strategic priorities of enhancing our manufacturing capabilities, strengthening compliance, and accelerating automation. We generated net cash inflow of $118 million during the quarter resulting in improved net cash position including investment and appropriating for the purchase consideration of domestic pharma acquisition of $251 million as on 31st March 2025 compared to $170 million as of September 30, 2025 on average finance cost of 4.9%.

Net profit for the period stood at ₹910 crore after one-time cost due to change in the labor code amendment ₹65 crores. Update on Pen G plant on MAP: the ramp-up of the facility is progressing in line with expectation and is well positioned to deliver a meaningful uplift in profitability over the time.

Based on our current production level, we expect to produce more than 10,000 metric ton on annualized basis over the next 12 months. It is important to know that the yield levels are steady and improving consistently over time.

The government of India issued a notification introducing a 1-year CIF on minimum import price for Pen G, 6-APA, and amoxicillin. The policy change will act as a very important and positive catalyst event for the company.

Finally, we consider this decision by government of India strategically important for creating India's self-reliance in antibiotics and reducing supply disruption risks, and will boost the domestic manufacturing of APIs and KSMs. Outlook: as we look ahead, we are highly confident in our ability to sustain the growth momentum and consistently create long-term value across all business segment, supported by our strength of diversified operating model, expanding manufacturing footprint, and strategic bolt-on acquisition.

With manufacturing capacity exceeding 60 million units and further expansion underway, we are well positioned to support rising demand across various markets while improving operating leverage. Europe continue to deliver a strong and consistent revenue growth.

Our operational execution, expanding product basket, and reliable supply capability continue to drive overperformance and reinforce customer partnership. In US, we are entering into a important phase of growth.

The Dayton facility has successfully transitioned into a commercial phase with manufacturing underway, right, and will begin contributing revenues significantly from FY27 onwards. In parallel, Raleigh facility remains on track pending regulatory clearance, and we are fully prepared to scale up the operations.

The Lannett acquisition further strengthen the US business, and this is subject to regulatory approvals. Our OSD China facility continues to progress steadily advancing towards an annual capacity of 2 billion units currently supported by EU approval for 10 products and three local product approval.

We remain confident of achieving a EBITDA breakeven in Q4 and meaningfully contribute to the bottom line EBITDA in the next year. Our strategy on Pen G, 6-APA, and amoxicillin represents structurally important initiative that will enhance cost competitiveness, reduce external dependencies, and strengthen margin over a period of time.

We expect to ramp it up to nearly 65% to 70% by March '26 against the last year average of 42%. Already we are significantly ramped up in January '26.

Looking ahead over the next 2 years, our growth will be driven by several clearly defined and scalable initiatives. We continue to build differentiated product portfolio with increasing focus on complex generics across dermal, transdermal, nasal, respiratory, and oncology which positions us well for sustainable growth over the medium to long term, incremental contribution from robust pipeline of new product launches.

The injectable business continue to show steady improvement supported by supply ramp-up, improved service levels, and higher capacity utilization contributing to better operating performance. Supply from China operations into Europe are increasing and helping improve global cost efficiency and supporting margin optimization.

We are seeing incremental benefit from portfolio acquisition which strengthens our business in the growth markets and adds scale to the overall business. We are progressing well on our biosimilar and biologics strategy.

Taken together, these initiatives provide strong earnings growth visibility and reinforce our confident in achieving our internal EBITDA margin target of mostly on the higher side of 20% to 21% for FY26. We remain sharply focused on our execution excellence, operational rigor, and prudent capital allocation which we believe position us for sustained performance and long-term value creation.

With that, we would be happy to take your questions. Our senior leadership team look forward for sharing additional insights and classifications.

Yes,

Morning, sir. Am I audible?

Hmm. Am I audible?

Thanks for the opportunity. Sir, with respect to Eugia III inspection, if you could share some color in terms of the nature of observations, and secondly, if implementing any measures to address these issues, will this require certain let's say temporary stoppage of production or anything of that sort if you could throw some light on that aspect?

