Good evening, everyone, and welcome to Q1 FY '27 earnings con-call of Quality Pharmaceuticals Limited. We have on call with us Mr.

Aditya Arora, Director and CFO. We must remind you that discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk pertaining to the business.

I request the management to take us through the quarterly updates, and post that, we'll open the floor for Q&A. Thank you, and over to you, sir.

Good evening, everyone. Welcome to con-call for Quality Pharmaceuticals.

Quality Pharmaceuticals, I'll give you a very brief introduction about the total plants and the revenue. Quality Pharmaceuticals has five operational units, which includes Biological, General Facility, Oncology, Cephalosporin, Beta-lactam, and Hormone plant, which is the sixth unit, will be commencing by November 2026.

Our total sales revenue expected in FY '27 will be plus 700 crores and with EBITDA margins between 26% to 27%. We are registering new molecules every quarter and on quarter, and this shows the growth in our revenue in each quarter.

We welcome all your questions. Please feel free.

Hi, congratulations on the good set. I wanted to understand the change in mix for this quarter.

Why was onco at 20%, kind of down from 26%? Are we still guiding for 30% by this year or next year?

There 1% revenue from unit five also, can you throw some light on that?

Sir. Firstly, oncology will be roughly between 25% to 30%, considering the timelines for getting oncology registrations will be getting little delayed.

Probably we'll have the expected registrations by quarter four of '27, FY '27. In this last two quarters, we got multiple registrations from the General Facilities from MENA region and the LATAM region, specifically from Mexico and few from Algeria, Morocco, and Tunisia.

Regarding the biological section, fifth unit, the preclinical was successfully completed for erythropoietin. Now we have got the permission to conduct the clinical trials.

The clinical trials will probably begin by November or December this year. Initially, we will finish with the PK/PD study, which is the laboratory analysis of the human study, and then finally the clinical closure will be by October or November FY '28.

We are likely to commence the erythropoietin sales in the domestic and international market before end of calendar year '27.

Wouldn't there be some time between the submission and then the approval and then you can launch, right? Wouldn't that be around six months to a year?

Sir,

Indian sales will be immediate, sir. Regarding the foreign submissions, we do not have to wait for complete clinical trials.

We can begin with the first four months study of 40 patients, and we can start submission of the dossiers. By November or December, we will have, at least in the ROW market, 10 to 12 countries that the product will already be registered.

November, December of 2027, right?

Correct, sir.

Correct, sir.

We have actually already started registering in many countries where the evaluation will begin by next year. We have already started filing in almost 10 to 12 geographies.

Thanks. I wanted to understand a bit more on our distributors that we work with.

Understand we have good visibility from the distributors, that's why we're guiding so aggressively and we've also stuck to our guidance for this quarter. We are in markets which are barely growing in single digits, right?

How are we growing so fast in these end markets? Can this be attributed to our distributors, which are top distributors of that country, or is it our quality of products, our presence in certain niche products?

I just wanted to understand what is our right to win and how are we growing so fast?

Basically, sir, Quality Pharma is becoming more competitive due to that the number of plants which we have in portfolio and the number of products and the lines. Along with this, all these lines are PIC/S certified, European certified.

Along with this, we have a big basket of ready dossiers with bioequivalence studies. For example, if we get registrations in high-regulated country, we can use the same dossier in filing across 60 or 70 countries.

The model is very simple, that we want to become masters in the first generic and second generic market. We have prepared a big portfolio of those products where there is a huge gap in the market between the reference product.

We want to capture that gap, and we want to create a portfolio of at least 200, 250 products wherein we can do filing across 70, 80 countries. Every quarter, we are getting at least two or three registrations.

Each registration contributes roughly around $1.5 million or $2 million on yearly sales. Last three quarters, we have got almost 60, 70 registrations.

As on each quarter we get more registrations, we will be continuously revising the revenue targets.

That's good. Basically identified certain niche where there's a gap between the reference product and generics.

How come is it that other companies are not looking at these gaps? What is our specialty here?

