Gland Pharma (NSE:GLAND) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Gland Pharma Limited Q1 FY 'twenty seven Earnings Conference Call. 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. Please note that this conference is being recorded. I now hand the conference over to Mr. Srinivas P. Dange, Investor Relations at Gland Pharma Limited. Thank you, and over to you, sir. Thank you, Darvin. Good evening, everyone. We welcome you to Gland Pharma Earnings Conference Call for Q1 of FY 'twenty seven. I'm Srinivas Dange from the Investor Relations team at Gland Pharma.

0:50 Today, we have Mr. Srinivas Sadhu, Executive Chairman and Mr. Ravi Mitra, Chief Financial Officer from India office. We will begin the call with the business and operational highlights from Mr. Sadhu, followed by the group financial overview by Mr. Ravi. Before we proceed, I would like to remind everyone that some of the statements made today will be forward looking and are based on management's current estimates. These statements should be considered in light of the risks associated with our business. This call is being recorded. The playback and script will be available on our website shortly. With that, I hand over the call to Mr. Salu for his opening remarks. Thank you, Srinivas.

1:37 Good evening, everyone, and a warm welcome to all of you to Gland Pharma's earnings call for the first quarter of fiscal year twenty twenty seven ended 06/30/2026. I will begin with the business and strategic overview, and Ravi will subsequently walk you through the financial performance for the quarter. We have started FY 2027 with a strong momentum, delivering healthy year on year growth in revenues, EBITDA and profit after tax. Our performance reflects the resilience of our business model and the successful execution of our strategic priorities. Growth during the quarter was driven by continued strength in our CDMO and B2B businesses, contribution from recent product launches, increasing volumes from existing products, improved capacity utilization and sustained operational efficiency initiatives across the organization.

2:28 For the first quarter of FY twenty twenty seven, we reported revenues of INR 18,003 million, representing a growth of 20% year on year. Adjusted EBITDA for this quarter stood at INR 5,102 million with margins of 28%, while profit after tax was INR 3,170 million, reflecting a healthy growth of 47% year on year with PAT margin of 18%. The quarter demonstrates our ability to consistently execute on multiple growth risks while maintaining strong profitability. We continue to benefit from a balanced business mix and differentiated manufacturing capabilities. Continued operating leverage, improved capacity utilization and disciplined cost management have further supported our profitability during the quarter.

3:19 Let me now provide an overview of our performance across business segments. Our CDMO business continued to deliver strong growth during the quarter and remains one of the key pillars of our long term strategy. Revenue from the CDMO segment stood at INR 8,915 million, which grew by 20% year on year and contributed 50% of total revenues during the quarter. Growth was driven by recent product launches and progression of the existing commercial programs. Our customer engagement remains strong, and we continue to attract robust global pharmaceutical companies seeking reliable sterile manufacturing of partners. Our pipeline of development and commercial opportunities remain healthy and provides good visibility for future growth. The continued expansion of our CDMO partner and product portfolio validates our investments in capabilities, infrastructure and customer relationships over the last several years.

4:12 Our B2B business revenue stood at Rs. 9,088 million, contributing 50% of total revenues and recorded healthy growth of 19% year on year. The growth was supported by increased demand from existing customers, new contract wins and higher volumes across several key products. Recent product launches, together with strong execution and supply reliability, have enabled us to deepen customer relationships and expand market share across select products and markets. Having discussed our performance of business segments, let me now provide an overview of our key geographic markets. The United States continues to be our largest market and delivered another strong quarter. Revenues for the quarter stood at INR 9,810 million, reflecting a growth of 32 year on year.

4:58 Growth in The U. S. Was driven by recent product launches from the CDMO segment and volume expansion in existing products. MDI and dabobanserin has witnessed an encouraging launch and continues to ramp up as expected. During the quarter, we launched four products in The U. S. In Europe and other regulated markets, revenues for the quarter stood at INR 4,488 million, reflecting a growth of 11% year on year. Growth was supported by increasing customer engagement, contribution from recent launches and improving momentum across both our commercial and CDMO activities. We continue to strengthen our presence in these markets through differentiated products, expanded customer relationships and improved commercial execution. In the recent past, we have licensed four products of various partners across several countries and several active discussions are underway in Europe.

5:47 In the rest of the world markets, revenues for the quarter stood at INR 3,039 million, broadly in line with the corresponding period last year. While demand across several key markets remain healthy, revenues in the quarter were impacted by supply disruptions in Saudi Arabia, one of our important markets. The award of NUPCO tenders has been delayed, we expect the results to be announced shortly. Looking ahead, we continue to see attractive opportunities to expand our presence across key international markets, supported by our broad product portfolio and strong manufacturing capabilities. In India, revenues for the quarter stood at INR $666,000,000. At an overall level growth across geographies reflects increasing diversification of our revenue base, deeper customer relationships and the success of our strategy to build a balanced presence across regulated and emerging markets.

