Ladies and gentlemen, good day, and welcome to the Q3 and nine months FY 2026 earnings conference call of Lincoln Pharmaceuticals Limited. 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 this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Trusha Shah, Company Secretary and Compliance Officer, Lincoln Pharmaceuticals Limited. Thank you, and over to you, Ms. Shah.
Thank you. Good evening, everyone. I, on behalf of Lincoln Pharmaceuticals Limited, once again welcome you all to company's Quarter 3, Financial Year 2026 investor conference call. On this call from the management, we have Mr. Munjal Patel, Whole Time Director, along with Mr. Darshit Shah, Chief Financial Officer, myself, Trusha Shah, Company Secretary and Compliance Officer, and our investor relations team. Before we begin the earnings call, I would like to mention that some of the statements made during today's call might be forward-looking in nature. These statements are based on current, current expectations, forecasts, and assumptions that are subject to risks and uncertainties. I will now hand over the call to Mr. Munjal Patel for his opening remarks. We will then open the forum for question and answer. Over to you, sir.
Hello, everybody. Good afternoon or good evening, and welcome to the investor call of Lincoln Pharma. My name is Munjal Patel, and I'm one of the management partner in the company as a Whole Time Director. Particularly for the Q3, we are looking at the numbers of the revenue is INR 166.32, compared to last year, which was INR 146.35. This is Quarter three to quarter three FY 2026 to Quarter three, FY 2025. The EBITDA is INR 38.74, compared to last year, it was INR 32.63 last year. PAT, profit before tax is INR 34.72, wherein last year it was INR 28.68.
NP, net profit is INR 28.60, compared to last year, it was INR 20.77, and EPS is 14.28 compared to last year, which was 10.37. So this is the, regarding the, quarterly comparison of Q3 last year and Q3 this year. There has been some minimum of plus and minus during the quarter-to-quarter results because of the geopolitical kind of situation, but eventually, we have achieved the number. As of now, the EPS for the nine months is coming close to 41 point, it's coming to 38.07, which last year as a whole was somewhere around 41.11. So I think so we are going on the right track, and we will be achieving the good numbers by the end of the year.
So just to brief you with, what we have done till now is the company is going at a reasonable pace of 12%-18%. That's what we are targeting to grow at. Also, the company has diversified and started investing more into the regulatory part of the product, of the, registration of the product. So we are now expanding the portfolio in the different regions also where we are entering into some niche, therapeutic index in domestic market also, as well as in the international markets also. Doing all the research and the, what do you call, the BE studies as well as the whole, dossier documentation process at our own site. And, we'll be submitting it into multiple countries, regulated countries also, which will give us, growth.
We have already bought a special building, which we are about to finish up or, you know, it will start working within about two or two in a half months. There, it's a special dedicated R&D center for the development of the new product. That is one step which we have done. The Cepha block , which was about to commence, has already commenced, and you know, the revenue has started churning around in that one also. Still a lot of regulatory has to come, but, you know, whatever we could start with and the regulatives we have, we are waiting on, that will add on to the value. Today we are doing about roughly around INR 45 crore of business, which we are targeting this year.
So that would be something which will be coming up. And, overall, our growth and the target for INR 4,000 crore is still there, and we will achieve it anyhow. That would be something from my side. If you have any questions, I'll be happy to take it for you.
... Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question, may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. The first question is from the line of Pranav Shikhare from Finavenue Growth Fund. Please go ahead.
Hello, sir. Good afternoon, and congratulations on good set of numbers. So my question was, for a long-term target of INR 1,000 crore, where will the major growth come from, domestic mandate generate exports or the regulated markets? And what is the realistic timeline for regulated market contribution to happen, and where are we currently over there? Can you share some light on that?
Thank you, Mr. Pranav. First of all, the growth which we are expecting will, of course, come from the existing facility, wherein the new dossiers as well as the new products which we have launched and are being exhibited, will come from there. That is the first growth, because that is the existing business what we are doing. We are still looking at an upwards of another 10%-15% by next year, fourth-
Sure.
At the first lot.
Yeah.
