Ladies and gentlemen, good day, and welcome to the Amanta Healthcare Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note this conference is being recorded. I now hand the conference over to Ms. Soumya Chhajed from Go India Advisors. Thank you, and over to you. Soumya Chhajed: Good morning, everyone, and welcome to Q1 FY27 Earnings Conference Call of Amanta Healthcare Limited. We have on call with us Mr. Bhavesh Patel, Chairman and Managing Director; Mr. Paras Mehta, Chief Financial Officer. 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 now request the management to take us through the same and provide more insight on the quarter gone by. Post that, we'll open the floor for Q&A. Thank you, and over to you, sir. Bhavesh Patel: Namaste and good morning, everyone. And thank you for joining us for Amanta Healthcare Q1 FY27 earnings call. On behalf of the management, I would like to sincerely thank our shareholders, customers, healthcare partners, lenders, and employees for their continued trust and support. The quarter reflects our continued focus on disciplined execution while laying the foundation for the company's next phase of growth. Despite a challenging operating environment marked by inflationary pressure and higher operating cost, we delivered a resilient financial performance and remained focused on executing our long-term strategic priorities. During the quarter, we reported revenue of INR69 crores, up by roughly 5% year-on-year, while maintaining a healthy EBITDA margin of approximately 22%. While the quarter witnessed cost pressures, our focus on operational efficiency enabled us to sustain healthy profitability. Our confidence in the business is driven not just by quarterly performance, but by the strategic investment we are making to strengthen our manufacturing capabilities and product portfolio. Our SteriPort platform, which now contributes around 44% of our revenue, continues to witness strong customer acceptance. Built on advanced ISBM technology, SteriPort offers superiority in terms of sterility, enhanced safety, and lower patient risk compared to conventional packaging solutions. While the existing facility operating at healthy utilization level, we are expanding capacity from 6.6 crore bottles per year to roughly 12 crore bottles per year to cater to increasing demand across high-value therapies such as oncology, critical care, anesthesists, and pediatric. While the SteriPort expansion was originally targeted for commissioning during Q1, the operational delays, mainly due to the delay in the civil construction activity, have shifted the

commencement to Q2 FY27. We remain confident that this expansion will significantly enhance our manufacturing scale and operating leverage over the coming years. Alongside this, we continue to strengthen our small volume SVP portfolio. This is primarily export-centric business addressing attractive segments such as inhalation solutions, ophthalmics, and preservative-free unit doses. The SVP business contributed around 20% of FY26 revenue, and we expect the new facility to commence operations during Q4 FY27, further expanding our presence in high-margin export market. On the cost optimization front, our 10.8 megawatt captive solar power project has already been commissioned since June '26. It is expected to meaningfully reduce power cost, improve operating margins, and further strengthen our ESG initiatives. With differentiated sterile manufacturing technologies, a growing portfolio of complex products, expanding capacities, and continued focus on operational excellence, we believe Amanta Healthcare is well-positioned to create sustainable long-term value for all stakeholders. Before I conclude, I would once again like to thank all our stakeholders for their continued confidence in Amanta Healthcare. And before I hand over this call to our CFO, Mr. Paras Mehta, I just want to share that SteriPort Line 3 which was being commissioned, we have got the plans approved by FDA on Tuesday and the validation and qualification activities are going on, which are likely to get over by 18th of August, and we intend to take the commercial production in the last week of August, whenever we reach that stage, we will keep you posted. Thank you once again. And now over to our CFO, Shri Paras bhai Mehta. Paras Mehta: Thank you, sir. Good morning, and welcome to all and one to this Q1 result call for Amanta Healthcare. During the quarter, the performance has remained stable. Company has delivered a stable financial performance despite operating in an environment which is characterized by inflationary cost pressures as well as business slowdown due to Iran war situation across all segments. Q1 '27 revenue, as our MD rightly pointed out, despite all this, we could registered 5% year-on-year growth, supported by improved product mix as well as the better price realizations during the quarter. Operational discipline continued to support our profitability. We reported EBITDA of about INR15 crores with EBITDA margin remaining at about 22%. And despite higher raw material price pressure, employee cost, and other operating cost, which already started during the quarter for the new facilities, we could get this result. Looking ahead, we expect the commissioning of our SteriPort expansion by end of current month, followed by SVP facility by end of Q4 '27. Both these is supposed to strengthen our revenue mix towards higher margin products and operating leverage will also expected to help us for the maintaining our current profitability.