6:38 Our recent new launches are doing well. These new products are expected to remain important growth drivers through FY twenty twenty seven and beyond. In addition to these launches, we are seeing healthy demand across several existing products. Growth has been supported by volume expansion from existing customers and improved competitiveness enabled through our cost optimization initiatives. Increased capacity utilization across manufacturing facilities is further contributing to operating leverage and supporting profitability. Our CDMO business continues to show strong traction. During the quarter, we secured multiple new CDMO contracts, including a new GLP-one collaboration and expanded our pipeline across complex injectables, peptides and bag delivery platforms. We continue to see strong customer interest and a group of opportunities that provides confidence in the long term growth prospects of this business.

7:27 Yesterday, we announced the execution of a strategic manufacturing and supply agreement with one of the leading global pharmaceutical companies, where the technology transfer manufacturing supply of a portfolio of sterile injectables to the global markets. The portfolio comprises a diversified basket of oncology and non oncology products in vials, lyos, ampoule and prefilled syringe presentations, covering both complex and conventional injectable formulations. The agreement is expected to provide strong long term business visibility with revenue generation anticipated from calendar twenty twenty nine. The current agreement covers 55 SKUs to be manufactured across the three sites, with scope of adding more products soon. Once all products are commercialized, revenue potential is expected to be approximately USD 90,000,000 to 100,000,000.

8:14 Technology transfer activities are planned for completion within two years, with revenues expected to come in from calendar year 2029. We have also entered a strategic collaboration with New Zealand Laboratories for the manufacture of sterile APIs for microparticle depot products. Long acting depot formulations continue to represent an attractive and growing pharmaceutical segment globally, and this partnership strengthens our capabilities in complex injectable technologies while complementing our broader strategy of building differentiated and high value product platforms. As demand continues to grow across our businesses, capacity creation remains a key strategic priority. Building on our recently announced CapEx program, we're actively progressing multiple brownfield and greenfield expansion initiatives across our manufacturing network.

9:00 These investments are intended to support growth from existing products, upcoming launches and increased CDMO demand and newer specialty technology platforms. We continue to evaluate additional capacity requirements to ensure that we remain well positioned to capture future growth opportunities while maintaining operational flexibility and best in class service levels. Another important strategic development during the quarter is our in licensing agreement with a China based development company for the development, manufacturing, commercialization of a niche liposomal product for The U. S. And European markets. This partnership strengthens our entry into differentiated drug delivery systems and expands our product portfolio. This collaboration has a potential to extend beyond a single product, given the partner's extensive pipeline for complex injectable products.

9:50 Given the development time lines involved, we expect commercial opportunities and meaningful revenue contribution to start MYFY30, creating another important long term growth driver for the company. Our R and D efforts remain focused on building a differentiated pipeline. During Q1 FY 'twenty seven, we spent INR $772,000,000 on R and D, representing around 4% of consolidated revenue. In The U. S, we filed three NDAs, received seven approvals and launched four products. Our pipeline is increasingly focused on complex injectables and differentiated platforms, which will drive long term value. Let me now touch upon the continued progress being made across our European manufacturing operations. Senexis revenues stood at EUR 48,000,000 with an EBITDA of EUR 2,000,000.

10:38 Despite the disruption of activities caused by the summer heat wave in Europe, the Fontanese facility delivered a good performance, benefiting from the production ramp up of our new ampoule line and higher operational efficiency. During the summer shutdown, as part of our ongoing modernization efforts, we will discontinue one of the older ampere lines and replace it with a new capacity high capacity line. This new line is expected to enter production in early twenty twenty seven and will add approximately 30,000,000 amperes of annual capacity for enhancing efficiency, competitiveness and growth potential for the site. At the Haraway facility, activity levels continue to increase steadily. Revenue growth is being supported by higher volumes from two products successfully launched during 2025, which continue to gain momentum.

11:24 We are seeing encouraging customer demand trends, improving utilization levels and steadily strengthening operating profile. Combined with ongoing cost optimization measures, we remain optimistic about the site's performance trajectory. In Benelux, we secured a prefinancing manufacturing program for injectable orphan drug for European customer. This further strengthens the site's order book and reflects the continued momentum in business development and customer acquisition activities. We continue to see encouraging traction in new business generation across our European operations. Across the organization, we remain focused on initiatives aimed at improving productivity, procurement efficiency, manufacturing yields, automation and energy optimization. These programs continue to deliver tangible benefits and together with high utilization levels, support margin expansion and long term competitiveness.