Secondly, our CPH block, which is just contributing to INR 45 as of now, that will gradually, our target is to achieve INR 150, but we will closely come to at least INR 90-INR 100 by next year. That's what is our next target. And also with the current business, since in the domestic market also, we see that our products are spread in a bigger way in comparison to what we were. Our Tinnex molecule, which is one of the key amongst ENT segment. Today, we are one of the brand leaders in the ENT segment. So, you know, and now we are even exploring other market therapeutic index in the what you call, the different horizon of the industry.
Mm.
This is what we will have the growth from. Also, regarding the regulated markets, we have the CMO and CDMO projects already signed with the company, wherein we are looking at, in total, right now, we have 18 or 19, something which is already being processed.
Welcome.
Five with... Hello?
Yeah, go ahead, sir.
Yeah. So five we have already signed, so probably around 24, 25, CDMO projects will be commercialized. So that's where we'll get the regulated market, approval from. And whatever new we are developing, that also we will put in these regulated markets. So that will be a bonus, which will again, help the business to grow and touch the 1,000. We might even cross the 1,000.
Understood. And so for our domestic business, what is our doctor coverage expansion strategy, and which therapy areas are delivering the highest prescription growths, and can you tell something about that?
If you see our basic, our highest therapeutic growth is coming up from anti-infectives, then is the respiratory, then is the lifestyle and metabolism, which is what we are looking at. Another is urinary, then hormones, and then is the muscular pain and other therapeutic index. So this is our major contributors.
Understood. Thank you, sir. I will join back in the queue. All right.
Thank you.
What he said?
He said he will join back the queue for a follow-up question.
Okay. Okay.
Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Vikas, individual investor. Please go ahead.
Yeah, hi. Thanks for the opportunity. I have two questions. One is that, the company's dividend payout has been negligible over the last few years. So what is the out-
On the line for the participant dropped. You may go ahead.
He's just asking about the dividend, and then I think he dropped, right?
Uh, yes.
So for the dividend, we are giving the consistent dividend till now. We are thinking on to whether to revise or what to do. So that would be something which we are discussing internally with the management, and it also with the growth structure of the company, whether, you know, the revenues are pretty... As a result, what we have is pretty good for us to develop as a debt-free company or not. So depending on that, we will be exploring whether we should go for extra or more dividend.
Thank you. We have Vikas reconnected.
Yes, hi. The second question I had was that on the loans and advances, if you could explain that the substantial amount of loans and advances, what is the nature of that, and when are they like, likely to be paid back?
See, these loans and advances are either given to some companies who are giving us, which are, Few of them are, those kind of ICDs which are giving us returns, because we have substantial cash flow which is already there in the company, and we are, we have to not have everything in the one basket. So, few, we have been giving it as ICD, wherein secured, assets or loans are being given to us, or, you know, the mortgages have been done with us. So we are secure, and they are being paying us regular returns on the investments what we have been given. Plus, we have also given to people who help us for getting the materials at a cheaper rate.
So if we are getting some discounts at about 2%, 3% or 4%, up to even the printers, they give up to 10% also, if we pay out in cash. So we give it to such people who we demand a discount, which contributes to the business. So anything what is being given as loans and advances, it is till now, we haven't had any defaults, and we have been secure, and we are getting returns which are upwards of 10%-12%. And our main goal is to have the money which is sitting there, not until we invest it. At least it should be giving us something more than the inflation rate, just to cover the cost of the money what we are having on hand.
We are parked even in the mutual funds and various other FD kinds of instruments also, and even land is also there. That's all in the books of the company.
Yes, I missed the answer of my first question, but just connecting the two points, that, given the fact that there's substantial surplus cash, it will be in the best interest of the shareholders that instead of investing in the non-core activities, like, say, the secured against, loan against, property, et cetera, it will be best if you could increase the dividend payout so that over a period of time, this, it gets normalized.
We are trying to, you are right, but you know, we have cash right now is only-- Our problem is that we, if we can find something, inorganic growth, which we are expecting. So we are, you know-
Trying to dig into different parts of the, pharma industry, where we could find something which is an inorganic, and we could take an exponential growth by having such funds on hand. Rather than if I take a payout, you know, we will be the, since we are the promoters, we would be the happiest ones to get. But we are not doing it, is just to safeguard the company as a whole, wherein, you know, if I get a kind of business wherein I can have an additional revenue, it is beneficial for the investor also and the company also. So that is our key focus, wherein, you know, the sizing and right now, the inorganic growth, if we can get, that's what we are looking at, or we will grow from scratch by building up a greenfield project.
