Q3 25/26

Feb 13, 2026

Summary

Q3 revenue fell 40% YoY amid destocking, mix effects and one-time costs, while 9M revenue rose 3%. FY27 growth plans center on new contrast media capacity, backward integration and the CDMO pipeline, but recovery timing remains uncertain.

Ladies and gentlemen, good day and welcome to Blue Jet Healthcare Limited Q3 FY 2026 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 then zero on your touchtone phone. Please note that this conference is being recorded. For cautionary remarks, I now hand the conference over to Mr. Advait Bhadekar from Ernst & Young. Thank you, and over to you, sir. Thank you, Bhumi. Good evening and a warm welcome everyone to Q3 nine-month FY 2026 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 exchange. Also, anything said on this call which reflects our outlook for the future or which could be confused as a forward-looking statement must be reviewed in conjunction with the risks that the company faces. The conference call is being recorded, and the transcript along with the 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 the specific and written consent of the company. From the management we have with us today, Mr. Shiven Arora, Managing Director; Mr. VK Singh, Chief Operating Officer; Mr. Ganesh Karuppannan, Chief Financial Officer; and Mr. Sanjay Sinha, Deputy Chief Financial Officer. Now I request Mr. Shiven Arora, Managing Director of Blue Jet Healthcare Limited, to provide you with the update for the quarter and nine-month numbers for the quarter December 2025. Thank you, and over to you, sir. Thank you, Advait. Good evening, everyone, and thank you for joining us today. Let me begin with a few business and strategic updates before we hand over the discussion to our COO. Vizag greenfield project. We are pleased to announce that the groundbreaking ceremony for our Vizag project is scheduled for this month. This greenfield site represents a pivotal growth platform for Blue Jet Healthcare. In phase I, we will be setting up a dedicated capacity for API and intermediates focused on new products aligned with customer requirements. This project was approved by our board with a total investment plan of INR 1,000 crores over the next 3-4 years. The initial capacities under development are aligned with customer demand and long-term business visibility. We believe the scale, infrastructure, and the geographic advantage of Vizag will strengthen positioning as a reliable global partner in complex chemistries. Hyderabad R&D expansion. We have successfully secured lease space for R&D activities in Hyderabad. Development work is expected to commence from Q3 FY27, further strengthening our innovation pipeline and technical capabilities. Artificial sweetener pipeline. As a part of our focus on specialty ingredients, we are initiating few exhibit batches of the new artificial sweetener in FY27. This will complement our existing high-intensity sweetener portfolio and address a growing segment of global demand. In terms of CapEx update of unit 3, our expansion project is nearing completion. The block is designed for key intermediates in contrast media. The facility incorporates robust safety, environmental, and automation systems and is expected to be ready for qualification in Q1 2027. It will play a key role in de-bottlenecking our supply chain and supporting the future growth. On this note, I would pass it on to my colleague, Mr. VK Singh. Thank you, Mr. Shiven Arora, and good evening, everyone. Let me take this opportunity to expand on our operational progress, CapEx execution, and CDMO pipeline momentum. At our Mahad Unit 3 site, the core block for backward integration into contrast media intermediates is nearing completion. This facility has been designed for one key side chain in our contrast media portfolio, a step that not only improves cost competitiveness but also provides strategic independence from raw material volatility. We have embedded a very high level of automation into this facility alongside strong safety and environmental design. The site is on track for validations in Q1 of FY27, and we have incurred a cumulative CapEx of approximately INR 146 crores to date. This plant exemplifies our approach to securing supply chains and defending leadership in complex high-value segments like iodinated contrast media. On the R&D and CDMO platform expansion that Mr. Shiven Arora touched very briefly. Over the last 18 months, we have doubled our R&D infrastructure and talent pool. As a part of our next phase, we are investing about INR 40 crores to build a new R&D center at Hyderabad focused on emerging technologies, including intermediates for GLP-1s and some other chronic therapies, peptide chemistry, biocatalysis, and a faster turnaround of CDMO-tailored late-phase RFPs. This expansion is designed to support our growing CDMO pipeline, particularly high conviction Phase III and commercial stage opportunities. Currently, we are tracking around 20 active RFPs. Of these, six are high conviction Phase III programs, including a couple of GLP-1 candidates and one contrast media NCE. Two are commercial products that may evolve into strategic lateral entries with dedicated capacity planning. We are also ramping up customer engagement, including onboarding a senior resource in Europe. On sustainability and operational excellence, we continue to embed sustainability into our operations. 