Anlon Healthcare Limited (AHCL) Q1 2027 Earnings Call Transcript

Moderator: Ladies and gentlemen, good evening and welcome to Anlon Healthcare Limited Q1 FY27 conference call hosted by ConfideLeap Partners. As a reminder, all par cipant lines will be in the listen-only mode and there will be an opportunity for you to ask the ques on a er the opening remark concludes. Please note the conference has been recorded. Before we begin, I would like to point out that this conference may contain forward-looking statements about a company which are based upon the belief, opinion, and expecta on of a company as of the date of the call. This statement does not guarantee the future performance of a company and it may involve risks and uncertain es that are difficult to predict. At ConfideLeap Partners, we represent the investor rela on for Anlon Healthcare Limited. The company is represented by Mr. Punit Rasadia, who is the chairman and managing director. I would now like to hand over the call to Mr. Punit Ji for his opening remark. Thank you, and over to you, sir. I would request everyone to be on call. We will be connec ng with the management in a couple of minutes. Thank you. Punit Rasadia: Am I audible? Moderator: Yes. Yes, Punit Ji, you can start with your opening remark. You're audible. Punit Rasadia: Good evening, everyone and warm welcome to Anlon Healthcare Limited Q1 FY27 earnings conference call. Thank you all for joining us today. Before I discuss our financial performance, I would like to address our EBITDA margin for the quarter as we believe it is important to provide context upfront. During Q1 FY27, our EBITDA margin moderated to approximately 17%, primarily due to two factors. First, we witnessed a sharp increase in a raw material price during the quarter due to global geopoli cal situa on, which temporarily impacted our cost structure. Second, following the acquisi on of Remember India Health links, its opera ng expense are now consolidated to Anlon's financial. Remember India Health links is currently in an investment and turnaround phase as we build and strengthen the business. This has also weighted our own consolidated margin in the near terms. We've already ini ated appropriate price revisions to offset the higher input cost and remain focused on driving opera onal efficiencies across the group. As raw material prices stabilize and the benefits of integra on begins to flow through, we expect EBITDA margins to gradually recover, and we are working towards stabilizing them in the 25% to 30% range during Q2 and Q3 of FY27. With the context, let me take you through our Q1 FY27 performance. On a consolidated basis, total income for a quarter stood at 87.62 crore compared to 33.31 crore in Q1 FY26, represen ng a significant increase driven by largely the consolida on of our recent acquisi on along with organic growth in our core businesses. EBITDA for the quarter stood at 15.65 crore compared to 6.26 crore in the corresponding quarter last year, while profit a er tax stood at 8.28 crore compared to 3.55 crore in Q1 FY26. While the EBITDA margin moderate for the reason I just outlined, the underlying scale of our business has expanded meaningfully. Let me now turn to the strategic development during the quarter, which are important in understanding the broader transforma on underway at Anlon. Q1 FY27 was transforma onal quarter for Anlon in terms of how we are reshaping and broadening the business. During the quarter, we completed the acquisi on of Remember India Health links, acquiring a 63.98% stake, with the transac on which was completed on 8th of the May 2026. Remember India Health links is engaged in the manufacturing and marke ng of finished pharmaceu cal formula on including tablet, capsule, and ointment, which provides us access to over 30 formula on dossiers as

well. This is an important step in Anlon's evolu on as it marks our entry into finished dosage formula on. Un l now, our focus has largely been on pharmaceu cal intermediates and API, which serve as key input for the pharmaceu cal formula on. With this acquisi on, we are beginning to transi on from the API-focused manufacturer into a more integrated pharmaceu cal company with a presence across B2B APIs, domes c retail and hospital markets. Over me, we believe this will provide us a broader pla orm and strengthen our marke ng posi on. Alongside this, we con nue to advance our capacity expansion and backward integra on strategy. Apiqo Organics, which is now a subsidiary of Anlon, strengthens our backward integra on capabili es for cri cal pharmaceu cal intermediate as well as our upcoming industrial and fine chemical business as well. Apiqo provides us with a ready and established manufacturing pla orm, suppor ng improved cost compe veness and supply security, while Bizo c Lifesciences provides a ready-to-operate manufacturing facility reducing the execu on risk and meliness associated with se ng up greenfield capacity while further strengthening our regulatory readiness. Taken together, this acquisi on has helped expand our installed manufacturing capacity to approximately 1400 to 1600 metric ton per annum. To summarize our strategic direc on, Anlon is evolving from a company focused primarily on pharmaceu cal intermediates and API into a broader integrated pharmaceu cal pla orm spanning intermediates, APIs, custom manufacturing, finished dosage formula on, and industrial and fine chemical. Each acquisi on has been undertaken with a clear strategic purpose for backward integra on and cost compe veness through Apiqo, faster capacity scale-up through Bizo c and expansion across the pharmaceu cal value chain through Remember Health links. We remain confident in our mid-term growth trajectory and con nue to work towards our target approximately 30% revenue CAGR over the next three years, supported by our expanded manufacturing pla orm, regulatory capabili es, diversified product por olio, and acquisi on we have undertaken. As men oned earlier, we expect EBITDA margins to gradually normalize into 25% to 30% range as raw material cost stabilize and integra on benefit occurs. To conclude, Q1 FY27 was a quarter of significant strategic transforma on for Anlon. We have taken concrete steps to broaden our pla orm beyond intermediates and API. While this transforma on has resulted in some near-term pressure on margins, we believe these ini a ves meaningfully strengthen our long-term compe veness posi on, create a strong founda on for sustainable growth. We remain commi ed to execu ng our strategy with a discipline and keeping all our stakeholder update on our progress. With this, I would now like to open the floor for ques on and answers. Moderator: Par cipants are requested to raise their hand for their ques on for their ques on. Also, one can request the ques on in the ques on box. We will wait for two minutes for the queue to form. Next ques on is from Mr. Deepak Poddar. Sir, please introduce yourself and unmute. Deepak Poddar: Yeah, am I audible? Moderator: Yes, sir. Deepak Poddar: Yeah, thank you very much for this opportunity. Sir, just wanted to understand first up on your margins. I mean, you men oned that because of a couple of things, I mean, the raw material prices and the acquisi on so their cost also is now coming to Anlon. So, as we speak, have the RM prices normalized, so what's the current situa on? Punit Rasadia: No, RM prices are s ll not normalized. See, the prices are almost increased more than two to three mes and it is already there only. So, I think improvisa on can be only expected a er the normaliza on of this war situa on, stability in the prices of crude and stability in the price of dollar. But that is not expected in near future, but on the other part, we are already able to increase our cost of the finished product and we have convinced our customer to pay for it. So it will be, I think, reflected in the next one or two quarters. Deepak Poddar: Okay, understood. So, the prices have increased what, two to three mes, raw material prices?

