The first question is from the line of Mr. Amey from JM Financial.

Basically, the 9% growth, which we have delivered this year in India, is it fair to assume that this base is on the normal base as well, if you can give us the breakup in terms of the volume and price for this 9% growth for the quarter?

So is it fair to say that from the negative trajectory of volumes in post COVID for 2 years than last year around 2% volume growth, what we have seen. Now we are moving towards like 4% to 5% kind of a volume growth for the full year?

Yes. That is what we are targeting.

Sure. And going ahead because there will be diabetes sales additions happening, right, from the Sanofi. So how should we look at the number for the full year? Is it possible to quantify how much of the sales coming in from the Sanofi Diabetes portfolio?

Sanofi would roughly be about INR 200 crores portfolio annualized. So, we'll get about 9 months of that in the year.

8 months we'll be getting in the current year. And on an annualized basis, it is INR 200 crores.

Got it. And in terms of MR addition, has there been any MR addition for diabetes or we will be working with same cardio metabolic MR

So we already have three divisions in the cardio diabetes space. So we're not adding new MRs. This will get fit in the current one.

Sure. And the last question I have on the FCM performance, if you can elaborate for this quarter how the performance will be especially now the competition has been largely settled in

So I think on the prescription side now, we're seeing revival on growth. So this quarter, Orofer FCM grew in double digits for us. So that is doing well for us. I think where we are seeing still a bit more challenging is on the institution side, where some of the competition is still there at lower pricing. But I think on the promoted side, we are seeing traction and revival.

And just to add , I mean, the promotion, we are essentially focusing on quality and cert ain parameters where we are better than the competitors, because as you know, this particular product we brought in the country for the first time. So we are having a lot of data and the scientific promotion is also helping us. And we are getting the traction going forward. And as Piyush rightly said, in prescription market, we are doing well. But when it comes to the question of institutions, the challenges remain.

Got and just last question, like how much would be the mix in terms of prescription and institutional for us for that particular product franchise?

Orofer FCM or for the overall?

For FCM franchise

I think now a majority will be prescription-driven now.

Okay. Sure, sure. So that should start reflecting in our performance in the subscription.

You had spoken about further launches in FY '26 in the women's side segment in the previous quarter. Can you take us through the progress on that front?

So yes, at, we have launched two areas. One is we talked about the PCOS and second is on the menopause. Both of them have been launched in last quarter. I think as we have talked about last time, these are new concepts we are trying to establish in the market. So early days, but we are seeing good traction out there. But I think for them to become material will take time because we are still establishing these concepts out in the market.

Understood. And also, if you can comment Piyush, on the performance of the Iron portfolio in this quarter?

Have the numbers of Iron portfolio

So Gynec has done very well for us, which includes largely iron . I think there, we are doing much ahead of the industry. So even if you look at IQVIA, the I QVIA reflection is about 13 - odd-percent growth in the Gynec segment. And so al l of our XT continues to grow in double digits. FCM has already talked about on the prescription side, we are again now in double-digit growth. So that Iron segment is now back on growth move for us.

Understood. Just one question there before I get into the international business. So on FCM, a clarification, if I take into account both the prescription business as well as the institutional business, was there any drag at all if I look at the reported domestic growth in this quarter?

It would still be about 1% drag. So ex of that would have been about 10.5%.

Okay. So adjusted for Orofer FCM, the growth is about 10.5% in India? Okay. Got it. Then on the international bet, was there any meaningful benefit of the Amphotericin B launch in Europe in this quarter? Or we expect the ramp-up to be more gradual towards the course of the year?

Yes, this is Samit. In UK, yes, we have started actively supplying. However, in Europe, as we had told you over the last call, we got the approval under the DCP and each country typically takes anywhere between 3 to 5 months for its own national approval , which we expect to start from the end of this quarter. So I think the ramp -up in the second half of the year will be much higher than what we will see in H1.

Understood. That's helpful. And a quick one on ARV and non-ARV. Now Satish sir mentioned about good growth in both ARV and non ARV in ROW, what was the ARV contribution in this quarter?

ARV would have been roughly about half of it.

Sorry, you mentioned 50%?

50%, yes.

Yes. In Canada this month, we will be executing our filing batches. So I think we continue to be on track to file towards the end of this fiscal year.

