Ladies and gentlemen, good day and welcome to the Advanced Enzyme Technologies Limited Q2 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ronak Saraf. Thank you, and over to you, sir.
Thank you. Good evening, everyone. Welcome to Advanced Enzyme Technologies Q2 and H1 FY 2027 earnings conference call. We sincerely hope you all have gone through our financial press release and the presentation, which has been posted in the Investor Relations section of our website as well as on the stock exchanges. We have with us Mr. Mukund Kabra, Whole-Time Director, and Mr. Beni Rauka, Group CFO.
Today, the management will discuss the performance and business highlights, update on strategies, and respond to any questions that you may have. As is usual, for ease of discussion, we will look at the consolidated financials. I would like to draw your attention to the fact that some of the information shared during this call, particularly regarding our plans, strategies, and future outlook, may contain forward-looking statements. These statements involve inherent risks and uncertainties and are based on current expectations, forecasts, and assumptions.
Actual results may differ materially from those expressed or implied in these statements, influenced by a range of factors, including but not limited to economic conditions, changes in government policies, regulatory developments, and other unforeseen circumstances. Recipients are cautioned not to place undue reliance on these forward-looking statements, as they are not guarantees of future performance and should not be viewed as a substitute for independent judgment. The company undertakes no obligation to update or revise any such statements, whether as a result of new information, future events, or otherwise. Now, without any further ado, we shall commence this call. Over to you, Mukund .
Thank you, Ronak. Good evening, everyone. Thank you for joining us today for our Q2 and half-year earnings call. I extend a warm welcome to all our shareholders and partners. As the festive season is just around the corner, the entire AETL family would like to extend our warmest wishes to you and your loved ones. May this festival of lights fill your lives with happiness, prosperity, good health, and success. Wishing you and your family a joyful, bright, and wonderful Diwali. Before we discuss the performance for the quarter, we are pleased to announce that the company has successfully completed the buyback by acquiring 2.41 million equity shares at an average price of INR 289.09 per share via open market route. This reflects our continued commitment to enhancing shareholder value and maintaining a balanced approach towards capital allocation.
On the global front, the economic environment continues to remain challenging, with geopolitical tension across various regions creating uncertainty in international trade, supply chains, and commodity markets. These developments, coupled with inflationary pressure, volatile energy prices, and fluctuation in currency markets, continue to influence the overall business environment. While central banks across major economies remain focused on managing inflation and supporting growth, the pace of recovery remains uneven.
In this environment, we continue to remain watchful, focused on operational efficiencies, prudent cost management, and disciplined execution to navigate uncertainties while pursuing our long-term growth objectives. I am happy to announce that we have reported robust numbers for Q2 FY 2027. We have witnessed growth across all business segments of our presence. Our Q2 number delivery reflect a strong growth. The fundamental strength of our business remain firmly intact, and we anticipate progressive momentum as the year advances.
While it is important to view this performance in the context of the inherent nature of our business, that is the reason we always suggest all our shareholders to evaluate our business on an annual horizon rather than through the lens of a single quarter. Our top line for the quarter stood at INR 2,145 million, registering a growth of 16% year-on-year and 12% on sequential basis, while the first half of FY 2027 revenue grew by 10% over the corresponding period last year. EBITDA increased to INR 721 million, up 20% year-on-year and 36% sequentially, while the same grew by 7% on year-to-date basis. Consequently, the EBITDA margin stood at 34% compared to 33% in Q2 FY 2026 and 28% in quarter 1 FY 2027. On year-to-date basis, this number remained unchanged at 31%.
Although the input costs like power and fuel and raw material remained elevated during the quarter, our focus on operational efficiencies eliminated the risk and delivered robust margins. We anticipate this as sustainable growth and stronger performance throughout the rest of the year. Moving to profitability, profit after tax, PAT, stood at INR 512 million, grew by 14% year-on-year basis, 33% sequential basis, and 5% on year-to-date basis. The PAT margin for the quarter was 24% and 22% for the first half FY 2027. Now, I will take you through our segment-wise revenue performance for the second quarter of FY 2027 and compare it both year-on-year, sequentially, and year-to-date. Let's begin with human healthcare. Revenues for Q2 FY 2027 stood at INR 1,285 million, reflecting a 6% year-on-year growth and 11% sequential increase.