I think, Tushar, we have already clearly mentioned this, stating that these are all procedural observations. There's no stoppage of production, no stoppage of any nature.

These are procedural and technical, and we are very confident of responding within 15 working days to US FDA. I don't see any issue.

That way the production also will be on the continued process per se.

That's right. I think we are very, very clear.

I think last time inspection was completely different, and this time inspection is very positive from that perspective that we don't have any data integrity issues, which was the issue last time unfortunately. These are all procedural in nature.

Procedural means it requires a 1 week or a 10 days, some SOP changes, some corrections here and there. Absolutely no problem.

That's good to hear, sir. Just one clarification from the opening remarks.

Ex-Revlimid, we highlighted US sales would have grown at what rate over year-over-year basis or quarter-over-quarter?

I think we have given it around 9%.

US sales, right?

No, overall.

Sir. That's it from my side.

Thank you.

Hi. Good morning, and thank you for the opportunity.

This is Damayanti from HSBC Securities. My first question is again on Eugia.

As you mentioned, the observation seems to be procedural in nature and it might be resolved within your stipulated timeline. Given we are yet to get full clearance from the FDA, what kind of trajectory we should build for or we should assume for the US injectable sales?

In your opening remarks, obviously you mentioned this segment has seen good pickup. If you can just talk a bit about it?

Damayanti. These are procedural in nature, and we will respond.

We are cautiously optimistic about the future of this facility. Ultimately, US FDA has to take a decision in terms of the warning letter.

I cannot comment on what exactly they will do, but we feel confident that we will be in a position to respond. In my view, probably next year will be again same double-digit growth, what with the ramp-up of supplies and other stuff happening from various other facilities.

It should be in that same trajectory till the time the warning letter gets lifted. In case if the warning letter gets lifted, then it'll be a different this thing, that we can talk in subsequent quarters.

At this juncture, we are cautiously optimistic.

During the quarter, you mentioned injectable sales grew 7% or 17%? Sorry, I missed that number.

It is 17, that is what Subbu mentioned.

17, okay. Sir.

That's good to hear. My second question is on your Europe business.

Although in reported numbers, I think reported terms growth looks very strong, in constant currency, we are seeing this segment growing in low double digit for last two quarters or so. With now the China supply improving, how do you see this business ramping up and say from current low double digit in constant currency, what kind of growth we can assume once we see a higher supplies coming from China?

Subbu, can I take this?

Murali, yeah.

Yeah. Damayanti and rest of all, good morning.

Murali here.

Good morning.

Low double digit in itself is well ahead of the market growth rate. This is what we are tracking.

All our leading geographies, whether it is France, Portugal, Germany, and Netherlands, they're all showing double-digit growth. Of course with more launches happening and supplies from China, we expect to grow further.

Several launches are lined up, both late-to-launch and some of the loss of exclusivity products. We expect further ramping up in the coming period.

The trajectory should improve as China supply picks up? That's what we should look forward for?

Definitely. This is the trend we have been demonstrating if you really observe from the last couple of years Q-on-Q.

We will continue to maintain that momentum.

Sure. One last question if I may ask.

If you can update on your Vizag facility? What is the status or update there?

Damayanti, are you talking about injectable facility, which one are you referring to?

Injectable one, yes.

Yeah. Injectable one, we have already filed three products and some 10 more products are under filing.

We expect a slow commercialization to happen in next year, FY27. Because we are going to file a very, very important products from this facility because we have a cartridge line where we will be taking all the GLP-1 products from there and we'll be filing, and we have a PFS, we have a BFS.

It'll be eight lines by end of this year, this calendar year. That is what we want to restrict it to, so that the ramp-up should happen starting from FY27, and we should take full benefits starting FY28.

So '27, '28 is a time when we can see significant, yeah, contribution coming from here, yeah.

That's right, Damyanti.