Got it. And in India, I'm assuming we are on track to be amongst the first wave of launches, as you had mentioned earlier.

Yes. That continues to be our effort.

The next question is from the line of Mr. Gagan Thareja from ASK Investment Managers Limited.

Is it possible to give some flavour on how the Sanofi Cardiac portfolio is doing for you or 1Q of this year compared to last year?

So the Sanofi portfolio, I think it's broadly similar to what we have reported for the overall domestic growth, it's been going in line with that. I think our target for Sanofi has been to grow that in line with the IPM. And I think that's what we have been there in Q1.

And on the additional diabetic portfolio that you acquired from Sanofi, is it possible to understand the rationale, are these drugs not generally not seeing a slower sort of growth given that we've had a new generation of drugs coming in for diabetes or these still constitute the first line of treatment and therefore, will you expect them to grow healthily?

Gagan this is Satish Mehta. Sulfonylurea continues to be first kind of treatment and products like Glycomet and others, they continue to have traction. If you recollect in the call so that I had probably a year back at that time, I was trying to communic ate to my equity holders that we would like to be strong in, skin care, dermatology and we would like to be strong in metabolics. As far as skincare is concerned, we took a big step by getting somebody like Sathya starting Emcutix and getting traction. And as far as metabolics is concerned, this is a hook, Amaryl which will connect me to all the major consulting physicians and diabetologists with the help of that I feel that there will be profound effect on other products and will do well. As you know, our brand Vylda -Vildagliptin is doing quite well. That's one of the top 3 brands post LOE. So with Amaryl coming to the fold, our position in the diabetics segment, metabolics will significantly strengthen and that will also help us when we go for semaglutide as and when we get to LOE. So this is plan of overall strategic thinking because with Amaryl, we get a good connect with the doctors and obviously, the same doctors are my potential prescribers to Semaglutide as well.

Okay. And was the sales force also transferred to Emcure from Sanofi for these?

All right. And is it possible to understand the contribution? I mean I understand it's early days, but it's still possible to understand how the Derma and Consumer Wellness divisions are ramping up? Any flavor would be helpful here?

Currently, we are in the investment mode. I mean, we just started a few months back. And even you know, in pharma, the gestation period is 18 - 24 months but at the same time, the beauty is we are getting prescriptions. I mean the unique products we are launching in the Derma segment and also whatever Namita is doing in Arth that is obviously very well received. But this is a patience game. It's not going to happen in a day. It has taken me 30 years to get the company to this level.

I think just to add. I think what we had guided last time is that overall, we think that these 2 new initiatives should drive about 1% or 2% additional growth in our overall domestic business. So I think we're on track for delivering that for the year.

Thanks, Vik. Very helpful.

And one more, sir, on the Asparaginase and the wet AMD product, any further updates on when you believe you can come into the market with these?

Sure. So for the Asparaginase we have already submitted our dossier to the DCGI and we're waiting to hear from them in terms of when they constitute the SEC and when it will be reviewed. So fingers crossed there. And on the wet AMD also very positive in the sense that we should be completing our clinical trial by the end of September. So whatever time it takes after that to compile it dossier and submit it to the CDSCO . So very hopeful that at least one, if not both, should get approval in this financial year.

A final one from my side, sir, you could give us the latest gross debt position for the company?

Latest gross it is around INR 700 crores.

The next question is from the line of Mr. Bharat Shah from ASK Investment Managers Limited.

Satish Bhai, it was good to hear the 5 -year journey that you outlined, which will be marked by not just new partnerships but new innovation, driving new products and geographies and is underpinned by investment in people processes and technology. So that's the session to hear that we feel that on a sustained basis, the growth will come in, so which this quarter is marked it we’ll have to wait. Just to put a little bit of scepticism on that, if you pardon me, but ultim ately, in the pharmaceutical business, sustained and predictable growth will come only from the fresh portfolio of products. The well-aligned therapeutic areas. And all of that is to be driven by new products developed through the sustained research effort. But a large part of our portfolio, my impression is more me too. And therefore, how do we aspire to remain on a continuous growth journey? Or what are the steps being taken so that we address these game on Internet behind half the business and...

Bharat Bhai can I?

Yes.

