Q1 26/27

Aug 3, 2026

Summary

Q1 FY27 revenue rose 25% QoQ to INR 293 crore, with EBITDA of INR 98 crore and improved operating margin. API recovery and strategic investment support the outlook, while raw-material inflation and transit timing remain uncertainties.

Ladies and gentlemen, good day and welcome to the Blue Jet Healthcare Limited Q1 FY27 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 the conference call, please signal an operator by pressing Star then Zero on your touchtone phone. Please note that this conference is being recorded. I will hand the conference over to Mr. Jagdish from EY. Thank you. Over to you, sir. Thank you, Shruti. Good evening and a warm welcome, everyone, to Q1 FY27 earnings call of Blue Jet Healthcare Limited. Please note the investor presentation and the financial results are available on the company website and the stock exchanges. Also, anything said on this call which reflects our outlook for the future or which could be construed as a forward-looking statement must be reviewed in conjunction with the risk that the company faces. The conference call is being recorded and the transcript, along with audio of the same, will be made available on the website of the company as well as on the exchange. Please also note that the audio of the conference call is the copyright material of Blue Jet Healthcare Limited and cannot be copied, rebroadcasted or attributed in press or media without a written consent of the company. From the management, we have with us Mr. Shiven Akshay Arora, Managing Director, Mr. Vijay Singh, Chief Operating Officer, Mr. Ganesh Karuppannan, Chief Financial Officer, and Mr. Sanjay Sinha, Deputy Chief Financial Officer. Now, I would request Mr. Shiven Akshay Arora, Managing Director of Blue Jet Healthcare Limited, to provide you with the updates for the quarter ended 30th June 2026. Thank you, and over to you, sir. Thank you. Good evening, everyone, and thank you for joining us today. The first quarter of FY27 marks an encouraging start to the financial year and reflects improving business momentum across our core businesses. Over the past few years, we have remained focused on strengthening Blue Jet's manufacturing capabilities, expanding our R&D infrastructure and deepening our customer partnerships. FY26 was a year of building the foundation for the next phase of growth, and we are pleased to see the early benefits of these investments beginning to reflect in our operating performance. During the quarter, we reported revenue from operations of INR 293 crores and an EBITDA of INR 98 crores, reflecting healthy sequential improvement. Ganesh will take you through the financial performance in greater detail. The improvement during this quarter was primarily supported by stronger performance in our API vertical following the normalization of our customer inventory. While the contrast media and high-intensity sweetener businesses continue to provide stability and diversification to our portfolio. Alongside the improvement in business performance, we continue to make meaningful progress on our long-term strategic initiatives. Execution activities at our Vizag project have commenced with key statutory approvals in place, engineering activities progressing as planned. Our Hyderabad R&D center also remains on track and is expected to become operational during the current month, further strengthening our ability to support customer development and expand our chemistry capabilities. At unit 3, backward integration project continues to progress well and remains on track with commercial contribution expected during the second half of FY27. The successful completion of our QIP marks an important milestone in Blue Jet's growth journey. It not only strengthens our balance sheet, but also provides us with the financial flexibility to accelerate the execution of our long-term strategy. Our vision for Vizag extends well beyond capacity expansion. We are building a future-ready manufacturing and innovation platform that will significantly expand our capabilities across GMP intermediates, complex APIs and CDMO manufacturing. The facility is being designed with flexibility to support multiple industry platforms, including high-potency manufacturing capabilities, enabling us to participate in broader range of innovator-led development and commercial programs. Together with our Hyderabad R&D center, Vizag will create an integrated platform from process development and scale-up through to commercial manufacturing, allowing us to strengthen our partnerships with global pharmaceutical and biotechnology companies. Our long-term ambition is to establish Blue Jet as a globally recognized partner in complex chemistry, combining scientific innovation, manufacturing excellence and deep customer collaboration to create sustainable value for our stakeholders. As we look ahead, we remain encouraged by the improving visibility across our businesses. The normalization in our API intermediate business, continuing momentum in contrast media, execution of our strategic expansion projects and strengthening product pipeline collectively reinforce our confidence in the company's medium and long-term growth trajectory. To conclude, we believe this quarter represents more than an improvement in operating performance. It reflects the early outcome of investments we have been making over the several years and strengthens our confidence in Blue Jet's long-term growth strategy. Thank you