Combined with benefit from captive solar plant and continued cost optimization initiatives, believe that operating leverage will improve meaningfully over coming quarters as we move forward. With that, we conclude our opening remarks and would now be happy to take the questions from shareholders and investors. Thank you once again. Moderator: Thank you, sir. We will now begin the question-and-answer session. The first question comes from the line of Avnish Burman with Vikray. Please go ahead. Avnish Burman: Hi, good morning. Thanks for taking my question. Sir, just a couple of questions on the SteriPort Line 3. I think in one of the earlier calls, you had mentioned that the peak revenue from this line would be about INR110 crores to INR120 crores. I just wanted to know because you had also mentioned that there is a supply-demand mismatch here, will this peak revenue of INR110 crores to INR120 crores be realized within the 12 months of commissioning or what would be the timeline for that? Bhavesh Patel: So, that is a annualized number. So, the production capacity and the net realization that we envisage are not changing. So, on annualized basis, we should be getting INR120 crores top line. Avnish Burman: Okay. And this INR120 crores will be realized within the 12 months from the commissioning of the line, which will be August end, right? Bhavesh Patel: Yes, yes, yes. Avnish Burman: Okay. Understood. And sir, how much should we estimate the depreciation to increase on a I mean because of this new line from let's say on a quarterly run rate? Bhavesh Patel: Can I ask Paras bhai to take this question? So, estimated depreciation will be about INR4.5 crores from the new line. Avnish Burman: This is annual, I'm guessing. Paras Mehta: Annual, annual. Avnish Burman: Okay. INR4.5 crores of incremental depreciation on an annual basis. Okay. Paras Mehta: Yes, from this line -- from this line, new line, as you specifically asked for it, on full year basis, annualized basis compared to FY26, our total depreciation will increase by about INR6 crores annually because this new line along with SVP and the solar plant, all the three will have additional depreciation. So, total depreciation for the company will be INR6 crores additional compared to FY26. Avnish Burman: Yes, understood. Very clear. One more thing. Sir, again, in one of the earlier calls, you had for after the after the SteriPort line, you had mentioned that the margins will expand by 3% to 4%. I just wanted to clarify this margin expansion is only because of the product mix change, or it also includes the I think INR9 crores cost savings because of the power project?

So, I think the INR9 crores saving due to power captive power is a separate contributor, but SteriPort Line 3 commissioning is going to substantially contribute in absorbing overheads. So, the incremental overheads envisaged post-commissioning are far, far insignificant as compared to what we have right now. So, that was one of the main drivers. Other thing is, when we commission SteriPort Line 3, it will be dedicated 500 ml platform. So, on the existing line, we will be making only one SKU. So, that also helps in increasing the output to some extent. Although, it is difficult to quantify the impact of that, but it will be definitely favorable. So, these two things put together would be contributing to EBITDA expansion, plus solar captive would be an additional contributor. Avnish Burman: And this 3% to 4% because of op leverage expand is this is on the console margin, right? So for example, if FY26 was 21%, this 3% to 4% expansion is on the console number plus the INR9 crores cost savings. Is that the right way to understand? Bhavesh Patel: INR9 crores could be so, we were targeting 5% expansion with INR9 crores saving. So, 4% to 5% with INR9 crores. So, to be mean fairly accurate. Avnish Burman: Okay. So, 4% to 5% console EBITDA margin expansion including the INR9 crores. Bhavesh Patel: Including solar captive benefit, yes. Avnish Burman: Yes. Last question. Just this is for my understanding, generally, the SteriPort realization is in my understanding lower than the single-port LVP realization. Bhavesh Patel: Other way round. Other way round. Avnish Burman: Okay. Yes. Avnish Burman: So, okay. Maybe I've got data wrong, but from the DRHP, I was estimating maybe that the SteriPort realization is INR20 a unit on an average and the single-port LVP realization is INR40 per unit. You're saying it's the other way round? Bhavesh Patel: So, LVP conventional pack INR40 was never the case, but LVP BFS in our case, it is having more of formulations. So, formulations generally, they have higher NRV for the comparable pack size. So, that could be the reason probably why you could have captured those numbers, but it could never be INR40. Avnish Burman: Okay. Okay, so because of the formulation. Understood. I get it. Bhavesh Patel: Formulation, yes. So, conventional pack has got formulation as well as classic IV fluid. So, formulations typically, again, it has a wide spectrum. It has low-yielding product and high-volume product, and the other end of spectrum, it has high-value product with low volume kind of thing. Avnish Burman: Understood. Thanks. I'll get back in the queue. Bhavesh Patel: Thank you.