70% of our power consumption is now met through wind and solar. Our teams strive for atom efficiency in synthetic chemistry and sustainable process design. We have been recently recognized by the CII and have been awarded the National Award for Excellence in Energy Management. On the operations side, we have built a dedicated process excellence department supported by strong additions in engineering, quality, and supply chain. As a company, we believe in building scale, and you see the same happening at Vizag, Mahad, and our R&D platforms. We remain sharply focused on reliability, responsiveness, and readiness to support our customers across the life cycle, from clinical intermediates to long-term commercial supplies. With this brief, I hand it over to Mr. Ganesh Karuppannan for the financial review. Mr. Ganesh Karuppannan? Hello? Ganesh sir. Hello? He is there on the line, but he is not speaking. Can you just tell him just in case he is on mute? Ganesh sir, please unmute your line and go ahead. Give me a moment. I will just disconnect his line and reconnect him. I request Mr. Sanjay Sinha to take it forward. Good evening, everyone. I will take you first on a year-on-year performance. Revenue from operations has increased. Revenue from it was at INR 314 million last year, and this year it was INR 194 million. Our revenue from operations decreased by 40%, and EBITDA decreased by 62%, and PAT decreased by 39%. Coming to Q on Q performance, the revenue operations has increased by 16%, EBITDA decreased by 15%, and PAT decreased by 23%. The increase in revenue is mainly towards increase in contrast media, where the dispatches were much more higher last quarter and got recognized this year. Offtake, our flagship product, was very stable and will continue to do, major supplier. Gross margin for Q3 was at 52%, slightly lower than our normal trend, mainly due to change in product mix and one-time write-off of inventory. EBITDA stands at 20% for the quarter, lower mainly due to operating leverage of lower sales volume, one-time impact of labor code implementation, and of course, engagement of certain foreign consultants. Hello. Ganesh sir. Yeah, Ganesh. Go ahead, Sanjay. I am taking over from Ganesh. Is that okay? Yeah. Okay. Nine months to nine months, year-on-year, the revenue from operations increased by 3%, and EBITDA decreased by 6%, and PAT decreased by 6%. The increase in revenue from operations was due to increase in sale of PIs this year. Gross margin was at 53% compared to 55% last year, and this is mainly due to product mix. Company reported a robust other income in nine months period with INR 45 million revenue. On this note, One minute. We will open 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 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. Our first question comes from the line of Amlan Das from J.P. Morgan. Please go ahead. Yeah. Hi, sir. First question is regarding the destocking impact that you have highlighted in your opening remarks. My question is, when do you see this destocking impact going away, and how do you see this year ending, especially on the fourth quarter? Do you expect growth to recover on your FY 2025 base in the next year, or how should we think about the quarters ahead regarding this? Yeah. Thank you for the question. See, yeah, there is clearly some channel inventory for which there is some destocking happening. At the same time, there is a supply chain realignment that is also happening. The reason for some subdued orders can be contributed to both of these. Our assessment is that it might take a couple of quarters for this to get completely realigned. If you would see that over the past nine months also, we have done significant volumes as far as our API PI vertical is concerned. To further corroborate the potential and the optimism that we have for this molecule, you need to understand how the end molecule is faring. Month on month, I would say, it is still showing a good mid-second-digit growth, mid-level 2-digit growth. New markets are also opening up. A very big market, that is Japan, is opening up. There are a lot of markets in the emerging geographies that are opening up. The launch in Canada still is going to gain traction. We are still very bullish on this product. We do not see any concern or issue. All right, sir. Thank you for the answer. My next question is regarding the contrast media segment. I just wanted to understand, over the, say, past couple of years, how many launches have you done in this segment, and how has it contributed to your revenue so far? Any product that you would like to call out, which has been a meaningful contributor to you, and how has your market share in this product fared so far? Typically, in contrast media, there were two needle movers for us. One is an advanced intermediate for the existing product that we make, which is currently under validation, wherein we have the capacity ready for the next five years. The second molecule is the NCE intermediate, which has done well for us in the past 12 months. As you recall, on December 24, we had commenced a new line for this NCE intermediate. I think keeping these two