Ladies and gentlemen, good day and welcome to the Indoco Remedies Q4 FY 2026 earnings call hosted by Dolat Capital. 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. I now hand the conference over to Ms. Candice Pereira from Dolat Capital. Thank you, and over to you, ma'am.
Thank you, Rituja. Good evening, everyone. I, Candice Pereira, on behalf of Dolat Capital, welcome you all to the FY 2026 earnings conference call of Indoco Remedies Limited. I would like to thank the management for giving us this opportunity to host the call. Today from the management team we have with us Ms. Aditi Panandikar, Managing Director, Mr. Sundeep Bambolkar, Joint Managing Director, and Mr. Pramod Ghorpade, CFO. I now hand over the call to the management for their opening remarks. Over to you, sir.
Thank you, Candice. Good afternoon, everyone. Thank you all for joining this call. Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are projections or estimates about our future events. These estimates reflect the management's current expectation of the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied. Indoco does not undertake any obligation to publicly update any forward-looking statement, whether as a result of the new confirmation, future events, or otherwise. Thank you so much. I'll request our Managing Director, Ms. Aditi Panandikar, for her opening comments.
Thank you, Pramod. Good afternoon, everybody, and thank you for joining us on our Q4 FY 2026 call this afternoon. It gives me great joy to announce that after almost six quarters, we are in positive in this quarter for performance. This performance has been possible due to a great acceleration shown by international formulations business, both in the regulated markets as well as emerging markets. While in India, as the season did not support performance, quarter four numbers were muted. Anti-infectives and respiratory, in particular, gave a significant hit. However, at the level of product wise prescriptions generated, almost all our main and important products are showing good growth in prescriptions, emphasizing the fundamental strength of the brands and ensuring that there is great demand for those products in the market.
In U.S., we received approval for the ANDAs of liquid orals for brivaracetam and lacosamide. In India, we launched a new brand extension of Cyclopam, our number one brand. Our API manufacturing plant at Patalganga made us proud with their EcoVadis score. We were also recognized for our CRO work at IDMA's Annual Day. I'm also happy to announce that as of January this year and even for the month of on MAT basis for the month of March, Rexidin-M Forte has become the most prescribed stomatological brand in the market. We also overtook, as a company in prescription audit, we have overtaken Pfizer to become the 20th most prescribed company for the number of prescriptions we generate. Last week, Indoco entered into an agreement to hive off its ophthalmic business in India and Africa to Sunways.
This move was made in the interest of our wonderful brands and portfolio, which should now get the requisite attention they deserve and therefore grow. This hive off could also help us at Indoco focus on areas of strength in and those which are our core areas for growing the ethical business. The OTC business has also done well. Our efforts to add presence of our products with the grocers, the modern trade and quick commerce are underway and should soon give promising results as well. The macroeconomic factors at this time are certainly not at all conducive for doing business, especially as regards the cost of goods and the likely disruptions in exports. We hope as a management to steer our business with responsibility during these tumultuous times.
Thanking you once again, and I hand over to Mr. Sundeep now to take you through the quarter performance.
Thank you, Aditi. Good afternoon, everyone. Let me first begin with the business highlights. Standalone net revenues of the company for the fourth quarter, FY 2025/2026, are at INR 4,291 million, compared to INR 3,411 million for the same quarter last year and INR 3,896 million for the immediately preceding quarter, that is Q3 of FY 2026, growing at 25.8% and 10.1% growth respectively. Consolidated net revenues of the company for the fourth quarter are at INR 4,559 million compared to INR 3,839 million for the same quarter last year and INR 4,343 million for the immediately preceding quarter. With 18.8% and 5% growth respectively.
Standalone EBITDA to net sales for the quarter is 14.7% at INR 630 million, compared to 1% at INR 35 million. For the immediately preceding quarter, EBITDA was 6.6% at INR 259 million. Consolidated EBITDA to net sales for the quarter is 10.9% at INR 497 million, compared to -0.2% at INR -8 million last year. For the immediately preceding quarter, 7.3% at INR 315 million. Revenues from domestic formulation business for the quarter are at INR 1,739 million as compared to INR 1,851 million. Major therapeutic segments like vitamins, antidiabetics, dermatology, gastrointestinal, and cardiac performed well during the quarter as compared to the same quarter last year.
