Anlon Healthcare Ltd

Ladies and gentlemen, good evening and welcome to Q4 and FY26 Earnings Conference Call of Anlon Healthcare Limited, hosted by Confideleap Partners. As a reminder, all participants' lines will remain in listen-only mode and there will be an opportunity for you to ask questions after the management's opening remarks and presentation. Please note that this conference call is being recorded. Before we begin, I would like to mention that certain statements made during this conference call may be forward-looking in nature. These statements are based on the current expectations, assumptions and estimates of the management and are subject to various risks and uncertainties. Actual results may differ materially from these expressed or implied due to several factors. The company undertakes no obligation to publicly update or revise any forward-looking statements. We represent the investor relations for Anlon Healthcare Limited and on behalf of Confideleap Partners, I extend a warm welcome to all investors, analysts and participants joining for us for Q4 and FY26 Earnings Conference Call. The company will be represented by Mr. Punit Rasadia, who's the Chairman and MD of Anlon Healthcare Limited. Over to you, Punit ji.

Yeah, good evening everyone and a warm welcome to Anlon Healthcare's Q4 and FY26 earnings conference call. Thank you all for joining us today. FY26 has been a milestone year for Anlon in which we delivered strong financial growth while meaningfully strengthening our manufacturing platform, regulatory capabilities and long-term growth foundation. Let me begin with our financial performance. On a consolidated basis, total income for FY26 grew 42.98% year-on-year to INR 172.22 crore from INR 120.46 crore in FY25.

Thank you. Participants who would like to ask questions may raise their hands and they also have the option of posting their questions on the Q&A box. We have the first question from Miss Disha. Miss Disha, you may unmute and introduce yourself.

Hello? Am I audible, sir?

Yeah, Disha.

Yes, thank you so much, sir, for this opportunity. Sir, my first question was on our overall revenue growth. So, I think last time we spoke, we were targeting around INR360-370 crores this year and in the PPT we've given 30% CAGR. So what should we look at as the overall numbers, sir, for FY27 revenue?

Yeah, we are still remain the bullish on the revenue numbers what we have given to you. That should be right now the whatever the visibility we are having, it is between INR 380 to 400 CR for FY27.

So okay, so we're expecting higher than that also. Okay, sir. So sir, this current capacity that we have, this 1400-1600 metric ton, what is the peak revenue potential of this current consolidated capacity, sir?

Uh, see, right now in the current situation with the increase of the price, obviously we have increased the price of our product also. In this scenario, I think we may go up to the INR 450 to INR 500 CR in the peak capacity of the consolidation. Yeah.

Okay, okay. And sir, currently…..

But right now, whatever capacity we are utilizing, that is consolidation basis, it is somewhere between 62 to 65%.

Ah, so sir, this peak we will reach in FY27, right?

Uh, we hope so that we can utilize on the peak level, but right now practically it is not possible to use more than 85%, so I am just giving you the figure assuming that we'll use the 80% of the existing installed capacity.

Okay, okay. Fair enough, sir. And the new expansion, sir, that we were targeting, what is the Capex that we're looking at and when do we expect this facility to come online and what will be the revenue potential from that facility?

See, that new Capex in the existing Anlon Healthcare's premises, the work has already started. The basic plant layout is almost under the approval and we are expecting by mid of this month, so we are planning to start the construction activity by end of this month or maybe early next month, and the Capex is expected somewhere around INR130 CR.

INR 130 CR. So and this facility with commissioning we’ll expect by Q4?

Uh, mostly by Q1 of FY28.

Okay, okay. And sir, what will be the peak revenue from this facility?

Uh, that will—if we'll consider the standalone Anlon with the expansion, then we can go up to the INR 400 to INR 450 CR in the standalone at the peak level.

Okay, and sir, for this new capacity that will come, what sort of utilization will we target for FY28?

Yeah, that we are considering at least we'll use the 50 to 60% in FY28.

So, around 6-700….

Because see, since standalone and all those things, we have to do some trial run, some of the validation of the product and all those activities, so we are considering six months of working with the new expanded facility.

So around INR 700 to INR 800 CR revenue run rate we can see for FY28.

Yeah, FY28 we are expecting between 700 to 800 CR.

Okay. And my next question was, sir, on your margins, sir. So given this, because given that we have just acquired, sir, there'll be some pressure because of this acquisition as well. So how should we look at the EBITDA margins for FY27 and for FY28?

