Ladies and gentlemen, good day and welcome to the Jagsonpal Pharmaceuticals Limited Q2 and H1 FY26 earnings conference call hosted by Go India Advisors LLP. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note this conference is being recorded. I now hand the conference over to Ms. Soumya. Thank you, and over to you, ma'am.
Good day, everyone, and welcome to Q2 and H1 FY26 earnings con call of Jagsonpal Pharmaceuticals Limited. We have on call with us Manish Gupta, the Managing Director; Amrut Medhekar, the Chief Operating Officer; and Nirav Vora, the Chief Financial Officer. We must remind you that discussion on today's call may include certain forward-looking statements and must be therefore viewed in conjunction with the risk pertaining to the business. May I now request the management to take us through the financial and the business outlook, subsequent to which we will open the floor for Q&A. Thank you, and over to you, sir.
Yes, thank you, Soumya, and good afternoon, everyone. Thank you for joining us today for this earnings call of Jagsonpal Pharmaceuticals Limited. We are pleased to welcome you all as we share our company's progress, as well as discuss our growth strategy. We appreciate your interest in JPL for Jagsonpal and your continued support as we navigate through this pivotal phase of our growth journey. I personally, and we at Jagsonpal, have always advocated the need for stronger regulations and oversight in manufacturing or for manufacturing in India, especially or specifically for India. I believe the recent unfortunate events of October have hopefully brought this to the forefront. Jagsonpal stands for over five decades of trust, quality, and excellence, a legacy built on strong brands, deep doctor relationships, and an unwavering focus on quality and trust.
Our journey always has been about combining medical science with purpose-driven growth, and that commitment continues to define us. This quarter also marks a deepening of leadership spending. With the appointment of Amrut Medheker as Chief Operating Officer, Amrut comes in with over 30 years of experience in sales and marketing functions across flagship organizations such as Wockhardt, Zydus, Ranbaxy, and Torrent. We are also pleased to welcome Nirav Vora as our Chief Financial Officer, who brings in over 18 years of overall experience in finance and accounts across reputed organizations, including consultancy and big fours. We are confident that this expanded leadership bandwidth will further strengthen Jagsonpal's growth and profitability engine. Now, coming on to the business as well as the industry for this quarter, the Indian pharmaceutical market grew at an average of about 7.5% in Q2 FY26.
This growth has been largely driven by price, as well as new product launches, with negligible volume growth. Unfortunately, the therapies and the markets that we are generally present in Jagsonpal have grown much slower, at 2.5%-3% during the quarter. September also saw the introduction of the much-awaited GST 2.0 reforms. This, we believe, is a big positive for both the overall economy of the country as well as the pharmaceutical industry. While this shall help bring down the overall cost of healthcare in the country, since the sector saw a meaningful reduction in GST from 12% and 18%- 5%. It did bring in certain temporary challenges in the month of September. This had an impact on our channel partners as well, since they were carrying inventory with higher GST paid on the same.
Overall, I think we worked very, very collaboratively, both at the industry level as well as the company level, navigating these challenges well and also took care of the channel partners, either through an extra 30-day credit for September sales and/or 1% additional discount for advance payments. However, this did moderate our performance in Q2, with a largely flat performance as of last year. Overall, for the first half, we stood at 10% growth in sales and about a 39% increase in PAT, underscoring the strength of our business fundamentals as well as the brand portfolio. Amrut is now settling into his new role, and he shall be providing his perspective on driving growth in business going forward. Overall, with the GST transition behind us, we are confident of a stronger performance in the second half of the current year.
Nirav will also take you through the detailed financial performance during the period. It is noteworthy that the company has maintained its cash balance of INR 160 crore in June, even at the end of September, and this is in spite of a much higher dividend payout of 125% or INR 2.5 per share, amounting to close to INR 17 crore during the quarter. On the business front, we have retained our eighth position in the corporate CVM rankings, supported by the performance of our key brands. Our focus remains on deepening the market penetration, expanding the core therapy areas, and driving science-led innovation to strengthen our leadership in women's health and related segments. We continue to invest in upskilling our MRs in scientific engagement, as well as business enhancement through enhanced productivity.