This growth was primarily attributable to improved sales in the pharma API business, bio-catalysis, and nutrition business. Human healthcare business remained unchanged on year-to-date basis. Moving to animal healthcare, revenue stood at INR 265 million, registering a robust 37% year-on-year growth, 5% increase quarter-on-quarter, and 14% growth on year-to-date basis. The segment contributed approximately 12% to our overall revenues during the quarter.
Turning to bio-processing, the segment reported revenues of INR 365 million, delivering a strong 43% year-on-year growth, 19% sequential increase, and 37% growth in the first half of the fiscal. The segment contributed approximately 17% to our total revenues during the quarter. Lastly, Specialized Manufacturing reported revenues of INR 231 million, registering a healthy 25% year-on-year growth, 15% increase over the previous quarter, and 32% growth in the first half of the current fiscal. The segment accounted for approximately 11% of our overall revenue during the quarter.
We anticipate that our growth trajectory will remain strong across all business segments in the foreseeable future. This sustained momentum reflects our strategic focus on innovation, operational excellence, and customer-centric initiatives. As we move forward, our priority is to enhance operational resilience, ensuring that we remain agile and well-positioned to adapt to evolving market conditions and emerging challenges. Through disciplined execution and responsible growth, we aim to strengthen our long-term value proposition and create sustainable, enduring benefits for all our shareholders. With this, I will now hand over the call to Rauka. He will walk you through the financials and key subsidiary numbers.
Thank you very much, Mukund. Good evening, everyone. I hope you all are in good health and doing well. Wishing you all a very great festive season ahead. On the company's consolidated financials for the second quarter and first half of fiscal year 2027, let me give you first year-on-year basis numbers. Our revenue increased by INR 300 million, a 16% of growth on INR 1,840 million to INR 2,145 million.
Our EBITDA increased by INR 121 million, 20% growth from INR 601 million to INR 721 million, and this is about 34% of our revenue as compared to 33% in the corresponding previous quarter. Profit before tax increased by INR 92 million, a 15% increase from INR 595 million to INR 688 million. Our PAT has increased by INR 54 million, a 14% increase from INR 447 million to INR 512 million. This is about 24% of our revenue.
This was on year-on-year basis. On sequential basis, which is quarter-on-quarter, our revenue increased by 12% from INR 1,917 million to INR 2,145 million. EBITDA increased by INR 192 million, a 36% of increase from INR 529 million to INR 721 million. This is about 34% as compared to 28% in the previous quarter of FY 2027. PBT increased by INR 152 million from INR 535 million to INR 688 million. PAT increased by INR 126 million, a 33% of increase from INR 386 million to INR 512 million. T his is about 24% as compared to 20% of our revenue in the previous quarter. Let me give you now year-to-date performance. For six month, revenue increased by INR 358 million. W e have 10% of growth in six month. From INR 3,704 million to INR 4,062 million, this is our top line.
EBITDA is improved by INR 85 million, from INR 1,155 million to INR 1,250 million. T his is about 31% of our revenue, and last year also we had about 31% in terms of percentage. PBT increased by INR 78 million, from INR 1,144 million to INR 1,223 million. Our PAT is increased by INR 46 million, from INR 852 million to INR 897 million. This is about 22% of our top line. JC Biotech sale numbers stood at INR 200 million, with EBITDA of INR 29 million and PAT of INR 17 million in Q2 of FY 2027, as compared to INR 186 million of revenue, INR 37 million of EBITDA, and INR 17 million of PAT during Q2 of FY 2026.
For six months, JCB top line stood at INR 395 million as compared to INR 397 million, EBITDA of INR 56 million as compared to INR 70 million, and PAT of INR 27 million as compared to INR 21 million. evoxx sale number is about INR 75 million. This is a top line, and EBITDA of INR 4 million. PAT, evoxx has reported INR 7 million of loss during this quarter, as compared to INR 18 million in the last quarter. Last year, it was INR 14 million of PAT. For six months, revenue of evoxx is INR 149 million as compared to INR 144 million, EBITDA of INR -8 million as compared to INR +31 million of EBITDA , and PAT of INR -26 million as compared to INR 21 million of PAT during six months of previous year.
