Hi, thank you. Hi, good afternoon everyone and a very warm welcome to IPCA Labs Q2 FY '26 earnings call hosted by DAM Capital Advisors Limited.

On the call today we have representing IPCA Lab management Mr. A.

K. Jain, Managing Director, and Mr.

Harish Kamath, Corporate Counsel and Company Secretary. I will hand over the call to Mr.

Jain to make the opening comments and then we'll open the floor for questions subsequently. Please go ahead, sir.

Thank you. Thanks, Nitin and DAM Capital for organizing this call.

Today's earning call and discussions and answer given may include some forward-looking statements based on our current business expectations. This must be viewed in conjunction with risk that pharmaceutical business faces.

Our actual financial performance may differ from what is projected and perceived. You may use your own judgment on the information given during the call.

Domestic formulation business for Q2 FY '26 has delivered a growth of around 8% for the quarter. Business of the quarter has impacted due to GST rate rationalization's rate structure correction made during the month of September 2025.

We have seen that subsequent to that in October month, we had a very good business recovering on domestic market. IPCA's MAT September 2025 rank continue to remain around 16th as per IQVIA.

Compared to MAT September 2024, market share of IPCA has improved from 2.3% to 2.8% in MAT September 2025. Both in acute and chronic segment, we have outpaced the IPM as per IQVIA data for the quarter.

Overall market growth in this period has been around 7.8% and IPCA has grown in Q2 around 11.6%. On acute side, market has grown by around 6.2%, IPCA's growth was around 8.2%.

On chronic side, market has grown by around 10.3% and IPCA's growth tracked by IQVIA is around 14.2%. Both chronic and acute business both has delivered better growth and overall share of chronic business in overall IPCA's business has moved up from 34% in last quarter to around 35% now.

For market, it is around 40%. We are continuously now increasing our business share from chronic business now.

On export formulation business for the quarter is around ₹493 crore as against ₹541 crore in last financial year. That has declined by almost around 9% for the quarter.

For H1, it is around ₹941 crore as against ₹937 crore in H1 '25, almost flat. We are expecting a business growth of almost around 8% 8% to 9% on generic formulations in S2 '26.

On API front, for API business, Q2 FY '26 has delivered a growth of around 28% from ₹319 crore to around ₹408 crore on back of better business from Europe and Latin America. Overall API business of current financial year is expected to grow around 14% to 15%.

For Q2 FY '26, R&D spend has increased to around 3.91% of the turnover from 2.7% percent for Q2 FY '25. Higher R&D spend of around 4% of turnover will continue for the current financial year.

On margin front, our standalone EBITDA margin has improved to around 25.46% for Q2 FY '26 as against 22.89% in Q2 FY '25, an improvement almost around 2.57%. Consolidated EBITDA margin for Q2 FY '26 is at around 21.68% as against 19.1% for Q2 FY '25.

That consolidated EBITDA margin for the quarter has also improved by almost around 2.5 58%. Looking at overall the margin improvements in the Q2 of the current financial year, we see that from our guidelines of around 20% consolidated margin, the margin are expected to be better by almost around 1% in the second half and that improvement will be there.

Having given the broad numbers, now I request participants to ask the question.

Hi, good afternoon. Thanks for taking my question.

I just wanted to know, sir, your comments on GST impact if you can quantify, and also if you can throw some light around various therapy dynamics in India, how those are growing in the secondary market please?

Overall, let's say, the pain is our biggest segment. That continue to grow around 10% to 11% kind of growth is there on that segment.

Q2, we have around 10% growth and for H1 '26, we have 11% growth. As far as cardiovascular segment is concerned, as we had talked earlier that in the first quarter of current year, we had a major restructuring in cardiovascular business because we had added two more division and that the first quarter business was impacted because of that.

In second quarter, we see good recovery around this business has grown by around 11% and for consolidated for H1, the growth is around 10% on cardiovascular business. Overall, antimalarials has seen decline in this quarter also and for the H1 '26, this quarter it has declined by around 8% and overall decline is around 2%.

