Beta Drugs Limited (BETA) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Beta Drugs Limited's Q4FY26 Earnings Conference Call, hosted by Philip Capital PCG. As a reminder, all participant clients will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance, you may enter star and zero on your touchstone telephone. Please note that this conference call is being recorded. I now hand the conference over to Mr. Sree Surya K from Philip Capital PCG Desk. Thank you and over to you, sir.

Thank you. Good afternoon, everyone. On behalf of Philip Capital Private Client System Group Desk, I welcome all of you to the Q4 and FI26 earnings conference call of beta drugs and tests.

From the management group, Mr. Ashutosh Shukla, Director of Sales and Marketing, Mr. Nippon Arora, BFO, and Ms. Rajini Brown, Committee Secretary.

I now hand over the conference to Mr. Rahul Bhattar for his opening remarks, and then we will open the floor for the question and answer session. Over to you, sir.

Thank you. Good afternoon, everyone. Let me take you to the key highlights of FY26. First, coming on to the financial analysis. Vita's net revenue grew from 368 crores to 396 crores. The gross margin grew from 52.71% to 55.52%. The EBITDA grew from 76.97 crores to 86.85 crores and in margins from 21.1% to 22.57%. The operating margin has also increased from 17.65% to 18.11%. The net profit, although, has been declined from 11.71% to 10.78%, but if we don't account the extraordinary expenses which has impacted the overall margin, the net profit margin would have been above 12.5%. Coming on to the sales segment-wise, different vertical-wise, the branded sales grew from 103 to 123 growth, that is by 20%. The CDMO sales grew from 148 to 149, that is by 1%. The only reasons of sales impact on CDMO is the platens, which we didn't supply in the last half year, which would otherwise have increased the CMO sales by 7%. The export sales have declined by 11%, that is from 79 to 71 crore. This is only because the tenders which were supposed to be awarded in FY26 got awarded in March 26. The tenders got delayed by almost 4 months. We are happy to announce the tenders have been awarded and the supply will be starting from the first quarter of FY27. We are on track to have a growth of more than 50% in exports in FY27. The derma sales have grown from 12.3 to 16.58 crores, that is almost 35%. The overall derma business has become EBITDA positive, and from here on, we will escalate the branded cosmetology business. The API business has grew from 20 crores to 25 crores, with an increase of 23%. The most important highlight is the Nipvin, the fertility business acquisition. Beta has acquired 66.1% stake with a total consideration of 69.4 crores at a valuation of 105 crores. We believe there are significant synergies between two companies, and the valuation will reflect the true potential of strategic partnership. The transaction is closed in April 26 and will be able to consolidate full-year revenue of Nibwin licenses for FY27. The promoter of Nibwin's has not diluted even a single share and will continue to run the business with full enthusiasm, along with BTAR's operational efficiencies and bandwidth. Now, discussing the segment-wise business. Coming on to our own brands, the branded oncology business has shown a growth of 20% as compared to last year, in spite of all challenges faced of non-supply of platens. There has been significant contributions from top three, four brands, and we are happy to announce that our one brand has touched almost 10 crores of sales last year. We launched two new NDDS in the last year and five new products. We will be launching around 20 to 25 new products in the coming three, four years. That includes the NDDS products as well. Today, we have 135 plus product in oncology and we have a remarkable presence across all the corporate hospitals, even the government institutions as well. Vita will continue to grow its own branded business by 20-25% in the coming 3-4 years. The credit goes to the sales team where each and every individual working has shown a tremendous temperament to take this business forward. The growth will be derived by new launches and deep penetration in different cities across India. Coming on to exports, although the last year's sales have shown decline, but we have laid a solid foundation, and we have put a lot of effort and focus on the export market. The tenders, which were supposed to be finalized in December or January, and the sales work took will happen in FY26, has postponed and now got awarded in March 27. The sales will start reflecting from FY27 first quarter onwards. Vita in last one and a half year has submitted more than 200 dosiers and expect new registrations close to 100 this year. These registrations will be across from different geographies. We are investing widely on the dosier submission of new molecules in the regulated markets. The human resource and HR department have been significantly added to keep up the pace of doses submission. Vita has already submitted three doses in EU for EU audit, which is scheduled in September 1st week of this year. Our target is to file maximum number of doses in the coming two years. The export, as per our forecast, for next three-four years will contribute 30% of the total revenue by FY30. This results, the results of the growth will start reflecting from QYFY27. Coming on to CDMO business, although the CDMO business has increased by only one person, but has majorly impacted by the platinum sales. Our key focus area, adding more players. We have recently added more CDMO partners and are focusing to build this sales growth for future growth. We have also shifted our high-margin products to the CMO partners, where we are adding more and more molecules with our existing partners. This move-off company will make more towards the growth of this vertical and will continue to make it 5-6% annual growth for the next 3-4 years. Coming on to the API business, the API business has shown a growth of 25%. The API plant has recently cleared audit of picks. This opens a lot of doors for export market. With a new intermediate facility of the API business, we'll get a big boost and dependency on the import of key KSNs will reduce significantly as all the KSNs will be manufactured in-house. The development has already started and we will make it commercialized by this year. Coming on to cosmetology and dermatology. The cosmetology and dermatology market is growing at a category of 14% annually. Our current covered market is between 3,500 to 4,000 crores. We have achieved a PCPM of 1.85 lakhs with 69 PMs on both and will grow up to 2.3 to 2.4 PCPM this year. The next 3 to 4 years cosmetology division will continue to grow at 30 to 40% annually. There have been recently launched fillers with exclusive tie-up with the European company. In April, we got approvals to market mesotherapy in India exclusively from Europe. We have also tied up exclusively to market innovative cosmetology products in India, where beta is in process to register more than 8 products from Europe. Coming on to the Nibwin fertility business. The current acquisition of beta in IVF therapy will enhance company's presence in one more super-speciality. Nivean is among the fastest-growing companies in IVF space and has a strong brand recall among doctors and IVF chains. We see tremendous synergies between two companies. We can improve the gross margin with having better connection in the market as we are present since the last four decades. We can enable Nibin to sell this product in the corporate hotel where we have worked. In N number of years, we can also leverage the manufacturing infrastructure in the near future. Nibyen will continue to grow at 30% for next 3 to 4 years and can be a brilliant branded business in all the verticals. To conclude, we accept that the growth expected last year was not at all encouraging for the entire company. For the last six months, we have made different strategies to overcome the challenges. Like these, we have found in the later half of FY26. With this, we have made a vision 2030 and also encultated this vision among the members of Beta family. We are working on many fronts that includes in licensing, marketing the novel products, make the new products, market the new first-made Genrex, not only in India, but globally also. The oncology business has got a huge potential globally, and we are working aggressively to attain the market share. This will enhance not only the revenue, but a great EBITDA and net profit. There will be a continuous effort from each and every individual to make Vision 2030 possible, which we see is achievable.