The money sitting there is just for that purpose only.
Yes, sir, I totally agree. It's just that you could balance the two, I guess, the two objectives and find a mid-balance. That will be great for the company. Thank you.
Thank you.
Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Rudra Sweja, Micropal Financial Consulting. Please go ahead.
Thanks for the opportunity, sir. Am I audible?
Yes, you are audible.
Yes, you are audible.
Yeah. Sir, I think in our last interaction, we mentioned something about Canada, Australia, and EU business. So-
True.
If you could provide more color on how we are doing on all those three fronts, what are the current revenue levels?
Okay.
and what kind of ramp-up we are expecting from those regions?
Okay, that's what I was coming to when you said that. I already, Before also, in the, the Canadian business, we have already started with the 15 or 17 products commercialized. So various products have been given to them. It is through a CDMO and a CMO product, which is contributing to this year, somewhere around about $4 million-$5 million of business, roughly. And also another total of all is 25 products, which we have, could be 3 or 25 products, which we have signed till now. And those products will be developed as well as commercialized. So out of that, commercialization has been done, and it is being giving contribution to the company.
Regarding the TGA, we have been getting the products identified, because entering TGA was like, you know, whether we should have a MA which is already ready, and we can do the site transfer on that one. We are working on that base that we had an opportunity to get about 15-18 MAs with somebody who already has it, but we couldn't get successfully transferred those products to our commercial angle. We are now in a process wherein, you know, we have to file our own products from the start. We'll do that again, and that will be taking another year or so for us to start the TGA. EU is about to get re-inspected, so we are just waiting for the re-inspection to be commenced, because QP has already audited it.
Until and unless we don't get it re-audited, so we are waiting for it. We have applied it from two countries, so as fast as we can, we will be able to get back the approval, then we can go ahead with it. But since we have the SRA approval from Canada, we are open to all the markets as of now. So there is no such kind of a business loss which we are facing.
Understood. Sir, you mentioned $4 million-$5 million business from Canada. Are we expecting any ramp up going forward, or is this the maximum level that we could do with current set of molecules?
As I told you, it is just about 15 or something products, and total is about 23 products which we have to commence. Once that is the basic benchmark, and that is only the tablet line, which we are looking at. Now, since Health Canada inspected us since January, we got the tablet, capsule, ointment, sachets, dry syrup, and our liquid syrup line approved. Six lines are now approved from Health Canada. It helps us in various markets, which are indirectly accepting the accreditations of such markets, which are SRA markets, and helps us to enter in those markets through these approvals. You know, of course, it will increase, and it may cross even $10 million or $15 million down the line.
So we are expecting more business to grow, not even only from this particular region, but we can even grow it from Latin America, we can grow it from Southeast Asia, and in other countries wherein these certificates are useful for us to get the product registered. And going forward, it will give us a commercial value.
Got it, sir. Sir, you mentioned something about re-inspection from EU. I'm sorry, I didn't understand that part. Is this a timeline thing that we have to get inspected again in a few years?
We have a timeline. So every three years, they do have an audit, but sometimes, you know, they are in a phase wherein they are already booked with lines. The auditors have... They have a queue of. So we firstly, we had an audit from EU, Germany, but Germany was full, so now we are targeting even Hungary. So our QP audit, which is the first phase of the audit, that has been cleared. Now, we are just waiting for the final audit to come up. So probably we can get it sometime in the middle of May, June, sometime. That's what we are targeting.
Understood, sir. When should we start a business coming from that region, if we get that approval in May, June?
We'll start once these. We have already submitted three products, and once these approvals are clear, we can again push up to more products, and then we might get the product approval for those three products also.
Understood, sir. On the long-term revenue target, sir, INR 1,000 crore, I think, earlier we guided for FY 2028, but,
Yes.
Yeah. So are we still sticking to that year, or are we, like, pushing it forward?
