Q4 24/25

May 14, 2025

Summary

FY2025 delivered record revenue, EBITDA and PAT, with strong PI/API growth and improved margins. Capacity investment, new molecule launches and CDMO demand support expansion, while contrast media timing and working-capital needs remain watchpoints.

Note that this conference is being recorded. I now hand the conference over to Mr. Advait Barekar from EY LLP. Thank you, and over to you, sir. Thank you, Neera. Good evening, and a warm welcome, everyone, to Q4 and FY 2025 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 the audio of the same, will be made available on the website of the company as well as on the exchanges. 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 specific and written consent of the company. From the management we have with us Mr. Shiven Arora, Managing Director; Mr. V.K. Singh, Chief Operating Officer; Mr. Ganesh Karuppannan, Chief Financial Officer; and Mr. Sanjay Sinha, Deputy Chief Financial Officer. Now, I would request Mr. Shiven Arora, Managing Director of Blue Jet Healthcare Limited, to provide you with the updates for the quarter and year ended 31st March 2024. Thank you, and over to you, sir. Sir, may I request you to unmute your line, please. Thanks, Advait. Good evening, everyone, and thank you for joining us. I am pleased to report that FY 2025 has been a record-setting year for Blue Jet Healthcare. With significant progress across all operational and financial metrics. Our performance reflects not just top-line growth, but a meaningful improvement in quality of earnings, driven by new capacity additions, operational leverage, and disciplined cost control. Sharing some financial highlights. Q4 FY 2025 revenue from operations stood at ₹3,404 million, up 7% quarter-on-quarter and 85% year-on-year. EBITDA for the quarter was ₹1,400 million with margins expanding to 41%, up 39% in Q3 and 29% in Q4 last year. For the full year FY 2025, we closed with a revenue of ₹10,300 million, growing 45% year-on-year. EBITDA stood at ₹3,777 million at a 37% margin, up 65% year-on-year, and PAT was at ₹3,052 million, which is also up 87% year-on-year. These results mark our highest ever revenue, EBITDA, and PAT on both quarterly and annual basis. Sharing some of the growth drivers. Starting with PI/API segment. Revenues grew more than four times year-on-year, driven by a scale-up of the cardiovascular intermediate that was launched in H1. Decent capacity utilizations achieved by Q4. Customer uptake continues to track well into FY 2026. In contrast, media, despite a muted H1, the segment stabilized in H2. New product validations translated into commercial sales in Q4, including a key NCE molecule. Further scale-up is expected in H1 FY 2026. In terms of high-intensity sweeteners, there is a marginal growth of 4% despite global headwinds. Volumes have been remaining stable with improved price realizations. Sharing some operational highlights. We have been able to add 157 KL of new capacity across two phases in Unit 2, Ambernath. Commissioned a new contrast media block in Q4, which is now in commercial production. We have committed ₹400 million for new R&D center focused on amino acid derivatives, advanced intermediates, and late-stage NCE intermediates. We maintained a strong cost discipline. Freight and power costs are well optimized. Gross margins are stable at 55%, and EBITDA margins have improved from 32% to 37%. In terms of cash flow and liquidity, cash and treasury investments of ₹2,848 million as on 31st March 2025. The company remains its debt-free status, and the company has declared a dividend of ₹1.20 per share, which is subject to shareholder approval. In terms of outlook, with strong customer demand visibility, multi-year contracts, and capacity headroom, we are confident of sustaining a growth momentum. Mahad Unit 3 backward integration facility progressing well, which is redesigned for continuous processing, expected to go live in H2 2026. We have been increasingly seeing a strong traction from Europe-based innovators supported by new business development hires. Things like adoptions of GLP-1s, NCEs, and global CDMO de-risking from China is creating long-term opportunities for us. We thank our employees, customers, and shareholders for their continued support. With that, I now invite Mr. V.K. Singh, Chief Operating Officer, to walk you through the operational strategy and capacity update, followed by Mr. Ganesh Karuppannan, the CFO, who will take you through the financial details. Thank you. Hi. Good evening, everyone, and welcome to the call, the first of this new financial year. As Mr. Shiven Arora has shared the results of the previous year, I think they are very encouraging, and we are all very excited to speak to you all. The new CDMO capacity catering to the API and CMI segment at Unit 2 Ambernath is completely on stream now, and its consistent production schedule due to high order visibility is online. Currently, we are running this capacity at about 60%-65% capacity utilization. The cardiovascular intermediate that we supply from this capacity to the innovator is gaining good traction and has shown consistent growth over the last several quarters as the molecule as such is doing well in U.S., Europe, and ROW markets. The prescriptions have grown by more than 60% over the last calendar year, and we believe that this momentum shall be maintained. We are confident that based on the capacity that we have installed, we are very well poised to capture any uptick in the demand. At Unit 3 Mahad, we were creating a capacity for backward integration for the CMI