Beyond business, our CSR initiatives continue to reinforce Jagsonpal's legacy of trust and quality, as we build a stronger, more responsible enterprise for the future. I now hand over to Amrut to share his first impressions in the company before Nirav dives deeper into the financial performance for the period. Over to you, Amrut.
Thank you, Manish, and hello, everyone. I'm delighted to be here and to be part of Jagsonpal's exciting growth journey. Having spent close to three decades in the pharma industry across organizations like Wockhardt, Zydus, and when I say Torrent, and most recently as CEO at Akums, I've seen how strong brands, agile teams, and focused execution can truly transform businesses from good to great. At Jagsonpal, I see a strong foundation, trusted brands, deep market relationships, and growing presence across the key therapeutic areas. This opportunity ahead lies in scaling this platform with sharper execution, marketing excellence, and operational agility to unlock the company's full potential. I look forward to working closely with the team to accelerate this momentum, and from next time onwards, you'll be seeing and hearing a lot more from me as we take this journey together.
Now, I request Nirav, our CFO, to please take us through the financials for the quarter and the half year. Thank you so much.
Hi, everyone, and thank you, Amrut, and thank you, Manish, for the introduction. I would like to take a moment to express my gratitude to the entire Jagsonpal family for the warm welcome. As we move forward together, I'm confident that we will continue to uphold Jagsonpal's long-standing values of trust, quality, and excellence in everything we do. Coming on to the financials, the second quarter performance remained relatively steady, with the revenue at INR 74.5 crore, reflecting a temporary moderation due to the GST transition. EBITDA for the quarter stood at INR 18.1 crore, with a margin of 24.3%. Our PAT grew up by 10% year-on-year to INR 12.6 crore, with a margin of close to 17%, up by 150 bps , underscoring the company's operational resilience and brand strength.
For H1 FY26, the performance remained robust, with revenue up by 10% year-on-year to INR 150 crore, EBITDA going up by close to 9% year-on-year to INR 33.8 crore, with a margin of 22.5%, and PAT leading to INR 23.4 crore, posting a growth of 39% year-on-year with a margin of close to 16%, up by 320 bps . As already mentioned by Manish, we paid out the dividend of INR 16.7 crore in this quarter, reaffirming our commitment to deliver shareholder value. Even after the payout, we continue to maintain a strong cash position of INR 160.4 crore on our books. As we move ahead, our focus remains on sustaining profitable growth with prudent financial management, efficient capital allocation, and continued value creation for all stakeholders. That was it from our side, and we shall now open the floor for Q&A. Thank you.
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press Star and 1 on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press Star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a while while the question queue assembles. The first question is from the line of Sajal Kapoor from Antifragile Thinking. Please go ahead.
Yeah, thanks for the opportunity. A warm welcome to Amrut and Nirav. We now have a multi-engine governance and look forward to significant improvement in our performance. Today, I've got three questions. First one is, there are two clear headwinds for our industry. One is trade generics, and the other one is generic generics or generosity. Both these segments are growing much faster than branded generics. Why will this not impact the terminal value of all branded generics companies in India? That's my first question. Thank you.
Yeah, so Sajal, I'll give it a shot. Because this obviously is a matter of great debate and discussion. We'll keep it short in this conversation, and we can have a separate conversation again later on. I believe India is not one market but multiple markets. There is a place for trade generics. The customer base for trade generics is different, so also for generosity. I mean, so far, nobody in India expected that likes of Mounjaro or KEYTRUDA can become such big brands, which are patented products priced at par with global prices. You have to see it, India is a multiple market. With due respect to trade generics and generosity, the entire aspect of quality needs to be looked into. As I also mentioned in my opening remarks, that's one area India needs to really focus on. Made in India for India.
We are very good in manufacturing for outside India, but unfortunately, we do not have similar standards for India. This is where I do believe more regulatory oversight will come in, and that will have its own impact on the price differential between trade generics and/or generosity scheme versus the branded generics. I don't have the right answer for you. I believe trade generics and generosity will stay. They will grow faster because we have a lot of bottom of pyramid to cover. The growth of the branded generics, which is 7.5%-8%, will not go away. That market is growing. That market will continue to grow. As Indians aspire for better quality of life, so will people move from trade generics and generosity to branded generics. Does that partly answer your question?
