Sakar Healthcare (NSE:SAKAR) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Sakar Healthcare Limited q one f y twenty seven earnings conference call hosted by MUFGN. 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 miss from MUFG and Tech. Thank you, and over to you, ma'am. Thank you, Shruti. Welcome to SAKAR Healthcare Limited q one FY twenty seven earnings conference. Today on the call, we have mister Bhikimri Ghosh, vice president, strategy and business development mister Dhanesh Tapar, CFO mister Bharat Soni, company secretary and miss Pushpa Komani, manager.

0:55 Before we proceed with the call, I would like to give a small disclaimer that the call may contain certain forward looking statements, which are based on the business opinions and expectations of the company as on date. A detailed disclaimer has been given in the company's investor presentation, which is uploaded on the stock exchange. Now I would like to hand over the call to miss Pushpa. Over to you, ma'am. Good afternoon, everyone. I welcome all our shareholders, investors, analysts, and stakeholders to the earnings call of Sakar Healthcare Limited for the quarter ended 06/30/2026. The first quarter of FY twenty seven has been encouraging for SAKAR Healthcare, both operationally and financially.

1:48 Over the past few years, we have built an oncology business with a clear objective, establish a strong presence in global markets through differentiated products, regulatory driven market access, and long term commercial partnerships. As we move forward, we see SAKAR evolving into a predominantly oncology led export franchise. Our efforts across product development, those years, marketing authorizations, technology transfers, and API integration are all aligned towards building a larger and more sustainable ontology export business over the coming years.

2:39 What we are witnessing today is a steady increase in opportunities across all three areas. During the quarter, we executed more than 65 oncology product contracts and advanced discussions for over 50 additional opportunity across multiple international markets. This growing activity reflects the increasing demand for oncology products and the rising acceptance of SAKAR among global pharmaceutical companies. Our major focus area for us continues to be market access. The strength of any global oncology business is determined not only by the product it developed, but by the market it can access and commercialize them. During the quarter, we shared 261 oncology dosias globally with 178 already submitted and 16 marketing authorizations received.

3:45 We also completed 26 European filings, including 15 old filings. What is particularly important is that every approval expands our footprint into new markets and creates additional opportunities for future product launches. Today, our regulatory pipeline is wider than it has been ever, providing us with increasing visibility across regulated as well as emerging markets. At the same time, our product portfolio continues to deepen. We have now developed 55 oncology molecules with 32 doses ready for launch globally.

4:34 This allows us to continuously engage with partners across different regions while broadening our commercialization opportunities. Another area where we are seeing meaningful progress is customer engagement. Technology transfer projects has become an increasingly important part of our oncology business model. We currently have 33 ongoing oncology technology transfer projects with leading pharmaceutical companies, including Accor,, Glenmark, and Zydis. Seven projects have already secured site radiation approvals across The UK and European Union.

5:24 These projects are important because they create long term relationships and establish Sakar as a strategic manufacturing partner rather than simply a product supplier. A collaboration with Life Sciences during the quarter for the reinforces this trend and sparked a fortieth global anticancer product agreement. We also continue to strengthen the economics of our business through backward integration. With 21 on apology API developed in house, including 16 APIs supported by recent confirmation, along with CEP approval and ongoing CEP application, we are steadily improving control over our supply chain while enhancing our competitiveness in international markets.

6:26 All of this is supported by our integrated EU GMP approved oncology facility at Bawla, which remains a cornerstone of our expert strategy and enables us to address opportunities across injectable, oral liquid, and API from a single manufacturing platform. What us confidence about the future is not only the strength of our pipeline, but also the scalability of the platform we have created. The Bawla Oncology facility has been designed with significant growth potential, and we believe it can support revenues of rupees 800 crores to rupees 1,000 crores at optimal utilization over the next four to five years without requiring any major incremental capital expenditure.