segment. This is a highly engineered plant on continuous process for making the KSM for our CMI product. Work is ongoing and in full swing. As indicated in the past, this site should be ready for validation and will go on stream in H2 of FY 2026. With this plant going on stream, we strengthen our position as a credible and leading supplier of CMI to all the leading innovator companies operating in this segment. We further demonstrate our resolve to retain our leadership position in the CMI segment. We also insulate the business to significant volatility of the prices of this particular raw material, which we were till date importing. As a country, we are experiencing significant tailwinds in the CDMO business. Most of the changes are structural and should stay. Given the propensity to remedy the dependence on China and post-COVID imperative to build supply chain resilience, all MNCs are looking at India as an alternative option. We also, in the backdrop of these changes, are witnessing a quantum increase in RFPs that we are receiving. To be able to capitalize on this opportunity, we are additionally building a multipurpose plant, MPP, in Mahad and a state-of-the-art R&D center in Hyderabad. This GMP-compliant, approximately 30-reactor plant will be a versatile plant with capability to supply from a few kilos to multi-tons to our CDMO clients in any geography. At Mahad, both in the block meant for vertical integration and this MPP, a high level of automation is being built to ensure batch-to-batch consistency, optimal yields, and risk-proof operations. The MPP shall also be equipped with a state-of-the-art dedicated GMP milling and particle sizing capability with two clean rooms to cater to customized requirements of our MNC clients. This plant will contain a section equipped with reactors, with single-through system that will have the capability to generate proof of concept, process optimization, and validation data tailored to our client needs. The MPP capacity will, however, go on stream only in the second half of FY 2027. As a consequence of this high level of versatility and automation that has been built into the design of this MPP plant at Mahad, we envisage that the earlier plant CapEx of approximately INR 250 crores for Unit 3 Mahad will increase to about INR 300 crores. The state-of-the-art R&D center being built at the cost of around INR 40 crores, shall focus on newer chemistry platforms like peptides, intermediates for GLP-1s, biocatalysis with a focus on immobilized catalysts, and work to augment and strengthen the innovator-oriented pipeline of the company with a focus on chronic diseases. Today at R&D, we are tracking about 20 new opportunities with high client interest and visibility. About 30% of these are in late phase III or commercial. We are very conscious of the carbon footprint of the company. Between our solar and wind, we contribute about 70% of our overall energy requirement. In pursuit of process excellence, we are further upgrading our Unit 2. New solvent recovery units are being added to reduce waste and encourage recycle and reuse. The company is committing approximately INR 60 crore for this process excellence initiative. In the last four years, we have quadrupled our manufacturing capacity. To keep in step with the client lock-ins and the growth aspiration, more capacity would be needed. We have acquired a piece of land in GIDC Dahej, Gujarat for expansion purposes. This new site shall add more capacity to the CMI as well as the PI segments of the business. While being GIDC land, there is an EC approval already. The allotment of GIDC is nevertheless a very recent activity. Hence, at this point of time, we shall not be able to share any firm timelines to the capacity going on stream in this call. With this, I come to the end of my part, and I hand it over to Ganesh to take you through the financials. Thank you. Good evening, everybody, hope I am audible. We will first start with performance highlight for the full year FY 2025 as compared with FY 2024. Our milestone performance of INR 1,030 crore in FY 2025 is in line with our expectation. During the year, contrast media has de-grown by 15.8%, driven by slowdown in offtake in Q1 of FY 2025 and certain goods in transit in Q4. This impacted the overall annualized performance of contrast media. We have started delivering supplies for NCE molecule in Q4 and expect growth in order book to be linear in line with the growth of this molecule. The launch of the iodinated intermediate is now expected in H1 of FY 2026, and one could see the full potential of this molecule in the full year FY 2027. In the PI/API category, the order book was fully served with a new capacity addition in Ambernath, and we were able to ramp up the production, resulting in a jump of 388% in this particular category compared to FY 2024. This was mainly driven by the advanced intermediate in the contrast cardiovascular therapy. Now, moving on to artificial sweeteners. For FY 2025, we recorded a turnover of INR 133 crore compared to INR 128 crore in FY 2024, recording a marginal growth of 4.1% over previous year. Our gross margin remained at 15.2% in FY 2025. No significant variation compared to FY 2024. We did not witness any significant volatility in the raw material prices in FY 2025. Our operational EBITDA grew by 4.4% to INR 36.7 crore, in line with our expectation. The expansion in EBITDA is on account of operating expense spread over a larger sales volume. We reported a PAT of INR 305 crores as compared to the previous year of INR 163.8 crores. On a full year basis, our EPS for