12:15 To summarize, we have delivered a strong start to FY twenty twenty seven with healthy growth across revenues and profitability. We continue to strengthen our commercial portfolio, expand our manufacturing capabilities, deepen customer relationships and invest in the future growth platforms. We remain highly confident in our CDMO strategy, execution capabilities and long term growth trajectory. Thank you for your continued trust and support. I will now hand over the call to Ravi for the financial review. Over to you, Ravi. Thank you, Mr. Sadhu. Good evening, everyone, and thank you for joining us today as we review our financial performance for the first quarter of financial year twenty twenty seven.

13:07 I am pleased to share that we have delivered a strong start to the year with healthy revenue growth, robust profitability and strong cash generation. Our performance during the quarter was driven by continued momentum across our CDMO and B2B businesses. Contribution from recent product launches, increasing volumes from existing products and the benefits of operating leverage and ongoing cost optimization initiatives. As the Executive Chairman highlighted earlier, we continue to see encouraging traction across our business segments, geographies and product portfolio, positioning us well for sustained growth in the coming quarters. Before I discuss the quarterly performance in detail, I would like to mention that as integration benefits between Gland Pharma and Senexi continue to increase, Senexi is now fully integrated into our broader CDMO business.

14:08 Accordingly, its contribution is increasingly reflected in our consolidated performance. Let me begin with the financial performance for the quarter. For Q1 FY 'twenty seven, our consolidated revenues stood at INR 18,003 million, reflecting a growth of 20% year on year. Growth during the quarter was driven by continuous contributions from recently launched products, expansion in CDMO revenue and continued volume growth in existing products. From a business segment perspective, both our CDMO and B2B businesses delivered healthy growth during the quarter. The contribution from CDMO continues to increase and remains an important driver of our long term growth and profitability profile.

14:56 Moving to margins. Overall gross margin for the quarter stood at 65, reflecting the benefits of a favorable product mix, increasing contribution from CDMO projects, improved operational efficiencies and procurement initiatives. Margin improvement was also supported by yield improvement, alternate sourcing and manufacturing optimization. Aligned with our strategy of building a differentiated portfolio of complex injectable products and advanced drug delivery platforms, our R and D investments continue to remain healthy. R and D expenditure for the quarter stood at INR $772,000,000, representing approximately 4% of consolidated revenue, an increase from INR $723,000,000 in the previous quarter and INR $664,000,000 in Q1 FY 'twenty six, demonstrating a 16% year on year increase.

15:51 Our investments continue to focus on complex injectable, peptides, depot products, drug delivery technologies and liposomal products. We remain committed to strengthening our development pipeline and expanding our technology capabilities to support long term growth. Coming to profitability. Reported EBITDA for the quarter stood at INR 4,930 million with EBITDA margin at 27%, higher as compared to 24% in corresponding quarter of previous year. This is after excluding ForEx losses of INR 36,000,000 in this quarter. Adjusted for noncash ESOP expense of INR 172,000,000. Adjusted EBITDA stood at INR 5,102 million, reflecting an adjusted EBITDA margin of 28%, up from 25% in the corresponding quarter of the previous year.

16:43 The year on year improvement in profitability was driven by a combination of higher CDMO revenue, favorable contribution margin mix, operating leverage, productivity improvements and cost optimization initiatives, Continued utilization improvement across our manufacturing operations and the growing contribution from value added products also supported margin expansion during the quarter. Other income, comprising primarily interest income, stood at INR $612,000,000 in Q1 FY 'twenty six. During the quarter, there was a ForEx loss of INR 36,000,000, which is included in other expense as compared to ForEx gain of INR $5.00 8,000,000 in Q4 FY 'twenty six and INR 39,000,000 in Q1 FY 'twenty six included in other income.

17:34 Profit after tax for the quarter stood at INR 3,170 million, representing a sharp growth of 47% year on year with PAT margins of 18%. However, as compared to Q4 FY 'twenty six, the decline in PAT is largely attributable to ForEx loss in this quarter vis a vis ForEx gain in the previous quarter. The effective tax rate for the quarter stood at approximately 27%. Our balance sheet continues to remain strong and provide significant flexibility to invest in future growth opportunities. As of 06/30/2026, total cash and cash equivalents at the group level stood at INR 35,466 million. External debt remained at a minimal level, and our overall financial position continues to be strong and well capitalized.

18:25 With healthy cash in hand, we are a net cash surplus company with a net cash position of INR 32,939 million. Cash flow from operations during the quarter remained healthy at INR 3,183 million, reflecting strong operating performance and disciplined working capital management. Our focus on inventory optimization, receivables management and supply chain efficiency continues to support cash generation while ensuring uninterrupted customer service levels. Capital expenditure during the quarter amounted to INR $1,132,000,000, primarily towards capacity expansion projects, capability enhancement initiatives, infrastructure additions and investment supporting future growth opportunities across our CDMO and fillfinish platforms.