Frankly telling you, we are still sticking to that, but it might take five, six months here and there, but we are still sticking to the number what we are in mind, because we have to achieve that number, and we have to cross that figure. For that, we are also. That's the reason that we are also waiting for either we can expand in the domestic territories or even through an inorganic growth, or even through registrations, or even by putting up a new facility. So we have everything, we are exploring, and we have hands on many things right now. So probably we'll be successful to achieve that number in the timeline, what we have told. Otherwise, it will be maximum to maximum, somewhere around six months.
Got it, sir. Currently, sir, we are doing around 15% in EBITDA margins. Should we expect expansion on that front as well?
Frankly telling you, to be on a secure side, I would say 15 would be ideal, but you know, we might go up to between 10 to 18. That's what we can expect.
Perfect, sir. Makes, makes sense. Sir, last question on-
I don't want to overcommit you guys, and you know, I don't perform, and then again, I have a question, so it's just...
Understood, sir. Perfectly understandable, sir. Makes sense, actually. Sir, last question on Cephalosporins block. What kind of revenues are we doing from that, and have you achieved the break-even levels?
Today, as of now, while I'm speaking to you, this year has already crossed the break even, and we are at least on the positive side of the balance sheet, with whatever business we are doing, first thing. Secondly, the revenue from that by the end of this year, we are expecting is between somewhere around INR 45 crore. That is what we are expecting this year. Out of which I think so INR 32 crore-INR 34 crore, it is done.
Understood, sir. Understood. I'll come back in the queue if I have more questions. Thank you.
Thank you.
Thank you. Next question is from line of Meet Mehta from Prasun Exponentials. Please go ahead.
Yeah, thank you. My question has been answered. Just one question I wanted to know, what is your R&D expenses as a percentage of revenue, and how should I look into that going forward?
See, as of now, our R&D expenses roughly comes to around 1.8%-2%. But with this aggressive planning, what we are trying to do is we are—we might come up to 3% or 3.2% or 3.25%. That's what we are targeting. Just to now scale up to the next level, because in the regulated markets, we have to pay the higher fees as well as, you know, we, we want to have the dossiers and all the intangible asset which is there on our name. So for that, whatever expenses we have to do, we'll do. So it will be the R&D expenses as of now is roughly around 1.8%-2%, which we are targeting to 3%-3.25%.
Okay, understood. Thank you.
Thank you. Press star one to ask the question. Next follow-up question is from Pranav Shikhare from Finavenue Growth Fund. Please go ahead.
Sir, what is the market share in top five brands? And, on that front, are we competing on price or price prescription, stickiness, and what is the strategy over there?
See, our top five brands, if you talk about, it would be especially in international, it varies country to country because, you know, we are into a different segment of mode wherein we are there. So, you know, country to country, the brand and the brand value keeps on changing. But we are significantly present in each country, at least with whatever we are present with, our top brands are contributing around starting from $100,000 to sometimes to $2 million a brand. And in the domestic market, you know that, as I told you, the therapeutic index which we are focusing, so the major is the Trixon brand, which is there.
Also with that, there is this Vivan brand, as well as Mobyle brand, as well as the Paarmex, which is the innovative brand for the year, and Bell, what do you call, Belvigin. So that is the brands which we are focusing the most, and overall, that is what is our target, which we are having.
Understood. Understood. And, sir, what percentage of exports comes from tender-driven Africa market versus the branded emerging markets versus the regulated markets?
See, to be specific for now, if I consider Africa market or regulated market, mostly now everything has become the same as per the GMP, what has been applied to in even Africa also. So I think so the markets are the same, but if you would ask me for like a Canada one, which I told you, as of now, we are doing about $3 million-$4 million. So we would deduct that much from our current sales, which is the regulated market. Rest, everything is coming from Africa, Southeast Asia, Latin America, and the other tendering business like UN, WHO, or UNICEF or other kit projects which we can have, tender projects.
Okay. Understood. That's, that's it from my side. Thanks.
Thank you. Next question is from line of Prashant Shah, individual investor. Please go ahead.
Hello, is my voice audible?
Yes, sir.