Bharat Bhai let me a step back and tell you, in 1995, when I began my journey a s everyone dissuaded me, from entering into the market and my friends from multinational s went to the extent of saying Satish Bhai you will get beaten up . Market is very fragmented, very, very competitive and you are one of last entrant. Now when I'm talking to you in 2025, the reason why we have done well is because of science, innovation, and technology. And I take pride in telling everyone that as far as my company is concerned, it is in the forefront in launching new products and we're giving new products to the industry. To give you a few examples, I gave more than 11 products in the field of Chirality. S- Amlodipine S-Metoprolol,S-Etodolac they have been doing exceedingly well. We gave Ferrous Ascorbate for the first time. We gave Ferric Carboxymaltose about which Amey asked some time back. Similarly, we have given 7 biosimilars and now Sami t just told you some time back, we were talking about Asparaginase, we are talking about Bevacizumab. So to that extent, as far the gene of the company is concerned, it is driven by science and technology, and we are doing a lot of work in R&D. To that extent. I'm very confident that going forward, my company will be in a position to bring new products because Bharat Bhai you are spot on. The competition is very intense as far as me-too products are concerned. To that extent for any company to survive and make headway, it has to focus on science and technology, and that's one area where we are committed, and we are taking a lot of steps in that direction. Samit, would you like to ad d something.

I think when we spoke about the 5-year vision internally for each of the years, we have already identified which is the product launch for which a lot of the work has already been done, whether it is filing batches or submissions. So we have very crystal-clear clarity on each of these 5 years, the one big blockbuster products. So for example, like we did mention Liposomal Amphotericin B similarly across the years, building on the liposomal platform. There are a few other products there's, of course, GLP -1s and within that, some incremental innovation that we're doing. And of course, towards the end towards year 4, year 5, there will obviously be what we've spoken about earlier and which we've honestly started efforts the whole space of ADC.

Vik, would you like to add something?

I think it's covered.

Absolutely. There is absolutely a clear vision and game plan as far as the lowest therapeutic segment is concerned. So the strategy will be clear. One R&D will drive., the second thing, we like to work with multinationals. We have demonstrated by working with Sanofi, we've got a big portfolio, something similar will happen and third part of the strategy, we'll be working at a global level to get some products like Samit mentioned about ADC or maybe something in Phase I pick them up and see whether we can develop for the domestic market. So there is absolute clarity at the senior level about the way the new products will launch in each and every therapeutic segment Bharat Bhai.

Yes, that is very heartening to know. A related question, you mentioned Satish Bhai that this 5- year journey will be marked with above average growth rate. And co uld you be a little more specific as to what is meant by that? Will it be double -digit or very healthy double-digit, what kind of growth did you have in mind? And also on the margin, make a comment, from 20%-odd that we now wait. Do you think our margins also, what kind of trajectory would hold out?

So I will break it in 2 parts. As far as the growth part is concerned, I will answer , margin part Vik will answer. As far as growth is concerned, I would like to have 2% more than the industry growth, whether we are talking about India or other markets, okay? Other markets are also very, very competitive, Europe and Canada so that will be the aspiration. If you grow by more happiness. But at least now as well, the basic objective will be to grow by 2% more than the industry growth in various markets. And regarding margin, we have been talking that there is a journey towards the desired results, I will ask him to opine on that, Vik?

Yes. So what we have guided, if you can hear me, is that from the rough margins that we've guided to for this year, we should continue the journey of increasing our margin profile by about 300 - 400 basis points over this 4 to 5-year journey, which will be driven by obviously both productivity gains in terms of our India business as well as improving our gross margin profile with the business and product mix that we will be working on in the pipeline. And overall operational effectiveness in terms of just the scale economies we will get as we continue to scale different verticals within our business.

Which means about 20% operating margins now over the 5-year period, it should be somewhere in the end of 23% - 24%.

That continues to be the goal and aspiration that we'll be working towards.

And one last thing. When do we think the INR700 crore debt on the books is likely to become zero?