19:18 As discussed earlier, we have commenced execution of our recently announced INR 2,000 crore capital expenditure program. Ongoing projects of vial, ophthalmic, DFS lines and liposome products, among others, at our India sites remain on track. In addition, capacity expansion projects to cater to the anticipated demand arising from increasing CDMO collaboration have been approved and are being prioritized for execution. These investments are intended to support increasing demand across existing portfolio, upcoming product launches, expanding CDMO programs, fill finish opportunities and future product and technology platforms. At Senexi, the growth CapEx for the addition of new block with vial and at BLA and high speed and tool line at Quantennai are also on track to finish by the end of next year.

20:12 Overall, we are pleased with the strong path to start to FY 'twenty seven. Quarter reflects the benefits of strategic investments we have made over the last several years in manufacturing infrastructure, capabilities, R and D and customer relationships. With multiple strategic levers in place and optimal cash deployment priorities, we believe we are well positioned to deliver sustainable growth while maintaining a strong profitability profile. With that, I would now request the moderator to open the line for questions. Thank you. Thank you very much. We will now begin the question and answer session. Our Our first question comes from the line of Sayon Mukherjee with Nomura.

21:26 Sir, I just wondered if you can throw some light on this strategic manufacturing agreement, which was announced. Is this with a big pharma innovator kind of company? Or are these generic products? If you can throw some light? And the manufacturing would be largely out of India and whether you talked about 90,000,100 million dollars of peak revenue potential. So how should we think about once the commercialization starts in 2029, how much time how would be the revenues ramp up to those levels of 90,000,100 million dollars please? So this is a specialty pharma global company.

22:11 So their revenues are mix of generics as well as complex and specialty pharma. So probably 30%, 40% of the revenue comes from specialty business. So the portfolio what getting transferred to, these are all from Indian sites, the manufacturing happening at Indian sites. And it's a mix of all these products, including oncology and nononcology across several spread across different formats and different products. It will also extend into the development pipeline in terms of specialty products what they have. So estimate what we gave is the preliminary view of the products, what is getting transferred in next two years. But probably there's a potential to add more products in the future.

22:59 Now the tech transfer activities will start from September of this year, and the first year of that will be transferred in twenty four months. Every quarter, we'll be filing certain. So the 60% of the products are for The U. S. Market, about 50%, I would say. 30, 35% to European market and the rest of the world are about 50, 20%. Senexi plays a little part in this as well. They wanted a end to end solution for the products because it has the global supply. So some of the products which go to Europe, the Senexy will warehouse certain products and probably packages... Package for you and also do a final QP release for for the European market. That's the role Senexy will play, but basically, the agreement is in GLAND and manufacturing will happen at GLAND manufacturing sites.

23:50 To be fair, without Senexy, this wouldn't have happened in a way. So that also strengthens our strategic initiative when we acquired Senexy because otherwise, we couldn't have provided the full test solution for the partners. And the revenues will ramp up from '29 because the filings will start happening from next year. And as soon as the products get approved, especially The U. S. Ones is an easier one because it's a CV 30 format. So then it started getting launched in CY twenty nine. So it will... The ramp up will happen from '29 to '30. So hopefully, by CY thirty, we should see this entire portfolio getting launched.

24:38 That's very clear. You. And so just wanted to understand, like, could we expect or are you like looking for such type of contracts, which are like such strategic? Can we expect more of such contracts? Or this is like one of a kind opportunity? So this is to be honest, this is what we're looking at because we're trying to give a solution to big pharma, where a lot of very large companies are procuring products from over 80 to 100 different sites because over a period of time, they'll in license products or getting contract manufacturing. So now we are reaching out saying that we'll give end to end solutions for them for different markets. It also helps them in a way because currently, the sites are in Europe, it's five to six times more expensive than India. So it also helps to get market share in out of the markets, increase the market margins in the products what we're making. And also with the new situation of branded products to be manufactured in U. S, they want to move the branded parts to U. S, then their own sites or the CDMO sites what they're doing, then the operational leverage is lost.

25:46 So big companies are looking at this kind of options. And with the Right. Track record we have on quality and the breadth of platforms we provide, it... It's it's helping us. Yeah. Great. Sir, just one more question before I join back. On CapEx, you know, you had announced 2,000 crore CapEx. One is the timeline around that. And now with these, you know, new initiatives, then you also mentioned in your prepared remarks that new CapEx has also been approved by the Board. So can you share a revised CapEx estimate now? So, Pav, I would say for one immediate CapEx is going to about crores. We're investing in an isolated line in oncology plant, where several of these oncology products are getting manufactured.