Thank you. We welcome the questions now.

Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may enter star followed by one on their touchtone telephones. If you wish to remove yourself from the queue, you may enter star and two. Participants are requested to please use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the queue assembles. The first question is from the line of Darshal Zaveri from Crown Capital. Please go ahead.

Hello, good afternoon, sir. Thank you so much for taking my question, sir. Firstly, good performance in a challenging year, sir. Sir, just wanted to understand in terms of F527, sir, I think we had given a guidance previously of 530 crores revenue and 24% EBITDA. Do we hold by it or can we better it because you're saying exports and customer booth will have really great growth, sir. So in 527, what is our outlook, sir?

So, Outlook will be same. We will continue to grow at 20-25% annually. We have set a vision of Vision 2030 where we want to double our sales, rather more than double our sales in next 3-4 years.

Okay, double our sales. And Sir, Margin, Sir, we were saying around 24%. So, is that achievable, Sir?

See, if you have seen the gross margin has increased from 52% to 55%, and EBITDA margins also have increased from 21.1% to 22.5%. So, once the export and the branded sales will improve, the EBITDA margins will definitely come up above 23-24%.

Okay, Brahmaaj, we will be 20. Sir, and this includes other income, right, sir? What is the portion of other income in us? Is it forex gains or because this year we had, I think, around 11 crores of other income. Usually, we don't have that much, sir. So, how do you see that, sir? Lepun, can you explain?

Yes, sir. Sir, the other income includes interest from FDR. So, this is somewhere around 8.5 to 9 crores in this year. And so, the total is 11 crores, but only the other 2, 2.5 crores are QT drawbacks, MES licenses sales. So, those are related to business only. Only 8.5 to 9 crores is the FDR interest.

Okay, so if we have 8 crores as FD Interestor, then...

If you want me to exclude that other income, completely if I exclude that other income, even though duty drawbacks and everything, then it would be 19.67% compared to 19.33%. 19.33% last year, and this year it will be 19.67%. I have excluded all the other income.

Correct. So that's what I'm asking, sir. The EBITDA margins that we are saying around 23-24% that we are accounting for with the other income or without the other income, sir?

Sir, that 23-24%, let us be consistent to include the other income also. So, if we are saying this year we are 22.5%, next year if we say we are 23%, so we are comparing from the same base, like including other income also.

Okay. Okay. No, no, no. Fair enough. Yeah. That's why I just wanted to clarify that, sir. And, sir, just wanted to know, like, this year, we decided to, you know, to orgo the plantain that's around 40-50 crores. So, right now, I'm just trying to understand, I think, our IVF segment, I think, that around has around 45-50 crores of revenue, right, in F526. So, the major growth next, our guidance includes that or is just on a standalone basis, we used to say we will grow 20-25%. So, the acquisition is over and above it or how do we look at it, sir?

So, the guidelines include live-in also, but overall oncology business, our main course business will continue to grow at 20-25%.

So, sir, so that way we should have a higher than 20-25% growth, right?

Yes, yes, yes. See, what I have, what we have set is that we have set a vision for 2030. We have set a vision to achieve 900-odd crore sales in next four years. So, this includes every vertical, even the acquisition. So, it's not about single vertical will include in that case, because, of course, the CDMO will have a very low sales growth. So we have to take up the growth from other segments, maybe basically from exports, then from own brands, then from Derma, then from Nibin. So all this put together, we have created this vision of 2030.