Revenues from international formulation business grew by 94.6% at INR 2,147 million compared to INR 1,104 million. Revenues from reg markets for the quarter grew by 78.3% at INR 1,401 million against INR 785 million. Revenues from U.S. business for the quarter grew by 77.5% at INR 546 million as against INR 308 million. Revenues from Europe for the quarter grew by 68.7% at INR 786 million as against INR 466 million. For South Africa, Australia, New Zealand, the quarter grew by, the base being small, the revenues were at INR 692 million as against INR 122 million.
Revenues from emerging markets for the quarter grew by 134% at INR 746 million as against INR 318 million. Revenues from API business for the quarter de-grew by 23% at INR 315 million as against INR 409 million. The services part, AnaCipher CRO and Indoco Analytical Solutions for the quarter grew by 65.3% at INR 895 million as against INR 467 million. That is all about the business highlights for the fourth quarter, and I now request all the participants to put forth their questions. Thank you very much for your patient listening.
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 the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gents, wait for a moment while the question queue assembles. The first question is from the line of Sajal Kapoor from Antifragile Thinking. Please go ahead.
Yeah. Hi. Thanks for the opportunity. Aditi, ma'am, the performance is definitely a recovery sequentially, for sure, and that's heartening to note. I have a couple of questions around the receivables and the debt, if I may. The standalone trade receivables grew 45%, while revenues grew only about 9%, and Q4 alone saw a disproportionate spike. Can you break down the receivables aging, identify which geographies or channels are driving the elongation of collection concerns and confirm what percentage of Q4 revenue was kind of recognized on shipment versus actual receipt? Because it's kind of looking slightly disturbing, and the interest payments and the debt. Both the working capital receivables and the MSME payables are getting stretched. That's one concern. The other one is the overall debt levels.
It has been alarming for a while now. It's probably getting worse now.
I will quickly answer your questions. Can you hear me?
Yes. Yeah, I can. Thank you.
Yeah. Then Pramod will probably give you more details. For this quarter in particular, what you would have seen is that the international business has done so well, and typically our collections for international business, especially collections for the emerging market international business are, we have a long credit period. That has probably impacted. Coming back to the borrowings and happy to share that efforts are underway to ensure that the borrowings get reduced at the earliest. With performance improving, I'm sure we will be able to do that. I will allow Pramod give you answers on some of your concerns.
Yeah. Thank you.
Mr. Sajal, as madam mentioned, specifically about the receivables, you're right. Our fourth quarter performance, if you see, in terms of our exports to reg market, which is, you know, overall up by close to about 20% to 29%. Out of that, emerging market, you know, growth is about
Significant growth, I would say, in our fourth quarter. Where, you know, we have receivables, you know, longer receivable, I would say, as compared to domestic business and API business. That is the primary reason of, you know, receivables which are number of days of receivables, which are going up. Your second question about the overall loan position. That remains more or less same, you know, as compared to last year, March 2025. We are at total consolidated, consolidation level, we are at 960 odd number. Long-term, INR 620 crore and short-term of INR 344 crore. More or less, you know, that was the same position during last year.
In between, whatever, you know, repayment commitment, were there, with the, you know, funders, banks, which we have, repaid along with interest. Plus, you know, additional borrowing in some pockets, initially during six month for our, you know, CapEx. Of course, we are very sure in terms of, you know, servicing the debt along with interest, with the, you know, EBITDA number, which we would like to maintain during next, four quarters. Thank you.
Yeah. Additionally, as we have disclosed earlier, there is very tight control on CapEx now, and good effort is going on to bring down the operating expense also going forward. This should all help.
Sure, ma'am. Just one follow-up.
Can you help me double-click on supplier payables and the MSME dues because they have risen sharply.
Yeah. There has been some, you know, where we have not paid suppliers on time, given some of the cash flow situation we had. I'm confident within a week we should be able to settle this.
All right. Okay. Thank you. Thank you so much. I'll rejoin the queue.
Thank you. Participants who wishes to ask a question may press star and one now. The next question is from the line of Nirmam Mehta from Unique PMS. Please go ahead.
Yes. Hi. Thank you for the opportunity.
Yeah.
My first question is on the domestic business. Now, as you mentioned in the opening remarks also that the season was not good for us.
