IPCA Laboratories Ltd

Ladies and ge Q2 FY '26 ho mode, and th concludes. Sh pressing star, recorded. I now hand ov

Thanks, Nitin, and DAM Capital for organizing this call. Today and answer given may include some forward-looking stateme ness expectations. This must be viewed in conjunction al business faces. Our actual financial performance may dif d perceived. You may use your own judgment on the information mulation business for Q2 FY '26 has delivered a growth of a ness of the quarter has impacted due to GST rate rationalizati ade during the month of September 2025. And we have seen t er month, we had a very good business recovering on domestic m September 2025, rank continued to remain around 16 as per IQV mber 2024, market share of Ipca has improved from 2.3% t 025. Both on acute and chronic segment, we have outpaced the I quarter. Overall market growth in this period has been around 7 around 11.6%. e, market has grown by around 6.2%. Ipca's growth was around has grown by around 10.3% and Ipca growth tracked by IPI and acute business both has delivered better growth. share of chronic business in overall Ipca business has moved up ound 35% now. For market, it is around 40%. So we are c r business share from chronic business now. rmulation business for the quarter is around INR493 crores a financial year. That has declined by around -- almost around 9 it is around INR941 crores as against INR937 crores in H1 '25 gs Conference Call ll be in listen-only r the presentation nal an operator by onference is being ir. a Labs Q2 FY '26 l today, we have ; and Mr. Harish will open the floor 's hearing call and ents based on our with risks that ffer from what is n given during the around 8% for the ons, rate structure that subsequent to market. VIA. Compared to to 2.8% in MAT IPM as per IQVIA 7.8% and Ipca has 8.2%. On chronic is around 14.2%. p from 34% in last continuously now as against INR541 9% for the quarter. 5, almost flat. But

we are expe formulations i

On API fron INR319 crore America. Ove 15%.

For Q2 FY '2 FY '25. High financial year

On margin fro '26 as against EBITDA mar consolidated E

And looking a that from our better by almo

Having given Thank you. W of Saion Muk I just wanted can throw som secondary ma Overall, let's kind of growt we have 11%

As far as card the first quar because we h because of tha

But in second And for cons antimalarials by around 8% growth was ar

Overall for th and for H1, it

o 9% on generic around 28% from Europe and Latin ow around 14% to from 2.7% for Q2 he for the current 25.46% for Q2 FY 57%. Consolidated r Q2 FY '25. That ound 2.58%. ancial year, we see are expected to be there. ons. on is from the line ify and also if you are growing in the ound 10% to 11% h. And for H1 '26, at in first half -- in ovascular business ness was impacted wn by around 11%. business. Overall, ter, it has declined arter, the business 8% kind of growth this quarter, it has

grown by alm in this quarter in spite of -- t low for us. So, sir, what now? Let's say, ove Okay. And th can just take realized, part is your guidan Let's say, as reductions we Their energy c

As far as the product to th dossiers are f and after this And then we' going on.

As far as qual major source. regulatory aut once that app kind of delay

But thereafter supplying to t is currently ha

As far as Uni restructuring, facilities whic that facility. T

So overall, th expenditure. S and all approv Baddi facility approvals and

Nov Page 4 of 15 most around 17% and for first half, it has grown by around 18% r has grown by around 11%, and urology business was also aro there is an impact in the month of September because that grow was the impact? And what is your guidance for the full year rall, our guidance was around 10% to 11%. And broadly, we wi he other question I would like to understand from you is on Un us through what we should expect? You talked about synerg will be. So if you can talk about the time lines and the quantum nce on EBITDA margin for Unichem this year or next year, plea far as Unichem is concerned, let's say, we were talking abo e need to work to do as far as their shipping, logistics and that cost reductions was already done. In last financial year itself, th e business issues are concerned, number one was that we sh he various markets. So that work has started. And I think a filed in European market and other markets, that filing has star filing, probably approval may take around 1 year to 1.5 year 'll start extending their product businesses to the other market lifying whatever API they are buying from outside and there the . That qualification applications are already say data are gener thorities once, let's say, that's clear. So far, no sourcing has star provals come, so that there is some -- maybe around six month may happen. r, probably from next financial year, some of our major APIs them after the regulatory approvals are there. So that's the over appening. ichem margins are concerned, first quarter was largely impacted which has happened in Europe because one of their facili ch was there in Europe, there we had handshake with people, an That business is transferred to their Baddi. hey were incurring around EUR3.5 million to EUR4 million So that expenditure will be cut now. And that manufacturing a vals has received. And I think the normal business has already y, which has all those kind of approvals and all customers a d everything is in place.