26:36 Likely, we could get aligned quicker. So that will be installed in January of this year. So this this is specific, I would say, a priority for us in terms of... For this project, what we just announced. And then other CapEx on the new land collaboration, what we said on the APA front, Ravi? Yes. So that for that, we will be building a block. That also has been starting the project now. And to answer your question, Chance, so this year, we are going to spend about $5.50 crores CapEx. And this will scale up as I mean we start building the brownfield, which we already announced earlier. Right now, the Suite 10 in Pashmirallam, we are adding a new wireline, BFS and ophthalmic line.

27:25 So along with the recently CDMO contract for which we need to spend CapEx of INR 165 crores mentioned just now, this is going to be our priority. And we considering the demand and volume growth we are looking at, we need to look at brownfield or greenfield quickly. And that's what we are currently working on. Our next question comes from the line of Vivek Gautam with GS Investments. Congratulations on good numbers, sir. Sir, I just wanted to understand how sustainable is the turnaround of the 10xP and what were the factors behind it?

28:13 Then was it the one subsidiary which was dragging our performance down and now things have improved a lot? The second question is about the... What is the opportunity size for us, expected growth rate and our differentiating factor USP, which can help us in maintaining the growth ahead. Thank you. So from the growth front, you did mention last time that we're looking at 15% CAGR in next four, five years. With the new contract signing, if you look at it from current top line, then this will cover almost like 12% of our current revenue. So if you look three years down the line, probably it's still about 9% to 10%. So we're reevaluating the CAGR with few of other contracts we're discussing now with other partners.

29:03 Probably we'll next quarter have more clarity on the growth for next four years. But as of now, with this new contract in place, we are looking at 20% around 20% growth next four years. While the current year, we're still with the constant currency, we're still estimating we're not estimating, but probably 15% is clearly achievable. But we're also looking at a couple of lines like the bag line and ophthalmic products. We have tight capacity constraints. BAGNA, we're expecting approval in the third quarter. If it happens as planned, then probably we can cross 15%.

29:48 But it's a new land to be approved by FDA. So if it's approved by August, September, then probably we'll exceed the 15% growth for this year. But otherwise, we'll the constant currency will stick to 15% and then see where it goes for the current year. But I think next four years, we're looking at 20 odd percent, but we'll get a clear clarity next quarter. We'll give clear clarity once we we also see how the other initiatives, what you have taken up in the recent past will pan out. Probably, we'll get a clear picture by August, September... September, October. Okay, sir. Thank you. Yes. Thank you. Our next question comes from the line of Neha M with Bank of America. Please go ahead.

30:34 Yes. Thanks for taking my questions. So the 50% CDMO number that you have indicated for this quarter, if I were to look at FY 'twenty eight probably exit, I understand that big contract is coming in 'twenty nine. But in the next two years, how much of a business do you think would come from CDMO? How does it change our margin profile? Is it fair to assume that CDMO has much superior margins versus our existing stand alone margins? So the idea is to balance between CDM or B2B business. The target is to reach as a console basis in a nearby near term, we're looking at 30% near term as a console basis. Synergy growth, the target for Synergy is the profitability on the top line. So we need to work we are working towards that. So today, we are at 28% console EBITDA percent.

31:31 So near term, we're working towards 30%, and we'll see mid term to long term. Ultimately, obviously, look like a profitable company. We want to be a profitable company, hitting those 35% EBITDA. Hopefully, next three, four years, we might reach there once we get all these CDMO contracts on track. But for near term, we're looking at... Because we're also growing other other businesses as well in the same range of CDMO, and it's a large base. So we still feel once we hit CY 'twenty and probably there could be a skewed around the CDMO business will be larger than the repeatable business. But for probably next two years, it will be around fifty-fifty kind of a business. Understood. And on the selective business, given that we have the impact of heat wave in France, does that mean that second quarter would end up being better than the usual seasonal decline that we see because of the shutdown, it won't be as sharp because some of the shipments would have moved to second quarter. Is that a fair assumption?

32:36 Sorry, can repeat now? I think, sir, you mentioned that Selective was impacted because of the extreme summer in the first quarter. I understand that second quarter usually tends to be seasonally weak. But would the seasonality be lower because some of the shipments would have moved into the second quarter? Would that be a fair assumption? It really I would say it will be better than last year, for sure. Some releases couldn't happen last quarter because of the heat wave. The impact was more on the quality release. That will help a bit to next quarter over the last year, yes. And currently, we're still maintaining CENEXCE guidance of near $200,000,000 and high single digit margin for FY 'twenty seven?

