We will now begin the question-and-answer session. The first question is from the line of Mihir from Fident AMC. Please proceed.

Yes, hi. I have a few questions. The first question is, what explains the difference between external sales growth and our commission growth? So, from the 18% IPM growth, we only reported 9%. Is it a function of timing? Is it a function of higher discounts or would you like to give a bit more color of why is that the case?

Thank you for your question. See, these are the sales which are not primary sales. The primary sale is what the company sells to the stockists, and the reports that you get from the market research companies is secondary sales, which is from stockists happening to the market. So, these are stockists out data. Therefore, there will be always a variance in terms of growth or even the value which is reported between this report and any pharma company in the industry. These variances should not have been so higher. We are looking into it as to why this has happened. But sometimes it happens in terms of your statistical, I will say, consideration of some geographies, which may not be so very well represented by Jagsonpal, but yet, when you do a universal count of the representative universe of stockists, you try and statistically correct that. So, sometimes that happens, which I have seen during my last 30-years of experience in the pharma industry. For many companies, it will happen often.

Got it. So, let us say, would you realistically say that a mid-to-high teen growth for Jagsonpal pharma on the revenue front is something which is likely? So, when you say you are going to outgrow the market 1.5x, is it on the secondary sales front? Is it on revenue front? How do you actually go about entering it?

No, our belief is that both these sales, primary and secondary, ideally should always move in the similar direction and similar line. However, there will be always a buffer of inventory, which will also be built in between. So, we continue to maintain our guidance that our objective will be to breach this 1.5x of our promise as compared to the Indian pharma industry.

Got it. One more question which I have is, last four months Jagsonpal Pharma seems to have grown materially faster. What actually has changed in the last three, four months or maybe it would have started a few months back, but the rewards of which has been reflected in the numbers at least for the last four months and do you see this trajectory kind of continuing or accelerating as we move into FY27?

So, pharma companies have a large basket of brands. You have to carefully choose which are those brands which you would like to build and have a focused marketing expenses as well as marketing focus on those brands. So, I think our selections have gone right. That is one part. The second part is that the delta that these markets are also delivering for the other companies is also good. So, I expect this to only accelerate from here. The second is, of course, we have done small little things which are more technical in nature which I cannot be discussing on this call, but I think overall we have been able to bring down our attrition, so, team building is happening. We are able to strengthen our leadership. We are doing a lot of training and coaching programs to build the competencies and capabilities of the team and I think some of these steps are also slowly and gradually translating towards the outcome.

Got it. And my last question is on Aequitas. So, it seems like you have given a very aggressive guidance of almost like a Rs.10 crores EBITDA from the current Rs.50 lakhs EBITDA which they reported in FY26, can you give a bit more colour on how do you accelerate EBITDA growth from Rs.50 lakhs to Rs.10 crores? Does that EBITDA also have some component of let us say older promoter salaries which kind of gets weighed off and how will the progression be? Will the Rs.10 crores EBITDA be on a current Rs.55 crores or do you see acceleration in top end growth as well kind of driving a lot of incremental EBITDA margins going forward?

So, this is primarily a brand asset which has a very good reputation in the hospital pharmaceutical supply business. Second piece is that the kind of asset that we are talking about is the people asset which is very good, very lean and thin and very focused on the corporate hospital chains where

relatively you are able to get better margins as compared to the government institution accounts, whether it is public sector or whether it is state or central government. And therefore, the quality and the trust that we got from this brand on Jagsonpal should help us cross-sell the brands. So, some of the Jagsonpal growth engines will also get a fresh entry into hospital which will give us incremental value which we expect to directly flow into our EBITDA. Second piece which I would like to clarify, since you mentioned it that the salaries will go away, but those promoters will continue to serve us as you have seen that we acquired only 85% and 15% still continues to be with those promoters and they will continue to drive the business which they have been doing. Third, very value-accretive thing that we are planning to do is some of the new age brands which have very high usage in terms of value per patient as well as in terms of volumes per ICU bed. Those have been identified very carefully and we are ready to launch them and hopefully some of them will see very large value accretion happening over the next two to three years' time. And therefore, the window which has been given to you is two years and Rs.10 crores.