%. Derma business ound 11%. This is wth was very, very r for India growth ill be in that line. nichem. So if you gies before, part is m there? And what ase? out whatever cost was already done. at was done. hould extend their around 12 product rted. So that work s. That's the time. ts. So that work is e Ipca is one of the rated and fed with rted from Ipca. So hs to nine months s, we should start all journey, which d because of some ity manufacturing nd we were closing n every year, the and all the sources started from their and all regulatory

So Ireland fac were there. A

On European has moved a difference of Second quarte

They had a g done well. A which is aroun

So more impr and there thei product to the

So, I think ov the second qu what we are e And then, sir, approvals and The business would say it m Yes. So I jus R&D has incr around INR20 consol level c say that this crores? No, that expe terms of, let's repeat bioequ Zealand, Cana and all are re colors of the t

So a lot of th product portfo to remain. Wh So there will

Nov Page 5 of 15 cility is being -- getting closed down. And so these are the maj And I think that cost has settled their first quarter account.

Union kind of penalties and all that payments were made. And adversely, so that provision was also there in the first qua around INR10 crores to INR12 crores, which has also impacte er was normal. good business growth in U.S. around 12%, and their European And therefore, I think over INR60 crores kind of EBITDA m nd 11% or so of the second quarter. rovements will start coming in once, let's say, dossier filing, wh ir approvals start coming in from the various markets and we sta e other markets. So that advantage will still going to take some m verall, their business margins are expected to remain around w uarter, but larger improvement may take place only after the v expecting. , we could get to what, 15%, 20% kind of levels? What would d benefits? also has to mature because business starts, so it will take tim may -- for that margins to go up, it may be around 1.5 to 2 years stion is from the line of Aanchal from Lotus Wealth. st wanted some clarity around the synergies from Unichem. S reased in this quarter. But say, going ahead, if, for example, the 00 crores, while the R&D from Unichem is around INR100 c comes to around INR300 crores, correct? So going ahead in the expense from INR300 crores can come to around INR150 c enditure reduction will not happen because Unichem has to do say, extending their dossier to the various markets. And a lot o uivalent study need to be done for filing in other markets lik ada, all those markets, Europe filing and all -- and so those bio equired, then somewhere trade dress needs to be matched be tablet may be different and other size shapes are different. hose kind of work or incremental work need to be done in o olio and getting those kind of approvals. So, in fact, those expe hat we have eliminated is that both the teams will not work on a be no duplication. But as far as work is concerned, in fact, tha

jor changes which I think since euro arter of exchange ed the first quarter. business has also margins they have, hich has happened art extending their more time. what is in line with various approvals, d be after all these me. So, let's say, I . So we see that the R&D from Ipca is crores. This at the next year, can we crores or INR200 o a lot of work in of places, there are ke Australia, New oequivalent studies ecause somewhere order to align the nditures are going a common product. at cost has already

increased and done in order Okay, sir. An ANDA, can Ip Let's say, Uni ANDA, they happen that fu Unichem will If Ipca has development development. Okay, sir. Un the 505(b)(2) We don't have Sir, just on th half, what is Because first First half, bas was a good am otherwise, the done well. And overall, our business growth on gen Got it. And si pretty soft? First quarter, there could be full financial fluctuations h that kind of gr Got it, sir. An of guiding for business whic Nov Page 6 of 15 d will keep on remain at that level because a lot of incremental to get better certification of their product range from other mark nd also around the ANDA synergies. So say, if Unichem already pca use the same molecule ANDA and gain any synergy around ichem is marketing all Ipca products. So Unichem, if it is pro will continue to produce. Ipca will not disturb that part. Onl uture development, it will all depend on whether Unichem -- if U l develop that product.