There's a lot of competition, right, in generics, Aditya Arora (Director and CFO):

There is actually very less competition, sir, considering let's say the LATAM market, there are not many players who are actively supplying or registering these products. How many plants are Colombian approved, COFEPRIS Mexican approved, European approved, with at least 25 or 30 injectable lines?

Those with the ready dossiers as well. Quality's ability to prepare dossiers every year is like preparing 60, 70 new product dossiers.

In that case, we get a competitive edge over the others.

Got it,

got it. In fact, all because of the involvement of the directors also, sir, and the hard work which we are putting in.

That is great. That is great.

My final question is what is our relationship with Deepak Bansal and SD Biopharmaceuticals? Because I've went back, there's a filing and there's an entity called Candor Biopharma, which is promoted by Deepak Bansal and our promoter Ramesh Arora.

There's also some land purchase agreement which was made with Quality, and that too at some double price or something. Can you throw some light on this entity and what's the current status on this?

Basically, Deepak Bansal is one of our business associates who has developed Quality's sales over the European and LATAM markets. There's an association with him, an understanding wherein there's a European company called Mana Pharma, who has made a lot of investments in Quality's dossiers across various geographies.

That's the kind of relationship which we have. Plus the SD Pharma is basically an entity of Mana Pharma in India wherein they purchase from Quality in India and then supplies to various countries like Venezuela, Colombia, Mexico, and all these countries.

Got it. This entity called Candor Biopharma, is this still active?

This land purchase agreement, is that still on or what happened to that?

I don't think it is very active, sir, because earlier there was an arrangement wherein Mana Pharma was supposed to through their representative Deepak Bansal, they wanted to make an investment in India where they wanted to put up an oncology plant, an additional plant, wherein Quality would have got some stake and they wanted some stake, and they wanted to manufacture certain niche injectable molecules and export it across various geographies. I think that plant is on hold as of now.

Probably that land is going to be either sold or some other arrangement would be made.

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

Hi, this is Utkarsh from Ecoing Quantum Solutions. Thank you.

You had earlier told us that you are in the process of getting a new global auditor. Can you please throw some light on that?

Sir. Most probably, it is planned for the quarter three or quarter four.

KPMG, we have already signed an agreement. Probably in Q3 or Q4, they will be appointed.

We're just waiting for the software updation which is to be made so that we'll be giving them the data, the kind of data they want, in a faster way. The basic issue is with the software upgradations and the systems in place that is required.

In any case, we will try to do it before end of this FY '27.

Understood. Sir, similar to the guidance you've given in FY '27, which is 40% growth, do you think the similar growth rate will continue in FY '28?

Yes, sir. Basically, sir, the kind of registrations and the kind of investments we have made across the geographies with respect to the dossiers and everything, I think we have developed a revenue model wherein we believe by 2030, we can easily reach 1,500 crore revenue mark.

We are talking about doubling our revenues before end of FY '30. We will see a year-on-year growth of 25%

to 30%. Base case 25% you all have built in in your internal projections.

How do we see our EBITDA margins grow in FY '28? Because FY '29 you've already told us you'll hit 30%.

How will the journey be from 27% in FY '27 to 30% in '29?

Sir, but you will see a growth in EBITDA margins. I think at 1,000 crore revenue, the EBITDA should be roughly around 30%, close to 30%, considering that the operating cost will not increase that much.

Probably at 1,000 crore revenue, you'll see a 29% to 30% EBITDA margin.

Will it be linear wherein you'll grow 100 basis points per year at least, if not more, and thereby reaching 30% in FY '29?

Sir, it's very much possible. Again, there are certain things which are in control of the Ministry of Health of various countries, sometimes there is a delay which might affect the the sales targets what we have given.

This financial year, we do believe that 100% the sales will cross 700 or 720 crore mark. Next next financial year year, I think with the with the registrations which have been promised, again 25% to 30% could be, expected.

You can take 25% as a minimum growth.

Okay. Sir, everything you're telling us sounds really nice.

