Thank you. Good afternoon everyone, and welcome to Ajanta Pharma's earnings call.

With me, I have Mr. Rajesh Agrawal, our Joint Managing Director; Mr.

Arvind Agrawal, our CFO; Mr. Rajeev Agarwal, our VP Finance and Investor Relations.

I hope all of you have received the financial results by now. I will take you with our overall business performance first.

It is a pleasure to share that Ajanta has achieved several important milestones in FY2026, with revenue surpassing 5,000 crores and net profit crossing 1,000 crores. This marks a significant step forward in our growth journey.

The year reflects strong, well-rounded performance across all areas of business, reinforcing the strength of our strategy and execution. Our revenue from operations grew by 21%, while margins grew by 18%, reflecting strong operating performance alongside continued investments to support future growth.

All our businesses are progressing in line with our plans, giving us confidence in sustaining this growth momentum in the coming periods. This strength is also evident in our returns.

As of March 2026, return on capital employed stood at 33%, and return on net worth at 25%, underscoring our position among the best performing companies in the industry. Now, moving on to the business details, let me take you through our key business verticals, starting with the branded generic business in Asia and Africa, which contributed 38% to total revenue.

We continue to invest consistently in people, portfolio expansion, and market development to support sustainable long-term growth. Let's move to Asia.

During the quarter, the Asia branded generic business recorded sales of 274 crores compared to 303 crores in the same period, reflecting a decline of 10%. For the full year, sales stood at 1,176 crores versus 1,191 crores last year, a marginal decline of 1%.

While we had expected a recovery in Q4, geopolitical developments in the Middle East led to significant supply chain disruptions, impacting dispatches during the quarter. For the full year, the performance remained below our internal expectations, largely due to logistic challenges.

We remain confident that the business will regain its growth momentum in coming quarters. During the year, we launched 15 new products, primarily in chronic therapies, further strengthening the quality and sustainability of Asia business.

Let's move to Africa. During the quarter, the Africa branded generic business delivered strong performance, with sales of 182 crores compared to 133 crores last year, registering a growth of 37%.

For the full year, sales stood at 861 crores versus 750 crores last year, reflecting a growth of 15%. During the quarter, we introduced one new product, taking the total launches for the year to eight, supporting continued expansion in the region.

Overall, our branded generic business continues to progress in line with our guidance, and we remain confident of delivering healthy performance in the coming quarters. Let us move to another two verticals which is our international business.

US generics. As indicated, the US generic business delivered an excellent performance.

During the quarter, sales stood at ₹505 crore compared to ₹325 crore in the same period, reflecting a strong growth of 56%. For the full year, sales reached ₹1,557 crore versus ₹1,047 crore last year, registering a robust growth of 49%.

This performance was driven by eight new launches over the past 15 months, supported by consistent execution and strong customer relationship. On the back of this momentum, the contribution of the US generic business to total revenue increased to 29% during the financial year.

We continue to be preferred partner for distributors and customers, anchored in reliable supply, strong quality standards, and disciplined execution. We now move to Africa institution.

During the quarter, the Africa institutional business reported sales of ₹49 crore compared to ₹28 crore last year, delivering a growth of 71%. For the full year, sales stood at ₹160 crore versus ₹147 crore, reflecting a growth of 9%.

The institutional business contributed around 3% to the company's total revenue during the financial year. At the start of the year, we had anticipated a softer performance.

However, improved order flow in the second half supported a steady performance for the full year. Now, I invite Mr.

Rajesh Agrawal, our Joint Managing Director. Thank you, and over to you.

Thank you. Good afternoon to all of you.

I will take you through the performance of our India business. We have concluded both the fourth quarter and the financial year on a strong note.

I am glad to inform you that Ajanta is now among the top 25 companies in the Indian pharmaceutical market as per IQVIA MAT March 2026. Our ranking has improved to rank 24th against rank 26th last year.

During the year, the India business contributed 30% to the company's total revenue, supported by the launch of 26 new products, including five first-time launches in the country. During the just concluded financial year, our revenue reached at ₹1,654 crore versus ₹1,452 crore in the previous year, registering a healthy growth of 14%.

