My first question is on the India business growth. Vikas sir, you mentioned that the semaglutide launch priority, which will add to growth. Given that we have grown this year at close to about 10%, how should we think about growth going forward? Should we assume that growth improves further? And if you could also give us some color into how the trade generic business grew in FY '26 rebranded?
On the trade generics.
Sir, on the U.S. business, I see that we have a tentative approval for tolvaptan. Is that not a near- term launch for us or just launch slated for fiscal '27?
Understood. And for Mirabegron, it would be based on the litigation outcome for the existing generic players itself?
My first question is on gross margins, given that U.S. revenue has picked up finally, we still see an improvement in gross margin. And I think the sense was that because U.S. business was low, that was helping gross margin. What drove this gross margin improvement, if I was to look at the entire last year versus first quarter? And from a sustainable basis, what should be the margin that we should -gross margin that we should look at for the full year?
In which case, this -- should this gross margin level be broadly sustainable? I mean obviously factoring in the seasonal change. Should we able to be -- should Alkem be able to maintain the 65% gross margins through the year?
Based on the annual data that we have given…
Yes, sorry about that. Is this better now?
The first question is on the People Tree acquisition in Bangalore. How should we think about this facility because it's just a 125-bed facility? I think it's not fully ramped up now. So how should we think about 3 years in this facility and it moving to, let's say, mid -20s margin? And would it require additional investment to get to that mid-20% margin?
Dr. Raghuvanshi, the 300 beds that you're talking about, so currently, it's at 125 beds and then you have the adjacent land, which allows you to add more capacity. So essentially, we'll build out the new capacity in the adjacent land. Is that how we get to this 300 number?
Sir, my first question is on the Gleneagles O&M. Currently, does this include Mumbai also? Or is it just for the facilities except Mumbai?
Understood. And given the update that we saw from the approval for SEBI for open offer, how should we think about Fortis eventually at some point of time looking to take over, converting this O&M into, let's say, acquiring these assets. I mean, does these assets interest Fortis, particularly given they have assets in Hyderabad and Chennai, which Chennai, we divested, Hyderabad, we don't have a presence. So just trying to get a sense of if you think about the Gleneagles portfolio, how doe s that fit into Fortis, if at all, we were to consider acquiring this asset?
First on the Glenmark O&M contract tha t you announced. What is the game plan here because a few of the Glenmark -- sorry, a few of the Gleneagles facilities are not in our core cluster, like Hyderabad, Mumbai, Chennai. And this does not seem to include the Mumbai facility. So is that also at some point going to get included to the O&M contract? Any color here?
Understood. And what about the other facilities, sir? Because I think Gleneagles also has facilities in Hyderabad and Chennai, which technical ly aren't Fortis' core markets, given their exit in Chennai now. Seeing from an O&M perspective, how does Gleneagles, the O&M contract that we have signed, fit into the Fortis network?
I just wanted to check on the raw material availability that you talked about. Would it be fair to assume that obviously a lot of that availability is coming at a higher price, which would start reflecting in the first quarter fully? And also, if you could just comment on our ability to pass on this cost inflation, particularly in the generic segment? Have we started seeing generic API prices probably that have been under pressure bottom out now that we are facing cost pressure? Or you don't think it's too premature to sort of see that?
Understood. And Dr. Divi, is it fair to assume that not all of our contracts are long term and there is some amount of spot supplies, which could see this impact from the cost pressure? Or would you say bulk of the contracts are long term and therefore, we have some flexibility in terms of being able to negotiate as and when the contract comes up for renewal?
Nilima, on the generic business if you were to look at, let's say...
Can you hear me now?
A quick question on the India business. I think you mentioned we grew double digit in the trade generic business, and I see we are growing double digit in consumer health care as well in FY '26. So is it fair that the branded generic business has actually been pretty muted for the entire year? Therefore, what gives us confidence that we'll be able to beat India growth in the next year?
So in that case, given that we've had a fairly low base on seasonality, ideally, even a normal season should give you that tailwind for India growth this year, right? That would be a fair assumption, even if we didn't have like even a normal season should help.
Ashish, just on the R&D guidance, I think I missed the number. You mentioned something about 500 basis points in your opening comments. I didn't quite catch what you mentioned in terms of spend being higher?