Antibacterials, in this quarter, the business growth was around 4%, overall for the half year it is around 5%. CNS segment, we had around 18% kind of growth and for H1 it is around 14%.

Cough and cold, there is a recovery now and this quarter it has grown by almost around 17% and so first half it has grown by around 18%. Derma business in this quarter has grown by around 11% and urology business was also around 11%.

This is in spite of there is a impact in the month of September because that growth was very, very low for us, yeah.

Sir, what was the impact and what is your guidance for the full year for India growth now?

Let's say, overall, let's say, our guidelines was around 10% to 11% and broadly we will be in that line, yeah.

Okay. Thank you, sir.

Sir, other question I would like to understand from you is on Unichem. If you can just take us through what we should expect.

You had talked about synergies before. Part is realized, part will be.

If you can talk about the timelines and the quantum there. What is your guidance on EBITDA margin for Unichem this year or next year, please?

Let's say, as far as Unichem is concerned, let's say, we were talking about whatever cost reductions we were to do as far as their shipping, logistics, and that was already done. Their energy cost reduction was already done.

In last financial year itself, that was done. As far as the business issues are concerned, number one was that we should extend their product to the various market.

That work has started and I think around 12 product dossiers are filed in European market and other markets. That filing has started, so that work.

After this filing, probably approval may take around one year to one and a half year. That's the time.

Then we'll start extending their product businesses to the other market, so that work is going on. As far as qualifying whatever API they are buying from outside and where the IPCA is one of the major source, that qualification applications are already say datas are generated and filed with regulatory authorities.

Once let's say that's clear, so far no sourcing has started from IPCA. Once that approvals come, so that there is some maybe around six months to one nine months kind of delay may happen, but thereafter, probably from next financial year, some of our major APIs, we should start supplying to them after the regulatory approvals are there.

That's the overall journey which is currently happening. As far as Unichem margins are concerned, first quarter was largely impacted because of some restructuring which has happened in Europe, because one of their facility manufacturing facility which was there in Europe, there we had the handshake with people and we were closing that facility.

That business is transferred to their Baddi, overall they were incurring around €3.5 to €4 million every year the expenditure. That expenditure will be cut now.

That manufacturing has and all the sources and all approvals has received and I think the business normal business has already started from their Baddi facility, which has all those kind of approvals and all customers and all regulatory approvals and everything is in place. Ireland facility is getting closed down.

These are the major changes which were there and I think that cost has hit in their first quarter account. On European Union kind of penalties and all, that payment was made and I think since euro has moved adversely, so that provision was also there in the first quarter of exchange difference of around ₹10 to ₹12 crore, which has also impacted their first quarter.

Second quarter was normal. They had a good business growth in US around 12% and their European business has also done well.

Therefore, I think over ₹60 crore kind of EBITDA margins they have, which is around 11% or so of the second quarter. More improvements will start coming in once let's say those dossier filing which has happened and their approvals start coming in from the various market and we start extending their product to the other market.

That advantage will still going to take some more time. I think overall their business margins are expected to remain around what is in line with the second quarter, but larger improvement may take place only after the various approvals what we are expecting.

Then,

sir, we could get to what 15%, 20% kind of levels? What would be the after all these approvals and...

The business also has to mature, because business starts with it take time. Let's say I would say for that margins to go up, it may be around one and a half to two years.

Okay. Thank you, sir.

I'll join the queue.

Hello, am I audible?

Yeah. Yeah.

I just wanted some clarity around the synergies from Unichem. We see that the R&D has increased in this quarter, but say going ahead, if, for example, the R&D from IPCA is around the ₹200 crore while the R&D from Unichem is around ₹100 crore, this at the consol level comes to around ₹300 crore, correct?

Going ahead in the next year, can we say that this expense from ₹300 crore can come to around ₹150 crore or ₹200 crore? Oh,

no, that expenditure reduction will not happen, because Unichem has to do a lot of work in terms of, let's say, extending their dossiers to the various markets. A lot of places there are repeat bioequivalence study need to be done for filing in other market likes Australia, New Zealand, Canada, all those market, Europe filing and all.