Okay. Thank you.

Thank you very much.

Thanks for taking my question. My first question is on Lannett.

Could you give us an update on where we are in the approval process from the FTC and when should we expect the completion of that transaction? Just to follow up on Lannett, in your view, what would be the rough overlap between the Lannett portfolio and Aurobindo portfolio that FTC could probably look at?

Thanks, Neha, for the question. Right now we are actively engaging with the FTC through our attorneys, and we are very pleased with the progression of the process to this point.

We feel confident that this process will be completed early in the next fiscal year, that is Q1 of '27. As far as the overlap is concerned, there are no surprises.

There are no negative surprises. That's all I can say because obviously this is a very confidential matter.

I cannot disclose it. We are quite pleased with the way it's progressed, and like I said, there are no negative surprises.

Understood. I should assume that there's no risk from an FTC perspective in terms of timelines for the closure of this deal?

At this point, we are not looking at it. In fact, we are looking for a closing sometime soon.

When I say soon, it's like I said in the first quarter of '27.

Understood. That's very helpful, sir.

My second question is on the Pen G capacity. Subbu sir, roughly what would have been the EBITDA impact from the Pen G facility in fiscal '26?

As we think about the 10,000-ton production that you've mentioned over the next year, at what point do you see this actually start reflecting in the gross margins and possibly even external sales? How should I think about how we monetize this capacity?

See,

as I said, no, while we have been improving the yields consistently and increasing the production this quarter, obviously compared to the current prices, the MIP prices is a little bit more. The full impact of it you will be seeing it from the first quarter because there is already a stock available in the market which hopefully will get consumed by end of February or mid of March.

You should start seeing the improvements in April onwards.

What would be the EBITDA impact in your assessment from the Pen G capacity this year? What would be a rough assessment of how much burn we have seen from that facility?

I think we should be getting a good EBITDA. You are already knowing the numbers.

While we may not like to specifically talk about the EBITDA numbers, but it is well known based on the current market price and the MIP price, etc. Even assuming some discount, we could see a improved EBITDA in the coming year.

Is it fair to assume that when you say we'll start seeing an impact of this from first quarter, the facility will breakeven in first quarter FY27?

Let me put it like that to give you some more color. We have already broken on the Pen G facility, and we started making a little bit contribution in now itself.

However, where we have been losing out is on the 6-APA prices where there is a predatory pricing and it is going well below the cost of manufacture internationally also. With the correction in the MIP, etc., hopefully this should get resolved by end of March or maybe by April.

You got it?

Understood. I should start assuming 6-APA external sales from first quarter as well then in that case?

Correct. Because there is enough stock in the market and at low prices.

All right. Got it.

This is very helpful, sir. Thank you so much.

Good morning. Subbu sir, just to follow up.

This Pen G sale for the quarter, how much was produced, and Was it sold or fully utilized internally?

I think the last quarter, we have fully utilized. See, we are now based on the January production, we are nearly 9,000 to 10,000 annualized number.

We have gone to that extent. We have already ramped up significantly in the month of January, and hopefully this will get further ramped up in the coming months depending upon the availability of the stock in the market.

We will ramp up in such a manner there is no over material available like that.

Understood. Last quarter, whatever was produced was used internally?

Yes, barring few tons, right, we have mostly consumed it internally.

Understood.

One good thing is the yields are improving, the production has stabilized fully. It is a question of we need to put more fermenters and then produce the maximum.

Capacity is of two things. One is utilization of all the fermenters, and the second factor is the yield improvement.

Yield improvement, we have been achieving, progressing well, and full deployment of the fermenters, we are in the process only. We will do it, and ramp it up the time we need to ramp it up.

Got it. What I was wondering is last quarter, the MIP was not in place, the market price was low.

Using our in-house Pen G, did it really help the margins? Because from outside, you could have probably got it cheaper.