Oh, okay. Okay. Fair enough, sir. I understand that part now, sir. And, sir, just wanted to know, like, we have, I think, around 100 crores of cash with us, right? So, any more acquisitions planned?

Right now, we will be looking for something in case something exciting comes, but till now, we don't have any option in hand.

Okay. Okay. Okay. Fair enough, sir. That's it from my side, sir. Thank you so much, sir.

Perfect.

Thank you. The next question is from the line of Anupama from Ratna Chaya Capital. Please go ahead.

Yeah, I just wanted to understand the value of the tenders that you've got from the export orders and from which geography that is. And is it a word of...

See, we cannot disclose this on the call because we don't want anyone to head in the market. So, we have got that tenders, and that is from a very, like, very good market, and we got this in 2024-25, but in 2025-26, we couldn't get it because of some other reasons in that country, but we have already got and we are supplying in the first quarter of this.

Right, and is it a new geography or a new product?

It's a old geography, but we have got some new products added in that.

Right. And sir, can you just highlight the ideas, business products, what are the revenues for effectiveness and also the data? Yes, sir. Sir, the IVF business, it has closed, last year it has closed 45-46 crores, and the EBITDA margins are close to 18-19%.

And what would be the FAT number?

FAT number is close to 9 or 10%.

Yeah, okay. Thank you.

Thank you. The next question is from the line of Rudraksh Raheja from iThought Financial Consulting. Please go ahead.

Yes, thank you for the opportunity, sir. Am I audible?

Yes, sir. Please go ahead.

Yes, thanks. Sir, could you provide segment-wise EBITDA margins for FY26 across?

Yes, sir. Sir, the branded margin, sorry, the branded sales has an EBITDA margin of 35-36%. CMO sales have EBITDA margin of 17-18%. The sports have a VEDA margin of 20-21%. APA has a VEDA margin again 21%. And DERMA, we calculate the gross margin, which is 57-58%.

Got it, sir. And I think last year, derma margins were on 65% plus. So any reason why this has declined?

Last year, derma margins were 65%. Some variance is there. The decline is there because of some schemes we have to give. That's why the margin has reached.

Understood, sir. Understood.

And, sir, in exports, I think we were aiming for a 200-250 crore type of number by FY28. Are we on track to get there based on our current registrations and pipeline?

Ashutu ji? Yes, sir.

So, we are absolutely on track as far as the numbers which we have previously given, 200 crores by FY28, because as of now, we are supplying to around 30 countries, wherein the supplies are consistent, and we are also opening up around 14 new countries, which will give us that kind of revenue growth. So, the question which you have asked, yes, absolutely, we are as per the, you know, plan which we said earlier.

Understood, sir. And, sir, which would be, like, substantial countries for us once we get to these levels? Like, top three for us.

Yeah, yeah. So, I won't be able to disclose the company names, but I can only say that the top five countries will contribute almost about 30% of the sales. There are few countries wherein as of now that today the business is, you know, less than a crore rupees, but we have won the tender, right? And the new dosiers have been submitted. So these countries like the one country will contribute from one crore to around 20 crore plus. The second country will like last year we did around 13 crores. That will also contribute more than 25 crore plus. Then there are a couple of, you know, countries wherein we have five doses, around 25 new doses, and registration is expected to come soon now. Within a month, we are expecting the registrations, and those countries will contribute significantly. Understood, sir. And to be very precise, I would say that we will continue to operate in around 45 countries, and there are, like if you say, Southeast Asia, right, that is the, that will be the major road driver for us, apart from CIS and few countries in Latam.

Understood, sir. Understood.

And, sir, what are the plans with respect to this new Nivian division where we acquired? PPT mentions a TAM of 1000 crores, which roughly translates into like 4% market share that we have based on the revenue figures you gave. So, could you help us understand your vision with respect to this segment? Like, what kind of TAM and market share are we planning for next three years?

So, this market will grow. The total market size is around 2,000 crores, right? Out of this 2,000 crores, 1,000 crores is a recombinant market wherein we are not present. So, we are planning to tie up with few companies from where we can license the recombinants so that we can increase our covered market, point number one. Point number two is this market is growing at the rate of around 17% CAGR. So, we expect that in next three years time, the market size will be closed to around 3600 crores. So, even if we continue the same kind of market share of 4.5%, then we will be doubling up our sales as far as infertility business is concerned.

And I'll also add up in this that the promoter who has been running this business since long, they have a strong team which has already demonstrated the ability to scale this business at previous organizations. So, this will be a very big growth driver for us.

Absolutely, absolutely. So this financial year, we are planning to launch around four new products. And then we are also trying to license recombinants. And there are a few more products which are there in the pipeline. So this is strong team coupled with new product launches. Plus, if you see the overall IVF business. Out of, you know, 12 to 15 lakh, you know, cases, which are like the ideal case for this IVF, only 3 lakh population is being served. So there is a big gap. In the IVF business. So we are trying to, you know, tap those things plus the new clinics. Apart from that, there are gynecologists who are also practicing IVF. So we are trying to cover that as well. So all put together, we have increased our coverage, which includes the IVF centers, IUI centers plus gynecologists.