Is there any risk we should be cognizant of, or anything you internally consider a risk and are planning to mitigate?

Sir, risk with respect to, let's say, local regulatory authorities or external regulatory authorities, I don't think there's a risk because everything has been properly validated. We already had risk-based investigations from CDSCO seven times almost now in last three years.

In neither of these investigations where there was any issue. Every month, we are facing two external audits from high-regulated, Russia or Ukraine or Europe or LATAM, every two months we have one or two external audits.

With respect to product, with respect to facilities, and with respect to team, we don't have any risk. It is now very important that the directors, they should not get carried away with small successes.

I think it is very important for us to stay grounded and keep up with the good work.

Perfect, sir. Good luck and best of luck.

Thank you.

Thank you.

Am I audible? Hello?

Yes, ma'am.

You mentioned that every quarter we are registering two to three new products. Do we see this going up, and by how much?

Ma'am. Basically, let's say if I take Mexico as an example, we have totally made a submissions of 70 products out of which we just got registration of 18 to 19 products.

All these submissions were made in FY '26. Probably we can say maybe next quarter we can get five registrations.

Similar case is with Colombia, we made submissions of 25, 30 products. Chile and Algeria and all other parts of MENA region.

In fact, the new country which will open for us because recently we got the certificates and approvals, and in last financial year, we made almost 12 to 13 submissions in Saudi Arabia. Saudi Arabia could also be the next upcoming venue where it will be Saudi and GCC entire, UAE and Oman and all those parts.

Probably by end of third quarter, we'll start seeing the revenues from these countries. We believe that MENA and GCC region, quarter four will be the highest percentage, followed by the LATAM region.

Okay. Understood.

Like can we expect some next quarter Q2 will have each quarter will have around four to five products, new product registrations?

Yes, ma'am. Probably six to seven we are expecting.

Across all countries. We are expecting six to seven registrations.

Yes.

Okay. My next question is that once we commercialize our hormone manufacturing facility, how fast can we ramp it up?

Biological or hormone? Hormone,

hormone, my bad.

Ma'am, see, hormone, we are again focused on two, three aspects. The first one is the immediate sales wherein only the GMP certificate will be required, and we can commercialize at least in the ROW markets like Iraq or you can say in some tender business in African markets or LATAM markets.

That you can say a 70 to 80 crore revenue we can generate in FY '28. For Quality to get the COPPs and complete with the bioequivalence studies of various oral solid and injectable products of hormone, I think by FY '29, we can generate a 200 crore revenue.

Immediate sales, you can take 70 to 80 crores in FY '28.

200 crores you said in FY '29, right?

FY '29, correct, correct.

Okay. Understood.

When do we expect this GMP certificates to be approved?

Ma'am, manufacturing license will be in November. After that, six months stability.

Probably in June or July, you will expect the GMP. However, in this tender markets and these markets, only manufacturing permission will be enough for us.

Okay. Understood.

Thank you so much, that'll be all from my side.

Hi, thank you for the opportunity. I have three to four questions.

First one is on the BE programs that are underway, the 40 oral solid BE programs. Just wanted to know how should we look at this from a conversion funnel point of view, say over next two years?

Ma'am, initially we finished the bioequivalences of six, seven molecules in Q3 of FY '26 and two or three in Q4 of FY '26. Six or seven molecules can be commercialized before end of FY '27.

That means Q4 '27, we'll be able to commercialize at least five or six molecules, I believe. If there is a certain delay, then probably in Q1 of FY '28.

The remaining 32 products, they'll probably be finished before November, December. All BE studies will be finished, and we'll try to file at least five or six products in this quarter, and six product molecules in next quarter, and probably all submissions will be finished before Q1 of FY '28.

You can expect that let's say we estimated that overall with 40 bioequivalences, probably we can generate a revenue of 600, 700 crores by FY '29. Next years you can expect at least 80 to 100 crore revenue from the BE program.

FY '29 will be an immediate jump to at least 400 or 500 crore revenue.

Thank you. The second one is on the Keytruda studies.