together, we have capacities on stream. One is getting validated, one is already scaled up, and the growth outlook in these two molecules is extremely encouraging. These are the two major launches. The third one, which is more of a backward integration play, and we spoke about a line, which is under validation in unit 3. This also could be a significant strategic needle mover for us, both on the bottom line and also on the top line. Sir, how is your market share fairing in this product? Can you assume this market share to be sustainable, or have they gone down recently in your key products? How should we think about it? These are very sticky relations, and in most of these cases, these are backed by multi-year supply agreements. We feel that, depending on the order flow, it is just about execution. In terms of the development of these molecules, we have done considerable work. We are very confident about the qualities and the order flow to go through very soon. Thank you, sir. Sir, just if I could squeeze in one more. I just wanted to understand, in your PI API pipeline, how should I think about it in the, say, next couple of years? How many molecules do you have in, say, the late stage or Phase III assets in your PI API pipeline right now? The late-stage assets are about six. I think they will start kicking in about two years from now. All right, sir. Thank you. Those are my questions. Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference, please limit your questions to two per participant. If you have more questions, please rejoin the queue. Our next question is from the line of Sanjesh Jain from ICICI Securities. Please go ahead. Yeah, thanks. Thanks for taking my question. I have got few of them. First, on the margin. In the presentation, you mentioned that the product mix and the inventory write-off has hurt the gross profit margin. I think with increasing contribution from contrast media, the mix has only improved. Can you give us more color on the inventory write-down? What and which product, and how much did it hurt? Because the gross profit volatility has really been all over the place, and we need to have a little more grip over that. That would be really helpful. That is number one. Number two, you did mention on the realignment of the supply chain for the bempedoic acid. Where are we in that realignment? Because one of our peer in India has also add up a lot of capacity. In this realignment, how do we look our contract, we were at 120 metric ton earlier. Will it positively benefit us? Will it negatively benefit us? This destocking phenomenon, when should it get over and we should start looking at volumes coming back? These are initial two questions. Thank you. Let us take the question on the gross margin. If you see gross margin on a YTD basis is around 53% compared to 54%, 55% last financial year, last. So it is only a difference of 2%, out of which 1% impact is roughly on some certain inventory write-offs, which are old stock, which was sitting in our inventory. So it was a thinning exercise. 1% impact is there, and balance 1% is basically a swing off because of product mix. No, I thought product mix has improved, that 1% should have been positive. So what we are talking is much bigger impact there, right? Just to give you some more idea, in contrast media, we have two approved vendors. In the past quarter, we had sort of increased the offtake from the European supplier. That could have had a marginal impact on the main product of contrast media. At the end of the day, both contrast media and the pharma intermediate vertical is highly profitable with gross margins over 50%, and in some cases, about 55%. On the destocking, I can't give specific guidance, but I think with the molecule gaining new entries in new markets and the growth outlook definitely is very encouraging. The capacities are on long standby, and we are already discussing encouraging volumes with our target customers for FY 2027 and beyond. Should we expect any growth in the volumes in the? Please go ahead. Ganesh here. Sorry, there was some issue. The moderator had muted my phone. Maybe I'll just explain a little bit more on the gross margin. Remember last quarter, we actually talked about change in finished goods and WIP, where goods in transit was pretty higher. I was actually talking about the overhead getting inventorized. To that extent, your gross margin in that particular quarter went up to 65%, because we had a very huge goods in transit, which didn't reach the customer destination as of end of the quarter. Now, that whatever overhead which gets inventorized actually gets released into this quarter when you actually book the revenue. That's how the accounting works. To that extent, you would actually see a slight dip in the gross margin. The way Sanjay put it, if you look at cumulatively for nine months, whatever number we were actually committing, we are in that similar range, 50%-53% of gross margin. If you look at products like saccharin, there is a little bit of reservation. That would have actually contributed marginally to reduction in the gross margin. No, that is very helpful, Ganesh. I think that is clear. On the realignment on the bempedoic value chain, can you help us understand what exactly is happening and how is it