7:26 Given the current level of utilization, we continue to see substantial headroom for growth, operating leverage, and margin expansion as product registrations convert into commercial launches and export volume scale up. Alongside oncology, our facility continues to support our nononcology operations, providing stability through CDMO services, injectables, oral solids, and branded formulations. Our export portfolio today spans APAC, Latin America, CIS, Africa, and selected European markets, creating a diversified international revenue base.

8:17 We are also encouraged by the recognition received from the Ethiopian Pharmaceutical Supply Services where SAKAR was recognized as one of the best suppliers for twenty twenty four, twenty twenty five. We believe such recognition reflects our growth credibility, execution capability, and commitment to serving international health care market. Financial performance, revenue from operations for quarter one financial year twenty seven stood at rupee 7,297 lakhs, delivering a year on year growth of 38%. EBITDA increased by 66...

9:03 67% to rupees 2,125 lakhs, while EBITDA margins improved to 29%. Profit factor debt stood at rupees 1,028 lakhs, recording a growth of 120% over the corresponding quarter for the previous year. Our oncology division continues to demonstrate strong momentum during the quarter, making a meaningful contribution to the company's overall performance. Export revenues also witnessed healthy year on year growth, reflecting our expanding global footprint and increasing acceptance of products in international markets.

9:51 The improvement in profitability reflects a combination of better product mix, higher operating leverage, increasing contribution from oncology products, and continued execution discipline across the organization. As we look ahead, we believe the opportunity before us is substantial. The global oncology market continues to expand while demand for compliance and reliable oncology manufacturing partners remains strong. With the growth going to the base, increasing approval, expanding technology transfer activities, and a deeper customer engagement, we are building a platform that is becoming progressively stronger with every quarter.

10:41 Our focus remains simple, increase registration, expand launches, deepen partnerships, and grow oncology experts across global markets. We believe this approach will continue to strengthen SAKAR's position as a global oncology focused pharmaceutical company and create a sustainable value for all our stakeholders. Before I conclude, I would like to thank our chairman and managing director, mister Sanjay Shah, our board of directors, employees, customers, global partners, and shareholders share with us for your continued support and trust. We thank you. We will now open the floor for questions.

11:31 Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handset while asking question. Ladies and gentlemen, we'll wait for a moment while the question queue is handled. The first question is from the line of Priyanshu Jain from GrowthXInfiniti. Please proceed. Hi. Am I audible? Yeah. Hi, sir. Congratulations, first of all, on great set of results. Sir, I have few questions. First will be on the expansion side as we don't require any further CapEx for the next few years I would consider. So can you just share the pipeline, like, the molecules which are going to commercialize for this year or for the next year?

12:36 Yeah. Actually, during the commentary, it has been told that we have already developed 55 oncology molecules in house. And currently, we have 32 ready doses for this molecule as well. So we have already a robust pipeline of around 33 product... 23 products which... For which we have the dosias to be prepared as well. Along with that, this facility supports also development of other molecules which are coming off patent. So there are another six, seven molecules which can be also taken up in the same setup, which should be operated in the coming maybe couple of years. So that builds a robust portfolio in terms of branded generic in India as well as abroad, where the oncology generics are up top demand based on which we have selected these drugs.

13:25 So it does not require any further expansion or take up CapEx, something like that to support whatever we have taken the objective in the coming three, four years time. Great, sir. So second question will be on the average customer. So, like, how the discussion discussion started started and what is the final execution of the things? Like, can you share the... How the timeline works in our case? See, as we have already mentioned, one seventy eight have already been submitted in different regulatory agencies worldwide. So each have their own timeline of approving that, which normally ranges on an average of twelve months.

14:12 So with one seventy eight in the pipeline right now, we have received 16 approvals from them. We are moving ahead in the com... This financial year, we are looking to double that number. And in the next year, we are trying to reach a total number of 100 plus dossier approvals or registrations, which will support the... Whatever the revenue we are planning for in the coming two, three years. And, obviously, $1.78 is going to increase as well because we have another 50 plus dossier, which is about to be submitted within next one or two quarters time. So this will be a dynamic number and quarter over quarter, we'll be having an addition of around 25 to 30 even from the next financial year. Great, sir. Sir, next question will be on the research and development side as, like, there is a lot of research which goes in the, like, r and d of these KPIs and all.