We did receive CDSCO approval. Could you throw some more light on that front?

Ma'am, the first step in any cell line development is the R&D part, which we already finished. Then we brought the cell line, we did the due diligence of the cell line, we brought it to Quality site along with the technology transfer.

The entire R&D was outsourced. After that, we made the application to CDSCO and the Gene Modification Authority of India wherein they evaluate all the R&D data, they evaluate the cell line, their characteristics, and everything.

Based on that, they give us an approval to conduct the stability batches and preclinical. That approval we have got.

Probably by December this year, we will begin with the preclinical studies, and March next year we'll be able to finish it, the preclinical studies. Then subsequently, we'll start with the clinical batches and clinical trials.

Since it is a oncology molecule, probably it will take one, one and a half year to finish the clinical trials. Before end of calendar year '28, we think we will be able to commercialize this product, considering that end of calendar year '28, the patent is going to get expired.

November

We will be in the first wave of launch.

In the first wave of launch, yes. Quality will be part of first launch.

Fantastic. Next is on the debtor days.

FY '26 saw elevated debtor days, and I believe it was because of the geopolitical disruptions. How is the Q1 working capital improving, and do you see any structural improvement coming in the customer payment behavior or is it primarily inventory-led improvement?

Any color on that trend?

I think the debtor days will come down to 165 or 170 days, but we are trying that in our regular operations, it should be roughly around 155 to 160 days. This will be from 208 days it will come down to 165, 170 days, considering the payment cycle specifically from the MENA region and CIS region and GCC part, it is now improving.

We recently got a lot of payments made from this region.

Okay. Just lastly, we are focusing more on liposomal and complex injectables, long-acting especially.

Where do you see the strongest competitive moat today? Is it the formulation know-how?

Is it the manufacturing capabilities, regulatory approvals, or customer relationship?

Ma'am, right now with the bioequivalence program, we have considered only three injectables. One is liposomal, that is Ampho B.

In Ampho B liposomal, Quality will be second generic. Then we have considered Octreotide LAR.

In, I think, 70% of the markets, Quality will be the first generic after the Sandostatin leader brand. Then we have considered Leuprolide 45 milligram.

This strength particularly, we'll be first generic in 75% to 80% of the markets. All these three BE programs, out of these, the first two, Ampho B and Octreotide, that will finish by April or May, quarter one of '28, and then we start submitting.

Leuprolide probably by quarter two of FY '28.

Where do we see our strongest moat? As Quality as a brand, what is that strongest moat?

Like you mentioned, should I assume that technical know-how is something that holds the anchor for Quality Pharma?

I think the ability to imitate the correct formulation of the reference product is one ability because in these niche molecules, there are sometimes a lot of challenges with respect to developing them equivalent to the reference product. Then now and then having the failure of batches, doing destructions, and continuously improving and putting all the hard work of the R&D head, director, and technical people, and then developing this molecule which is equivalent to the reference product and filling that gap in the first generic market, I think that is the key.

Fair enough. Understood.

Thank you, and all the best for the future.

Thank you.

Thanks for the opportunity. Am I audible?

Yes, sir.

Yeah. My first question is regarding the gross margin contraction in this quarter on a year-on-year basis.

Can you help us understand the reasons behind that? Was it due to a higher raw material cost or a different mix?

What was it?

I think, sir, gross margins have improved from the last quarter. Actually, the last quarter the gross margins were roughly around 56% or 57%.

It is now 53 53%. Probably I think when the revenues are 700 or 700 plus, it should be between 49% to 51%.

Ideally, it should be, considering the BE program and the BE products, along with the niche injectable registrations, it should come down to 47%. Ideal number should be 47%, but because the 35% revenue or 40% revenue is still from the ROW market, so that's why the gross margins are less.

It is going to improve. It is going to improve on each quarter.

Understood.

Okay. Can you help us understand the raw material pricing trend across your key APIs?

Considering the geopolitical issues, are you seeing any cost inflation or any supply pressure from the suppliers?