Do you see this growth coming back in the next, say a year or two? Secondly, considering we have seen prescription growth, is there some way that we can I mean, what is the challenge of when we see prescription growth, but then the medicines are not sold? One is that. Secondly, is there any more optimization on the portfolio front? I think we discontinued some tail brands during this year also.
Yeah.
We've sold off some more opthal.
Correct.
Division also. Any more such re-mix for the next year?
Okay. I'll start with your first question on the what we call primary, secondary and tertiary, which is the prescription growth. Typically the numbers you see in IQVIA or any of the agencies like PharmaRack on our products is what we consider secondary. That is what is sold from stockist to retailer. The number of prescriptions we generate, we use it as a measure to understand demand for our products and therefore the absolute offtake at the chemist counter, which is tertiary. If you look at first of all what we call primary, which is the booking of sales. That for the quarter ended March, is often dependent on the motivation morale and how many people in your field staff are actually going to do their annual target.
There it's not going a little low, despite of all efforts from our side. We always see this kind of a performance. I'll give you an example for, let's take the category of, I mean, if we take stomatologicals itself, then, as per IQVIA, we are down only by 8%, but my primaries are down 20%. If you look at the prescriptions on those products, they are all in high growth. What it simply means is that if you are seeing an Rx performance now, then your IQVIA should follow after that. Unless there is too much stock in the market, your primaries should automatically get corrected. However, your concern about if we are really generating demand, what if our products are getting either substituted or not available?
This year in particular, we are undertaking a major exercise to reach out to the stockists who stock our products and the retailers. I can give you some statistics. Directly and indirectly, our organization reaches around 150,000 chemists. That is both through Warren Remedies, which is the OTC arm, and our own prescription business. If you look at availability of Cyclopam, it is available at 3.5 lakh chemists. Generally it is prescriptions and demand created which is expected to make your product available. That is how we work. Typically because our products are seasonal, what always happens is when the season doesn't come in, you see the stockist is not very motivated to increase the inventory he carries on certain products and therefore he goes muted.
Down the line, there are very few shortages because there are stocks in market. Let's take our product Cital, for example. It is a urinary alkalizer and typically does very well in summers. This year, in the month of March, I think there were a few rains also, and summer did not kick in the way it should have. Cital, if you look at internal performance, it is down, you know, for the quarter it is down 10% and QOQ it is down 1%, but in IQVIA it is growing. So are prescriptions on it. The other day I had a PharmaRack review where they disclosed that in the market, there is less than 30 days stock of this product. Typically now Cital should fire.
These are not things we can always control because always, motivating the stockists to purchase from us, pretty much depends a lot on many factors, including the morale of the field staff who are going to do their annual target. I hope that answers your question.
Yes, ma'am. Second thing on the non-core,
Ophthalmology in particular, I wouldn't say it was non-core for us because we had a division. We tried to create two divisions. We were very bullish on it because as you know, we have filed several ophthalmic ANDAs in U.S. As a therapy, it remains an area of attention for us. In India, for the last four years, we were not able to grow the business too much, and it remained very much dependent on whether conjunctivitis came in or not and things like that. At the size at which it was, we could not give it enough attention. That is why the high off. Other than this, if you look at the present portfolio we hold, most of it is coming within the four or five main segments of the company.
You will have products either in respiratory, anti-infectives, stomatological, GI or vitamins and minerals, which is carried by our gyne division. At this point, I don't see any more such identified opportunities for the India business.
Okay. Just to confirm, this division sale was also not done to tide over the liquidity situation, right?
No, there is absolutely not. It is a very small division. At primary level for internal sales, for the year we have clocked INR 37 crores in India.
We have to recognize that we are a 13th player in this market where companies like Entod, Sunways, even very small organizations are able to get a lead on us, obviously, because for them it is a very, very fundamentally core area of business. They approach it differently.
Okay, ma'am. Understood.
Yeah.
Ma'am, coming to our international business, we've seen good growth across all the markets, U.S., Europe. We expect this traction to continue in the next year as well. Particularly for the U.S. because our sterile products are still not resolved. Do you see this growth continuing in the U.S. without the FDA approval?