15:10 So, like, how we, like, hire people in this division that the leg is... So if you just throw some light on that aspect. We do have a... As you rightly mentioned, we do have a robust r and d, f and d, and ideal lab to support this product development where more than 30 odd different high-tech people are working, have experience of working with cytotoxic over years. So there, we have some complex molecules in terms of peptides, in terms of liposomal products. You may be heard of... You may have heard about the. So this type of products, lipo... Liposomal doxorubicin. So these type of products we are planning, which we have already developed in house. But now the thing is that we need to push forward in terms of market feasibility, and then we can take up the pilot versus and scale up. So that is in the evaluation phase commercially.

16:04 But in house, we have developed those type of... Those range of products for which we do have the potential. Okay. And, sir, like, the researching development part, like, emphasize on data link that after recently, the government has announced a robust budget for the... Like, in this space only. So, like, are we planning to get any funds for research and development in this space only, like, from the government? Like, do we have any plans further? Right now, we do not have because we are currently self sufficient in terms of funding our business developments. In terms of... Because these products are what we have right now developing or develop to just a few months back or something like that. That we have already planned a couple of years before.

16:53 So that was irrespective of any grant from any of government or any other agencies. Okay, sir. Great, sir. Thank you. That's all from my side. All the best. Yeah. Thank you. Thank you. Ladies and gentlemen please Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your question to two per participant. The next question is from the line of Du from Leo Capital. Please proceed.

17:42 Thank you for the opportunity. Am I audible? Yes, sir. So, I have two questions on the oncology business. My first question is, over the next three, four years, as the pipeline converts into our commercial supply, how large can the oncology big... Business become for us, both in absolute terms and the proportion of consolidated revenue would be a great number as well? And within that growth, which geography are we seeing maximum potential in? Is it primarily Europe on the back of EU GMP approval? Or is it into ROW markets like Africa, Southeast Asia or so? First of all, regarding the potential, I feel during the commentary, it has already been mentioned that INR800 crore to INR1000 crore, we can easily pick up considering the product mix of the current facility what we have.

18:34 So that is the potential we also are looking forward maybe down the line in around three to four years' time. And regarding the trade, what you are looking forward to in terms of our reach, definitely, have already segmented the market. In terms of that, we have identified that Europe and some of other markets like Colombia, Mexico, and Latin America. Then in Africa, we have identified in the Eastern African four countries. Then in the Asia Pacific, also including Australia, New Zealand, along with that Philippines, Vietnam, Malaysia, and Thailand. So these are clusters which we have already identified, and we are moving ahead in submitting our to these targeted markets only. So this one seventy eight, you will predominantly will find 90% of the are going to these markets.

19:23 So thereby, the potential lies as a return in terms of revenue from these markets only, which will contribute majorly to this revenue figure, which I have told in three to four years' time. That's great. That's really helpful. So my second question is on the margin potential. On margin side, if we see as the business scales up towards sales, optimal capacity utilization and also we get benefit of API backward integration, What margin potential do we see for oncology at scale? Is there any room to move structurally beyond 25%, 30% range? And what would be the key levers, if any? If you see EBITDA margin is now healthy in terms of moving over 25%, which we have been maintaining or sustaining maybe for the last couple of years.

20:16 So it is about to maybe reaching around 30% in course of time, but we have seen with the evolving oncology business contributing maybe around $93.94 crore in the last financial year. And this also... This time also, it is showing up a healthy growth this quarter onwards. And considering the business, what we are building up in terms of three major areas, what we are looking for are to CMO as well as exports and the API. So I feel so that it will be soon crossing the 30% margin EBITDA in maybe by the end of this financial year or something like that. And considering a backward integration with API, as you have heard about that we are already integrated with CEP.