once again for your continued trust and confidence in Blue Jet Healthcare. I now invite Mr. V.K. Singh to take you through the operational and product development updates following with our CFO, Mr. Ganesh, who will discuss the financial performance in greater detail. Thank you. Thank you, Shrin, and good evening, everyone. As Shrin mentioned at the outset, we have started FY27 with a very encouraging quarter, reinforcing the momentum that we are building across our product verticals. Our objective is to build a globally competitive innovation-led CDMO platform capable of supporting customers from development through commercial manufacturing cycle. This journey is anchored on two strategic pillars: globally competitive manufacturing infrastructure and differentiated R&D capabilities. At Unit 3, as Shrin briefly mentioned, Mahad, we are establishing a globally scaled manufacturing facility for strategically important contrast media intermediates. Once commissioned later this calendar year, and here I must emphasize that earlier we had guided as two, but I think we are slightly ahead of schedule here. This project will position Blue Jet amongst the most vertically integrated players within the global contrast media value chain. Beyond improving cost competitiveness, this project enhances supply security, quality consistency, and strategic independence in the increasingly dynamic global environment. We have invested already about INR 210 crore in this project with a further INR 40 crore committed in the next couple of months to complete this phase. In addition to supporting our internal requirements, we also see opportunities to supply select upstream products to third-party customers, creating additional revenue opportunity over time. Our next major growth platform is Vizag, where we have secured approximately 100 acres for long-term expansion. In phase one, we will focus on expanding our contrast media manufacturing footprint, establishing a multipurpose finishing block, creating flexible manufacturing capacities for select commercial opportunities, including potential lateral entries, developing capacity for a new high-intensity sweetener currently under pilot validation, and establishing a multipurpose intermediate cluster to support increasing customer demand across peptide fragments and related chemistry platforms. This phase represents an investment of approximately INR 1,000 crores over the next three years. Importantly, we have received the Consent to Establish, and engineering and pre-construction activities are progressing well and in full swing. A significant part of phase one capacity has been planned against identified customer opportunities and business visibility, which we believe will help shorten the journey from commissioning to commercialization. What differentiates this investment is not merely the creation of additional capacity, but the flexibility of the platform. We are consciously designing Vizag to support multiple chemistry platforms, multiple customers, and multiple product life cycles, allowing us to respond efficiently to evolving marketing opportunities in the coming years. Innovation continues to remain central to our long-term strategy and a core driver for value creation. Our upcoming R&D center has been designed to significantly strengthen our CDMO capabilities across future-oriented chemistry platforms, including peptides, GLP-1 intermediates, biocatalysis, continuous manufacturing and flow synthesis, and complex synthetic pathways. First phase is expected to become operational during this month itself, and we have already onboarded the critical scientific talent to accomplish what we have set out for phase one. This investment will significantly enhance our ability to respond faster to customer requirements and expand our portfolio for differentiated products. Over the last few quarters, we have consistently spoken about strengthening our development pipeline. We are now beginning to see tangible conversion of that opportunity funnel into executable programs. During FY27, we expect to launch three candidates within the contrast media segment, alongside initiating pilot activities for a new high-intensity sweetener. From approximately 20 high conviction and NCE opportunities we have been tracking, we now have visibility for four programs with the chronic therapy space, which are progressing well through customer development activities. Collectively, these investments strengthen not only our manufacturing footprint, but also our ability to participate in larger, more complex, and longer duration customer programs. Sustainability is a value very close to our heart and integral to how we create value. Approximately 70% of our energy consumption is solved through renewable energy, including wind and solar. We are also pleased to have received the EcoVadis Silver Medal, reflecting continued improvement in our sustainability performance, in addition to the CII National Award for Excellence in Energy Management, which we announced in the last call. As we look ahead, our priorities remain unchanged. We will execute with discipline, we will strengthen our technology platforms, deepen customer partnerships, and create sustainable long-term value for all our stakeholders. Thank you. With this, I hand it over to Ganesh to take you through the financial review. Hi. Good evening. I will start with high-level operational performance. During this quarter, we reported a turnover of INR 293 