SciTech numbers stood at INR 234 million during this quarter, with EBITDA of INR 61 million and PAT of INR 36 million, as compared to revenue of INR 185 million, EBITDA of INR 33 million, and PAT of INR 15 million. For six months, the SciTech number, this is our Specialized Manufacturing activities, wherein we had top line of INR 434 million in H1 of FY 2027 as compared to INR 330 million, registering a growth of 32%.
EBITDA of INR 92 million as compared to INR 38 million. This is about 144% of increase. PAT is about INR 49 million as compared to INR 8 million last year for six months. This is about 520% of growth. Our top 10 customer contribute about 26% in Q2 of this year, as compared to 27% in Q2 of last year. Overall, for six months, top 10 customer, 22% as compared to 23%.
B2C segment has contributed about INR 910,000 as compared to INR 1.29 million last year. B2C segment is INR 2.06 million as compared to INR 2.42 million in last year six months. Healthcare, generally we give some numbers. In India, we had about INR 696 million in Q2, as compared to INR 580 million in Q1, and as compared to INR 570 million in Q2 of FY 2026. International business, INR 588 million as compared to INR 578 million and INR 642 million. Total, as Mukund has already mentioned, human healthcare this quarter was INR 1,285 million. Our R&D spend has increased during this quarter. We have spent about INR 80 million-INR 90 million as compared to INR 86 million. Overall, for nine months, we have spent about INR 216 million as compared to INR 166 million.
R&D expenses on consolidated basis, this works out to be 6%, excluding our intercompany, without considering intercompany elimination, because evoxx is kind of a research and development company. On consolidated basis, R&D spend, if we consider the intercompany elimination, that works out to be about 4.3% during Q2 as compared to 3% in Q2 of FY 2026. This is all from my side. Now we shall open the floor for question-and-answer session. Thank you.
Thank you very much. Ladies and gentlemen, we will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone 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. The first question is from the line of Abhishek Navalgund from Nirmal Bang Securities. Please go ahead.
Hi, congrats on good set of numbers. Sir, my first question is on the U.S. market. Could you please elaborate in terms of the future outlook as we see in the U.S. market for us?
Abhishek , we are progressing. T here was some kind of a dullness which was there, which we can see in the first two quarters, because of all the global things, however it is moving. W e expect it to pick up as we move on towards the year end.
Sure. I deally, if that happens, there is an upside from our current margin levels also, right?
Yeah, that is true.
Sure. On SSPL, do we expect this growth run rate to continue, or is there any one-off kind of a thing in this particular quarter?
We are seeing a good traction at this point of time. I won't say it like a one-off thing, but I will not like you to just go with one quarter results, as we always mention that you take it as an annual. I would say that there is a traction, there is good things which are moving on all the business fronts.
Sure. Lastly, the EBITDA run rate that we have delivered, I n this quarter, do you expect in the upcoming two to three quarters we will maintain this INR 70 crore run rate, or will there be any possibility for upside or downside both?
It's a difficult question at this point of time to answer because a lot of things depends how it moves, but we will continue as our guidelines, like which we say that between 30%-32% on overall basis.
Sure, sir. Thank you.
Thank you. The next question is from the line of Nikhil Upadhyay from SiMPL. Please go ahead.
Hi, good evening. I hope I'm audible.
Yeah.
Yeah. Again, congrats on a good set of numbers. Just one understanding part, Mukund . See, in June quarter, you had mentioned there was this deferment of sale which had done some impact on the June quarter reporting, or the revenue was lower by that amount. It was substantially high, that was the reason you had called out. If we adjust for that and on a regular basis, would you say we would be tracking a 12%-13% kind of a sales growth, or would it be like a 10%-11% kind of a sales growth? What is our sustainable growth rate we are tracking post those one-time adjustments?