Yeah, yeah. That's helpful, Manish. We can take it offline and have a detailed conversation. In the interest of the time, Manish, I'm sure you, Amrut, all of Nirav as well, we appreciate the fact that there are only two drivers to create value in any business. One is the PAT growth and converting the majority of that PAT into cash flows. The second one is having a good enough ROCE. 20% plus, in my definition, is a good enough ROCE. ROCE-wise, we are well ahead of where we should be. Even including the cash on books, excluding the cash, our ROCE is in a different orbit altogether. The challenge for our business is clearly the PAT growth. We are converting all of the PAT into operating cash flow, so that's not a problem.
Now, if I look at the industry, Manish, Torrent Pharma bought many companies and integrated them successfully. To my knowledge, neither Curatio nor JB Pharma acquisitions were bought at a low price to sale. Both were premium acquisitions, and there were many who criticized Torrent Pharma for paying top dollars for those acquisitions. We have seen how good their execution is in buying good quality assets, paying good money for those assets, and then integrating them. Now, given the fact that our cash is INR 160 crore as of today, and this will only increase quarter- over- quarter, do you think we should be a little more aggressive in our inorganic activities?
Right, and maybe there may be some disconnect here as well between us. Clearly, we need to be more aggressive. However, while I fully appreciate Torrent's capability in integration management, I do not think we are, as an organization, that capable or mature. Okay? I do not think Torrent's capability has been replicated by anybody else in this country. It is kudos to Torrent on the way they have created value out of expensive acquisitions. I will definitely expect Jagsonpal to be more aggressive, but certainly, it is not feasible for us to be as aggressive as Torrent in terms of the value that they pay. We have to also bear in mind we cannot afford a big mistake. Unlike Torrent and all, whose scale is so different now, a small mistake will not cost them the company.
In our case, we are not big enough to take a big mistake. Does that answer?
That's appreciated. Yeah, that's clear. Yeah. Finally.
Sorry, one second. You will see us a little more aggressive in this regard compared to what we have been in the past.
Sure. Look forward to that, Manish. Finally, in the interest of the time, what is the near-term plan for our per capita or MR productivity? Because I think that's one variable, and I know you have spoken a lot about this. You acknowledge the fact that our MR productivity is today way below where it should be for the kind of business Jagsonpal Pharma is. I know Amrut has joined the team, so now we have a double engine Sarkar, and hopefully, we will work on that metric of per capita or MR productivity. I mean, what should be the reasonable expectations from our side as a shareholder that, look, this is the kind of road ahead for MR productivity, and how can we track the performance on that metric, please?
I'll give you a little of my perspective as an equal shareholder as well. I'll have Amrut dive in further in this. This is an area of weakness and also strength in a way for Jagsonpal. Our profitability is where it is in spite of low MR productivity. Therefore, as the sales grow faster than the market pace, the attractive value creation or profitability impact will be much higher for us vis-à-vis growth, which would have come from enhanced MR numbers. That's the way I look at it for us. The fixed costs are already there. We are working on various initiatives to increase our MR productivity. I must admit that so far, we have not been able to display outcomes in that. I believe Amrut joining us will give us that last missing link that we are kind of losing out in terms of getting it right.
Amrut, would you like to add anything on this?
Yes, thank you, Manish. Thank you, Sajal, for asking this question, and I did expect this question to come. The point is to say that you have to look at it from two lenses. One is in terms of our penetration for the brand or the portfolio that we have. Our portfolio mix is such wherein we have some of the legacy brands which are overweight as far as our overall revenue volume is considered. Therefore, having the MRs at the right places is important because these are mostly Class B and Class C town products. Having said that, we are working on the same. I think in the recent past, you would have possibly seen that the new product contribution is increasing.
We are looking at fine balancing, one, the legacy brands or what we call them as volume contributors to continue contributing while increasing the new product portfolio, which will possibly drive our growth because they are into high-growth segment molecules. I hope this answers partly your question.
Yeah. Thank you, Amrut and Manish. I wish you all the very best. Thank you.
Thank you so much.
