Good morning, everyone. I welcome you all to the earnings call of Alivus Life Sciences Limited for the quarter and financial year ended March 31st, 2026.

From Alivus Life Sciences, we have with us Dr. Yasir Rawjee, our MD and CEO, and Mr.

Tushar Mistry, our CFO. Our board has approved the results for the quarter ended March 31st, 2026.

We have released it to the stock exchanges and updated the website. Please note that the recording and transcript of this call will be available on the website of the company.

Now, I'd like to draw your attention to the fact that some of the information shared as part of this call, especially information with respect to our plans and strategies, may contain certain forward-looking statements and involve risks and uncertainties. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and which could cause actual results to differ materially from these statements depending upon economic conditions, government policies, and other incidental factors.

Such statements should not be regarded by recipients as a substitute of their own judgment. The company undertakes no obligation to update or revise any forward-looking statements.

Our actual results may differ materially from those expressed in or implied by these forward-looking statements. With that, I invite Dr.

Yasir Rawjee to say a few words. Thank you, and over to you, Doctor.

Soumi, thank you. Good morning, everyone, and welcome to our Q4 and FY26 earnings call.

I am pleased to share that this year marks an important milestone in the journey of Alivus Life Sciences as we complete two full years with Nirma as our promoter. During this period, we transitioned and strengthened the foundation of our business as we position the company for its next phase of sustainable growth.

The partnership with Nirma brought enhanced financial strength, long-term stability, and greater flexibility to invest in future growth opportunities. Our focus on building a more diversified and resilient business model remained while we have accelerated strengthening our product portfolio, expanding capabilities, and steadily improving the overall quality of business.

During this period, we have faced some headwinds like uncertainties around tariffs and regulatory shifts. These factors continue to disrupt supply chains, elevated logistics and energy costs, and created uncertainty across global markets, making resilience and agility increasingly critical.

Despite these challenges, Alivus has not only navigated this environment successfully, but has also meaningfully improved the quality of its business. This is reflected in the strong and consistent performance of our non-GPL segment, whose contribution to the overall business has steadily increased over the years from 59% in FY22 to 71% in FY26, thereby reducing our dependence on the GPL business.

This growth reflects the increasing diversification of our portfolio and geographies, supported by robust demand across regulated markets and sustained momentum from new product launches. We expect the contribution from the non-GPL business to continue to increase going forward.

We also witnessed a meaningful recovery in the CDMO business from Q3 of FY26 as existing projects gained traction and newer projects scaled up. Notably, the improvement in the quality of our business is reflected in our profitability profile.

We continue to improve our EBITDA margins and remain among the industry leaders in profitability. To add more perspective, between FY24 to FY26, our revenue CAGR stood at 5.7%, while EBITDA CAGR during the same period was 15.8%.

In absolute terms, we approximately added ₹270 crore of incremental revenue over the last two years, and ₹220 crore on the EBITDA side, taking our margins to 33.6%, the highest in our history. What is particularly noteworthy is that this improvement was achieved despite the loss of PLI benefit.

This was driven by a favorable product mix, disciplined cost management, operational efficiencies, and an increasing focus on high-value, differentiated products. As a result, we have consistently generated healthy cash flows, strengthened our balance sheet, and maintained a net debt-free position.

Over the last two years, we have demonstrated the resilience of our operating model and the strength of our diversified portfolio. This has reinforced our confidence on the strategic direction we have taken as this steadily translates into a stronger, higher-quality, and more sustainable business.

Moving to our full-year performance, our revenue for the year stood at ₹2,552 crore, registering a 6.9% year-on-year growth, and with the non-GPL business leading the momentum with 13% growth. This performance was supported by strong execution across markets, including Europe, Japan, LATAM, ROW, and India.

Growth was further aided by new product launches and the recovery in the CDMO business. We have added 11 new products during the year, and the current portfolio stands at 176 unique molecules.

We have also added 49 new customers during FY26, taking our total base of customers to above 900. We delivered EBITDA margins of 33.6%, expanding by 360 basis points, highlighting the inherent strength and operating efficiency of our business.

On the capex front, Solapur Phase 1 is progressing as planned and is expected to be operational in Q2 of this year, while construction of the new R&D center in Taloja in Navi Mumbai, is also underway. Our pipeline remains robust, with over 611 DMF and CEP filings globally as on March 31st, 2026.