The next question comes from the line of Nikhil Agarwal with Alpha AIF. Please go ahead. Nikhil Agarwal: Hello, sir. Very good morning, and congratulations on the decent set of numbers. Bhavesh Patel: Thank you, Nikhil ji. Nikhil Agarwal: Sir, in the presentation, you said there was some cost pressures. I wanted to understand what were those. Bhavesh Patel: Okay. So, one is it was difficult for us to comprehend how the Middle Eastern crisis would lead in terms of polymer pricing. Although the effect of that is not much in this quarter. Secondly, sizable part of that has been absorbed in the price correction. But main cost pressure was on account of the overheads which we have absorbed on account of expansion, because generally, you have to have manpower ahead of the you know, before you get commercial. And the commercial process has got delayed by one quarter. So, in this quarter, we are absorbing the overheads without any contribution from SteriPort Line 3 due to delay. So, that's what we meant. Nikhil Agarwal: And sir, do we expect to see more price increase in the polymer pricing in the raw materials market? Bhavesh Patel: So, polymer price is by and large a function of the crude oil price. So, now that oil prices are softening, the polymer prices have already started softening. In fact, they started softening ahead of oil in anticipation. So, this spike was very short-lived. It was I think for two to two and half months only. Nikhil Agarwal: Okay, and we increased the prices back to rupees for to counter this impact, right? Bhavesh Patel: I think, they have come to very close to what they used to be earlier. And I think within two to three months, it will come to normal pricing. Nikhil Agarwal: Got it, sir. And sir, when are we expecting to commercialize the SVP facility? And how far we are we on the requirements of overheads for like employees and everything? Bhavesh Patel: The first question I understood, when we are likely to commercialize SVP. To answer that, it would be in somewhere in March, February to March '27. Because our FAT is scheduled in USA in the second week of November. Got it. So, it will be it will be at our site by December and then two months from there onwards. The good part is that there is not much of civil work required for this, so it is less speculative in terms of timeline. But second question I did not get. Nikhil Agarwal: I was asking, how far we are on the overhead expenses of SVP facility, like hiring of the trained works- workforces and professionals? Bhavesh Patel: So, SVP, there was no need to hire significant workforce because we already have manpower for that. But for our focus for -- as far as SVP is concerned, our focus is on product pipeline

development. So, there are 20 products in pipeline which are being developed. One, two products have been developed already. We have taken exhibit batches, and I think, one would be commercialized very soon in September, mid-September. So, that is an inhalation product, and so, as far as SVP is concerned, for that initiative, our overhead would be merely in F&D only. And that we already have onboarded people for that. So, there would not be any increase on that account. Nikhil Agarwal: Got it, sir. Thank you, and that's it from my end. Bhavesh Patel: Yes, thank you. Moderator: The next question comes from the line of Preet Shah with Blue Star Capital. Please go ahead. Preet Shah: Am I audible, sir? Bhavesh Patel: Yes. Preet Shah: Yes. First of all, congratulations for good set of numbers. Sir, my question is, with the full capacity, of the line of SteriPort and the line which will come in Q4, so what could be the total revenue we can achieve at peak utilization? Bhavesh Patel: I had annualized number, but so, say we are in August already, so for the so, we have seven months with us. So, in those seven months, SteriPort should contribute roughly INR70 crores in top line. And baseline numbers right now is so, roughly we can in spite of 5 months delay on SteriPort Line 3, we can still close at roughly 370 or so. INR370 crores. This is this is without SVP? Sorry, this is without SVP. Okay. Preet Shah: And sir, for FY28, what could be the peak at peak utilization, what could be the revenue at all, like SteriPort plus SVP and the current capacity? Bhavesh Patel: So, you are referring to year '27-'28? Preet Shah: Next year, next year, sir. For next year. Bhavesh Patel: Yes, yes. Preet Shah: As all the capacities will be live. Yes, as all the capacities will be live, what could be the peak revenue we can achieve? Bhavesh Patel: Roughly INR425 crores. Preet Shah: INR425 crores. Okay. And sir, what could be the EBITDA margins? Bhavesh Patel: So, EBITDA margin would be roughly INR116 crores. Preet Shah: Sorry? Bhavesh Patel: INR116 crores.