Yes, Prashant, your voice is audible.
Thanks for the opportunity and congratulations on a decent set of numbers to the team. I have basically two questions, and I joined a bit late, so pardon me if it is repetitive. The first question is regarding other income. So for the nine months, if we see, it works out to around 50% of the EBIT. Going forward, how sustainable do you see... What is this other income? And will this be in the same range, or can you give some more insights into this?
Okay. See, the other income is two types of income. One is the dollar difference income, which is being generated. That is one part of the other income. The second part of the other income is whatever the results which we have put and the earnings which we are getting in terms of the return. That is also part of the other income. These two are contributing to the other income.
And so when you say, I mean, the foreign exchange differences, so that means our exports are... We don't do basically any hedging, and any rupee devaluation is boosting the income. Is that understanding correct?
See, what happens is, you know, we do hedge, but we don't hedge fully. Because if we fully hedge, sometimes, you know, today, as you see that there are a lot of dollar plus and minuses. So we also don't know whether we would be right or wrong to do the hedge right now or not. And also, with the country also, we don't know whether the, in the country also, the scenario would be such that they might not be able to remit it because of the, globally, what we have seen since, January, February of this year.... that, you know, last year, that, you know, the plus and minuses of the currency was going on. So we don't do full hedging. Yes, we do hedge, but, we don't fully hedge the currency. Okay?
Fair enough. The second thing is, I mean, you mentioned about, you know, increasing our presence in Canada, Latin America, certain parts of Africa, Europe. So, in two parts in this, physically, how many of our products are registered in each of these markets? Like, how many products are registered in Europe, Canada, Latin America? What has been the cost, and how do we see the trend going forward? Have we put a number of like, I mean, how much are we going to spend in getting product and formulations registered, dossiers filed? I mean, any details on that, if you can provide.
I would give you a rough idea, because exactly, it really depends on the timeline of the R&D as well as the B studies to be passed, and the different tests to be conducted, and the validation batches to be performed, and the stability to be done. After that, only we will be able to register these products. With Canada, as I told you, the revenues have already been started since it was a CDMO and a CMO project. I have earlier on the call given a number that this year we will be touching around $3 million-$4 million as of now in Canada. In Latin America, we have products, but we have products which belongs to the local partner.
So now we are registering either the same products or even the newer products, which would be not competing, but it would be the ownership of Lincoln only. So that's the model that we want to implement. And altogether, that would be implying to various markets. So we are taking a gradual step. Every year, we are targeting somewhere between INR 5 crores-INR7 crores of registrations, BE studies. That is what we are targeting.
This would be the part of your R&D cost or another line item?
It would be aggregated into two parts. One would be the R&D cost, which is, the technical part, but when the dossiers would be submitted, it has to be in the registration, and the regulated part, which would be kind of an asset also, and which can be, on the expense side. So you will see that on the books as expense side.
Understand. Just a suggestion, I mean, what you have explained, if you can put a slide or two of that in your investor presentation, it will be helpful for us investors to know, get information about it, and we will be able to track it on a more meaningful way going forward. That's just a suggestion from my side.
I think on the website, some it is there. If you can just give me, put it on our investor email, we will send you the link to the, page where it is.
Sure, I will do that. That's all from my side. Wish you all the best.
Thank you.
Thank you. Next question is from Saket Saurabh from Sadari Capital Partners. Please go ahead.
Hi. Thanks for the opportunity. Am I audible?
Yeah, you're audible.
Yeah. So, sir, exports has emerged as a, a major driver for us this quarter, and even if I look at other, Indian pharma companies also, exports is driving a lot of growth, especially non-US. So, sir, just wanted to double-click on that. So, around... Currently, almost INR 400 crore of our revenue comes from exports. So how does that, sir, break up across LATAM, Africa, South Asia, say, Europe and Canada?
To be frank enough, you know, on this particular answer, I have a rough estimate, which would be, like, you know, Africa would be somewhere between 40%. These are all the rough estimates what I'm talking about.
Yeah, rough is fine, sir. Rough is fine.
