Innova Captab Limited (INNOVACAP) Q3 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Innova CapTab Limited Q3 9M FY26 Earnings Conference Call. As a reminder, all participants' lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference has been recorded. I now hand over the conference to Mr. Ayush Kumar Garg, Head IR. Thank you. And over to you, sir.

Thank you, Bari. Good afternoon, everyone, and thank you for joining us on our earnings call today to review the operational and financial performance for Q3 and 9 months FY26. We have with us Mr. Vinay Lohariwala, Managing Director, Mr. Lukesh Vaseen, Chief Financial Officer, and representatives from SGA, our Investor Relations Advisor. I trust you have the opportunity to review our financial results and the investor presentation, both of which are available on our website as well as on the stock exchange website. Should you have any further questions after this call, our investor relations team will be happy to assist you. With that, I will now hand over the call to Mr. Vinay for his opening remarks. Thank you and over to you, sir.

Thank you, Ayush. Good afternoon, everyone, and thank you for joining us on our earning call today. I am thrilled to report that Innova Captive delivered a stellar quarter with revenue from operations surging to 450 crore with a robust 42% year-on-year growth. This reflects not just number but the tangible result of our sharp and strategic focus, comprehensive product pipeline, and unbearing operational discipline. For a nine-month FY26, revenue from operation hit 1182. Up 27% year-on-year, powered by exceptional execution across both business vertical and our world-class manufacturing infrastructure that continue to set us apart in a competitive landscape. Profitability advance hand-in-hand with scale, driven by operational efficiency and streamlined operations that unlock greater value at every step. This reflects our team's disciplined execution and rentless focus on optimizing resources to deliver sustainable margins and robust growth. Coming to business highlights. Our CDMO business. Powered ahead 29% year on year, fueled by deeper partnership with trusted existing clients and existing means from new ones. These relationships are built on our proven reliability and technical expertise, positioning us on a go-to partner for quality pharmaceutical formulation. Can you hear me?

Yes, sir, you are audible.

Yeah, thank you. The API prices are witnessing some stabilization. which directly supports this vertical. Frontage and generic serves 79% year-on-year, driven by our bold push into high-potential new domestic and international geographics, coupled with intensified penetration in established markets. This growth seems from an elaborated portfolio to high-demand products and agile go-to-market strategies that resonate strongly with prescription and patient alike. Our manufacturing facilities are equipped with state-of-art infrastructure and rigorous quality control that ensure seamless and reliable operations. These proven effects from the bedrock of our scale-up supporting both current demand and future growth trajectory with unmatched consistency. Recently, we... We have further bolstered these capabilities with prestigious GMP certification. UK MHRA approved our cephalosporin birdie unit and fixed via SMDC Ukraine for all our Zammu blocks. These milestones opened doors to regulated high-growth market where our superior quality standards will deliver premium opportunity and long-term client loyalty. The new Jammu facility is ramping up smoothly with commercial operation underway with Marquee CDMO partner, several other have also successfully completed audits, validating stability data and other key parameters. We are optimizing about Jammu facility's operational ramp-up ahead in the coming quarter. Looking ahead, we at Innova Captive have put multiple high-impact river in motion. From capacity expansion to geographical diversification, ensuring sustained revenue, acceleration, and profitability gain, our team remains fully committed to execute these procedures. Operating in a dynamic environment where innovation and research in the pharmaceutical space are of paramount importance. We are equally focused on meeting the need of the changing environment through our existing as well as planned R&D endeavor. Driven strictly by our dedicated R&D center, our achievement highlights our strategic agility and operational excellence aimed at a dynamic industry backdrop. With a proven track record of being a growth-focused company, we are confident of replicating similar momentum going forward. With this, I look now to hand over the call to our CFO to detail out of the financial performance during the quarter and nine-month FY26. Over to you, Locke. Thank you, sir.