Thank you, sir. Participants, anyone who wishes to ask a question may press Star and 1 on the touch-tone telephone. The next question is from the line of Deepesh J. Sancheti from MAANYA FINANCE . Please go ahead.
Hi, am I audible?
Yes, sir, you're audible.
Yeah. Can you share the growth rates of your top five brands in Q2 YoY as well as QoQ ? And how many of your brands are now in that INR 50 crore club or expected to reach that by end of FY 2026?
Our growth rate is, I mean, as you see, the overall performance is flat for the quarter. Certainly, the key brands have also not grown much. It is all between 3% and 4%. Some brands have grown 3% and 4%, and some brands have been flattish in the top five brands. That is the broad overall because that is what determines the eventual growth rate of the company for us. That is part one of your question. As far as the top INR 50 crore brand is concerned, we currently only have one brand in that, which is Indocap, Indocap group of products. Right now, that is the only one which is in that range. It is in the early INR 50 crore only. I do not foresee any other brand right now in that range, though we have multiple brands in the INR 30 crore-INR 40 crore range.
They will take some time to get into that INR 50 crore club.
Okay. So are any brands showing any early signs of maturity or a slowdown? And how are you refreshing them? I mean, are you extension of lines or maybe dosage forms or geographical expansions?
Yeah. Some work like Indocap, which is our largest brand. We just launched Indocap P about six months back, which is a combination of indomethacin and paracetamol. There are multiple initiatives that we are undertaking to refresh some of these legacy brands, as Amrut mentioned. The key is for them to grow a little faster than what it has been doing, as also, of course, the new products to become more successful than what we have been so far demonstrating. These are the two growth levers, really, that will drive a faster growth going forward.
Going ahead, what will be the growth drivers for the company? Because this quarter was flat. For FY 2026, what will be the growth drivers?
If you look at our deck, I have consciously. See, because so far, I was driving the strategy alone. Amrut has been a great welcome addition to the company. Allow us a couple of weeks for Amrut to settle down because I do not want to impose or. Him to. Let him play a very important role in rebuilding or refining the strategy going forward. We will come back to you with our more aspirational growth plans going forward in a couple of weeks.
Okay, sir. Because we are long-term investors, so it's okay. I mean, a couple of weeks, a couple of quarters also is okay. The growth trajectory, if it is in line, we'd be happy to. Enjoy the entire ride with you. Just one more question. If you can give any guidance, particular guidance, especially on your ROE numbers, if you can, will it be maintained at around 18? I mean, right now it's around 18.6 and 19. Will it be still this, or will it go to the mid-20s or something going ahead? I'm talking about this for at least about FY 2027, FY 2028. If Amrut also can just add in what would be his targets.
Yeah. I'll take the first part first, and then Amrut can add on. This is also going to partly impact what I will be kind of responding to Sajal question as well. This is a fine blend you have to carry, okay? Because any acquisition will tend to pull down your ROCE. There's no way you can do a deal at 20% ROCE in this country, not even at 5% to begin with, because 20 times EBITDA is the minimum expectation in our country. On our own, our ROCE will continue to improve. It will not only cross 20%, but may be much higher in a couple of years. Having said that, we also need to balance our growth or use the cash for certain strategic inorganic strategies that will always push down the blended ROCE to begin with.
All in all, our aspiration is to stay 20% plus in a blended way, but there will be periods of dragging this down whenever there is a meaningful acquisition. Amrut, would you like to add?
Yeah. As guided by Manish, I think we'll be looking at that higher double digit in terms of growth. Coming to your second part of the question, in terms of brands, we do see some green shoots in the new product that had been launched in the past. We are also looking at the product lifecycle management, some of the power brands or what we call them as a pillar brand, which contribute heavily. We are looking at that product lifecycle management, which hopefully will translate into much higher yields per MR. It will answer both the question in terms of productivity as well as profitability for us.
Great. All the very best. Yeah, it does. All the very best and hope to see your next growth plans soon in the couple of weeks, as you had just mentioned. Thank you so much.
Sure. Thank you.
Thank you, sir. Participants who wish to ask a question may press star and 1 on the touch-tone telephone. The next question is from the line of Shivnil Giri from Centrum PMS. Please go ahead.