21:03 So once we integrate that with our current product portfolio, that will push those which will be integrated to have a margin nearby around 55% plus. But those will be selected products for which we'll be having the API with CEP. Okay. So thank you so much. That was all from my side. All the best for the next quarter. Thank you. The next question is from the line of from Total Capital. Please proceed. Hi. Good afternoon, everyone, and congratulations for the good start up number. So my first question is, you know, last three quarters, we have been in the 70 to 75 crore range. While if we look at the MAs that we have got or the approvals, registrations that we have got and the pipeline all have moved up. So how do we look at this quarterly number going to INR 85 crores, 90 crores?

22:01 What kind of timeline? What has to work for us to reach to that number? If you can talk about that. Yeah. You are right. Because the business was very dependent upon the business and the CMO model of business, which we are operating for oncology since the past quarter or maybe the last quarter also. But once the export starts picking up, this number will increase because the contribution from that arena is right now not so significant enough. Although we have done more than 50 plus or maybe rather 60 plus agreements or contracts overseas with more than 15 contracts in the domestic market, considering the 50 or odd contracts which are currently having the dossiers or the site variation under progress, the exports still now is not contributing or adding that significant value to this business. So once it comes up, which you can see from this quarter onwards or maybe in the coming third quarter onwards, so this will significantly boost up. And whatever the figure you are telling, you will be getting that number from that quarter onwards, maybe second or the end or third quarter beginning.

23:13 Got it, sir. Very clear. And, sir, second question is on the, you know, MAs that we have received. I think, you know, on the European side, you know, the approval process probably is taking longer because we have six MAs and we are kind of remaining in the same range. So how about commercializing those MAs in our own name and where are we in the process? Have we commercialized any MAs? And how do we look at the MAs coming through for the current year? So if you can talk about the commercialization on our own MA part of that. See, as I mentioned in the past interaction also, the... Yeah. Receiving an email is a a process where we do not have a direct control. But having said that, right now, we have 16 emails we have received worldwide and with our submissions, which our partners are holding.

24:10 Putting one or... One any of which we are holding in the Europe. So right now, what what currently is there is... We are in the pipeline of submission or actually the logistic part is working on supplying these products in different parts of the world, primarily to European market because first, we have received from Bulgaria. Those three products, which is order has already been processed, and we are expecting that that will be dispatched in couple of months time because the purchase order has been come... Been received. The product has been already manufactured, and we are in the process of dispatch for those products right now. There we have received six from that country, and right now, three are in the process of dispatch.

24:56 So that is... Because the the thing is that one should understand this is the first time the problem comes in terms of logistics. We have certain processes to follow, like, we have the realization process, which has to be established in a very fast way. So these are the two important parameters, and we have the overseas partners basically who will be managing this. Of course, then we have the peace lab also who is in Bulgaria. So so all these overseas things we are coordinating, and we are looking forward to dispatch in this quarter only. Got it. I have more questions. I'll come back in the queue. Thank you. The next question is from the line of from Capital.

25:43 Please proceed. Yeah. Thanks for the opportunity, sir. Sir, if you can tell us how much were the oncology revenue for this quarter and what was the split between domestic and exports in that. And, yeah, that was my first question. Yeah. So for the first quarter, the oncology business was around 33 crores, of which around 6.5 crores was exports, and the rest was domestic. Okay. Okay. And, sir, on on the tech transfer part, you know, we had two tech transfers which which had been done for Accord and Intask as per the last concourse. So how many tech transfers have now been completed with them, and how do you see ramp up in revenues happening? Because, you know, this was expected to be a big growth driver for us. Any tenders that we have won through for this products for which the tech transfer is completed.