No, as I told you, no, Pen G, we are making breakeven or slight profit. It's a question of 6-APA across the market and the resulting amoxicillin price, which has really put the entire market at a loss.

That is getting corrected. Hopefully, by April, it should get corrected fully.

No, no, you breakeven, I understand that. Since the market prices were lower for the entire product basket, not just Pen G or 6-APA

Yeah. We incurred loss, and that loss has been observed as part of the EBITDA margin.

Got it. Second, the quarter gross margin, about 59.5%, is one of the highest, probably higher than some of the quarters where generous contribution of generic Revlimid was there.

What has led to this kind of strong margins, and how sustainable is it?

Is question meant for me or any specific business you're asking?

No, no, overall gross profit.

Overall. I think with improved performance of the Pen G and the related products, I think our losses whatever the losses we have incurred has come down and which will turn into positive.

This will help, and overall, Yugandhar also said, no, with the injectable business is expected to go up and every business is working, and Murali has said he is working on a double-digit growth, etc. All put together, I think we should able to show a sustainable improvement in the EBITDA margin and the overall profitability.

Got it. One last small question.

There is this product pomalidomide, Pomalyst, which is opening up for generic competition anytime now. Are we part of that first-to-market launches?

Yes, we'll be launching, and we have already prepared for the launch.

This quarter itself, right?

That's right.

Okay. Thank you.

Thank you. Thank

Hi, good morning. Am I audible?

Hi. Couple of bookkeeping questions.

We've been seeing a reasonably elevated tax rate for the last four quarters. Second, just following up on the earlier participant, not specifically for Pen G, but really, various capacities are in the process of ramp-up: Lyfius, Qule, Aurore Actives, China, Dayton, Raleigh, steriles.

Just wanted to get a sense on what's the EBITDA burn of all these businesses which are in the ramp-up phase, probably for 9-month FY26 or your estimate for FY26?

Subbu, this question is for you. I think he is asking EBITDA burn because of various initiatives.

Can you hear me now?

We can hear you.

Yeah. Tarang, the first question is on the tax rate.

What has happened is today Curateq, today Lyfius, all these are independent companies, right? We have incurred losses on account of the ramping up and other things and Curateq on account of the R&D cost and other things, right?

Ideally for the losses, we should have taken a tax credit, but we have been very conservative in our accounting, we are not taking the tax credit. Once they started making profit, we'll take that tax credit with retrospective effect.

That is the reason why you are seeing a higher tax rate. Otherwise, the tax rate for the entire company, in fact, Lyfius, the tax rate should be around 15%, and Qule also 15%.

We will move towards that. Over a period of time, we will be around 25%.

Today we are in a ramping-up phase, and that is the reason you are seeing it. Nothing to worry about it, okay?

There's a deferred tax asset that's getting created, is it, for all these

No, we are not creating the deferred tax asset. That is the point I'm trying to tell.

Okay. Got it.

Okay? If I take the deferred tax asset, if I create it, automatically I should give the credit to the P&L, which I have not done.

Got it. Yeah.

Right?

In terms of the EBITDA loss, as I told you, we are incurring losses in some of these, which will get translated into profit in the coming quarters. We are not specifically giving any number, but we'll be making profit over the period of time.

Got it. On the biosimilars business, we saw an announcement around vaccine restructuring, and second, I was curious, for Lucentis, is the Phase 3 through EMA waived?

Tarang,

hi. This is Satakarni.

I would answer your first question. With the Aurovax merger, the intent is consolidating and improving our utilization of the existing capabilities that we have built in Aurovax.

Essentially, the idea is to retain some flexibility to repurpose the capacities that we have built there from 2018 to the COVID period. As these capacities, some of them can also be needed to support the future biosimilars roadmap.

In the nutshell, from the board and management, this is more about us looking into operational efficiency and agility, but not a change in strategic direction. I hope this answers the part one of your question.

What was part two?

For ranibizumab, is the Phase 3 waived in Europe?