In the fourth quarter, our sales stood at ₹404 crore compared to ₹369 crore in the same quarter last year, reflecting a growth of 9%. Our India business includes revenue from trade generics segment, which contributed ₹49 crore in Q4 for both years.

For the full year, trade generics recorded sales of ₹188 crore compared to ₹179 crore last year. Let me now take you through Ajanta's performance as per IQVIA MAT March 2026.

We continued to outperform the IPM by a healthy margin, with Ajanta delivering growth of 13% compared to the IPM growth of 10%. We also continue to lead in volume growth and new product introductions relative to the market.

This momentum is visible across most of our key therapeutic segments, where our growth consistently exceeds the segment growth. The data variance in IQVIA for our cardiac portfolio continues for this quarter, and we are hopeful to get this resolved over time.

We remain confident of sustaining our growth trajectory in the coming quarters. In the covered market, we rank among the top five companies in the IPM and feature within the top 10 across all our core therapeutic segments.

Cardiology contributed 36% to the India branded sales, followed by ophthalmology at 31% and dermatology at 23%, with the remaining 10% coming from the pain segment. Our new therapy in gynaecology is progressing well and is expected to contribute meaningfully to our future growth.

During the year, we added around 300 medical representatives across our therapeutic areas, taking our total field force to approximately 3,750 MRs. The newly onboarded teams are being integrated with a clear focus on productivity and effective field execution.

With this, I invite Mr. Arvind Agrawal, our CFO, to take you through the financial performance of the company.

Thank you, and over to you, Arvindji.

Thank you, and good afternoon to all. Before I begin, I would like to mention that during this call, we may make certain forward-looking statements.

These statements are based on management's current expectations and are subject to risks and uncertainties that may cause actual results to differ materially. The company does not undertake any obligation to update these statements publicly.

I will now take you through the consolidated financial performance on a year-on-year basis. Coming to revenue, total revenue for the fourth quarter stood at ₹1,422 crore compared to ₹1,170 crore last year, reflecting a healthy growth of 21%.

For the full year, revenue reached ₹5,453 crore versus ₹4,648 crore last year, registering a robust growth of 17%. Our diversified business model continues to support consistent growth, even as certain markets experience temporary variations, which are part of normal business cycles.

Coming to the gross margins, gross margin stood at 79% for the quarter and 78% for the full year. We expect gross margins to remain around 77% with a variation of plus or minus 1% in the coming year.

Personnel cost for the quarter stood at ₹341 crore compared to ₹280 crore last year, reflecting an increase of 22%. For the full year, personnel cost stood at ₹1,291 crore versus ₹1,090 crore last year, an increase of 18%.

This increase was partially contributed by the addition of medical representatives across our branded generics businesses. Also, during the year, the Government of India new Labour Code became applicable, and based on our assessment, an additional provision of ₹9 crore has been made towards related liabilities.

Coming to other expenses, other expenses for the quarter stood at ₹443 crore compared to ₹310 crore last year, reflecting an increase of 43%. This includes a mark-to-market hedge loss of ₹42 crore.

Excluding this, the increase was 29%. For the full year, other expenses stood at ₹1,583 crore versus ₹1,228 crore last year, an increase of 13%.

This includes a mark-to-market hedge loss of ₹103 crore. Excluding this, the increase was 21%.

The hedge loss was on account of depreciation of the INR against the US dollar and euro during the year. The increase in expenses reflects our continued strategic investments in products, brands, and people across the branded generic portfolio.

We expect other expenses to remain broadly aligned with current trends. Coming to the R&D, R&D spend included within personnel and other expenses remained at 5% of total revenue and is expected to continue at similar levels.

R&D expenditure for the quarter stood at ₹70 crore compared to ₹62 crore last year, while for the full year, it stood at ₹252 crore versus ₹224 crore last year. EBITDA for the quarter stood at ₹333 crore compared to ₹297 crore last year, reflecting a growth of 12%.