See, I think, Disha, the EBITDA margin we are trying to maintain the same EBITDA margin, but see, the prices of raw material and global supply chain is totally disturbed, so I think it is not possible for me to predict what is going to happen after this quarter and what

Ah, so so even in the lower, in the worst-case scenario also, it shouldn't go below 25%, that's the range that you

Yeah, we'll not reduce our product price and we'll not sell the product below certain level that will impact on the EBITDA margin.

Okay, and sir, just last question from my side. From what will be , if you can just give me the standalone margins for Apiqo and Bizotic, EBITDA level margins?

Uh, Disha, can you pardon? Actually, some disturbance…

Yeah so Bizotic and Apiqo, what sort of EBITDA margins do we see for these two companies, if you could just give me that, that would be really helpful.

See, in Apiqo, I think the EBITDA margin was little bit lower being a chemical or intermediate manufacturing or products of that category. It will not be the same as the Pharma. Uh, but in Bizotic we'll try to keep the almost similar margin as Anlon, so overall our EBITDA margin what we are expecting that would be between 24-25%.

So, Apiqo we are at 24-25% EBITDA.

Uh, Apiqo a little bit low 2-3%, so you can say like 22-23%, but consolidated overall margin would be between 24-25 and we'll not go below that margin.

Okay, okay. That is very helpful, sir. Thank you. I'll get back in the queue.

Thank you. Participants who would like to ask questions may raise their hands and may also post their questions on the Q&A box. The next question is from Mr. Paras Chheda. Paras ji, you can unmute and introduce yourself.

Uh, thank you so much, Parth bhai and Punit ji, for this opportunity and good evening to you. And congratulations, sir, for a strong set of results. Sir, just what I've understood so far is for FY27, 28, the revenue guidance that you have indicated between INR 380-400 crores and about INR 600 to 700 crores for FY27, 28 respectively, with about ballpark console margins of 24-25 percentage EBITDA margin. Is that correct?

Yeah, Paras ji, you can go ahead.

Yeah. So now just, you know, just I was looking at this, sir, cash flow again.

See, in terms of inventories, uh, see once we'll try to achieve the more topline or sales, then we need to keep the inventories. So in part of the Anlon, now we are, we have just acquired the Apiqo in the I guess first week of the January, so that set of inventory whatever will be there and in terms of the Bizotic, so that impacted on our balance sheet, but that will be already sold in the first quarter of this FY27 and that will be definitely you'll get the clarity on inventory part and cash flow part in first quarter result. So, but more or less everything is under control and normally we are keeping the three months inventory and basically that inventory is showing higher because the price of the raw material in some most of the categories more than the double in terms of raw material, solvents and catalysts. Right.

Right. So what are these other financial assets, you know, that has gone up substantially? Are these advances or something?

Yeah, that advance payment we have already made against the Capex what we are trying to do in the Anlon, because whatever the equipments what we are installing, that is that we have to give the order before six to eight months. Some of the new equipment we have already installed in the existing facility. QC we have already expanded according to our new expansion. So that Capex we have done for the equipments and some of the payments we have already made against the new Capex.

Understood, sir. So for against, you know, INR 380-400 Cr potential revenue target for this year, what is the current order book as of now?

See, right now we have the clear visibility in terms of the order book is somewhere around INR 280 to 300 CR for the whole year in consolidation basis. But we are sure that within the year, additional INR 80 to 90 CR business on the basis of the product that we can clear it. So we are expecting on basis of that 380 to 400 CR, but clear order book right now we are having between 280 to 300 CR.

Right, sir. And on the CDMO opportunities, sir, for these three molecules, what stage are these projects currently in? I mean the expected timeline for commercial revenues?

See, one product out of three, that is already supplied for the in the validation stage of around hundred of in multiple of hundred KGs in month of the March. Uh, commercial supply should be expected by third quarter of FY27 and other two molecules' validation is expected by the second quarter of FY27. So I think that commercialization we can expect by last quarter of FY27 or from the first quarter of FY28.

Right, so somewhere around end of this by end of this financial year probably CDMO commercialization

Mostly validation should be completed and at least first one product should be commercialized.

Understood, sir. For this pending Ketoprofen DMF filing in the US and Dexketoprofen filing in Europe, again what timeline should we expect, sir, in terms of incremental revenues?