Got it. Thank you and all the best.

The next question is from the line of Sajal Kapoor from Antifragile Thinking. Please proceed.

Thank you for taking my question. Hi, team, good afternoon. I have three questions. First is, what will be the earliest evidence that Aequitas integration is working? And second is as you build the hospital business, what is the hardest capability to develop? What has surprised you the most since you acquired Aequitas?

To the last question, there has been no surprises. As you know, Sajal, that we are not a very, very large organization which can afford to take decisions and ignore few of the shortcomings which might be there in each business. So, therefore, a lot of due diligence has been done and accordingly the value fixation or enterprise value has also been decided. So, there have been no shocks or surprises for us post-acquisition. Second piece is, you asked me the evidence of first instance of success for Aequitas. I am pretty sure about it that numbers will speak maybe in the next two quarters. And you also asked, I think the second question was, what is success, what is the challenge for running a business? You all know that, obviously, most of these hospital teams are also run by the private equities and there are a lot of pressure in terms of top line and bottom line growth for them also. So, they are hard negotiators. So, I think one skill which we need to learn as a team is how do we have a good proposition for the hospital which is making both the sides win-win. #2 is, it is a lean and thin team. You have very, very small 49-people on board which are completely focused on these corporate hospital chains. But most importantly, they bring with them on table very long and very strong and deep relationship with the hospitals, be it with the doctors, HCPs, or be it with the nursing staff, or be it with the administrative and purchase teams. So, I think that is going to be a lot of value

addition for us also in Jagsonpal to learn from them and grow on that. So, it is more of a piggy ride for some of the Jagsonpal entry into hospital, besides the value that they have been already delivering. I hope I answered to your satisfaction, but I am open to further questions.

Sure. That is helpful, Amrut. I have got more questions. Perhaps I will rejoin the queue and thank you.

Thank you.

The next question is from the line of Ansh from Capital One. Please proceed.

Congratulations on a great set of numbers, sir. So, I just had two questions. So, one, can you mention what would be the size of Maintane as compared to MAT? And what point does it become large enough to change the portfolio weighted growth rate, sir?

Sorry, come again. Can you repeat your question, please?

I am sorry. Can you specify what would be the MAT value for Maintane? And at what point does it become large enough to change the portfolio weighted growth rate?

If I had to give you the numbers, I will give you in terms of percentages so that our internal numbers are not fully in public in terms of brand value. I can tell you what is coming in the public domain, which is Pharmarack numbers, which talks about a value of close to around Rs.46 crores is what it is showing in Pharmarack. Out of which, if I give you a breakup, Rs.34 crores is Maintane injections and Rs.13 crores is Maintane tablets. In terms of growth on both the SKUs, we are ahead of the molecule market growth. Second piece, I think if I have understood correctly and deciphered correctly, your question is whether it will change the portfolio picture. So, I think it is a very big brand for us. It is, I think, one of the top three brands for our company. And therefore, if this brand fires well, it does well. Obviously, it is extremely value-accretive and extremely good for the organization, because our priority focus continues to be in the Gynecology.

Okay, sir. That is helpful. And so, what would be the PCPM, sir, for this quarter? And I am assuming this is what is leading our guidance, correct?

Exact PCPM numbers, I am sorry, Ansh, I would not be able to give that, but you can safely assume from our report because you have the top line and you have the number of people. But however, across businesses, there are different sets of PCPMs because we have four different verticals into prescription business, which is dermatology, which is gynecology, which is orthopedics, and we have

GPCP. So, each vertical has a different PCPM. However, we are targeting upward of 2,50,000 in terms of people productivity.

Okay, sir. That is helpful. Thank you, sir.

The next question is from the line of Neelam from Perpetuity. Please proceed.

Thanks for the opportunity and congratulations on some good set of numbers. My first question is on the Aequitas acquisition. So, could you help us understand what is the current product profile, what are the key therapies, leading products, and the mix between branded products and institutional tenders?