FY 2025 is at INR 17.59 per share compared to INR 9.44 last year. We will now share the key highlights of the sequential quarter. Sales grew by 6.9% compared to Q3, while EBITDA grew by 12.9%. While PI/API category grew by 34%, degrowth in contrast media is on account of intermediate for the delayed iodinated molecule, as well as the transit inventory. Our cash conversion cycle for Q4 2025 is at 139 days compared to 135 days for Q4 2024. The increase in activities also has increased our working capital requirement by approximately INR 250 crores. With increased sale of PI and API product category, there are increases in receivable inventory and payable. You may recall our growth in this category has increased by 388%. One-time increase in working capital to support the level of activity required. Having deployed the working capital, we will be operating within this cash conversion cycle until the next step-up jump in the turnover happens. Our CWIP for FY 2025 is INR 89 crores, and we propose to incur fresh CapEx of approximately INR 300 crores in FY 2025. We will actually dwell more in the Q&A session. Now we open up the floor for question and answer. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. A request to all the participants, please restrict to three questions per participant and join the queue for a follow-up question. First question is from the line of Parth Mehta from Vallum Capital. Please go ahead. Yeah. Hi, sir. Am I audible? Yeah. Yeah. Congratulations on a good set of numbers. Thank you for taking my question. I just have a few questions. First one on the PI/API segment. The innovator in their conference call had mentioned that they are looking to add other sources for their product. Other sources of supply for that product. Just wanted to know how we make sure that your wallet share in the supply of your intermediate remains intact for that player? Shiven, I will take this question. Based on the customer forecast, what we could actually confirm is whatever number they have actually indicated to us in calendar year 2025, that is intact. We go based on what the forecast we receive, and we do not speculate on other news articles. Right. Got it. Not news articles, but they mentioned they are looking on for the other sources of products. Is it fair to assume that- Just to add on to that, Parth, I think what we need to also understand and recognize is that the ramp-up that we have done as a company, from the time we started the investments in the plant to scaling up to such a successful outcome. I think it has been a very good outcome for the innovator and for us as a company. So we are definitely in their good books. Even if they evaluate others, I think ditto what Ganesh mentioned. Right. Got it. So it is simply based on how the forecast of company goes. Understood. Second, just a quick question, if you could answer. What would be our capacity utilization across all the segments? Based on the aggregate capacity that we have. As I mentioned, for this pharma intermediate, today, we are at 60%-65%. Overall, I would say we are at about 75% across all segments. Great. Thank you. But at the same time, this is excluding the capacity that we are building up at Mahad. So this number will be different in about six months. Thank you. Next question is from Sudarshan Padmanabhan from ASK PMS. Please go ahead. Yeah. Thank you for taking my question. My question is to take forward the comments on the CapEx, specifically on the CMI space. One is on the transit side, how much of the inventory is basically just cannot recognize. Second is, a little bit more strategic. Now that we have the gadopiclenol, iodinated molecule, and also, new capacity by the clients coming in. If you can give some color on how do we see the ramp-up in the near term as well as in the longer term on this. Maybe on the first question on transit. This is part of the game. I think there would be some quarters you may have slightly a higher goods in transit, and it could be different for certain other quarters. I think this you have to just straightaway go ahead with the recognized turnover what we record. Now we have come to a stage that this is part of our operation, and we have to just move ahead. I do not want to make any specific exclusions and calculations on what is goods in transit and how it is moving ahead. I think that is the first part. Can you just repeat your second part? It may be like- Yeah. The second part is with the opportunities in the CMI space ahead with gadopiclenol and the iodinated molecule and also our customers which has added capacity. And a part of our CapEx is also towards this. How do we see the ramp-up, say, in the near term as well as in the longer term for the CMIs? As far as gadopiclenol is concerned, this is an NCE molecule. I think I have mentioned it in the past that the growth will be linear because the molecule has to find its own space in the marketplace. We believe as the market size grows, our supplies of advanced intermediate would grow linearly. We are the sole supplier of this particular advanced intermediate. We just need to follow how successful the innovator is as far as this particular molecule is concerned. As far as the iodinated molecule is concerned, we expect commercialization this year and our belief is that FY 2027 onwards, when you look at a full year performance, this could be a molecule of significance. FY 2026 is where we will be kickstarting our commercial operations. Sure. My final question before I join back with you is on the margin. If I look at the margin specifically in the second half, a lot