Margins, sir. Margins. Bhavesh Patel: Margin about 25%-26%. Preet Shah: 25% to 26%. And same for FY27 and FY28. Bhavesh Patel: Correct. Yes. Almost. 1% plus/minus. Preet Shah: Got it. Got it. All the best, sir, and thank you. Bhavesh Patel: Yes, thank you very much. Moderator: Thank you. The next question comes from the line of Divya Daga with VGSPL. Please go ahead. Divya Daga: Hello. Hello, sir. I have two questions. First, I want to know who are the competitors in India? And my second question is, when are we operationalizing the SVP part and SteriPort, in which month are we expecting that? Bhavesh Patel: Okay. So, SteriPort, as I said earlier, we have got the plans approved by FDA, which is the first step. The validation and qualification of line is going while we are talking at this moment, it's going on. All the trial runs, etc., section-wise, have been taken last month. And validation, qualification will get over by 18th. And we are likely to get operational by 24th of 25th of August. But this also depends upon when the FDA comes and finally inspects. So, inspection is scheduled on 21st. If they come on 21st, by 24th or 25th, we will become operational for SteriPort Line 3. SVP will get operational in March '27. So, that is on schedule. SteriPort Line 3 got delayed by four, five months due to civil construction delay, but SVP would be on track as projected in our IPO briefing. Referring to competition, so, SteriPort as a product is classified as not SteriPort particularly, but government has classified product in a manner where your glass bottle, simple plastic bottles, and plastic bottle with special features. So, SteriPort happens to be a plastic container with special features as per the classification. In this category, nationwide, you have there are quite a few companies, but main companies who are active in this space who are promoting and who get very good traction in hospitals are, apart from Amanta, we have Otsuka, it's a Japanese MNC; Fresenius Kabi, it's a German MNC; B. Braun, but confined only to major cities; and then you have Aculife. Again, not very I mean nationwide, they don't have presence nationwide, but they are part- somewhat active. So, these are competition profile in special category. Divya Daga: Okay. So, as we are expecting SteriPort capacity from August, will it impact our Q2 numbers as we are already utilizing 90% to 95% of our capacity? Bhavesh Patel: The Q2 numbers, the needle may not move much, except that we will have one September month contributing towards it. So, that needle may move only to that extent. The solar power the captive

solar power plant probably would contribute more than SteriPort. But from Q3 onwards, we will see proper impact of SteriPort Line 3. Divya Daga: Okay. And one last question. Are we expecting stress in our gross profit margin in this quarter? Bhavesh Patel: this quarter, there would be a little bit stress on account of polymer price volatility. The polymer prices went up by roughly 70% to 80%, but this spike was only for 2 months. And now, they have come to normal level almost, 80% they have come down. So, but we are absorbing that in our price correction. So, we are hopeful that during the quarter, we should be able to absorb this spike by at least 70% or so, and remaining can be absorbed in the following quarter. But on a on an yearly basis, we should be able to absorb it. Divya Daga: Okay. Okay. Thanks so much, sir. Moderator: Thank you. The next question comes from the line of Shivam Shah with Zen Nivesh. Please go ahead. Shivam Shah: Good morning, sir. Thank you for the opportunity. Sir, my question is with the SteriPort and SVP expansion expected to conclude by the end of FY27, what are your next major growth drivers expected to be? Like, is the management planned for any next phase beyond this? Bhavesh Patel: So, that's what I was referring to, that SteriPort and solar would contribute in terms of quantum and would scale up our overall operation size. And SVP line that we are commissioning is going to be very versatile. So, that platform will be making inhalation products, preservative-free single-dose ophthalmic products, and nasal drops mainly for European market. Now, to support these activities, we need to have a solid backup of formulation development activity. So, we developed a team of F&D. We have five scientists now working on 20 products. And they have been working for last 1 year. So, one inhalation product is likely to get commercialized by 15th September. We have taken the exhibit batches, stability is clear, and we'll take the first exhibit and commercial in by 15th September. And likewise, we will have around 20 products in the pipeline, and we are likely to complete this project within 18 months. So, that would be a main growth driver. So, SVP line when it gets commissioned, it can give it can produce plain vanilla products for average EBITDA margin. But inhalation portfolio if we strengthen that, then that give will that will give us additional EBITDA. So, that's our that's what the future growth driver would be. So, to summarize my what I said, inhalation products, ophthalmics, and diluents in advanced market. These are going to be our key growth drivers for '27, '28, '29. Shivam Shah: Got it, sir. Thank you. But we are not exploring any adjacent like products in terms of like healthcare equipment? Bhavesh Patel: No, not at this stage. But because right now, the focus would be to see SteriPort is not bothering us because that capacity built-up and getting I mean, it's India-centric initiative, so there are no