API, Ipca will develop the product. There will not be a at both the places. But both the team will continue to work So both the teams will be working on their respective range, ye nderstood. And just one last thing. I just wanted to understand in Ipca as well as for Unichem? e any pipeline of that nature. stion is from the line of Tushar from Motilal Oswal Financial Se he generics exports, while you have guided for 8% to 9% gro it that will drive this? Do we having certain product appro half has been pretty flat for generics? sically, it was basically on account of one product because in mount of higher inventories were there, and there was no prod e European business has -- if I look from the ranges point of vie the kind of orders we have and kind of whatever interaction w expectations suggest that we should be able to have around 8 nerics in H2 '26, yes. imilarly, on the branded export side as well, I mean, the first ha we had a good growth. I think it's only second quarter and q e variation. That business also will have around 9% to 10% kind year basis. So -- and quarter-to-quarter in this kind of busin happens on ROW market and all. But overall, for the year, I ha rowth will not be achieved. nd just lastly, on the API side, while this quarter was pretty stron r a little lower growth rate for the full year. So does it mean th ch is not going to sort of recur in the subsequent quarters? l work needs to be kets. y has an approved d here? oducing, they have ly thing what will Unichem has API, common product k on new product es. d your pipeline for ervices. wth in the second ovals or traction? the market, there duction of that. So, ew and all that has with customer and 8% to 9% kind of alf, again has been quarter-to-quarter, d of growth on the ness, always some ave no doubt that, ng, but we are sort hat we had certain

Let's say, som certain APIs h was there for

And that busi once they con business over Got it. And ju More or less, current busin INR15 crores six products a

So once thos current year o there in the m business. And Got it. So, thi Overall, H1, w Sir, my questi you need any No, Unichem quarter also, t don't think -- after, I think t payment of ta Okay. And th Jogeshwari sa Sorry, we are Transaction h Third quarter. Okay. Okay. compared to very high in U

Nov Page 7 of 15 me of our APIs, which we were selling, but on which our vo has gone to European customers and there, I think there was a their businesses and all, which was also at a higher margins was iness will continue, but there may not be third quarter buying nsume, and then again, they come up. So looking at all those k all guidance we have given is around 14% to 15% kind of grow ust lastly, if I may, progress on the U.S. business from Ipca side? business is spreading very well. I think last quarter also, we nesses which are happening is translating into almost around s. And I think we have shipped around 6 products there and alm are under manufacturing. se product goes, probably the business may start on the four or maybe some business maturing may take a little longer time. market for such a long time. It is taking some time to cover d overall, that's why we are more conservative on that part. s 2Q, we made INR14 crores, INR15 crores is what you highlig we have made about INR55 crores. stion is from the line of Rajakumar from RK Invest. ion is on the cash situation in Unichem. After this payment of th cash infusion in Unichem? m doesn't require cash. In fact, they have surplus right now they have generated cash from business, and they will continu and we already sold their Jogeshwari land. And I think overal this overall -- this payment also will leave some surplus with U ax also, there will be surplus. at money is already realized Jogeshwari sale? ales, yes, money is realized, yes. That is realized in the third qua in second quarter, right? happened in the month of October. So it will get reflected in the t . That's what I said.

Got it. Got it. Sir, and also why there is a huge inventory situ -- if the business between Ipca and Unichem is similar, the in Unichem as compared to Ipca?

olumes were low, bulk procurement s there. g to an extent. So ind of things, API wth overall. ? have said that the d INR14 crores to most around five to rth quarter of the It's -- we were not up those kind of ghted? his penalty, would also. And current ue to do that. So I ll proceeds of that Unichem. And after arter. third quarter. uation in Unichem nventory levels are

Unichem bus their cycle is inventories an their own API So there are inventory. Yo around INR15 Okay. Sir, La some deterior Lyka Labs as all that, a lot o because that w can't take batc And I think th crores, INR7 otherwise, the care business, So the last sto Yes. Sir, my quest three of which slightly this y sharper than t I think overal our turnover markets is als also increasin that cost will Got it, sir. An up by only m deferment of throw some li It's basically overheads are Nov Page 8 of 15 iness is more or less U.S. business, almost around 80% is U such that they need to keep around three months inventory at th nd all that kind of thing. And since there are a lot of their pro I basket.