Hello. Hi. Thank you for taking my question, sir. I just wanted to understand this one part about your strategy that you, in your presentation, you mentioned this before, that you'll focus only on sub-chronic therapies. I just wanted to understand why this is specifically the case that you picked this category to be in. Would this be restrictive in terms of growth over a longer period in terms of adding new brands since not every year you would be able to make an acquisition of brands or portfolio? Just that one question. Thank you.
I'll address it in my way, and then Amrut can add his comments to it. See, every company has a legacy and its own strength. This company historically has been strong in sub-chronic segments. That is what we believe we can further. The reason for avoiding chronic segment was, to begin with, or to start a chronic segment business today is not very easy. It's an overcrowded market. It is where there is a lot of, or there is a fair bit of doctor gratification involved, and that's not a business model we can or we want to pursue. That has been the fundamental reason of leveraging your strengths rather than focusing on or getting into areas of weakness. Having said that, inorganic strategy is where we are open to doing things which are outside of what we are doing today.
Even if we were to get into chronic segment, I believe rather than starting from zero, it will be through inorganic means rather than organic. Shivn il, does that answer?
Yes. Yes, yes. It's not that we are wedded to sub-chronic segments, but it's just that our current strength lies in that, and we find it a very—we still have plenty to do within that segment to look outside.
Understood. In terms of acquisition size, what would be the, I mean, the cap or the ideal size that you would be looking for in terms of acquiring a company or a portfolio of brands?
I do not think there is any. Obviously, we cannot do the big deals that Torrent can do. Fundamentally, you look at us as in a three-way. Acquisition funding. One is obviously we have INR 150 crore of cash, and we generate about INR 15 crore every quarter, plus or minus here and there. That is the powder that we have done, powder we already have. We also have a reasonable ability to leverage our balance sheet. Third, if needed, we obviously have, we are backed by shareholders who are willing to put in more money and/or even using equity as a gunpowder. In that sense, I think we have a fair bit of meat available for us to fund acquisition. Having said that, obviously, we cannot do things like Torrent does.
Understood, sir. Thank you.
Thank you.
Thank you. Participants who wish to ask a question may press Star and 1 on the touch-tone telephone. The next question is from the line of Amit Aghicha from HG Hawa . Please go ahead.
Good afternoon, sir. Manish Ji, thank you for letting me answer the question. And welcome, sir, Amrut Ji and Nirav. My question was connected to how much of the 10% H1 revenue growth has come from volume or pricing and new products?
I don't have an answer upfront or readily available. Can we get back to you, Amit?
Yes, yes. Sure, sure. Sir, the basic revenue guidance for FY26 for the second half?
This is something, as I mentioned, a lot, so we do expect growth in the second half as well. Generally speaking, we are targeting about 10% growth overall as an organization in the medium term. I'm talking of this year with accelerated growth thereafter, but allow us a couple of weeks to give you better guidance for the future. For the rest of the year, you can consider about a 10% growth.
Thank you, sir. I appreciate answering your question. All the best for the future.
Yeah. Thanks.
Thank you. Participants who wish to ask a question may press star and 1 on the touch-tone telephone. The next question is from the line of Dia from Sapphire Capital. Please go ahead.
Hello, sir. Thank you for taking my question. I just wanted to ask if you have any planned launches for the rest of the year?
We definitely have plans, but I think till we launch, we do not want it to be kind of complicating in an investor call. Definitely, we will have plans for launch in the rest of the year, new products. As and when we launch, we will make it public.
Any revenue guidance for the rest of the year?
I think I just did that in the previous speaker's question, Amit's question, that we are kind of broadly guiding towards a double-digit growth, low double-digit growth for the rest of the year. Market is definitely tough. I'm not assuring this will happen and all. We would love to go there, but yes, all efforts are to achieve a low double-digit growth for the rest of the year.
All right. Thank you.
Thank you, ma'am. Participants who wish to ask a question may press star and 1 on the touch-tone telephone. The next question is from the line of Murtaza from PinPoint Capital. Please go ahead.
Hi. Good afternoon, everyone. Thank you for taking my question and for the opportunity. I had a few questions regarding GST and the new regime. I have quick three questions on it. First of all, has the recent GST 2.0 made any impact? Has it impacted our cost of goods and/or either our margin profile in Q2?