Okay, sir. Thank you. Thank you so much. Bhavesh Patel: Yes. Thanks. Moderator: The next question comes from the line of Nikhil Gupta with Vaayu Capital. Please go ahead. Nikhil Gupta: Thank you for the opportunity. My question is almost similar to the previous participant's question. So, what is the long-term vision of the company in terms of growing top line? Is there a vision to cross a 1000 crores mark over the next four, five years? And once the SteriPort and SVP expansion is done, and other all the other projects you mentioned we are working on, what should more we do in terms of getting that particular target over the next four, five years? Bhavesh Patel: So, we have never attempted to translate our vision into rupees, but we see it this way. That we have very good traction in India's hospital space. SteriPort is patronized by intensivists, pediatricians, oncologists, cardiologists. So, we would like to leverage our presence in hospital market. The long-term vision of the company is to stay focused on sterile dosage form. Anything that is sterile in nature would be of our interest, and that itself is a huge space. It's a very specialized space, it's capex-intensive and activity-intensive. So, to summarize, we will stay wedded to sterile dosage form. But there will be departure. We will not remain inward-looking to an extent that whatever is possible to do in plastic only, we have been doing so far. But going forward, we would have other packaging solutions, process solutions, etc. And there are quite a few innovations that are happening in the industry, and we are capturing those things. We are alive about it, and the long-term vision to rephrase it is to stay focused on sterile dosage form. Anything which is sterile would be of our interest. Nikhil Gupta: Thank you. Best of luck. Bhavesh Patel: Yes, thanks.

Thank you. The next question comes from the line of Urmish Shah with Moneywisers. Please go ahead. Urmish Shah: Yes. Hi. Thank you for the opportunity. Sir, my first question is, you just spoke about price fluctuation in polymer, and you also said that you have absorbed most of it. So, I want to know how have you done it? Is there a pass-through mechanism for us or, you know, how do we mitigate those? Bhavesh Patel: So, usually, whenever there is volatility of this kind, we take corresponding price correction. Urmish Shah: Okay. So, if you could quantify the number on an ballpark basis because when you said that the prices were risen by 70%-80% and, of course, now they have come back, so what was the price correction that you took? Bhavesh Patel: So, polymer in SteriPort particularly is a smaller part of our overall cost structure. So, I think we increased the price for by INR1.50 or so. Yes. So, the selling price was increased by INR1.50. Urmish Shah: Sure. Bhavesh Patel: And the impact of the polymer increase was roughly INR2.25. Urmish Shah: Okay, sir. So, so when you say that, you know, we'll be seeing a margin expansion, do you take into account these price fluctuations? Is that the right way to go about it? Bhavesh Patel: No. When we projected the EBITDA, I mean, SteriPort commissioning and projections post-commissioning, nobody we didn't know about this crisis, and this crisis can lead to such huge volatility. This is unprecedented. We have seen volatility, but not to this extent. But the mitigation will happen differently. For instance, the input price went up and came down and it remained there for 2 months, but the price correction would have longevity. It will be there for, you know, longer time. So, if you increase price by INR1.75 -- INR1.50, even if it has to come down, it may come down by INR0.25 or INR0.30, but it will remain INR1 plus for longer time. So, you may have to absorb the polymer price spike in a quarter, but the your recovery may spill over 2 quarters, something like that. Urmish Shah: Okay. Okay, sir. Bhavesh Patel: Yes. Urmish Shah: So, my next question is, why are we, you know, looking to enter regulated markets like UK, which requires a longer approval and timeline, rather than going further deep into our already existing markets? Bhavesh Patel: So, we do both. Our if you -- look if you break up our revenue, and if you go by the therapeutic segment, 90% of the revenue in SVP comes from export. And this 90% revenue, out of 90%, more than 60% comes from advanced or semi-advanced markets.