Punit Rasadia: Depend see, whatever the raw materials basically solvents from petroleum products or products dependent on the petroleum raw materials, it is increased huge. So minimum two to three mes compared to the pre-war me. Deepak Poddar: Like 100 rupees has become 200 to 300? Punit Rasadia: Yeah, you can say like the methanol was 22 rupees, now it is almost 58 to 60 rupees. Deepak Poddar: Oh. Punit Rasadia: Same like in the product which is derived from the methanol, that all the prices depend on that. There are so many raw materials which is cut from the basic petrochemical solvents and that affects on the product's raw material prices. Deepak Poddar: Understood. And now, the EBITDA margin normaliza on you expect to happen by which quarter? I mean, I mean some benefit will see in second quarter? Punit Rasadia: Mostly, we are expec ng by Q3 it will be normalized, because we are already ge ng the be er prices in our product, so it will be surely reflected in H1 result as well. Deepak Poddar: Okay, so by third quarter you expect the margins to normalize. But 2Q will see some benefit of this, your increased your finished product prices? Punit Rasadia: So, it is basically not any benefit, because it is the domino effect like that our raw material price are increased and we have already increased our finished product price. So, in terms of the percentage, it will remain the same. Deepak Poddar: Okay. So 2Q EBITDA margin will likely to be similar to 1Q EBITDA margins. Punit Rasadia: Deepak Ji, can you pardon, actually I'm not able to hear you clearly. Deepak Poddar: Yeah, so your second quarter margins will be similar to your first quarter margins? Punit Rasadia: I think it would be be er than the first quarter. Deepak Poddar: Be er than. Yeah, so it would be be er than the 1Q margin. Punit Rasadia: Yes, exactly. Deepak Poddar: Okay, understood. And on in terms of your revenue growth, I mean now already we have done about 87-88 crores, right? And we are talking about 30% growth. So, isn't that very conserva ve? I mean, at 30% we are only at what, 220 to 225 crores kind of a revenue for FY27. So how should one look at your FY27 revenue growth? Punit Rasadia: See, FY27 we are expec ng as even last earnings call and last mee ng also men oned that we are expec ng somewhere around between 350 to 400 CR. Deepak Poddar: 350 to 400 crores, right? Punit Rasadia: Yes.

Deepak Poddar: Okay, understood. And given our capacity, now including everything, Anlon, your Apiqo, and Bizo c, total capacity is right now 1400 to 1600, and we have men oned the capacity u liza on currently we are running at is what 62%? Punit Rasadia: I think that is somewhere around 65 to 70%. Deepak Poddar: Okay. So, what would be the total revenue poten al? I mean, if we op mally u lize our facili es, what can be the op mal revenue we can achieve? Punit Rasadia: I think that is what we are expec ng between 350 to 400 CR. Deepak Poddar: No, okay. At the peak level, right? Punit Rasadia: Yeah, I'm just trying to understand peak level what can be the revenue poten al from your current assets, yeah. Peak level it would be somewhere around 350 to 400 CR. That is what I'm explaining. Op mum 65 to 67 what we are using right now. Deepak Poddar: Okay, that's the op mum revenue. Punit Rasadia: Yes. Deepak Poddar: Okay, okay. So, what will drive your growth in FY28 next year? Punit Rasadia: See, as we have already started the expansion ac vity at Anlon site, so if it will be completed as per our schedule without any delay, then we are expec ng somewhere around 700 CR in FY28. Deepak Poddar: 700. Now, so can you throw some more light what is the expansion plan at the Anlon side? Punit Rasadia: Expansion, yes, we are already doing the expansion for the around 130 CR of the new CAPEX. Deepak Poddar: Okay. And how much capacity will be coming and where we are doing this? Punit Rasadia: So that will be the standalone Anlon's capacity would be somewhere around 1600 metric ton. Deepak Poddar: From current which is 400? Punit Rasadia: Total to 400 to total, so it will be new added around 1200. Deepak Poddar: Ah, so we are adding around 1200 metric ton. Punit Rasadia: Yes. Deepak Poddar: So, and by when we expect to commission this this capacity? Punit Rasadia: See, construc on and everything is already lined up and we are expec ng at least by Q1 of FY28 it should be if everything goes well because there are so many statutory approvals are also there. We are ready with that, but if something happened which is not in our control and if it is delayed, then it will be delayed otherwise everything is on track. Deepak Poddar: Understand. So, this new capacity is coming by 1Q of FY28.