I would say like this, you are right, absolutely right. Last quarter we mentioned that deferment was around INR 10 crore, which impacted. This quarter also the deferment is on a higher side. Out of that INR 10 crore, we could get INR 2.5 crore on a net basis, and still like INR 7.5 crore is carried out for the next quarter as we really look at it. I will not say that this is one of the quarters. I would still say that there is a momentum, but I cannot give the exact numbers. Here, that is what we were talking about, is a double-digit growth, lower-middle double-digit growth. That is where we are aiming for.
Okay, fine. That is helpful. Secondly, Mukund , one thing if I look at it, the way SciTech has scaled up, and I was just going through our numbers, since March 2023 when we started reporting, our revenue run rate from INR 40 crore is now sustainably moving towards INR 80 crore, INR 100 crore, and the margin profile has also significantly improved from single digits to now almost sustainably 20% +. W hat is creating that traction for SciTech, and is it more broad-based across customers or is it specific to few customers?
It is more like broad-based. We increased a lot of efficiencies out there. We increased some shift working out there. That is where we increased the production capacity. When you utilize the capacity for the higher production, naturally the efficiencies get improved. The customer base is more wider. We are working on many R&Ds in the SciTech, and those are paying off right now.
Okay. Last question, I will come back in the queue. Can you share the revenue of the top products?
Sorry, we are not sharing those numbers going for three quarters.
Okay, fine. I will come back in the queue. Thanks.
Thank you. Participants who wish to ask questions may press star and one at this time. The next question is from the line of Zaki Nasser from Nasser Investments. Please go ahead.
Sir, good afternoon, and I think congratulations on a very hearty set of numbers. Sir, what you have mentioned, it looks like we will do a 15% kind of traction on the top line. Where do you foresee this coming from, sir? Would it be from the human part or the animal nutrition or manufacturing? What geographies would lead the next set of growth numbers, sir?
Geography is global. We are working, as we were always mentioning, we have three, four different horses. All the horses are running. We are working on all the different areas, different geographies, even into the Indian markets, even into the Asian markets and other areas, which are paying off. If you really look into the food areas, we have a very robust growth. You look into the animal feed area, we have a very robust growth. Even our biocatalyst area is picking up. These are all the different horses which will give us the growth. We are expecting U.S. to turn around. Once the turnaround happens, probably that will also start contributing.
Sir, could you just throw some light, if possible, with a few example of what goes under a Specialized Manufacturing field, sir?
In Specialized Manufacturing, we make effervescent tablets, ODT tablets. Again, it is not just for the pharma area, but we do it for a lot of different areas, like the cosmetic areas, for the pharma, for the nutra, for the animal feed. These are the different R&Ds which we do. How do we make different delivery systems? For example, for feed, very different delivery systems. These are all the things what we carry out there.
One last question from my side. Sir, after the buyback, what would be the cash on our books, sir? And during the next few quarters, do you have any plans to deploy this?
F or the quarter end, right?
As at September 30th.
Quarter, yes.
September 30th.
For the quarter end.
As a INR 640 crores at the end of the September quarter. I think there were somewhere around 7 lakh shares which were bought in October. I do not have exact number of October.
Mukund, let me give that number. INR 640 crores, then we have spent about another INR 30 crores. Roughly, we should be having about INR 610 crores. Of course, that is excluding the internal accruals, whatever we have generated during the month of October. Cash is about INR 610 crores, excluding the money which is generated in the month of October.
Thank you, sir. Best wishes for Diwali, and have a great year, sir.
You too.
Thank you.
Thank you. Participants who wish to ask questions may press star and 1 at this time. Ladies and gentlemen, to also ask a question, please press star and 1 now. The next question is from the line of Lakshminarayanan K.G. from Tunga Investments. Please go ahead.
Yeah, I think question regarding our largest product. There have been difficulty in terms of the other manufacturers to do the product because of the factory closures or whatever. Do you see that more players are coming into it? Now, the main players are shut, and I don't think they have opened their factory as yet. D o you see any other players ramping up or planning to get to production? If so, what is the lead time usually takes place before the new players trying to grab some market share? Is it takes couple of years, or how is that industry to be anticipated?