Now, we have very decent experience and appreciation about the advanced markets for very niche products. For example, diluents -- and two diluent presentations. Amanta has been the only company which has exported this this product to Australia and Canada for 3 years. Urmish Shah: Right. Bhavesh Patel: No other company has ever exported BFS container from India to these two markets in injectable form. So, we understand, but we did not continue because we didn't have capacity. Now that capacity is being added, so the first logical step with SVP expansion would be to address PIC market. So, going forward, we would have maybe 60%-70% of revenue of SVP coming from advanced markets only. Urmish Shah: Okay. So, my final question -- yes. Sure. Bhavesh Patel: So, we have initiated the compliance because the peak guideline has undergone a sea change in last 6 months to 1 year. The EU Annex 1 has also changed and particularly for Blow-Fill-Seal operation, there are a couple of hardware corrections, which we have to do so that they are being done. And once that is done, then we will get a peak approval. Urmish Shah: Right. Okay, sir. So, my final question before I join back is, our networking capital days for FY26 stands at 141 and our debt-to-equity obviously, it has been on a decreasing trend, but still stands at 1.06. Bhavesh Patel: Okay. Yes. Urmish Shah: So, you know, can we see further improvement in that? Bhavesh Patel: Actually, there was a significant improvement, but we took additional debt for solar captive. Urmish Shah: Okay. Bhavesh Patel: So, this solar captive was a no-brainer because it is saving roughly INR75 lakh a month. Urmish Shah: Right. Bhavesh Patel: So, if you take out that debt, then you will see that downward trajectory moving even faster. Urmish Shah: Okay. Bhavesh Patel: But I think the debt overall annually will keep reducing by INR30 crores-INR35 crores. Urmish Shah: Okay. And networking capital days, can it go from 140 to around 120 or... Bhavesh Patel: So, working capital cycle generally is longest in our case because we have quarantine of 15 days at least. Urmish Shah: Okay.

And when it comes to export, that quarantine duration can reach up to 25 days to 1 month. Because of shipping lineup, sometimes customer, they want to have pre-shipment inspection and things like that. So, out of this, at least 20 days to 25 days have to be reduced for quarantine purpose. So, that's why it remains little longest. And this is very typical about all the IV fluid manufacturers and injectable manufacturers for advanced markets. Urmish Shah: Okay, sir. Got it. I'll join back the queue for further questions. Thank you. Bhavesh Patel: All right. Thank you. Moderator: Thank you. The next question comes from the line of Mukesh Panjwani with WC Securities. Please go ahead. Mukesh Panjwani: Yes. Hi, sir. Good morning. Bhavesh Patel: Morning. Mukesh Panjwani: Sir, in this financial year, like there has been margin pressure for we can say like for 5 months, and next 7 months to be like better. So, what kind of annualized EBITDA margin we can expect this year? Bhavesh Patel: So, the margin pressure was not for 5 months. In this 5 months, the polymer spike was there for maybe 45 days or 2 months nearly. Mukesh Panjwani: Okay. Bhavesh Patel: And the other additional cost that we are incurring is on account of overheads where we have taken the team in anticipation of SteriPort line commissioning. So, that is already absorbed now. And as we said, we have 7 months of operational time available for this year from September 1st onwards. So, that should give us roughly INR70 crores of EBITDA top line. Mukesh Panjwani: How much, sir? Bhavesh Patel: INR70 -- INR70 crores. Mukesh Panjwani: Okay. Got it. Okay. And sir, how should we see our interest expense this year? Paras Mehta: So, interest cost has been reducing, because the debt has been reducing, the interest cost was also reducing. But if you see this quarter, there is marginal increase in the interest cost. That's because of solar power. Solar capex. Mukesh Panjwani: Okay. Paras Mehta: Yes. Mukesh Panjwani: Yes. Paras Mehta: But again, in following quarters, the following quarters, you will see the interest cost reducing further.