For the full year, EBITDA stood at ₹1,395 crore versus ₹1,260 crore last year, registering a growth of 11%. EBITDA margin stood at 23% for the quarter and 26% for the full year.

Excluding the impact of mark-to-market foreign exchange movements, EBITDA margins remained aligned with our guidance of around 27% for the full year. The mark-to-market forex loss recorded under other expenses stood at ₹103 crore, while forex gain under other income stood at ₹97 crore.

We remain confident of maintaining EBITDA margin of 27% with a variation of plus or minus 1% in the coming year as well, while making further investment in developing our market. Profit after tax for the quarter stood at ₹267 crore compared to ₹225 crore last year, reflecting a growth of 18%.

For the full year, PAT stood at ₹1,056 crore versus ₹920 crore last year, reflecting a growth of 15%. PAT margin remained steady at 19% for both the quarters and the full year.

Coming to the tax rate, the effective tax rate for the year stood at 23%. It is expected to increase in the coming year as one of our manufacturing facilities transitioned out of the exemption period.

Capital expenditure for the full year stood at ₹330 crore in line with our guidance. As we embark upon new capex cycle to meet our continued growth requirements, we expect capex to increase to around ₹400 crore in the FY2027, which includes ₹150 crore of maintenance and balance for new capacity expansion.

Working capital, trade receivables stood at 125 days compared to 94 days last year, reflecting the shift from factoring to working capital loan, enabling better interest efficiency. This remained neutral to the P&L, supported by corresponding investment income.

Inventory levels improved to 63 days from 72 days last year, reflecting continued focus on enhancing working capital efficiency. With this, we now open the floor for question and answer.

Thank you.

Hi. Thanks for the opportunity, and congrats on a good set of numbers.

Just wanted two questions. One, if you could share your PCPM in the domestic business?

Second, if you could give some color in terms of how are you looking at the generic semaglutide opportunity, primarily from what I understand you are looking at this outside India, and what's the update on that? That's the two questions.

On the second part, generics, you are referring to the generics in the domestic market, the trade generics?

Generic semaglutide outside of India is

what— I will hand that over to—

Outside of India, we are going to start our filing this quarter, and normally the approvals takes somewhere between 1.5 years to 2 years. As and when we keep getting approvals in various markets, we will keep launching.

I think it is work in progress. We'll see as the filing happens and what approvals we get and we will keep launching them.

Got it. I'm assuming India is not as much of a focus market for generic semaglutide or is that not the case?

India is also a focus market for us, and we are also in the race, for sure. It's too early to comment on how it will pan out, but we are definitely one of the contenders.

On the productivity, the PCPM for the last full year has worked out to 3.7 lakhs per man per month. Keep in mind that this is also after the addition of 300 more representatives that we have made in the current year and maybe couple of 300 maybe 200 to 300 more last year, which are yet to come to this level.

We have been keeping on incrementally adding to our field strength.

Therefore, it may seem what it looks like right now.

Got it, that's helpful. If you could just give me a sense of within that, given the significant additions to the field force, for the mature field force, what's the average PCPM, and how much is that higher by?

Maybe that gives a sense of how that steady-state PCPM then looks like.

I think 4 to 4.5 lakhs of rupees is the steady-state PCPM we are looking for.

Got it. Thank you.

Okay. Thank you.

Hi. Good evening.

Thanks for taking my question. Sir, just your comments on the impact on the business because of the ongoing Middle East conflict, and it will be great if you can divide it into how you are managing the cost in your domestic business versus the international business.

I couldn't get your question. How are we managing what?

The increase in cost that you would have experienced because of the Middle East conflict, the increase in cost of either raw material or utilities.

Yeah. The freights have increased, both air and sea, across geographies.

It is not only restricted to the Middle East supplies, but the freights have increased in general for the air and sea. Since last quarter was only one quarter we saw the impact, we will come to know for the next whole year how the cost will sit because it's still a evolving landscape where how long this war continues and whether it will settle and after that, what will be the cooling off.