The high-potent API portfolio remains on the development path, with 28 products in the pipeline. 12 of these products are validated, seven products are in advanced stages of development, and the remaining nine products are progressing well through lab development stages.

Given the ongoing geopolitical conflicts and uncertainties around global demand, we continue to remain watchful of the external environment. However, we remain confident in the strength of our business fundamentals and our ability to sustain EBITDA margins in the range of 30% to 32% going forward.

With this, I now turn the floor to our CFO, Mr. Tushar Mistry, who will walk you through our financial performance for the quarter in depth.

Over to you, Tushar.

Thank you, Dr. Yasir.

Good morning, everyone. Welcome to our Q4 and FY26 earnings call.

Adding to Dr. Yasir's commentary, I would like to share a few insights on our performance over the last two years, particularly how our growth profile and profitability have meaningfully improved.

Our growth has become more broad-based, and importantly, our dependence on any single client is gradually reducing. To illustrate these, while our GPL revenues have remained relatively stable over the past two years, our non-GPL revenues have grown at a CAGR of 7.5% during the same period.

This shift in mix is also reflected in our profitability, with margins improving from 28% in FY24 to 34% in FY26. This clearly demonstrates the new business we are adding is more profitable and value-accretive in nature.

With ongoing capex and continued investments in new technologies and products, we remain confident in our ability to sustain this margin trajectory going forward. Now, I would like to highlight the key performance updates for the quarter and full year ended 31st March, 2026.

For Q4 FY26, revenue from operations stood at ₹689 crore, reflecting a growth of 6.1% year-on-year. Gross profit for the quarter was ₹418 crore, up 14% year-on-year.

Gross margins for the quarter stood at 60.7%, up 420 basis points year-on-year, driven by new launches, product mix, and operational efficiency. EBITDA for the quarter was at ₹237 crore, up 13.8% year-on-year.

EBITDA margin for the quarter was 34.4%, up 230 basis points year-on-year. PAT for the quarter stood at ₹163 crore, with PAT margins at 23.6%.

For full-year FY26, revenue from operations stood at ₹2,552 crore, a growth of 6.9% year-on-year. Gross profit for FY26 was at ₹1,485 crore, up 13.7% year-on-year.

Gross margins for FY26 stood at 58.2%, up 350 basis points. EBITDA for FY26 was at ₹858 crore, up 19.6% year-on-year.

EBITDA margin was at 33.6%, which was up by 366 basis points year-on-year. PAT for FY26 stood at ₹565 crore, with PAT margins at 22.1%.

Turning to the therapeutic mix, CVS and CNS continue to lead the growth during the quarter, with both therapies contributing 50% to the top line. In addition, we are gaining traction in newer therapies like respiratory and anti-allergy, which collectively contribute more than 10% of our revenues now.

Chronic therapies continue to outgrow acute segment and contributed 67% to the top line in FY26. R&D expenditure for Q4 FY26 was ₹25 crore, which was at 3.6% of our sales, and for the full year financial '26, it was ₹91 crore, again 3.6% of our sales.

Before I delve into cash flow details, I would like to first highlight a fundamental shift in how the company is utilizing its cash. As many of you are aware, prior to FY24, while our operating engine was strong and consistently generated cash, a large part of that cash was upstreamed.

FY24 marked a clear inflection point. Over the last two years, we have generated cash from operations of above ₹984 crore, of which we have invested in capex of ₹472 crore, paid dividend of ₹61 crore, and resulted in a war chest of ₹451 crore.

Let me now move to the current year's cash flows. As of 31st March, 2026, our cash and cash equivalents stood at ₹782 crore, with capex for the year being ₹306 crore.

Looking ahead to FY27, we plan to incur a capex of about ₹540 crore, which includes carryover commitments from FY26 as well as fresh capital investments. Importantly, this entire capex will be funded through internal accruals.

These investments are focused on building new capabilities at Solapur, our greenfield project, as well as strengthening our R&D platform. The capacity we are adding today will take us to 1,198 kL—from 1,198 kL in FY24 to a planned 2,069 kL by FY28, positioning the company to drive sustained growth well beyond FY28.

With that, let us open the floor for Q&A.

Yes, we can start.