going to benefit us? Sanjesh, I think it is a little premature on our part to comment on it, but all that I can say is that it will work in our favor. It is not that supplies from Blue Jet are not going and somebody else is supplying, or the end molecule is not doing well. So I think it is just about some realignment and channel destocking. Yeah. You must also understand that these are advanced intermediates, so any change will have a regulatory pathway. We were the primary suppliers in the past, and we believe that we will continue to be the primary suppliers. That is clear. On the growth in FY 2027, FY 2026 has been quite subdued on the growth side. What gives us a confidence that FY 2027 should be better than FY 2026 in terms of revenue growth and on the operating leverage helping to regain the margins? Okay. I will answer this question by giving you some perspective about the capacity utilizations. The two major lines that we had created, one for the cardiovascular molecule and the other one was for the NCE intermediate on contrast media. Both of them would be positively contributing for FY 2027, which is backed by some customer orders. You have seen in the past year, we have been able to scale up both the molecules well. There is one thing that you add capacities, but at the same time successfully scaling up with right efficiencies, I think there is a proven track record. The third incremental aspect would be the backward integration play for the contrast media intermediates in unit three. While the top-line growth will happen after certain customer audits and validations, but as soon as the line is commenced, we ourselves are a customer for this critical raw material. This will gradually impact the bottom line in the next coming years and some marginal top-line growth. So these three molecules we discussed, and the fourth one is the iodinated contrast media. The validation took longer than expected, but the forecasts are very encouraging. This keeps us very positive in terms of the FY 2027 outlook. From the API, PI basket, we are not looking at any new product to come in FY 2027? We are. But I think we will be giving a positive update in the next quarter for that. There is something very encouraging cooking, but I think we would be in a position to share that in the next quarter. That is clear. Thanks for answering all those questions and Mr. Pillai for becoming with us. Thank you, Sanjesh. Thank you. Thank you, sir. Thank you very much. Thank you. Our next question comes from the line of Shyam Sampat from MSE Capital Partners. Please go ahead. Hello, sir. Good evening. I just wanted to understand firstly on the Vizag land that you mentioned that we have taken possession. Keeping that in mind, what will our CapEx deployment schedule look like for the next FY 2027, given the current volatility that we have with pharma intermediates? How will you be pacing this CapEx? I think as per the board approval, we have committed a CapEx of INR 1,000 crores over the next 3 to 4 years. Specific targets for FY 2027, we will give you in the next quarter. Having said that, the CapEx that we are doing in Vizag is for specific projects which have customer demand. This is not capacity creation in anticipation of a particular order. These are product candidates that have been discussed for many years with our end customers, and this has no correlation to the specific product in pharma intermediate we spoke about. All right. Understood. Sir, the next question that I have is regarding contrast media. In the presentation, you have mentioned that the top 4 players hold 75% of the share. Will our strategy be looking like gaining more wallet share now with those players? Yes. Those 3, 4 needle movers that we spoke about in terms of the portfolio will definitely contribute to the increase in the wallet share, because again, our target is to be a small partner to these large innovators and be a part of their growth story. All right, sir. Understood. Sir, regarding again in the presentation on page 6, we had a line mentioning that EBITDA was impacted by engagement of a foreign consultant. I just wanted to understand the nature of this engagement. Is it one-off or recurring? This would be a recurring expense, and it is more strategic in nature and we can These are all European-based consultant who will be helping the company in strategizing, transforming. So they will add a lot of value. Okay, sir. Thank you, sir. My last question that I have is regarding EBITDA margins. We have been seeing negative operating leverage. Just wanted to understand what kind of revenue threshold do we think we should expect to get back to the 30-plus margin mark? No, that's a combination of product gross margin, and unfortunately, we cannot guide on those numbers. All right, sir. That's all from me. Thank you so much, and all the best to you. Thank you. Thank you. Ladies and gentlemen, please limit your questions to two per participant so that management is able to address questions from all the participants. Our next question is from the line of Nikhil Upadhyay from SIMPL. Please go ahead. Yeah. Hi. Good evening. I hope I am audible. Yeah. Yeah. My question was on this API, PI product. See, last quarter when we had the discussion during the same call, you had