Good afternoon, everyone. I will now walk you through the financial highlights for Q3 and 9 months FY26. Consolidated revenue reached Rs. 450.3 crores, delivering robust 42.3% year-on-year growth, driven by strong demand across both CDMO and Brandy Jendis business areas. For 9 months FY26, revenue stood at Rs. 1182.2 crores, with a year-on-year growth of 27.3%. Reflecting sustained momentum from our diversified portfolio and expanding market reach. Exports form a healthy 35% of Q3 F526 revenue mix and constituted 32% in 9 months F526, underscoring our strategic progress in global markets. The CDMO business generated Rs. 298.7 crores in Q3 F526. Up 29% year-on-year from Rs. 231.6 crores. Over 9 months F526, CDMO revenue total Rs. 813.9 crores, growing 18% YUI. Branded Generic Stone brightly weighed Rs. 151.6 crores in Q3 revenue, surging 79% year-on-year. Fueled by aggressive geographic expansion, both domestic as well as international. For 9 months FY26, this area delivered Rs. 368.4 crores, up by 56% year-on-year. Habitat climbed to 71.1 crores in quarter 3 FY26 from Rs. 50.9 crores last year, a solid 39.6% year-on-year increase. 9-month FY26 EBITDA was Rs. 183.7 crore, up 24.8% from Rs. 147.1 crore, with margin study at 15.8% for the quarter, and 15.5% over 9 months, reflecting discipline cost management. PADS to debt Rs. 42.1 crore for Q3 FY26 and Rs. 102.8 crore for 9-month FY26. Supporting our focus on profitability along with the growth. This wraps up our opening remarks. The floor is now open for your questions. Thank you a lot.

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 their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sudarshan from ASK NDPNF. Please go ahead.

Yes, thank you for taking my question and congrats on good set of numbers. So my first question is from Jammu, if I can break it into two parts. One is how much, you know, in this quarter it's contributing, I mean, if you can use some color quarter on quarter, how it is scaled up. And second, just in the context of the GST cut that happened earlier, I mean, how would the strategy be to maximize the utilization in Jammu much earlier to what it was, you know, earlier planned, to basically capture the higher component of GIT, some GST, some color of that.

Yeah, so this quarter, we have achieved a revenue of around 89 crores from Jammu, which has increased from around 60 crores previous quarter. And regarding, can you please repeat your second question?

So, this was on account of the, you know, reimbursement that happened from the, you know, on the JEMO facility. Now, earlier, because of the, you know, cut in the GST, the expectation was, you know, it was a little hazy, but the way that we can ramp it up faster, we will get, you know, better, you know, payback, right, on the JEMO facility. So, wanted to know whether now we have a plan with respect to how we are going to, you know, start there.

So, as the location has given the number that this quarter, we have closed 89 crores. So, this is post the implementation of GST 2.0, number one. The number two is that GST is one of the factors behind the Jammu facility. The other is pure play of the capacity and capability demonstration. So, definitely, we have some... Dent on the GST, due to the GST cut, but the capability and our capacity and capability is at par, and it's a state of facility that the fixed certification is already being done. Even most of our 14 out of 15 clients where we have the relationship have either they have validated, visited the facility, done their quality assurance audits, we have started the business, or we are in the pipeline to start the business either this quarter or the first quarter. So, we see there is no, what I can say, like, we have the good fortune for this facility. And I also like to submit one more thing that yet we have not contributed any fact or EBITDA margin from the Jammu facility. Still, the numbers is speaking itself, right? And next year, we are very hopeful that there will be a positive contribution from the Jammu itself.

Sure, sir. And how do we see the scale of here, sir? I mean, in terms of utilization, say, in the next 18 months to 24 months?

So, as you know, that the pharmaceutical require a full-fledged validation and audits are there. So, we have started this demo facility in January 25. Now, it's almost one year from our commercial production start. So now that we are hopeful that all the customers, like most of the marquee customers, will be on board from this quarter or the first quarter of the next year. And I don't want to quantify the number because being a new facility, there may be some gaps. That's why we don't want – we are not quantifying the number. But in overall strategy, we can have that 20% plus growth for the next year.

Sure, sir. Sir, my second question is on, you know, the branded generic, which has, you know, again, done very well. I mean, Q1Q and YOI. So, if you can give some color with respect to, one, the sustainability of that. And, you know, is this contributed more by the domestic or are we seeing better traction happening from Sharon? So, if you can give some color on, you know, how the mix is and the outcome.

So let's first give the number, let me take the number from the CFO, let's give some focus on this.

Yes, so if you see, you are right that brand agencies have cleared well this quarter. This quarter we have achieved around 100 and... 51.6 crore, which is showing a growth of around 79%. As I completed earlier, it has been possible because of our aggressive expansion and focus on our both domestic as well as international business areas. So we have worked on all fronts to work on this growth.

Yeah. So, in this branded Genwik, we classify our domestic as well as international business where we have our own registered brands. So, we are getting a good sustainable attraction there. Our trade Genwik's Univantis is doing good vis-a-vis our share-ons and our Innova's export business that is in our own brand is being classified in this category.