26:47 So if you can give some color on how the tech transfer thing is progressing, and how do you see this progressing over the next few quarters for in... For Accord in that as well as for other other companies like Torrent in UK and Germany. Yeah. There were... If you recollect, there are total... The two major partners for which we are doing the tech transfer for the overseas market, Intel's Accord and Torrent. In Torrent, we have two, one in Germany that is Weiman, and another in The UK that is Torrent u. K. Right now, we have seven approvals of the five variations which has already been received, out of which five are for record for the euro.

27:34 The molecules are emerging azacitidine, exemestine, sorafenib, all four are oral solids, tablets and cytarabine injection. Out of which three products have already been commercialized, we have dispatched right now MSB in the releasing phase and in the launching phase in the respective market. Okay. And how do you see Yes. For the Yes. For the Torrent part, we have also received one... Means we have been awarded. It means our Torrent has been awarded in Germany for tender with the product of we have already dispatched to them. So we'll be supplying in due course because these are supplied in different milestones. So we'll be doing in... We're supplying those in installments.

28:21 And Torrent UK also have received the the product. So both the both the partner means the partner company that Torrent UK and Germany both have received the products. Exemestine also has received... They have received. Letrozole and Exemestine, both they have been awarded the tender in Germany. Okay. So so how how do we see scale up in the revenues happening for this tech transfers? You know? Let's say, this year, we are targeting almost 200 growth revenue from our oncology division. So, like, how should we differentiate between, you know, how much revenues will be from the domestic supply that we are already doing? How much from the spec transfers, and how much from the MA MAs that we have filed on in our own name?

29:13 So if you if you see the split right now, the export contribution is on a lower side, if you see the last financial year. But going ahead, we are seeing that it is on a... Right now, picking up as we start exporting the products for this overseas partners, as I told, Accord and Torrent. And along with that, we will be adding up also in cure because they are a partner company, Telomed, in The UK, which is also a big name. So they will be also receiving the products from us. So which you are seeing a miniscule figure, which has just mentioned few minutes back of just only 6 lakhs or something or six stores business which is coming maybe for the quarter.

29:59 That we are looking forward to maybe around making a 10 times of it roughly at the end of year, that value to exports. Okay. Okay. So 60 to 70 road export revenue we are expecting from oncology division. Is Yeah. This will come... Comprise of all the... Both the side variation as well as the MA based exports what we'll be having. So so... And how should we look at this number for FY twenty eight? FY '28, again, this is the number which we may be looking forward to double that number because then the MA number of marketing authorizations will be touching more than that, which we are right now sitting on 16. Looking forward to double in the same financial...

30:44 In this current financial year. So the subsequent fund or the next financial year, we'll be looking for a figure of 100 plus marketing authorization. And that will easily land up to a figure which we are looking forward to doubling that number of 60. Okay. Okay. And how much should we look for the Onco contribution in FY twenty eight overall as a business... As a segment? In in that, it will be around roughly the three times of what we have achieved in last financial year. So that is what we are looking forward to. Last year, what we have achieved, we are trying to double this year, this financial year. And that subsequent to... Or the next financial year, we'll be looking for a figure of around three times of the previous year what we have achieved.

31:33 Okay. So This is more than 100% growth. Oh, okay. Okay. So close to two eighty, 300 growth of revenues from oncology in FY 2020. That is the figure roughly we are aiming at. Sure. Okay. Okay. Okay. Thanks, sir, and wish you all the best. Thank you. The next question is from the line of from. Please proceed. Hello. Am I audible? Yeah. Yeah. Please. Yeah. So, sir, as you mentioned that currently, we are doing, like, around six course of export. I just want to know that in oncology, how much part is our own because we have a CMO majorly in... On the oncology side. So are we able to do any sale on our own MA or any other way?

32:22 And when we talk about domestic sales, like, in oncology, is it totally 100% from the CMO, or it's somewhere on the own brand sales also? Regarding the first question of yours, that is the own marketing authorization. As I told you, we right now have one marketing authorization for which we are aligning for the sales. This is in the Balkan regions. Apart from that, we are also trying to develop our own marketing authorization portfolio in the European market because that that helps in terms of our total control in which market we want to go with the market operation. Because as you know, in Europe, you can cover as a at a stage with one registration for 30 markets just by running some procedures, which takes roughly two to three months' time.