API inventories and all. We are working also on reduction ou will notice that in this quarter, we have reduced overall inv 50 crores in the system. astly, can you comment on your other listed subsidiary, Lyka L ration in that performance? such, let's say, they do a lot of P2P business because of this GS of customers have said because you don't produce now in the mo will be -- once the price is changed, then only they wanted pro ches and hold. So I think that business got impacted. hey had some kind of some rejections and that impact was ther crores on their overall numbers. So that has impacted the b eir critical care business, which they are building up and also t , what they are building up, that journey is going on as planned, ory is impacting Lyka, right? stion is from the line of Kunal from Axis Capital. tion is on R&D. Sir, you have around seven biosimilar projec h are expected to go to clinical trials next year. So as it is your year. So should we assume that even next year, the R&D incr this? ll, the R&D spend in the current financial year is going to rem because a lot of filing and bioequivalence studies and our so getting -- that pipeline is also becoming very strong. So those ng. And also your biosimilar expenditures are there. Once the c be extra. So this 4% may go to around 4.5% or 4.75% in next fi nd sir, secondly, if I were to look at your opex, which includes mid-single digits and the fact that R&D has gone up quite some costs? Or there's some cost optimization you have don ight? all other costs remain in control. So there are -- as far as t e concerned, let's say, your fuel cost is down. My power cost ha U.S. business. And he U.S. and transit ducts is also from of those kind of ventory by almost Labs, even there is T rationalizations, onth of September oduction, and they re of around INR5 business, yes. But heir animal health yes. cts in the pipeline, R&D has gone up rease will be even main around 4% of filing in various e expenditures are clinical trials start, nancial year. R&D, that's gone a bit. Is it some ne, if you can just the manufacturing as gone up by just

1% because w coming.

And overall o by and large, Marketing cos Got it, sir. A couple of yea steady-state g Let's say, this almost around financial year and -- so som

And also one equity on, let' leadership the that division come, that pro

So we have a around 400 to to be there in Got it, sir. Th this quarter, t which I assum softer. Despit been managed Let's say, in th moved up by to 4% kind of in material co

But since our other product overall margin also at a highe

So that marg improvement improvement

Nov Page 9 of 15 we have a lot of renewal power, power project installation, s other costs, by and large, except the testing cost, which has mov remains same. So there are not much of escalation in the ma st has moved up by almost around 6% to 7% in this quarter. nd is it -- are you kind of have stopped expanding the sales f ars expanding. So that was also kind of hitting your P&L. N growth number. Is that what we should assume going forward too s year also, we have expanded the field force. And overall, if y d 7,000 now medical reps. So two more cardiac divisions was ad r. And in time to come, we will add one more division on cosm me kind of those expenditures were there is likely to be there. division was added about one division named Flexicare was ad 's say, on pain management because we are very strong with or ere. But we have only pain products. So we have launched a ran right now, last year, it has started. It is still incurring the los oductivity will also build up. almost around 7,000 people and now additions are not going to o 500 people annually can be added. But beyond that number ad next two, three years' time. hat is helpful. And just one more, if you don't mind. On the m the growth was driven by AI and the subsidiaries -- the top li me are lower gross margin businesses, while your Indian bra te that, the gross margin is very robust. So I just want to underst d to have like 69%, 70% gross margin? he -- if you look at the current quarter numbers, the overall, let' around 7%. But at the same time, the material cost is down by f reduction there in material cost. So what we are finding that th ost as such, procurement cost. r product mix is improving, let's say, my chronic product mix t mix is improving, where we have higher margins. So that i n. And also on the API side, certain businesses have started hap er margin level. in has also improved, and that has resulted in almost around in -- in spite of lower growth in the quarter, we have almo in the stand-alone EBITDA margin from 22.89% to almost arou

o that savings are ved up, other costs, anufacturing costs. force because last Now it's more of a o? you look, we have dded in the current metic dermatology dded to extend our rthos and we have nge of products. So ses. So in time to o be much, maybe ddition is not going margin front. So, in ine growth that is, anded was slightly tand how you have 's say, top line has almost around 3% here is no increase is improving, my is resulting in the ppening, which are d EBITDA margin ost around 2.57% und 25.46%.