I hope I have answered your question.

Yes, sir. Thanks for a very detailed explanation. Just one more thing on this part. Do we expect some EBITDA margin dilution in this? Because we'll scale it. We may need to give schemes and more sales, promotion, etc. Is there any possibility that we'll have to compromise on margins a bit?

So, there will be no compromise on the margin side. The business is already scaled up, and the presence is already there, filled across all the hospitals. So, we don't see any further reduce in the EBITDA margins. Rather, EBITDA Synergy will help Nibwin to procure goods at a lower price, what they are taking from the market.

Understood, sir. Understood. Sorry, sir. One thing I missed on Dharma side, have we taken that segment for Financial Year 26 on EBITDA basis?

Hello. Hello, sir. We have already been positive since last six months. So Dharma has started giving the Abhida positive revenue.

Got it, sir. Got it.

And, sir, could you help with the capacity utilization that we are currently in across different plants that we operate?

So capacity utilization stands at the owner still we have a leverage of 55%. It's around 40-45% we are consuming till now. Injectable liquid, we have a, again, we have a idle capacity for around 30-40%. In Lyo, yes, we do have capacity like we are using around 85%. But we have a lot of space in Adelaide formulation plant. So we are planning to install two more Lyo there. So the capacity will not be any constraint for any future growth.

Understood. Just hypothetically, with our existing asset base, sir, what kind of peak revenues can we do?

See, with this particular setup, with this asset value, we see the revenue can scale up to 700-800 crore easily,

without doing any major investments.

Understood, sir. Understood. And, sir, CAPEX plans for FY27 and FY28, if you could help with that.

See, last year, we invested close to around 45 crores in all the three plants together, in which there was a land which we bought, and we were planning to open a R&D office and a corporate office together. But somehow, we have just dropped that plan, we have just taken a building on our, like adjacent to our office only, since it's become a big office now. So we are just planning to dispose that land, since already the R&D setup will be there. So, so, so, Capex plan is the seat totally for next. Two years, we don't see any major capex happening, apart from what we have done for the intermediate plant, where we have already bought an existing plant for 9 crores, and we have invested close to around 15-17 crores for the intermediate plant.

Otherwise, total capex we see that is not more than 25 crores in the next two weeks.

Understood, sir. Understood. So, I'm guessing there would be no need to increase any debt from here, and with the conversion of, yeah, with the conversion into equities for our debentures, so what kind of interest cost should we expect for FY27?

Sonipun? So, FY27, see, we have to convert these debentures in May itself, in May 2026 itself. So, whatever financial expenses you are seeing, that will only be coming for two months this year. After that, there will be normal bank interest, which is normally 7.5% on CC and close to 8% on terminals. So, the big financial expense won't come this year. Only for two months it will come.

Got it. And what would be our level of borrowings or expected level of borrowings in FY27?

In FY27, if I talk about working capital facilities, putting all the companies together, that should be close to 7-8 crores. Utilized, I'm talking about utilized, or maximum 10 crores, and the term loans will be close to 20 crores.

Thank you, sir. That helps.

And, sir, you mentioned that we are working on this intermediate plant, and, sir, if that becomes functional, I think you mentioned we'll try to commercialize it by end of this year. So, what kind of jump in the margins that we could see on a consolidated basis?

See, what we see from generally what our workings have shown from the R&D, what we have done for the last 12 products, so we see there will be a slight increase in the margins by 1.5 basis, but till the time API is not commercialized, we cannot say, because it depends, totally depends on the yield when you are getting it. So, the main idea about it is that you have to have a proper control of the DMS. When you're filing the dossiers, the DMS plays an important role. So, right now, our main KSLs come from China. So, the documentation support becomes sometimes very difficult to get it from there. We have to sell people, and we have to get the QP audits done. So, in that case, we are just making everything in-house, and we don't want to be dependent on anyone. So that is the main, that's the main strategic decision which we have taken to come up with an intermediate plan. Yes, of course, the price advantage will be there. And we, what we see is 1.5 basis. But again, till the time the commercial production come, we cannot share that.

Got it, sir. Got it. And that would be entirely for our internal consumption, right?

See, because we have come up with a good capacity, so there are companies who have approached us those products which they are also taking from China. They also want those integrated from India only. So we might be exploring that potential and that market as well.

Got it, sir. And how much have we actually, in total, like spent on this KSM plant?

The total plant cost, including land, machinery, and plant cost, everything put

together, that would be close to 27 crores. Understood, sir. And the issue that we had with respect to

platens, that won't be an issue of our own KSM supply. Would that be fair to you?

Exactly. Yes.

Understood. Sir, you also mentioned two new NDTS to be launched in FY27. Are we on track for that?

Yes, 100% we are on track. One new NDTS will be launched in the next two months. And one NDTS, we have just got a B-E-N-O-C. So, we will be starting the bioplasm very soon with CDSO. And we will be submitting that report by November. And maybe by January, February, we should get the approval of that product.

Understood, understood, sir. Thank you, sir, for giving me a very detailed answer. I'll come back in the queue if I have more questions. All right.