Dexketoprofen DMF in Europe is already processed. I think now query we are expecting from EDQM and mostly within next two or three months it should be completed.

Right, sir. And sir, just last two questions from my end. One is, you know, our borrowing as of now is fairly limited, so that is good. But so there are two things, sir. I mean when do you expect us to turn positive, you know, cash flow from operations? I guess we discussed this last time around—

Mostly FY end of FY27, it will be positive.

So on an annual basis FY27 will be positive, or you were talking about—

On annual basis FY27 will have the positive cash flow.

See, right now we are not having any plan for the dilution of any equity. But yes, for the expansion of the facility, we are planning to get some in terms of term loan from the bank for the at least INR 65 to 70 CR of the term loan and remaining from internal funds. So that we'll doing with our own fund.

So, to achieve… I mean the 600-700 crore revenue, we don't need….I mean we'll be managed within the internal accruals and debt. We don't need equity, outside equity.

Right now there is no planning, but I think once the capacity will be completed and we'll come with the commercial production, at that time we'll see that whatever the situation and if required, then our first preference is go with the financial institution instead of going further for the dilution or maybe we can go for the rights issue or something instead of private placement.

Understood. And as we speak, sir, what are the receivable days? I mean average?

See, right now the receivable days is somewhere between after invoice making, you have to consider 130 to 140 days. Even in domestic, some of the customer is paying at 150 days too also. But on average you have to consider 130 to 140.

And this is what we'll assume stable for FY27 or is there a, you know, downward?

See, that is not going to be changed because see, the now the normally market trend is that the general payment terms is 90 days, but you can expect your payment between 120-130 days.

Understood, sir. Fair enough.

In pharma, it is very normal. I think even if you'll work with any trader also, then trader will also give you the 90 days payment somewhere between 105 to 110 days. But if you need to do work directly with the corporate, then you have to consider payment terms 120-130 days.

Understood, sir. Fair enough. So basically by the end of the financial year, we'll be cash flow positive.

Yeah, yeah, yeah. So whatever the previous due and receivable was there, that mostly it will be received and we're hoping to get it positive before end of this financial year.

Okay, thank you so much, sir. I think I'm sorted. Thank you.

Thank you. Participants who would like to ask the questions may raise their hands in the reactions tab and also may post their questions in the Q&A box. Next, we have Mr. Ashish Parikh. Ashish ji, you may unmute and introduce yourself.

Am I audible, sir?

Yeah, Ashish bhai, you are audible.

Ha sir, thoda sa mujhe aap pehle toh sir jo yeh jo fourth quarter mein thoda disruptions huye, so thoda sa could you explain a little bit more, humein kaise iska impact hua hai aur kya jo quarter 4 ke disruptions hain, woh thoda quarter 1 jo abhi chal raha hai iska thoda revenue humara badha denge? So first on this, sir, this disruption impact on our business.

Ashish, sorry to interrupt. Can you pardon your question? Because your voice was broken.

Okay, sir. Am I audible now, sir?

Yeah, you are audible now.

Sir, I just want to understand the impact of this crisis on our business. Okay.

Yeah, Ashish bhai, I got your question. See, actually what happened in Q4, in terms of revenue we have done almost at par with the year-on-year basis of FY25, but in terms of EBITDA, now what happened, now we are going in forward to become the professional company, system-driven. Our operating cost is little bit higher. We have acquired two facilities, so some of the operational cost involved for that also. And due to that war situation, the prices of raw material is increased and we were holding the purchase order with the previous prices that we have not increased with the customer. So, it directly impact on the EBITDA and EBITDA margin. But now the situation is that now everybody is understood that

Okay, sir.So we are firmly on track to achieve our target of 380 to 400 crores for FY27.

Yeah, see, in terms of sales there is no problem, see. Business is also not an issue because what I believe is Pharma comes under the essential. The demand is actually increased compared to the before pre-war situation. But the now thing is that how long it will take and what impact it will come every day on the prices, because nowadays prices of most of the common solvents and raw materials with the validity of only one day. If you are not confirmed, then tomorrow will be the next new prices. So, we are trying to maintain the prices with our customer accordingly. But if something uncertain will happen which is beyond everyone's control, then things will be different. Otherwise, now everything is in our control and whatever the EBITDA margin what we are expecting with the new topline of this FY27 between INR 380 to 400 CR, that will remain the same between 30 to 35% of the EBITDA margin.

