Beta Drugs Limited (BETA) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Beta Drugs Limited Q2 and H1 FY27 Earnings Conference Call, hosted by Philip Capital, PCG. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over to Mr. Sri Surya K from Philip Capital PCJ Desk. Over to you, sir.

Thank you. A very good afternoon, everyone. On behalf of Philip Capital Private Land Group, I welcome you to the Q2 and H1FR27 earnings conference call for Beta Drugs Limited. Joining us today from the management are Mr. Rahul Batra, Chairman and Managing Director, Mr. Astor Shukla, Director of Sales and Marketing, Mr. Nippun Narura, CFO, Ms. Rajnei Brad, CF and Compliance Officer, along with Mr. Natarajan, Head of Strategy. I will now hand over the call to Mr. Rahul Bhattra for his opening remarks. Following his headdress, we will open the floor for questions and answers. Over to you, sir.

Thank you so much. Good afternoon, everyone. On behalf of Beta Drugs family, we wish you all a very happy Diwali. To start with, let me take you to the key financial highlights. The revenue growth of Beta is at 29.2% as compared to H1 F526. The Beta margin grew by 0.10%, that is, from 23.08% to 23.18%. The fact showed a significant increase from 24th road to 34th road, which is almost 45% growth as compared to H1 of last year. Now, before going ahead with the key highlights, we want to take you on the brief of the impact of trade margin capping on the MRP. So the trade margin capping is nothing as this is as which was declared in the year 2019. Now, to give you a brief detail on this of our total branded business, which we did in FY26 was 123 crores. The orals comprise of 60 crores in that business, which has no impact at all from the recent MPPA guidelines as the majority is being sold through distributors. The injectable business is 63 crores out of total business, of which 50 crores come from the scheduled drug, whose MRP is already defined by the government, so that will not have even a single impact. The 13 crore injectable business, which comes under the non-scheduled drug, will also have no impact on our margins and growth as well as realisation. The overall impact on the company seems zero or negligible. Now, let us take you to the key highlights of H1-27. The own-branded business have grown by 17% in H1-27 as compared to H1-26. In its quotes, we have filed 76 new dosiers in different geographies, which include four dosiers filed in Europe. We have started bipolar studies with EURLDs to be filed, in which we have 5 products to be filed in regulated markets, of which one is already concluded and the rest are in process. We have successfully launched 4 new products in FY27 and on a plan to launch 6 more in coming months. With the effort and dedication from the sales team, we have successfully made 5 brands more than 5 crores in which one brand almost touching 10 crores sales annually. Beta has finally got a breakthrough in Tata Hospital and we have got there some brands approved in this H1 FI27. The latest acquisition of Nibin licenses has delivered a strong growth of 75% as compared to H1 FI26. The API business, too, has delivered 30% growth in H1-FI-47. Now, discussing the business's vertical bias. First is own brands. The own brand business showed a growth of 17%, as discussed earlier. The OSG, oral solid box contribution to the business has increased up to 50% in total business. We have successfully launched four new products and six more to be launched this year. As discussed, we have got successfully our first purchase order from the Tata Hospitals. We are on track to do 150 crore sales from our own rent for this FY27. Coming on to the exports, we have done 43 crores of sales in the first half of FY27. And we are on track to do our target for FY27. A card from one opportunity which we had in 2026 where we did some opportunity sales of 25 crores And the balance 16 crores that came from the territories out of total 41 in FY26, we have done more than 26 crores apart from the 15 crores sales that we have done in FY27. Recently, we have got 35 new registrations and on a verge to get 50 more registrations from this year. We have also successfully cleared the audit of Azerbaijan and filed 20 new doses, of which 12 registrations are expected in FY27. We have also filed 4 doses in EU and expected to receive an audit in this financial year. Total of 872 new registrations are in pipeline, which we will be getting in next 2-3 years. In export, we are on track and will deliver a major growth in coming next 2-3 years down the line. Coming on to our latest acquisition, Nibwin, Nibwin has delivered 75% growth, that is, from 18 crore to 31 crore sales in the first half of FI-27. The acceptance of these products has been in the corporate hospital, which is a major increase in this FI. There has been a significant 60% increase in the prescriber brace also. The top 5 brand contributes around 63% of the total sales. At Niven, we are evaluating to launch our first recombinant in the next 2-3 years. Niven will continue to deliver a strong growth in this segment. In DERMA, we have seen a consistent increase in the secondary sales. The PCPM grew by 30% to reach an average PCPM of 2.5 light in this half of FY27. Recently, we have registered, and our first consignment is on a way to be delivered for high-end cosmetics from Europe. We are successfully in-licensed some products which will be launched in December 27th, 26th this year. Dharva will make a great brand in next two to three years which we are aiming for. The CMO business has grown by 21% in H1 FY27. The NGDS has played a big role in getting new partners. We have successfully partnered with two, three new Indian brands for the CMO business. The CDMO business will keep up the pace in the future as well. The API business has shown a growth of 29% as compared to H1 last year. With the ongoing investment in the new facility of Intermediates, the API business will get a big boost in terms of margins and supply. The key focus on this new investment is to step our presence in the export market with Intermediates in-house. The API business has a lot of room and opportunity to grow further. We have scaled up the new product's development and will be the first one to launch many molecules as a first index in India only with the support of API. To conclude, AdVita will continue to deliver 20-25% growth for next 3-5 years with a sustained margin between 23-24%. We are constantly evaluating biosimilar market. We are looking to tailor capital-efficient strategy for both marketing and manufacturing. We are also evaluating to manufacture oncology medicines outside India, where we already have on-the-ground presence. Thank you. Now we are looking forward for the questions.

Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Disha from Sapphire Capital. Go ahead, ma'am.

Hello. Am I audible, sir? Yes, you are audible, ma'am. Yes, thank you so much for this opportunity. Couple of questions, sir. Firstly, congratulations on a good set of results, sir. So, sir, we've seen our EBITDA margins at around 22%. So, going ahead, I think you're ready for around 23-24% lot of margins. What do you think will be the key growth driver? And for the next year, what sort of margin should we look at given the increasing contribution from the CMO business, the API business, and the Nivian business?

So, I think the trend towards increasing margins is going to be aided by a few factors. One is, of course, the change in the mix. If you look at our businesses, our branded businesses have close to 70% gross margin. Our CMO business is closer to 50%, exports is closer to 55-60%. So as the business mix changes, even without any cost optimization or factoring in other externalities, we believe the EBITDA margin will trend higher, purely because EBITDA margins also tend to be a function of gross margin, and our gross margins will trend higher. Additionally, as we know that we have set up a backward integrated plan for APIs, which will not just help us file dossiers for geographies like Europe, but also will help us reduce costs and hence, of course, aid in the expansion of graph margins. And, of course, as the scale of this business goes up, there is a tremendous amount of operating leverage which kicks in. And so I think the guidance towards 25% EBITDA margins is very conservative, keeping in mind the factors that I just listed about.

Fair enough, fair enough. So for this, for this, I've seen for the oncology business, the growth has been a bit impacted because of the de-bottlenecking that was happening and also because of the supply constraints. So what is the update on that? Are we seeing any improvements on ground?

Yes, I think the detailed explanation will be given by Mr. Nipun, but I can tell you that the de-bottlenecking exercise is over, and we are seeing now, you know, optimal production at both the factories. So, in terms of the growth in the branded Onco, we are still sticking to our original guidance of 20 to 22% growth for the whole year. So, in terms of CMO, I think the growth will be further propelled by the, you know, the improved supply of Platin APIs, which was impacted. If you look at our Platin tales between H1 of this year and last year, they were pretty much flat in spite of the increase in the prices, primarily because of the API supply conditions. So, I think overall, all the businesses, we maintain our guidance in spite of, you know, the branded business delivering a 17% growth. At an overall level, I think we are comfortably in the range of touching 5.35 plus.

Fair enough, sir. So, on this material side, I just want to understand what is the current margin, what's the current margin provide for this business? And for this year, obviously, we're guiding for 50% growth, but will we be able to continue such high growth going ahead as well? What sort of growth are we looking at for FY28 from this business?

So, on the margin front, the gross margins are closer to 50% for Nivian, and we are yet to see the phylogy benefits from beta-flowing into Nivian. So, obviously, there will be an upswing on the gross margin side. On the growth prospect for Nivian, see, it's a very large market and very scattered outside of the top two. So there is plenty of headroom for future growth. And as Mr. Rahul was mentioning that we also intend to get into recombinant hormones, which will kind of expand our addressable market to almost twice the size that is today. So, you know, a 30-35% growth over the next 2-3 years is not something outside the realms of possibility.