Okay. Thank you. Moderator: Thank you. The follow-up question… Paras Mehta: No. Moderator: Okay. The next question comes from the line of Saket Saurabh with Sagari Capital. Please go ahead. Saket Saurabh: Hi. Am I audible? Bhavesh Patel: Yes, sir. Saket Saurabh: Yes. So, sir, you mentioned that, especially for near-to-medium term, I think the three axes of growth that we see, especially via SVP, is one is the geography, the advanced/regulated market; second was getting into newer packaging forms beyond polymer; and third, of course, you are getting into new therapy areas or formulations. So, if just going one-by-one, so within regulated market, which would be say Top 2 markets to 3 markets where we are focusing most of our efforts like UK, EU, Canada, U.S.? Just can you specify some of those top regulated countries, sir? Bhavesh Patel: So, at the moment, if you say advanced market, then it is mainly coming from UK and Ireland only. But in the past, we have sold diluents and some OTCs in Australia and Canada. So, we are familiar with these markets. We understand their regulatory expectations. We know the hospitals' preferences, what they like, what they don't like. And there, we were competing with the likes of AstraZeneca and Pfizer and B. Braun, and we were doing fairly well. But because we did not have additional capacity, and that would have victimized our UK business, so we had to choose between the two. Now that capacity is being expanded, our focus now would be on ophthalmics for EU, Australia, and Canada. Saket Saurabh: Okay, sir. Sir, what would be your say current R&D spend and what percentage would be say dedicated towards regulated markets? And what is the likely trajectory of say R&D spend for the coming years? Is it likely to go higher? I'm talking in more percentage of revenue terms? Bhavesh Patel: So, honestly, I have not quantified, I don't have the numbers with me at this moment, but earlier, we did not have dedicated F&D department. Our QA and QC infrastructure was used by the same team to develop the product. Because there are very few products which we can do in plastic in BFS particularly. But now that we are going to have inhalation portfolio, we have dedicated team of five scientists, and at the -- at right while we are talking, we are constructing a separate center for formulation development. I believe that we would have around 8 people to 10 people only in F&D, and around 3 people to 4 people in regulatory affairs for advanced/semi-advanced market. This is the kind of team I'm envisioning. But to answer question, I don't have the numbers how much we spend in R&D. We can, I think, quantify the numbers, both the overhead and the spending, and then we can circulate it.

Sure, sir, that would be great. My next question would be that, you know, many of these companies like B. Braun and the Otsukas of the world, they focus a lot on, you know, say not just the packaging as well as formulation part, so when it comes to at your end, we are only focusing on say formulations going forward or say we could also come up with say newer drug device combinations, like we also do fill finish, like you talked about inhalation portfolio, so then there are different kind of dispensers nowadays to dispense these medicines. So, are you working aggressively on newer dispenser mechanism as well, like inhalers or say how you can better administer those drugs, so that requires a very different kind of capability, right? So, is there a focus on integrating those capabilities also within the fold? Bhavesh Patel: No. So, at the moment, we are going to restrict our efforts in BFS portfolio which can be used with nebulizer. So, that would be the area of interest, because right now our manufacturing capability is only to offer BFS products, and that market itself is huge, both in India and outside. I think that's one of the fastest growing sub-categories in India. So, we will stay focused on that. Once we strengthen that, then we have customer-facing operations in hospitals by virtue of IV fluid portfolio. So, we would leverage that infrastructure and do front-ending for inhalation products also in hospitals. And that would be a great departure for us because the way we have developed SteriPort brand, likewise, we intend to develop this rest -- inhalation portfolio also. So, that would be done in a staged manner. So, that would be one. As far as ophthalmic is concerned, we want to develop out of 20 products in pipeline, probably 7 to 8 are in ophthalmics. But we don't intend to do front-ending there in India at least, because that requires different kind of setup and different team. So, we don't want to dive -- get distracted in that space. We would stay focused only in hospital offering. And because the inhalation portfolio finds its way to hospitals, so there is a synergy with what we are doing. Saket Saurabh: Got it, sir. So, if I look at say the current outline strategy, it seems, you know, SVP is more near-to-medium term because again, given the dependence on different kind of approvals as well as product development that you are focusing on, so it will keep us say engaged for say next 2 years to 3 years at least. Now, as far as SteriPort is concerned, it seems within a year itself, you would be able to say utilize the entire capacity. So, how do we look at say growth driver and as SVP is largely exports being mean one of the major drivers, so for domestic, is there any further capex envisaged within SteriPort itself, because it seems there is demand-supply mismatch, so are you likely to go for another round of capex for SteriPort? Bhavesh Patel: No. We -- so, I will let me clarify the driver part first, and then I will come to this. So, in this year, the main growth driver would be SteriPort capacity build-up, which is India-centric, non-segmented market, so there are no regulatory hurdles, no speculation about the timeline, and that would be the main contributor towards growth in this year. Next year onwards, it would be SVP inhalation plus diluents in advanced markets, which we have done in the past.