Okay, sir. Noted, sir, noted. Thirdly, sir, hum log ne Remember Pharma ka bhi acquisition kiya hai.Toh uspe sir humara presentation wagera mein kahin kuch mention nahi tha, toh thoda sir uske baare mein batayein. Would you like to…..

See, because it was acquired in this FY27, that's why it was not mentioned in this presentation, I think.

Okay, sir. Toh sir, how do you see it ramping up and how do we consolidate it with Anlon or iska revenue impact kaise rahega in coming future days?

Ashish bhai

am I audible? Mera—mera kehne ka matlab yeh tha sir ke Remember Pharma we have acquired. Hello? Am I audible? Ashish ji, your voice is not coming clearly.

Yeah, no issues. I'll revert on that.

Thank you, so much and best wishes.

Thank you. Participants who would like to ask questions may raise their hands from the reactions tab and can also post their questions in the Q&A box. Next question is from Mr.

Uh, hi, very good afternoon. Thanks for the opportunity and congratulations on great set of numbers Y-o-Y, though Q-o-Q we noted they are muted from profit front. Uh, Punit bhai, I have following questions for you. Number one, probably you have answered partially, but if you want to, then you can expand and that is around management has maintained a guidance of 25 to 30% EBITDA margins. This is slightly lower than what we had heard earlier in terms of 30-35%. Also, Q4 saw a saw a sharp Y-o-Y decline and that is due to input cost volatility as well as the other expenses. So, are this newer margin in terms of the pressure that we have structural or transient and what specific cost optimization benefits have you realized from backward integration with Apiqo as well as Bizotic? And how do you mitigate the newer raw material headwinds?

Yeah, Bhavesh bhai, I think as previously mentioned that EBITDA margin was reduced just due to the operational cost and the raw material prices in the new situation. But now I think in we are on the verge to able to get the higher prices from our customer and we've able to maintain the same EBITDA what we've confirmed between somewhere around 30%.

Great, great. Thank you, Punit bhai. Second question is we have reported a significant increase in revenue.

Bhavesh bhai, your voice is not clearly, I think.

Okay, okay. Actually, I am using a laptop, but I'll I'll come again. The question is about high interest rate environment with a major greenfield expansion that we have planned. Uh, how—what is your plan for balancing the increased working capital that we'll have as well as the Capex? And Capex you mentioned about internal accrual and the term facility, so that is fine. But will we also require increased working capital as well?

Yeah, true Bhavesh bhai, we need the even working capital if we'll plan to achieve the more than INR 600-700 CR topline. But I think that maybe we can plan in the last quarter of FY27 once we'll completed the commencement of the new expanded facility. But in terms of working capital, as of now we are having the option to get the cash credit from the bank as well, or maybe we can go for some further option to raise the capital via rights issue or other way, but as of now we are not planning for any dilution in terms with the preferential and any other options.

Appreciate that because I think I agree, I mean rather than diluting that way, I think the rights is a much better option, but yes, so appreciate that. The third question is around we have 21 DMF filings and companies shifting our focus towards the regulated markets. Can you share the expected timeline for commercializing this DMF-linked product and how what impact we see for with this shift in terms of asset turnover ratio with existing domestic product basket that we have?

Yeah, see, right now out of 21, I think we have already started five to six product commercial supply to regulated market and some of the new product, I think that will be commercialized by third quarter of FY27. So mostly out of 21, five to seven products will be regularly commercialized within this FY27 for the export. And the other impact what you are asking on asset turnover ratio compared to existing domestic product basket, so as earlier we have also mentioned that we are trying to do the at least somewhere around 60% of the export contribution in this FY27.

Wonderful. Thank you. Next question is, you know, you mentioned about Q1 FY27, how does the remaining financial year looking like in terms of increased input cost and uncertain geopolitical environment? And you have answered it, so I'll probably skip this question. Next question was around the guidance for free cash flow at at the consolidated level and you know, your response on that because we have that Capex also coming up, so that's what I want to understand from you, Punit bhai.