Yeah. So. As you would note, that in pharma, the GST has moved from 12% and 18% respectively, 12% for drug products and 18% for nutraceuticals to 5% flat now. All in all, the MRPs of the products have come down. As a company, it has no impact because it's a flow-through or it's a pass-through. Our inputs. We have an inverted GST structure now in the industry because many of our inputs are at 18%, especially APIs, while our output is at 5%. Given the gross margin in this industry, that is not going to make any impact per se, given that GST credit is available. It has no impact per se. Having said that, the minor impact that we had in Q2 was on account of additional 1% discount that we gave for advance sales for September related products.
If you recollect, I mentioned in my opening remarks, most of the industry, between industry leaders and AIOCD, the final agreement was a 30-day additional credit and/or 1% additional discount for sales made in September to compensate them for the higher GST products that they will carry. For the sales made in September, we ended up giving 1% upfront discount for advance payers.
Okay. This helps. The second question I have is, are there any supply chain inefficiencies that have increased the logistic cost or working capital cost?
Coming from GST or otherwise?
Otherwise.
No, no. GST has obviously no impact. Otherwise, yeah, of course, if you, I mean, cost-wise, there's no impact, but you would realize that last quarter has been a period of disturbances, prolonged monsoon in certain parts, Punjab going underwater, Assam had double whammy, including Zubeen Garg incident when almost 15 days that state was shut. These were the logistical or business challenges that I think entire industry or entire country was facing, but nothing coming out of GST or otherwise.
Okay. And one final question I had. There has been a slight uptick in the margin. Does this anywhere relate to the tax impact or maybe or is it just core operating efficiency?
Yeah. It's only on core operating efficiency and product mix. That will determine. I don't think we are getting any benefit or adverse impact of anything outside our business.
Okay. Okay. These were my questions. Thank you for taking them. Thank you.
Thank you. Thank you, Murtaza.
Thank you. Participants who wish to ask a question may press Star and 1 on the touch-tone telephone. The next question is from the line of Attar Syed from Smart Sync Services. Please go ahead. Sir, requesting you to please unmute your mic. Sir Attar Syed, requesting you to please unmute. Yes, sir. You're audible.
Yeah. I have some questions. Yeah. My first question is related to this, sir. What is our market share in this gynec segment and other segment as well? What is our current market share that you hold in the market?
I don't think we can even measure Jagsonpal in terms of market share because we are a very tiny player overall in that context. However, having said that, in the markets we are present in the gynec area, we are the eighth-ranked company in this country. Market share data, I don't have readily because it is in decimals. As I said, within the gynec segment and the CVMs that we are present in, we are the eighth-largest company, which makes us meaningful in that space.
Okay. Sir, what is this intangible asset that we have? What is the reason it declined from INR 89 crore to INR 81 crore in one year? Can you please explain what is this intangible asset and what is the reason for some decline in intangible asset?
Yeah. Since Nirav will know, I'm taking this time, but obviously going forward, Nirav will be answering. This intangible got created because of acquisition of Yash Pharma's domestic or India business. Which was about INR 95 crore acquisition. Out of that, INR 88 crore or INR 89 crore got converted into intangibles. These intangibles are depreciated every year. Therefore, you'll see a depreciation line in our books as also a reduction in these intangibles every year.
Okay, sir. Last question is, how many MR do we have right now and our MR attrition rate?
We have 1,000 MRs in the organization between the four divisions that we operate in. The attrition rate would be in the region of 30%.
Okay, sir. Thank you. Thank you so much.
Thank you, sir.
Thank you. Participants who wish to ask a question may press star and 1 on the touch-tone telephone. The next question is from the line of Abhishek Singhal from Perpetuity Ventures. Please go ahead.
Sir, thanks for taking my question. I had just a couple of questions. Number one, if you can please highlight a bit on the Yash Pharma acquisition. It's been almost a year. How did it go? Are you happy with the integration that it's playing out? Going forward, how is the integration playing out? Some sense around a 12-month view post the acquisition. And any learnings that you think you can possibly take from that in the future acquisitions that you do in the domestic pharma space?
