Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. Our first question comes from the line of Hrushikesh Vrajesh Shah with Alchemy Capital. Please go ahead.

Hi. I hope I am audible.

Yes.

Yes. Congratulations, sir, on great set of numbers. Sir, my first question is when we look at emerging market EBITDA margins over the last year, we have seen improvement sequentially and yearly. But now when we look at Q1 FY27, it has gone down from 20% in Q4 FY26 to 14% in Q1 FY27. So, what would be the reason for this?

Yes, hi. Thank you, thank you for your question. So historically, if you look at emerging market business, H2 has always been strong, right? So, we H1 is always been relatively on the lower side. First time, if you picked last four quarters, first quarter last four years, this has been the strongest quarter that we have, we have delivered, you know, from the emerging market business. In fact, last year first quarter our EBITDA was in a single-digit, a lower single-digit percentage. So, if you see a Q-o-Q comparison, maybe you'll see that's little dip, but going forward if you look at the whole full year picture, I think we what we guided for about 18% to 20% EBITDA margin on emerging market, we are quite confident that we should be able to achieve that 18% to 20% EBITDA on the emerging market side.

On a full year basis.

On a full year basis.

Got it. Sir, second question is on the branded generics and this time we have not seen a growth in that segment. In fact, there is a de-growth of 2%. So, do you think we'll come back in that segment as well?

So, I think, if you see the growth from INR8 crores it went to INR40 crores in a one year, right? So that was almost 5x growth that happened from '25 to '26 and '26 to '27. So, this quarter, the focus has been on the profitability than on the sales because we've reached a sales number where it's not very difficult to get our sales number above say INR60 crores to INR70 crores as we speak.

So, the idea is to now how we can how we can get to INR50 crores to INR60 crores sales number with good 35% to 40% EBITDA number. So that has been you'll see the it's kind of little moderated, but from Y-o-Y basis, do we expect that growth of 30% to 40% on branded generics? We are confident of achieving those numbers. But as I said, the focus is on the profitability than the sales. The last year was focus was on the sales, that's why that's why you saw INR8 crores to INR40 crores jump, 5x jump. So that's a little change in strategy from this quarter onwards on focus is more on a profitability.

Got it. Sir, one last question on bookkeeping side. So, if we look at has there been any restatement in our numbers for June '25 quarter? Because if I look at FY Q1 FY26, this year it is showing that there is other income of INR3 crores and when you look at the numbers that were stated last year, it is showing other income of almost INR9 crores. So, is there any change in this?

No, I think there is there is just there is no change in policy, but earlier I think mainly the foreign exchange fluctuations was part of the other income what you are saying. So, which we have shown separately downside. So, the other income what we are reflecting today now, it includes the F-Ex.

Okay.

The foreign exchange fluctuations which was earlier shown above. So that is the only change. There is no change in any policy or restatement or anything. It's just the presentation that has changed. Okay. Moving forward, this will be on the same line.

Okay, got it. Thanks. That's all from my side. Thank you, sir. All the best.

Thank you.

Thank you. Our next question comes from the line of Sidharth Negandhi from CWC. Please go ahead.

Hi. Thank you for taking my questions. Two things. One, there's been a sharp jump in the number of ANDAs in pipeline for you. So, is that essentially to do with a bunch that you acquired? That is question number one. Question two is if we look at things sequentially, you essentially declined on gross margins and that is flowing down right to EBITDA and then PAT, right? Now that seems to be driven by a higher growth in regulated markets versus emerging markets for you is the assumption. On a steady state basis, where do you see your gross margins settling up? Yes, those would be my two questions.

So, yes, on the ANDA, yes, there has there has been some acquisition that have happened and as we previously guided and discussed, wherever we see opportunity which fits in our sales and marketing strategy, we continue to either develop or acquire, right? So that's been our strategy and it will continue to be our strategy going forward. So that's why you see the ramp up

happening on that side. Having said that, there is also a jump on our CDMO, CMO business, number of products that we have on our CDMO, CMO as well. So overall, the overall pie of products has also significantly expanded from the previous year that we look at it. On the one second, on the gross margin basis.