Sure, sir. Thanks a lot. Thank you.

Thank you. Participants who wish to ask a question may press star and one on their touchtone telephone. Thank you. The next question is from the line of Nishita from Sapphire Capital. Please go ahead.

Yes. Hello. Congratulations on such a good set of numbers. So I just have a few questions. One is on the capacity utilization. So can you let us know about the capacity utilization in all of your plans, if it's possible?

Hello. Yeah, Nishita, we lost you for last 5 seconds. Can you please repeat?

Yeah, so I just wanted to know the capacity utilization for all of our clients, if it's possible.

Yes.

Current capacity utilization.

Yes. So if we talk about our manufacturing capabilities, as we said that Jammu has just started. So it is in very nascent stage of ramping up. So there is lots of potential to ramp up over next few years. And talking about our other facilities, which is our Bardi facilities as well as our formulation facilities at Dehradun in Daloja, they ranges between a capacity utilization of 55 to 60 percent.

Okay, okay. And at peak capacity, how much revenue can we expect from all the three facilities?

Okay, so if I talk about Jammu, as we have submitted in our earlier call, so the optimum capacity, on an optimum capacity of, say, 65 to 75%, Jammu is having a potential to reach around 1,400 crores plus. When it will reach an optimum capacity level. And see, in a normal CDO corporation, the optimum capacity ranges from 65 to 75 percent. And the same goes with our existing manufacturing facility also. So there is still potential of 15 to 25 percent to growing all these existing manufacturing capabilities.

Right, right. Okay. And my next question is on, so it's a clarification. So you mentioned that we did 89 crore of revenue from a jumbo facility in Q3. So is that facility break-even yet or how long is it, is that facility going to take to break-even?

Yes, Nishita, it is nearing the breakeven at EBITDA level, and of course, at PAD, meeting at a PAD, the breakeven may take 13 quarters also, but we are very much sure that in next year, as Vanessa also submitted, that in next year, we are very much looking ahead to get a positive contribution from Jammu facility from both EBITDA as well as PAD level.

Okay, understood, understood. And my next question is, so we've had a very good growth in the past three quarters of FY26. So, like, do we see us reaching a 30% growth, overall 30% growth in FY26?

Full year guidance, we will still like to refrain from giving as of now.

Okay, okay. And again, a clarification, you mentioned to a previous participant that in FB27, we expect a 20% growth. That 20% growth is in the Jammu facility specifically or overall 20% growth?

This is overall 20%.

Okay. Okay. Understood. Thank you so much.

Thank you. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. The next question is from the line of Gaurav from JM Financial. Please go ahead.

Hi, sir. Good morning. Am I audible?

Yes, you are.

Yeah, to begin with, I'd like to first congratulate on a good set of numbers. I had a couple of queries. The first, I wanted to understand that the branded Gendix did really well this quarter for us. Was it led by the traction in the international business, the international branded Gendix business?

So, yes, so basically, as we said that, Bandit and this business growth has been contributed by both domestic as well as international level. And yes, international geographical presence is increasing as is evident from over the overall export to the revenue mix. It has increased around 35% for this quarter and 32% for nine months ended December 25.

So what was the parallel number for let's say 35% to 35%?

Q3 25 was around 25-27%.

25-27, right? Okay. And so in terms of any guidance for the fourth quarter? How shall we look at the fourth quarter in terms of?

So as of now, we are very much hopeful depending upon the seasonal cycle. We are still looking at a number, but we will like to not to give any firm guidance as of now.

Understood.

The next question is from the line of Avnish from Bike Idea. Please go ahead.

Hi. Good afternoon. Thanks for taking my question, and congrats on a great set of numbers. Lokesh, I just have a question. If you are saying 89 crores have come from Jammu, and it's nearly break-even. If I look at the results on an ex-Jammu basis, and if I remove, let's say, 89 crores from the 450 crores of revenue that you've booked, the ex-Jammu revenue of 361 will give the same EBITDA because Jammu is break-even. That EBITDA margin comes up to be 19% on an ex-Jammu basis. So I just wanted to understand what has happened for the margins on an ex-Jammu basis to increase so much.