33:23 That's correct, yes. All right. Thank you so much, sir. Thank you. Our next question comes from the line of Ashish with LEO Capital. Please go ahead. Hi, sir. I'm audible. Hello? Yes. You're audible a bit. Yes. Perfect. Yes. Yes. Go ahead. Yes. So on GLP-one, could you give us an update on the scale up of the business? What is the current status of the commercialization and capacity ramp up? So from capacity, the new line is on track. We are taking some exhibit batches from some of the customers whom we have signed up in last few quarters. We signed a new contract this quarter again, and the transfer activities will happen in next quarter or two.

34:13 The new contract order signed is both for Semi and etazepatide for U. S. And EU markets. Now we are also evaluating when we said that this year, we're still trying to maintain the 50% constant currency growth. But there are also some positives could be upside. One of our customers has filed in Canada, it could be an opportunity to launch in the last quarter. If that happens, then there could be an upside. But otherwise, as of now, it's more of executive batches taking for different customers and then fighting and then waiting for them to come. And how should we see think of think about the revenue potential or contribution from GLP-one over the next three years?

34:59 Very limited. We have not assumed too much of that because the mail volume will come from The U. S. When it goes in FY 'thirty, 'thirty one. So we're not concerned much in the next few years other than the tech transfer fees what we get for transferring. So if anything happens in Canada or any other markets for the customers, because either it's a CDMA business, we don't have a clear visibility on the front end approval status for these products. So it's very difficult to assume the numbers for them. So that's why we're keeping close to adjust how that pans out, but that will be an upside if it pans out well. Thank you, sir. Thank you and all the best. Thank you. Our next question comes from the line of Jintan Chet with Gerrick Capital. Please go ahead.

35:50 Am I audible? Yes. Yes. Thank you. Thank you for the opportunity and congrats for the good set of numbers as well as continued customer win and project win for at our CDMO side. Just one clarification on the opening remarks SANEXY revenue, you mentioned 68,000,000 and EUR 2,000,000 EBITDA. 48,000,000. Revenue is 48,000,000 revenue and EUR 2,000,000 EBITDA. Okay. It's flat on a Y o Y business, EBITDA number was okay. EBITDA, you mentioned that because of the exchange rate that also impacted some bit of profitability this quarter?

36:39 No, the profitability in the same trend like what we said is 4% EBITDA. So by the end of the year, we want to get into double digit EBITDA. Okay. Because last year, I think we were at 2% EBITDA, which has improved 50%. Got it. And in terms of the 15 products, products, which are in pipeline, the ANDAs, co development products, what could be the opportunity for this? I think seven are five and eight are ANDAs. If you can enter any time lines around those launches, if you can provide some insight?

37:39 Can we come back to exactly how much is the market No worries. No worries. And the year, what kind of launch pipeline we are looking at? If you can any significant ones which can be a safe sector for us in terms of growth? So I was asking about the new launch pipeline for the current day. We launched four molecules this quarter. If you can provide some insight on which are the key molecules to look out for, for the current day, which can contribute to our growth? As you mentioned, there is upside as well.

38:29 So the products what we launched, we have launched MBI multivitamin. We launched DALBA. We also launched the Surgamatex. And the MBI, we have CGT exclusivity. So we don't see competition coming in soon. It's a very difficult product to make. DARBA, while there is a competition, but still we have enough contracts on place to continue for next few years. And expected Glandshin, anything to call out for which one should focus on? We can come back to you later. Yes. Sure. Yes. Our next question is from the line of Karan Bora with Goldman Sachs.

39:24 Thank you for taking my question. My first question is with respect to the CDN business. So just wanted to get a sense with respect to do we have in the current base any products which we are supplying to say supplying which have patent protection? And what would that number look like, say, three or five years out? We cannot reveal those numbers because some of these belong to customers. There are few products which are under Fire five Beauty, which is also patents. But if you're talking about innovative products, no, we don't have any innovative products right now.

40:09 Okay. And anything in the pipeline, just qualitatively? It's under discussion. So it's not yet signed. Okay. Got it. Got it. And is it fair to assume that some of them could also be on the bio side where we were investing in the bio CDMO front? Or that is mainly this is mainly on the small molecule side, what discussions we are doing? It will be on the peptide side, if that answers the question. Okay. Got it. And Got my second question is with respect to the base business growth. So I think we've changed some disclosures. So just wanted to get a sense on what is the ex NXT growth in The U. S. And ROW markets?

40:56 So the base business has grown by 24%. So similar for US and ROW markets? Give me a second. U. S. Has grown by 32%. U. S. 32% in ROLU? And what could also be the constant currency number in that, within that? The constant currency, I it can be more ForEx gain around 5%. Out of the base business, 24%, 5% can be because of the ForEx gain. It. Around 20%, nineteen ninety.