No. Ranibizumab is a product that goes into the eye, it's an ocular product used for wet AMD.

Essentially, you need to inject the drug into the retina nerve of the eye that requires a small minor surgical procedure which is done in a clinical setting. The Phase 3 is not waived for such products because you can't do PK/PD study of such ocular products that gets injected into the retina nerve of the eye in healthy volunteers, you'll not have any volunteers to do this study.

Hence, a Phase 3 for products like ranibizumab will not have a waiver.

Got it? Does

that answer?

Yes. Understood.

Thank you. Last question on the US generics business.

Till calendar year '24, OTC was doing about $100 million of revenue. Just curious, how has that played out for calendar year '25, and what's your outlook for calendar year '26?

Thank you.

Thanks, Tarang. We don't normally talk about the dollar value for separate set of business, but I can tell you for the last couple of quarters or three quarters, OTC has really picked up and we are looking at it as fast-growing segment within the US.

We expect very good momentum in the sales and volumes for the OTC business.

Okay. Thank you.

Hi, good morning. Thank you for taking my question.

Satakarni sir, just again on just the biosimilar journey now in the next 12 months, what are some of the milestones and timing that we need to keep in mind, and any way to kind of assess how large this could be for us over time, maybe fiscal '27 and over time?

Good morning, Shyam. In terms of milestones, Shyam, in the last quarter, we have announced our first Canadian approval, which is an important milestone for us on the back of the four biosimilar approvals that we had in the European Economic Area.

We are preparing some momentum in Europe and growth markets through these approvals, which will be translating and converting into launches in this year. We have already build our first product the previous quarter.

We are trying to execute multiple things. Bevcala, which is bevacizumab biosimilar, is already launched in the UK.

Dazublys, which is our trastuzumab biosimilar, was launched in the Baltics territory through a partner. This means we are moving from the readiness or the development phase to real on the ground commercialization.

Beyond this, our strategy in European Economic Area extends far beyond simply selling biosimilars through our subsidiary. We aim to achieve comprehensive coverage across European Economic Area, across LatAm markets, and also in Canada.

In fact, in LatAm, we are making a stepwise and disciplined approach country-by-country. We just won a tender in Mexico, which we have to service in this year.

We have made a strong start with Mexico. We are also making a foray into Brazil.

In fact, we have a GMP ANVISA inspection announced in May, which will then leads the path towards approval of at least four products. Over the medium term, with the omalizumab and denosumab biosimilars that I was providing guidance for, which I have to complete the validation campaigns and then start filing them from June-July in both Europe and US, the capacities will get freed up and the commercialization readiness will become more real.

I believe '29, to answer the second part of your question, as I've always stated, '29 would be the inflection year for biotech. All the efforts that we have made in bringing four biosimilars into the market in the last 1 year and with two or three more ready for filing in both Europe and US, we expect to ramp all this up, convert this into some sort of commercial momentum by 2029, which is our inflection year, I believe.

Does that answer your question?

Yeah. Thank you, Dr.

Satakarni. Just one sub-question before I go to the second one.

This budget announcement of this Bio-RIDE, Dr. Satakarni, anything I know it's early and maybe the details are not yet out for biomanufacturing in the country, anything that you have, any insights from industry discussions, or if you were to say or recommend to the government, what would be some of those things?

A very interesting question. I get asked this question in the last 2, 3 days.

Broadly, Shyam, I speak for myself and not for Aurobindo here, broadly initiatives like Biopharma SHAKTI are directionally positive for the sector. If executed well, and that's my big takeaway, if executed well, it has the potential to strengthen the ecosystem, biotech ecosystem, in terms of from the fine script what I read, in terms of skill development, the clinical trial sites and how we go about conducting clinical trials and the availability of these sites, faster translation from development to manufacturing, and let me remember, the predictable regulatory and quality environment that the government wants to create around this initiative.