Lakshminarayanan, there is no such thing that no one will come or they will come, they will not come. You need to accept those. There are few players which are already there in the market. Now, it depends on many factors. It's just not like the being there, like you can sell. You need to have a quality, you need to go through a lot of different things, and there is a lot of hard work which company has put in last 30, 35 years, which is paying off. This is an area, like in biotechnology, you always have to improve your efficiencies, and that is what we are doing. You have to always increase the productivity. The players will come and they will go. You need to stand there, you need to figure out different applications, and that's what we are doing.
Got it. If I just look at our revenues, over the last six months, what percent [audio distortion]
Sorry?
Are you there? [Non-English content]
You're not audible, Lakshminarayanan .
Yeah, he's disconnected since.
Mr. Lakshminarayanan has disconnected. We'll go ahead to the next question. The next question is from the line of Nikhil Upadhyay from SiMPL. Please go ahead.
Yeah, thanks for giving me the opportunity again. Mukund , two questions. One thing you mentioned that you are seeing signs of turnaround in the U.S. market. Last year, one of the challenges was around tariffs and then all this uncertainty. What is driving or what is giving the confidence that the market is now turning around. Is it like the projects which you have given and now you are seeing some of them getting commercially. If you can just shed some light on what's giving you the confidence on turnaround in U.S. market.
In the last few years or few quarters, we spent work on lot of R&Ds, publishing lot of different papers. We are just back from the SupplySide, the SupplySide West, which happened in Vegas. There we saw a lot of different attractions which is coming up, lot of good potentials which we are talking. At this point of time, I won't say that how long it will take, maybe like one quarter or two quarters. What we can say is there is a lot of good traction which is coming up again.
Are these products which you have already developed or you would have to go back to the R&D drawing board, develop the product, go through validation. How should one understand this?
There are like certain products which are already developed, right. Some products you always continue to develop. Even like developed products, you continue to do the lot of different studies, the papers, and that's how like it works. All the clinical studies, different paper, different applications, and that's a continuous process.
Okay. Second question was, if I look at our segmental growth, and I am not talking of quarterly growth here, I am taking our growth numbers from December 2024 as a benchmark. We see animal healthcare, food processing, and Specialized Manufacturing sustaining a 20%-25% quarterly growth, removing that aberration. O n an average, we have grown at that rate. If we have to understand the growth parameter further, would it be right to say it is more driven by newer customers rather than more wallet share with existing customers? How would you explain this sustained growth in these three segments of animal healthcare, food processing, and Specialized Manufacturing?
Here if you ask me, it is more like with increasing the customer base as well, and developing the new products as well. Approaching different geographies as well. That is how you are doing it. Overall, if you look at it, we are very still small players, compared to the global competitors, and there is a lot of room to grow. That is what we are trying to do.
Okay. Just one last clarification. Rauka, on the employee cost, if you look at June quarter, we had a employee cost of INR 45 crore, which fell to INR 40 crore this quarter. Generally, this kind of large variation we have not seen. Was there some one-off in June quarter and is this the base employee cost we should work with?
Yes. June quarter, we were just evaluating the increments. That particular time, the provisioning was slightly higher. I think it was higher by about INR 1 crore or so. The impact of that INR 1 crore is the reversal in this particular quarter. Overall, INR 1 crore inducted is like INR 2 crore down. Then during this quarter, the ESOP cost which we were amortizing, whatever employees who have left the company, we had to reverse that also. Because of that, again, the ESOP cost has gone down, so payroll cost is also down. All these factors has impacted us. Apart from that, even in the U.S. also, payroll cost is slightly lower because of some head counts. These three different things has impacted and it is down in that sense as compared to the previous quarter.
A sustainable run rate should be INR 40 crore -INR 43 crore then, if you remove the one-off?
Whatever cost in this particular quarter, whatever you have got, that number is something sustainable in that.
Okay. I will come back to you.
You keep on hiring, so it is always like, it is very difficult to say that number will sustain.
Sure. Thanks.
Sure, I'll come back in a bit.
Thank you. Before we take the next question, we would like to remind participants that you must press star and one to ask a question. The next question is from the line of Lakshminarayanan from Tunga Investments. Please go ahead.