And in conso By and large, will continue. Right. So you So margins ar some busines low. So depen to last financi My questions about the othe has been the erosion, what three years? Actually, duri products. Tha competition. A that convert in

So going forw their U.S. bus they will be a That is correc certain marke And what was It was that th market share. It is not exact companies, ot they may reco Understood. B quantify singl

Nov Page 10 of 15 olidated margin for the quarter has also improved to around 21. , it's largely driven by Ipca margins here. And that trend will co . u are saying there's more headroom to 25.2% stand-alone EBITD re improving, I would say that. And this quarter is a peak qua ses are domestic businesses comes down and fourth quarter do nding on the mix, but I would say that margin will continue to i ial year. stion is from the line of Dharmil Shah from Dalmus Capital. s are more on Unichem with regards to the generic business. So er Indian generic companies about the price erosion in the U.S trend for us for our molecules for last two to three years wit t is the current situation? And how do you expect to pan out i ing our Q1 con call, we had said Unichem has lost market sha at is also because of the lower prices for that product and At the same time, they have also gained market share in a few o nto business will take some time. ward, we are confident two, three new products will also get ad siness should grow on a stand-alone basis about 8% to 10%. I also marketing Ipca products.

So 8% to 10% growth is considering all the factors that you had ct, yes. This year, the growth has been slightly lower because, a et share in two of their major products. That is the reason, nothin s the reason for losing the market share? Is it purely based on pr he competition increased and people quoted lower prices and th So is it more like a tendering business for us where each year the tly a tendering business. When there is a concentration of mark ther companies also come into business, and it happens. Whatev over in the next cycle. So it's a routine thing in generic business.

But do you expect the price erosion to continue maybe -- I le digit, lower single digit...

.68% from 19.1%. ontinue. The trend DA margin? arter. Next quarter, omestic business is mprove compared o we keep hearing S. market. So what th regards to price in the next two to are in certain of its d increase in the other products, but dded each year and In addition to that, considered. as I said, they lost ng else. rice? hey took a certain e tenders. ket share in a few ver they have lost, . mean, if you can

It all depend Otherwise, th can guess tha molecule. Currently, we definitely ther translate into in current yea of the market, That we also dossier regist registered, we today, Europe on. But becau processes take Understood. Y marketing th contribution t Almost 70% y Yes. Yes. So expect -- I me later? Then it will a gain market s continuously can't expect so Understood. A purely based o Yes, the gross Okay. It has n No, no, no, n share, it was a has also impa Nov Page 11 of 15 ds product to product. If competition increases, price reduc here could be a chance price may also increase also. So it is a at correctly. It all depends on competition. How many new play e are not seeing any kind of shortages in U.S. market. So pric re. So onetime buying opportunities are a little lower currentl more margins, but that business opportunity, we are not seeing ar.

So, 8% to 10% growth for the U.S. business. But how do you e , I mean, the other geographies you mentioned that you would b explained, we have started filing dossiers of Unichem in rest o tration process takes anywhere between 12 to 18 months. Onc e will be taking their product in so many other markets where th e, Australia, New Zealand and Canada. and also ROW market. use there is a regulatory involvement, there is a two to three year e.

Yes, I understand that it's a very long process to get the ap he new products. But just to understand more on that, cu to the Unichem business is around 60%, 65% of... you can say. o assuming, I mean, these new products and newer geograph ean, U.S. contribution to come down to what levels maybe next also come down gradually. Once you get registration, you star share. So it is a slow and gradual process. But once that proce grow quarter after quarter. That only we can say. But it is a gra omething to happen drastically in shorter period of time.

And gross margins for last three quarters has been around 54% on the market share loss you mentioned in the key products? Or s margin has come down mainly because of that loss of market s nothing to do with the contract manufacturing business, right? nothing to do with that. And unfortunately, the products where also huge volume. So because of the reduction in volume, their o acted to some extent. tion will happen. cycle. So nobody yers come into that cing pressures are y. So that used to g to that an extent expect for the rest be marketing? of the market. The ce the dossiers are hey are not present So that process is rs period, all these pprovals and start urrently, the U.S. hies, what do you three to five years rt marketing, then ess starts, you will adual process. You %, 55%. So is this r is it something... share. e they lost market overhead recovery

Understood. A and both in fo Should you h line of Surya The first que recent past, o have seen tha many of the la