For the biosimilars and biopharma industry, I think the biggest takeaway will be an improved ecosystem maybe into the beginning of the next decade if it is implemented well. The challenge is, therefore, can we develop a stronger local capability in clinical development?

When I say clinical development, do the trials that we do for complex biologics and biosimilars and new chemical entities in India stand the scrutiny and rigor of the agencies like FDA and EMA? Are many companies going to achieve that sort of skill?

That's question one. Then I believe this also helps build stronger local capability in single-use and critical consumable supply chains.

As during COVID, the industry in general has suffered from dependency on the West on single-use bags, filters, and resins, which are so vital to delivering drug and purifying them or producing them. Hopefully the commentary in the Biopharma SHAKTI about skill development because there's a lack of human resources pool right now that can really help us compete with the evolved industry in the West.

I believe these are the three big takeaways: an improved ecosystem in terms of local capability building in process and clinical development innovation, single-use critical consumable supply chains, etc. What is important again to summarize is the regulated markets will continue to require extremely stringent quality systems and rigor in GMP and GCP compliance.

The success of Biopharma SHAKTI will depend on the execution. Let's wait and watch.

It's just been, I think, 2 weeks. Let's wait and watch.

I am supportive of the tailwind it brings, especially when people like you ask the questions, which means you are looking forward to the tailwinds that it will bring. Let's wait and watch that it translates into real results.

Thank you. Helpful, sir.

Just my last question to Subbu sir on on the balance sheet. Our net We're now net cash.

I know there's a Lannett acquisition still, but just want to understand from an outlook perspective on M&A or is what are some of the key priorities for us, apart from capex and dividends, what are some of the key priorities for us as we look forward?

Shyam, which I told you earlier also, we are not going for any major greenfield project other than whatever be committing to TheraNim, which is the biologics which Satakarni has informed, right? Otherwise, we are not going for any major organic.

In terms of the inorganic, yeah, we keep on looking at it, but it is not that we need to do it urgently, etc. If we get the targets at the right price and fitting into our strategy, we will look into that.

I think this is the main thing actually in terms of the capital allocation.

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

Can you hear me?

Yeah. Sir, just one question on the Pen G and 6-APA.

Since the prices of those imports had started coming down at the start of FY26 or the end of FY25, and we have imported bulk amount of 6-APA at least in FY26 [unclear]. Is it fair to say that some of the gross margin improvement that we are baking in from the internal consumption from our facility is already there in the numbers because we are already getting a lower-price imports?

Would eventually No,

Kunal, your question is right actually. That was the scenario 1 month 1.5 months back, but now the prices are started going up, okay?

Whatever may be the production, we are anyway not going to buy it from them unless it is required absolutely essential for various reasons, right? We will be producing, and our cost of production is also coming in line, we should be seeing a improvement in the gross margins very clearly going forward, right?

That is the thing.

Okay. Sir, the MIP, when you would have made the representation to the government, what would be the basis of that?

Would that be the cost of production plus a decent profitability is on that basis the government would have decided based on your representation? Or there are more factors in the consideration?

Kunal, your question is absolutely right actually. This is a question, but since I'm privy to certain information which has been worked along with the government, I'm unable to disclose anything further on this.

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

Thank you. The

Yes. Thank you so much for the opportunity.

One question is with regards to the Lannett acquisition, the settlement amount or the fines, is it final or it can increase? Will it get adjusted in the price or not?

Swami?

The settlement of Lannett is their liability. Aurobindo is in no way liable, nor does it change the math.

Okay. The price also remains the same while these will be settled independently?

Till the actual acquisition happens, and any liability till that date will be that of Lannett.

Okay. With regards to the PLI amount, when and how much are we expecting to come from the government?

It is like this, Jigar. As per the government, it is ₹240 crore for every 10,000 tons, right?

As and when we produce the quantity, proportionately it will come.

Got it. We are already at 9, 10,000, you've mentioned kind of so.

Absolutely. Hopefully everything goes well, we should be able to see the full year next year, we should be able to see the full amount.