You know, what we have done, which I have said on earlier calls, is for our key products, we have gone into adding second sites. Much of some of the sterile sales for U.S. that you see in this quarter has actually got built from those sites, and that has helped. Therefore, what will really impact us if the plant situation doesn't get resolved really is the future approvals which should be coming on time. Otherwise we are okay. Of course, we carry and continue to spend a lot on that site. That will is an area of concern, and we are trying to resolve that as soon as possible. Other than that, U.S. today is not just sterile and ophthalmics.
Solids.
You know, solid orals, and now we are getting into liquid orals as well. Also the U.K. and Europe business has done very well. We have a decent order book right now, and I'm sure our team will work very hard to continue this kind of performance.
Mm-hmm. Sure. One question on the interest cost for this quarter. If you look at the consolidated numbers, the interest cost has gone up materially.
Yes.
Is there some forex impact also here?
Yes.
I think it is particularly coming from Warren Remedies. Therefore, it comes in the consolidations. There was 1 loan in foreign currency and, as such it is notional. Unless the war goes on and on and on then it will actually impact us. Maybe, Pramod Ghorpade.
Yeah
Would like to say something.
This quarter, the exchange loss itself on a foreign currency loan, ECB loan is substantial. Almost a 1/2 a portion of this finance cost is towards the exchange loss.
INR 20 crore impact?
INR 24 crore impact.
INR 24 crore.
Okay. What would be a ECB loan?
EUR 10 million. Mm-hmm.
EUR 10 million. Okay. I'll join back the queue.
Thank you. Participants who wishes to ask a question, please press star and one. The next question is from the line of Kunil Mehta from Boring AMC. Please go ahead.
Ma'am, I had one question. Last quarter, we had a loss of INR 34 crore. We had a net worth negative of INR 34 crore. This quarter it's INR 82 crore. Any reason why FPP, which has seen increase in sales from INR 35 crore to INR 48 crore, has seen a negative net worth of INR 50 crore in this quarter increase?
At Okay.
Yeah.
I think okay, Pramod, go ahead.
Kunil, as you know, for FPP it is early years, where, you know, it's all about investment. The negative net worth which you see is the losses incurred during last couple of years. We expect now this to turn around in coming years. The net worth which you are referring is the impact of the losses incurred since acquisition till today.
No, no. The last quarter, as per your result, press release, it was INR 35,000 million net worth. This quarter it's INR 82 crores. What's the reason for INR 50 crore jump in a quarter?
Yeah. Kunil Mehta, if you look at, as you know, FPP had a historical business of purchase and sale from others. It typically depends on the portfolio of FPP in that particular quarter. Whenever FPP only sells products supplied by Indoco, we do much better. When they are purchasing finished goods from others and selling, that margin comes down. If you look at sale of FPP and the costs, that is where you see the maximum jump.
No, Kunil, we are looking at consolidated number, which includes not only FPP, but Warren Remedies also, another legal entity. There also we have a negative number. That is both put together, not only FPP, but FPP plus Warren Remedies.
Okay. you have not specified the Warren part in that.
Yeah, yeah. The reason is that.
Yeah. Warren, as you know, is an OTC business. We have very clearly decided that for at least three years we will consistently support it for advertising and any other things required to build that business.
Understood. Ma'am, we export a lot of products in the Europe market, which we see based on product basket for, in 2025 and 2026. Based on your export data, we are not seeing that expansion in that product basket, except for allopurinol and paracetamol and colchicine, few products.
Colchicine, c olchicine.
Yeah.
Okay. What happens is, as you know, Europe and U.K., there is major fluctuation in pricing. Sometimes some of these small molecules, if the current business environment doesn't support in a manner that we should make margin on it, then we choose not to sell. Yeah. Sandeep would like to say something.
Yeah. Hello. Yeah.
Yeah.
See, besides allopurinol and what you mentioned, colchicine, we are also selling pregabalin and zonisamide very well, these two molecules. With contract manufacturers, of course, there's cetirizine, there's paracetamol, zonisamide, pregabalin, colchicine. There are many products. We are not dependent on one or two.
We have a lot of approvals like apixaban, rivaroxaban, then, lacosamide.
apixaban should come in soon.
Apixaban should come in, soon.
Okay. Understood. Understood. On the API business side, as we have got approval for the Warren Remedies part, should we see the increased scale-up now for that part of business too, for outside consumption?