Punit Rasadia: Yes. Deepak Poddar: So just men oned that the current capacity which includes all the acquisi on is currently running at op mum u liza on of what 65%, right? So ideally the revenue that we have achieved in this quarter which was close to 90 crores, right? So, if we annualize it, we come to around that 350 to 400 range. It would be 360, so ideally that would be... Punit Rasadia: Deepak Ji, I sorry to interrupt, but see in pharma or chemical, it is not right measurement to measure the quarter-on-quarter basis. Be er I suggest that you'll compare with the H1 or H2 basis. Deepak Poddar: Okay. Punit Rasadia: Yeah. Because see, this quarter we closed with the 87. So, if you consolidated, you'll just compare with the H1, then we'll have the much be er figure than that. Deepak Poddar: Correct, correct. No, I was just trying to understand in terms of u liza on. I mean... Punit Rasadia: No, why because I'm telling you, see depend on product to product the output capacity, the produc on cycle and everything is depended on product and all those things. So, quarter on quarter even output is also not right criteria to measure. Deepak Poddar: Okay, okay. Punit Rasadia: Because some of the product will take 15 to 18 days, some of my product will take around 40 days to complete the produc on cycle. So, if I am star ng produc on in month of the June, then its output will come in the July or August, so sales and revenue will be reflected in the second quarter. Deepak Poddar: Very clear, very clear. I mean, very clear. Just last thing from my side. This quarter what was the revenue contribu on from Panoli and Morbi? 1Q? Punit Rasadia: You mean in that consolida on? Deepak Poddar: Yes, yeah. I mean out of... Punit Rasadia: See, revenue from the Bizo c it is somewhere around 12 CR. Deepak Poddar: Uh-huh. Punit Rasadia: And from the Apiqo it is somewhere around 45 CR. Deepak Poddar: 45 CR. Punit Rasadia: Yeah. And Anlon is somewhere around 32 CR. Deepak Poddar: Anlon is 32. Punit Rasadia: 32 yeah. Deepak Poddar: And we hold around 68% stake in Apiqo and 57% stake in Bizo c.

Punit Rasadia: Yeah, but we have already started to do the 100 making its 100% wholly own subsidiary by the way of share swapping. So that process is already going on. So, I think by end of the Q2 we'll complete it. Deepak Poddar: By end of Q2. And we are looking to have 100% stake in both of these? Punit Rasadia: Yeah, we'll make the 100% subsidiary of Anlon. Deepak Poddar: End of 2Q. Punit Rasadia: Yeah. The we have already in mated to exchange as well in last board mee ng. So, the process is already ini ated. Deepak Poddar: Okay, okay. Fair point. I mean, that would be from my side would like to wish you all the luck. Punit Rasadia: Okay, Deepak Ji. Thank you. Moderator: Thank you. Just a quick reminder to everyone, if you have any ques on, please raise your hand using the reac on tab. Also, one can request the ques on in the ques on box. Next, we have Mr. Vikas Daga. Sir, you may unmute and introduce yourself. Next, we have Mr. Vaibhav Mishra. Vaibhav Mishra: Hello sir, good evening. Sir, I just want to know whether we are facing some, I mean problem in passing on the raw material prices to our customers because our margins have been con nuously degrading from the last two quarters, I think. In the last quarter itself we guided that raw material price hikes have been done from our side and we will not go below 24-25% margins in Q1 at any cost in the last call. And call before that we were sure that we will maintain around 30% plus kind of margins. So, while our I mean many pharma companies are, you know, able to pass on the prices and their margins are I think more or less intact, but we are facing con nuous pressure from, you know, customer so we are not I mean maintaining our margins. So, what is the reason I mean for this con nuous decline in the margins and I mean what can we expect the consolidator margins for the whole FY27, I mean to know that what kind of margins we can see in? Punit Rasadia: See, basically there are two things. In Q1 when we have made the last call it was for the Q4 of FY26. At that me, we were not having the result of the Q1, but the price effect was there already from the April a er this war. So, the orders which were in our hand, which is already taken, in which we were not able to get the price factor, I mean, increase in the price from the customer because of our long-term rela on and all those things. So, in next order we are definitely able to get the be er prices from that, but the what because see, generally the solvent and chemical prices was changing every day. And now the situa on is that it is changing every hour, every two hours they are changing the price which is not in our control. So basically, the pressure or the price, the pressure on the EBITDA margin, that was the temporary and that is because of the geopoli cal situa on only. But I think in Q2, we are already able to maintain that EBITDA margin which is the sustainable and which was in line with our earlier expecta on somewhere around 25%. Now the second thing is that we have recently acquired the three companies. Out of that Bizo c and Apiqo is doing the quite good in terms of the profitability and in terms of the numbers. But the in the percentage wise when you see the EBITDA margin percentage wise it is also under pressure and which is giving the pressure to consolidated balance sheet. While in Remember we are s ll not able to means start the opera onal ac vity so maintenance and some of the upgrada on, valida on ac vity is going on. So, pressure on the EBITDA is because of that deprecia on and all those thing over there which is somewhere around 1.29 which affect on the PAT. But we are confident that within next one or two quarters will give the same similar EBITDA margin somewhere around 25 to 27%. Vaibhav Mishra: Okay sir. So, about sir Remember India acquisi on, I mean what can what kind of number can we expect from Remember India in our revenue contribu on this year and the FY28?