Thanks for the opportunity, and congratulations on the great execution you have delivered over the last two years post change in the ownership. My first question is we had a fire incident at the Dahej plant.

Can you quantify was there any impact of production and sales, and is there any spillover we are expecting in Q1, and also was there any cost booked related to the same on P&L?

The fire at Dahej impacted only the intermediate side of the facility. The finished area was intact, we didn't experience any great delays.

As a result of that, there is no significant spillover. There is some, but not very significant, and we hope to be able to tie that in Q1.

From an expense perspective, yes, we have booked a loss due to fire and our other expenses to the extent of ₹20 crore, and that's why you see a jump in the other expenses line item.

Okay. Just to clarify on this, out of ₹126 crore, ₹20 crore is related to the impact.

On the employee cost side, is that jump organic, or is there something else as well?

On the employee cost side, we have accrued the performance bonuses since the performance for the company is good. There are certain performance bonuses which are payable to the employees, and those have been accrued in the last quarter.

Sure. That helps.

Other thing was, considering the lot of volatility we are seeing in global macros, there is obviously some forex impact we will be seeing, and I'm assuming it will be positive considering we are net exporters. Can you quantify does that sort of helps us in our gross margins?

Is that sort of number baked in our gross margins? If possible to quantify and give your thoughts around, and I'm assuming there'll be some impact because of yuan appreciation and according imports cost.

That's first. Second, was there any major forex gain booked in other income in Q4 and full FY26?

There is an element of forex gain for the year in the P&L. As you rightly mentioned that since we are net exporters, any rupee depreciation definitely helps us.

For the entire year, on the P&L, we have seen a net gain of about 31 cr on the P&L. For the quarter, it is about your next question is on the other income side, there is about ₹11 crore of gain that we have booked for Q4 and about ₹20 crore for the full year that we have booked.

Sure. Are we seeing any challenges in terms of RM procurement, RM cost, pressure in terms of gross margin because of cost inflation, any logistic issues on the business in general?

Obviously, we will be facing challenges, but something significant if we can call out.

Freight was impacted first starting from February 28th itself. Okay.

More or less, that has been passed on to customers. Okay.

As far as material costs go, solvents were the first materials that went up quite significantly. The good thing is that solvents contribute about 12%, 13% to our overall cost.

There is an increase, but again, on the overall cost, it's not going to have that big an impact. Of course, we are in touch with our customers to give them that view, and most customers are agreeable to take on that added cost, whether it relates to freight or relates to material costs.

We don't expect an impact.

Sure. That helps.

In the industry environment in general for pricing, how would you evaluate current environment? Apart from what has happened because of war, but in general, are you seeing any improvement in pricing environment for your API business?

See, for our markets and our portfolio, the pricing environment has been reasonably stable to begin with. The war should not have any effect on the pricing environment.

Sure. Last question from my side.

In terms of inorganic opportunities, if you can give some thinking how you are thinking about that piece, what sort of profile of business we are looking for, and are we any close to do something?

We are actively looking. Okay.

The direction is to basically enhance the platform that we already have. Our goal is to extract more value from our pretty large and diverse pipeline of APIs.

If we can sort of milk that pipeline much more through a lateral build-up of allied platforms, then yeah, that's the direction we are looking into in terms of inorganic.

Sure. Thank you so much, and all the best.

Thank you.

Good morning. Thank you for taking my question.

Just trying to understand something about the improvement in the margin. The material cost has been flat, but the contribution of CDMO as a percentage of revenue has been flat also.

Is it largely because the expansion in margin

is

Yeah, hello. Yeah.

Can

You need to be a little more clear. Probably move closer to the mic, not use the speakerphone, I don't know,

if you could No, I'm not using a speaker. Just.

Can you hear me? Hello?

Yes. Please continue.

Hello? Hello?

We can hear you.

Yeah. Just a couple of questions.

On a YoY basis, our material costs is practically flat, and our CDMO share of revenue has been also flat. Just understanding, has the product mix on the CDMO way been largely superior than the past?

That is why you have an expansion in the EBITDA margin?

CDMO definitely has better margins, but our CDMO business has grown 18%. Why do we say it's flat?

I don't know.

No, let me rephrase that question. Percentage of revenue has been still flat at 6%, 5.5%, 6% compared to the last year also.