Yeah. Warren Remedies doesn't yet have a reg market approval. Till now it makes key starting materials for us, which we finish in Patalganga and sell in the reg market. Therefore, We are not able to optimize it fully because what is made at Warren Remedies does not fetch reg market prices as of now.
Understood.
That is partly the reason Warren Remedies, financials also get disturbed.
Understood. Ma'am, I wanted to know any reason why we have got approval for rivaroxaban, but only we have supplied very negligible compared to other peers or capture the market share over last six months for U.S. market.
We have got approval only for one strength.
Okay.
Yeah.
Understood. No problem. Thank you.
Yeah.
Thank you. The next question is from the line of Maulik from B&K Securities. Please go ahead.
Hi. Thank you for the opportunity. Ma'am, just wanted to understand what has driven the growth for our U.S. business. I understand you answered that sterile products, which were site transferred, drove growth. What else was the reason why we witnessed this growth?
Same quarter last year in particular, if you remember, we were undergoing a major part of our master manufacturing cycle at two of our large solid oral sites, plant one in Goa and Baddi three. Plant one in Goa in particular supplies solid orals to U.S. This plant therefore had got impacted, as in we could not supply it to optimum requirement. It is not just ophthalmics, but we also have a considerable amount of solids coming, as well as ophthalmic. What is it, Sundeep, between U.S. sterile and If I'm not mistaken, I know for the year, but quarter it should be.
For quarter it is, INR 10 crore , INR 12 crore sterile. Rest is all.
Yeah. oral solids are sterile is only INR 12 crorein this. The rest is all oral solids.
Okay. Sterile is INR 12 million and the rest is,
No, not million, INR 12 crore.
INR 12 crore.
INR 12 crore.
We've got quite a basket of solid orals.
They're doing well. Yeah.
Understood. Okay. Okay, ma'am. Also there was one exceptional gain for 4 Q. Can you just help us quantify? I think in the notes it was for full year, was not able to understand. Can you help with that, please?
Which number you are referring to? Sorry.
Around INR 34 crores of exceptional gain, I think, in 4Q number.
No, no. You are talking about other income? Mm-hmm.
INR 16 crore
No.
If you look at other operating revenue, it is INR 16 crore exchange gain.
Exchange gain on the foreign currency.
INR 34 crore exceptional income is not there.
We have got the number wrong, huh?
Sorry. Sorry, ma'am. Sorry. My mistake. It is INR 3.7 crores. Sorry.
Okay.
What is INR 3.7 crore exception gain? I have no idea.
That is also within this thing. Gratuity.
Revaluation of gratuity.
Oh, okay. Okay.
Some small amounts like revaluation of gratuities, et cetera.
Oh, okay. Okay. Okay.
Related to the labor code, only, yeah?
Yeah, yeah.
Yeah, yeah. Related. Correct.
Understood. Okay, okay. Thank you so much, ma'am. Thank you so much.
Thank you. Participants who wishes to ask a question, please press star and one. Anyone who wishes to ask a question may press star and one now. The next question is from the line of Nirmam from Unique PMS. Please go ahead.
Yes, thank you for the opportunity again.
Yeah.
Just two, three questions on the balance sheet item. One is there's an entry asset classified as held for sale in the balance sheet about INR 23 crores.
Yeah.
What is this regarding?
We have a land parcel, we are looking at.
We're looking to sell that land?
Yeah. Yeah. Yeah. It was lying idle for the longest time.
Okay. Secondly, in the cash flow statement, I could see some provisions for doubtful debt, and that has increased year on year, about INR 10 crores this year. Is this in line with what we generally do or that there is some issue?
Yeah. Nirmam, it's a combination of both. One is one of the party where, you know, we have supplied some materials. They have declared their bankruptcy. That is one, so we have provided for that. Second is, this is in line with our, you know, policy for provision for bad debts. Based on the aging analysis, we do provide for bad debts.
Okay.
You know, aging where, you know, we are discussing with them in terms of, you know, certain stocks, expiries, price differences, you know. On a safer side, we provide for those receivables.
Okay. Now coming to Warren again. This quarter also, I think we have a loss, and I think because of the advertisement that we did in the World Cup or something, which you mentioned in the previous call. What level of OpEx or advertisement do you have budgeted for the next year? What kind of growth can we see in Warren?