Thank you. The next question is from the line of Santosh from Fund Veda. Please go ahead.

Thank you for the opportunity, and thanks for being transparent. I'm calling insights to be challenging yourself. One question regarding your political attention that is going on, are you seeing any impact on the business?

Yes. So there are certain products which are used in API manufacturing and the formulation manufacturing. So those are byproducts of petrol only. What we have done as a strategic thing is that we have already kept the stock for five months. So we have bought and kept an idle stock for five months for these products. So we don't see any shortage. Then impact on the prices, there is some impact on the prices as we are into super speciality. So it is not making that much impact as compared to the other generic or other drugs in the Indian market. But still, if there is a substantial financial impact, then the prices will be increased accordingly for the market as well. And people are aware of this situation. Even our partners everywhere, whether it's EDMO, whether it's trade, whether it's export, they are aware of this situation.

Got it. Thank you. And another question is, from the past two years, we have been diversifying into different businesses, including cosmetics and now IVF. Are we seeing any slowdown in the oncology business, and that is the reason we are moving to others in group case, or what are you talking about?

Okay. So, you have seen that we grew by 25% in FY25, then we grew by 20% in FY20. FI 26, right? Our own branded business. And we poised to grow at the same pace in the coming years as well, three to four years. So, we don't see any slowdown in this business. It's just an additional opportunity. Since we are a super specialty company, we are always aimed at having some more super specialty in the basket. A pharma company is a company where it has to have multiple segments. So, entering into cosmetology, it took us two years to decide to which division we have to enter. Then this IVF, again, it's a super speciality. We have been discussing with Nipvin since class one and a half years. It took us one and a half years to take a final call on this acquisition. So, it's always better to have multiple specialities. Plus, oncology business will never be slowed down. You have seen how many cases are being diagnosed every year. And it's globally. It's not only in India. It's globally. Patients are being increased. They are suffering from cancer.

So this business is never going to be slowed down.

Okay, got it. Thank you. One last question. We said some tenders have missed the FI26, but they got booked in probably one of the FI267. What is the revenue impact of this mystery tender? I mean, this revenue in FI26?

Sorry, I didn't get your question. You were not audible.

So you said that we missed some tenders in FI266, right? That got pushed to FI267. What is the revenue impact of Mr. Tender?

So the revenue rate was close to around 20-25 crores.

Okay. Thank you, sir, for the insight and all the questions.

Thank you. The next question is from the line of Sharath, an individual investor. Please go ahead.

Yeah. Hi. Thank you for the opportunity. We had mentioned in the note with the result that because the interest component on CCT, our net profit would have been higher by about 6.5 crores. But ideally, our monthly expense is interest expenditures from 4 crores. So we just verify the annualized impact of the interest component on CCT number one. Number two, on the exports, we had said that they were delaying 10 years. So is our export business concentrated in a couple of markets, though we are exporting to 30 countries? And how are we placed on June this year versus June last year on the export?

A debenture question, Nipun, you take, and can you give the answer for export, please?

So, yeah, Nipun, you can continue.

So, in this candle, the total expenditure of interest, which was booked for compulsory convertible debenture, was 9.36 crore. So, The total industrial TCD. So if we exclude that, then we have calculated that our FAT will be 12.5% considering the FAT that our TEC will also increase because the TEC which was saved on interest, we have reversed that also. So considering that, we have calculated that it will be 12.5% FAT as compared to 11.7% FAT last year.

Okay.

So, you are saying this year, just the interest component, you know, PAT would be roughly about six and a half floors, in addition to what our business we do this year.

Yeah, sir.

Okay.

Sorry, I didn't understand the export related question, yeah. Can you please repeat the question?

On the export, in our calls, we say that we are exporting to 30-plus countries, but there is also the fact that was mentioned that there was a delay in Teringer because of which our export business could not grow this year, rather we had slightly growth or something. So is there a concentration, you know, risk in our export business that we are exporting to one or two countries because of which our growth is impacted, number one, and how it lays on Q1, last year versus Q1 this year on exports?

Yeah, so this year we expect to consolidate our business as well as export business is concerned. And yes, the tenders which we were expecting in Q4 of last financial year, those tenders got delayed and that is opened in the month of April. So we expect to supply to cater to all those orders from May, June onwards. So that is one thing. And that, as Mr. Rahul has said, clearly said that, that component is close to around 20-25 crores. This year, we don't expect any such delays. So as far as quarter revenues are concerned, Nipun, can you please share quarter-wise revenue, quarter-one versus quarter-one of this year?

So this quarter, on the export side,

this quarter will be closing more than 20 CR.

22.22. Yeah. And what was it last year, same quarter, Q1?

Last year Q1 was 32.26 crores.

Okay, since we are doing 20, we are again degrowing there, right?

No, but in the next quarter, it was 11 crores only. So, we should compare the half year. Half year was 43 crores only. Sometimes, you know, orders are there, it is executed in the next month, so we have to consider that factor.

I'll tell you, I'll tell you in that case what has happened, like when you are awarded with a tender, so there are, you have to supply in two installments. So the first installment is always less, second installment is always higher. So the major portion of installment will come in the second quarter. Like one tender, we have supposedly, we have been awarded a tender for 3 million. So the first quarter, we might be doing around 1.2 million, but in the second quarter, we'll be doing around 1.4 million.