Punit Rasadia: This year see, we are not considering any numbers in our earlier expected figures of 380 to 400 CR because see we are planning for the CDMO projects as well as some of the regulatory market access along with some approval from the regulatory agencies. So, we are trying to get it get it first so at least by Q3 we are not expec ng any revenue from the Remember India. But we are expec ng some WHO-PQ approval by end of this calendar year and from next year or next financial year or maybe last quarter of FY27 we are expec ng revenue. So, I think it is li le bit early for me to give you the any expected figure for the next year's revenue. So maybe in Q2 I'll be able to give the exact figure with the projec on. Vaibhav Mishra: And sir margins of Remember India will be around 25-30% or some change? Punit Rasadia: Yeah, that would be be er somewhere more than the 25% as well. Because being a formula on company or formula on products, we have our own backward API supply chain as well along with our customer where we'll get the be er prices compared to API. So that will be more than 25%. Vaibhav Mishra: All right. So FY27 on the whole we can expect 25% on consolidated level, correct? Punit Rasadia: Yeah, yeah. Vaibhav Mishra: Okay. And sir, I just want to understand the seasonality of our business like we are H1 heavy or H2 heavy because last year some consolida on also happened of Apiqo and Bizo c so it's not clear from the, you know, numbers that we are which which half? Punit Rasadia: See, I think be er H1 and H2 you will compare then you will get the exact clarity for that. Vaibhav Mishra: Yes, so which one is heavier sir? H1 or H2 for us normally? Punit Rasadia: Yeah, generally H1 is li le bit lower than the H2. Vaibhav Mishra: All right. All right. 45-55 kind of sir, correct? Punit Rasadia: Yes, yes. Vaibhav Mishra: Okay, okay. And sir one ques on regarding CDMO molecules, I think one was expected commercial supply by Q3 and other two molecules by Q4 or Q1 FY28? Punit Rasadia: Yeah, we are already in line with that, yeah. Because we are in line with that. We don't have any new update from the last mee ng. Vaibhav Mishra: And sir any update on the that fine chemical and like new ver cal that industrial and fine chemical? Punit Rasadia: Yeah, that in Apiqo Organics that we are doing is industrial and fine chemical as well and that we are already fully booked and you can say like the overbooked. So, there is no any issues with the any business or anything. Vaibhav Mishra: So, sir out of these 380 crores, I mean, what kind of contribu on do you expect from this fine chemical and specialty chemical kind of? Punit Rasadia: Somewhere around 150 CR. Between 120 to 150. Vaibhav Mishra: Okay, okay. It's already a big part of, you know, our yeah. Okay thank you sir, thank you all the best for the future sir.

Punit Rasadia: Thank you. Moderator: Thank you. Just a quick reminder to everyone, if you have any ques on, please raise your hand using the reac on tab. Also, one can request their ques ons in the ques on box. Next, we have Mr. Paras Chheda. Sir, you can unmute and introduce yourself sir. Paras Chheda: Thank you, sir, for this opportunity and congratula ons for the strong set of results. Sir, just one, you know, couple of queries actually. We have this for FY27 we saw this Q1 EBITDA margins that came under pressure. So, you know, trying to understand for, you know, for FY27, out of the three, I mean what will be the contribu on in terms of revenue from Bizo c, Apiqo and this Remember India, and Remember India I think is in very early stages. But, you know, Remember India what will be the revenue contribu on from these three subsidiaries to the 350 to 400 crore overall revenue forecast? And what consolidated EBITDA margins do we project now having seen the Q1 EBITDA margins what we saw? And can we also, sir, you know, indicate similar contribu on and EBITDA margins for FY28, sir? Punit Rasadia: Yeah, Paras Ji, I just men oned in last query that Bizo c's contribu on in that Q1 consolida on is somewhere around 11.5 CR, Apiqo is somewhere around 45 CR. Paras Chheda: No, sir, I was looking for full year FY27 and FY28. Punit Rasadia: FY27 I cannot comment as of now on FY28, but FY27 is somewhere around between 120 to 150 CR from Apiqo, the similar around 180 CR from the Anlon and around 60 CR from the Bizo c. Remember we are not considering anything yet as we are at the upgrada on and valida on stages ll the Q3. So maybe in earnings call of the Q2 I'll be able to give you the exact details with the exact projec on. Paras Chheda: And what consolidated EBITDA margins do you now project sir? Punit Rasadia: See we are expec ng that by H1 it would be normalized somewhere around 22 to 25 CR and we are expec ng the previously men oned the 25 to 27% EBITDA margin in the FY27. So, it will not be much affected on that, it is just the Q1 due to sudden rise in the raw material prices and all those things. Paras Chheda: Right, sir. So, for FY27 can we safely assume 23 to 25% EBITDA margins or slightly lower? Punit Rasadia: Yeah, yeah, definitely. No, we'll definitely get the somewhere around 25%. Paras Chheda: Understood. And probably even for FY28 should we expect similar sort of EBITDA margins, sir? Punit Rasadia: For the FY28? Yeah, we'll try to maintain the same wavelength and we'll try to get it be er than that as we'll include that formula on revenue also over there. Paras Chheda: Sir just one more thing, you know, I mean there is a disrup on in oil prices suddenly shoot up. Is it a feature that more or less we will be impacted every me, you know, oil vola lity con nues on the upside because most of the me we will be locking the prices and the raw material if it is not hedged, we could be open to that. So, do we sort of also expect that, you know, if the oil prices stay vola le margins could be suscep ble or vulnerable? Punit Rasadia: See, prices of the raw material basically most of these solvents are from the petroleum products. So, all prices depend on the petroleum and crude prices even with the dollar and currency fluctua on is also very high from 91 to 96 within a month. Freight cost is one of the factors. So that also affect on the prices. So directly we are not connected with the crude price and all those things but yes, indirectly our raw material in most of the