The business has, I think, grown from INR 90 or INR 90, INR 92 or INR 94 last year to INR 120-
Yes.
Or 30 this year. That is a good jump.
All our key brands, Sensodent-K, Sensodent-KF, Kidodent, as well as the new launches, Sensodent DSP and Sensodent DPC of the Sensodent family. The Sensodent DSP, Sensodent DPC has been well received. The first consignment which has gone into the market, we are now looking for additional order. As such, the division looks set to continue to grow. Of course, we need to add more products to the basket in order to justify because we have close to 350 people in the field. With three or four products, it's not very effective. We have a few toothbrushes also, which are being called fillers. They are doing well now. Kidodent in particular, which used to be a Rx product only, has been taken OTX.
Both the ethical team as well as the OTC team sort of focuses on this brand, and it's doing very well. Despite all the advertising expenses, et cetera, et cetera, the toothpaste side of the business at EBITDA is doing decently all right. It is the API CapEx done and the operating cost at API level from where we are really not able to sell anything right now because most products are under validation. Once you see the API side turn around, which is likely to take two quarters more, then the Warren Remedies standalone will also start looking good.
Okay, ma'am. Understood. About one more year for the approvals and the validations to get over with?
Yes. Yes. Yes.
Okay. Again, on the emerging business, we saw pretty good growth this year. You've mentioned in the past calls that we have a good field staff going there and doing good work. Do you expect this to continue over the next two, three years? Do you have the portfolio basket, the products and approvals?
Yes, certainly. I think Sundeep.
Yeah.
Be able to say more.
I'll just come in here quickly. Yes, we do have a very impressive basket and a portfolio, we are mainly operating in Eastern Africa. That is Kenya, Tanzania, Zambia, these three countries where we have field force on the ground, about eight countries in French West Africa. That is Ivory Coast, Mali, Burkina Faso, Benin, Niger, Cameroon, Senegal, and Chad. These are our main areas, it is absolute promotion, scientific promotion that is getting us prescriptions. Secondary business is more important to us, which is actual sale from the grossistes, as they are called, the stockists in these countries, to the retailer. That is being measured. We also have a software installed there, iDoctor. Sales force effectiveness is getting measured in a very proper way.
We are measuring the per head yield as we call it. That is how much per representative we are getting in terms of euros. To answer your question in short, yes, the confidence level is pretty high, for next two to three years on this business.
Understood. On the MMP that we had undertaken, even till last quarter, we were still facing some challenges, some customer approvals were delayed. Now is everything solved, we can only see growth from here? Europe business did show a good uptake.
Yeah.
Any more challenges left?
I think, if I'm not mistaken, a very small delivery of paracetamol remains in the old smaller size in Baddi one, just one. Otherwise, almost all other.
Done, yeah.
You know, customer approvals have come in. We should be able to scale Europe and scale it with addition in margin from here on.
We should still see some margin benefits coming in the next years, right?
Certainly. Certainly.
Sorry to interrupt. May we request you to please rejoin the queue, sir. We have other participants waiting for their turn.
Sure.
Thank you. The next question is from the line of Madhav from Shastra Capital. Please go ahead.
Hi, ma'am. Good evening, and congratulations for the good numbers.
Thank you.
Yeah, madam. See, you know, what is, you know, debt expectation for this financial year and for the next financial year as well?
The debt.
Debt level.
As we said, in IRL alone, there is INR 630 crore debt.
Long-term, yeah.
Uh, which is-
Combined.
Combined. For the total entity, it is close to INR 950 crore. Of all this, our short-term debt which has to be repaid will be around INR 300 crore, right?
Next year, prepayment is INR 147.
INR 140 for the next year. Yeah. INR 140 crore to be repaid in the next year, coming year.
During financial year 2027, is there any plan for any reduction, madam?
Yeah, obviously. We are working on it.
What would be the number? Is it 147 crores for this financial year or for the next financial year?
No, no. 140. Okay.
Yeah. Mr. Madhav, so next financial year, which is 2026, 2027, we have commitment to repay INR 140. Another INR 140 in a year after that, and almost similar amount after in 2028, 2029. About INR 140 crore every year for next three years. While in our objective, our target will be to repay or to prepay a little more than this.