I think that is yet to be seen. We are seeing the increase in the RNPM costs also, but since last quarter we had inventory with us, we did not see the impact of the same in that quarter.

Maybe coming quarter also, it may not be as impacted because there was some inventories and some old orders given. I think if the war continues, I think going forward, a quarter after, probably we should start seeing some increase in the cost of the goods also, RNPM cost as well as the freight cost.

Okay.

The freight and insurance cost increase that you're witnessing right now, are you able to pass it on to your customers or are you partly absorbing it in your P&L?

It is absorbed by us in our P&L.

Okay. Just last question.

Let's say the conflict lasts for longer than your inventory, then in that case, RNPM cost that is increasing, will that also be borne by the marketing company like yourself or is it passed on through the entire supply chain, like the CMO partners and the customers? How does it happen?

No, it is absorbed by us only. It is absorbed by the manufacturing companies.

Great. That was my question.

Thank you so much.

Thanks for the opportunity. Sir, firstly on the EBITDA margin guidance with FY2026, we have ended with 27.7% EBITDA margin.

Maybe Q4 is relatively weaker quarter traditionally. We are just trying to understand why the EBITDA margin guidance is lower at 27% for FY2027.

That's my first question, given that we have with a decent growth across the geography.

That is sure. The growth will definitely be there, but however, as we are investing quite a bit on the market in terms of product registration, in terms of MR addition across the markets.

All that investment is going on. That investment also is something which is charged to P&L.

We are also proposing to increase the filing across the market, so that also will increase the R&D cost a little bit. All these things will definitely impact the profitability.

We are currently looking at all these aspects and then giving you the guidance of 27%.

Sir, how many MRs you intend to add in India for FY2027?

I think about 5% to 6% is something [unclear]. In the range of 250 to 300 MRs is just to augment [unclear].

There is some disturbance on the line. Not able to hear.

Sure.

Yes.

We are looking at an addition of 250 to 300. This is a very broad ballpark working.

Of course, it will keep unfolding every quarter. This is to optimize the coverage as we go along.

This is for India market. For Asia, Africa market also do we intend to add MRs?

Yes, we are intending to add MRs even in Asia and Africa also. Again, 5% to 6%, you can imagine about 130, 150 people will be added there as well.

Now, coming back to India market MRs, this would be largely spread out across the therapies, or this is more for specific therapy as far as FY2027 MR addition is concerned?

Across all therapies, all teams.

Got it. Just lastly, how much would have been the inventory days for US market?

We don't give out such breakup of the inventories market-wise. Sir,

broadly, not specific, but in general, how much inventory we carry for US market?

Oh, that way. Normally we carry about 3 months inventory, yeah.

Okay. Effectively, which is where we are concerned that Q1 presumably can be still okay in terms of execution,

but

given that we are already sitting in May, what kind of sort of visibility we have as far as 2Q or maybe the second quarter onwards availability of material both in terms of raw material as well as availability of finished goods for US market or for other geographies, if you can share your thoughts?

Guidance which we have given is considering all those factors, considering what are the prevailing rates of RNPM and if they will continue going forward, the freight rate, what are prevalent currently, they are going forward. Those are factored in into the guidance which we have given of 27% EBITDA.

Any change, positive or negative in that, will have the corresponding impact on that guidance

on the coming quarters. Got it.

Just on the revenue growth, maybe I missed the guidance on the revenue growth for FY2027? Revenue—yeah,

go ahead,

sir. Go ahead, sir.

No, overall for the company, we are looking at the guidance of—CFO, do you have the figure?

High teens figure. High teens growth,

sir. High teens, yeah.

Yeah.

16% to 18%, right?

High teens is something which we are really looking at.

Got it, sir. Thank you.

That's it from my side.

Thank you.

Hi, sir. Thank you for the opportunity.

Sir, my first question is pertaining to your India business. This quarter, as compared to the first 9 months, we have seen somewhat of a slowdown in the India business where the growth has been 9.5%.

If you could help us understand any market-leading factors, or we expect to bounce back from this current growth level in the coming quarters ahead?