Contribution to the total revenue is still the same. I'm just wondering, is it largely because of the larger, superior mix of the CDMO within the CDMO?

That's what I'm trying to understand.

Okay. Improvement in margin has got I would say three to four factors.

Operational efficiency has helped. We have had better cost processes implemented.

Okay. CDMO has gone from 6% last year to 7% this year in terms of for FY25, it was 6%.

It's about 7% in FY26. Okay.

That certainly matters, but we've also had some good launches of generic API in multiple markets. All in all, that is how we've achieved better margins.

The backward integration of Ankleshwar and all to the head of Solapur, has that played out as of now?

No, not yet. No.

Backward integration in a big way still has to contribute. There's some, but not very significant because Solapur is still not yet online and we don't have the capacity for backward integration yet in the regular plants.

Solapur should be up and running in Q2, and then we hope to implement those backward integration projects.

That helps us in the margin. I suppose I understand that, right?

We hope to have some benefit from that.

Sir, something about Solapur being reinspected or something, are we going for any regulatory inspection over there, or it's going to be normal as is?

I think you're probably referring to Ankleshwar or Dahej because Solapur is not yet commissioned.

No, I know. In the future, do we look at implementing Solapur for regulated market, because we only have Solapur for the ROW markets?

I was wondering, do we go for the regulated markets for Solapur also?

That is the plan very much.

I see. Last question from myself, when we talk about high-potent API has been validated, the validation is when I hear that, just to clarify, I understand less of the subject, but the innovator or the client has validated the API or the molecule, right?

Yeah. The thing is that it's a progression.

Before we validate, we've already sort of engaged with the potential customer. Then when they are ready to take exhibit batches is when we validate the material in the plant

so

that larger quantities are also generated as a result.

Okay. The validation they have started taking validation amounts from us for the seven, eight molecules which we have right now in the high-potent API.

That's what I can understand.

That's right.

High-potent API will be a better margin than the rest of the business, right?

Let's see that has to play out because most high-potency APIs that we're working in have patent expiries that are going to come in from the year 2028. It remains to be seen, but yes, typically, these molecules do attract better margins.

I see. Okay.

A slight better margin. Thank you for your time.

I'll get back in the queue.

Sure.

Hello, sir. Thank you for the opportunity.

Building on to the questions of previous participant on high-potent molecule contribution, I wanted to understand this year, we had 12 molecules which were there. Last year, if I see same, the size was seven molecules which were there submitted and accepted.

Can you help me understand what was the contribution of high-potent molecules this year in our portfolio vis-a-vis last year?

See, the only contribution that we get is from the sale of exhibit batch quantities because, like I explained, the patent expiries are not going to happen until early 2028. Until then, our customers would not be able to launch and would not be able to buy API from us for those launches.

The only sort of revenue that comes from the high-potent segment right now is the sale of exhibit batch quantities.

It'll be fair that it'll not be the material contribution for us in the revenue?

Not very significant, no.

All right. Second question is, sir, how much would be the growth contribution from the 12 new introductions which we had for this entire year?

What would be the price erosion in our base business if I exclude GPL and CDMO business?

See, again, these 12 molecules are new molecules. Their patent expiries are going to happen in the next five to seven years.

Sir, I'm not asking about the high-potency.

No, no, even the regular ones.

Okay.

Because typically we don't go for already genericized APIs, no?

Okay.

That's the idea. You wanted to know the base business erosion, what were you asking?

Base business

Price erosion in base business, excluding GPL and CDMO.

Yeah. On that, the price erosion is about 5.5% is what we have seen on the non-GPL, non-CDMO.

All right. All right.

If I exclude, despite that, we have grown pretty well, 13% kind of growth in the base business if I exclude GPL and CDMO. That seems pretty healthy.

Are we expecting to continue that traction over there?

Yes. That is what we are seeing.

Yeah. Thank you.

Thanks for the patience.

Hi. Thanks for opportunity, sir.

Congratulations for this transformative journey under this Nirma and your leadership. The way we achieved our cash flow control, then the way we are started investing, and the way we leverage the benefits of better operating margin.

My question is, sir, first is yet another scope, which are the another area where you feel you have scope to improve further the margin or maybe maintaining this very respectable margin?