Those bioequivalence studies and all are required. Then somewhere trade dress need to be matched because somewhere colors of the tablet may be different, somewhere size, shapes are different.

Lot of those kind of work, incremental work need to be done in order to align the product portfolio and getting those kind of approvals. In fact, those expenditure are going to remain.

What we have eliminated is that both the teams will not work on a common product. There will be no duplication.

As far as work is concerned, in fact, that cost has already increased and will keep on remain at that level, because a lot of incremental work need to be done in order to get better fructification of their product range from other markets.

Sir. Also around the ANDA synergies.

Say if Unichem already has an approved ANDA, can IPCA use the same molecule ANDA and gain any synergy around there?

Let's say Unichem is marketing out IPCA products. Unichem, if it is producing, they have ANDA, they will continue to produce.

IPCA will not disturb that part. Only thing what will happen that future development, it will all depend that if Unichem has the API, Unichem will develop that product; if IPCA has API, IPCA will develop the product.

There will not be a common product development at both the places, but the both the team will continue to work on new product development, so that both the teams will be working on their respective range, yeah.

Sir, understood. Just one last thing.

I just wanted to understand your pipeline for the 505(b)(2) in IPCA as well as for Unichem.

We don't have any pipeline of that nature.

Sir. Thank you so much.

Thanks for the opportunity. Sir, just on the generics export, while you have guided for 8% to 9% growth in the second half, what is it that will drive this?

Are we eyeing certain products approvals or traction? Because first half has been pretty flat for generics.

First half basically it was basically on account of one product because in the market there was a good amount of higher inventories were there, and there was no productions of that. Otherwise, European business has if I look from the rent's point of view and all, that has done well.

Overall, the kind of orders we have and kind of whatever interaction with customer and our business expectations suggest that we should be able to have around 8% to 9% kind of growth on generics in H2 '26, yeah.

Got it, sir. Similarly on the branded export side as well, the first half again has been pretty soft.

First quarter, we had a good growth. I think it's only second quarter, and quarter to quarter there could be variation.

That business also will have around 9% to 10% kind of growth on full financial year basis. Quarter to quarter in this kind of business always some fluctuation happens on ROW market and all.

Overall for the year, I have no doubt that that kind of growth will not be achieved.

All right, sir. Just lastly on the API side, while this quarter was pretty strong, but we are sort of guiding for little lower growth rate for the full year.

Does it mean that we had certain business which is not going to sort of recur in the subsequent quarters?

Let's say some of our APIs which we were selling, but on which our volumes were low, certain APIs has gone to European customer and there I think there was a bulk procurement was there for their businesses and all, which was also at a higher margins was there. That business will continue, but there may not be third quarter buying to that an extent.

Once they consume and then again they come up. Looking at all those kind of things, API business overall guidelines we have given is around 14% to 15% kind of growth.

Got it. Just

lastly if I may, progress on the US business from IPCA's side?

More or less business is steadying very well. I think last quarter also we have said that whatever current businesses which are happening is translating into almost around ₹14 to ₹15 crore.

I think we have shipped around six product there and almost around five to six products are under manufacturing. Once those product goes, probably the business may start on the fourth quarter of the current year or maybe some business maturing may take little more longer time.

We were not there in the market for such a long time. It is taking some time to cover up those kind of business and overall that's why we are more conservative on that part.

Got it. This 2Q we made ₹14-₹15 crore, is what you're highlighting?

Overall H1 we have made about ₹55 crore,

sir.

Got it, sir. Thank you.

That

is 1Q and 2Q.

Good evening, sir. Thanks for the opportunity.

Sir, my question is on the cash situation in Unichem. After this payment of this penalty, would you need any cash infusion in Unichem?

No, Unichem doesn't require cash. In fact, they have surplus right now also and current quarter also they are generated cash from business, and they will continue to do that.

I don't think... ...require.