Yeah, sorry, I think my line got disconnected. I was just trying to ask a question if, what has been the if you are tracking the new products and new applications that has delivered results for us, maybe in the last one year or in the last six months, what is the contribution of revenues coming from new products or new applications which wasn't there a year back or in whichever way you track your new product development? If you can just give some insight, it will be great.
Lakshminarayanan , we do not bifurcate the numbers. I do not have those bifurcations of the number, what is new product revenues and what is this, as of right now.
A s an organization, you have some kind of a KPI which you have. Do you have, and what is that range? It is like 5%, 10% or I am not asking for exact numbers, but just want to understand and appreciate how you track the new product development, in whichever way you are tracking.
I would say it will be very approximate, but if you want the number, maybe around 7%, 8% is coming from the new product.
Okay. Then another thing, how we have strengthening our research has always been strong, and in terms of sales force in the last few months, how we have strengthened either in India or outside, and what has been the progress in the food business in Europe?
You are talking about like a number, or?
There are two parts to the question. No, two parts, sir. I think one, I remember you were strengthening your sales team to outreach clients in India or outside. I want to understand how you have strengthened in the last six months in terms of number of people you have added, either in percentage or absolute number. I just want to get a directional view on it. A lso in the European food business, I think couple of years back, we were trying to make inroads. I just want to understand how, where are we in terms of the European food business, either numbers or qualitatively.
The numbers on the Europe is positive. Even like on a Asian side. [Non-English content ]
Asia, Europe both.
Asia, Europe, both areas it is positive. We are like increasing a lot of different customers out there, some global players as well. We are like talking with few players to even partner right now, but those are the futuristic things. We see a good opportunity going forward as well in the food business at the current markets where we are operating.
Okay. The U.S., right? What is the scenario now? Because there is inflation, there is various other things, and there have been some kind of a client pullback, strike, etc. H ow is U.S. directionally looking for you? Both in terms of your own direct-to-consumer product as well as when you actually are working with companies like DSM, etc. Can you just give some color on both the things?
We are not working directly with DSM. DSM is like one of our competitors in U.S. As of now, if you really look at it, we want U.S. to grow, and we can see some signs of it as of now, and the turnaround we can see in the coming future. R ight now, the situation for the last three, four quarters or maybe few quarters was not very conducive. We hope that it will be turnaround very soon now.
Just on the U.S. thing, is this more of our client-specific issue that the clients who are customers we cater to are not growing, or is it there is a tightness in the overall industry that none of the comparable players like us are actually growing in the markets we serve? What would be the two or three things you would attribute for the relative underperformance of the U.S. markets over a little longer period of time? Just two or three things which you think What is broad thing, but anything specific? Is it that the choice of our client, those clients are not growing, or a particular application to which our clients are serving, those applications are not growing, or the geographies where we are in? What exactly could be the reason, sir? Can you be more specific on this?
The market is like more changing, dynamic. Currently, like the market is driven more by the studies and other areas, and we are doing all of those as we are moving towards that. Particularly, if you ask me, like clients are growing, I don't feel like the existing clients are growing very rapidly or at a very fast pace as of now. W e are also like now working on to add different customers in different areas. Going forward, I don't know about the competitors, and I cannot comment on them, how they are performing and what they are doing as of now. T his is where we are, and we are trying to work on many different areas, how to grow going forward.
Got it. Thank you, sir.
Thank you. The next question is from the line of Ritika Sheth from Ananta Financials. Please go ahead.
Hello?
Hi, Ritika.
Hi. Congratulations on good set of numbers. I just wanted to ask one question. Can you just give us some guidelines with the segment-wise growth for FY 2027 and FY 2028?
Difficult question, Ritika. We don't go with the segment-wise right now. We will do overall the budgeting in the month of February, March, and I can give you more guidelines based on that, maybe the next year. This year, I would say that it's overall, like we. For a longer run, we intend to grow by double digits, mid-level of double digits or lower mid-level of double digits, and that's what we plan.
Okay. What would be the margins?
We are saying that as of now, like for calculation purpose, we are going with 30%-32% of EBITDA level.
Okay. Thank you.
Thank you. The next question is from the line of Abhishek Navalgund from Nirmal Bang Securities. Please go ahead.