Okay. Is there any additional CapEx than, you know, the normal CapEx? Are we planning for any CapEx expensive kind of thing? Is there either current year or next year?
No.
No. We don't plan any major CapEx now in next two years.
Yeah. Okay. Thank you. On the Europe side, I know when I was talking to the Mr. Sundeep Bambolkar during Q2 FY 2026 call, there was an update from him that he want to update on, you know, Clarity Pharma. There was, you know, 15 products for the 18 months. I think that the 18 months are getting completed by now. The current, you know, because Europe is doing well, and is there any contribution come from that or, any light, you know, management want to share with us on the Europe, the Clarity Pharma business?
Clarity Pharma, as Sundeep had told you that time, has several products. And, probably at that time in Q2 when he spoke to you, few were being transferred. Now, some more products, especially in liquid category, are also going. As I said, in answer to one of the calls earlier, we are very careful. The whole purpose of being on ground in U.K. is to be able to get more margins and not lose it. If we see that the market is not opportune, on price front, then we hold. In that manner, Clarity business is yet to come to a sizable level where we can talk about.
Understood. Anyway, that's natural that you are taking an active participation depending upon the market situation. I understand.
Yes. Yes.
Yeah. On the domestic front, madam, actually, no, We could not know, other than the legacy product, we cannot bring any other product for the flagship product, rather than the old distributor take it up.
We have done extremely well on new launches, sir. I think, fourth quarter, total new launch has contributed to more than INR 2 crores.
Yeah, INR 20. Total INR 20 crores.
Total Hmm?
In this particular financial year.
In the financial year, INR 20 crores.
Yes.
Yeah. We are getting a sizable amount in new launches, and they are doing very well.
Yes.
Products like Cicalpm6, Dropizin, Drotitec M, we have Locycode, OHG3. We have Vepan CV, opanza. A lot of new products as well as brand extensions being launched. The latest product which we have launched in this quarter is Cyclopam Suspension. There's also Strawferri. All our new products are doing well, pretty well. Sorry?
Yeah, if you can add those listings in the management presentation, that will help us more.
Okay.
Yeah.
All right. All right. We will do that.
A lot of investors read the management. That helps us more.
We will do that. Yeah.
Thank you. Thank you. Thank you. That's all from me. Thank you, madam. Thank you.
Thank you. The next question is on the line of Maulik from B&K Securities. Please go ahead.
Ma'am, thank you for the opportunity again. Just wanted to understand what are our growth triggers for the regulated markets for the next year, which is FY 2027, 2028?
You know, for the reg markets, of course, the Europe business of base contract manufacturing will continue to grow. More than top-line growth, that business is likely to give us better margins in the coming year because it could be manufactured in plants which have completed all its MMP scale-ups and all those things. In U.S., while historically we were only dependent more on steroids, we have now added a substantial solid oral base, and that is also doing very well. In this year, both in Europe and U.S., we intend to launch our liquid orals, which is not as crowded a space as, you know, other solids. We expect to do well here also. There are a lot of plans, lots of products filed, being approved and getting approved also.
You will see a good combination of efficiency in manufacturing, with the value add of, you know, good orders in place helping us grow these businesses.
Okay. Okay. Thank you so much, ma'am. Thank you.
Thank you. The next question is on the line of Kunil Mehta from Boring AMC. Please go ahead.
Ma'am, more I'd like to know what is the capacity utilization for our oral business at Warren Remedies out of the four lines. What are the initiatives we are taking to increase our sales other than OTC, export or contract manufacturing for some bigger players?
Yeah. Thank you for that question because we have started exports from that site, through at this stage, to South Africa, manufacture of.
Toothpaste.
Toothpaste. I don't know whether it has come in this quarter, huh? Yeah, it has.
Yes. Yes. This quarter.
INR 37 lakhs. A small amount to start with. We are seeking other such opportunities. Meanwhile, about four lines you said, no? We have actually installed only one. Although provision was made, we have installed only one. There was a second line of mouthwashes, we have not gone for that yet because we continue to make mouthwashes at other locations. Capacity utilization of the toothpaste block is not a very big concern for us because we have set up a state-of-art unit, we are able to make 500, 5,000 kilo batches with only five people inside. That is our better managed plant. You know, we really have good control on efficiency in that plant.