We already sold their Jogeshwari land, and I think overall proceeds of that after I think this payment also will leave some surplus with Unichem. After payment of tax also, there'll be surplus here.

Okay. That money is already realized, the Jogeshwari sale?

Jogeshwari sales, yes, money is realized, yeah.

Okay.

That is realized in the third quarter.

Sorry, we are in second quarter, right?

Transaction happened in the month of October, it will get reflected in the third quarter.

Third quarter, that's what I said.

Got it. Sir, and also why there is a huge inventory situation in Unichem if the business between IPCA and Unichem is similar, the inventory levels are very high in Unichem as compared to IPCA?

Unichem business is more or less US business, almost around 80% is US business. Their cycle is such that they need to keep around three months inventory at US, and transit inventories and all that kind of things.

Since there are a lot of their products is also from their own API basket, there are API inventories and all. We are working also on reduction of those kind of inventory.

You will notice that in this quarter we are reduced overall inventory by almost around ₹150 crore in their system, yeah.

Okay. Sir, and lastly can you comment on...

Yeah. ...yeah, lastly can you comment on your other unlisted subsidiary, Lyka Labs?

Even there was quite some deterioration in their performance.

Lyka Labs as such let's say they do a lot of P2P business. Because of this GST rationalization's all that, lot of customer has said because you don't produce now in the month of September because once the price is changed, then only they wanted production.

They can't take batches and hold. I think that business got impacted.

I think they had some rejections and that impact was there of around ₹5-₹7 crore on their overall numbers. That has impacted the business, yeah.

Sir.

Otherwise, their critical care business which they are building up, and also their animal healthcare business what they are building up, that journey is going on as planned, yeah.

The launch story is intact in Lyka, right?

Yeah.

Okay. Got it, sir.

Thank you so much.

Hello, good evening, sir. Sir, my question is on R&D.

Sir, you have around seven biosimilar products in the pipeline, three of which are expected to go to clinical trials next year. As it is, your R&D has gone up slightly this year.

Should we assume that even next year the R&D increase will be even sharper than this?

I think overall the R&D spend in the current financial is going to remain around 4% of our turnover, because a lot of filing and bioequivalence studies and our filing in various markets is also getting that pipeline is also becoming very strong. Those expenditures are also increasing.

Also the biosimilar expenditures are there. Once the clinical trial start, that cost will be extra, this 4% may go to around 4.5% or 4.75% in next financial year.

Got it, sir. Sir, secondly, if I were to look at your opex, which includes R&D, that's gone up by only mid-single digit.

The fact that R&D has gone up quite a bit, is it some deferment of some costs or there's some cost optimization you have done, if you can just throw some light?

It's basically all other costs remain in control. As far as manufacturing overheads are concerned, let's say your fuel cost is down, my power cost has gone up by just 1% because we have a lot of renewal power project installations, so that savings are coming.

Overall other costs by and large, except the testing cost which has moved up, other costs by and large remain same. There are not much of escalation in the manufacturing cost.

Marketing cost has moved up by almost around 6% to 7% in this quarter.

Got it, sir. Sir, you kind of have stopped expanding the sales force, because last couple of years you expanding, so that was also kind of hitting your P&L.

Now it's more of a steady state growth number. Is that what we should assume going forward too?

Let's say this year also we have expanded the field force, and overall if you look, we have almost around 7,000 now medical rep. Two more cardiac divisions was added in the current financial year.

In time to come, we will add one more division on cosmetodermatology and so some kind of those expenditure is likely to be there. Also one division named Flexicare was added to extend our equity on let's say pain management because we are very strong with orthos and we are leadership there.

We have only pain products, we have launched a range of products. That division last year it has started, it is still incurring the losses.

In time to come, that productivity will also build up. We have almost around 7,000 people and now additions are not going to be much, maybe around 400 to 500 people annually can be added.

Beyond that number addition is not going to be there in next two, three years' time.

Got it, sir. This is helpful.

Just one more if you don't mind. Sir, it's on the margin front.