Okay. So you're saying that, let's say, for H1 of this year, which will be H1 of last year, what kind of growth are you going to see on exports in terms of percentage?

We are expecting around 30% growth in H1.

Okay, which means that TQ2 has to be substantially higher than Q1 this year, and Q2 last year, right?

Yes, absolutely.

Okay, do we have orders for that, or are we expecting new orders or tenders to come, which will help us cater to those numbers?

We have some orders in hand, and we are also expecting some more new orders.

Okay. As of now, we have around 50% of the order in hand.

Okay. Here I would just have a small request that when we mention the number of countries and number of dossiers that we file, and if a business is a little concentrated in certain geographies or something, it's important that you give clarity on that particular geography going forward as well for investors.

Yeah, because clarity, I think, I think in the initial talk only we discussed that the majority of the business will come from five countries. Like 30% of the business will be derived from five countries. It's only like confidential. We don't want to name the countries because, you know, there are so many. So, so we have already clarified that our main focus is on only five countries where 30% of the business will be coming.

Okay. And is there any reason for delaying EUGMP? It was expected to be done earlier than end of last year.

So for EUGMP, what happened was, we were supposed to get an audit in April. But exactly what happened, the new rule has come, where earlier there was a line inspection, that the auditors come and use to inspect the line. The dozier was not to be filed. You need not to file a dozier at that time. But as for the new rule, you have to file a dozier first. So we have already filed three doziers, and now based on the dozier, they will be coming for an inspection. So, that's a new rule which has come in place in February-March. So, that's why our audit got delayed.

Okay, fine. And, you know, one last question. We were primarily into oncology and doing 20-25% revenue growth. Then we started doing skincare, went into the skincare line as well. Today, we know it takes about 3-4% of the overall revenue of the company generates, right? And now we also have an interest in Navy as well. Isn't it too much of a diversification or dilution, though you're saying those are specialized, you know, line of businesses? Do you see them growing significantly over the next few years?

See, I'll tell you, it's about the bandwidth, right? Once you are doing certain business, the business becomes an auto mode, right? Where you, as a person sitting there, if you are thinking of on a strategic point of view, so the only, you cannot, like, you don't have work to do. You have selected the product which has to be developed by R&D, you have selected the product which needs to be registered in those countries, you have selected the product where RA has to work and give the doziers on time, then there is nothing new left, right? So, it's about the bandwidth. When you have opportunities, why not utilize those bandwidths and become a better and more diversified company?

Got it. And how does Minivian benefit, you know, from this venture with Peter?

So, Nibven has a lot of benefits. One is the procurement. Till now, all the products are being procured from outside. They don't manufacture the product. That is number one. We are into this business since last four decades. In pharma, we are known to everyone. We can get a product at a much discounted price as Nibven is getting. That is number one. Then the second synergy we find is that the NavVN right now is totally focused on the IVS and the standalone clinics. They are not focusing on the corporate hospitals. Like we talk about Max, we talk about Medanta. We have a proper access to these hospitals where we can get these products entered and they can scale up the sales there. Also, on the efficiency side, the logistics and the margins which they are diluting, I think we can play a major role in adding up on those side as well.

Okay. Thank you for all the clarification that you've given. One last point, you know, going forward, I hope we'll have invested in each quarter. Like last quarter, we didn't have an investment that would be a transition between the six-monthly and the three-monthly result. I hope going forward that won't be an issue.

Yeah, because that was also a new thing for us, and since we were only concentrating on the half-year result, but now we are used to for this, so we will be trying to deliver every quarter now. Thank you.

Thank you. The next question is from the line of Surichi Parmar from NX Wealth Management. Please go ahead.

Hello? Hello? Am I audible?

Yes, ma'am, please go ahead.

Yeah, good afternoon. Just in last call, because of this reduction of platen sales, you have already revised your guidance for FI 26 to 420 crores, 400 to 420 crores. But now you have closed the whole year at 385 crores, and EBITDA margins also declined. So can you please provide explanation to this?

So, I, we completely understand that there was a correction in the sales, but the problem was that we, in FY25, what we did was, we got our export sales term, where we supplied around 1.5, 1.8 billion of export goods to those countries where we were awarded the tenders. But this year, unfortunately, the tenders didn't get awarded in the month of December and January. We got those tenders awarded in March. The supply is now happening this quarter. So, that was the major setback which we faced in the last quarter.

Okay, so because of the exports getting delayed, no revision is there in the sales, correct?

Yes.

And now the exports, that has been streamlined.

Yeah, yeah, that is on track, and we are expecting 50% growth, at least 50% growth this year from exports. So we did 71, we are expecting to close between 107 this year, 105 and 1010 this year.

Okay. Okay. And regarding the guidance for FY27, which you gave in last call, do you support that or there's a revision in that too?

No, so the guidance remains very broad. That is between we will continue to grow at 20-25% for next four years. We want to double-plug our space for in next four years. This is the vision we have set for 2030. We want to touch around 850-900 crore revenue in next four years.