of the incremental benefits have come through operating leverage. Given that we are talking about the momentum continuing in the PI/API space and potentially the relative better growth and off-take in the CMI space, how do we see the margins? I am not specifically talking about a particular quarter, but if I am looking at FY 2026 and FY 2027, because if I understand right, we are still overall at around 75% utilization. Even the utilization can be a little higher, plus or minus in a quarter, but on a yearly basis. On that side, should we see a steady state ramp up in the margins over the next couple of years? VK, you want to take on any- Yes. On this- No, I think we don't give any forward guidance. I think it will suffice it to say, if you will see the complexion of our business, we are in very highly demand and price inelastic markets. If you look at contrast media, we have been supplying to innovators, and we don't see too much of pressure on price because the segment is not at all genericized, even though there are no patents. Similarly, the pharma intermediate segment, we are again Ladies and gentlemen, the line for the management got disconnected. Please stay connected while we rejoin the management back to the call. Ladies and gentlemen, thank you for your patience. We have the line for the management reconnected. Sir, you may go ahead. We can move to the next question, please. Thank you. Next question is from the line of Shashank from Emkay Global. Please go ahead. Yeah. Hi. Congrats on a good set of number. My first question was on the other expenses this quarter. I think we have seen a QoQ decline in other expenses. Just wanted to understand how we should look at this line item, going forward, particularly when new capacities come on stream. Do you also see other expenses increasing towards the second half of next year? Just wanted to get a sense how we should look at it. See, the other expense includes ocean freight. Okay? For some of those products, if it is delivery at place, then we incur the sea freight. Some of the new products, for example, the new cardiovascular intermediate work we are supplying is Ex Works, so we do not incur the sea freight. When you see the reduction in other expense, it is because we did not incur. It is all to the account of ocean freight. It is all about the Incoterms of the contracts we enter in. If you want to really look at from a long-term perspective, I think it is more to do with the product mix and the delivery terms of these products. I think that is the main reason why you see a lower OpEx for this quarter. Got it. Way forward, it will be in this fashion. Because now, the product mix, earlier the contrast media was dominant. Now you see both contrast media and API is more or less of equal weightage, and you would see this new norm in the OpEx now. Got it, sir. Thanks. That is very helpful. Just wanted to check for an update on the small volume pilot plant that we have been building at Unit 2. Are we on track to bring that on stream sometime this year? Just wanted to understand what your plans are with that plant, given that we are also setting up an R&D center now. How do you plan to leverage the capabilities at this plant as well? VK. Like you very correctly mentioned that we are building a new R&D center. The R&D center that we are creating will have a kilo facility, and that kilo facility will be further supported by a pilot plant. The milligrams to kgs to the higher quantities which go for validation, the 50 to hundreds, will come from the pilot plant. That is the fashion in which we plan to straddle the entire value chain. Value chain of both pre-clinical, clinical and post-clinical. Got it. Thanks. Just the last one on the gadolinium-based intermediate stage. I think we did touch upon in the opening remarks, but just wanted to get a sense if we can see an uptick in this product from the first quarter this year itself, or will it be probably a bit more gradual spread out across the year? Also wanted to understand if you are hearing anything from customers or industry participants, if there are any challenges that contrast media formulation players are facing, particularly in their gadolinium-based portfolio? Maybe I will just take the first part, and the second part, Mr. Shiven Arora will answer. Our understanding is this particular intermediate will grow gradually. Being an NCE molecule, it has to find its own market space. We do not expect a ramp-up on this particular product, but we are actually seeing signs of the gradual growth happening, and we have already started witnessing this based on our order book. Mr. Shiven Arora, on the overall trend on contrast media now. See, I think on the gadolinium-based molecules in terms of the usage, is definitely increasing at a faster pace. And the general acceptance around these certain new molecules is also increasing over time. From a customer perspective, we haven't received any material negative observations on the outlook or difficulties from a formulation standpoint. But in the ever-increasing changing environment, because of geopolitical issues, you would have seen some remarks, but from a medium to long-term perspective, I think the growth strategy is very much aligned. Thank you, sir. Thanks for answering my questions, and all the best. Thank you. Thank you. Next question is from Sanjesh Jain from ICICI Securities. Please go ahead. Yeah, good evening, sir. Thanks for taking my questions. First on the contrast media, I just want to check this year, the growth has been muted. In fact, it has declined. Reason why- Sanjesh, sorry