Institutional tenders? Okay, I will give you the mix of products. So, primarily, since it is a hospital business, it is an ICU usage portfolio, which comprises predominantly antibiotics, including the latest generation antibiotics. Number two would be some of the volume enhancers. Number three would be some of the injectables which are used in perioperative usage, including a bit of anesthesia, a bit of nutrition, and the four species around the pain reliever and a little bit of anti-acid, which is used inside the hospital post-operative for the patient. So, these are the four broader buckets under which the product lies today. What was the second question, Neelam?

Yes, I just wanted to know the mix between branded products and institutional tenders?

So, all of them are branded. I mean, since we do not participate in the government tenders, it is a purely corporate hospital chain pharma business.

Understood. And what would be the product concentration look like, like top-10 products, how much does it contribute to the Rs.53 crores sales?

Top 10 products would be anywhere upward of 50%, half of our total sales, and similarly, close to around 50-hospitals will contribute majority of our top line out of the total 1,000-hospitals that we cover. So, we have a lot of headroom to grow.

Got it. And in terms of Jagsonpal's existing products, cross-sell opportunities, could you identify which products would be most suitable for hospital cross-selling?

From the Jagsonpal side?

So, obviously, all the current existing baskets will be primarily looking at our power brands, which I think in the earlier question also I answered. So, obviously, all our prescription brands which have very good equity outside the hospital, we would like to also have our presence inside these corporate hospitals, starting with Indocap, Endoreg, Maintane, and also Eukroma and KTC, all of them.

Got it. Okay. And generally, hospital businesses have longer working capital cycles. So, could you give us some sense around how is the working capital cycle for Aequitas currently and how are we looking at the overall Jagsonpal's lean working capital cycle going forward with this acquisition?

Yes. I mean, obviously, the productivity is also bigger there. The volume and ticket size is also bigger. Productivity is much larger in the hospital segment. So, the flip side is that how do you manage your credit cycle? So, we have a strategy in place, and we will be trying to align our strategy along with the Aequitas current credit terms that they have.

And Neelam, to add on to that, obviously, we cannot work with the same working capital cycle in Aequitas as we do in JPL. So, therefore, you will see that, a), it is a subsidiary route and not a BTA route that we have adopted. So, we do not want to mix up the two businesses in terms of practices. Both will have their own working capital cycle. Clearly, Aequitas working capital cycle is longer than JPL. We intend to improve it, but it will not get aligned with JPL.

Understood. Okay. And sir, lastly, on our indication of Rs.10 crores EBITDA by year-two for this business, could you give us some roadmap in terms of what kind of scale can we achieve in this business? What margins are we targeting in the next two years? And how much of it would be probably Jagsonpal's cross-selling? And how much would be organic growth of the existing business?

From Aequitas alone you are talking?

Yes.

Aequitas alone, we are looking at around Rs.100 crores of business within two and a half years' time, starting from now. So, we are looking at '28, '29 as the FY. And I think we have given that in the board deck as well. And we are certainly targeting upward of Rs.10 crores of EBITDA. So, these are the two numbers that we are going to change here.

Got it. That is helpful. Thank you so much.

Hi, sir. Thanks for the opportunity. My question is related to Maintane brand. Basically, if I look at the growth profile of Maintane, most of our company's growth has been coming from that molecule itself. So, how do you look at the concentration risk here? And how do we mitigate it? And similarly, what are the other products you think have the potential to scale up like an Indocap or Maintane in our current product basket?

I am not able to fully decipher it. The brand is doing well internally for us. But, if your question is that it is going to have a resounding effect on the portfolio? Then of course, yes, the way currently it is performing. But other brands are also doing reasonably well. So, you look at Metadec, you look at Lycored, you look at Equirex, you look at Divatrone, all the brands, including Endoreg or Pru. These brands are also doing better than the market for sure. However, as I said that these are only small steps. The growth is yet to pick up and we expect that this momentum will only get stronger in the coming quarters, because these are all prescription brands. And growth of prescriptions over a period of time, it always depends on the new patient's journey, stickiness to the prescription which doctors prescribe. But most important is how do you get the brand loyalty from the prescriber community itself.