Great. One question I'll take now is you mentioned capital allocation.

Would

buyback figure given there's been some tax this thing as well, and last time we did it at 1450, now the price is lower and, of course, there is a slight tax benefit for the non-promoters?

This is a very good option which came in the budget. Probably the top management, promoters, board, everybody is aware of that.

I think this is coming with effect from 1st April. Let's wait and see.

We have another 2 months' time. Now this needs to be passed by the Parliament, and any changes, anything, we'll take into account and decide appropriately.

The board will consider this and then decided in the best wisdom, depending upon the circumstances.

Got it. Thank you.

Thanks.

Hi, sir. Am I audible?

Hello, am I audible?

Hi. Congratulations to the Subbu sir and the Aurobindo management team for the MIP on the Pen G part.

Sir, just one help which I wanted on the modeling purpose. We have got the MIP at $25 for Pen G.

Sir, if we do the calculation, the two two Pen G equals to one 6-APA, and most of the formulation players source 6-APA or the amoxicillin where the prices are similar to the market. From the modeling purpose, should we take the prices at $25 per kg, or we should reduce it down, keeping in line to the ratio and MIP that we got on the amoxicillin and the 6-APA?

Harshit, your question is very good, but you should ask some of the consumers to get the right answer. Certainly, I would not like to give any number now.

No. I'm not looking for exact number.

Just directionally, sir, lower than $25?

I think directionally I have already said, no, the prices have started going up. To what level it can go up, where it will end, we do not know, but certainly we are very confident about it.

Okay. Because, sir, two two Pen G, one 6-APA implies $50 prices, but we got the MIP of $37 prices.

If we take in modeling the $25 price, then it implies to $50 while actually it will be $37. Is it right understanding, sir?

You're right understanding, but certainly when you buy Pen G solid and then convert it into 6-APA, there are additional costs involved, etc. The way our process have been done is we will not do solid Pen G, we will convert it at the liquid level, there is a saving coming.

Okay?

Sir. The second part, as Eugia plant inspection has just completed, and are there any other plants which are due for inspection or which you think can be for the inspection for let's say next 6 months or 1 year?

Yugandhar?

These are all unannounced audits. We don't know when they will come and what they will do.

There is nothing called pre-scheduled inspections mainly from US FDA. It'll be very difficult for me to comment which plant might get audited next.

Sir. Thanks.

Thanks a lot, sir. Thank you.

Thanks for taking my question. Subbu sir, there has been a significant depreciation of the rupee against the USD as well as the euro over the last few months.

Are our numbers already beginning to reflect some of the impact of depreciation, or how should we think about it next year?

I think one of the thing, no, because of the translation effect also, the depreciation is going up, right? That is also one of the reason.

You're talking about the rupee depreciation on the top line or what is your exact

Yes, sir. The rupee impact of the rupee depreciation on our P&L, what kind of gains can we get, and is it already beginning to reflect in our numbers?

It's already started reflecting on the numbers, right? Whatever sales happening at end customer, that is at the Europe level or US level, etc., we translate at the average rate for the quarter, right?

The numbers are reflecting the actual this one. If there is further depreciation of any currency, etc., against dollar or appreciation against dollar like euros, etc., that is also will get reflected going forward.

Sir, my question was, is there a lot of gross margin improvement, is it fair to assume a fair bit of that has come on because of depreciation of the rupee against the dollar and the euro?

No. Because everything will get translated into, no, whether it's a cost, everything we will translate into the average rate.

It is not that only the top line we are translating, other things we are not translating. In fact, if you really see, no, you look at the other expenses.

Typically, it used to be around ₹1,700, ₹1,800 crore. Because of the translation effect, etc., it is now at ₹2,000 crore.

Right. The last one on this, sir, for Europe, what proportion of our supplies are done from India and how much do we source in Europe itself?

I think, Murali, you would like to take the question, or can I answer?

No, maybe I can give a high-level update.