API manufacturing around 40% cost is from the solvents and petroleum products apart from our key star ng material and raw material. So, it always depends on the prices of the solvent as well. Paras Chheda: Right. So whenever, you know, there is a, you know, disrup on oil price shock in our parlance, broadly... Punit Rasadia: Paras Ji, this is not Paras Ji, this is not a regular prac ce. I think we are doing this business since the last 10 years and it's a once in a life me like situa on, it's not like that suddenly it is increased so much. Paras Chheda: No, no, I understand, sir, I'm just saying just par cularly for this year and, you know, we have a different administra on in the US and so on and so forth. So, I'm just trying to, you know, understand be er that if oil vola lity is high, we might face pressure on the raw material prices. It is because the product prices, you know, are basically fixed for us. So those quarters can get bit vulnerable. Punit Rasadia: See Paras Ji, one more problem is that, see when you are going to buy the raw materials, you have to pay the as per the current market price. But while you are maintaining the rela on with your customers, because we are dealing in the B2B business, so you hardly have 10 to 15 customers. So, you cannot go to your customer every day and ask them to change the prices depend on the prices of crude. At certain level you have to maintain your credibility also, so if your margin is ge ng affected then also, we have to supply. We have already supplied in the month of April, our previous commitment and as per the previous order, then we'll have we have asked to customer to increase the price because it is not workable to us. So, if you have to take the heat, then there is no other way to come out of that. Because we are not in that kind of FMCG product line of things that you'll go and increase the price. Paras Chheda: No, understood, sir, understood. And sir, for FY27 you said that op mum or peak capacity u liza on we will be reaching 350-400 crores. Now the new 1200 capacity that will come in next year, what kind of and you said about 700 crores, so shall we assume that all the incremental 300 crores or poten ally will come from the new greenfield capacity that's probably coming online next year? Or is there incremental revenue that these three... Punit Rasadia: See, Paras Ji, I got your ques on. Paras Ji, see once we'll have the new capacity then it is not like that, we'll start using 100% within next one year or two years. Because what capacity we are building out of that we are establishing new eight cleanliness so we can run the eight APIs simultaneously. This is the one thing and second thing is that when you're going for the approval and all those things, so ini ally whatever the projec on we are taking that is we are considering around 50 to 60% u liza on only. Paras Chheda: And basis that we are saying about 700 crore poten al could be there for next year. Punit Rasadia: Yes. Paras Chheda: Right. And sir Remember India when do you expect that to commercially begin opera ons and what kind of peak EBITDA can we expect from that... Punit Rasadia: Paras Ji, I think you we are planning from the Q4. Paras Chheda: Okay. And what peak revenue can we expect from that? Punit Rasadia: Paras Ji, I think I'll able to convey to all these stakeholders in Q2. Paras Chheda: Understood.

Punit Rasadia: Because we are just exploring so many op ons so it is li le bit early for us to comment on that anything. Paras Chheda: Understood sir. Fair enough, sir. I think that's good enough on this. Thank you, thank you so much, sir. Punit Rasadia: Okay, Paras Ji. Thank you. Moderator: Thank you. Just a quick reminder to everyone, if you have any ques on, please raise your hand using the reac on tab. Also, one can request their ques ons in the ques on box. Next, we have online Mr. Ashish Parikh. Sir, you can unmute yourself and introduce yourself. Over to you, Ashish sir. Ashish Parikh: Am I audible, sir? Punit Rasadia: Yeah, yeah, Ashish. Ashish Parikh: Sir, good a ernoon. Congratula ons on the good numbers. I understand that this quarter was quite challenging due to the issues with the shipping lines. Despite that, we did not compromise on revenue, and our revenue has grown well. So, once these conflicts are resolved, can we expect the company to gradually return to a steady-state EBITDA margin of around 33%?

Punit Rasadia: 33% is Ashish Ji not possible as of now because we are doing so many ac vi es together like we are in opera ng in industrial and file chemicals where profitability or EBITDA margin is not as much as higher like the pharma. So, on the consolida on basis we are expec ng between 25 to 28%. Ashish Parikh: Fair enough, sir. Absolutely, that makes sense, especially since we are also expanding. My second ques on is regarding the expansion... Punit Rasadia: Yeah, and second thing is that we are increasing our team, we are bringing the professional in the system. So, our opera ng cost is also increasing. Ashish Parikh: Okay, sir. Secondly, we are also opening subsidiaries and exploring different areas, and we have made three acquisi ons as well. So, sir, are you planning any further acquisi ons, or would you prefer to first consolidate these acquisi ons properly? Punit Rasadia: See Ashish Ji, you can see the matrix. Apiqo is independently in sustainable mode with the Q1 around 40 to 45 CR of the revenue with the be er profitability. So, we are exploring to increase the capacity over there because we have some more business opportunity in this area. So independently that Apiqo can be sustainable and we don't need to worry on that, we have to just focus to streamline the things opera on and compliance on that. The same way in the Bizo c, the capacity what we are using, that is already going on. It is also a profitable with the revenue of somewhere around 12 CR in Q1. So Anlon is already going on. So, remember we are having the commi ed business from our partners. So, we are just upgrading the things as per the regulatory compliances so and we are confident that within the for means in the first year itself it will be the profitable with the some reasonably good revenue. So, whatever the new this subsidiary we are establishing, that is in line with the pharma line the pep des or biological products, but it will take around one to two years for the establishing or new construc on and new ac vi es. Hmm. So, I think in terms of the all the business, we are with the least leverage and within the control, we are not having any huge debt on the any of the companies. So, we are in the very much be er situa on as of now and s ll we are exploring if is any good opportunity will come for the inorganic growth with which will align with our strategy and all those thing then definitely, we'll see for that.