to interrupt you. Can you speak a little louder, please? Can you hear me now? Yeah. I think I got the point, Sanjesh. If you see contrast media from a FY 2025 perspective, H1 was muted because of the reasons that we mentioned earlier, but H2 saw a significant recovery. I think from now on, with a linear growth in the other molecules that we have spoken about, the results could be encouraging. What about the underlying molecule? Do you expect still to grow in ABA-HCL? I think, from the end API perspective, the molecule is seeing a double-digit growth. If the end molecule is winning, I think the other supply chain should also ride this journey. Got it. Second on the cardiovascular product we spoke about, how does the order book look for us for FY 2026, considering that the exit has been very strong? One thing on the utilization, VK, you said that the plant ran at 60%-65% utilization, I believe it is for the year. How has been utilization for the exit? Yeah. Sanjesh, I think, firstly, nice to have you here, but your point is very valid. I think you should not look at it from this exit. You should take a more of an annualized picture. I think, look at the annual volumes, and based upon the annual volumes is the capacity utilization that I had mentioned. Last call also, I had said that given the projections that we have and the way this molecule is gaining traction, we could double. That is where we are today. Our utilization is about 60% or 65%, whatever, and this is on an as is where is capacity, and then we have further headroom to debottleneck. I would not like to give any forward-looking guidance, but should there be an uptick in demand, even a huge uptick in demand, we are well-poised to address it. Very clear. On the Mahad, the unit 3 what we are working on, you said it's a continuous process plant. Is it the feedstock which we are talking about, or this is some other plant are we looking at? It is the feedstock, but also there are other derivatives that can be made from that plant. So the use would be, one, for captive and also for potential sales in this ecosystem. Do we have enough demand for that product? Are there any other application apart from the contrast media? No. It's majorly for the contrast media universe. There are some select APIs that you can do outside this thing, but that's not our focus. I think we'll be more aligned towards the contrast media idea. Very clear. On this Mahad unit 3 MPP which we are putting up, will it be a cGMP plant or are you looking at going full haul, US FDA approval and complete into an ecosystem of pharma? How are we thinking? Because I think you said it is a state-of-the-art process. We have 30 reactors. Are we thinking big here from the pharma side, or we still want to be close to the intermediate, what we have been doing it very well now? See, the plant will have the capability of doing the finished product, and that is the reason that we are creating two clean rooms over there. So that has versatility and flexibility. At least two products can be made at the same time. So that is the capability that we are creating. As I also mentioned that even the particle sizing area is GMP. So the plant will be completely US FDA approvable. Now, whether we trigger that or we do not trigger that is an option that I think is something that we, along with the client, will have to exercise. But then the design and construction and everything is going to be complete GMP level. Okay, that is clear. Mr. VK Singh, you spoke about 20 new opportunities, 30% of them in late stage, phase III or commercial. Right. How close are we? Have we supplied the kilo samples? Are we in the process of DMF filing or this is a process which has just kicked in for us? I would say that it is a mix. A couple of places, we are in very advanced conversation. Kilo quantities have already been supplied. Since in those areas, they are switching from a Chinese source to us, maybe the commercialization also happened very fast. For others, we are in the process of giving small quantities, because they are still in the clinical phase. Small quantities, and then there is going to be a validation process and then a regulatory process. There will be some sort of a wait. Thank you. Sanjesh, sorry to interrupt you. I will request to come back for a follow-up question, please. Fine. Thanks, Mr. VK Singh and Mr. Shiven Arora, answering all those questions. Okay. Thanks for listening to us. Thank you. Next question is from the line of Darshan Shah from Multi-Act Equity. Please go ahead. Hello, this is Rahul Picha here from Multi-Act. One question on the fundraise part. You have mentioned a ₹1,500 crore number in the announcement. What is the plan? How much do we intend to raise? Anything finalized on that? It is still, I think we will be able to share more visibility on it on the immediate quarter. Okay. It is not yet been decided. It has been decided, but not in the position to disclose it at this point in time. Okay. One more thing in the PI/API segment, in this presentation, you have mentioned that the number of molecules that are there are around 28. In the previous quarter, that number was 22. The incremental six products that have come in, what kind of visibility do you have on that and any significant addition in terms of pipeline, if you can just talk about that? 28. I think what we need to be more focused on are on the 30% of the overall RFPs that we had mentioned, which are in the phase III and almost commercial in nature. I think those are the high conviction ideas I've been focusing on for the past earlier two calls as