Sir, 80 80% to 85% of the total procurement of Quality is from the domestic API and only 15% is from China. Till now, there has not been much disruption.

Understood. Again, regarding the working capital, in the last con-call, you had mentioned about delayed receivables from the Middle East.

What is the current status? Has the things normalized?

Because again, lately there was some disruption. With revenue scaling to 160 crores, what is the current receivables position?

Receivables will be, sir, roughly around 165 to 170 days now. I think if we take probably 700 crore number, probably if I see the debtors to be roughly around 300 crores, the receivables should be, by end of FY '27, it should be 165 days.

Understood. Nearly 40% of the revenue would be in receivables, right?

40%, sir.

Will the cash flow remain sufficient enough to fund the capex from internal accruals without taking any additional debt? Because I think you have a multi-year capex plan.

We have actually taken an extended loan, however we have not utilized it. We are considering if there is any disruption in the cash flow, we might use 15, 20 crores, but as of now there is no such utilization.

Right now, with the running cash flows, we are able to make all these investments. Because, sir, the hormone plant will finish in November, and then the capex of oncology expansion, that will finish by March next year.

After hormone only, the remaining capex of oncology is to be done. The biological clinical trial study is to happen by quarter two or quarter three.

We do not require any further capex in biological also. Right now, with the current cash flows, hormone can easily be done.

Can you give us the breakup of 195 crore capex that you have mentioned in the investor presentation? How much are you going to spend?

You can say 70 crores probably in hormone, sir. 50 crores will be in oncology.

I think the bioequivalence will be roughly around 25 to 30 crores. Working capital will be 20 crores.

Biosimilar R&D will roughly around 10, 15 crores. We are looking at overall 185, 190 crore capex.

Understood. The large part of capex you would be incurring after FY '27?

It will be almost same, sir. Basically, sir, there are three biosimilars.

The first biosimilar clinical trial will be almost finishing and then the second will start and then the third will start. Overall in biosimilar clinical trials, we require 150 crore capex, and 150 crore capex is to be spent between quarter three of FY '28 to quarter four of FY '29.

We have almost 1.5 to 2 years.

Understood. Lastly, in the last con-call, you had mentioned about the partnership with one Algerian company, I think it was for R&D.

Can you share the status of that? What kind of arrangement you are looking at post commercialization?

Will it be any profit sharing or any milestone-based mechanism? How is it?

Sir, there will be a joint venture kind of a thing wherein there will be a manufacturing plant set up in Algeria, which will be a fill-finish plant, where the API and the registration will be from Quality and they will do bulk filling of the biosimilar products. The investment in the plant is to be made by the counterpart, and plus for technology transfer, Quality will get the equity for bringing in the technology and the clinical results and the clinical data of the three molecules.

Basically, our investment will be bringing in complete technology of the three, four molecules of biosimilar, and they will make the investment in the plant, and jointly will register the product and commercialize in entire MENA region. This arrangement is not only in Algeria, we are almost there to encash it in Mexico and other LATAM countries as well.

What is the timeline for this? Basically,

sir, the timeline would be much less considering that we do not require initially the clinical data. After developing the complete dossier without the clinical data, we can make a submission to the ministry and get a permission to take the stability batches in Algeria itself.

It will save a lot of time. Till the time they will take batches in Algeria, submit for the stability studies, by that time Quality will have the clinical data, and then we will submit the clinical data.

Everything will happen parallelly.

Understood. That's it from my side.

Thank you, and all the best.

Yes. Thank you so much for the opportunity, and congratulations to the team.

They all have done a great work. Sir, just wanted to ask a few questions regarding this pack.

One of the question is that on 21st PPT, the PPT slide number 21, it says that 500-liter expansion is completed. That is one.

On the other side, where in the biologics side, it says that we are installing 500 liters. Just wanted an understanding, is it done or we still have to do?

Basically right now we got the CDSCO approval for 100 liters only, sir. 500 liter, it is already installed, and it will be five times the capacity.