mentioned that we are bound by the order and we see visibility on the amount of offtake. I understand the innovator is renegotiating the orders and all, but when the renegotiation happens or a new supplier comes in, how does the business breakup happen between the two suppliers? Because as you said, we would be part of the filing of the innovator and all. Do you see a risk that from what you have done historically, there could be some substantial drop? Or is it like a minimum commitment that this will be maintained and incremental will go? Just some sense, because we do not know how these things happen. Just some sense how the contract category negotiated. No, I think very fair point, and I think I would want to give more clarity on this aspect because it is a considerable part of the overall revenues at this point in time. See, any new supplier entering has a regulatory pathway. That is number one. Number two, we have spoken about the end molecule growing and entering new markets. This is, if you read about the molecule, the indicators are very positive. If at all, there had to be a need to be caution at this point in time, from an FY 2027 perspective, it would be our duty to highlight it. But we do not see those indicators at this point in time. So, we are still positive around this molecule, and we just have to be a bit patient around it. No, I appreciate that fact, but what I am trying to understand is that if you look at FY 2027, the volumes or the amount of business which the innovator would be taking from you, are these firm orders which are signed or is it like it will be more closer to starting of financial year 2027 when these would be signed? Just want a sense on are these signed orders that, okay, this much we will be getting or Just to get some confidence, that is all. No. There are binding forecasts and there are confirmed purchase orders. But at this point in time, it's very difficult to give specifics around that. Hence, there is no need to be worried about the outlook for 2027. Okay. Secondly, we understand if you look at the incremental pipeline from here, there are two contrast media products and one more API PI product, which you mentioned. By the time 2027 ends or we get into 2028, would you see that the business would become more diversified versus what we have today? Or would you say this concentration to few molecules will still remain very high? A bit of both. Because the new launches that we spoke about in contrast media, I think, they are large molecules at the end of the day. So when we set up capacities, we look at an incremental growth year on year for the next five years, wherein we are ready for that requirement. With the new launches in pharma intermediates, yes, there would be some lumpiness because that's the nature of CDMOs. So you should have a two, three-year outlook. But yes, the idea and the endeavor is to definitely add more molecules, and that is one of the reasons the Vizag CapEx has been announced, and we are looking at it very positively. But if you would see the numbers two years back and now, you would see that both product and client concentrations have significantly improved. So I would imagine that we are on the right track and it should stay the same. I mean, it should improve further. Okay, sir. I will come back on this. Thank you. Our next question comes from the line of Avnish Berman from Vaikarya. Please go ahead. Hi, good evening. Thanks for taking the question. I had a question on this new PCSK9 inhibitor. I do not know whether this was answered or not, but my question is about this NewAmsterdam product called obicetrapib, and how do you think it will, when it gets launched in a few years hence, how does this compete with bempedoic acid, given the fact that the results and the trials have been pretty encouraging for this newer product. Of course, the molecule is very potent, and it has strong USPs around it. It is very difficult to make such predictions as to how it will fare because what matters is the phase IV data. Phase IV means that post-launch marketing surveillance data, that is also very critical. There is a pathway for getting to the prescriptions on the physician table. By that I mean that you need endorsement from certain cardiologists, and you need phase IV, and you need outcome trials. While even if this is a great opportunity, it will take a while for it to gain traction. Regardless of that, I think it is a new molecule, so you have to wait and watch just in case there are any adverse reactions or whatever. I think, as far as our opportunity is concerned, we are in a very safe zone. That's what we believe, and that's what the indications that we have. Beyond this, I don't think I'm capable to comment. Okay. Thanks. That helps. Just one question regarding the contrast media. I know that second quarter was marred by some transit issues, but if you look at the nine-month revenue and compare it, the growth is flat. When do we expect a material double-digit growth here, if that is possible? In terms of providing an outlook would be difficult. But I think what I was trying to say that there is scale-up around three molecules. Yeah The molecules are of large volume, high-value products. Okay. No, I understand. Shivain, you talked about this one, the NCE product. Can