And we have Europe being supported. So No, Mr. Jain h the sales in al better margin everything is

Many produc shall also par focused mark market. Plus will also incre Okay. Okay. mentioned. No, no, nothin we are in the m Okay. Regard margin in term similar to the two -- obviou the growth ge

And secondly aspects, what GLP opportu growth for Un So we are ver on that. So we and all of whi

Nov Page 12 of 15 And right now, I mean, given that we have added so much cap ormulation... ave any follow-up questions please join the queue. The next qu Narayan Patra from PhillipCapital. stion is that the growth for us, which has been kind of relativ obviously, because of the kind of underperformance in the expo at Europe as a market, it has emerged as one of the best perfo arger players also. e seen some price appreciation there that has been helping pe g one of the largest market for us, the growth has not bee o what could be impacting our Europe growth for us, sir? has already explained, it is because of one single product. Exclu ll other products are good. And the products where sales were ns. So margin did not got impacted. Only that particular produc fine. Plus we are doing so many other things to expand our Euro cts are registered, getting registration also in Germany, where g rticipate in tender. We have already incorporated a subsidiary ket, and we are hopeful our growth should be good going ahea we are also started filing Unichem dossiers in the European m ease.

So we have so far not been seeing the cross-selling benefit. ng so far. So far, nothing. Okay. Only two dossiers are register market started talking to customers. ds to the domestic market, sir, see, we have always been ou ms of growth compared to the IPM. Now we are kind of starte e market growth momentum, slightly better though. Going ahe usly, two trends are emerging for the domestic market. One is so enerally. That is one. y, a bigger growth trigger like GLP that is upcoming. So cons is our expectation? And what is our preparedness and thought unity also? And beyond this, how should one think about the nichem -- sorry, Ipca? ry confident our growth will be higher than the market growth. e are also addressing the therapies where earlier growth was not ich we have now started seeing the result. So we are now beatin

pacities in Munich uestion is from the vely muted in the ort side. While we orming market for eople. But despite en in any manner uding that product, good were having ct, ex that product, opean footprint. going forward, we y. So Europe is a d in the European market. So basket That is what you red for which now utpacing with big ed tracking almost ead, see, there are ome moderation in sidering these two process about the e domestic overall There is no doubt t good like cardiac ng market as far as

cardiac therap market growth Okay. About you think that See as far as R&D, we did biotech R&D that kind of ra it comes, we' going on. And as far as other manufac now, but we a Okay. Just la whether it is core focus of R&D has cur same product number. So cu And earlier, w in the U.S. ma and their pipe So -- and we Zealand, Can moving up, development. The next follo Sir, just follow to 6 which ar perspective, le terms of filing the U.S. busin We are not a By and large, pipeline. Only Nov Page 13 of 15 py is also concerned. So we are very confident our growth will h.

GLP, anything that you can talk about, sir? What is your prepar t it will be there in the market?

GLP is concerned, we didn't have R&D of that kind for GLP dn't have. So now we have already in process of putting the for E. coli-based product. But it's going to take time. So we w ace for -- in the current phase of the product. But next phase of p ll be there. We are already synthesizing the clones and other market opportunities are concerned, we are also looking to buy cturers and that. So that opportunity we are evaluating. Nothing are -- that process is going on. ast one bit from my side, sir. In fact, can you talk about you for U.S. market or whichever emerging market opportunities? the R&D currently and which way that we are thinking at this m rrent capacity of filing almost around 30 to 35 products. So it w t, there are different markets, and this is -- each filing is take urrent capacity is around that kind of things. we were not, let's say, utilizing that to the fullest extent because arket. So U.S. filing has also started. I think the two filings has eline is there of around five, six products are in pipeline. have also expedited now a lot of developments for Europe an ada market. So that's also happening. And you will notice that not only in the biotech, but also on the bioequivalence So we are building a very strong pipeline for future growth. ow-up question is from the line of Saion Mukherjee from Nomur wing up on this filing question. So you made two filings alread are under development. If you can take us through from a sli et's say, over the next five years, how should we think about th g, the characteristics of those files, the products? And how shou ness sort of scaling up over the next five years? company which will be doing too much of filing based on so what is there in our pipeline, either current pipeline or expected y those products are being developed and filed for the U.S. mark be better than the redness? When do . So E. coli-based facility for R&D, will not be there in product, whenever things are already y the product from g is finalized right ur R&D pipeline, ? See, what is the moment? will include of the en as number one we were not there already happened nd Australia, New t R&D cost is also and formulation ra Securities. dy and you have 5 ightly longer-term he U.S. business in uld we think about mebody else API. d to be there in the ket.