The CDSCO approval is still to be awaited. We are not also hurrying it up because considering that right now we only are taking clinical batches.

Probably once the clinical batches is finished, then we'll get the bioreactor registered with CDSCO.

Understood. Sir, second question would be that you said we could be doing around 200 crores from hormone in FY '29, but the PPT says potential revenue is 150.

Can you please explain that, sir?

It will be roughly around 150 to 200 crores, sir, depending upon the registrations. Normally for the investor market and shareholder market, we try to give a number on the lower side so that less of queries

come

in future.

That makes sense. Sir, just last question would be that in that same 21st number slide, it says that you had previously also said that hormone and biologics are not considered in the guidances given.

Sir, it just seems that a lot is going to come in in the future which you have not really guided for much. Biologics you said it can do 400 crores in FY '29, and hormone can do about 150 to 200 in FY '29.

Our guidance has been of 1,000 crores. This can, if everything goes well, in FY '29 itself, we can do 1,500 crores.

Then FY '30 can be more. Is my understanding correct?

Just if everything goes in a good shape. Yes,

your understanding is correct, sir. In 1,000 crore revenue next year, probably close to 1,000 crore revenue, I think the hormones we have not taken into consideration.

Because we believe that if the registrations don't come on time, then probably hormone revenues will add up

and will

help us in reaching that number. You're right on this part that if you're looking at FY '30 a number of 1,500 crores, in that we didn't take the biological and the hormone revenues into consideration.

If that comes into play and we get registration of hormones and biologics on time, I think FY '29, we can achieve that number. You're right about it.

Thank you. Just one last thing will be that even as our revenues from biologics and hormone is going to be maybe more than 40% in the coming future by '29, '30, so, sir, are those margins also close to 30%?

No, no, the margins will definitely increase, sir. We don't know how many players are going to enter the biological market and what is going to be the price of the product.

We believe that there will be huge, huge profits and the market size will increase because when the prices of these biosimilars after the patent expiry will come down, probably they is used with all the hospitals and everything. The volume will increase, but the price will substantially come down.

We cannot right now calculate the amount of EBITDAs or margins what we'll have in FY '29. Definitely, it's on the higher side.

Not a problem. Just understanding that our margin trajectory even for those products is higher than 30%.

To keep ourselves on a overall level to keep ourselves on 30%, this could be more than 30%. That's all.

Right, sir. It will be more.

Okay. Thank you so much, sir.

Thank you so much. All the best for the future.

God bless you.

Thank you.

Congratulations on a very good set of numbers, and thank you for providing with opportunity. I just wanted to ask a few things.

First thing which I wanted to know is what can be the revenue potential from unit five in FY '29?

Sir, basically erythropoietin will be commercialized in FY '28. FY '28 initial commercialization, if we see from Indian market, I think roughly around again 80 to 100 crores FY '28 will do around 80 to 100 crores from erythropoietin.

FY '29, we see the registrations in the international market for erythropoietin only. That will give a 200 crore or 250 crore revenues.

It might postpone to FY '30. That's why in FY '29, we have not taken the international sales of erythropoietin into consideration.

That number could be in FY '30 also. If that comes in FY '29, again this could add up to the total sales revenue.

Other biosimilars, we cannot commercialize before end of FY '29. FY '30, they could generate a good revenue for Quality.

Is it fair to assume, sir, that 200 to 250 crores of revenue latest by FY '30 from unit five and 150 to 200 crores of revenue from unit six latest by FY '30?

Firstly FY '30 250 crore without pembrolizumab, Keytruda, 200 to 250 crore is 100% achievable, sir. If Keytruda is registered on the timelines what we are telling, I think then this number could go to a bigger number also.

I really can't explain that number right now, but it will definitely on a very higher side. Then coming to the hormone facility, by FY '30, yes, 200 crore to 250 crore you can take into consideration.

Sir, around 400 crores of revenue is much likely by FY '30, right?

100%, sir, 100% possible.

Sir, what is the probability of hitting that 150 to 200 crores of revenue from unit six in FY '20?