you also talk a little bit about the iodinated ICM product? I mean, what could be the realizations here and what are the target volumes here? And timelines, I mean, when can we see commercial launch for this product? In FY 2027 you will see the commercial launch, and the ramp-up will happen from Q1 itself, is our understanding. And- Value per kg, it would be higher than our existing end molecule because it is a forward integration play. Okay, and what kind of volumes can we get from here, let us say in the second year, in FY 2028? That is difficult to comment right now. Okay. No worries. I will get back into queue. Thanks. Thank you. Our next question comes from the line of Sujit Lora from ICICI Lombard. Please go ahead. Hi there. Just one thing on the pharma intermediates and all the other questions have been answered. On numbers, while I understand that the contracts are fluid and you do not have quarterly numbers and it is very difficult to guide on that, just a small number here, that last quarter same year, we did a pharma intermediate revenue of about INR 146 odd crore, which is roughly about INR 40 odd crore in this quarter, right? What is the quarterly number one should work at for FY 2027 or what is the annual number one should look at? Is INR 145 crore a right number or is that exaggerated or is INR 40 crore a very underestimated number? Should it be somewhere in between? What is the right number one should look at in terms of normalcy of the supply chain and inventory if that happens? See, one is that we normally don't like to give a guidance like this. The second is that it all depends as to how the orders, they pan out. I think just wait for a quarter. Then the run rate that you will see from that run rate you can extrapolate. Okay. So, a quarter is what you are saying more will take for the things to normalize, is what your understanding is. I think that's a fair assessment to make. Yeah. Okay. Got it. That is it from my side, yeah. Okay, thanks. Thank you. Our next question comes from the line of Ankush Mahajan from Sanctum Wealth. Please go ahead. Thanks for the opportunity. I will just try to understand, sir, that if the end product is giving a growth of mid-double digit growth, that is showing strong prescription on their side also. New markets are also expected to grow in Japan. Just try to understand the nature of this supply chain, how this stocking and de-stocking happening actually, sir. Would you throw some more light actually? Because end products is doing very well. Growth is there. Then they stock it at the earlier level. Can we say before two, three quarters, they stock the raw material earlier at two, three quarters before the launch or something like that? See, we supply the advanced intermediate and this gets converted to the API and which gets converted to the formulation. From the point of supply to the point of purchase, there is about nine to 10 months. When the molecule is new, then you. Yeah. There's a lag of three quarters. Yeah. It's so difficult to give some sort of a number, if you are trying to create a model. But then broadly, yes, that's the type of guidance that you can work with. But still, there is a constant. Whatever the number they are releasing, that growth is there. Yes. Growth is there, and that's why we have been saying that there is channel inventory, and there's some de-stocking happening, and you will see the numbers revive very soon. Just be a bit patient. I think from a stocking scenario to limited product, I think we are at the end of the transition. From the last two quarters, we can say that there is de-stocking. Maybe one more. Not from the last two quarters, but yes, last quarter we did. Maybe we could take it offline if you have more concerns and queries on this. We can explain more about the end molecule, and there are some reports available online about the end molecule in terms of how it's entering new markets, and that could be a good indicator for absorption. Thank you, sir. Thank you very much. Thank you. Our next question comes from the line of Shashank Krishnakumar from Emkay Global Financial Services. Please go ahead. Yeah. Hi. Thanks for taking my question. My first one was on the six late-stage assets. I think last call we did indicate that we have seen some RFPs for one Phase III and two commercialized products. Anything incremental in terms of updates that you might have to share, whether we can see some of these getting converted into orders, say, sometime next year at FY 2028, any update there? Just wait for some more time. I think they are moving very fast and in the right direction. Last time we spoke about two lateral entries. Very advanced conversations are on both of them. To some extent, the capacities that I envisaged at Vizag will be also catering to these opportunities. Just give us a little more time and we will make some announcements soon. All that I can say is that they are moving in the right direction, both the opportunities that we spoke about. Got it, sir. Thank you. That's helpful. The second one on the new sweetener that we are looking to commercialize now. Can we sort of expect it to start contributing meaningfully from FY 2027, or will this largely be contingent on the Vizag capacity coming in, and then we'll probably