No, so one, I would say that a sequential comparison is a little unfair comparison because in our business H2 is always very strong. But even then, if you compare Q4 of last year with Q1, on the top-line basis we are quite comfortable, we have achieved that. Even all the margins are very good. In fact, as of the March quarter, there was another income element of almost INR17 crores, which I think was . So, there's a little bit of restatement in terms of now we are showing it in a below the line other income. But otherwise, even sequentially we have grown, which has never happened before.

Okay, got it. Sir, just one concern. Even if I look at the other income of INR14 crores last time which you've shown this time at INR2.8 crores, right? Outside of that also at a PAT level sequentially at a EBITDA and PAT level, there is a an absolute and a margin decline, right? So just wanted to understand. Even at an absolute level, there is a small decline. So, what you're saying is H2 is better than H1 and therefore that sequential comparison is not always the right picture?

Yes, Sidharth, just to add what Sanjay was saying. I think what you're seeing is last year there was a huge F-Ex, foreign exchange fluctuation was there in the last quarter, if you remember. It was almost INR14, INR15 crores of foreign exchange fluctuation, which this quarter is zero practically. So that is why we are seeing in absolute terms you are seeing some dip, mainly and solely it was due to foreign exchange fluctuation.

Clear. And just to understand in terms of augmenting the commercialization capabilities, now that there is a sizable portfolio, could you give us some color on what are the initiatives you're taking to augment your commercialization capabilities given that there is, you know, there is a lot of ANDAs that you have which are which are yet to be launched? Yes, if you could throw some color on that.

So, if you look at our business, the business has specifically a US-driven strategy, right? It has four different ways how the products are being sold. One is our Zoraya platform, which is our front-end company which sells product on our own label. Amerisyn, that are another a subsidiary which is specifically designed for all the government businesses. We have B2B business where our own ANDA products are being out-licensed to other pharmaceutical partners who in turn sells on their own label, where it's our product and they sell it on their own labels. And the fourth is our CDMO, CMO vertical, right? Where not necessarily the product belongs to us, but we either make, develop, commercialize, there are various ways we engage with our partner on CDMO, CMO side.

So, these are the large at macro level fold POS, Point Of Sales for us, you know. So combining all the ANDA portfolios that we have, one there's a good probability one ANDA could be going in two different directions. right? It could be through our Zoraya platform also as well as it could be our Amerisyn platform as well, right? So, whatever that pipeline we have on the ANDA, it's all commercially mapped. Lot of all the products that we you see either are in the pipeline or they are approved ANDA, we already have a commercial partner on, right? So, nothing is where -- no product is lying there in our portfolio which is approved and we don't have a commercial strategy mapped out. So that we are very, very clear from day one that anything that we take, either through our own development or on acquisition route, commercial strategy is well defined and mapped. Lot of, all the products that you see either are in the pipeline or they are approved ANDA, we already have a commercial partner on, right? So no product is lying there in our portfolio which is approved and we do not have a commercial strategy mapped out. So that we are very clear from day one that anything that we take, either through our own development or on acquisition route, commercial strategy is well defined and mapped.

Sidharth, just to add, if you just want more clarification, you please compare net profit after tax and please ignore the other comprehensive income because it is just a translation disclosure. You get my point? So, then your margins and everything will look to be in sync even on a sequential basis after considering that there is no foreign exchange fluctuation income in this quarter, which was INR14 crores in the previous quarter.

Clear. Thank you for the clarification, Deval bhai. Congratulations to everyone on a good set of numbers and all the best.

Thank you.

Thank you. Our next question comes from the line of Pranav Chawla with JM AMC. Please go ahead.

Am I audible, sir?

Yes.

Yes. Congratulations, Swapnil, on a good set of numbers. Swapnil, I just wanted to get some understanding. We have launched close to seven products this quarter. We have not seen the same quantum of a top line growth if I just look on a sequential basis. Has there been some back-ending when it comes to launch during the quarter? So do we continue to expect Q-o-Q improvement in your regulated market business going forward for the rest of the fiscal?

Yes, hi, Pranav. Thank you. Yes, there have been launches but this quarter launches were not significant that it will contribute meaningful on the top line, add meaningful contribution, right? So yes, multiple launches are planned in this quarter, next quarter, and the remaining last quarter of the year.