And so, sir, what will be our revenue mix in FY30? The double-up revenue which you are targeting. So can you please guide me through the revenue mix, your branded sales, CDMO, exports, API, cosmetology, and IVS, how much they will account for in this?

We have uploaded a presentation. It's already there. We have uploaded an MSE, so we have given the guidance there. Revenue.

Okay, okay, okay, okay.

I would just like to share that... This financial year, the branded formulation will contribute around 36%, which will go up to 51% by FY30. As far as export is concerned, currently it is 18%, which will go up to 13%. CDMO contribution will be reduced from 39% to 13%.

Okay. All the CDMO accounts for lower margin also in all your other sales, correct? And just one more part. In last call, you have told about the exports growth coming from the product commercializations in Algeria, Mexico, and Philippines. So that has started, means whatever exports you have got, order is from these regions?

It has started from these regions.

Okay, so we can expect more coming from these regions?

Yes, yes. So, that's why we informed that the major growth revenue will come from five countries. So, these countries might be a part of those.

Okay, okay. And so, the NDDS, which has already been commercialized, like Megastrol and Methotrexate, Imatinib, so all these have started giving you revenue or this FY27 will be the full year revenue for these products?

So for Magistrol Acetrade, we did, it has given a brilliant revenue last year. It has become the number one brand. Then Methotrexade, we have just launched because we, since we got an approval, we were supposed to get the NPPA pricing from the government. So we just got in first week of February, we have just launched that product. So this year entire, this year will be revenue generation with that product. And then with the matinal solution, yes, it will be launched in next one or two months.

Okay, so these will come under your branded ones or these are the branded photos? Okay.

Okay, thank you so much. Thank you. The next question is from the line of Kumar Saurabh from Scientific Investing. Please go ahead.

Hello, sir. I would like to understand the marketing strategy. Like earlier, we have only oncology now. Derma has also become a bit of positive. And then the IES business will get added. And as you said, we'll be taking the IES products to the corporate hospitals. So do you maintain like the same MR will be selling all these products or how do we, you know, manage the MR in these verticals?

So, I was about to answer the same question. Someone has previously asked a similar kind of question about the diversification of the business. So, if you see, our major thrust is into oncology, wherein we have our own manufacturing and the marketing and sales team, right? That is point number one, and the team is very, very experienced. So, now, what we have done in oncology is, we are giving major brand, like we are giving thrust to major brands, top 10 brands. So, brand building is happening now. We have segregated the division, oncology division into three divisions. One is hematology, one is supportive care plus zero oncology, and one is for the solid tumor. So, the major thrust will be into oncology only. Now, point number two, Dharma division. Dharma division, we have a very experienced GM, and the team of managers which we have, they are also very experienced. So, the GM is having experience of more than 20 years in derma segment, plus all the managers who are there, their average experience is more than 12 years. So, the major strategy will be retention of these managers, so that we can continue to grow at the rapid pace. Dermatology, this year, we are expecting to grow by around 50%. Then point number three is IVF business. So IVF business, as somebody has rightly mentioned, that the team is very experienced, very dedicated team. They are, you know, in few years time, they are having a market share of around 4.5%, which I said in the next three years, the market share will continue. 4.5% market share will continue as it is, and the market, overall market, from 2,000 crores, it will go up to 3,800 crores. So, if we continue to have, enjoy the same market share of 4.5%, then the business will be more than double for IVF business. So, we have a very, very dedicated team for each of the divisions, whether it is for oncology, dermatology, or IVF. So, even though the diversification is happening in the company, but for every business, we have a very experienced and dedicated team and different marketing strategies. So for oncology, they will promote only oncology products, they will promote only DERMA and IBF team is separate. So for all the three divisions, we have a separate team, separate managers, separate GMs who will be focusing on these particular segments.

Thanks a lot for the detailed answer, sir. The next question is currently I think Dharma is around 16-17 crore of revenue when we have done the EBITDA break-even. And Dharma is a very, very good segment from a margin perspective. So, in the long run, let's say 3-year, 4-year, 5-year down the line, as Dharma grows to let's say 30-40-50 crore, do you expect business also to have similar kind of margin profile like oncology? Like, when we will be hitting that 5%, 10%, 15% kind of EBITDA margin band, what will be the, you know, milestone at two points?

So, next three years, we have a vision to cross 50 crores in dharma, which includes majorly, like the major thrust will be into cosmetology only, not into medical dermatology. And for cosmetology, what we have done is, we have tied up with a couple of companies. One is Pramo Italia, and the second company is Tresiderm. Right? And it's a very, very niche segment. And we will be, you know, promoting fillers, mesotherapy, and premium cosmetology products. Mainly anti-wrinkles and patients who are eligible for fillers and mesotherapy, for those type of patients, we will be promoting the premium cosmetology products as well. All put together, the vision is to cross 50 crores in the next three years' time. As far as margins are concerned, definitely the margins will improve because we are not increasing the field force. We will be increasing the sales, we will be increasing the PCPM, but not the field force. So margins will definitely improve.

So what we are anticipating is that the EBITDA margins will be close to 10-14% if we are close to sales of 50-60 crores.