crores, an increase of 25% over the previous quarter. Our reported gross margin at 53% is a reduction of 3% over the previous quarter, and reported operating EBITDA is 33.5%, compared to 30.4% in the previous quarter, an increase of 3%. Our profit after tax for the quarter is 26.7%, against 27.4% in the previous quarter, a reduction of 0.7%. Getting into details of sales. The growth in turnover was driven by PI and API segment. We have restarted the supply of intermediate, which was impacted by de-stocking by the customer in the last few quarters. Given the order visibility in this particular molecule, we believe this performance can be sustained for FY27. Although contrast media declined, we had indicated in the past that revenues from certain customers are recognized only when the product reaches the customer's location as per commercial terms. During this third quarter, there were transit delays due to non-availability of containers and longer transit time due to the current geopolitical situation. Due to these factors, we had higher goods in transit during the closing of the quarter compared to the previous quarter, resulting in lower recognized sales. To recall, Q4 2026 also was an exceptional quarter for contrast media, as customer had strong offtake. Moving on to raw material. We have seen significant increase in raw material price across board, post geopolitical situation, to be very precise, from March. Raw material price increase has partially impacted Q1 performance as material consumed were more from purchases made in the previous quarter. Given the current geopolitical situation, raw material pricing trend will be uncertain in the period to come, and it will be difficult to forecast the impact in the current scenario. Moving on to gross margin. Reported gross margin at 53% is lower by 3% compared to the previous quarter. This reduction is partially through raw material price increase and due to product mix. Being in the CDMO business, our customers are resilient enough for a pass-through of raw material cost variance with a few quarter gap. Moving on to operating EBITDA. Our operating EBITDA at 33.5% is an increase of 3% over the previous quarter. This expansion of gross EBITDA margin is on account of operating leverage on a higher sale. Profit after tax at 26.7% is lower by 0.7% than the previous quarter. We had higher other income in the previous quarter driven by exchange gain. Moving on to CapEx. Our expected capital expenditure for the next three years will be INR 1,000 odd crores, and we expect to spend approximately INR 250 crores in FY 2027. With this, we open up the floor for Q&A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your 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 questions. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Ladies and gentlemen, we will wait for a moment while the questions queue assembles. The first question is from the line of Saminiti Joy from Kotak Institutional Equities. Please proceed. Hi, team. Good afternoon. My first question is related to our contrast media business. Our revenue declined by around 40% on a sequential basis. Ganesh, sir, you highlighted that there was certain de-recognition of revenues which were actually postponed to the next quarter. Could you quantify this quantum of revenues which will be recognized in 2Q? Also in this context, if you could provide the utilization levels for contrast media for us in 1Q and in the previous quarters as well. Maybe I'll just take the first question. Closing cutoff, what you call goods in transit, is higher by INR 30 odd crores compared to opening cutoff. In other words, the goods in transit is higher by INR 30 crores, and in a nutshell, that is the sales we would be recognizing in the next quarter. Any color on the utilization levels? Plant utilization level? Yes. That we are at 70% odd. They are steady. In terms of production, there is absolutely no change. If you look at from production to dispatches, that is going at 100%. Okay. My second question, for the iodinated contrast media intermediate, has there been any development towards supply of commercial batches, or are the validation batches still ongoing? We hope to start the commercial batches very shortly. We would see some positive trend either by end of Q2 or beginning of Q3. End of Q2 or beginning of Q3. Yeah. Thirdly, just another bookkeeping question. The other operating income for us this quarter was INR 15.5 crores. What was the main reason for the jump? It used to be earlier around INR 2-3 crores. I think couple of things. One is on foreign exchange gain. Second, we also have higher interest income, because if you notice our total investment and mutual fund is also going up. But if you compare it with Q4, we had a much higher Forex gain and an insurance claim. That's why if you compare it with Q4, the number would be lower by INR 7 crores. But I would actually attribute the predominant part of INR 15-16 crores to more on Forex. No, sir. Actually, I was talking about other operating income. Okay. Those are the elements under T-cell. Yes. The other operating income is driven by byproduct sale. This is actually linked to the product mix, what we have, and the byproduct which is generated. If the product mix has more of API, to that extent you will have higher other income. Does that mean that the entire incremental 14 crores, that is pertaining to the PI & API segment, or how do we perceive this? Sorry. What you are referring to is export incentive. That will be based on our export commitment, whatever we have. Do we expect this quarterly revenue to sustain by 2027? Pratap, it depends on your export necessarily. It's just a percentage on your export where we take the. It will be the same range. If you see the percentage to exports, that will be the ratio always. If export is- Okay. That is the approach. Okay? Okay. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Sanjesh from ICICI Securities. Please proceed. Yeah, thank you. Good evening to all. Thanks for taking my questions. First question on the Bankura. This quarter, API has jumped quite sharply. Can you help us understand what is the visibility for API? Unlike last year, will it be equally volatile, lumpy, or you think the incremental inventory or incremental sales because it is more linked to how the end market is growing, so it will be more secular? How should we think about API revenue? Hi, Sanjesh. That's- Hi, sir. I think both. There is clear secular growth at the front end. The formulation market or the prescriptions or the patients, there is very consistent consumption and very strong monthly or quarter-on-quarter growth. On our side, we have a strong order book now. The plant is running very consistently. Production is happening consistently. At least for the next three or four quarters, I think we have very good visibility. Got it. Second, on the price increases, we said that it comes with a lag for the contract. I think that is true for most of the contracts. I don't think we would have had any material pricing pass-through in this quarter. On a blended basis of the portfolio, how much price increase are we expecting, largely because of the increase in the raw material prices? We have not. There is no price increase clause which we have triggered in this quarter. Okay. To answer your question, it is a combination of price increase as well as rupee devaluation. Okay? Right. There is a price increase which is actually getting offset by rupee devaluation. Being a long-term contract, we actually watch for raw material price to stabilize. As we speak, we are looking at August trend, and on a case by case, we will actually evaluate how this price increase would be actually passed on. Do you want to add on to this? Yeah, just to add on to that, I think, Sanjay, the situation is a bit dynamic, but the segments that we operate in, I think the customers are quite flexible in understanding the situation, and I think it's a known fact, and they've been very supportive so far. I mean, our contractual indicators, but in general also, across the board, there's a lot of increase in the solvent prices you might be also aware of. Correct. Got it. The last question on the Mahad CapEx. Now we are spending INR 250 crore. I know a small portion goes into APD, CPT, but what else we are planning to use Mahad facility for? I think the immediate focus would be to validate this production line and scale up these quantities. This particular CapEx that we've done, I think it helps us to make a few derivatives for contrast media. Just like APD, CPT, there are other derivatives also that we can evaluate. It's a flexible line and so far we're just validating the equipments over there, and hopefully we'll start the production as we mentioned. Just to add on to it, are we registered for the APD, CPT? Because I think that would be one of the requirements because it's a pharma product, right? Sanjay, this is very confidential. We cannot really speak on these aspects. We are tied with very strong CDAs. I think it'll be inappropriate on our part to share anything more than what we have. No, that's fine. That's fine. Just one thing. We were also planning to do the new high-intensity sweetener here, sample batches. We still intend to do that. Does the plant have the capability to do that or we need to wait for Vizag plant to commercialize for our new high-intensity sweetener to roll out? As we mentioned, right now we are in the pilot stage. The pilot is happening in our existing facility, and the real scale-up will happen from Vizag. You are absolutely right. But some revenue will start ticking in from the existing facility, right? Let's see. But yes, that should happen. The last one on any new product pipeline you want to talk about, some late stages we have been talking about for the last few quarters. Where are we in the process? Any success there which could come in share price 2027 or 2028? We feel that at least two of these opportunities, the high conviction opportunities which are shaping up well, should fructify in the timeframe that you have mentioned. How large they would be, we should neither guess nor guide at this moment. But the two that we are talking about are interesting and significant opportunities with the innovators. With the innovators? Yeah. Got it. One last on the R&D efforts of the new facility at Hyderabad. What will be the focus area there in that facility? Sanjay, I think you are very well conversant with the platforms that we are very strong in, and the platforms on which the current business is built on. Going forward, we thought that there should be platform diversification, not only to be able to increase our addressable market, but because of the CDMO tailwind that we are seeing, the inquiries that we started getting were also on many occasions on platforms which were those which we did not have. The new R&D setup will have certain new platforms which we spoke about, and significant RFPs are coming on that side, and that was the reason that we have, on a very rapid scale, onboarded very good pedigree talent for that R&D. Got it. Thanks, Saurabh. Thanks for answering all my questions, and best wishes for the coming quarters. Thank you, Sanjay. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please submit your questions to two per participant. The next question is on the line of Naveen Nair from Nuvama AMC. Please proceed. Thank you for the opportunity. I just wanted to check on the rise in the PI & API segment. Is it only to do with our supplies to Europe, or have you also started to supply to Japan? At what timing? I would say we will guide you at the appropriate time. At this stage, the businesses that we had, we have extremely good visibility and a very strong order book, but at the right time, we will specifically guide you on that. All that we can probably say at this point of time is that as suppliers of intermediates, we are globally qualified. Got it. When we speak of the visibility being there for the rest of the year, are we also accounting for the two or three molecules and a couple of lateral entries that we have been thinking of in recent times, or this is only for the existing portfolio? We are accounting for some new opportunities, but since, as you understand, whenever we get to these new products which are in different NCE phases, then the first phase is the trial quantities or the validation quantities. Those small quantities are factored in. But the main bulk of what we believe we will do on the PI segment will be from the existing commercial portfolio. Got it. That's helpful. Thank you. Thank you. The next question is from the line of Aryan Mehta from Charos Capital. Please proceed. Hello. Yes. Yeah. A large custom synthesis player in the latest earnings call commented about signing long-term contracts with two customers for iodine-based contrast media. Commercialization for one has already started, and they might even enter jodoline. Should we consider this as a tailwind, considering that we can sell them KSMs or intermediates, or are they backward integrated enough, so this could be a headwind for us? I'd like to- I don't know if the question is for us, but difficult to answer it without knowing the company you spoke about. Divi's recently mentioned this in their earnings call that they've signed long-term contracts. Okay. But I don't think so we give any customer-specific guidance. Okay. Can this be a tailwind for us, considering they can be a potential customer, or do you see this as competition? Hard to answer this question at this point in time. Okay, sure. The four programs that you mentioned earlier in the call, by when can we expect some commercialization? I know it will take some time. We are in validation batches. Also in the previous call, you had mentioned two molecules where we have lateral entry and dedicated blocks at Vizag. Is the potential for these two lateral entries similar to the anchor, like the cardiovascular molecule we have? I will take the first part first, that on the NCE opportunities that we are guiding, we still maintain that two of them should fructify. The initial quantities that will go will not be significant because they will be small validation or clinical type of quantities. But then the programs are moving with high conviction forward into the next phase. On the lateral entries, I think maybe it will be better if we make some definitive comment in the next quarter. Sure. Thank you and all the best. Thank you. Thank you. The next question is on the line of Venkat from Three Sigma Financials. Please proceed. Thank you for the opportunity. You are able to hear, right? Yes, sir. Can you please share the growth numbers for the next quarter? My first question is on growth numbers. Also, the buyer of the innovator has offered some $40 million incentive if they increase the sales to $350 million, which is more than 100% of the last year's sales. Will this translate to an equal amount of growth in sales for us, and do we have the capacity for that? The next quarter numbers, I think Ganesh will answer. But on the sale aspect, if you are indicating the cardiovascular opportunities, we go more by the orders that we have on hand. We would rather avoid prospecting or going on to any type of hearsay or something. So we rather stick to the orders that we have. No, this is not a hearsay. This is the statement made by the CEO himself of the innovator company. So we'll see how it translates, because it has to translate into orders for us, and we have a good order book right now, and we'll update you the moment we have any further information on that. But I think that's a very good observation you made, and these are encouraging signs for the candidates that we are tracking. Hopefully, it turns out well for us also. Okay, good. Then the next thing is, during the initial call, you mentioned about four molecules are in commercialization phase. Can you throw some light on those four molecules? Where are we? What therapeutic areas are they covering? You mentioned they are chronic, but what therapeutic areas are they covering? They are in the chronic space. There are a couple of opportunities on the oncology side and some on the CNS side. Then there's another category that we are prevented by CDA from mentioning. But at a top level, that is also in the chronic side as well. Okay. Sir, in the last quarter, you have