If you look at the annualized performance, we have recorded 14% growth, which is significantly higher than the IPM growth rate as well as the covered market and the subset of the segment growth rates. This one quarter has been an aberration due to unexplainable kind of reasons.

However, if I correlate that with the SMSRC prescription data as well as the IMS secondary data, they're all very positive. Is our internal feeling.

They will all fall in line. I don't see this to be any cause of concern.

Understood, sir. Then, sir, secondly on the Asia business where I heard your commentary that the performance was not in line with our expectation.

Any sense on what is the kind of channel inventory into the system, and by say the first half or second half, we should be back to delivering at least some sort of growth into this business? Yeah.

We have seen that the logistics have been now streamlined. In a way, when I say streamlined, at least the earlier the inventory stocks which were on the high seas, they got stuck.

They got localized at various places where they were in the transit, and they were not moving. At least now the logistics have been sorted out, just the time line has increased.

The total transit time, because it has to be rerouted from multiple ports and somewhere it has to be then hauled on the surface. We have seen that slowly the logistics have been kind of coming in place, just the transit time has increased.

With this, we have not seen any demand challenge or the demand has not been impacted. It was more of a supply chain concern or issue.

With that supply chain now getting streamlined, in fact, we are looking that in the next year our guidance for the Asia is in the high double digits, we should be able to deliver a good performance.

Got it, sir. Sir, just one final one if I may.

On your US business, so, again, a very stellar quarter on that front. If you can guide us something on how the trajectory going ahead would be, and how confident are we on achieving this over 500 crores of revenue, what we have seen in this quarter moving into FY2027?

No, this whole year has been exceptionally strong on back of various things which we have been giving the commentary in the earlier earning calls, of number of products we launched in last 15 months, increase in market share of some products. Also this quarter is also elevated because we have one seasonal product, which is the product for flu.

Typically, we see the demand for that or sales for that happens in this quarter. It's somewhere slightly in December, but most of it happens in this quarter starting January.

Generally, the quarter is slightly elevated, and this quarter also got slightly more elevated because certain other factors which I just explained. I think going forward for the next year, we are looking at a mid-single-digit growth for the US business, considering that for the whole year, we have delivered a extremely robust growth of 49% on back of that.

The base is very high. On back of that, we are directing to be a mid-single-digit growth for the US.

Got it, sir. Thank you, and wish you all the best.

Thank you.

Hi. Good afternoon.

A couple of questions. One, how is the shipments to Middle East happening, is it happening normally or is it stuck?

I just answered that a minute back, but I repeat. Earlier when the conflict started, the shipment got stranded at whichever place they were.

Now they got rerouted, and barring the air shipments when the conflict is on, but otherwise, we have seen that the sea shipments have kind of resumed. It's taking longer to reach because they have to be rerouted from different ports, somewhere it has to be hauled through the surface.

Overall, the logistics have settled. It is just taking longer and cost has gone up significantly.

Got it. Second, your revenue guidance of high teens, does it take into account the depreciation in INR?

Sorry, the last line was not audible. Included in account what?

Taking into account the depreciation in INR?

Depreciation in INR.

Yeah. It is considered on the current exchange rate, whatever is the prevailing exchange rate.

Current exchange rate. Okay.

If I heard correctly, the raw material cost increases that are currently there, that has been built into your EBITDA margin guidance of 27%. Okay.

Got it. Okay.

Thank you very much. I'll join back the queue.

Cost of RNPM as well as the freight, both are inbuilt in the guidance which we have given, increased cost in the freight.

Great. Thank you.

I'll join back the queue.

Hello. Thank you for the opportunity.

Sir, this question was in regards to the US FDA inspection that happened in our Paithan plant. Just wanted to understand what is the kind of impact this can have in our plans going forward and for the supply that we are doing today?

Thank you.

No. The 483, as we have informed the stock exchange, we have got the five observations for our Paithan facility.

Observations means there are some procedural or some other kind of things which we have to comply meeting to the FDA requirement. We are moving forward to submit our response to the FDA as per the prescribed timeline.