See, for cash flow as I mentioned, that we can assure that by FY27 we'll end up with the positive cash flow with the consolidation and all those activities, considering the Capex what we are newly doing in Rajkot plant, for that as I mentioned that 50% or 60% we are planning to get it the finance from the bank and remaining from our internal funds. So if there is any further question or confusion at your end, then I'll—

No, I think I think now it's clear. Now it's clear. Thank you. And in fact the last question I'll ask differently in terms of I saw in your press release as well as the opening note that we are expanding to specialty chemical as well as fine chemical. So what is required in terms of manufacturing as well as capital, and what is the expected EBITDA and PAT margin for these products and by when we expect material impact or contribution to revenue and PAT from this segment?

For specifically specialty chemical, right?

Yes.

See, that we are having the enough product line with the enough capacity in the Apiqo and mostly we'll if required then we'll do the expansion separate in Apiqo, that is already under discussion with one or two customer who can dedicatedly buy out our total capacity for some of the specialty chemical. But in terms of EBITDA margin, that will be slightly lower than the pharma, but we'll try to keep the consolidated as I mentioned that between 24 to 25%.

Okay, that helps and so basically we are saying another three to six months is by when it will start showing higher contribution. Right?

Yes.

Okay, okay. No, this is very exciting times, challenging as well but we have a lot of confidence. So thank you for everything that you are doing Punit bhai, as well as the entire Anlon employee base and the team. Thanks for the opportunity once again and all the very best to all of us.

Thank you Bhavesh bhai.

Thank you. Participants who would like to ask questions may raise their hands in the reactions tab and may also post their questions in the Q&A box. Next question is from the line of Mr. Gaurav Shukla. Gaurav ji, you may unmute and introduce yourself.

I’m audible, sir?

Yeah, yeah, Gaurav.

Sir, thank you, sir, for giving me opportunity to ask. Sir, first question I want to ask that as you said, sir, that FY27 is INR 400 crore approx and INR FY28 revenue is 800 approx. What is the key driver for Anlon Healthcare to reach that destination? Gaurav, can you pardon?

I think I'm not got your question clearly. Can you repeat it?

Yes, sir. Sir, as you said that we will reach in FY27 at INR 400 Cr approx and FY28 revenue is INR 800 Cr approx. So sir, how we will—how we will reach there, matlab what is the key driver to reach there, sir? How you have planned, sir?

See, we have worked and invested a lot our time, energy, money everything on the preparation of the DMF, approval of the product, establishing the product quality, identified the customer as well. Now the time to get the fruits out of that investment. So whatever the clarity in terms of the our key products, NSAID category, some of the new product what we are already working with some of the innovator and on basis of their projection for our product as a fresh new first vendor or alternate vendor, whatever the quantity we have been informed by the customer, on basis of that we are going further for the organic expansion as well as the new product commercialization. On basis of that the whatever the figure what we are proposing, that is in current year with the new consolidated with expanded facility after acquisition of two facility, we can easily reach up to INR 380 to 400 CR and next year after organic expansion commencement of the new facility, the two new molecules what we have planned for that, out of that we can go up easily at the INR 700 CR of the topline.

Okay, sir. As sir, PPT mein sir you have shown in Apiqo guidance is 30% and this is about 100% guidance INR 400 crore, then I asked this ki how sir you will reach.

Yeah, because in this year we'll have the full consolidation with the capacity utilization of Apiqo and Bizotic, because in last year this FY26, we can get only two and a half month for the Apiqo and hardly 15 days for the Bizotic.

Okay, sir. Sir, one question (Speaks in Hindi) ek cheez puchna tha sir ki split and bonus sir you have done. Yeah. How it helps our company? I am maybe pardon for that, I can't understand.

Yeah, actually we want to increase the liquidity in the market and we want to increase the number of shareholder. Because see what we have identified after four to five months, the number of shareholder is almost saturated and it will not increased like what we are expecting, so liquidity rotation must be stopped. So just to increase the liquidity and increase the number of shareholder, so after split and bonus, it is almost 25,000 which was around 11,000 for last four months. So our target is to increase the liquidity so that mainly we are trying to get the at least 100,000 to 150,000 of the shareholder. So counter will be also live and there is a liquidity for all the stakeholder.

Okay, sir. Thank you, sir, and all the best for future, sir.

Thank you. Participants who would wish to ask questions may press the—may raise their hands in the reaction tab and may also post their questions in the Q&A box. Also, would request participants to stick to two questions as we are running short on time. So next question is from the line of Mr. Rudraksh Raheja. Rudraksh ji, you can unmute and introduce yourself.