Thank you. And very interesting acquisition, because I guess this is a very interesting space. And so recently, one company got listed, which is into IVF. And I mean, I'm very into this field, but when I look at the margin, even when this company was having a 40 crore kind of revenue profile, the margins were in 40%. I think it's Gaudium IVF. So, are there very different, the company which we have acquired versus the company which is there, are these very different business models because our company is 18-20% margin profile. So, do we have a market expansion opportunity or are there two different businesses in IVF and N's margin profile?

There is totally different.

It is totally different. They are into services.

They are not into products. Okay, okay. Yes, yes. We are into branded business. Yeah, got it, sir. And coming to the export, this last year, FY26, we got impacted because of the tender delay. My question is the clients which, you know, comes out with these tenders, are these public sector clients, private sector clients, what is the source of funding and what has been the reason for delay?

So, these are public sector tenders. Actually, globally, if you see, except India and some two or three countries, except where there is a share of 50% private market, 50% government market. Otherwise, entire globally, even in Europe also, 90% is a government tender business in oncology. Not in oncology, any super speciality. So, it depends on the country to country when they call for a tender. So, maybe sometimes in India also it happens. Like in Kerala, if the tender is due in April, they might call tender in like August. It delays sometimes. So, it depends on country to country and government to government.

I got it, sir. And what is the margin profile of export business? Is it similar to domestic land rate or lesser?

So, the older margin, till now, what we have been supplying is basically the unregulated markets and the little semi-reg markets. So, we were doing around 20-21% EBITDA margin in current exports. But we expect the EBITDA margins to grow up to 23-24-25% when we enter the regulated markets. Right now, our transition is towards the regulated market size. We have, we are developing eight niche molecules, not niche, these are first or second generics in many countries. These will be the first or second generics. So we are targeting those molecules to be registered globally.

Got it, sir, got it. And the last question, last three, four years of execution have been very, very strong. Just the last year where a lot of things went wrong, like in H1, you know, there were rains and inspections, then the QH2, when we were expecting tenders, it didn't come. So, I hope that was a transitionary one-year pause, and, you know, again, for me, elementary on the export growth looks like it was going to be very good.

See, I'll tell you, sometimes the situations are beyond control, right? We used to do around 30-35 crore business from platens only. Not only we, the entire industry, the entire oncology treatment depends on platen. Today, doctors, hospitals, they are starving for carboplatin. The chemotherapy starts from carboplatin. But, unfortunately, in India, the carboplatin NPPA price is 2850. And the costings which companies are getting with carboplatin is around 2300-2400 as of today. So, there are no margins for hospitals. You have to give 20% to the retailer, 10% to the wholesaler. So, these are things which are beyond control, right? But now, in last quarter, we laid down certain strategies where we could manage to get 10% growth as compared to a quarter of December. That was less of platens, and we were supposed to get some orders from export, we didn't get, but now we are getting that. So the total thing has been laid down. We are focusing on the other molecules where this sort of issue will not come, whether it's branded business or whether on the export side.

Great, great. My best wishes to you, and we will wait for the next product. Thank you.

Thank you. The next question is from the line of Komal Aya from NBG Invest. Please go ahead.

Yes, sir. I wanted to know about this flattened business in continuation of the last question. So you said, I wanted to know if you all have stopped flattened completely.

So last quarter, we just managed to do a very little business of platens because there are some export order where we could get margins where there was not a NPPA blockage, where there is no price blockage. So export, there is no MRP. We supplied certain products there, but in domestic, we didn't do any supplies, either for CDMO or for own brands also. Okay.

So, if I remember last year, you discontinued platens from probably the third quarter onwards. So, this year, will it have impact in the fourth quarter sales since we have stopped platen? So, last year's first quarter would have platen sales and this year's first quarter again those sales would have stopped.

So, the platen sales will not, we will not make any impact, and we have laid down strategies so that the platen sales can be fixed up with the other products. So, we are more focusing on the other product side, and the platens will not be making any huge impact on our growth.

Okay, so you are covering up with other production this year, both first quarter or this year, we will not have any platen sales.

So, we cannot say that we will not be having any platen sales. Yes, the export sales will happen because there is no MRP. But as of today, our strategy is very simple and very clear that even in export also we are not focusing on the platen. We will be focusing on the other high margin products.

Okay. I wanted to know about the CCB conversion. At what price it is expected to happen in May?

Nipun? Hello. Ma'am, the PCD conversion, I mean, the price has already been fixed. It was 1,643 when we allotted this PCD conversion. The face value will remain the same, 10 rupees. 1,633 rupees will be converted into security premium. So, this will happen. This will happen. Okay, fine.

Thank you so much. Thank you. Ladies and gentlemen, that was the last question. I now hand the floor over to Mr. Rahul Batra for closing comments.

Dear all, thank you so much for joining this call. I know that there has been some delayed progression in the phase, but yes, we are committed, our team is committed, and we are here to poise our growth to achieve our vision 2030. Thank you. We'll see you in the next half.

Thank you very much, sir. On behalf of Beta Drugs and Philip Capital PCG, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines. Thank you.

Thank you.

Thank you. Thank you, everyone.