See, this year is going to be a bit challenging because of the war. Supply chains do have a little bit of constraint, but demand visibility is pretty good.

We'll have to see how the whole margin thing shapes up, but the thing is we are still confident of maintaining between 30% and 32%, percent. Let's see how it goes.

It's a bit early to sort of give the whole year margin guidance for that.

No, sir. Sir, I just wanted to understand which are the area where you see internally where you find the scope to improve the margin without giving any numbers, but you see any area where you feel internally you can do something which will help us to improve the margin.

See, backward integration is certainly one area where we see some scope for margin improvement. Once Solapur comes online in the second half of the year, we will be doing backward integration on a few key projects, and that momentum will build up as we go along.

Okay.

That is an area. Please.

Sure. Sir, second question is, during last two, three years, our objective and our basic strategy is to we don't want to go for a very commoditized any activity or business, and that's why we are very respectable, very highly profitable and business only.

Looking at the cost structure, the way we invest, the way inflation is working, if we don't grow in a double digit, then it becomes very challenging to give a better bottom line. That is our understanding as a investor.

What is your thought process for next two, three years? Will we be able to move from single-digit, lower single-digit, mid single-digit to maybe a little higher or mid double-digit revenue growth?

See, in the non-GPL business, we are already growing at double digit, no?

Yes. True.

Thing is that the GPL business is a bit wavy. It remains to be seen, but we are not seeing it staying in line with the non-GPL business.

That element will be there, but what's also happening is that as the non-GPL business grows faster, the contribution of the GPL business is going to be much less as we go forward. Honestly, see, we've interacted with you right before as well.

The thing is that the focus for us is on having a good margin profile for the business and generating good profits, which translate into good cash generation. Maintaining a high-quality business is a much bigger priority for Alivus.

Okay. Growth will come.

I'm not saying that growth will not come, but growth will not be pursued at the cost of margins, because it creates a lot of other challenges then.

True. Okay.

Great, sir. Lots of good wishes.

Thanks a lot.

Thank you.

Hello. Thank you for taking my question, and I just wanted to congratulate the team on great results.

I had a question regarding the capacity utilization for the newer facilities that will be coming up in Ankleshwar, Dahej, and Solapur. As I see in Q2 and Q3, we will have a bulk of our capex coming live.

How much time would it take for it to get to an optimal capacity utilization, because if it's coming in Q2, I don't believe that it would be ramped up immediately. Could you just share timelines in terms of capacity utilization we see in our new brownfield and greenfield facilities?

Sure. See, capacity utilization in the brownfield will be pretty rapid in terms of bringing it at the 80%, 90% level in a matter of two to three quarters because that's brownfield, that's an approved site inspected by FDA and other agencies.

That capacity will get taken up pretty quickly. As far as Solapur goes, we have done a fair amount of product mapping in Solapur.

We expect that when Solapur starts off, we should start off with a robust 40% to 50% utilization, and then probably take it up to 60%, 70% in the following year. See, we have always been calibrated in terms of building out capacity.

Okay. We've not been too adventurous, right?

Here it helps us because we can do it in phases, and that's why what we're doing at Solapur to start off is Phase 1, where we will have 370 kL for the BI block, and then 120 kL for the API block. Okay.

Capacity utilization should be, like I said, around 40% to 50% to start off with in Solapur, and brownfield will kick in pretty quickly, two to three quarters.

As I understand, FY28, because of the huge bulk of the capex coming live, would give us a huge revenue jump, but again, in FY28 and onwards. Is that a good understanding?

It'll definitely give us a runway for new launches and volume growth. Okay.

Mind you, see, the Solapur capacity, like I said, the 370 kL is for backward integration. Okay.

That won't contribute directly to front-end sales. Okay.

That capacity should not be factored into any kind of model you're building.

Fair. I completely understand.

Just wanted to understand, given after the greenfield and the brownfield expansions that have happened, do we have further available land bank for expansion down the line, or would the next phase again be greenfield?

Land bank where?

Do we have additional Land bank

I'm sorry. I could not hear you clearly.

No, I'm just asking for some clarity in the question. I'm not sure I got the question right.

Could you please repeat?

No, for our further capacity expansions beyond what is already planned, would we need to again go greenfield, or do we have land available in our existing plants to continue with our expansion?