Yeah, thank you for the opportunity, sir. Congratulations on a great set of numbers. Sir, my question am I audible, sir?

Yeah, yeah, Rudraksh.

Sir, my question is on again sir working capital which you have already discussed a lot. On receivable side, you said the market norm is around 120 to 150 days. We are still at 200 plus days on receivable side. So any thoughts on that?

No, there is nothing like thoughts, Rudraksh. Actually, see as previously we have also mentioned there was some incident happened due to that some of our receivable was delayed. It is not defaulted as I have mentioned in our previous meeting also to you. And by end of this FY27 with the positive cash flow and receivable days will remain at least 180 days, which is I think mostly API manufacturer is having. If you'll consider or compare with the pharma company who is getting the advance payment for their formulation and that will compare with the API manufacturer, then it will be little bit injustice to API manufacturer. So below 180 days of the receivable, it is practically I feel that it is impossible because there are none of the customer who is going to pay you advance payment for any of your product in API category.

Got it, got it, sir. And sir, on the inventory side, you said there will be a lot of liquidation in the first quarter itself because of new inventories from Bizotic and Apiqo coming in. So, any guidance for Q2 FY27 with respect to inventory number?

Normally, we are keeping the minimum three months of inventory for our rotation and as we are going for the development of the new product, for the commercial validation batches, commercial their process validation, sampling and all those things. So,any

Got it, got it. And this 20 to 25 reduction, this is till the end of the year—

Rudraksh ji, sorry to interrupt, you can join back in the queue.

Sir, this is a follow-up question, nothing new.

Yeah, Rudraksh, so this reduction 20 to 25%, this is expected at the end of next year.

Got it, sir. Got it.

Thank you. Participants who would like to ask questions may raise their hands from the reaction tab and may also post their questions in the Q&A box. Next we have Mr. Nitin Sharma.

Hello? Am I audible?

Yeah, yeah Nitin.

Hi, Punit bhai. Two questions. First of all, are there any more acquisitions are in pipeline?

Yes

And what would the you are actually looking for in terms of capability or is it a client acquisition sort of and plan? If you elaborate on it, it'll be very helpful.

See, right now, see basically what we are doing, you can see the our overall chronology. We have acquired one intermediate and fine chemical manufacturing entity, we have acquired one intermediate API manufacturing entity, we have acquired one formulation plant in this FY27. Now what we are looking is just as we are going for the further organic expansion, so we are under discussion with some of the entities who are having the upper hand or add-on advantage in terms of marketing and distribution of finished dosage and maybe we'll plan to go with some of the regulated market with our FDF as well as some of the

Okay, and any specific number that you have in mind that this much is kind of your budgeting for these acquisitions?

See, that depends, because I think we have enough way to raise the fund in terms of from the company or as well as from the pocket of promoters. So that is not the exact budget for that but depends that whether that acquisition in line with our company's vision what we are planning after five years or ten years, or where we want to bring the company after five years.

Understood, understood. And just one bookkeeping question, what sort of or what kind of tax rate one should assume on a steady state basis, at least for FY27 and FY28?

Nitin ji, can you pardon because there are some

yeah, so—so for bookkeeping reasons, what sort of a tax rate one should assume for FY27 and FY28 on a steady state basis? Tax? Yeah, tax rate. I mean basically for modeling purpose, what tax rate one should assume for FY27?

I think that is I also need to check that means for FY27 and 28 both.

No worries, I'll connect.

Yeah, you can send me in private, you can get the details from Parth.

Perfect, perfect. Thank you.

Thank you. Participants who would wish to ask questions may raise their hands from the reaction tab and may also post their question in the Q&A box. Next question is from the line of Mr. Mohammad Namir. Sir, you may unmute and introduce yourself.

Am I audible now?

Competitive advantages in our business, right? Against our competitor.

Correct. Yes, yes.

Yeah, see basically we are having the diverse portfolio, specifically in the painkiller non-steroidal anti-inflammatory drugs category in which there are hardly two or three players for the Ketoprofen and Dexketoprofen in India and mostly globally five to six player, two in China, one in Korea. But our advantage with us is we have the always process upper hand in terms of specific chemistry like methylation and Friedel-Crafts where we have already cracked the chemistry and we have take out the cost of the manufacturing at certain level

Uh, my the question was you earlier mentioned about 30 to 35% EBITDA margins. But I just checked Q&A tab, there you are saying 25% EBITDA margin is sustainable. Am I missing something?