I can give you the exact numbers. I can give you the exact numbers. If you can email us, then I'll give you the exact numbers. Then, Latin and Southeast Asia combined would be somewhere between 25%. Then, another 15% would be the UNICEF, UN, and other tender business. And the rest of the component would be Canada business and the other, some smaller other businesses which we do.
Fair enough, sir. And sir, how much in dosage form? Is it like, what percentage would we say, injectables? Because mostly these countries, and tender-wise, injectable is a great, offering for, for most of the companies. So how does that break up for us? Like, what, what percentage comes from injectables, what from oral, solid, and, say, different dosage forms?
We have total, as of now, in Lincoln, total about 17 different line items, which are... I mean by that, that is the segment. Tablet is one of the segment, and injectable itself has got another three segments into it. Like that, that are only four segment what I'm talking about. We have total 17 different line items. In that, we have sub, lines of, production, as well as packaging, as well as, me- everything. Altogether, if you look at our, the top seller, of course, would be the tablets, then would be the injectables, and injectable would be dry powder injectables, and then would be the capsules and other, ampoules and, dry syrup and all that.
Okay, fair point, sir. Sir, do we have, do we, largely distribute via importers, or we have our own distribution setup also in some of these countries?
We don't have our own distributions and setup, but yes, we do have our own marketing team, we have our own country managers, and that is what which we are doing. So as of now, we don't have our own setup because we don't want to have local currency problems. We don't want to tackle with the local, any other kind of issues wherein we are not aware of. So whatever business which we are doing, it is B2B, but in fact, we are tracking it down to B2C also, since we have our country manager and our team of marketing team, who is going and spreading these products into various countries, into various areas.
Okay, got it, sir. So sir, why, why I was asking is that many companies nowadays, like, you know, Caplin, they are setting up their own warehouses because they feel that, you know, having an inventory in that particular country helps you better market your products, because you can then supply this. So is that in the works in some of the countries where you have meaningful sales now, so you want to deep dive or augment your presence?
We don't want to get into that because, you know, I think so you are rightly said that, you know, Caplin has a strength over that, and since they have created that strength, it is good that even they could explore that. But our strength is not in that. Our strength is into manufacturing and marketing of the product through the distribution channel only. So for now, we are going on that line of action only, and we feel comfortable as well as the whole business cycle is visible that way. So we don't need to worry about the outstanding payments, currency variations into different markets and many other local issues. So that is something which we have a peace of mind as of now, since we have that channel.
But we would like to go with the channel what we have as of for now.
Fair point, sir. So currently, I think, the domestic export share is around 30-70, 70% exports. Now, for the INR 1,000 crore guidance that you have given, so what's the mix? Is it 70-30, or it would be more, say, domestic driven?
It will be both sides. It will grow the same, and probably it might be that we will come up to 65/35 or 60/40. We might... There is always a bit of a shift in the numbers, but since it is linked by itself, and until it is giving the same margins what we are expecting, I think so, you know, for us, as a baby, both are the same. But, yes, this would be plus and minus here and there, but the value would be somewhere between, 60/40 range. So that's what we are looking at.
Sir, fair point, sir. You talked about, you know, there is a lot of focus on branding or branded generics within our portfolio. But sir, for a branded company, don't you think this 15% EBITDA is slightly on the lower side? Because in India, at least many branded pharma companies easily enjoy, say, margins upwards of 20-25%. Even in exports, you know, those who largely, again, the asset-light model that we are right now focusing on, the margins are, you know, upwards of 20-25%. In fact, Caplin has 35-odd%, but okay, that's a scaled-up company, so that might be slightly different. So, any reason for why slightly lower than average margin, sir, sir?
That's what I told you. We have, we are expecting 15 as the bare minimum, and we might go to 18, and we might even cross to. See, this all depends on the product mix and the seasonal aspect, which is there. So, you know, we have products, we are branding the products, and nothing comes at just the one shot. So, you know, branding is such an activity that, everybody is trying, and you know, we have to work a lot in terms of, people, development skills of the people, as well as the marketing team. And everybody has to be aligned accordingly. So we are doing all the activities possible into various regions and various, areas. Also, in the therapeutic index, wherever we are possible, we can do that.
We will try to grow and give a better number, but this is what I told as first also, that, you know, to be secure enough, I can say that between 15%-18%, we will achieve.