start seeing this contributing to the sweetener revenue? How should we think about it? I think between FY 2027 and 2028, there are certain milestones that we are working towards. I think in terms of the target capacity that we are targeting is about 10% or $1 billion. For a large molecule, there has to be some work at piloting, in terms of proving ourselves to the target customers. I think in terms of the development, we are very confident. In terms of the pilot quantities in FY 2027, this will give us some very valid indicators in terms of continuous engineering. In the backward integration, Mahad is a very continuous plant. That's why the CapEx is optimized, and that would be the endeavor for this large sweetener as well. Got it, sir. Thanks. That's it from my side. Thank you. A reminder to all the participants, if you wish to ask question, you may press star and one at this time. Our next question comes from the line of Vinay Shah from The Corporate Daily. Please go ahead. Yeah. Good evening, sir. I hope I am audible. Yes. The management has attributed that the recent revenue decline is due to the customer restocking. However, during the high growth period of H2FY 2025 to Q1FY 2026, we observed a nearly 100% spike in trade receivables, rising from INR 177 crore to INR 350 crore. Could you please explain this period of significant credit-led sales and why it was immediately followed by two consecutive quarters of a sharp revenue slump? I did not get your question. Can you repeat that, please? We observed three good quarters, H2FY 2025 and Q1FY 2026, three good quarters, with a spike of 100% trade receivables from INR 137 crore to INR 350 crore. After that, OFS happens and there are two slump quarters back-to-back wherein customer destocking is happening. So the previous three quarters sales were led by credit. Can you please explain this? See, this is normal when a new product is getting launched. I mean, if you track any new launches, then filling up the channel is very critical because getting the product to the patient and ensuring that any prescription that is written gets filled up. This is something which is very normal in the pharmaceutical world. Usually that's how it happens. Actually, I am not able to get your concern. See, if you see in the numbers also, my friend, I think in 2024, the PAT was around INR 160 crores. In 2025, it became INR 300 crores. So after listing, we have been able to double the profits. The endeavor of us is to definitely grow the company. Going forward also, the target launches that we are looking at, I think the outlook should remain positive. Okay. Thank you for your question. Thank you, sir. Okay. Can we expect the next quarter to be better, normalized? Again, as we said, we do not really give a guidance. But like we already mentioned, it may take a quarter or two for this particular opportunity to get back to normal. In fact, be better than the past. Thank you. Thank you. Thank you. Thank you. Participants who wish to ask a question may press star and one at this time. Our next question comes from the line of Alankar Garude from Kotak Institutional Equities. Please go ahead. Hi. Good evening, everyone. Sir, if we adjust for the 50, 60 crores of goods in transit, which you had called out in the second quarter, the contrast media sales have actually declined on a sequential basis. We also would have had the ramp-up of the gadolinium-based NCE and possibly some validation supplies of the iodinated product. In this context, just trying to reconcile the low contrast media sales, was there any pricing pressure or any specific volume impact which you would like to call out? No, sir. First of all, there are no volume or pricing pressure as such. As you rightly said, there was a huge, what we call sales cut-off last year, so this last quarter. It was followed by Cut-off essentially means dispatches have happened. So those dispatches now got recognized. We spoke about it last quarter also. So there is no pressure. No, just to Alankar, just to clarify, the closing cut-off for this quarter is also similar to the opening cut-off. You did not see the impact, but actually our dispatches, if you actually see from a production front, we have a pretty strong production of contrast media this quarter, and the cut-off for December is also similar to the opening cut-off. That is a pretty positive news as far as contrast media is concerned, and we should be recognizing that in Q4. Okay. If I understood this correctly, sir, the goods in transit were higher in the second quarter. Was that the issue in the third quarter as well, and you expect it to be better in the fourth quarter? It is a similar number. Maybe if I go back to Q2, the opening of the quarter, we did not have too much of goods in transit. It was actually more in the closing. So that is why you had a significant impact in Q2. But in Q3, both opening and closing are more or less similar. So the business is as usual. There is a very steady state of dispatches. So it is not that there is a one-off in Q2, which is not there in Q3. I think that assessment is not correct. You would actually see whatever cut-off we have in Q3 getting recognized in Q4. Okay. Sorry to persist on this, sir. Just trying to understand the numbers. If you look at 81 