So our -- com but it all depe a long-term p your ability t business philo So, I ask, how Yes, yes. Right. And so about the kind Current capac would happen going to be a cost, then we are producing Sir, the first q the tech transf It's one of the also bigger a substance as w

So we have m expert on and development plant from U.

So his assista companies in very experien

So -- and -- o to be the go simultaneousl both the facili

And on that, almost around broad underst Okay. And no

Nov Page 14 of 15 mpared to other companies, our filings are, by and large, likely to ends on our API capacity because ultimately, unless you have A player because you all depend on the price given by other part to compete in the market and all. So that's the business ph osophy will remain for longer term. w many -- so these -- so you would be developing new APIs, righ o these APIs would be like -- is there a number? I mean, how d of product... city is around five to six APIs we can develop. So it's only th n on formulation side. Some API, we can outsource and also a significant number. If API is constituting a very small part o may outsource or maybe it's a general type of API with so man g, then those kind of API we may not take up. So that's the overa stion is from the line of Rajakumar from RK Invest. question is, can you comment on the monetization opportunity fer deal that you did with biosimilars Puerto Rico? e old product and still having very relevance and U.S. business and the party wanted to take kind of, let's say, our technolo well as the drug product, both. milestone-based payment and royalty-based system. At the same d is filing -- it's a regulatory consultant to so many compan and all. So collaborating with him will also help us in your qu S. FDA and other markets and all. ance would be available to us because he's already consulting a India, China and Europe also on the biosimilar kind of develo nced person. on that particular product, he will also, let's say, his focus more overnment business and other. We will also do some priva ly, we will also have -- we will also be participating in clinical ities will have an approval. That's the kind of working we are do we will also get the market share in U.S. So from whatever d 25% is the market share, which will come to us on that partic tanding we have with the party. o monetization opportunity in this financial year with respect to

o remain low only, API, you cannot be ies and that limits ilosophy and that ht, for this? w should, we think hose development o file, but it's not of overall product ny products people all thinking. y with reference to s of government is ogy for your drug time, that party is nies on biosimilar ualification of that a large number of opment and all. So and more is likely ate business. And trial with him and oing. business he does, cular. So that's the the deal?

No, it's not ou of that person almost all co utilize that a monitoring. W Okay. Got it, last quarter, y with a better understanding Yes, because giving that gu Their busines in third and fo So that is al improving. U compared to t quarter. And o Thank you. L end of the que over to the ma Madam, we c conclude. Tha Thank you. O Thank you for Nov Page 15 of 15 ur focus to do the technology transfer, but we want U.S. approva n for the -- because he has very -- practically each and every c ompanies, is a consultant. Very, very rich experience. So -- a also. It's not our focus that we keep on transferring those We will be utilizing those technologies for building up our pipeli sir. Sir, and second thing is on the clarification on the margin you said your margin will be down by 25 basis points. And no Q2 performance, you're upping your margin by 100 basis poin g? the product mix is improving, and that's giving the better m uideline. And around that time, first quarter result of Unichem w s is also improving. So hit which was there in first quarter is no ourth quarter. lso taken into consideration while giving the margin. So Ip Unichem's performance is also improving as far as EBITD the first quarter. And overall Ipca margins, we have seen the bet overall, looking into all that, we are increasing the overall margi Ladies and gentlemen, that was the last question for today. We h estion-and-answer session. On behalf -- now I would like to ha anagement for the closing comments. can conclude the con call. I don't think there is any more que ank you, everyone, for participating in this con call. Thank you.

On behalf of Ipca Laboratories and DAM Capital, that conclude r joining us, and you may now disconnect your lines. als and experience company in India, and we wanted to technologies and ine. n guidance. So the ow you are telling nts. Is that correct margin. So we are was not that good. t likely to be there pca's margins are DA is concerned tter margins in this in guideline. have reached to the and the conference estions, so we will es this conference.