If I can just add there, we had guided on the debt was that barring any M&A, that should be approaching close to zero even by the end of the current fiscal year. Having said that, 2 of our recent announcements, one was the acquisition of product portfolio for Manx, which is going to be paid for in various milestones as well as our recent announcement of acquiring the minority stake from Zuvent us I think these 2 initiatives will obviously add to our gross debt position which will probably push out our debt approaching zero by at least 1 to 1.5 years going forward. Having said that, both of these initiatives, we think, are going to be very accretive and I think its money well spent over what we have announced.

Sure. Thank you very much. And all the very best Satish Bhai and the entire Emcore team.

Bharat Bhai w e very much value your support and thanks to all for participating. And kindly feel free to reach out to us any time. We are available 24/7. We value your support.

Much appreciated.

The next question is from the line of Mr. Tushar Manudhane from Mo tilal Oswal Financial Services.

Thanks for the opportunity. Joined which a bit late so I'm not sure if you have already addressed. But just wanted to understand on th e gross margin front quarter -over-quarter, where it's a business composition in terms of geography has not changed much, but we've seen good improvement in the gross margin. If you could just elaborate on that first?

So the gross margin, I think what we indicated last time, right, it's largely driven more by the product mix in the international market. So I think you have to look at more at an annual level. At a annual level, I think what we had indicated is we expect this year to be about 50 basis points higher than what we ended last year , but between quarters, you will have variations depending on the product mix that you have across businesses.

And therapy -wise as far as the India market is concerned, of course, there's secondary data available, b ut if you could throw some light in terms of these therapies, we have sort of performed better than the industry and where we have dragged?

So I think Cardiac and Gynaec, Gynaec we have done much better. Cardiac also has been more in line. I think. Others, I think we have more and less in line in the industry which has -- what has driven it before as I talked about is some of the new launches and all which have come up.

And as far as the emerging market is concerned, where we have seen on a year -on-year basis, sharp increase in the revenue, but how to think about it on an annualize d basis for next 2, 3 years?

I think for this year, what we had indicated is that for the emerging markets, we expect to grow in high teens to 20% around that.

And again, what w ill happen to Emerging Markets when we are talking about, say, ARV and non-ARV, ARV is a function of winning the tender, so there is an element of uncertainty. So it's very difficult to predict to know what happens though the company is in a good position. And as far as non-ARV is concerned, that is also a function of getting registration in various countries. And if you get the registrations for some marquee products that we market in case there will be uptick. So I think one can as Piyush rightly said, when we talk about the base business that I mentioned some time back, normal growth was 2%, that will be the aspiration. But suppose if we get to know some of the products registered for which the number of fights are pending, there will be obviously be an upside.

And as far as, let's say, operational cost, is it going to have some meaningful increase, let's say, FY '26 FY '27, or is it more to do with like inflation linked increase?

I think it's largely inflation linked and the business growth driven.

Sir, as far as our business growth is more than the inflation, then effectively, it should help get much superior EBITDA margins as we go along right?

Yes, that is the intention.

That's what Vik was indicating.

Yes. So I meant to ask effectively that should reflect in itself, where FY '25 at least the EBITDA margin or Q1, it was similar to the fourth quarter or first quarter. So I'm just trying to ask th at when do we see that improvement in the margins?

I think what we had guided last time was that even on operating cost side, we should see about 100 basis point improvement vis -a-vis last year on account of both of these areas, a better productivity with the Indian field force as well as some of the scaling of the business and better utilization of our manufacturing facilities. So overall, as the business continues to grow healthy double digits and inflation where it is. That's w here we feel bullish that we'll continue to get roughly that 100 basis points of expansion that we had indicated.

The next question is from the line of Mr. Alankar from Kotak Institutional Equities.

Samit, you mentioned about working on an incremental innovation in GLP -1. Can you please elaborate on that?

Sure. So in terms of some of the approved GLPs, we are looking at some tweaking in terms of improving the compliance through different dosage systems and the incremental in novation within the formulation space.

Okay. And I mean, currently, our filing both in India as well as markets like Canada would be through the synthesis route, right?

Yes, that is going off patent in 2026. The fermentation route, th e semisynthetic is going off in 2028. So we'll be fully synthetic right now.

Fair enough. The other question was on the Zuventus acquisition. Now due to this acquisition, will there be any change from an operational standpoint in the acute business?