Solapur is on 40 acres, and we would comfortably be able to add another 700 to 800 kL of API capacity in Solapur. Right now, we have only 120, right?

Solapur should give us a good runway once we hopefully get inspected soon and are through with that, then we can ramp up the Solapur expansion, and then that should give us a runway for at least three to four years in Solapur. Ankleshwar has capacity.

We can ramp up there further, but the thing is it contributes almost 65%, 70% of our revenue today, we would like to go a little slow with Ankleshwar, and Dahej is full.

Okay. Thank you for answering my questions.

Sure, sure.

Hi, good morning. Am I audible?

Yes, yes.

Go ahead. Good morning.

Thank you for the opportunity. I just wanted to understand for the API sector, how's the pricing and volume going on?

The pricing in? Can you please repeat that, Meghna?

Pricing

and volume moving in API. Can you repeat that question?

Hello? I wanted to understand the pricing and the volumes going on in the API segment.

Your voice is not clear. It is Can you be a

Hello? Is it better now?

It is a little better, yeah. Please.

Yeah. I just wanted to understand the API segment as a whole, what are the pricing and the volumes?

Are they improving, and how do we see that going forward?

See, there's a significant volume growth in all segments of our business. With respect to the pricing environment, I answered to an earlier question that we have not faced any major challenges with respect to pricing in most of our geographies because we have a newer portfolio, and so it's not that commoditized, we don't get that much pressure on pricing.

Although on the overall bucket, we do see an erosion of around 4.5%, because of the some price reduction that we have to give on some of the products. That's the overall sort of situation with respect to our portfolio.

The volume

growth is pretty good, and we expect it will continue to be that way. Okay.

Thank you. Thank you so much.

Thank you.

Hi. Thanks for the opportunity.

Most of my questions have been answered, but just on the asset turnover, how should one think about that? Because

Now?

Hello? Yeah.

I was just saying that most of my questions have been answered, but just on the asset turnover, do you think it has stabilized at 2.2, or do you foresee it going down further from here as other facilities ramp up?

It would go down a little bit more because, like we said, Solapur will be coming online soon, and some of the brownfield capacity will also be coming in. When you compare us to the industry, we are still, I would say, pretty much on top of the table there.

Okay. Let's say two is a probably a reasonable level that one can expect, or could it go down further from that?

It would temporarily go down below two as well, right? It would come back up once the utilization picks up, like I explained earlier.

Sure. Sure.

Got it. Thank you.

Sure.

Hi, good morning, everyone. Sir, we've seen R&D spends increasing consistently over the past few years as a percentage of sales.

We've spoken about flow chemistry earlier. You're also talking about high-potent API, iron complexes, as well as an evolving CDMO pipeline.

Can you help us understand a bit more in detail as to where exactly your focus lies as far as R&D is concerned, and where do you see this R&D numbers, the percentage of sales, settling over the next two to three years?

Alankar, the areas that you outlined are where we are focusing on R&D, and that's really going to drive the growth. Okay.

As far as settling down, I don't think we'll cross 4%, right? We'll probably be at 4% in the next year or two, and then it should settle down.

Then we've needed to fire off on many cylinders here because the thing is that that's how the growth will come, right? You mentioned all the areas.

I don't need to repeat. You talked about flow chemistry, you talked about the CDMO side, and we are looking seriously into pellets and granules.

That's also an area that we've started working on. It's that whole lateral expansion of the API.

We call it API Plus, right? Fair amount of investment is going into that, and then, of course, the pipeline build-up also is geared more towards the more complex molecules.

All in all, put together, yes, our R&D spend is going up, but again, it is going to pay off, much, much more than what we're investing today.

Got it, sir. The second one is more of a clarification.

When you're speaking about pricing, would it be fair to understand that given our portfolio is slightly more niche, more chronic-oriented, non-commoditized as you said, any benefit of price hikes will be limited compared to, say, any other company or any other portfolio which is much more commoditized than ours amidst this Middle East situation? Yeah.

I don't know if I said it, but I think I did, but most customers are pretty comfortable taking price rises because they understand the situation, right? Rather than have a slowdown in supplies or not have supplies, they've kind of given us the green flag that, yeah, that's fine, you go ahead, but as long as it's going to be reasonable, we're okay to absorb that price increase.