I think I will stick to our guidance what we have given for the full year and in couple of quarters if that needs to be revised for whatever reason, we will discuss on that part. But right now, I think we are quite confident on what we have guided for.

Got it. Sir, and if I look at our operational profit for this quarter, it is been pretty strong given the fact that launches will continue to improve from here on. Do you think you will end the year with a better margin profile than what we have ended this quarter? Given the fact that 2H is actually better for us?

As I said, we will stick to our current guidance.

Got it. Fair. Thank you, Swapnil. That was it from my end.

Thank you. Our next question comes from the line of Parth Sodha with Trinetra Asset Managers. Please go ahead.

Am I audible? Hello?

Yes.

Good evening and first of all thank you for the opportunity. So my question is on sterile injectable project still has about INR100 crores of IPO proceeds yet to be utilized. So could you provide any update timeline for commission and commercialization?

Yes, so sterile injectable project is as we said, I do not know if you have followed our recent change of object in terms of how we intend to use our IPO proceeds? So we have scaled down little bit on the sterile injectable side of the business and utilized the proceeds towards expanding our capacities on oral solid sides both at US as well as India. We strongly are going to look at sterile injectables and create similar differentiated portfolio and business model on that side as well, but that has been pushed to later half of this year from the execution standpoint.

Just to add, I think this is subject to the shareholders' approval which I think is pending, it is in process. So we are going for this change in object.

Interstate change in object or utilization.

Sterile we are going with a small pilot project. We are not saying no, but initially we are going with a pilot project with the reduced cost.

Got it. That's all from my side. Thank you so much and all the best.

Thank you.

Hello, sir, and congratulations on a good set of numbers. I just wanted to know how many products have we commercialized from our Apnar facility, which are transferred from the US facility, right?

Yes. So that's all in the process, right? I mean it is you still have to take batches, you put it on the stability, file it and FDA approves it, right? So, it us everything is in the process. So far we have commercialized about six products from Apnar facility. To give you a perspective on the scale up of Apnar, we produce in this quarter, we produced about 30 million units, close to about 3 crores unit at Apnar facility. And we have 18 products mapped that includes the new launches as well as some of the products that we want to move from the US side to India side. So, the focus is on the launches right now. I think the larger focus on portfolio rationalization will start from next year where we will see which facility will continue to manufacture for next three to five years, whether it is required to be in India or required to be in US. Plus, there have been news of certain tariffs that probably can reflect. So, we are keeping a wait and watch approach. But wherever we see a significant cost advantages, we are moving them to India as we speak.

Right, sir. And sir, on both your regulated markets and emerging markets, what kind of growth are we expecting for the next one to two year and what sort of margins do we plan to make sustainably?

So, if you look at our portfolio and what we have currently mapped in terms of approved ANDAs, products that are in pipeline, some of quite a bit of are already filed, are waiting for approvals, our CDMO, CMO vertical and our emerging market filings. So we feel in about three to four years that's a solid roadmap for us to achieve INR2,500 crores to INR3,000 crores kind of a revenue with what we have currently in our pipeline. We feel confident in terms of achieving those numbers with similar or slightly better profitability that's out there. And whatever that we will probably be able to do in next couple of years, that can further enhance. But as we speak today, I think in three to four years time frame INR2,500 crores to INR3,000 crores revenue is what we are currently comfortable in terms of sustainable growth from where we are today.

That's from my side. Thank you so much.

Thank you. Our next question comes from the line of Smit Doshi with Okane Capital. Please go ahead.

Yes, am I audible?

Yes.

Yes. So just I have two questions. First is with regards to that your mention of Chhatral plant for European Union. I just want you to repeat that thing. Actually, not able to understand one

that thing. And second thing is with regards to what lead to your decision to change the IPR proceed use from sterile injectable to oral solids? So I just want to understand your rationale behind that?

