively ex-Ryaltris.

Oh, that's nice. If I take a last one, Anurag, on when you think about again EBITDA margins for the business, over the next two to three years, do you see operating leverage?

What will drive business from here on? It is gross margin improvement, or you see also operating leverage inherent in the business which can probably add to the margin improvement as we go forward?

Basically, if you see as Glenn pointed out is that all these new innovative assets coming in, more branded share mix share is increasing in our overall mix, emerging market playing very strong for us, I think all this put together will you will see a margin expansion northward of what our guidance is there. Our guidance is right now mostly for this year and next three four to three to four quarters.

As Glenn mentioned, FY28, we see all these newer in-licensing assets coming up, and all this thing bring up, we should see a good positive consolidation in our gross margin our EBITDA margins. Because it will be operating leverage after this actually, because our base expenses have been built out, it will be a cost remain fixed, and then you can build it on this the platform which we are built across geographies.

Okay. Thank you so much.

Best of luck.

Oh, hi. Good morning, sir.

Thanks a lot for the opportunity. Sir, one question from my side on domestic sales.

We have shown a very good performance during the quarter, clocking around 20 ₹1,300 crores-odd of sales. Is it fair to assume that everything is normalized and this run rate is sustainable in the domestic business?

As I said, see, India is a very strong market for us, right? We are among the fastest-growing companies in India.

If you look at December also, we grew at 19% when the market grew at 10, 11%, right? Very strong numbers, right, coming out of India.

I think, for the next three to five years, India will be a strong growth market for us. Especially when we launch these oncology products, right, that will further give a good fillip to the India growth, right?

Both chronic respiratory and oncology will drive India. You should see this run rate remain more or less at this level or keep growing from here, right, as we go forward in the quarters ahead.

Okay. Thanks a lot, sir.

Thank you.

Thank you.

Utkarsh Gandhi (Senior General Manager, Investor Relations for Glenmark Pharmaceuticals Limited): Thank you. A quick reminder to everyone that the information, statements, and analysis discussed during this call describing the company or its affiliates' objectives, projections, and estimates are forward-looking statements.

These are based on current expectations, forecasts, and assumptions and are subject to risks and uncertainties which could cause actual outcomes to materially differ. No representation or warranty, either expressed or implied, is provided in relation to the conversation and the documents provided, and the company undertakes no obligation to update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

With that, we can close the Q3 earnings call. Thank you, everyone, for joining us today.

Thank you.