33:12 So that is why we are trying to have some marketing authorization in our portfolio for which we are looking right now for a number of around 15, which we have already processed for. Regarding the second question, what you have mentioned, our domestic business is driven by both the chemo business as well as the APIs because in oncology, API is also quite critical. Very few manufacturers are there. And we understand end users requirement. So our APIs are more customized for the people who are manufacturing or manufacturers who are with oncology. But having said that, we operate with more than 15 key customers who are mostly playing regionally in the Indian Subcontinent.

34:01 So they take one of the two products or molecules in the finished dose form through us. That is under CMO model. Apart from that, we also work for the major clients of ours, of which already we have mentioned about the Indus, Torrent, Rydas, Glenmark,. So these are the major partners which we... Who who we are already manufacturing and supplying their products. So this is a domestic business, how it is... The composition is derived at. Got it. Sir, can you tell me the revenue which we are making from the API business and how we expect it to grow going forward? And one more thing that as we are doing CMO and also we are... Going forward, we are going to do the MS. Right?

34:49 So how the margin differ in both the model, if you can share that information? See, right now, once you see the total business, the mix is not so well balanced in terms of exports, not contributing that much as on last figures what we have received. So API contributions looks a little bit on a higher side in terms of around... Nearing around 30% contribution, But to the total sales... But having said that, this put... This will marginally grow over years because we'll be using it captive on a better way so that we become more prepared and more self dependent in coming times. So that is what what the objective moving ahead.

35:36 Regarding... What was your second question in that? On the margin side. On the margin part, the CMO part, obviously, you can understand the partners are a little bit aware of the market, and there are some understanding in terms of whatever the API costing and other compulsions are made up. So there we have the margins where... Which you can see right now, the EBITDA of nearing around 30%. So it will hover like that. But once you move into the exports and particularly with an integrated API, then the margins will... EBITDA margin will be more healthy, roughly around 35% or even more. Okay. Got it. That's all. Thank you so much. Thank you.

36:24 The next question is from the line of Rupesh from Longity Partners. Please proceed. Yeah. Hello, sir. Thank you for the opportunity and congratulations on good set of numbers. Thank you. Yeah. My my question is a follow-up to one of the other participants. So now we we are at the 70 crore run rate for for last three quarters. And I think we we have given a guidance of $3.50 crore. So next three quarters needs to be 90 crore sort of run rate. And and you replied that because export contribution will will grow over the year. So we we are on track for this 90 crore quarterly run rate over the next one or two quarters. That that... I'm taking that as a confirmation. That is fair understanding?

37:14 Yeah. Yeah. That is absolutely... You are right. If you see the presentation as well, yeah, we have the two sixty one do here in the... Already which we have already in the market, which have been evaluated. Some have been submitted one thirty eight, which is in 90 of those years are also remain in the partners and which is to be submitted in maybe one or two quarters time. So you can understand the potential which then the export is going to give us with two fifty odd registration coming up in couple of years' time. So that is what we are looking forward to. Maybe after this financial year, that is the push to what we are actually looking forward. Okay. Okay. So then the second question is the... Sorry. Mister, was just one question. Yeah. That was just one question.

38:04 Okay. Yeah. The the second question, sir, is we we received these two two CEP approvals. Two two APIs got approved. So when when do you expect being... Them to commercialize, and and how many more approvals can we see in this year? See, the eight... See, the APIs with CEP right now, we have two approvals for the. So both the products, so we have the finished dose in our So right now, the... Our objective will be to backward integrate rather than going and selling in the market because that will make us more robust with our pipeline. Obviously, if there is an opportunity business, we'll look forward to that, but is not our priority rather than backward integration will be a priority on that. And just for your other information, we have another five in the API pipeline of ours of 21 develop, which we are also preparing for the approval of CEP.