Yeah, see, EBITDA margin 25% is sustainable. Right now whatever the EBITDA margin we are facing or having, that is not stable in last Q4. But generally as I've earlier also mentioned what we are believing that whenever we are working in domestic customer, at that time our EBITDA margin was little bit lower when we are working in the regulatory or export market, there we are having the better EBITDA margin. So when you'll get the average EBITDA margin, that will be somewhere between 25% somewhere around 25 to 30%. So on the conservative side, I'm just confirming you or mentioning that our EBITDA margin with the consolidation it will remain around 25%.

Great, that that helps. Thank you so much.

Thank you. Participants who would like to ask questions may raise their hand from the reactions tab and may also post their question in the Q&A box. Next question is from the line of Mr. Ram Prakash Agarwal. Sir, you may unmute and introduce yourself.

Hello sir, in November 2025 con call, I think you said that you lost one of the distributor and some INR 20-30 crores is pending from them. Are you able to recover that amount, sir?

Yeah, we have already recovered the almost INR 11 CR from there and I think within next one quarter we'll able to get the mostly total whatever the receivable from them.

Sir, also in this year we have made INR 170 crore revenue and trade receivables are almost INR100 crores. What is the reason for that much high amount? Almost 60% of the sales are in receivables only.

Yeah, see, you can check the receivable days is almost around 130 to 140 days. When you are considering the manufacturing process and dispatch time, a logistic time, so it is the generally 180 days receivable cycle is there. But in our case, due to the previous receivable, which is old more than 180 days, it is showing you the higher. Otherwise you have to consider that 50% 180 days considering 180 days of the receivable, the 50% portion will be in the receivable. Because last quarter sale you will add in that receivable and the payment of

Okay, sir. And what about cash flows, sir? Cash flows also reduced very, I mean from -23 we went to almost -47. So in which year we can expect—

- 47 it is after consolidation. But I think as I have mentioned that by end of FY27, cash flow I'm very much sure that it will be positive. Because all those remedies to make it positive, it is already done and going well, so we are 100% sure by end of this FY27 it will be positive.

Okay, sir. Sir, also I joined late, what is the guidance for FY27, sir?

FY27, see right now whatever the visibility we are having with our existing customers' order and the confirmation, we are able—mostly hoping to close at between 380 to 400 CR.

Okay, okay, sir. Thank you so much.

Thank you. Participants who would like to ask the questions may press—may raise their hands in the reaction tab and may also post their questions from the Q&A box. Next we have a follow-up question from Miss Disha. Miss Disha, if you can unmute and introduce yourself.

Hello?

Yeah, Disha.

Yes, thank you, sir, so much for this opportunity again. So sir, at a INR 380 CR sort of topline and with 25% EBITDA, even if I increase the depreciation and interest, can we do a PAT of around INR 60 CR? Is that something that we are looking at as a PAT, sir, for this year?

Yeah, we are right now actually on the conservative side, we are expecting the INR 45 CR of the PAT.

Okay, sir, but then if I take 25% EBITDA and even if I increase the depreciation and interest run rate because of the consolidation, still our PAT would be much higher than what so 45.

Because we'll get the depreciation part on higher side after acquisition of the both these thing, because we have to go for the some of the new Capex as well.

Okay, so so for on a conservative basis it can be 45, but on a on a realistic basis, can we at least cross 50-55 CR?

Yeah, yeah, it should be.

Okay, that is it from my side. Thank you.

Okay. Now we have the next question from Purva Shah. Purva ji, you may unmute and introduce yourself.

Hello, can you hear me?

Yeah, yeah, Purva ji.

HaPunit Sir, my first question is regarding the recently announced standalone capex of approximately ₹130 crore. Given the current balance sheet position, it appears that the company may require external funding to execute this investment. Could you elaborate on the proposed funding mix? Do you intend to finance the capex through debt, equity infusion, internal accruals, or a combination of these sources?

See, we don't want to go for any equity dilution. Right now we'll go with the bank loan, term loan for the around INR 65 to 70 CR. 65 to 70 CR, which is almost 50-60% of what we have planned for the Capex, and whatever the remaining funds required for the Capex, that we believe that from the profit and the other that working capital whatever is the fund that we are expecting within this next four to six month, out of that we'll complete the new facility. Once after commencement of that facility, if requirement of the working capital, then we'll go with the way of the right or something or maybe other in terms of cash credit from the banks.