Ashish Parikh: Okay, sir. Regarding our revenue guidance of ₹400 crore, are we maintaining the ₹400 crore revenue guidance for FY27? Punit Rasadia: Yeah, yeah. See first Q1 we are closed somewhere around 87 CR. Q2 we will be in line with that because that's why I'll just explain that be er to compare the H1 H2 instead of the quarter-on-quarter basis. So, on the basis of the figure of the H1 you'll be get the li le bit comfort for our guidance of 380 to 400 CR. Ashish Parikh: Okay sir. Sir we were launching pep des, cosme c pep des and also that compe Volini. Two products we were launching. So, any update on those two products?

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Punit Rasadia: Pep de for manufacturing we have already incorporated Anlon Biologics Private Limited, which will be the subsidiary of Anlon. Basic planning for the construc on and all these ac vi es is already going on, so mostly within two months we'll start the commencement ac vity and everything. Most of the product is iden fied, product is already developed at the R&D level. So that is already as per the plan and by I guess FY28 we'll start the over own manufacturing of the pep des with the human cosme c and Neutra-all as well. The same way for the pain management ointment, that procedure is started to submit to the DCGI because that will be the first me in India launch for that kind of product. So that is we are expec ng within one year all these approvals from the DCGI and will start the manufacture. And Remember India's acquisi on was also one of the strategic parts of that so we'll don't depend on any third-party manufacturing and we'll do it in-house itself. Ashish Parikh: Sir, we are also working towards developing CDMO products. Are there any breakthrough innova ve products in the pipeline? Punit Rasadia: Sorry? Ashish Parikh: We were also working towards CDMO products, four three four CDMO innovator products. Yes. Any break through on them sir? Punit Rasadia: As of now it is the same status what we have discussed in last earnings call in the month of the May. So, we are expec ng at least by a er Q3 because all these process valida ons are already going on. Ashish Parikh: That's all from my side sir. Thank you so much. Punit Rasadia: Okay, Paras Ji. Moderator: Thank you. Just a quick reminder to everyone, if you have any ques on, please raise your hand using the reac on tab. Also, one would request their ques ons in the ques on box. Next, we have Mr. Gaurav Shukla sir. Sir, you may unmute yourself and introduce yourself. Gaurav Shukla: Congratula ons sir for good set of numbers and thanks for giving me opportunity. Sir, in last con call you have said that you are focusing on seven new API across addi onal therapeu c categories. Sir what are the situa on of these? Punit Rasadia: Yeah, that APIs we have planned to file within this FY27. So, their compila on of the DMF, DMF filing ac vity is already going on. So, I think it is not like that every month there will be any update on the filing. So, we are on the track to file the new seven DMFs within this FY27. Gaurav Shukla: Okay, sir. And sir, your PPT men ons a u liza on rate of 62.37%. So, sir, is this the maximum u liza on level, and... Punit Rasadia: Sir, can you pardon? I missed your voice.

Gaurav Shukla: Sir am I audible sir? Punit Rasadia: Yeah, you are audible now. Gaurav Shukla: Sir capacity u liza on in your PPT shows 62.37%. Punit Rasadia: Yeah, on the consolida on basis. Gaurav Shukla: Yes, sir. Is this the maximum u liza on level, or can it be increased further? That's what I wanted to ask. Punit Rasadia: No, it can be increased, right now we are just trying to increase the capacity at the Apiqo as well because Anlon standalone capacity we are at the peak level. So, there is no possibility to increase any produc on over there that's why we are going for the organic expansion. But yes, in Bizo c and Apiqo it can be increased, but it will not be like that from 65 to 85 we'll do it within this year. So, it will be gradually increased. Gaurav Shukla: Okay, sir. In the PPT, you have men oned a capacity of 1,400 to 1,600 metric tonnes per annum a er the expansion. So, sir, what is the current capacity as of the end of June, a er Q1 FY27? Punit Rasadia: See that is the capacity will not be changed because we have not expanded anything. So, it is the 1400 to 1600 itself. I didn't get your ques on exactly. Gaurav Shukla: "Sir, you men oned that a er the expansion, the capacity will be 1,400 to 1,600 metric tonnes per annum. Punit Rasadia: That is the stan- right now it is 400 only. Gaurav Shukla: Okay, sir. For fine chemicals and specialty chemicals, you are planning an expansion of ₹150 crore, sir? So, this... Punit Rasadia: No, no, you are mixing up too many things. There has been no confirma on or any comment regarding the ₹150 crore expansion in fine chemicals. I think there is some confusion here. Could you please clarify the exact ques on? Gaurav Shukla: Sir, in response to the previous par cipant's ques on, you men oned that ₹150 crore would be invested in the expansion. So, regarding that, I wanted to ask whether... Punit Rasadia: That is for the Anlon's CAPEX which is expected somewhere around 130 CR. Gaurav Shukla: So, sir, do you have the funds available internally, or will you raise the money through debt or dilu on? Punit Rasadia: We are taking the debt of around 70 CR and remaining from the internal... Gaurav Shukla: Okay sir. That's from me sir. Thank you, sir. All the best sir. Punit Rasadia: Thank you.