And then going forward, we there are many other innovations like you have IV bag line, then you have injectable, lyophilized, you have cartridges, but that's all in glass. So, the follow-through capex for Indian market and for advanced market would be that. So, gradually, a part of SVP will take a color of CDMO for finished dosage injectables going forward. Saket Saurabh: Got it, sir. Thanks, and really best wishes, and thanks for answering my queries. Bhavesh Patel: Yes. Thank you. Saket Saurabh: Bye. Bhavesh Patel: Thank you. Moderator: Thank you. The next question comes from the line of Deeya Jain with Sapphire Capital. Please go ahead. Deeya Jain: Hi, sir. Thank you for taking my question. So, can you please provide the amount we have invested in SteriPort Line 3 and SVP, and how much you are going to spend in FY28? Bhavesh Patel: I didn't get your question. Deeya Jain: How much capex we have done in line 3 and the SVP expansion? Bhavesh Patel: Okay. Paras bhai, can you take this question. Yes? Paras Mehta: Yes. So, SteriPort Line 3 is expected to have INR90 crores of total capex, out of which almost INR80 crores has been spent so far. SVP is expected to have about INR30 crores of capex, out of which about INR7 crores has been spent so far and remaining will be spent in coming quarters. Deeya Jain: Okay, sir. Thank you. Bhavesh Patel: Yes. Moderator: Thank you. Ladies and gentlemen, this will be our last question, it's from the line of Avnish Burman with Vaikarya. Please go ahead. Avnish Burman: Hello? Moderator: Avnish, you line have been unmuted. Please go ahead with your question. Avnish Burman: Can you hear me now? Bhavesh Patel: Yes, sir. Avnish Burman: Yes. Sorry. So, my question was on the incremental capex on the new line 3 for SteriPort. I'm working on basic assumptions like INR90 crores capex and about say 110 networking days of capital, please correct me if I'm wrong, but I'm getting a incremental ROCE of about 16%-17% on the new line, can you clarify, is this broadly the right number, incremental ROCE/ROI?

Yes. Yes. Broadly, this is correct. Avnish Burman: Okay. And a similar number -- a similar calculation on the SVP was giving me a number of about 13%-14% because I guess the asset turns is a little less than the SteriPort line. Is that also a right number for the SVP? Bhavesh Patel: Yes. Almost right, couple of percentage here and there. So, it should be around 14%-15%. Avnish Burman: 14%-15%. Understood. And the -- what should we assume as a tax rate for FY27 and FY28? Is that going to be the same as 30% as we've shown previously? Paras Mehta: 26% effective tax rate in books. 26. Avnish Burman: Okay. And just coming back on the ROCE, any reason why the ROCE is for SteriPort line is 16% to 17%? I mean, this number seems to be a little low, so is there any reason for that? Paras Mehta: No. It's a traditional business. I mean, existing business, what we are doing currently. So, immediately, it may not jump on because our capital base is already higher now with the new capital from IPO and the -- including the share premium, and internal accrual may be used in form of cash for the expansion, but on books, you will always see the profit accumulated going to reserve. So, capital employed will keep on increasing year-on-year. So, to match that number, you need to have speed of profit higher than the rate of capital employed increment, which is not possible in the short term, but over a longer period, it will happen. Avnish Burman: Okay. And in the industry, typically, this is what incremental ROCE is in any incremental sterile line generally? Paras Mehta: We are little better than industry, if you study the other companies which Bhavesh sir has already named, their numbers will be almost same or little lower. So, we are little better than the industry. Bhavesh Patel: See, the only problem is that amongst the listed, the other companies, they may not have exact scale or exact product basket that we have. So, that some divergence could be because of that. Avnish Burman: Okay. Last question from my side. On the interest, you said that in the coming quarters, it will it will reduce. Right now, it's at a run rate of about INR6 crores per quarter. What would be like fiscal year interest numbers for FY27, FY28 given I mean that you're probably beyond the peak capex cycle? Paras Mehta: So, it should be on annualized basis, it should be about INR18 crores-INR19 crores. Avnish Burman: This is for FY27? Paras Mehta: '28. Avnish Burman: And '27?

'27 should be about INR21 crores. Avnish Burman: INR21 crores. Thank you so much. Moderator: Thank you, sir. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments. Bhavesh Patel: Thank you, Go India team, and thank you all the investors and analysts. When we meet next time, probably I would be able to share more news about SteriPort commissioning and our product development activities that we are doing right now. Thank you once again. Moderator: Thank you, sir. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.