39:06 So that will take us to the total number of around seven. So out of 21, seven will be having an approval with CEP maybe in next few quarters. And thereby, 33%, if you can understand, of our products will be then backward integrated. So that is the objective what we are looking forward to moving at. That's that's perfect. All all the best to come,. Yeah. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, Please limit your questions to two per participant. The next question is from the line of from adviser. Please proceed. Hi. This is a new of 33 crore, including INR6.5 crore of export. I'm assuming this is linked to site variation, not the market declaration one. So you can confirm that. And how you think this INR33 crores will look like for the full fiscal year 'twenty seven?

40:07 If you can just break it down between domestic encore, site variation kind of encore, which is deemed export kind of thing and the market authorization base which will kick in Q3 and Q4? It's considering the marketing authorization, alignment, and thereby the supply of the oncology products towards this market. And we are looking for a revenue what I have told that that is doubling the last year's number. So in that, what we can expect...

40:53 Export will roughly come up to around 30% contribution to the total sales, what we can look forward to. So that brings roughly what we can expect. It will catch up with the CMO on the domestic part, which will roughly contribute around around 40%. So API will be around 2525%. So that will be 65, around 30% will be coming around from the export business. So that is what we... The mix we are looking forward to. End of FY twenty seven. And total revenue would be... Second question, total revenue? Double number what we have achieved last year. Onco or the full company you're talking about? The the one Oncology. Oncology because 100 the relevant question was with oncology.

41:39 Yeah. So $122,100 crores. Right? Hello? Hello? Thank you. Yes, sir. Thank you. The next question is from the line of from Safar Healthcare Capital. Please proceed. Am I audible, sir? Yes, absolutely. Yes. Thank you very much sir for this opportunity. So just wanted to understand first up, so what sort of growth we are looking at on the non oncology like CDMO API over the next two, three years sort of CAGR? And and what's the pro... EBITDA margin profile difference between oncology versus nononcology? See, right now, the focus of ours is oncology having the setup what we have right now with the API integration and research unit in place.

42:33 So the non oncology portion where we will be expecting around growth, pharmaceutical industries are right now having around 7%, 8%. So that is up to there we have more than two seventy odd marketing authorizations there. And we'll spread in terms of our product portfolio what we have with the emerging market as the focus. So there, we are not that much of concentrating right now. So it is more or less in a state where we can grow with the generic on that pace, which the market is doing at. So you're talking about 7% CAGR? Seven, 8% CAGR? I mean, did I hear you? Yes. Roughly, year over year, that is what the growth you are right now getting also if you calculate for the past two, three years.

43:23 Because that is, again, a generic product going to the emerging market. So once you grow by eight, 9% also, there are certain competition. There are certain price solutions. So everything factored in, we can grow around seven to 8% as per market trend with the nononcology. But with the oncology, the thing is that where we are putting in more of focus and more of inputs have already gone in. So there, we can look around doubling the sales year over year. So that's what we are trying to do this year as well as planning for the next year also, which I already told around three years of the previous year, the figure what we achieved. And regarding the what again? The EBITDA margin, right, you have asked for? Yes. If you if you track the EBITDA margin of the for the past few years, it is around 25% because that is where the trick is we want to focus more into oncology because oncology has a potential of moving that to 30% or even higher.

44:21 So where the basically the margins are higher, one should concentrate. So that is the reason why we are trying to concentrate there. So currently, your oncology margin is 30% or potentially... You see the last yes, last quarter, it was around 27%. This also we have increased by around 2% on that. So quarter over quarter, as I told, it will yearly, we are looking for reaching around nearby 30% this year on a yearly On the yearly basis. Okay. And at full utilization, I mean, is that 30% is your aspiration or you can go even higher in oncology? As I told earlier also, the API integration will push that contribution EBITDA margin to around 35% or even higher.