Got it, sir. Sir, yeah, if I look at our current revenue mix, is it like 100% is, say, marketed by us, or we also say, act as CMOs or CDMOs to other partners who, again, we have the manufacturing license and they are the ones who are marketing. So in that case, the margin might come down slightly. So what's the mix between, say, own brands versus, say, CMOs/CDMO for our revenue?
Particularly in CDMO, CMO model, we are the manufacturer, and since we have such kind of key accreditation, especially for domestic, we don't manufacture for anybody except for Abbott and, or also... You know, we have only one product which we are doing for them. So, in the plant, as of now, we are not manufacturing anything for somebody who is locally doing it or third-party manufacturing. In domestic also, we don't entertain any kind of manufacturing or they are manufacturing at our site and marketing it to somewhere. So the margin and whatever is there, is there in the business by itself.
Okay, sir. Okay. So sir, thanks for responding to my inquiries patiently, sir. Appreciate and best of luck.
Thank you.
Thank you. Participants, you may press star and one to ask the question. Next follow-up question is from line of Rudra Sweja from Micropal Financial Consulting. Please go ahead.
Yes. Thank you for the opportunity again, sir. Sir, with the current, existing manufacturing base, what is the peak revenues that we can do?
I think so we can. See, what we are doing is, you know, as of now, we are, we have still a gap of another, I would say around 15%-20%, which we can still cope up with in the existing site, keeping a bit of hollow just in case of needed. That is separate. But yes, we can grow another 20% from the existing site when we use all the lines. Actually, it depends on the usage and the usage of the lines, what we are doing, and that's how the product mix is being developed.
Whenever we are doing new R&D, we are looking at what lines we have and what we should develop, so all our lines can be fully occupied whenever, since they have been audited by so many countries, and we can go ahead and do that. That's what is, would, would be our major thought on it.
So if I'm getting it correct, from here onwards, we can do around INR 750-INR 800 crores with our existing base, obviously, keeping in mind all of the details that you mentioned. But if we want to go beyond that, we'll either need a new plant or inorganic expansion, like you mentioned during this call. Is my sense correct?
So, you are excluding Cepha. So Cepha is another which is already 45. We are doing, it would be, we are targeting 150 on that also. So it will add up to another, that plant is still, you know, in the phase of approvals and, you know, production. So that would be another value which will be added to the business. And also, we buy many products, finished products in many countries from outside also. That business is also there. So we can even have an expansion in that business also. So, you know, altogether, we have different avenues to grow the business. And yes, we, our basic requirement would be a unit or an inorganic growth. So that is there, and that's what we are looking for.
Sir, on this inorganic side, is there any specific niche that we are looking at? Maybe some drug type or some therapy that we are looking at, or delivery system? Just to get a broad sense.
What my bread and butter is mostly, the tableting and the, injectable part. So firstly, we would be looking at the tableting block somewhere, if possible, and that too, if they have some kind of accreditation for what we are looking at. So then only we go with that, and then would be the injectable one. Since we are already into that business, we would like to cover that business first and then go to something different again now, into oncology or hormones, which we are also planning to move forward. But firstly, we want to take this as a challenge and, take it up from there.
Understood, sir. Thank you for answering my question.
Thank you. A reminder to all the participants, you may press star and one to ask the question. Next question is from line of Balaji, individual investor. Please go ahead.
Sir, this is Balaji, sir.
Just hear your audio.
Sir, thank you, thank you for the opportunity. Shareholder of the Lincoln Company for the past four years, sir. I have seen the growth of the company.
Balaji, sorry to interrupt you. Your voice is coming a little muffled. Can you speak through the handset, please?
Yeah, sure. Hello, my voice heard, sir? Hello.
Hello, Balaji?
Hello.
Yes, go ahead.
Sure, sir. Thank you for the opportunity, sir. Sir, a few questions, sir. Most of the questions were covered by the previous participant. Firstly, there is a very plan for the buyback of the share, and-
We are not doing any kind of buy.
Okay. Sir, previously, in the past, three years back, there is a promoter shareholding has been gradually increased, but, lately there is no more, major buying. So is there any plans to increase the shareholding of the promoters?