crores of contrast media sales in the second quarter, you had said about 51 crores of goods in transit. We have reported 124 crores in this quarter. Yeah. If I add that, say, 51 crores to 81 crores, the number is actually higher than the 124 crores that we have reported. We are expecting at least some ramp-up after the commercialization of the gadolinium-based NCE, and possibly some validation supplies of the iodinated product as well. Just trying to reconcile these numbers, sir. See, as far as the gadolinium category, the sale is constant. It is almost reaching some sort of a steady state. Although the product is not comparable to the iodinated product. When you look at the key product, our production and dispatches were higher in Q3, actually. The amount we recognized, even considering the opening cut-off, is a bit on the lower side, actually. Because we still have the goods in transit as for December end. It is actually slightly more than what we have as opening. Okay. Got it. This is the point I can explain offline, in terms of this reconciliation now. Okay, got it. Okay. You are saying the gadolinium-based NCE was flat sequentially, and you mentioned about flattening out. Are we expecting any growth here in FY 2027 or- I would say it is a steady state. It is a steady state, and whatever purchase order we have received, the numbers are reasonably stable and sustainable. Got it. Actually, instead of a quarterly, maybe you will have to look at from a yearly perspective. From a yearly perspective, these numbers would be more sustainable. I think just to give you another additional data point on this NCE molecule, I think I was just reading some reports. It is growing by high teens. So that is definitely encouraging from the future capacity utilization standpoint. Okay. So eventually there could be some growth. Okay, fair enough. The other question was, Mr. VK Singh, you said Blue Jet will continue to be the primary supplier for the PI API molecule. What is giving us that confidence? You mentioned about being in discussions and there being some binding forecast, some purchase orders. But this point about being the primary supplier, especially given the realignment in the supply chain, which you alluded to earlier. Just trying to understand this, and if you could provide us some comfort as to what is giving us that confidence. One is the sheer momentum. Two is the quality. I cannot elaborate more. Momentum of what, sir? We have supplied large quantities in the past. You can see the data. That is the momentum that I am talking about. And two, I think our quality is extremely consistent because we are getting it from a very high-tech, automated, and dedicated facility. Okay. Understood, sir. That is it from my side. Thank you. Thanks, Alankar Garude. Thank you. Next, we have a follow-up question from Shashank Krishnakumar from Emkay Global Financial Services. Please go ahead. Hi. Thanks for the follow-up. Just wanted to check, from a normalized gross margin standpoint, should we take this quarter's figures as the normalized margin, or is it likely to be closer to the nine months figures? How should we think about it? I said it should be between 50%-55%, depending on the product mix. Okay. Got it. And just the last one on the Vizag facility. What is the incremental P&L impact that we should try and build in, say, for FY 2027? Because obviously, this will get fully commercialized after a point, but what is the incremental P&L hit in the near term, which we should expect? Ganesh? Most of the Vizag expenses would be capitalized, and we need to just see the portion of expenses that cannot be capitalized, because it's going to be a lease deal and I don't expect any significant P&L impact. Got it. Thank you. That's helpful. Thank you. Our next question comes from the line of Andy from Rave Ventures. Please go ahead. Hi, good evening. Thank you for taking my question. Just have one question. Given the recent moderation in operating cash flow and the announced CapEx program, could you elaborate on how management is thinking about funding this investment? Is it specifically how you expect to balance, say, internal accruals versus existing cash and investments and potential for external financing such as debt refugees? If yes, then what could be the guardrails around leverage or dilution that you actually get on this CapEx? Thank you. Good question. Ganesh, can you take it up, please? Right. We have INR 410 crore cash as of December. We will continue to use internal accrual for the initial phase of CapEx. We have both opportunities open. We could actually tap the debt market, or we could also use the capital market. Anyhow, we have certain headroom to be offloaded to meet the minimum public shareholding of 75%. We have all options. As we get into long-term contracts with the customer, we are also evaluating co-investment options. For us, being a debt-free company, we have all options available. Amazing. Thank you so much. Thank you. Ladies and gentlemen, we take that as the last question for today. I would now like to hand the conference over to management for closing comments. Over to you, sir. We thank you all the participants, and we will meet you in the next quarter. Thank you. 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.