mentioned about peptides. You're introducing peptides in your R&D. In this quarter, you did not mention anything. It looks like the whole world is moving towards the CDMO world is moving towards peptides. So what is our strategy and how are we planning our investments moving forward? Because so many CDMO companies are moving towards peptides. If you can throw some light, that will be great. I think it is a very good observation that you have. But if you would just look at what we spoke in this call as well, we did mention about peptides and peptide fragments. We very clearly mentioned that while we have capability today, we as a company are also looking at it as a big opportunity. At the Vizag expansion project, which is going to set the footprint for manufacturing for the next several years for Blue Jet, we are planning a capacity for peptides and peptide intermediates. Your observation on a lot of capacity or a lot of people talking about peptides is also very correct, and it is for this reason that our first port of call is not so much the end peptide. We are looking more at peptide fragments because the DNA of Blue Jet is more about intermediates. That is why we will be looking at first the peptide fragments, where we see much more price resilience. Then, of course, forward integrating into the final peptide will be a natural outcome, but very selectively on the CDMO model for either the very large CDMOs or the innovator companies. We will not be participating in the front-end generic peptide opportunity, where you see clutter and a lot of price erosion. That is okay. Thank you very much, sir. Appreciate giving me a call. Thank you. Before we take the next question, we would like to remind participants that you may press star and 1 to ask a question. The next question is from the line of Manan Panday from Wallfort PMS. Please proceed. Thank you so much for the opportunity and congratulations to the team. Oh. Sir, one of my question was that I understand that you all have CDAs. Yet I just wanted little bit more understanding that you said in CMI, then in the sweetener space and in the API, we got a few candidates. Could there be any names that you could give or what kind of molecule is it? Any idea on those three spaces? Could you give us that, sir? I think as soon as we scale up these molecules, we will ask for specific exceptions and perhaps be in the position to disclose this information. But I think since we've been in this segment for quite some time in contrast media and artificial sweeteners, I think the selection of molecules is quite encouraging and hopefully it can lead to better conversions. Okay. Okay, sir. The next question would be on asset turn. I understand that company does not really give any guidance. I was just looking at the past, and we were able to do about 4 to 5 times of asset turn. I just needed an understanding from your end that we are doing a first phase CapEx of around INR 1,000 crores. Just to get an understanding that we already have around INR 300 crores in our free wealth. What could our asset turns look like? Not one year or two year, maybe three, four years from now, what could our asset turns look like? See, today, if you look at our significant CapEx is going to be in Vizag, and commercialization would start from end FY 2029 to FY 2030. So it is maybe not appropriate to put a number at this stage because to achieve the ramp-up, maybe one would actually look at FY 2031 or 2032. Based on the investments and based on the product we are looking at, we expect the industry norm, whatever we will be achieving. I think that's one. And second, the current asset turn is because of our depreciated asset values. I think that is something you will have to keep in mind. So the 4 or anything above 3.5 is a bit on the higher side. And once you see the capitalization, we will be at par with the industry standards. Okay, understood. That's it from my side. Thank you, sir. Thank you. Thank you. The next question is on the line of Amlan Das from JP Morgan. Please proceed. Hello? Mr. Das, you may proceed with your question. It's not there. As there's no response from the current participant, we'll move on to the next. The next question is from the line of Satish Sorap from Sri Sagar Capital. Please proceed. Hey, thanks for the opportunity. Am I audible? Yeah. Yeah. My first question would be pertaining to recent, I think approval for Merck, Lipfendra, right? Which also is into this oral product focused on lowering cholesterol. Is that likely to be, say, one of our potential commercial competitors, going forward, any color that you may have? Because even the cholesterol-lowering effect also has been quite encouraging for this product. Any thoughts or comments on that, sir? We, honestly speaking, we are suppliers of the intermediate, and we are not experts on the PK/PD or how the molecule behaves or its capability on cholesterol lowering. All that we can say, and that's a conversation that we can have offline more for academic interest. All that we are concerned with is the visibility that we have and our order book, which is all very robust. We have very good forecasts for the future. In all three key markets, U.S., Europe, and Japan, the molecule is getting some extremely good traction and extremely good clinical reviews. I would imagine that, while we can always debate on threats from new entrants, that's the reality of the pharmaceutical world. As far as we are concerned, the order book