Thank you, Nidhi. Thank you, Nidhi. You catch the right thing, and I covered this in my remark that we are at the EBITDA, X-ZAMU, whatever the EBITDA contribution or PET contribution is coming is from the X-ZAMU. ZAMU is not yet participated in EBITDA or PET margin. Even the PAT margin is negative because of the project cost, depreciation, and all that, right? So there is a substantial improvement, as you see. You calculated the number correctly. There is a 80-19% EBITDA margin, if we see the X demo. So, this is overall good performance across the category, better price realization, support from the API and all, overall, the exports there on, our trade journey business, everyone is contributed in a positive manner. Similarly, if you see the XMU number, that is a substantial improvement in that also. So, if you see that last quarter, we are somewhere at 380 growth, and this quarter, we are at 450 growth. So, even in the pet margin, if the 70 crore sales improve, contributed the... Almost 12 crore in the fat margin. Similarly, when we improve the performance by 10 to 20%, there is a substantial gain in the EBITDA margins. If you see the gross conversion, that is approximately 30 to 33% on average basis. Material margin is like 30 to 33%. But once the performance... Of the business, let's say, optimize and give in a better territory, then it results in a better EBITDA margin. Because, like, electricity or workman cost, all are the constant. Understood. So, you are getting benefit. Yeah, from the operational device, we are getting benefit. Better price relation is the second one.

Understood. Thank you for the explanation. The second question is on if you look at your pure play CMO business, the third party business that you have, can you quantify the volume growth that you've seen in this quarter? So let's look at the…

Yeah. So, Avish, if I say on an year-on-year basis, our volume growth is around 6 to 10 percent. Rest is all changing product slash sales mix. And quarter-on-quarter, there is not much change in volume, but the growth has been contributed mainly due to changing product and sales mix.

Okay. Last question was on the API prices. I think Vinerji mentioned in the opening remarks that we are seeing some stabilization. So, if you see on a year-on-year basis, if you assume that the prices have been stable, you have not got any benefit from any API price increase in this quarter? Is that a fair assumption to make?

So, year-on-year, if you see, then there is a negative on the prices. So, what we are saying is a quarter-on-quarter, there is a much more stabilization. Year-on-year, I think there is a clear cut we are even losing.

On the pipeline. Okay, okay. Thank you. I'll get back.

Thank you. The next question is from the line of Praveen from Evendus Park, Institutional Equity. Please go ahead.

Praveen, sorry, but, excuse me. Praveen, your voice is really muffled.

Yes, sir.

Can you use the main speakers if you want?

Is my voice better now?

Yes, that's better. Thank you.

Yeah, yeah. So my question is also in the lines of APA prices. So now that it has stabilized on a quarter-on-quarter basis, how do we see the prices APA going forward? Are we considering this as a bottom or what is the trend on APA prices? Can you give us some idea on this lens?

So, this is regarding future trends you are asking for? Oh, no, sir, APA prices. Yeah, so, in past, we can say that the prices are now in a stable territory. If we compare, say, Q2, Q3, on an average basis, we can say it is in stable territory, but prediction about the future is still uncertain. We cannot say what happens in the future.

Right, right. On the exports? Yes, go ahead. Sir, are you saying something? Did I enter?

Prevind, just to add what Vinesar was saying, so whatever numbers regarding our futures or guidance that we did, it is always on the constant API pricing. So whatever impact the change of API pricing would have in future is not imbibed in our outlook as of now.

So the 20% number which we gave for the next year would be the volume guidance. We have reached a composition of around 35% of total sales mix. What would be the ideal export versus domestic mix which we are targeting? Whether it can be on a short-term basis or on a longer-term basis? So what would be the ideal mix of export versus domestic within our revenue?

Good morning, everyone. On this front, we always say that our focus on the domestic or the export is, for us, both the business vertical is equally important. We do fairly, we are focused on the export business. We have the regulatory approved plant. We focused on all the ROW market, African market, or the Southeast market, as well as the Europe and Canada market. And we are well focused on our domestic market as well. So somehow, sometimes what happens is that one can have a better growth rate than the other one. So then the contribution may change. But in long term, I think that the 35-65 is a fair contribution. It could be 2-3%, 5% here and there. Thank you. So, that is the fair number, that 35-65 ratio.

Right, sir. The last question from my side is on cephalosporin business. So, how is it doing on our basis? And what is the macro situation on cephalosporin APS?

So, you are asking about the prices of the cephalosporin category? Yes, sir. Both on pricing side and on the demand side. So, pricing side, we can say that it is almost now the last four, five months, the prices are either on the stable or a bit increase in the prices.