45:07 And this will happen by when? So this also, again, we have already two CEPs in process. We are trying to integrate that right now. The process is ongoing. And the five already we have in the pipeline where we have processed for. So seven IPs with CEPs, we are planning for within next few quarters, maybe two to three quarters. So that is what we are looking forward to. Okay. Understood. That's very clear, sir. I mean and very helpful also. And that was it from my side. Wish you all the best. Thank you Thank so you. You. The next question is from the line of Shivam Agarwal from Goldman Capital. Please proceed. Yeah. Hi, sir. Thank you for the opportunity. Sir, I just wanted to understand this oncology revenue going from 100 to 200 crores. So out of that incremental 100 crores, can you just help us understand how much would be the contribution of the seven type variation approvals that you have, you know, achieved till date? How much will be your own earnings, and then what will be the growth in your domestic CMO business? And that is what you can... I can understand.

46:17 Yeah. This... I have touched upon this in my previous answer. Around 30% is the export what we are looking forward to once we go... Plan to double the previous year oncology sale. And in that, obviously, the contribution of the marketing authorization, what we have come will be around 70 to 75%. This will be starting. We are already exporting our site variation products, so that contribution will come up. So site variation approvals then will just contribute about... In absolute terms about 25 to 20 crores. Is that the right understanding? So it will be some we directly export, some goes through our our partners because is already there, so they take it from us and then export.

47:03 Same thing with Torrent. So some we directly export, some goes through them. So considering that, 70 to 75% will be the marketing authorizations, which will be the exports contribution from our... Means we will get. And this 25%, which will be directly exporting under CMO business model. Understood. Understood, sir. And, sir, out of this, what I understand from my last call is that Intas deal in itself was about 50 to 100 crores in terms of incremental revenue. So a large part of the contribution would be driven by this deal and, like... Or will it be, like, equally driven by your entire Torrent and your own enemies? See, as I told you, there are five major partners of ours, like, the SAKAR, Torrent,, Telomet, then Denmark and Zyla. So these are the, obviously, these... They are the high size. I mean, size wise, they are big, and they contribute more.

48:05 But having said that, we have our exports to support our overall exports from India. And we do have also some regional players, 15 plus regional players who are also taking products on a regular basis on the CMO model from us. So the big companies may have a number of products and their value wise, they may be on a higher side. But we have skewed... Not skewed the business towards only the five players. We have another 15 players who are also supporting us on... Based on their sales with oncology products, which may be regionally or maybe nationally. Understood, sir. Understood. And, sir, just a bookkeeping question. If we talk only about the domestic CMO business, and here, I'm only talking about products which are sold to our partners meant for domestic sales.

48:54 What was the contribution in f y twenty six, and what is the contribution in absolute terms you are expecting in f y twenty seven? This is regarding the domestic business? Yes. So I'm talking about just domestic CMO where you are selling the products to our partners for the domestic IPM market. Not about the... Deemed export, not your c... Other c... Export CMO business. Just the 30... No? Yeah. Roughly, it was 35 CER last year domestic CMO, and this year, we are going to double that number. Because we have we have certain companies like in Pure, Glenmark, and Zydus not to full potential in terms of the domestic business. So their contribution will add up along with the other partners who will also multiply because every company grows.

49:44 If you see in the Indian market also companies whom we work with, they have their own plans of growing 15, 20% year over year. So that figure will also help us grow in our number. Understood, sir. And just one last question, sir. What was the contribution of API last year and API contribution last year in oncology business? API, as I told you, last year, it will be around 30% will be the API contribution. So out of that 95 crores, roughly $27.28 crores was API? Right. Understood. Thank you, sir. Thank you for answering the question. Yeah. Thank you. Thank you. Due to time constraints, that was the last question. I would now like to hand the conference over to the management for the closing comments.

50:32 Over to you, sir. Thank you, investors and shareholders. Thank you for joining for q one FY twenty seven conference call. Thank you so much. Thank you. On behalf of SAKAR Healthcare Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.