well, that these see a very strong visibility from a short to medium term perspective. Okay. Just once again on the PI/API capacity utilization side, this 65% number that you mentioned is for Q4 or for the full year? Full year. Full year. Okay. Q4 would be higher than that. Okay. Got it. Thank you. Thank you. Next question is from the line of Nikhil from SIMPL. Please go ahead. Yeah. Good evening and congratulations on good set of numbers. I have two sets of questions. One is on contrast media. If we look at our contrast media run rate, in 2023 we were at INR 500 crore, and at that time there was one single large customer. Today we are at INR 400 crore. Incrementally, when you say that the gadolinium and the iodinated products will come, and during this phase, one of our key customer also went for capacity expansion. Should we understand that this INR 400 crore is the base on which we will grow or first we will go back to that INR 500 crore and then we will grow? How should we Because that INR 450 crore, INR 500 crore was a stable base till the time the customer had not gone for a capacity addition. If you can just help me understand this. I think without me- Actually, can I just pick it up, Shiven? Yeah, please. FY 2023 number, this is the year in which the customer wanted certain quantities of security stock. So instead of a full year, we would have actually supplied more than a 12-month requirement. So this is a sort of an outlier in the whole conversation. So it is not a 12-month sale. Maybe it is 12 plus whatever security stock the customer wanted. To address your second part of the question. On a conservative approach, we would like to start with this as a new base, whatever we are at the 400. From here, we wanted to build up not only on the largest molecule. We are also having two other molecules, and we also believe the largest molecule would also start growing from this stage. Maybe we would put a high single-digit growth, and we will have this iodinated and the gadopiclenol, which will add to this growth story. Shiven, you wanted to add on this? Yeah. The base business, as you rightly mentioned out, I think the real uptake will happen when you add these two molecules. Capacities are on stream, and we are scaling it up at our end. Okay. For the contrast media, VK sir mentioned in the starting that at a company level, we are at 70% utilization. For contrast media, what is the peak revenue which we can do? If all the three products and everything plays out and even other products come, what is the peak capacity or peak revenue we can generate here? It is very difficult to stipulate a specific number because capacities are added every six months. As Vikas had mentioned, we have been able to quadruple our capacity in the past few years. There are some lines being on the Unit 3 side, on contrast media specifically. That is significant ramp-up of capacity. I think that number would always be fluid in our case, because the business is growing at that pace. Just one more point to what Mr. Shiven Arora has said, that we have two types of growth in our business. One is the secular growth that we get because the market is growing. The second is that each time we forward integrate, that means that we give a more advanced intermediate. Sometimes the value is 2x, 3x from the same capacity. This is just to support what Mr. Shiven Arora was saying, that it is not easy to make a linear calculation. Okay, got it. Second set of question is, you mentioned in the discussion on those 20 product opportunities, that some of them may get commercialized. If I attach it with our CapEx plans, one is this MPP in Mahad and following up with this larger plant which we are planning in Dahej, for which we are also looking at this QIP. How should we understand our CapEx and demand visibility? Because this Mahad plant will come in 2027, which you mentioned, and you said some of these opportunities which are moving from China may happen quickly. So how should we understand how do we define our CapEx and how do we attach with the demand visibility we have from some of these newer molecules which we are looking at? Somehow, at Blue Jet, we have been able to balance the demand and capacity very well. As you would see, that the primary reason for having a high asset turn is that our gestations are low. So I think we are going to maintain that or preserve that DNA of the company. What we are planning today is based upon certain client lock-ins and visibility that we have, in contrast media, in pharma intermediates, and even in the sweetener segment. Even in the high-intensity sweetener, we are working on a new product and we should give a fillip to that segment as well. So I think- Just sorry to interrupt here. I understand on these three, because we have been in this business. My question was more on the newer opportunities which we are looking at. This multipurpose plant, I believe would be to meet those newer opportunities and demand, because for the contrast media and the APIs, we have dedicated plants. So this MPP which we are putting, and my assumption can be wrong, is for the newer opportunities which we are coming. So- Exactly. That is where I was. Very good point. For the immediate opportunities that we have been working on for the past 24-36 months, we have other multipurpose plants that will cater to the immediate requirement from our existing manufacturing footprint. As you rightly mentioned, some lines are dedicated, but some are flexible in nature. We will cater to the immediate requirement from our existing plants. Okay. We do not see a capacity