Moderator: Thank you. Just a quick reminder to everyone, if you have any ques on, please raise your hand using the reac on tab. Next ques on we have from Mr. Anshul Sharma sir. Sir, please unmute yourself and ask your ques ons. Anshul Sharma: Yeah, hi. Thank you for the opportunity. Um, so my ques ons are regarding the recent subsidiaries that is Anlon Biologics and Anlon Medicare. So, I just wanted to understand like what is the purpose for both of these and how are you trying to expand in these? Punit Rasadia: See we want to keep the biological product separately from the Anlon Healthcare. So, for the manufacturing of the pep des, biosimilars, and some of the other bio products, we have established the new facility company called the Anlon Biologics, which will work separately from the Anlon Healthcare because the type of the product, type of the manufacturing strength, type of the people and products technology, that is completely different than what chemical products we are doing. That is one of the reasons because if we'll do the any regulatory applica on over there so we don't want to mix it with the Anlon Healthcare. So that is one of the reasons. And Anlon Medicare that we want to do it for the surgical implants for the trauma, spine and all those things, joints and everything, which will be the strategic part for our pain management whole ecosystem where our key products ketoprofen, loxoprofen is there in formula on also we are there. So that is not the chemical products or pharma products, that's why that company is also separately incorporated. Anshul Sharma: All right. Um and how does it align to your long-term vision and also can you tell like when can it start genera ng revenues possible? Punit Rasadia: See in Anlon Biologics I think we are expec ng by FY28 Q4 we'll start to generate the revenue and in Anlon Medicare at least by Q2 of FY28 we will start to generate the revenue. Anshul Sharma: Okay. That's helpful. Um yeah that's it from my side. Thank you so much. Punit Rasadia: Thank you. Moderator: Thank you. Just a quick reminder to everyone, if you have any ques on, please raise your hand using the reac on tab. Next, we have with us Mr. Majid Ahmed. Sir, please unmute yourself and ask your ques ons. Majid Ahmed: Am I audible now sir? Moderator: Yes, you're audible. You can ask your ques ons. Majid Ahmed: Yes sir. Uh thank you sir for the opportunity. And good set of numbers sir. Uh sir just want to understand especially uh we had very high working capital days and inventory days FY26. And now we also see some kind of margin compression as well. So, are we looking to compensate with be er uh you know, you know, so you know offse ng our inventory and improving our cash flows and how are we going about that sir in terms of improving the working capital? Punit Rasadia: Majid Ji, can you pardon your ques on because your voice is not audible. Majid Ahmed: Am I audible now sir? Punit Rasadia: Yeah, actually what last part you asked can you just pardon that? Majid Ahmed: No sir are we looking to sell some are we selling some of our inventory in any loss or anything sir? Are we...

Punit Rasadia: No, no no. We are not selling inventory. See basically why the inventory was there in the system because we are our development process is already going on. When you are going for the any process valida on or new product development, so for submi ng the DMF or prepara on of the DMF you have to take at least four batches of the process valida on. That product you cannot sell it immediately so it will stay in your inventory at least for 9 to 12 months. Once you'll get the DMF approval or confirma on from the customer then at that me for the valida on quan ty you can able to sell. So, if you'll con nue with your all the development ac vity then inventory will always remain in the system. But it will not affect on your cash flow or anything because that is basically investment. It is not an expense. The same thing is that whatever the EBITDA margin is reduced, that is because of the situa on geopoli cal situa on which is not in control of anyone. But we believe that we are already able to increase the ge ng the be er price from the customer and it will be benefited in the next quarter result. So, it is not a situa on for us to worry as of now or there is no as such any cash flow issue there. Majid Ahmed: Got it sir. Uh secondly sir going forward sir as we doing lot of integra on and others, so do we expect the vola lity of margins won't be there or the margin vola lity that we saw especially EBITDA margins I think majorly I saw the big vola lity was in the gross margins, right? EBITDA margins I think your opera ng expenses and employee cost was in balance. Uh but the concern I'm seeing is how are we looking to maintain the gross margins? Earlier it was around 42-43%. So, are we looking to sustain that going forward? I think or gross margin? Punit Rasadia: Gross margins yeah gross margin will definitely try to sustain the same with the 40-45%, but EBITDA margin I think 25 to 26% is fair enough for us to project as of now because whatever the price enhancement we are ge ng for, we are able to get the be er prices from the some of the other market also. So, in FY27 will definitely match the 25 to 27% EBITDA margin. Majid Ahmed: Got it sir. Uh sir this H1 do we expect a posi ve cash flow, posi ve opera ng cash flow to be? Punit Rasadia: Yeah, yeah definitely. We are working on that and we are able to get it done before end of this financial year. Majid Ahmed: Got it sir. Uh sir so the CAPEX you've said this year is for around 130 crores. This is what your CAPEX looks... Punit Rasadia: Yes, yes. That is for the expansion new CAPEX we are doing. Majid Ahmed: Uh yes sir, that's all from my end sir. Thank you, sir, thank you for the clarifying. Thank you so much. Punit Rasadia: Thank you. Moderator: Thank you. Just a quick reminder to everyone, if you have any ques on, please raise your hand using the reac on tab. Also, you can request the ques on in the ques on box. Next, we have with us Ms. Varsha Chandnani ma'am. Uh I would request you to unmute yourself and ask your ques on. Varsha Chandnani: Hi, uh can you hear me? Punit Rasadia: Yeah, yeah. Varsha Chandnani: Yeah, uh thank you for the opportunity, sir. I just wanted to understand, so I'm clear when it comes to revenue and EBITDA margin for FY27 and 28, but since you'll be also taking debt into considera on. Just wanted to understand, you know, what kind of PAT margin or what kind of PAT an investor would expect considering your interest and deprecia on cost as would go up. Thank you. Punit Rasadia: No debt what we are taking, that is for our new CAPEX, right?