Okay. Fair enough. And the final question is more of a clarification on what Vik just mentioned. I think in the previous call, we had spoken about 150 basis point EBITDA margin expansion for FY '26. So is it 100 basis points or 150 basis points guidance for FY '26

So I was specifically alluding to the opex portion of it as 100 basis points, Piyush just mention that we also anticipate 50 basis points expansion in our gross margins based on the product and business mix.

The next question is from the line of Mr. Gagan Thareja from ASK Investment Managers Limited.

The first one is on the ARV, I believe there's going to be a retendering cycle this year, later this year. Any idea you can give us in terms of whether funding agencies from a budgeting standpoint are going to be constrained or that is not a constraint whatsoever? And secondly, Lenacapavir category now has been post the Phase III trials, even WHO strongly recommends for prophylactic benefits to take up in a category? How do you see this evolving over a period of time, do you see Lenacapavir becoming the first line of treatment perhaps in the next 2, 3 years?

First question, you take Lenacapavir, Samit will take and I will also chime in.

Yes, on the tendering, I think as of now, we haven't heard anything that there have any constraints on hap pening. I think most of the tenders are continuing as normal. So we haven't seen that impact.

And in terms of Lenacapavir, absolutely not entirely certain how long the duration will be for that becomes the treatment of choice because different countries and different agencies have to change their adoption protocol. But definitely in the medium term, it should be one of the dominant therapies as far as the ARV space goes.

Gagan, one more thing I would like to tell you, if you see the latest issue of economist, they are extensively covering HIV and a couple of constraints , I would like to flag off one as far as the PEPFAR funding is concerned to restore, but at the same time against $3.5 billion that they have been giving it has been reduced to $2.9 billion if I remember correctly. The second thing that has been happening in the Americas and in the most generous in terms of contributing to global fund, there also the funding has been reduced. So I think what really happens after couple of years as in we Lenacapavir the market. I think the product, this article also says that Lenacapavir is going to be a game changer. But the funding of global funding, PEPFAR funding, then all the governments, which will be interested in buying that will also play a very important role because unlike what is happening right now, like TLD, it is not going to be that cheap. I believe. Samit, can I say that? Lenacapavir, it's going to be a game changer, but at the same time, there will always be a cost attached to it. So we will wait and watch how it plays out. But it's technological breakthrough. Let's accept that. It's a big thing.

And is it possible to give some idea of the EU business growth ex of the bank's numbers, which I believe would have been there in the contribution for the first quarter?

Manx was quite small. It has been about $1 million to $2 million in the quarter. I think Manx will ramp up over the quarters.

And is it possible to give any idea of how you see the scale up in Liposomal Amphotericin and Tenecteplase, over the next, let's say, 2 to 3 years what sort of scale? Is it possible here? And also in the other 2 products, which are under trials for you? Any possible idea?

Sure. So in terms of Liposomal Amphotericin, like I mentioned, we have approvals in a lot of the major markets, but there are still a few big markets where our product is likely to get approved in the near future. The kind of capacity we have created and the bets we have taken on this product are pretty significant because there are 2 different facilities with large lyophilization capacities that we have installed and are ready to churn out product. So I don't see any constraints coming in, in terms of capacity. And I think the full effect of all the approvals and the max volumes will probably materialize in the next 12 months across different geographies, probably in Europe and UK and U.S. will be more near term in the next 4 to 6 months. But some of the other big Emerging Markets where the full potential will probably take 12 months.

Now the second question that he asked was regarding Tenectase and other...

Yes. I'll come to that as well. So on Tenecteplase players as well, not only are we seeing new registrations slow in for the original indication of MI, which is your Myocardial Infarction. But surprisingly, there's a lot of interest and uptake also happening, which is doctor driven from those countries for the indication of stroke. There are countries which have started picking up small volumes on a name patient basis they are seeing excellent results, and they are now pushing towards getting full registration, which will then have a log-fold increase in terms of the kind of uptake that happens. So Tenecteplase is going to be, again, in the next 18 to 24 months, a very dominant product for us. And in terms of the other 2 in the pipeline as far as clinical channel, I'm assuming you're referring to r-Asparaginase and Bevacizumab there as well the trials have been done, keeping in mind a dossier that can be submitted across all the emerging markets. So for example, for r -Asparaginase, the reference product is the EU approved product. And hence, once that approval comes through, we should also be able to file across a lot of different countries where there is a severe unmet need. So overall, across these 4 products, we see the next 18 to 24 months having a significant ramp-up.