Almost

closer to 60% of the sourcing happens from in-house sources. It is steadily we are also transferring the third-party products, the key ones, to our in-house sites.

The balance comes from third-party sites.

Right. Last one, sir, on US, how many new approvals or new launches are we expecting in FY26 FY27, sorry?

Can you repeat that question, Nitin?

Sir, how many new launches are we expecting in the US market in FY26 FY27, sorry?

Approval is one thing, and then we have the launches, because some of the launches could be what is approved, we may be launching later. We launched about nine products in the last quarter ending December.

We believe similar kind of trend would continue for the next 12 months. On a yearly basis, if you multiply, that's what we can look at.

If I can squeeze a last one, Subbu sir, what capex should we assume for the business for FY27?

I think other than the biologics capex which I mentioned, aligning with the strategy of the biologics, I don't think we'll be incurring anything beyond around $150 to $200 million because we are not planning for any greenfield, no?

Right.

Maybe some acquisitions, etc., may come, right? That is one-off depending upon the target.

Sir,

how much money is planned to be or spent on the biologics CDMO business over the next couple of years?

Nitin, the capex into the CDMO business TheraNim right now is about $120 to $130 million US dollars over the last seven quarters. Subbu, you may correct me.

That's where the capex expenditure stays unless we have a few business deals and we decide to expand our CDMO offering and build additional capacities. Right now, what has been spent on TheraNim or what will be spent on TheraNim in total with the spend that was incurred over last six to seven quarters is all put together will be, I think, $120 to $130 million US dollars.

Okay. Thank you so much.

Sir, thank you for the follow-up. It's a follow-up on the previous question only.

With regards to this 120, 130, how much would have come in by now and how much would come in FY27? Is it fair to assume that these are for two products, and if there is a product addition, then another ₹300, ₹400 crore of additional would one should budget with every new product?

I will answer your part two of the question and will ask Subbu to answer the specifics of the budget later. Part two of your question, this deal was signed for one product in May 29, 2025, and then we added second product schedule somewhere towards the end of I think Q2 or Q3 last fiscal.

Essentially, this is for two products, and the total capex projected is around 120 to 130 million for both the products, the capacities for both the products together. Subbu, can you answer him on the capex flow?

Yeah. Jigar, the capex, as Satkarni says, $100 to $120 million type, probably we may be incurring anywhere between $80 to $120 million in the next 2 years.

Got it. Sir

We have incurred certain things already. Depending upon the level of progress Satkarni is going to accelerate the entire process in this Q4, the balance will be incurred in the going forward.

The bulk should come up in FY27.

Correct.

Got it. Just one last question is with regards to is there anything if you can help as overall how should the US market margins look for the next year, maybe dollar terms or whichever?

With this capex, etc., is there something on the returns or the ROCE or ROE that we may want to comment on? Thank you, sir.

Subbu, you want to talk about the margins of the US?

No, Jigar, we are not giving any specific margins for any business. Overall margins only.

You can take it the balance, Swami.

Yeah. The next year, the coming year, I think it's not be different from current year.

We are Actually, we are looking for some improvements in terms of numbers, overall numbers. Obviously, when the numbers improve, the margins should also be better.

We have not seen anything that's going to be negative at this point of time.

Okay. Is a double digit something which is possible or which one should expect, not a

Double digit of what?

US growth.

Okay. That, Swami?

The

oral solids is sitting at base of about $1 billion. Then, yes, in specific segment we might have, but if you see the oral solids at $1 billion, it's very difficult to achieve.

Who knows? We have got Lannett that's going to be acquired, hopefully with the FTC approval.

That can create synergies, and that can help us better business deals. As you grow bigger, it's going to be difficult in terms of percentage of growth.

Right. Got it.

Thank you very much, sir. Thanks a lot, sir.

Thank you.

Oh, I think there is

There is only one person left out. With that, you can close it.

Oh, he also left. Fine.

Thank you.