In this quarter, the growth was driven by API and the subsidiaries, Candor, that is, which I assume are lower gross margin businesses, while your Indian branded was slightly softer. Despite that, the gross margin is very robust.

I just want to understand how you have managed to have 69%, 70% gross margin.

Let's say if you look at the current quarter numbers, overall let's say top line has moved up by around 7%, but at the same time, the material cost is down by almost around 3% to 4% kind of reduction is there in material cost. What we are finding that there is no increase in material cost as such procurement cost.

Since our product mix is improving, let's say my chronic product mix is improving, my other product mix is improving where we have high margin. That is resulting in the overall margin.

Also on the API side, certain businesses has started happening which are also at a higher margin level. That margins was also improved and that has resulted in almost around EBITDA margin improvement in spite of lower growth in the quarter.

We have almost around 2.57% improvement in standalone EBITDA margin from 22.89% to almost around 20 25.46%. In consolidated margin for the quarter is also improved to around 21.68% from 19.1%.

As by and large, it's largely driven by IPCA's margins here. That trend will continue.

The trend will continue.

Right. You are saying there is more headroom for 25.2% standalone EBITDA margin?

Margins are improving, I would say that. This quarter is a peak quarter.

Next quarter some domestic businesses comes down and fourth quarter domestic business is low. Depending on the mix, but I would say that margin will continue to improve compared to last financial year.

Right, sir.

Right. Thank you and all the best.

Hi. Thank you for the opportunity.

My questions are more on Unichem with regards to the generic business. We keep hearing about other Indian generic companies about the price erosion in the US market.

What has been the trends for us for our molecules for last two to three years with regards to price erosion? What is the current situation?

How do we expect to pan it out in next two to three years?

Actually, during our Q1 concall, we had said Unichem has lost market share in certain of its products. That is also because of the lower prices for that product and increase in the competition.

At the same time, they have also gained market share in few other products, but to that convert into business will take some time. Going forward, we are confident two, three new products will also get added each year, and their US business should grow on a standalone basis about 8%

to 10%. In addition...

In addition to that, they will be also marketing IPCA products.

Understood. So 8% to 10% growth is considering all the factors that you are considering?

That is correct, yeah. This year the growth has been slightly lower because, as I said, they lost certain market share in two of their major products.

That is the reason, nothing else.

What were the reason for losing the market share? Is it purely based on pricing or...

Pricing because

the competition increased and people quoted lower prices and they took certain market share.

Understood. Is it more like a tendering business for us where each year the tenders are...

It's not exactly tendering business. When there is a concentration of market share in few companies, other companies also come into business, and it happens.

Whatever they have lost, they may recover in the next cycle. It's a routine thing in generic business.

Understood. Do we expect the price erosion to continue maybe, if you can quantify single digit lower single...

Depends product to product. If competition increases, price reduction will happen.

Otherwise, there could be a chance price may also increase also. It is a cycle.

Nobody can guess that correctly. It all depends on competition, how many new players come into that molecule.

Understood. You mentioned...

Currently, we are not seeing any kind of shortages in US market, pricing pressures are definitely there. One-time buying opportunities are little lower currently.

Yeah. That used to translate into more margins, but that business opportunity we are not seeing to that an extent currently.

Understood. So 8% to 10% growth for the US business.

How do we expect for the rest of the market, the other geographies you mentioned that you would be marketing?

That we already explained. We have started filing dossiers of Unichem in rest of the market.

The dossier registration process takes anywhere between 12 to 18 months. Once the dossiers are registered, we will be taking their products in so many other market where they are not present today: Europe, Australia, New Zealand, Canada, and also ROW market.

That process is on. Because there is a regulatory involvement, there is a two to three years period all this processes take.

Understood. I understand it's a very long process to get the approvals and start marketing the new products.

Just to understand more on that, currently the US contribution to the Unichem business is around 60% to 65% of overall revenue. Around 65% to

70% you can say.

Yeah. Assuming, with new products and new other geographies, what do you expect US contribution to come down to what levels maybe next three to five years later?