That is the thing on the 483. Sir,

just wanted to understand, will this impact any of our filings that we've planned to launch or any of our existing products? Just wanted to understand on that side.

No, no. Impact is what, impact can be seen only if there is any elevated concerns.

There are no impact on the filings also. We continue business as normal.

Okay. Okay.

Thank you.

Yeah. Hello.

Am I audible now?

Yeah. I just have a couple of questions from my side, sir.

First one being we have been pretty consistent in terms of new product launches in the recent years. If we could give a rough breakup on let's say over the last 2 years, what is the revenue generated by these new product launches?

That figure, we don't have it at hand at this moment. I would encourage you to email to the Investor Relations team, and we'll come back to you.

However, what I can share with you is last 12 months, the breakup of addition of the 13% growth which Ajanta has registered as per IQVIA MAT March 2026. Our new product contribution within that is 4.7% out of 13%, as against the industry which stands at 2.8% out of 10%.

Our new product contribution is significantly higher compared to the industry new product contribution for the growth.

Just to know the overall growth prospects and everything, are we highly dependent on consistent new product launches? I get that new products have to be launched, but let's say we go behind or due to some kind of issue, we are not able to follow up on the targets that we have set for new product launches.

Will that have a material impact on revenue or existing products or older products will continue to grow at the same pace as they did when they were launched?

Interesting question. They are totally disconnected from one another.

Our base volume growth is also much higher, 30% higher than the industry volume growth, right?

Which means

my legacy brands, my larger brands such as Met XL, Cinod, ATORFIT range, triple combinations and all of those, are growing at a very healthy pace. While I deliver exceptionally well on the new products, I'm also able to build better than the industry in terms of the existing and the older brands.

They are not interlinked as such, in best of my experience.

Okay. For the last question, I just want to get a picture of the promoter pledge status.

If we look at the number over the last 1 year, it has rised a bit. I get that we pledge shares to avail loan facility and everything.

Since we generate adequate cash flow, we do not require much of a loan facility. What is the thought process?

Or is it for personal reason, or is it purely for company loan facility? I just want to get a brief or overall picture on why shares have been pledged and why has it been increasing over the last 1 year?

I'll tell you. See, as far as Ajanta Pharma's promoters are concerned, there are four brothers who are holding the shares.

Out of that, two brothers, Mr. Rajesh Agrawal and Yogesh Agrawal, both of them are in the helm of Ajanta Pharma, and there are two other brothers who are developing their new businesses.

For their new businesses, they are pledging the shares and borrowing for that. It has nothing to do with Ajanta Pharma borrowing at all.

Okay.

Yogesh Yeah. Sorry.

Yeah. Sure.

Please go ahead.

Yogesh and Rajesh Agrawal, they don't have any pledge at all. There is zero pledge from their side.

It's only the other two brothers who are developing their new businesses, they have pledged the shares to borrow the money.

Okay. If I could just squeeze in one last question.

You had given a very strong guidance for Asia business for the next year. I just want to know what is the basis for the guidance in terms of that?

Are you expecting growth in any particular geography, or is it in therapeutic area, or in new product launches that you are anticipating? I just want to get an overall picture.

I know that you cannot go into specifics, but still.

Yeah. I think it is basically on the back of the low performance last year, because Asia has degrown -1% in the last year.

Naturally, that lower performance was basically again because of the logistic issues which are there in Middle East. I hope we should be able to really recover that and should be able to grow in, as he said, double digit.

Okay. Thank you.

That's it from my side.

Yeah.

Yes, Tushar.

Am I audible?

audible. Now you're audible.

Sir,

just on the guidance again, where US probably would slow down in FY2027, India doing better than IPM, but IPM itself probably would grow at 8%

to 10%, effectively,

Asia, Africa would be the strong growth drivers. In Africa also, we've already grown at 15% in branded generic for full year.

What

kind of factors will drive much higher growth in Africa market? That's my first follow-up question.

Africa also, we are looking at a high double-digit growth. Africa also, we should be able to perform well.

Okay. This is in a way semaglutide will actually contribute in any of these geographies, probably FY2028 onwards?