Okay, okay, sir. On the demand side, sir.

So, demand is like we have the UKMHRA UGMT approved facility. Our Badi facility is a regulated plant, and we have put the other facility in the same category in Jammu also. One block is dedicated for cephalosporin in Jammu as well. And we are in this category of the product since 2010. So, we have a wide spectrum of customers' geographical presence, and our business is doing well in this category.

Okay. So, that's it for me. Thank you for helping. Yeah.

Yeah.

Thank you.

Thank you. The next question is from the line of Hitanshi Shah from Ixpint as well. Please go ahead.

Congratulations on a good set of numbers. So, in last quarter, you had guided that the Jumbu facility will have revenue of around 280 crore. So, are you on track towards that?

Yes, so I think for this year, we would like to maintain the same guidance, rather on an optimistic side. We may be slightly overpassing this guidance, but in broad range, it will remain in the range of 270-20 crores.

And if possible, what would be the revenue guidance for FI27?

So, as we said, that at an overall business area at an entity level, we are looking at it, we would be able to maintain the 20% growth year on year.

Okay. That's a reminder.

Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead.

Thanks for the opportunity and congratulations for a very good set of numbers. Sir, on, you know, as the earlier participant was talking about, you know, X of Jammu, our EBITDA margins have touched almost 18-19%. And let's say, you know, hopefully next year, Jammu will also start contributing at the EBITDA level. So, how should we look at the EBITDA margins going forward? You know, can we see a 16, 17, 18% kind of a bit on a sustainable basis from FY27 onwards? The 17-18% kind of EBITDA margins from FI 27-28 on this.

So, Ankit, if you see that we always maintain our margin profile at, say, 15% plus minus 2% here and there, right, 15 to 16, 17% next type of the margin. What happened that, like, Jammu is now not contributing, in future also, let's say, we can have some growth engines that is putting a negative on the P&L, right? So, businesses cannot be sit silently, and we need to focus continuously on the future growth also. So, we have to carry that P&L pressure from that growth strategy. Right. So whenever there is a finalized story about the future plan, we will definitely come. But we cannot say that we can have a non-negative number impact on the P&L. So that some future strategy will be there. So one side, the margin can grow with the Jammu to a plus plus side, but the future strategy can again put some pressure on the P&L.

You know, currently, Jammu has such a huge potential of 1,200, 1,400 crore kind of top line. And, you know, and currently, as you have said, this year, we're targeting 280 to 20 crore kind of revenue contribution from Jammu. There's still a huge room of, you know, ramping up revenues from Jammu itself. So, are we looking at some more expansions, at least in the near to medium term, or by 27, 28, our focus will majorly be on ramping up Jammu itself.

Jammu ramping up is the one part that we have already covered that 20% plus growth on overall business. So let's say that Jammu can give us the next 2-3 years 20% plus growth, the overall basket could be there, right? But we need to think beyond 2-3 year time horizon, how the future after let's say 28-29 from where the growth will come, right? And we need to start taking the steps regarding that work today itself. So, we are now focused on the future plans, and we are working on a few of the strategies. Whenever we are zero on some of the strategies, we will definitely inform the market, and we will come back to you on that front.

Sure, sure. And sir, my second question was on the branded genetics. We have seen a very healthy growth during the quarter, and even for the nine months, we have seen a very decent growth. On a two to three years basis, do you think we can continue to grow at, you know, 40-50% in the branded segment, given our scale also will be touching or will be crossing hopefully 500 growth this year?

So for growth, we will maintain the same strategy that overall growth should remain at 20% plus level at the organization level. What happens in a few quarter or year, some category can outperform the other one. In export business, also, we are consistently focused on registering, developing new product, registering the product across the territory, right? So, in few quarters, there may be some better, few category can outperform the other one. But overall, our target is like 20% plus.

Thank you, Mr. Ambassador.

Thank you. The next question is from the line of Abdul Kadir Puranwala from ICIC Securities. Please go ahead.

Yeah, hi. Thank you for the opportunity. So, my first question is with regards to the Jammu facility. Now that, you know, we are talking quarterly revenues of... 85 to 90 crores. Now, should we see this as a sustainable number for quarters ahead?