Yes, hi. Thank you, Smith, for your question. So, I'll take the rationalization of sterile to oral solid, right? So, if you if you see the pipeline on our oral solid both on the CDMO, CMO as well as own product is growing leaps and bounds from where we were last year to what we are today. In fact, Apnar acquisition was also not planned, it just came at a value that we could not have refused, right? So once that comes in, then maintenance of facility, increasing a facility, making sure that there's enough capacity and capability available for our oral solid portfolio to grow, sustain and create a meaningful opportunities around it, right? So, for all this means, of course, the capacities are needed. We have to create a new production lines, existing production lines we have to change equipments to have a higher capability and capacity. So, there are lot of things that have happened, right? So that's a strategic rationalization as a management we took a call and we thought that this could be a better use of our proceeds than creating a completely new greenfield facility and then wait it out for it to scale up and create the opportunities for us. Again, as I said, that's still a good part of our strategic focus, not that we are going away, but this is something we feel that can generate quick, immediate next two three to four five years kind of revenue generation what we anticipate it to be. So that's a strategic call as a management that we have taken.

So, what I'll just said, if you see the change in objects and the statement explanatory statement that we have appended with the general meeting agenda, you see we are now starting a pilot facility which is a little scaled down but we are entering injectables in US in a with a long-term strategy. This is just realignment of our end-use proceeds knowing that INR100 crores is available, what can give me the most optimal utilization in terms of return on investment? That was the pure idea. I think your first question was on PIC/S.

Yes, so PIC/S we've got a PIC/S inspection done at a Chhatral facility in Ahmedabad. There we make oral solids, injectables and liquid. That will enable us to give us access to multiple markets that we are currently not able to access. Markets like South Africa, Mexico, Vietnam and a couple of other good lucrative markets.

Okay, okay. And with regards to that emerging market business, sequentially your margin is down from 20% to 14%. I understand H2 would be heavy, but on the GM level, gross margin level, is there any difference between quarter four and quarter one? Because I understand H2 would be heavy, so fixed cost absorption would be much higher, but on the GM level what is your view? What is your view?

Please understand there are two things. One is H1 versus H2. Second is also in a typical quarter what is the product mix, what are the costs that we've incurred for a typical range of products. So there multiple new registrations which will come into effect this year. So as Swapnil guided overall 18% to 20% for full year basis, so I think for this emerging markets it would be a better yardstick to look at us on a full year basis and we are quite confident, that's what it says so.

Like while we are on the subject.

I think gross margins have improved as compared to the Q4 by 1%. GM, gross margin is more.

Got it, got it. Thank you, so much and congratulations for the good set of results. Thank you.

Thank you.

Thank you. Our next question comes from the line of Umesh Laddha with Ambit Capital. Please go ahead.

Hello, am I audible?

Yes, yes.

Yes. So sir, I just wanted to know that when can we expect the filings to begin from our Zoraya facility? Then what is the current utilization of the Apnar unit and what is the revenue contribution from that unit? And lastly on the capex front, could you guide could you give some guidance at least for next two years like what our capex would be and even for FY27?

Yes, so I think we don't have any facility under Zoraya. So I couldn't get the question right, but from Apnar the utilization right now is close to about 80%-90%. But large part of utilization today large you can say large Yes, large part of utilization is also going towards product qualification and launch as well as there's a commercial revenue coming in, right? So, the work is going on both the direction like new product qualification and launch, product filing from that plant and commercial business. So, we are easily operating at about 80%- 90% of our capacity in terms of production capacity, not from a revenue standpoint because there's lot of filing and qualification is happening. In terms of capex you can.

Capex what we have planned is '27 we have planned almost INR100-120 crores of capex across all the subsidiaries taken together. These are majorly we are increasing some capacity in the oral solid as Swapnil earlier said and starting up the injectable pilot plant. So there is no major, major capex specific to a facility.

I think next year also you can take a minimum INR60 crores to INR75 crores run rate.

Correct. So, Zoraya should get operationalized from September, October of this year and similar time frame is also for Amerisyn. So, they both our strategic initiatives will commence operations around the same time.

Got it. Thank you.

Thank you. Our next question comes from the line of Divyam Ketan Doshi with 9two3 Capital. Please go ahead.

Hello, sir. Am I audible?

Yes, you are.

Yes Divyam.

Yes. So, congratulations on the wonderful set of numbers. I just wanted to know that you had mentioned that emerging markets is now cash flow positive. So can you actually share in rupee terms what how much cash did it generate and so if we can know that it is a meaningful contributor or barely positive?