There will be some. The good thing for us is that the only area where we see that increase is on the raw material side.

On the operations side, our operations are going to be stable because we moved away from gas. We moved from gas to operating briquette boilers.

There is no impact on operational cost because of gas shortages or because of hikes in price, and that way the operation cost is going to be stable going forward even in a war situation. Certain raw materials have gone up and are likely to go up even further, but we've got a kind of green light from our customers that, yeah, we can charge them more.

It's going to be fine.

Understood. Basically, more or less on the gross margin side, we should not really expect too much of an increase, and on the other hand, not too much of a drop as well.

You're right.

Fair enough, sir. That's it from my side.

Thank you.

Thank you.

Yes. Hi, good morning, sir.

Sir, just one on CDMO, if you can talk about the Phase 3 projects, if the run rate kind of continues and the ramp-up that you are expecting for fourth and fifth, and also the new deals or pipeline that we had on the CDMO piece, please.

CDMO, the fourth and fifth project have kicked in really nicely. There's some revival even on the earlier projects, and so we expect that CDMO will continue this momentum.

Okay. As far as new projects go, we hope to close two new deals in the second half, early second half of this year.

Great. Thank you, and all the best.

Thank you.

Yeah. Couple of questions.

Firstly, if I look at the new launches which probably will have driven the gross margins, if you can give some sense what percentage of revenue incremental has come from the new launches which happened in FY26? That sort of a benchmark number or something you can give.

I don't know whether we'll be able to do that. We do have a sense.

We'll have to see, but I can't

Just to answer your question, as Doctor also explained earlier, new launches are not a very significant contributor to the top-line revenue growth. They are new launches, and the ramp-up will continue to happen on those products.

It's not like they are contributing significantly to the growth.

Got it. If I look at the HP API pipeline building, obviously, that has built up very well last couple of years.

That sort of contribution, when you say will start coming in, will it be from the same Ankleshwar and Dahej site and should start coming in from, say, FY28, or it will take some more time?

No, it'll start in FY28, no? Because customers order material at least six to nine months before the launches happen.

Sure. Do we have any meaningful big launches coming in FY27, or will that take some more time?

I'm just trying to gauge whether the gross margin expansion which has happened will continue.

We have launches.

Sure. Thank you so much.

Thank you.

Yeah. Hi, can you hear?

Yes, I'm on the handset only. Can you hear me?

Hello?

Yes, yes. Please go ahead.

Sir, just on a financial question, just to understand closing cash balance is just ₹20 million, mutual fund has increased by 3,000 ₹350 crore. Our capital work-in-progress is also increased.

Are we comfortable on the cash position? That's what I'm trying to understand,

right? Because

we have a capex of

Cash position is about ₹784 crore, including the investment in

mutual fund. Yeah.

That's what I said. Your working capital has already been paid for halfway through, I suppose, because of the ₹540 crore capex we have to do.

We are just very comfortable on the cash position, right?

Yeah. Absolutely, yeah, yeah.

The entire capex will happen through internal accruals only, yeah.

Internal accruals. That's what I'm driving at.

Thank you. Thank you very much.

Welcome.

Hello. Hi, sir.

Good morning. Am I audible?

Yeah.

Yeah. Sir, just wanted to check, in last call, we said that the CDMO two contracts will come in next six months, roughly June, July.

Now this time, we are saying that it will come in the early second half of FY27. We are expecting some delays in two CDMO contracts?

Not really expecting delays, but then I do want to moderate it a little bit. It may come in the first half also, a little late in the first half.

Just to be on the safe side, we're saying it'll happen on first, early part of second half.

Okay. Sir.

Okay. Got it.

Thank you so much.

Thank you.

Doctor, I think we alluded to that in the opening comments around the fact that how we're looking at business differently in terms of capital allocation after the changeover of the management and the promoter ownership. If you can probably just take a couple of minutes to sort of reflect on the journey since the time the ownership change happened, from a strategic perspective, what have you been doing for the last three, four years?

Now, as you look forward from the base that you built out over the last three, four years since the ownership change, how are things going to change? Is there any meaningful change, the way you're approaching the business from here on?

I'll take a little time, but yeah, you had explained that. See, what was happening is in the pre-Nirma ownership, right, our focus was purely on portfolio, and we had to cherry-pick the right kind of molecules so that the growth came as a result of that.