Sure. That's great. A final one from my side, sir, Canada, is it -- is the Q1 growth sustainable for the full year?

Yes. So in Canada, I think the growth is sustainable. We had basically been guiding to sort of a mid-teens growth rate for the Canadian operation as a whole. And we're very happy with the Mantra acquisition, which continues to track even ahead of our own expectations at the time of doing the deal and some of the synergies, even at a product level being rolled out across Canada as a result of that continue to play out. So we are very bullish on continuing that momentum for Canada.

The next question is from the line of Bhavesh an Individual Investor. Yes, Mr. Bhavesh go with the question please. As there is no response from the participant, we'll move to the next. The next question is from Bharat Shah from ASK Investment Managers Limited. Please go ahead.

Satish bhai, more than a question. I just wanted to site a comment. When you were referring to the ARV portfolio, internationally and the contribution from America to the program, which is supported and you referred to the generosity, which has declined. But I just wanted to say, America and generosity are oxymoron of terms. I thought I'll just put that a little bit of a view on that. And then to a question , based on the 5 -year region plan that we have done, in terms of capital expenditure on assets, I suppose, more or days we are in place. In other words, it's unlikely that we will be incurring material capital expenditure in buying, putting more assets manu facturing assets. Is that understanding right?

I can take that question. So, what we had been guiding to is that we expect annualized sort of capex spending in the range of about INR 350 crores a year. If you look at that, roughly about INR150 crores of that goes towards more repair and maintenance capex and about INR200-odd crores is in earmarked for. Some top -up investments for capacity enhancements or product - specific type capex requirements that we have. So barring anything else. I think that's the range that you're going to see on the capex front. Of course, we will continue to evaluate and be aggressive in terms of any M&A or strategic alliance or in -licensing deals, which may have some capital allocation there, our focus areas are obviously going to be India first and foremost and some of the emerging markets to the extent that we have an opportunity to get some product both on portfolios in places like Europe, like we have recently done or Canada, we'll continue to evaluate as well. But by and large, you're right that most of the infrastructure required to cater to our 4, 5 year growth plan is already well in place.

The next question is from the line of Bhavesh an Individual Investor.

Congratulations on a good set of numbers. My question is with respect to the cash and cash equivalent as on June 30, 2025. So I just wanted the number?

Yes, INR200 crores.

Including the investment?

Yes.

So why there is no other income in this quarter then?

And one more thing , sir, I'm a user of your Emcure Aqua Oat Moisturizing Cream . And just wanted to provide an honest review about it. So it's a really good formulation and the cream does the job quite well. So I just wanted to appreciate it. And will be a consumer and also a long-term shareholder of the company. Thank you.

Bhavesh, you are going to get line extension and absolutely super packing top of the line matching the global standards in the next 2 or 3 months. And we share one thing in common. I'm also a big time fan of Aqua Oat and I also utilize the product. Ex tension, which is quite exciting. And I like it. If somebody likes my product, it makes me feel happy.

So I'm using it for the last almost couple of years. So one Derma she recommended me. So she was the HOD of KEM hospital. So she recommended me that go for Aqua Oat, it will reduce your sensitivity of the skin. So it has been a helpful cream for me. And it's the plus point of the cream is a fragrance free. So a lot of screens in the market have fragrance and alcohol. So that doesn't seem…

I mean many times what really happens, so I've seen that on some fragrance, so it goes for itching also. That also happens.

I have one package at home like whenever it gets over, I bought another one. So thank you for you and all the best for the future quarters.

Thank you as that was the last question for the day, I would now hand the conference over to Mr. Piyush Nahar for closing comments. Over to you, sir.

Thank you all for joining today's investor call. If any of your queries will remain unanswered, please feel free to get in touch with us. Thank you.

Thank you very much. This is Satish Mehta. Your feedback means a lot to me . We feel very enlightened by the inputs given. And we are committed to improve, committed to take whatever suggestions coming from you very, very seriously. And we will go to for your company with more vigor than ever before, because you give us a lot of motivation. Thank you very much.

Thank you. On behalf of Emcure Pharmaceuticals Limited , that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.