In this quarter we have generated almost INR18 crores of operating cash.

INR18 crores, right?

INR18 crores of operating cash, yes.

Okay. And also I wanted to know how big could the EU opportunity realistically become in the next potentially two three years?

Difficult to gauge on that side, but we are actively filing products, we are doing lot of work with our approved portfolio and product that are under stability. We have close to about 100 and 120 products that will be filed in this markets over next year or so. So, we are quite decent pipeline. Revenue number we don't know yet and I think it is too premature to kind of have that mapped right now.

Okay. And one final question that you had mentioned that you have been wanting to launch products with potential NDA approval in the USA, which is a bit different and expensive path from the ANDA generics business. So, is there any specific product in that pipeline today or it's just a thinking in process?

No, so we have opportunities that are mapped, that are ongoing. Would too premature to comment on it right now, but we have quite number of products that would fall under that category.

So that doesn't include any NDA products as we speak because the approval of those products are not in our, something that you cannot predict, right because of it there are lot of moving parts, a lot of factors associated with it. So, whatever that we've guided for is something that is 100% visible for us in terms of what we can achieve. The NDA products comes in, gives us that boost that we will see at that point of time. But that guidance doesn't include any of those NDA opportunities that we are working on it today.

Okay, sir. That's it. Thank you so much and all the best.

Thank you.

Thank you. Our next question comes from the line of Aniket Madhwani with Steptrade Capital. Please go ahead.

Yes, hello, sir. Am I audible?

Yes.

Yes. So, there is this news coming up from US they are planning to impose tariffs on the generic medicines they import. So, if we consider a scenario that actually takes place in 2028 as they are planning, so what are views on the market? I mean how our operations would be affected if that potentially takes place?

Yes, thank you. Yes, Aniket, if I have to summarize in a very simple words, I think I would wait until the trade agreement between India and US to be signed. Once it is signed, I think the better clarity will emerge. We'll wait until then.

I mean, do we have any alternate plan if this.

We already have a facility in the US. I mean so for us it's a neutral. We have facility on the both the side. So, what I can say as far as.

I mean for the Apnar plant.

No, so it's still the there is again as I said, I don't want to jump the gun unnecessarily. Let us get trade agreement signed. I think it's in advanced stage as we speak. Once the agreement is signed, what are the fine prints of those agreement, how the healthcare sector specifically pharma is covered, and I think the better clarity will emerge then. So, I would wait until it is done.

And anyway they said two years, so it's too long a time for the way historically this tariff scenarios have kept on changing. So, let's not worry about it, definitely not from Senores standpoint at this time.

Got it, got it. And are we planning to increase the emerging market mix in terms of our total revenue? I mean what will be the revenue mix going forward in two to three years?

No, so emerging market today we have 500-odd products registered, approved. Which is which

is likely to give us around INR170 crores, INR180 crores kind of a revenue number this year. So, per product basis if you if you look at it, we have another 942 products that are under registration. So that can give you which can be approved in next two to three years, that can give you a ballpark high-level number in terms of where the emerging market business could be. But at the same time, the US and the regulated market business is also significantly going to increase. In terms of the overall revenue. So, percentage-wise, mix-wise, we don't see any change in terms of where the revenue is going to come from. But yes, both the pies will continue to increase with its own pace in terms of where they are they are at today. So, I don't see any change in terms of percentages mix.

Got it. Yes, that's it from my side. Thank you.

Thank you. Thank you, Aniket.

Thank you. Our next question comes from the line of Harshit Pandey with Blue Star Capital. Please go ahead.

Am I audible, sir?

Yes.

Yes. First of all, congratulations for good set of numbers. So, my question is as we have given the guidance for FY '27, so what we can expect for FY '28 as there are so many ANDA approval we have got and we will launch it. So, can you please guide me on FY '28, what we should expect?

Yes, thank you, Harshit. So, as you probably would have heard, what we are expecting our revenues to be around INR2,500 crores to INR3,000 crores in about three to four years' time frame. So that's the about three four years guidelines from today. This year and the next year, I think I've also spoken about it in my note that the growth trajectory most likely to continue in the similar direction for us to achieve that kind of number. So it's difficult to say it will be exact that number or higher or lower, but on a hindsight basis if you look at three years down the line, four years down the line, where do you see us to be? We see ourselves to be around the number that we've guided for. Particular year or a quarter, there could be some variation of 5% to 10% here or there, but the strong growth momentum and better than industry averages is what we feel we are going to achieve as far as growth is concerned.