So, Abdul, you are talking about the ramp-up plan of Jammu in coming quarter? Yes, yes. Yeah, yes, Abdul, as we submitted in our earlier part also, we are very much positive on how Jammu is ramping up right from our audits, validations, the visits of our marquee customers to Jammu facility, how our capability and capacity is building up, how we are able to showcase our capabilities to our customers, the peak certification that we have received. So, yes, the overall trajectory is looking good, and next year, 20% growth. That we are projecting at an entity level or at a group level. So, yes, Jammu is going to be playing a good part in it.

Okay. Okay. Understood. And then for next year, how should we look at your margins, considering that your base business is already clocking 80-19% EBITDA margin. I know this was for this quarter perspective. But then if the EBITDA accretion starts to happen from Jammu, then how should we look at your EBITDA margins for next year?

So, let's say, if Jammu starts contributing in the margin, then in the near term, it should, let's say, improve. Till we take some other goal strategy on goal that can be the prenatal negative, right? Till then, the margin should improve.

So, for the nine-month number, can you provide your cash flow from operations for the nine months of fiscal 26?

So if I talk about our operating cash flow before working capital changes in tax, so it was around 182 crores at a group level, which has been well used to support our growth around 40% over year on year and other normal expenditures.

Thank you. Thank you.

Thank you. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. The next question is from the line of Saket from Saagri Capitals. Please go ahead.

Hi. Am I audible?

Yes, you are audible.

Yeah, thanks for the opportunity and congratulations for an excellent set. Sir, excluding Jammu, if I look at the CDMO business, so what was the volume growth? YOY, maybe I missed out, I think you said some number, but maybe it's not very clear. Because I think the price growth was negative. So any color on the volume growth X of Jammu?

So, as you said, Sakeet, on an year-on-year basis, at Jammu, our volume growth is a range of around 6% to 10%.

Okay, 6% to 10%. And, sir, Saron is part of CDMO or is it part of branded generics?

Majority is part of CDMO.

Okay. And, sir, today, out of, say, branded generics, what would be the share of exports and what would be the share of domestic?

So, normally, we prefer not to go to that. So, we prefer to report our revenues on CDM at a brand-based level.

Fair point, sir. And, sir, you must have gotten some tailwind of API prices in the branded business, right? Because there the API prices, lowering API prices helps your margins. Is that a fair assumption?

So, basically, we are not the friendly, integrated company. In our branded generics, there are two categories. One is our trade generics and one is our own brand export business fit in that category. And normally, there also the pricing of our product is based on the API prices.

Okay, fair point, sir. Fair point. Yeah. Oh, okay. Yeah. Thanks, sir. Thanks for the opportunity and appreciate your answers. Thank you.

Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead.

Thanks for the opportunity again. Sir, if you can talk about, you know, broadly, what will be the margin differences between the branded generics and our CDMO business?

Normally, Ankit, we normally do not track margins at our business area level. Thank you. Okay.

But any broad range, like, branded will have, like, how much more margins compared? Will it be, like, 2-3-4% higher?

Well, I would prefer not to provide it because we don't track these numbers on that objective level. Thank you.

Okay, okay. On Sharon, if you can tell us how is that, how has been the performance of Sharon for this quarter, how is it performing, how has been the performance in QT United?

Yes. So, as we said earlier, also, all business area has kicked in over this performance for quarter three F526. And yes, Sharon has also been a good part of our overall growth. Since from its acquisition and as of now, it has been contributing and well on both top line as well as bottom line part.

Okay. Okay. Thank you.

Thank you.

Thank you. The next question is from the line of Sujal from Obtune Wealth Advisors. Please go ahead.

Congratulations, first of all, in your numbers. Am I audible?

Yes, sir.

So, sir, I just want to ask about that you, as you said, you decide the prices according to the API prices. Are you able to pass on to this on customers, or is it just like, or how does it impact to overall margins?

So generally, as we already covered, our business is based on the pricing of the API. So generally, we don't hit on margin based on the API, whether it's going up or going down.

Okay, sir.

And, sir, second question on the part of side of my competition type. So on the CDMO part of business, there's a little bit competition intensity is getting increased. So can you share your insights on that part, sir?

So, India is a very huge market. If you're talking about the domestic CDMO market, right, we have a very large market in pharmaceutical also, right, and that will grow at a healthy growth rate. So, everyone has the space to grow based on their own capability and capacity.

Wilkerson, thank you. It's so much fun.

Thank you. Anyone who wishes to ask a question may press star and one on their touchtone telephone. Ladies and gentlemen, that was the last question for today. On behalf of NOCAP Tabs Limited that concludes this conference, thank you for joining us and you may now disconnect your lines.