There wasn't much scope to go laterally. Okay.

Essentially, the R&D investment continued to be in picking the right molecules and taking them forward, which is helping us now for sure. Then the capex investment was again geared up to just ensure that whatever volume expansion happened as a result of overall volume growth, but also as a result of new product introduction as the patents expired and the customers launched.

That was very limited. Now, I just answered Alankar's question on why the R&D spend is going up.

That is basically what has significantly changed in terms of our thinking, in terms of the various directions that we can get into. It obviously starts with R&D, and we are looking at various new areas to get into.

Of course, we've done enough market analysis to see whether all this will pan out. Okay.

One example that I can give you is the kind of work that we did in flow chemistry. Very recently, we've even commercialized one flow chemistry product, which is doing exceedingly well.

The confidence we have now in employing flow chemistry has gone up multifold because we've had commercial success on our very first project in flow chemistry using flow chemistry. The investment in flow chemistry in more complex molecules, in lateral growth of the current portfolio are the areas where we are investing, and we are able to invest relatively freely because we are not just limited by a capacity build-up for the future portfolio.

These are areas that we believe will drive growth in various different directions. Only time will tell, of course, but that work has begun in earnest.

If and

if I would sort of take that forward, when you look around you, obviously, when you look at India, the Indian environment as well as probably some of the global ones, when you look at your peer set, what is it that we, in your mind, do differently versus the others, which rather what we do better than the others, which sort of give us gives us this profitability metrics the way they play out, and and a confidence in growth that we have?

I think the others are also doing well, but they've chosen their path. With respect to our own sort of path or DNA that we've picked is we want to have some element of uniqueness or higher entry barrier in whatever we are doing.

Okay. The thought process here is that at least gets a fair amount of differentiation going so that in the longer term, we can sustain our business much more profitably.

This is the whole point here. See, what happens is that this is a choice you make way before.

We made this choice seven years ago when we became Glenmark Life Sciences and took that direction. That direction that we defined for ourselves and then consistently stayed along that is what has helped us.

This is what I would say. Look, and the peers also, there are people who are doing really well.

There are companies that have done exceedingly well. They've branched out pretty smartly into various areas.

Of course, some because of portfolio choices and because of the overall competitive intensity in the market, there are challenges, right? Still, I would say, overall, people are focusing on the direction that they set for themselves.

Thank you so much.

Thank you.

Hi. Thank you for the opportunity, and congratulations on a very good result.

Doctor, could you help me with what is the revenue contribution from the geographies, or at least the top two geographies, be it US or Europe or any other geography? Could you help with percentage revenues?

See, we have mature geographies that are contributing quite evenly. If you look at India, Europe, Latin America, these geographies, and even the US, right, they're contributing pretty significantly.

The newest geography for us that has come in in the last four to five years is Japan. That's relatively small compared to the others, but that's also growing quite well.

We are pretty evenly distributed across the geographies with respect to sales. Because the product selection that we made, and again, this goes back to the answer I gave to Nitin Agarwal from DAM, is that the selection of portfolio that we made over the years has been for all geographies.

We've tried our best to make sure that we select those molecules accordingly. The overall growth in all the geographies has been pretty significant.

Like I said, even Japan, which is a relatively smaller geography, is beginning to shape up very nicely.

Okay. Thank you.

The other question I have is with respect to the contracts that we have with our customers. Now, if you could just help me understand whether these contracts are long-term in nature, or they are kind of short-term, you get contracts for deliveries few months out, something like that.

If you can just give a flavor, give an understanding of how the ordering from the customers work in our this thing, and if there's a differentiation in terms of the older molecules versus the recently launched molecules, if you can throw some light on these aspects.

In our business, right, in CDMO, we have contracts, and these are longer-term contracts. On the generic API side, we have fewer contracts, but even where we have them, they're not that long-term.

It could be for a year or year, two years at the most. That's how.

We prefer that really because the environment is very dynamic and we can't get locked in to very cumbersome kind of clauses and get stuck. Now, if you see this war situation, we are asking for price increases.

If we were contractually bound, then we would have trouble, right? Here it's much better that we work with the customers as and how things progress.

We don't see any downside to that either, it's better really not to be too badly tied up in contracts.