is robust, and we are very confident of the next several quarters. Okay, sir. That's really encouraging. Sir, one of the focus areas of the management has been to diversify its API portfolio. You have talked about multiple programs apart from the cardiac one. If I look at, say, 2-3 years out, do you think that, if I look at, say, FY 2027, or if not, even for FY 2029, will those new offerings or new molecules that you are currently investing in would say diversify the order book enough or adequately? Say, for example, they contribute more than 50%, 60% say 3 years down the line, because currently it seems, it revolves more around API. That's the nature of the beast. It's not as if it's specific to Blue Jet, but most companies who have embarked on this journey have initially had to rely on one or two success stories, and then they have deployed that cash as well as scientific capability to then build it further. Any color on that, sir? How confident are we about the coming molecules and what percentage are they likely to contribute? Just based on high-level numbers, like say in FY 2030 or something like that. I think your observation is very valid and spot on. In your question, you have yourself partially answered the question. One part is that there will be diversification and therefore automatically the concentration that we have on the API segment will get addressed. There will be diversification as far as product is concerned. There will be diversification as far as platform chemistries are concerned. In this, like you mentioned, that is the nature of the beast. We have indicated about 20 RFPs that we are tracking, but these are high conviction RFPs. The total RFPs that we are tracking are actually more. Even if we say that 20% of the high conviction RFPs will materialize, I think we are looking at a very good portfolio in the next two, three years. Even for the innovator companies, it is not easy to predict that when the molecule crosses the regulatory phase and enters the commercialization phase, how it will gain access to the market and how the prescriptions will roll out. Given that they are all in the chronic space and they are with very large companies, I would say that these could possibly be opportunities to reckon with. You got it. No, thanks. Sir, my another question would be that we recently were awarded the EcoVadis Silver Medal. Now we are seeing companies trying to further move up, like from gold to platinum. Just for our understanding, do these say certifications really help us in commercial success as well? For example, say, RFPs from certain geographies mandate that or give us extra points for having such certification. Or it is more like because most of our peers are also now going after, so maybe it becomes more of a hygiene factor. Any color on that, sir? See, at Blue Jet, this ESG maturity is something that we have been tracking for the last five years very consistently. Our renewable energy capabilities were built about three years back, and it was a blend of both solar and wind, because if you have just one, then the impact is a little more lopsided. Besides that, there are a lot of other things which are happening in the company as far as the ESG part is concerned. Now, your observation is very valid that today this becomes an essential factor. It may not help us so much, I would say, commercially, but given the environment, it is no longer good to have, it is a must-have, and it is like a part of the prequalification process. Got it. A partner's newer capability on the renewable part, but with the certification, each qualification becomes simpler because then the audits become simpler. They do not have to dive deep because a third party has already certified us. It helps in that fashion. Got it. It is more also about agility, right? If I understand you correctly. Absolutely. It is speed of prequalification. It is like saying that the boy is not only smart, but he is a BTech engineer, so then you hire him. Oh, wonderful. Wonderfully explained, sir. My last question- Sorry to interrupt, Mr. Sachin. May we request you to join the question queue again? Sure. As there are several other people waiting. Thank you so much. Yeah. Thank you. The next question is from the line of Viraj from Kotak AMC. Please proceed. Yeah, hi. Thank you for the opportunity. First, from your contrast media segment. How are you seeing the market for your CMI products, especially from the point of view of your major customer who is over there? How are the trends that you are seeing there? Also in terms of the iodinated API scale, how is the traction there? Are there any sales for this quarter? Fair to say that in contrast media this quarter as well as Q1, all of the growth has majorly been volume-driven? I think, just trying to give you a general feedback around contrast media. I think the overall segment is doing well, and the usage of contrast media across geographies is increasing. From our standpoint, the offtake requirements are quite stable. As you are aware that they are backed by long-term arrangements. We see a lot of stability in this segment and a good traction because we would be launching a few intermediates in this space too. In terms of iodinated product, I think Ganesh has already answered, so we need to wait for some time, but the customer feedback is quite encouraging for a scale-up to happen. Okay. I think it was mentioned mostly that price was not the order port of call. I think that was