41:55 Our next question comes from the line of Sayon Mukherjeev with Nomura. Sir, just like I've also announced the other two contracts. One is with Newland for, I think, API and then there's a contract on China for a liposomal product. In terms of revenue potential, how should we think about these? And what are the time lines for the revenue from these two contracts? I think China, you mentioned 2030. Right? Yeah. So that's more like for the licensing product where where they have already developed this product and is approved for China market using EU RLD.

42:41 It's a $3,000,000,000 product, estimated $3,000,000,000 in next three years. Currently, it's 1,600,000,000 globally, and US about $6,700,000,000. And so we got rights for US and EU. And the technology will transfer, so we will investing in a compounding suite specifically needed for this. And the technology will transfer here, and then the BE study will happen, and then we'll file in US. So there's a patent production for this product, so we'll we'll try to be there by the patent expiry date. On the... Then the GLAND, the API, we actually had this supply agreement with them before as well in our... In the current suite. But this is an extension of this. We are building a new suite for them. We cannot really disclose the revenue, but it's more a strategic thing where we're trying to give end to end solutions for even other clients who are looking at finished product as well.

43:41 Because we have a a micro particle depot technology also with us, and very few companies offer sterilization of APIs as well. So current capacity is fully occupied, and currently we're only manufacturing two APIs. There are another set of five to six products which will fall into this category, which we need this expansion. So this will ease out our current capacity constraint because there are also requirements from other customers who wants this service from us. And also, we also have this pipeline of products which we need to develop, so we need that capacity as well. So it's more a strategic thing. It's a combination of what revenue we get from that collaboration as well as what we can get moving forward for our own... From our own products and the new contracts, what we'll sign from the current capacity.

44:31 Okay, sir. Understood. So my other question was, you know, on your complex ANDA pipeline, I think you have, like, 20, 25 such products. And, you know, generally, what we see is that a few of them tend to be pretty large. In that sense, those large or the largest opportunities that you have, is that an FY 'twenty nine kind of an opportunity or something which will be after FY 'twenty nine, you think? It's post 'twenty nine. Some of the big products, especially on the microsphere products, there are a couple of big ones, which is post '29. So complete... Currently, there are different stages, some at the the clinical stage and some at the exhibit stage, I would say. So there are different stages, but some under patent post '29.

45:26 But most of the big big things are post '29. Yes. Okay. And, sir, also, I understand that, you know, you have in your U. S. Filings or what you are developing or what you have filed, there's a bunch of products which are like Para one, Para two, Para three, like which are probably already generic. Is that a large opportunity? And how should we sort of think about GLAND sort of trying to develop such, which seem to be old kind of old products? So some products are developed many years ago, they're one. Second is we also see a lot of these products where companies are exiting. There is still value in it as an injectable company.

46:12 And several products where there was no revenues many years ago actually are doing well now. So as an injectable company, we need to have that that portfolio. And portfolio, what we have developed fifteen years back, probably those are also there in that list what you're seeing, where there was no India fees and, you know, the development was far cheaper than what we do today. So that's why that portfolio got developed over the many years. Right. Right. And, Phil, now your US based revenue would be $9,500,000,000, right, current run rate. And how... I mean, so how should that sort of play out with all these launches over the next three, four years, you think? It's a bit more than $100,000,000 It's about 110,000,000 $120,000,000 Yes, yes, correct.

47:05 Sorry, sir. Can you repeat? Sorry, tell me. Go ahead. No, sir. You said more than $100,000,000 currently. Yes, sir. Correct. Correct. And how should that play out like over the next three years as you launch these products? Do you think it will materially go up? Or it would sort of have a more modest growth like most generic companies? See, we are getting into newer modalities also in this space. If you look at the entire market, it's growing probably three, 4%. But then you have to see which are the products where we don't have and what is our base and what products we actually never launched. If we launch those products, what will be the growth. Right? I mean, that's how we have to look at this. So we still feel there's a growth of that business. It's not that it's completely low. But then the other thing is with the efficiencies what we have in operations, we're able to compete more and grow our own business. So one is how the market is growing. Second is how we are growing.

48:09 So if you look at the market growth versus our growth in The US, it's always far higher than the market growth because of the new launches what we do and also the current products, what is secured by others, we're able to garner those, that market share to us because of our better cost structure. Okay, sir. Great, sir. Thank you. Thank you. Our next question comes from the line of Malik Waria with three sixty one. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. I hope I'm audible. So just wanted to understand if there's any any progress, any update from our doctor Eddy's partnership on the biologics.