Hi, sir. Thanks for the opportunity again. My line got disconnected in between, so not sure if somebody has already asked this question. On this announcement by Novonesis wherein they are going to put more than INR 6,000 crore CapEx in Mumbai capacity, what proportion of our portfolio might get directly exposed to that sort of business? T he segment-wise.
I do not know exactly, but what my knowledge is, they are putting it more for the bioethanol purpose as of now. Bioethanol is like and that is what I heard from the Novonesis people. This is basically for all this alcohol which is being mixed in the petrol and other areas, and that is what their plan is to make that, and that is where they are coming. As of now, if you ask me, we are not present in that segment. C urrent revenue, I can just say, but you never know, is not going to be affected in any of those areas.
Got it, sir. Thank you.
Thank you. The next question is from the line of Abhishek Kamdar from Value Plus Advisors. Please go ahead.
Hi, am I audible?
Yes, sir.
Congratulations on a good set, and thanks for the opportunity. In Q1, we had a little bit of slowness in terms of the human nutrition segment. You mentioned in your press release that the pharma API segment has recovered a little bit in Q2. How are you seeing the rest of the year for this segment? Do you expect a further recovery or something like that, or are you looking at it as being subdued again?
We see that there are actually some more recovery as we move on towards the year end.
Okay, understood. Similar for bio-catalysis, what are you expecting for the rest of the year?
Yeah, so most of the growth is coming from the biocatalyst area as well, when we talk about human healthcare.
Would you be able to quantify how much of human healthcare is in bio-catalysis?
Current quarter, it was like INR 66 million, I guess.
Okay, Q1 was about INR 4.5 crores, Q2 is about INR 6.6 crores?
Yeah.
Okay. My second question is on CapEx. What is our CapEx guidance for the year? I believe INR 123 crores was what you had mentioned earlier, i ncluding R&D and maintenance CapEx?
Yeah, that's the same thing as of now.
How much of this would already be done in H1?
[Non-English content] .
[Non-English content]
One minute. INR 60 crore [Non-English content]
INR 60 crore.
Around INR 50 million- INR 60 million is already spent.
All right. Okay. Thank you and all the best.
Thank you. The next question is from the line of [inaudible] . Please go ahead.
Sir, we have a very small segment in the Indian market called Wellfa. How is that performing, sir, and what percentage would it make? I know it is very small, but what is your thoughts on that, sir?
As of now, we are negligible in this quarter as well, so we are not really counting for the next two years, as we were already mentioned. N ext two to three years, we are doing all the different activities. I n terms of sales, we do not expect big numbers.
Y ou would want to keep it as a part of, a s a going concern and look at it for future growth?
Yes, that is where we have separated it from Advanced. We have made a separate company. We have put lot of different people, because B2C mindsets, you need a different mindset from B2B. W e have separated, including the company, people, and we are working on it very differently right now.
But, sir, three years down the line also, how would you expect it to scale up? Do you at least foresee INR 40 crore- INR 50 crore kind of top line in that?
We expect-
Because that is good product. Products are excellent, sir, in terms of the way everything has turned out is good. What are the aspirations for it?
See, there are very big aspirations, right? You mentioned, right, like INR 30 crore -INR 40 crore, but I will not be able to give you the guidance whether we will be able to achieve that in the three years time or no. That is where it is very difficult right now to give me the numbers. It is a long-term future, what we are expecting from it. In the current two to three years, probably, we are not really counting on the revenue basis.
Sir. Thank you, sir.
Thank you. Ladies and gentlemen, we will take that as the last question for the day. Now I would like to hand over the conference to Mr. Ronak Saraf for closing comments.
Thank you, everyone, for taking your valuable time for attending our earnings call. We will keep you posted for any further updates. I request you all to kindly send in your questions that may remain unanswered. An audio recording and the transcript of this call will be uploaded on our website in due course. Looking forward to host you all in the next quarter. Till then, stay healthy, stay safe, and happy Diwali.
Happy Diwali to all. Bye-bye.
Happy Diwali. Thank you, everyone.
Thank you. On behalf of Advanced Enzyme Technologies, that concludes this conference. Thank you for joining us, and you may now disconnect.