It will also come down gradually, nah? Once you get registration, you start marketing, then gain market share, it is a slow and gradual process.

Once that process starts, it will continuously grow quarter after quarter. That only we can say, but it is a gradual process.

You can't expect something to happen drastically in shorter period of time.

Understood. Sure.

Gross margins for last three quarters has been around 54%, 55%. Is this purely based on the market share loss you mentioned in the key products or is there any other...

Yeah. Their gross margin has come down mainly because of that loss of market share.

Achha, okay. It has nothing to do with contract manufacturing business, right?

No, no, no. Nothing to do with that.

Okay. Unfortunately, the product where they lost market share, it was also huge volume.

Because of the reduction in volume, their overhead recovery has also impacted to some extent.

Understood. Right now, given that we have added so much capacities in Unichem, both in formulation and...

Mr. Shah,

Thanks for the opportunity, sir. The first question is that the growth for us, which is in kind of relatively muted the recent past, obviously because of the kind of underperformance in the export side.

While we have seen that Europe as a market, it has emerged as one of the best performing market for many of the larger players also, and we have seen some price appreciation there that has been helping people. Despite Europe being one of the largest market for us, the growth is not been in any manner supported.

What could be impacting our Europe growth for us, sir?

No, Mr. Jain has already explained, it is because of one single product.

Excluding that product, the sales in all other products are good. The products where sales were good were having better margin, margin did not got impacted.

Only that particular product. Except that product, everything is fine.

Plus we are doing so many other things to expand our European footprint. Many products are registered, getting registration, also in Germany where going forward we shall also participate in tender.

We have already incorporated a subsidiary. Europe is a focus market and we are hopeful our growth should be good going ahead in the European market.

Plus we are also started filing Unichem dossiers in the European market, basket will also increase.

Okay. Okay.

We have so far not been seeing the cross-selling benefit, that is what you meant to say?

No, no, nothing so far. Far nothing.

Okay.

Only two dossiers are registered, for which now we are in the market, started talking to customers.

Okay. Regards to domestic market, sir, see we have always been outrunning with big margin in terms of growth compared to the IPM.

Now we are kind of started tracking almost similar to the IPM market growth momentum, slightly better though. Going ahead, see there are two, obviously, two trends are emerging for the domestic market.

One is some moderation in the growth generally, that is one. Secondly, a bigger growth trigger like GLP that is upcoming.

Considering these two aspects, what is our expectation and what is our preparedness and thought processes about the GLP opportunity also? Beyond this, how should one think about the domestic overall growth for the IPCA?

We are very confident our growth will be higher than the market growth. There is no doubt on that.

We are also addressing the therapies where earlier growth was not good, like cardiac and all. OFC, we are now started seeing the result.

We are now beating market as far as cardiac therapy is also concerned. We are very confident our growth will be better than the market growth.

Okay. About GLP, anything that you can thought about, sir?

What is our preparedness? When do you feel that it will be there in the market?

As far as GLP is concerned, we didn't have R&D of that kind for GLP. E.

coli-based R&D we didn't have, now we have already in process of putting the facility for R&D, biotech R&D for E. coli-based product.

It's going to take time, we will not be there in that kind of race in the current phase of the product, but next phase of product whenever it comes, we'll be there. We are already synthesizing the clones and other things are already going on.

As far as market opportunities are concerned, we are also looking to buy the product from other manufacturers and in that. That opportunity we are evaluating, nothing is finalized right now, but, yes, that process is going on.

Okay. Just last one bit from my side, sir.

In fact, can you talk about your R&D pipeline whether it is for US market or whichever emerging market opportunities? See, what is our core focus of the R&D currently and which way that we are thinking at this moment?

R&D has current capacity of filing almost around 30 to 35 products. It will be of the same product, there are different markets then.

Each filing is taken as number one one one number. Current capacity is around that kind of things and earlier we were not let's say utilizing that to the fullest extent because we were not there in the US market.