Got it, sir. Thank you and all the best.

Thank you.

Thank you. Our next question comes from the line of Gaurav Shukla with Fin Investors . Please go ahead.

Yes.

Thanks for giving me opportunity and congratulations for good set of numbers. Sir, my all questions has been asked. One question is that sir I want to know that as you said that revenue growth 30% to 40% for FY '27 and PAT growth 50% to 60%. So, and further INR3,000 crores for three to four year. What is the growth driver? These regulated and emerging market?

Yes, thank you, Gaurav, for your question. So, if you see in our presentation and as well as what we've spoken about, today we have about 23 commercial ANDAs that we have. We have approved ANDA about 58 as we speak. So, 35 more ANDAs yet to be launched which are approved. And then we have 39 more ANDAs, 39 more molecules that are under development, some are filed, some are to be filed. So, the growth trajectory of approved and going to be approved product continues, that will drive our further growth from the US standpoint. Non-US markets, markets like Canada, market like Mexico, market like UK, UAE, Saudi Arabia, South Africa, Vietnam, multiple of such Australia, New Zealand, multiple of such markets we have products filed in. That will further give us considerable amount of sales going forward. Coming to emerging markets, we've what we've told is we have 500-odd product approval today that we have and we have about 900-odd more registrations that are already in pipeline, which are already filed with the MOH. So that will again further significantly increase our revenue as more and more registration approval will come in. From a branded generics, India domestic business is concerned, we expect to do about INR50 crores to INR60 crores this year, and there's also a significant growth that can come from the branded generics space in next two to three years time frame as well. So, all in all, if you see our high-level three engines in terms of revenue that that gives us, all are positioned for a strong growth and that gives us the visibility of achieving those numbers which we've stated before.

So having said that, just to add this 70/30 kind of mix between regulated and emerging markets should remain in this vicinity at least for next few years. That's what it looks like.

Okay, thanks for sir. One sir thing that you have said that Apnar facility has been utilized at 80% to 90%. Sir, for it will expand about capex in Apnar facilities anything?

Yes, so we've already started working on the third line of production in Apnar and fourth line of production is already been planned. So, we are significantly ramping up our production capacities at Apnar facility as well as we have ramped up our US capacities and going to increase our capacities there also. So, both the on both the plants, there's enough capacities expansion is happening to achieve the growth that we want from the regulated market.

Okay. Thank you, sir. Thanks a lot and all the best for future, sir.

Thank you.

Thank you. Our next question comes from the line of Utkarsh Somaiya with Eiko Quantum

Solution Private Limited. Please go ahead.

Thank you for the opportunity and congrats on a good set of numbers. You guided for a 50% PAT growth in FY '27 and you said that the growth will continue thereafter. So, can we expect a similar number in FY '28 as well?

I think, Mr. Utkarsh, the problem here is that we give you a specific guidance for this year and an overall guidance for next three four years. We want to grow, but putting an exact number for FY '28 is a bit premature. Let us be happy with what we have said at this point in time.

Okay. So ultimately you have a longer-term goal is to reach that INR2,500 crores mark.

Exactly. That's what we are aiming for, as Swapnil said.

With the current margin profile of 30-odd percent, right? Or that can still go up?

Yes, that's what we want to sustain as the minimum.

Perfect. Thank you and good luck.

Thank you.

Ladies and gentlemen, due to the time constraint, that was the last question for today. I now hand the conference over to the management for the closing comments. Thank you and over to you, team.

Thank you. I would like to once again thank everyone for joining our earnings call. We will keep updating the investor community on regular basis of our developments at Senores. I hope we have been able to address all your queries. For any further information, kindly get in touch with us directly or our IR partner. Thank you once again.

Thank you and have a good evening. Thank you.

Thank you, sir. Ladies and gentlemen, on behalf of DAM Capital Advisors, that concludes today's conference call. Thank you for joining us and you may now disconnect your lines.