And what would be this -- the accelerated filing in which specific areas are we looking at? Is this the same U.S. generic and respiratory or is biosimilars? If you could give us some color on what the accelerated filings are in which area?
Yes. Thanks for taking my question. Just extending the question on the Digital business. I see that the revenue growth here has also been low, sort of, I would not say lower, but there is been a moderation in revenue growth as well quarter -on-quarter. One, can you take us through what should be the revenue base for the digital business? What drove this moderation? And second, from a guidance perspective, do we still keep our guidance for cash EBITDA breakeven for the Digital business? I think it was supposed to be at the end of fourth quarter? Any update there?
So, if I were to understand it correctly, you are saying that the digital -- sorry, the digital cash EBITDA breakeven is now probably pushed out by a quarter?
The first question is on the hospital business. Now that the Bangladesh patient flow disruption is in the base , is it fair to assume that the hospital growth rate which has been in the 10 %, 11% will inch up to the mid -teens along with the bed expansion? Just trying to understand when we go back to the mid -teen growth that we are used to seeing in the hospital business.
And this is, because if I look at the occupancy, the occupancy does not seem to be showing an improvement. Obviously, we have also seen a decline in ALOS. So, I am just trying to understand how much of it would be, you know, how will it be reflected in terms of operating metrics of occupancy? How should I look at that for the existing network?
Thanks for taking my question. As we are starting work or doing work on Unit-4, you mentioned that, there's a fair bit of order that you're sort of building up, but how should we think about creating capacity versus when getting into new business, particularly if I look at CAPEX across peers, both in India, China, and Europe on the CDMO side. Is that capacity investment essential to get new business? That's my first question. Second, on peptides, while you did mention that you want to get more on peptides, what do you think differentiates Anthem on its ability to get more business on peptides? How should we get more confidence around that? Thank you,
That's very helpful, sir. Just a follow -up on the first question. On Unit-3, as we see it ramping up probably in FY27, more so in FY28, would it be fair to assume that we get to that 1.4 -1.5 asset turn probably in 3 years' time? Would that be a fair assumption?
Sir, while I got the background in terms of what led to the integration and how we're seeing an improvement. Just wanted to get a sense, do you think we get back to higher than industry growth, let's say, in 12 months, 18 months' time, based on what you're seeing on the ground, how soon do you think we can get to, let's say, in line with industry growth or better than industry growth. Do you think this would be a much more longer process? Or just trying to get a sense based on given that you've done so much work on the ground?
Got it, sir. Prakash, this INR464 crore BSV number that you gave for the quarter, would this number be higher quarter -on-quarter flattish quarter -on-quarter? What would be your sense? What would be this number for second quarter?
My first question is on the organic India business. After the GST disruption that we've seen in this quarter, you mentioned that we can expect recovery in the second half. So on an ongoing basis, when you say outperformance to IPM, should we assume double -digit growth as doable for Mankind in the domestic formulation business?
Understood, sir. So in that context, shoul d I assume that, let's say, our path of outperformance to IPM would probably take a couple of more quarters and it's not something that we should expect, let's say, in third quarter or fourth quarter? Is that how I should read your commentary?
My first question is again on the capex number, the INR2,000 crores that we had mentioned, how much of this would be for Cenexi versus the Base business? .
Okay. So that means we're really doubling the gross block or really doubling the gross block once this capex is completed.
The first question is while you mentioned that the second half would be even stronger, we had given a guidance of mid -teens for the consolidated revenue growth previously. Does that still hold? I mean, how much stronger can second half be? Because if I loo k at your first half run rate, that will imply second half being over 20% sort of growth. Do we have that kind of visibility on second half?
So just to be clear on a full year basis, we still maintain the mid-teen growth guidance?
Yes. Thanks for taking my question. Abhay, last call, you had mentioned that in probably 6 months' time, we should start seeing traction in Noida with insurance empanelment. So is that on track? Should we start seeing that improvement in Noida, let us say, in the December, March quarter? And at what point do you see Noida getting to, let us say, mid 25% margins?
Yes, yes.
Thanks for taking my question. First one on India, the field force expansion that we have done, I think you mentioned the number 7,000 by year end, which is adding like 600 people over the course of FY '26. If you could just give us some color where we are adding this field force. Is there any specific therapies that we are looking at? Is this for market coverage? Any color here?
And the new division you mentioned, you will announce at a later date?