48:54 And we were also negotiating with one more partner to set up additional capabilities. So is there any update there? Currently, it's a normal business. I would say it's generating around crores, INR60 crores a year, and probably it will slowly ramp up a bit in next year or two. But as such, there's not a big contracts which we have signed up in the recent past. Okay. Okay. And so going ahead, from our complex portfolio, I understand that the contribution is lower currently, but going ahead, would you be able to give us some direction how much as a percentage of our portfolio or in terms of revenue would the complex products become?

49:52 Because most of the complex products is post FY '29, and our base business is also very large now compared to that. Right? So while it takes probably it will take a larger chunk of The US business, but I can't give you exact number because the timing of each product is different, but it will take quite a share of the total business once it gets there. But when you're saying the growth, what we're saying over 20, 25%... 20% when you're growing next four years, at the end of this four years, probably these products will get launched, probably the next growth driver will be these products as well. Our next question is from the line of Rahul Jivani with IIFL.

50:58 So can you call out the constant currency growth for the quarter on a consolidated basis? So we reported 20% growth in INR terms. So what was the constant currency growth at the company consolidated? It's 15% down. 15%? So Ravi, that calculation isn't clear to me because if I look at your revenue, the revenue would have been flat y o y. And let's say, the USD INR on a y o y basis has depreciated by almost close to 10%.

51:43 So this number looks a bit higher to me in terms of constant currency growth. So it's a basis of when the products are dispatched. It's not a uniformly across every. So average wise, you cannot take. So we have to look at the rate on the particular data supply and then see the FX impact. Okay. And this 15% constant currency growth, which we guide, then if we are using, let's say, the date of shipment of the contract, then it becomes very difficult for you to project the constant currency growth. Now wouldn't that be the case?

52:30 No. For projection, we take constant currency only. For FX movement, we cannot predict. So all our projection or guidance what we are giving is a basis of constant currency. Okay. Sure, sir. And sir, in the past, when for our base business, when we had the two sets of businesses, which was IP led and then the tech transfer business, our understanding was that the tech transfer business used to be lower margin for us as compared to the the IP owned business. Now for this new CDMO contract which you have won while this business is tech transfer, would the margins on this tech transfer CDMO business be higher than, let's say, what we would have done on an IP owned business?

53:24 So the IP owned business, actually, we are sharing our profit also with the front end partner. The tech transfer, see, in the CDM, there two kinds. One is the b to b tech transfer when you say it's coming from a development lab or the... Another company, and then we are taking exhibits and closing down. In in the current CDMO, there are two types of business. One is this, which is smaller portion. Other is the commercialized products coming out from US and Europe, which are more expensive places to manufacture. So there, we have a we have a leverage where we can have a better margin profile and also the type of products what we're going to make for these companies. Okay. Sure, sir. That's it from me. Thank you. Yeah.

54:11 Thank you. Our next question comes from the line of Alankar Garude with KIE. Please go ahead. Hi. Thank you for the opportunity. Sir, if we go back a few years, CDMO was relatively much smaller for the company. Can you highlight the top three, four factors that have given strong growth in this segment over the past few years and are also driving the healthy outlook going ahead? So one is, of course, the portfolio what we have, we're kind of running out of the portfolio in the large one. That's one. Second, the opportunity out there. While everybody talks about the pressure on generic pricing, at the same time, there's an opportunity for players like us because there are companies or leading pharma companies whose manufacturing base is in expensive countries.

54:59 That opens up a door for us where we have better operation leverage and better use of quality, and then at scale, we can do. So that opens up an opportunity for them where the minds are going down at the end market, so they need to compete. So they need to take those products to a place where they can manufacture cheap. I think that's where it opened up. That's when we thought. And we also seen interacting with a lot of these customers of the years. They have, like, three, 400 people just managing these relationships across 60, 70 different sites and different companies. So now we we kind of approach them and saying that we'll give a full proof solution. You can get three, three or four different sites under one company with of platforms under one roof. That's how this got evolved because we looked at opportunity where probably everybody is saying that there's no there's no money in generics, but we're saying, okay. We are... Our strength is in manufacturing and quality. Why can't we leverage that to offer these services so that they'll be more competitive?

56:04 Got it, sir. That's helpful. Two smaller questions. One is, can you highlight the profit share in this quarter? Profit share is about 9%. Okay. And the final one is, can you reconfirm the time lines for the NDDS project? NDDS project is about is '29? '28. '28, sorry, '28 and the commercialized '29. Got it. And with the revenue potential of 25,000,000 to $30,000,000 That's correct. Got it, sir. That's it from my side. Thank you. Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to the management for closing comments. Over to you, sir. Thank you, everyone, for joining us today. We appreciate your participation in the question and answer session during the call. If you have any follow-up questions, please feel free to reach out to us. We look forward to connecting with you again next quarter. Thank you.

57:09 Thank you. On behalf of Gland Pharma Limited, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.