No, no. There is no semaglutide which is factored in this.

This is from our existing business, addition of people which we have done over last 2 years, addition of people, not that many, the 725 which have been done here, I think okay, let's discount that, that may not contribute so much. All the new products which we have launched over last year or 2 years, that is going to contribute to this growth.

As far as capex is concerned, it's at the existing site, the growth capex?

CFO, can you take that?

Yes. This will be on the existing site, because we have the extra land available in the existing site, capex will be there.

We're looking at about ₹150 crore of routine capex, maintenance capex,

and

₹250 crore of capex for the capacity additions and expansions, yeah.

Got it. Just lastly, how much effective tax rate for FY2027?

We are expecting about 26% to 26.5%.

All right, sir. Thank you.

Thank you.

Hi, sir. Thanks for the opportunity, and congratulations on a good set of numbers.

Sir, we have guided for a mid-single-digit growth in the US formulations business. Are there firstly any launches that you are scheduling for the next year?

Or is it going to be that the existing base business itself is going to kind of continue at that rate? That is my first question.

No, there are launches which are planned. There are about four to five launches which will be planned, but they're all going to go towards the later second half of the year.

There will be some growth coming in from there also, but it is a most part first half will be existing products.

Understood, sir. Also, coming back to the semaglutide opportunity, while the filings are happening currently as we speak, how do you envisage the launches to happen, and at what point could it reach a material scale, maybe anywhere between 100 to 150 crores kind of a top-line contribution?

I think it will be 2 years by the time product will get commercialized in various markets. I think the 3 years from third year from today is when we should start seeing the revenues.

Probably fourth year would be the where we will have launched and we would have probably increased our penetration in the market and got some market share. I think 3 to 4 years is the time when we should start seeing these kind of the kind of meaningful impact on the in the sales and profitability.

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

Thank you.

Thanks for the opportunity. Just wanted to understand, you mentioned high double-digit growth for Africa, right?

A low double-digit for Asia, mid-single digits for US, and assuming the same level as FY2026 for Africa institutions, India growth works out to be high double digits upwards of 20%, even if I take the lower end of your high-single-digit guidance, which is 16% growth for the overall business. If you could just help us get some understanding of broadly what's the range at which you're looking to grow the India business, and considering the India business has higher margins, as you mentioned earlier, despite that, what's the reason for margins coming in around 27%?

That's my question.

I think Asia, you are saying low double digit, actually, it is high double digit again. That's what we mentioned.

For India, we are talking mid-teens growth.

Got it. Thank you.

Then

on the margins?

On the margins, I think we never said India is higher or other markets are lower. Actually, the margins are quite well spread, and the entire branded generic business is almost at the same level.

The only thing which is happening is that we are investing in the market simultaneously for the future growth. Product registrations, people additions, etc.

is continuously going on. That is why, and also we have factored in some amount of increase in the freight cost and the material price cost due to the war situation for at least about 2 to 3 months.

All that has been factored in, and on that basis, we have given you the margin guidance.

Got it. Thank you.

Thank you.

Thank you for the opportunity. My first question is on the receivable days.

We see significant jump in FY2026. What is the reason for the spike, and how should we look at it?

Is 125 days the normal base that we should consider, or can it come lower?

I think this is mainly because of the higher sales at US. As you are aware, the US outstandings are a little longer, and US sales were very, very high this year with 50% increase.

The contribution has come in, and I think at this point of time, I think we can consider this as a new normal now.

Okay. Thank you for that.

My second question is on your strategic priorities that you have mentioned in the presentation, where one of the priorities is focus on digitalization. Just wanted to understand here are we talking on the AI front, and if yes, just wanted to understand how does adoption of AI actually impact our P&L?

Basically, on the R&D side, does it increase our R&D expense, or it lowers our R&D expense, if you can just throw some light there?

No, we have embarked on the AI initiative, and we are progressing well. We have formed a team in Ajanta Pharma, and we've identified the areas.