what I took away. I think in terms of, one last, in terms of your Mahad CapEx. If you can refresh, what was your CapEx plans there and as of now, how much in capital is? Mahad is yet to go commercial, so everything is in work in progress, CWIP. Once it gets commercial, you would actually see an addition of anywhere between more than 200 crore in the asset block. Okay. Fine. Got it. Mahad as a whole for the contrast media segment could be both for backward integration as well as for making the end product contrast media? No, this is only for backward integrated product, which goes into the intermediate, what we make. Today we are dependent on imported supplies. Right. We will be making everything captive. We will also have an opportunity to have third-party sale once we stabilize. Got it. the operation. Got it. Finally, just in terms of your CapEx guidance- Sorry to interrupt, Mr. Viraj. May we request you to join the question queue for a follow-up? Thank you. The next question is from the line of Amlan Das from JP Morgan. Please proceed. Hi, I am audible now? Yeah. Awesome. Yeah. Sir, my question is regarding the margins. In the next quarter, if we assume that the Kusum Kranti dispute gets resolved, how should we think about the flowing to EBITDA from the incremental INR 30 crores you'll settle that you'll be booking in the next quarter? Would we see a substantially better from the current levels? See, this cutoff is an ongoing topic. Only when there is a significant variation between the opening and the closing, then you have such issues. If you have identical numbers, then technically you won't have this challenge. To me, this is part of the business. I think the way our customer contracts are in place and with the accounting standards, this is how accounting would work. We actually take it more as part of the business and this is just to highlight why the turnover was lower this quarter. We cannot actually predict what the closing goods and transit would be for September quarter. So it depends how that number is, then only we can actually come with some meaningful assessment. Otherwise, this stock would be recognized as a turnover once it reaches the customer. Okay. That is helpful. Next, I made mention in the opening remarks. Do you maintain your FY27 Capex guidance of INR 400 crores, or has there been any increment in this Capex guidance for this year? At a company level, it will be a similar amount. Understood. Thank you, sir. Thanks for the opportunity. Thank you. The next question is from the line of Ravi Purohit from Securities Investment Management. Please proceed. Yeah, hi. Thanks, and congrats for a good set of numbers. Most of my questions have been answered. One question, the two lateral entries that we refer to, you mentioned those are the innovators. Can you give some background as to how are those already established commercial products? If so, are these a few hundred million dollar products or a billion-dollar product? What can be, roughly, if you-- I understand you can't just specify the brand, but if you could just give some background, it will help us understand better. See, we have already mentioned that the space is chronic. They are lateral entries, which means that the products are commercial in mature phase and they are blockbusters. As I said earlier as well, we would be in a better position to speak about them in a quarter. Okay. Great. Thanks a lot and all the best. Thank you. Thank you. The next question is from the line of Saminiti Joy from Kotak Institutional Equities. Please proceed. We have been talking about 20 RFPs, of which there are some related to peptides and GLP-1. Would you be able to quantify how many of these RFPs are for this segment? Yeah, we intend to give this clarity in the coming quarters. Okay. The other question is, given there are multiple Indian CDMO companies which are now investing for this peptide space over the next few years. This is going to be a fairly competitive environment in the next 3 to 4 years. So what do you believe differentiates Blue Jet from these other players? Also, if you could talk about some of the capabilities which you're planning to install. Are these liquid or solid phase reactors, or are we mainly targeting short-chain or long-chain peptides? What kind of reactor sizes are you planning? If you could elaborate on this part. As I mentioned, in the first phase, we'll be looking at peptide fragments. So it is not so relevant at this point of time to speak about solid phase, or most of these fragments will be liquid phase. If you would see the last 4 or 5 years of how the company has performed, then you would realize that it's about how we choose the segment, how we choose the category, and how we choose the product. So we'll be very selective in it. We are not going to become a catalog company, and the way we will choose the client and the product, I think the margins will be in step with what we have today. Thank you. The next question is from the line of Nishant Gupta from Kotak AMC. Please proceed. All my questions have been answered. Thank you so much for the opportunity. Thank you. That was the last question for today. I would now like to hand the conference over to the management for the closing comments. Over to you, sir. Thanks for the participation, and we hope to meet you again with Q2 investor call. Thank you very much. Thank you. On behalf of Blue Jet Healthcare Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.