US filing has also started. I think the two filings has already happened and their pipeline is there of around five, six products are in pipelines.

We are also expedited now a lot of developments for Europe and Australia, New Zealand, Canada market, so that's also happening. You will notice that R&D cost is also moving up not only in the biotech, but also on the bioequivalences and formulation development.

We are building up very strong pipeline for future growth.

Okay. Yeah.

Thank you, sir. Wish you all the best.

Thanks for the follow-up. Sir, just following up on this filing question.

You made two filings already and you have five to six which are under development. If you can take us through from a slightly longer-term perspective, let's say over the next five years, how should we think about the US business in terms of filings, the characteristics of those files, the products, and how should we think about the US business sort of scaling up over the next five years?

We are not a company which will be doing too much of filing based on somebody else's API. By and large, it's what is there in our pipeline, either current pipeline or expected to be there in the pipeline.

Only those products are being developed and filed for US market. Compared to other companies, our filings are by and large likely to remain low only, but it's all depends on our API capacity because ultimately, unless you have API, you cannot be a long-term player because you all depend on the price given by other parties, and that limits your ability to compete in the market and all.

That's the business philosophy and that business philosophy will remain for longer term.

If I may ask, sir, you will be developing new APIs, right, for these?

Yeah.

Right. Is there a number?

How should we think about the number of products?

Current capacity is around five to six APIs we can develop, it's only those development would happen and on formulation side. Some API we can outsource and also file, but it's not going to be a significant number.

If API is constituting very small part of overall product cost, then we may outsource or maybe it's of a generic type of API with so many product people are producing, then those kind of API we may not take up. That's the overall thinking.

Okay. Okay.

Yeah. Sir, thanks for the follow-up.

Sir, the first question is can you comment on the monetization opportunity with reference to the tech transfer deal that you did with Bioceros in Puerto Rico?

Let's say it's one of the old product and still having very relevance, and US business of government is also bigger, and the party wanted to take kind of, let's say, our technology for your drug substance as well as the drug product, both. We have milestone-based payment and royalty-based system.

At the same time, that party is expert on, it's a regulatory consultant to so many companies on biosimilar development and all, collaborating with him will also help us in your qualification of that plant from US FDA and other markets and all. His assistance would be available to us because he is already consulting large number of companies in India, China, and Europe also on the biosimilar kind of development and all.

Very experienced person, on that particular product, let's say his focus more and more is likely to be the government business and other. He will also do some private business.

Simultaneously, we will also be participating in clinical trial with him and both the facilities will have an approval. That's the kind of working we are doing.

On that, we will also get the market share in US. From whatever business he does, almost around 25% is the market share which will come to us from that particular.

That's the broad understanding we have with the party, yeah.

Okay. No monetization opportunity in this financial year with respect to the deal?

No, it's not our focus to do the technology transfers, but we want US approvals and experience of that person because practically each and every company in India, almost all companies, he is a consultant. Very, very rich experience.

We wanted to utilize that also. It's not our focus that we keep on transferring those technologies and monetizing.

We are utilizing those technologies for building up our pipeline.

Okay. Got it, sir.

Sir, and second thing is on the clarification on the margin guidance. In the last quarter, you said your margin will be down by 25 basis points, and now you are telling with a better Q2 performance, you're upping your margin by 100 basis points.

Is that correct understanding?

Because product mix is improving, and that's giving the better margin, we are giving that guidance. Around that time, first quarter's result of Unichem was not that good.

Their business is also improving, hit which was there in first quarter is not likely to be there in third and fourth quarter. That is also taken into consideration while giving the margin.

IPCA's margins are improving, Unichem's performance is also improving as far as EBITDA is concerned compared to the first quarter. Overall IPCA margins we have seen the better margins in this quarter, and overall looking into all that, we are increasing the overall margin guidance.

Sir. Thank you so much.

No, madam, you can conclude the concall. I don't think there is any more question, we will conclude.

Okay. Thank you, everyone, for participating in this concall.

Thank you.

Thank you.