challenge if some of these opportunities come up? That is correct. Sure. Thanks a lot. I will come back in between. Thank you. A request to all the participants, kindly restrict to three questions per participant. Next question is on the line of Kunal Dhamesha from Macquarie Group. Please go ahead. Hi. Thanks for the opportunity. The first one on, again, just going back to the capacity versus CapEx. I think my understanding, and correct me if I am wrong, was that with the Mahad facility, we were more or less sorted till FY 2027. Now with the additional investment in Mahad, does that give us better capacities for a longer period? Or would it say that it is still FY 2027 till which we are sorted and then we need Dahej to grow further from there? Yes, that is right. That for the next two years, we do not see any bottleneck as far as capacity is concerned. But beyond that, we will have to plan and augment. This MPP will also be utilized in your view by FY 2027? Yes. Okay. Great. For the PI/API project, the cardiovascular intermediate, do you think need for debottlenecking this year? As I mentioned, we are at 60%-65%, so there is a huge room to address any uptick in demand. After that, if any debottlenecking is needed, I think we can do it very easily. It is a big plant that we have created. How much, let us say, hypothetically, if you do debottlenecking based on your current plan, how much more capacity you can add? A ballpark number. A very ballpark number, I think, which is subject to change, don't hold me on that. I think it would be on a conservative basis, about 20%. About 20%. How fast it can be done? It will take a few weeks, about 8 to 9 weeks. I think these discussions will happen well in advance when we discuss with the customer. Sure. These new products which you suggested, a couple of products in a pretty late-stage kind of development cycle. Where this will be kind of accommodated, to start with Unit 2 and then move to Mahad unit, or how should we think about it? It will be a combination of both. As we mentioned earlier, I think capacity constraints would not be there at this point in time, as we have two major capacities coming on stream in the coming quarters. Okay. Since we are in intermediate, just an understanding question. Since we are in intermediate, for us changing the facilities is not a big switching cost for our customer. Is that a correct understanding? Ideally, we should not. Because these are regulated intermediates. There is definitely a pathway that we need to follow. Sure. Thank you for those responses and all the best. Thank you. Next question is from Vidit Shah from Spark Capital. Please go ahead. Hi, good evening, and thanks for taking my question. Just wanted to get some color on the CapEx plans post Mahad at Dahej. You said you will share more details in the next coming quarter, but just broadly in terms of high-level strategy, what are the focus areas that the company is targeting to use this INR 1,500 crores would be great. I will not comment on the INR 1,500 crores, but our baseline CapEx that we had said in one of the previous calls is about INR 200 crores. But given the extra work that is happening in Mahad and some upgrades that are happening at Unit 2 Ambernath, I think we will be a little more than INR 300 crores. Excluding any of the new sites or Dahej or whatever. Excluding that, we will be around INR 300 crores plus. Okay. The late stage pharma intermediate molecules that you are working on, would you be able to share what sort of therapies they go into? Couple of opportunities that we are tracking are the advanced intermediates to GLP-1s. The others are in our traditional segment, the chronic segment. Like we have this cardiovascular or the oncology. So in that chronic segment. Okay, understood. We have seen some reports of China restricting exports of gadolinium in April this year. Just wanted to clarify if we are seeing any impact of that or is it business as usual? It is business as usual as far as our manufacturing is concerned. Got it. Just the last one on the income tax notice that we have got of INR 200 crores. I understand that we have a little bit of a provision, but if you could just help us understand the history of the case and how you see this panning out. Ganesh? This is on the income tax. Our case, we are quite comfortable on the stand what we have taken, and we need to actually wait and watch how the appeal process goes from now onwards. Got it. There is some sort of deposit that we have to pay to go into appeals and all of that. Would that be an impact on cash flows? Not significantly. It is procedural, and it will not have any significant impact. Thank you. Vidit, sorry to interrupt you. Can I request you to come back for a follow-up question, please? Thank you. A kind request to all the participants. Please limit your questions to two per participant and join the question for a follow-up. The next question is from the line of Ayush Agarwal from MAPL Value Investing. Please go ahead. Thanks for the opportunity and great set of results, sir. Ayush, can you please speak through the handset? Your voice is echoing. Is this better? Yes. Thank you. Yeah. Sir, great set of results and congratulations on that. The first question is on the cardiovascular intermediate product. We did about INR 200 crores in Q4. Can this be a new base and can we grow from this base in FY 2026 on a quarterly basis? I would only say that the molecule is doing extremely well. You can track the growth of the molecule. It is doing well in the U.S., it is doing well in Europe, it is getting new markets