Okay, sir. Thank you.

The next question is from the line of Vansh Gupta from Prescient Capital. Please proceed.

Hi, sir. Thank you for the opportunity. So, sir, can you just please share what are some of the key hospital chains in which Aequitas is currently empanelled, and that you believe will be key drivers of your growth that you envisage for the next few years, and also the geographies in which these hospitals are located?

This is Pan India presence. Predominantly, all the top corporate hospital chains in our deck that we shared yesterday, it contains the names of those hospitals as well. The top six hospitals are, of course, Max, Manipal, Vedanta, Cloudnine, Rainbow, and also, we have Aster DM as well.

Right. And so these are the top customers from which you are envisioning the next two years of growth from Aequitas, right?

Yes.

Come again, sorry.

So, in the prior quarters, I believe the management had hinted at some first-in-India or breakthrough molecule pipeline. Can you please shed some light on the developments on the same if you have any?

No, we never mentioned this. I do not recall this in the earlier call if it has been discussed. But obviously, we are looking at some of the opportunities wherein we are able to get first-in-India opportunity in the available basket of our therapies, which is gynae, ortho or derma. If we are able to get first to launch opportunity, great. Or otherwise, at least in the first wave of launch, which may be five companies or select 10-companies only, we would like to be part of that.

And are there any such products under development for this year, sir?

This quarter, sir, we have been able to launch one product, which is among the first wave of launches. We expect one more such opportunity in the current quarter to happen.

Got it, sir. Sir, just for the growth that the company is envisaging for the next two years, not just the Aequitas portfolio, but the organic growth, can you please shed some light on the key brands that you are focusing on that you believe will propel the growth for the company going forward?

See, I am extremely positive on one of the largest brands in our portfolio, which is Indocap. It has a lot of niche and a lot of scope and opportunity, both. So, we will be trying our level best to see that this brand exponentially increases in terms of its current versus its recent past I would say. Second, of course, Maintane is already doing better and we expect it to continue to do better. The third brand that certainly is on our radar to gain momentum is Endoreg, which is going to be our mainstay in terms of our gynecology prescription basket currently. And on the dermatology side, obviously two brands, which is Pru and Eukroma. That is what we are looking at.

Got it, sir. That is all from my end, sir. Thank you so much.

Thank you.

The next question is from the line of Sajal Kapoor from Antifragile Thinking. Please proceed.

Yes, thanks again. It is a bookkeeping question, maybe related to working capital. I see a pattern. What execution habits changed after FY24 that unlock such a step change in working capital? I mean, working capital has improved dramatically since FY24. So, I am not taking hospital acquisition into consideration obviously. I am just trying to understand what has changed in the operating system to make such a dramatic improvement in net working capital?

Our practices now are in line with the best in the industry in terms of collections. That is what we have kind of ensured. And therefore, it is reflecting in the quality of business. Fundamentally, it is all about debtor collection that makes the difference in working capital. I mean, all others are important, but collecting money on time is what really matters as far as working capital is concerned. And here now we are in line with the best in the industry.

No, I appreciate that, Manish. See, the quality of business was good in 2024 as well. So, I am just looking at the screener data. You may be tracking it slightly differently. But take the rate of change as an example. So, the debtor days were 19-days in 2024 and they are largely similar; 2025 was 18- days. 2026 was 22-days, so, again, in that ballpark of 20-days, give or take. Inventory days has improved from 68-days in 2024, we dropped to 51- days. So, that is positive, thumbs up. Payable days, I think, has gone worse actually. So, that is, I mean, again, 35-days versus 40-days, same ballpark. The material improvement that is happening is happening in the cash conversion cycle as a result of working capital days. So, working capital days used to be 52 in March '24, that dropped to 9-days in '25 and 11-days last year. That is a significant change.

So, two major changes which Sajal you highlighted is in terms of value. You look at it, value contribution is primarily from the part of inventory control.

Say that again, Amrut. I did not quite catch that.

The material change is primarily happening because of the inventory control. While our collection cycles have continued to be same in spite of organically growing the business, yet our collection cycles have only become stringent. And number three, of course, there is a debtor control, which is much, much better in terms of any overdues in the market. And the last piece that possibly is working for us is creditors I think.