Unit six FY 20?

FY '29, '29, '29.

Sir, see basically if the bioequivalences and the registrations do not happen on time, then the revenues will be 60, 70 crores depending upon what tenders we win, what ROW market we are able to get immediate sales. It will be simply depending upon that.

Because in this 40 bioequivalence studies what we have done for this year, that do not contain the hormonal products. Next year, probably from December we are going to take the hormone bioequivalence into consideration once we have the manufacturing license.

Once the BE is finished and on their success and on the registration success, it all depends upon whether we'll reach 200 crore or not. That's why in FY '30, we do believe that 200 crore mark will cross.

FY '28 or FY '29, it cannot be predicted right now.

We'll

put our 100% efforts. We'll put up our 100% efforts and we'll try that the BE and the registrations happen on time.

Okay. Sir, just to sum it up, 1,000 crores of revenue by FY '29 and 1,300 to 1,400 crores of revenue by FY '30 is very much likely?

200%, sir.

Sir. Thanks a lot.

Thanks a lot.

Hello, sir. Good evening.

I just wanted to know can you give me a capacity utilization for each unit? How much is the capacity currently being utilized for each of our units?

Ma'am, the General Facility, I think by 75% to 80% has already been utilized. The oncology also, the existing facility is again 75% to 80% utilized.

Remaining of the units, biologics has not commercialized. Cepha and beta, I think they are roughly around 20%, 25%.

Yeah. We are making an expansion in the oncology facility.

Once that expansion is completed, again an additional 45% to 50% capacity will be enhanced. Also, there we are making certain machinery improvements and extending a little area in the General Facility as well, which will add at least 20% more to the existing capacity.

Thank you so much, sir.

am I audible?

Yes, sir.

Sir, congratulations on the great set of numbers. I have couple of questions.

One on the governance front, last quarter, you had mentioned that KPMG would be auditing as a Big Four would come into picture, and you specifically named KPMG. I don't see your statutory auditors that have changed, and I don't think so they are going to change next two to three years also.

What is the status on that? Is a Big Four or a KPMG kind of auditor coming in picture or not yet?

No, sir. Probably before end of this FY or the last quarter of this financial year will be audited by KPMG.

There is no

That is unlikely. You are trying to say for Q4.

Because if I see your special resolution, it stated your current auditor is there for five more years, and which got updated last year itself. You are trying to say that by special

No, no, an EGM will happen and it will be appointed. KPMG will be appointed.

In my last con-call also, I told that in Q3 or Q4 we'll do.

Okay. By Q3 of FY '27, you are saying KPMG will come into picture?

Correct, sir. Correct.

Fair.

That was one of the point. The second question was on the oncology thing.

I understand that your oncology you said 100 crores of revenue. Did we do any kind of revenue in this quarter in oncology in the existing plant?

The revenue from the oncology plant, sir?

Yes, yes, yes. Like you had mentioned in the last con-call, 100 crores is the estimation.

We did 30 30 to 35 crores in this quarter, sir.

Okay. You are saying your expansion plan on oncology will generate revenue from FY '28, you are trying to say, right?

Or it will generate some revenue in FY '27? No,

no, expansion plan will generate revenue immediately, sir, because we'll make the submissions to each of the ministries, even the European Ministry, Hungary we will make the expansion submission. We will make there in ANVISA Brazil also, Colombia also, that we have made this expansion and please come for the audit.

We can use the same registrations and start commercializing immediately.

Fair. Agar aap bol rahe ho ki

It's in the same facility. It's in the same facility.

Its expansion is connected to the same facility.

If you say 100 crore was your FY '27 guidance, and you have already done 30 crore, you are saying agar yeh bhi 100 mein achieve kar loonga toh I should be around more than 100 crores. Am I correct in my understanding?

No, sir. Can you just repeat your question, sorry?

You did 30 crores in oncology in this quarter.

Correct.

Your guidance in the last con-call was oncology will do almost 100 crores of revenue in FY '27.

Correct,

correct. You are maintaining the 100 crores target.