Because, yes, as and when required and, whenever we see an opportunity, yes, we will again go with. Whenever we have that additional funds, of course, we will invest first in the company only because we will be the most beneficial one out of it. And since we are sitting here all day, you know, we will do that. That promoter holding will be increased gradually, and we will keep on doing that.
Sorry, thank you, sir. Thank you for your answer. Sir, one thing, sir, why there is a DII holding is not increasing in our company, sir? Even though Cepha has increased their shareholding.
If the DIIs have a criteria of something where, you know, they have a benchmark limit of the market cap, and after that only they can enter a company. So, you know, that's the reason that they don't directly enter the company. And Cephas are looking at the positive results and whatever growth they are looking at, so they can directly invest. So that's the reason that you see the Cephas are there, but DIIs are still not there.
Sir, regarding that Africa market, I think they are 40%, directly dependent on the Africa market in export. So we are facing any sort of cash ratio, is there any delay, sir, because of this sort of currency fluctuation? In Forex fluctuation, is there any-
We don't see any kind of losses till now in such kind of even situation, geopolitical. Yes, money comes in, like, you know, 10, 15 days, plus and minus, but that is something which we have to do sometimes whenever that happens. Otherwise, you know, money flow is going on in the correct direction.
Yes. Sir, there is one other last question, sir. In other income part, sometimes in some quarter, we see positive, positive contribution, in other quarter, we are seeing negative contribution. If that means, why so, sir? Means our whatever the investment is, is not generating that much, return, sir?
No, see, what happened was in February, when we all saw that dip in the market, then, you know, that was seen in the balance sheet also at that point of time also, and the recovery is now being done in the market. So that's why, you know, last two quarters, we are seeing a bit of an increment, and now we are seeing much more of an increment in the other income. So gradually down the line, you will see a bit of a better one also.
Yes. Thank you, sir. Thank you from my side, sir. Kindly focus on the increasing the wealth of the shareholders, sir. I am part of this company for the last four years, so hope that our company do good things, expand, shareholder wealth, and, at the same time, promoter wealth. Thank you, sir. Thank you once again.
We agree. You are with us for so long, and four years is a long time, and we are really grateful for that. And we commit that, you know, we will grow the company, and being part of Lincoln, think of us as your family. You are a shareholder of the company, so you can come and visit the office as well as the factory whenever you want. So we invite you anytime to come to and visit the factory also.
Thank you. Thank you, sir. Sir, one thing, sir, from my side. Please continue this con call on every quarter, sir. We are saying that there is no con call from the last two quarters, I think. So I request kindly-
We'll try and do that.
Thank you. Thanks.
Thank you. Next question is from Manav Madia from Sapphire Capital Partners. Please go ahead.
Hello, sir. Am I audible?
Yes, ma'am.
So, this INR 45 crore of the revenue that we are expecting by this year end, this is from which segment?
That is the Cepha block , ma'am. That is, another factory which we bought in Mehsana. So it is, gradually commenced, and this year we are touching about 45 PA.
Okay, sir, and any revenue and margin expectation for FY 2027?
FY 2027 or this current year?
Next year, sir.
Next year, we... As I told you, we will be somewhere between 15%-18%, that is guaranteed. Might be we cross above that also. Looking, there are a lot of dynamics which are going on in the market. If I commit something right now and, you know, something goes wrong or, as an industry also, you know, a lot of trade barriers come into it, then we don't know. Yes, we are looking at a better return on whatever we are committing, at least over 18%, if possible. We are trying to touch the 18% and above benchmark, if possible.
Okay, sir. Thank you. All the best.
Thank you. As there are no further questions, I'll now hand the conference over to Mr. Munjal Patel for closing comments.
Firstly, thank you everyone for joining us today, for discussing company's third quarter result and business performance. For any other question, queries, or plant visit, please write to us. We would try to respond them at the earliest possible. Thank you very much again for attending this call, and have a nice day.
Thank you very much. On behalf of Lincoln Pharmaceuticals Limited, that concludes this conference. Thank you for joining us, and you may now disconnect. Thank you.
Thank you.