Yes, that is one of the priorities for us. We've been on this journey for a while, not particularly AI, AI journey started let's say about last 3 months also, 6 months also, but we've been on a journey of digitalization in all our verticals, whether it is sales and marketing in India, sales and marketing in overseas markets, whether it is our facilities.

We have a heavy digitalization, which gives us a lot of rich data, and now our plan is to integrate that, take that data, and apply a layer of AI on that and see how we benefit from all this data to make quicker decisions, sound decisions. That is going to be the focus for the current year of how we want to use the data and see how can make use of that for the benefit and building more efficiencies.

I don't think on the R&D front, there is any significant impact that will be there because of something like this, at least not in the near term.

Sure. Thank you for that.

Those were my two questions. Yeah.

Thank you.

Sure.

Hello, am I audible?

Yes, please.

Hi. Thanks for the opportunity.

My question pertains to the US market. Are you seeing any stability in the pricing environment or any restocking demand because of the logistics disturbances in that market?

Any comment on that?

No, I think logistics to US is not impacted, just costs have gone up. There is no such supply chain disruption any which way.

The market in US continues normal. Whatever were the earlier factors of price erosion and things like that, they continue, which is the normal one.

The war has no impact on the US business.

Got it. Okay.

That's it from me. Thank you.

Sure.

Good evening, sir, and thanks for the opportunity. One question.

I just wanted clarification on whether our US business margins have improved, and whether they have reached near to our corporate level margins?

We don't give out the vertical-wise margins, I'm sorry, I'll not be able to share those granular details. Okay.

One more question, if you could just help me understand how much is the chronic share in the combined Asia and Africa branded generics market, because for the past few quarters, we have been focusing on growing our chronic therapy areas in these markets. If you could help me with the numbers?

I think combined figures, we may not have that right now.

If you could broadly help me understand, how is the revenue split between chronic and acute in these two markets combined?

Broadly, I think we can take because some markets are chronic with 80%, some markets are with 30%. Overall, if you take, I think it will be 50% chronic at this point of time.

Our focus is to increase this chronic portfolio consistently going forward.

Understood. Sir, on the India business, it's been now 1.5 years since we have entered into gynaec and nephro therapies.

If you could help us understand how the performance has been in these two new therapy areas, and how are we planning to grow these two therapies over the next 2 years?

I had a short reference in the opening comment also. On the gynaecology, the progress has been very encouraging.

We have been received very well in the segment itself by the key opinion leaders, in that sense. We are progressing very well in gynaecology, better than what we were expecting internally.

I see that to be contributing meaningfully in the coming 2 to 3 years. That is as far as gynaec is concerned.

We will also strengthen within gynaecology by way of adding more MRs in the coming year. Nephrology, as we said, was a smaller task force, if you recollect, when we entered the segment.

It's a much more difficult segment to have a crack at. It will take some time, and we were prepared for that.

There are some positive signs, but it will take longer than what it is taking in the gynaecology segment.

Yeah. Thank you, sir.

Thank you for your answers.

Hi, good evening. Can you please break your India growth into price, volume, and new product for FY2026?

Overall, we've grown at 13.3%, 13.1% against IPM of 10%. Our growth breakup is as follows: 3.6% from the volume, price growth has contributed 4.8%, and new product launches have contributed 4.7% to the total growth of Ajanta.

Thanks. That was helpful.

That's it from my side. Yeah.

Sure.

Good evening, sir. Thank you for taking my question.

Given your increasing exposure to US generics and Africa institutional, both of which are tender-driven and competitive markets, how are you managing price erosion risk at the portfolio level?

Can you come again with your question?

Yeah. I was saying given your increasing exposure to tender-driven and competitive markets, that is US generics and Africa institutional, how are you managing the price erosion risk at the portfolio level?

Because the both of them are highly competitive markets.

Yeah. No, we always built in the price erosion every year in the guidance which we give out.

The forward-looking guidance for the next year also for each of these businesses we have given is considering those price erosions calculations as well.

All right. Thank you.

That is all from my side.

Sure.

Okay. Thank you, everyone.

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Thank you, everyone.