Sir, in addition to that, the company has guided towards achieving a topline of around ₹400 crore. To support that level of growth, there will also be a requirement for additional working capital. Further, if the company is considering another acquisition, that would require funding as well. Considering these multiple capital requirements, including capex, working capital, and potential acquisitions, would it be fair to assume that at some stage the company may need to consider equity dilution as part of its overall funding strategy?

Na, see whatever the acquisition we are planning?

Yes sir, I can hear you.

Yeah, for whatever the new acquisition in plan, that is not I think now immediate or within next three months or six months. So whenever it is required, I think at that time in terms after seeing whatever the possibility for the fund raising for require means for acquisition in terms of valuation and all those things, we can take a call but right now I think dilution is not the option to raise the fund. We have some other option, maybe as a promoter we can infuse the unsecured loan.

Okay, understood sir. My next question was on the front wherein the credit rating reports have published a remark that the issuer is not cooperating. Could you throw some light on the same?

See, there are two credit report is published, one is from the CARE with the credit issuer is not cooperating. So that CARE is means very historical and it is already mentioned in our DRHP that from 2018 or 19 it was going like that. CARE was doing the literally blackmailing to get the money and doing all that activity and finally we have not given them a single penny for withdrawing that rating, that's why they have published. But apart from

That's great to hear, sir, that's great to hear and we are looking forward to the report. One last question from my end, sir. We were in talks that we would eventually acquire the entire minority stake of Bizotic and Apiqo as well through share swap. What is the progress there?

Minority share, see we have acquired totally the remaining share apart from the Anlon, that is with the promoter and their relatives only. Correct.

When will be complete that entire process?

See I think it is that discussion is already going on. Mostly maybe within our next AGM, we'll take this point with the shareholder and we'll try to convert or by the share swapping we'll make the 100% subsidiary of Anlon.

Okay, lovely. One last question if I can squeeze in, sir. You mentioned that we would be cash flow positive, cash operating positive this year FY27. Could you could you give some more insights on how would we actually do that technically from financials or anything from the business operation, sir?

See basically that cash flow negative is mostly impacted by our previous or the delayed payment from some of our distributor and customer. After all these activity from last quarter, we have strict on our payment terms and we have make the policy not more than 120 days if customer is not paying, we have stop the supply to customer until we'll recover the our funds. So, after that that payment recovery is now getting little bit smooth and I think within this one year, most of the customer will also be understood that if we'll not make the payment then supply will not be started again. So, we believe that even we'll able to recover the previous delayed payment also as well as new payment against the fresh supply will also come somewhere between 90 to 120 days.

But sir, sorry, sorry Punit, please.

So, by this way we are expecting our cash flow will be the positive by end of this FY27.

Okay, but sir, are you pretty confident that this would not affect your revenue figures, because now we are not extending the credit that…..

I think Purva bhai, let me explain. See basically what happened, this all habit for making the payment delayed is by the Indian traders and distributor. So, they will give you the whatever credit you want. Even you won't believe one of our customers who is already listed pharma company, as they are knowing that we are falling under the MSME category, so they have to make the payment before 45 days any which ways. Still, they are not making the payment before 120 days. They are the very well-known corporate in the Indian pharma. So we have stopped the supply to them because we are the part of their drug master file for one

That is understood from the institutional customers, sir, but from a from a dealer point of view, do you are you pretty confident on your your demand would not get affected or something like that?

Yeah, Purva, I think after our new policy, business is not impacted but maybe instead of 120-130 days, at least right now we are getting the payment somewhere around 100 or 105 days. So, it will be further reduced and we'll get it up to 90 days as per the terms.

Thank you. As there are no more questions, I would request Mr. Punit ji to give his closing remarks.

Yeah, thank you everyone for joining in the earning call of Q4 FY26 and this FY26 financial result of the Anlon Healthcare Limited. And we would like to have your support as before and we want you to be in the journey of the Anlon with us for the which there are so many things coming on the way and we'll try to achieve whatever we are committing. Thank you everyone once again.

Thank you. This ends the earnings call for Anlon Healthcare Limited for Q4 and FY26. You may now disconnect.