Sir, correct. Also somebody also asked the same question

that Main queue mein thoda late aaya tha, I'm sorry.

No. I understand, sir.

In Q3 and Q4, we are expecting more of generic registration in comparison to the oncology registration. Probably 100, 110 crore will be achieved from oncology, but you'll see a more jump in the General Facility registration.

Fair. Last question if you want to comment on it.

You said 600 crores for FY '26 was your guidance. You said 50, 70 crores probably on the LATAM thing, if that thing happens.

Any clarity after Q1 ki usme kuch update aaya hai aapko? I am sorry agar aap repeat karte rahoge because main queue mein late join hua tha, I'm very sorry about it.

Our target for this year has been revised to 700 crore plus revenue. I think so 35% or 40% will be again from the LATAM region, but the percentage of the generic registration and generic revenue will be more in comparison to the oncology one.

Fair. Thank you very much for the opportunity.

There are two people who are doing very good. One is Vaibhav Suryavanshi in cricket and another is Quality Pharma.

Keep doing the great work, guys.

Thank you, sir.

Thank you. Thank you very much.

Hi, sir. Am I audible?

Yes, sir.

Thanks for the opportunity, and congratulations for the amazing set of numbers, sir. Sir, I just have couple of questions.

If we see our last con-call, when you have guided, you have excluded revenue from onco and hormone. Similar guidance this quarter.

What could be the reason that we are excluding onco revenue and the hormone revenue from our guidance, sir?

Not onco, sir, biological and hormone from the

Sorry, sir. Yes, sir, biological and hormone.

One will be commercialized from next financial year, sir, hormone facility, and biological since a lot of things are going in clinical trials. We have taken these two into the major consideration in FY '30, not in FY '29.

We think that hormone, if we do not get registrations done up till FY '29, we might do it some sales in the ROW market, but that will be less than 60, 70 or 80 crores. That may or may not add up much to the total revenue mark.

We have taken their sales into consideration from FY '30.

Sir. Got it, sir.

The second question that I have is, sir, see, the business is on track, we are doing capex for complex products. Is there any plan of increasing stake by the promoter through warrant or from open market or any color on that, sir?

Because it will increase investor confidence to the next level, sir.

Probably we'll plan something, sir. As of now, we had certain money in Q3 of FY '26 where we did some purchase from the market, but probably we'll plan something.

As of now, there is no such plan.

Sir. Got it, sir.

Thank you, sir. That's it from my side.

Hope I'm audible, and great set up of number. Sir, I have just one question on FY '30.

Suppose we achieve FY '30 revenue around 1,500 crore, then what will be our revenue mix?

Revenue mix, sir, probably again from the General Facility, you will have 40%, and that too from the LATAM market again we'll do 30%, 35%. This time in FY '30, I think the 10% of the sales, 10% to 15% of the sales should be from the European market because the amount of registrations what we are expecting from the European region that are likely to commercialize in FY '20 from FY '28.

So 10% to 15% you can expect from Europe. Again, the remaining mix will remain more or less the same where 35% will be from the LATAM region, 15%, 20% from the MENA region, and then GCC of also 10% to 15%.

From FY '30, when the Indian market comes into play once we have the biosimilar clinical trials completion, India will again be a big sales for Quality, starting from the initial wave of commercialization of biosimilars.

Got it. Can you tell me the product-wise, how much come from our general product and biosimilar and hormone?

Sir, FY '30, again hormone products will be 200 crores, will be roughly around, let's say, 15% to 20%. 25% will be from the oncology products.

Biosimilar, if we are able to get the Keytruda registered, then probably 30%, otherwise it will be 15% from the erythropoietin. Again, the generic will be the major contributor of 35% to 40%.

Then remaining 10%, 15% from beta-lactam and cephalosporin combined.

Got it. Thank you, sir.

Thank you.

Thank you, everyone. I think I've tried my best to answer all your queries.

We'll keep the good work, and we'll try to keep you posted about Quality's registrations and new developments. Thank you for joining.