open, like Canada, et cetera. Nevertheless, refraining from giving any type of guidance. I would recommend that you should not look at the last month or the last quarter. We should look at the annualized ramp-up that has happened, and that should be, I think, more of a reasonable approach. Understood. The second question is on this GLP-1 intermediate molecule. Roughly, what could be the opportunity size for us in this molecule? Can this also be as large as the cardiovascular intermediate or larger? We would refrain from commenting on that, but the overall opportunity size around these set of molecules is considerably large. Would we be working directly with the innovator? Hard to comment at this point in time. All right. Bound by CDA, so unfortunately I will not be able to give you any details around it. Understood. Yeah. No, that is it from my side, sir. Thank you. Thank you. Thank you. Next question is from line of Vivek Patel from Ficium Family. Please go ahead. Very good evening, sir. I hope I am audible. Yeah. Yeah. Thanks a lot for the question. I just wanted to understand what is the level of competitive intensity in the cardiovascular molecule that they are giving it? I understand that in the last call, I believe you had mentioned about there are certain geographies diffusing or this molecule area, some are bigger in size and some are growing very fast. Can you just, if you could expand on the intensity and the scale of the molecule and the growth of the three different geographies. Thank you. Are you asking about the potential growth of this molecule, right? I am asking about how it has fared over the last few quarters, and how do you feel or what is your assessment of the growth as well? If you are talking about the molecule, then this is gaining very good traction. Today, there are 9,000 cardiologists in the U.S. who are prescribing this, and this has become the primary line of treatment. Earlier it was the secondary line of treatment. Because of the label update and label expansion, both in the U.S. and Europe, I think, the addressable market of this has grown seven times of what it used to be. I think it is a blockbuster, a very big opportunity, and still protected by a patent. I am not sure if you people have seen that Esperion has done a settlement with the generic companies, one of two generic companies, not all, that they will not enter with a generic till 2040. This is an indirect prolongation of the life of the patent. How is it doing in the other geographies in Latin America, Europe, otherwise? It is growing actually faster in Europe and faster in Latin America than U.S. Okay, thank you. Thanks a lot for your answers. Thank you. Thank you. A request to all the participants. Please restrict to one question per participant. Next question is from line of Rupesh from Intelsense. Please go ahead. Hello, sir. Thank you for the opportunity. My question, sir, is on cardiovascular intermediates. Esperion has out-licensed this product to Daiichi for Europe, and my understanding is this is the year when Daiichi has to start building its own manufacturing supply chain. I think today they are taking the supply from Esperion, and that I think is changing starting this year. My question is, are we engaged with Daiichi? Have we signed some contract? Is there some long-term understanding? Have they reserved some capacity? This is my question, sir. I think that is more about the formulation, so we shouldn't be very concerned about that. What Daiichi, the technology transfer that has happened, and it is in public domain. That is more about the formulation at this point of time. Yeah. But there is another supplier also, right? Sorry, sir. There is another supplier in India. My question is for API, can you confirm you would be supplying to both Esperion and Daiichi? That is automatic because our product goes for the European market as well. So what Daiichi is selling anyway has got the intermediate of Blue Jet. If somebody tries to move away, then there is a regulatory pathway. So it cannot be done easily. There are regulatory issues if somebody wants to change. More than that, we are protected with contracts. I do not know if that is what you are trying to understand. The discussions are ongoing with CDA, but discussions are active with either party. Okay. Yeah. Thank you for answering my question, sir. Yeah. Thank you. Next question is from line of Ankit Mittal, individual investor. Please go ahead. Yes, thank you for the opportunity and congratulations for a great set of results. I had question on PI/API as well, and on the capacity utilization questions earlier in the call. You mentioned for the full year, utilization is 60%-65%. For the full year, you did close to INR 462 crores in revenue in PI/API. If I do the math at complete full utilization, the revenues would come to around INR 770 crores. If I just annualize the Q4 numbers, of INR 196 crores, it is close to INR 780 crores. Is it safe to imply that in Q4, our capacity utilization was close to 100%? I think the math that you do, that could be good arithmetic, but let's leave it at that. I have answered this part many times to other participants. Okay, thanks. Thank you. Thank you very much. As there are no further questions, I will now hand the conference over to the management for closing comments. Thank you very much for all the participants, and we will meet in the next quarterly call, Q1 call. Thanks. Thank you all. Thank you. Thank you. Thank you very much. On behalf of Blue Jet Healthcare earnings conference call, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.