Yeah. So, Abhishek, I'm surprised you came in so late in terms of your questions. So happy to be here. I think Yash Pharma was the first acquisition or the only acquisition that JPL has done thus far. While I'm personally exposed to multiple acquisitions, it was a great learning for this organization because acquisition is not about one person. It is about the entire organizational capability has to come up. I believe, as a company, we have done extremely well in this acquisition management and post-acquisition management specifically. The transaction or the business that we acquired is doing well for us. It is growing. It is the faster-growing business within the organization. The profitability, which was roughly half of JPL level, has now come up to JPL's level. That's why you'll see that there is no dip in our margins.
In fact, we continue to be on a reasonable track of margins now. Also the working capital and all that. In spite of this acquisition, our working capital hasn't gone up. All in all, we are extremely happy with this acquisition strategically, and more so in terms of organization capability building that we have achieved. See, today, it gives me greater confidence to go and acquire something going forward and taking a bigger step compared to what I would have done earlier because it was not about me. It is about the JPL capabilities. With Amrut and Nirav joining, I think that capability has also gone up furthermore.
Sir, is the gross margin now for Yash Pharma in line with what you had anticipated? Because earlier, you were talking about the fact that we have to get the backend sorted out here to some extent to get the synergies in place.
Yeah. Yash Pharma, historically, that business acquired had a lower gross margin because of the nature of products. They are predominantly a liquids and cream organization with hormonal manufacturing that JPL, hormonal products that JPL had. Margins are tracking well. We are able to improve a bit, but my guess is a lot more will be done in the future. It's a journey. We do believe we have the largest scope in gross margin improvement within the organization, both at Yash, I mean, largely coming out of Yash Pharma portfolio.
Got it, sir. Thank you. Sir, and just if I kind of broadly construct the growth, the three elements to it, one is volume, value, and then new product introduction. Now, when we acquired, it's been two-three years since then. New product introduction was supposed to be brought into place, which can kind of drive growth. Some highlight into where the journey currently stands. How are you looking at the launches forward in terms of number of launches or specific categories, more in terms of line extension? The new product introduction segment of the potential growth, if you can highlight a bit more, does it entail investing more or possibly in licensing? I just need you to provide some light on that element as to what to anticipate going forward there.
Gotcha. I'll answer a bit of this, and then I'll have Amrut respond a little better. If you look at this three years of, you have to split it in two parts because when we acquired Jagsonpal, there was a great product happening at that point of time for JPL, which was Dydrogesterone. That product became from 0 to INR 40 crore in about 18 months' time for the company. The last 24 months is when that product has gone back from INR 40crore- INR 10 crore . What has happened is, while overall our growth is lower, or what you see as growth for the last two years is lower, a lot of it is because of the significant underperformance, which is strategic by us. I mean, that decision was taken by us given the way that market changed.
That INR 30 crore eating away into the growth of other products is showing up in terms of final outcomes. It's not that other new products and all are not doing well. Can they do better? The answer is yes. Unfortunately, they are not able to compensate for the hole that we got from Dydrogesterone over the last two years. That has been kind of moderating our growth. Dydrogesterone experience, we are also very cautious around new product launch wherein we do not want to get into potentially crowded areas. Just to give you an example, while me and Amrut are still debating, we do not intend to launch like a GLP-1 on the date of patent expiry because we know 80 guys will be there on day one. Our new product launches are always going to be in more difficult categories where we have to do concept selling.
Therefore, the buildup will be slower but more sustainable. Amrut, can you add to this in terms of how you look at new product strategy and how do you want to drive this going forward?
Thank you so much. It suffices to say two things which you would have possibly understood from the discussion so far. One is we have a very high SKU of some of our pillar brands or large brands, legacy brands, which contribute significantly to the revenue. Therefore, there is a fine balance which has to be brought in while we build up our new product portfolio. There is a limited time constraint in front of a doctor. We do not want our large brands to get compromised in front of doctor promotion, which we have very time constraint. At the same time, building a new portfolio which is more vibrant and is growth-oriented. That work is on.
While we are curating that list of new products for future, we will possibly disclose that or you will come to know when the commercial launches happen or we are close to that launch. I hope that answers to you.
Thank you very much. Thanks, [audio distortion]
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