Varsha Chandnani: Okay. No, so I just wanted to understand what's the PAT or PAT margin expected for FY27? Punit Rasadia: That is somewhere around I think 12 to 13%. Varsha Chandnani: And for FY28 sir? Punit Rasadia: I think that would be remain the same around 11 to 13%, 12-13%. Varsha Chandnani: Okay. Uh sir considering, you know, increase in margin that you're expec ng, uh is this 12 to 13% of PAT margin specially for FY28 is that conserva ve? Punit Rasadia: Right now, it is on the conserva ve side because see we are going for the new expansion. If due to some any statutory approval if it is delayed by one or two months, then these figure and projec on may be changed. So, we are just giving it on the conserva ve side 12 to 13%. Varsha Chandnani: Okay, so 12 to 13% for FY27 and 28, right? Punit Rasadia: Yes, yes. Varsha Chandnani: All right. Thank you so much. Moderator: Thank you. Just a quick reminder to everyone, if you have any ques on, please raise your hand using the reac on tab. Also, one would request their ques ons in the ques on box. Next, we have with us Mr. Viraj Shah. Sir, I would like to you to unmute yourself and ask your ques on. Viraj Shah: Am I audible? Moderator: Yes, you're audible, sir. Viraj Shah: Yes, so I just wanted to ask that what kind of interest are we bearing on this 70 crores debt? The interest cost, 8%, 10%? Punit Rasadia: It will be somewhere around 8.5 to 8.6%. Viraj Shah: 8.5. Okay sir. And second ques on is that on a standalone basis the Anlon sales declined to 30 CR from 33 CR. So, any comments on this? How we should look at this? The console numbers were good. Punit Rasadia: That figures that amount means standalone revenue figures will be improved in H1. So, as I men oned earlier that depends on the selec on of the product what we are doing on the campaign basis along with the regular products. So, the me cycle for the produc on if it is more than 30-45 days, that's why it will be not reflec ng in the figures of Q1. So, in H1 will definitely get the exact picture and it will be in line with the or maybe be er than the quarter on quarter or year on year basis. Viraj Shah: Okay, so sir last ques on is that what is the what is the standalone Anlon numbers that you predict for FY27? The top line. Punit Rasadia: It would be similar one because we are already running on the peak level. So around 180. Viraj Shah: 180 CR. Okay sir. Thank you.

Moderator: Thank you. Next, we have with us Mr. Paras Chheda having the follow-up ques on. I would now like to you to unmute yourself and ask the ques on. Paras Chheda: Thank you, sir, just once again. Sir, I wanted to know what will be what are the trade receivables as on, you know, end of July if we have the number? And, you know, what receivable receivable days do we expect by the end of FY27 and we were expec ng cash flow from opera ons to turn posi ve for FY27 eventually, so what do you expect on that now in light of the new circumstances? Punit Rasadia: So, you want to Paras Ji, you would like to know the trade receivable for FY27? Paras Chheda: No, no. Trade receivables as on 30th July. Punit Rasadia: 30th July, see I am not having the figures with me for the 30th July the exact trade receivable, but you can do one thing you can send the exact query to Parth and I'll just get the exact data from our finance team and I'll forward it to you. Paras Chheda: Sure, sir. And working your expected working capital and receivable days by the end of FY27 and do we expect the cash flows to turn posi ve now? Punit Rasadia: See generally it will be in line with the 170 to 180 days only, because see the normally that pharma industry, it works like that only. Because we are not in the FMCG or any other segment like category. So, working capital that days will be reduced to some of the 60-70 days because in our case the generally you can check with the any the peer industry or same kind of API manufacturing, the nominal 150-160 days it will be there. Paras Chheda: Okay so your trade receivable days would be sir, I mean any reduc on on that? Punit Rasadia: See I men oned even in previous mee ngs also, because generally the payment receivable as per the terms is 90 days, but we are able to get the payment somewhere around 130 to 135 days. Paras Chheda: Even with the any of the any rated standard companies from India also. So, my ques on was sir that, you know, whether we'll be cash flow posi ve for FY27 because, you know, in order to reach to say 700 crores of revenue for next year, we will almost need basis 180 days about 350 crores of working capital. So, by next year most likely we may need another fundraise or so is in my understanding, sir, what would be your expecta on? Punit Rasadia: See, we are because see generally now we have changed some of our working or the payment terms with the customer, we are strict on the payment and we are not working directly with the customer who is not making the payment on me. So that effect will come in the definitely in FY27 result and we have some of the products in which the be er profitability is already there. So, we are expec ng that any means with the best of our efforts will at least do it with some lower but posi ve case opera ng cash flow. Paras Chheda: Understood understood, sir. Fair enough. I'll mail, you know, and get some data from Parth as well. Thank you so much, sir. Moderator: Thank you. As there are no further ques on, we would now like the management to give the closing remark. Punit Rasadia: Yeah, thank you everyone. Thanks for the joining the Q1 FY27 earnings call of the Anlon Healthcare Limited and I would like to have some of the more queries. In case you have you can contact to the Parth and he'll forward to me and we'll happy to give you the revert on that.

Moderator: Thank you for joining Anlon Healthcare Limited Q1 conference call hosted by ConfideLeap Partners. Par cipants now may sign off. Thank you.