It is the API plant, as I said, where we have both capital expenditure done. We also have operating expenses because we are doing validations of products there. These validations are not resulting into sales right now because those products are not yet approved out of that site. That is putting pressure on the entire Warren Remedies numbers. As somebody said earlier, it'll take us one more year to get reg market approval. We are trying to hasten it by varying site of a product from Patalganga to Aurangabad. Hopefully, that should bring U.S. FDA faster, but I cannot promise that.
Understood. One more question, ma'am. Our India business over last few quarters, we are seeing growth in cardiac and anti-diabetic. Is it due to low base or we have launched new products?
No, it is, our base is very low, which is why you are seeing the growth.
Understood. What is the actual revenue base you will see growing for the India business apart from the OTC? In line with IPM or it will degrow for next few years, say?
No, in line with IPM. In line with IPM.
Understood. Understood. Understood. During the quarter, FPP was technically profitable as we have seen in last quarter, if we exclude the Warren losses?
No. FPP, as Pramod explained, we were impacted with some extraordinary costs which were taken at end of this quarter on expired products, et cetera, which is why it has seen a hit.
-INR 4 crore .
Yeah.
INR 4 crore.
Almost INR 4 crore was impacted, was the impact seen. Also the product mix. We actually looked into this because the COGS on the Q4 sales of FPP have been extraordinarily high.
During-
So-
The quarter.
Yeah. Yeah. Yeah. Some of our products are not. We do have a few products in our basket which don't get very good margins. When we sell more of that or when we have to do a shelf stock adjustment or things like that, in that quarter you see a hit.
Understood. Going forward, would we see that again or it will reduce as we are seeing increase in doctor popularity?
It should reduce. It should reduce.
Understood. Understood. Can we get the new product sales revenue mix in the overall India business during the year or quarter?
Uh, I think-
2024 during the year.
I think we have done close to INR 20 crore.
INR 20 crore during the year.
In new new launches this year in India. One of the highest is come from Drotitec, and it has done well. Your Vepan , Braceness. There are many products. What you could do, like somebody requested, is possibly from next time, if possible, in the FDA, we'll give you a note, a line or two on this.
Ma'am, if we exclude the anti respiratory and anti-infective, which has seen degrowth, our base control would have been the volume growth. Is it correct, ma'am?
Yes. There is another category which got impacted in this quarter in particular, which is the urological, which is our urinary alkalizer, Cital.
Okay.
Like I explained, that should kick off this. You know, because of season these, there are shifts in these products. You get it sometimes in Q4, sometimes in Q1 of the next year, depending on how summer or rains kick off. For India business it is better to look at a MAT performance and to review whether the products are.
Doing all right, what is happening to them. Otherwise there will be these kind of peaks and troughs.
Understood. Understood. Ma'am, the asset for health sold land, is it at the book value or we will get a more value than we have shown on the balance sheet right now?
We should get more-
Yeah.
This is book value.
Okay, understood. No questions. All the best.
Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and 1. The next question is on the line of Madhav from Shastra Capital. Please go ahead.
What is the revenue for the current quarter, madam?
Let me just check. For the year it's INR 120.
Total quarter is INR 27.
INR 27 crores. Yeah.
INR 27.4 crore.
Okay. the, so what is the, you know, plan for the I mean, how much reduction in interest expenses can be considered for both standalone and consolidated for the current financial year, madam?
Mr. Madhav, if you see our repayment schedule is INR 140, as I mentioned, and our average interest rate is in the range of 8.5%-9%. You can, you know, consider that much reduction in overall interest cost.
Okay. The INR 960 crore -INR 140 crore means, INR 960 crore, INR 140 crore means, around INR 120 crores reduction will be there.
Yeah. For that INR 40 crore repayment, if you consider.
S taggered manner.
Staggered manner. average cost of borrowing is just short of 9%.
Yes. Understood. Understood.
Yeah.
Understood. Thank you. Thank you very much.
Okay. Okay.
Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and one. As there are no further questions from the participants, I now hand the conference over to the management for their closing comments.
Yeah. Thank you, everybody, for joining us on this discussion and call, and for the very interesting questions you have asked. Wishing everybody a great weekend ahead. Thank you.
Thank you.
Thank you.
Thank you very much.
Thank you, members of the management team. Ladies and gentlemen, on behalf of Dolat Capital, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.