We are paying on time. I mean, now the very clear diktat is same day payment as per due date. There is not a single day extra. So, Sajal, I think if you look at the data, our larger dip in working capital came between FY22 to FY24. Cash conversion days dropped from 59-days to 22-days. Thereafter, yes, it has gone down, but now numbers are so small that they feel extrapolated, but actual real benefit came between FY22 to FY24.

And Manish, is the digital transformation you took about a year or maybe two years back, is that also contributing, because it may have been a paper-based system, manual tracking, and now we have better analytics and digitization is kind of yielding the results that you might have expected?

Sajal, I will partly have but Amrut respond to this, but my own experience is you cannot attribute improvements to single factors in the kind of industry we operate in. There are hundreds of initiatives

going on across all the firms, and each one of them matter. Individually, there is no one which is bigger than the other. Every initiative, as Amrut mentioned in his speech, these are all things that have been initiated, digital is one of them that also is contributing, but there is no singular parameter which has dramatically changed our way of doing business. Amrut, do you want to add?

No, I think, Sajal, it is very difficult to list out, but there has been also a classification of importance of specialty, therapy, which molecules are delivering more delta in terms of market, how our brands are tracking, what is our strength in which specialty, what should be the increased frequency of doctor visits, customer visits, in what calendar cycle we should be doing it, what will be our order cycle, how do we split up the orders so that there are no bend days at the end of any quarter, so you have split up order for each stock case. So, a lot of discipline has been worked upon. These are all granular, very small little things, Sajal. But eventually I think these will create a very strong foundation for the organization where the growth is profitable and sustainable growth.

Understood. That is helpful. Thank you so much and all the very best.

The last question is from the line of Anubhav Mukherjee from Prescient Capital. Please proceed.

Sir, I just have one question. The gross margin profile for Aequitas seems to be low for a completely branded business and also much lower than our business. So, can you share some colour on why is that?

For a hospital business, it will be like this. The margins will be much thinner versus a branded prescription business, because there you have doctors choice towards or buyers towards a particular brand due to its name, image, quality associated with it over a long-term use. But in hospital settings, it is more than the brand, it is always the price that comes first. Obviously, brand becomes number two there. So, largely if you look at, all the large organizations will have similar kind of quality, all the large companies and good companies, but what makes the difference in terms of which brand they will have choice to stock would be the price. And therefore, your margins always come under pressure while dealing with the corporate chains. So, you cannot have a comparison between these two business models. They are independent. As Manish has said, this will continue to operate as a subsidiary. We are making efforts to improve the gross margins as well with some identified products where you are able to charge a big premium from the market being a little more innovative, being a little more novel in terms of your entry point. I hope it answers partially to your question.

This will happen. So, one is, of course, productivity increase will continue to be our objective. But, at the same time, we are looking at a product mix improvement. So, the products which will have higher gross margin, that is where we are going to be more aggressive. That will be our primary purpose. Number two, we have already pre-identified and pre-populated some of the innovative products where you have a differential delivery or a differential, I will say, entry point where you will be able to charge a little more premium as compared to your current market. And therefore, in the longer run, I feel slowly and gradually these gross margins will also go up. Now, it all depends on how quickly we are able to unfold it and execute it on the field. So, this is too early. I think this is not even the first month. I think we should be able to convey to you more clearer in the coming quarters.

Got it. Thanks. That is all from my side.

Ladies and gentlemen, that was the last question for today. I now hand over the conference to the management for closing comments. Over to you, sir.

Thank you, all participants, for your valuable questions and engagement. We appreciate your interest in Jagsonpal. Should you have any further queries or any requirement of additional information, please do not hesitate to contact our investor relationship team at Go India Advisors. We remain committed to engaging with you all, fostering transparent communication as we continue advancing our objectives of creating value for our stakeholders. Thank you once again for your participation and wishing you a very good evening.

Thank you. On behalf of Go India Advisors, that concludes this conference. Thank you for joining us and you may now disconnect your lines.