What will be the EBITDA margins for this business, and once the synergy benefits kick in, where do we expect that number?

I think today we are closer to 18%, 18-18.5%, and with synergy benefits coming in, we should be able to touch 23-25%, similar to what we are doing in beta.

So, for the export also, we guided for a very high growth for the exports. What sort of margin differential do we see for exports compared to domestic sales, and what sort of contributions from exports are we looking at for the next year, and for this year?

So, this year, I think we have guided to closer to between 90 to 100 growth of sales on the And FI28, FI29, I think year-wise giving a growth projection rather than that what we are looking at as exports business is something that can deliver closer to about 300-odd crores of business over the next three, four years. The reason I don't want to give out an exact guidance is that the tender, the export market is purely a tender-driven business. So over a period of three to four years, I can easily deliver a 30-35% growth. But, you know, sometimes the tenders do slip into from one financial year to another financial year. But on an average, you can expect easily a CAGR of around 30% on this business. And given the base where we are, I think that's an easily a GE will target.

Thank you. Disha, may I request you to please join the queue for the follow-up questions? Ladies and gentlemen, in order to ensure the management is able to address questions from all participants in the conference, please limit your question to two per participant. The next question is from the line of Avnish Berman from Vakaria Investment. Please go ahead, sir.

Hi. Good evening. Congratulations on a great set of numbers. Just a couple of questions. Raul, you mentioned that the CMO side obviously has seen a step jump in quarterly revenues run rate. One contributor is the NDDS product that you had launched. Is it fair to assume that the margins that you make in this NDDS product on your CMO segment, it will be higher than your average CMO margin?

Absolutely. So for NDDS, we don't share the cause sheets. It says about the new development which we have done. So, the gross margin is absolutely much higher than what we are right now getting in the other products, especially for this product.

Great. And also safe to assume that the future NDDS pipeline that you have, so when obviously they will contribute to the branded business, you are also planning to offer CMO services for the pipeline NDDS products, right?

Yes, we will be offering to our own brands also to CMO business. See, CMO have been a very integral part of our growth journey. So, we will be providing these products to the other partners so that the product equality should come in the market.

Right. Okay. And this very interesting thing you mentioned about the recombinant products in Vivian. Any timelines or any more color that you can give? Because this could, like you said, I mean, be very big.

So, there is one product which is called FSH. So, we are in a discussion with one company to develop this product along with the phase 3 trials. And so, almost it is on a final stage to start the development. And the total timeline to launch this product officially in India market will be between 2 to 3 years.

Okay, great. And last question, Nivian revenues for FI26, which you can just give me that number. I'm in the range of around 43 crores. 43 crores for F526. Thanks, Tim, and congratulations once again.

Thank you.

Thank you. The next question is from the line of Vinay Lakhera from Ratna, Treyya Capital. Please go ahead.

I had a question on the CMO business, like, what is the new guidance for the year, and what is the state of the Platten's business that affected last year's revenue?

Yes, Mr. Tarzan, please.

So, we are guiding the CMO business for FI 27 in the range of around 180 to 190 crores.

180 to 190 crores. And what about the, we had discussed, like, there was issues in the platens business.

Last year, has that base effect

already completely come into the business?

Sorry, that's all. The audio is not clear. If you can just repeat the question.

I'll take up the answer. So, basically, the platens, the supply is still a constraint, but still, without platen also, we'll be able to make up whatever the guidance is.

We have lost the line for the participant. The next question is from the line of Rishi Maheshwari from AXA Capital. Please go ahead.

Hi. Thanks for taking my question. Congratulations to the management. Two questions. One is, what is the organic growth rate in branded oncology, if I have to exclude the portfolio changes? I'm just trying to understand the market share gain over here. The organic growth rate for the branded oncology business is closer to 22%, as I mentioned. Now, the market is always in a state of flux. New products come in, old products go out of flavor. So you can't really evaluate the market saying that what would be the existing products growth rate going forward, right? Because the market itself is growing at maybe 15%, 10, 15%. And then we are trying to go at 20, 22%. We are taking market share from other incumbents. But to say each and every product will go at the same pace would not be correct. It's a mix of newer products coming into the market. It's a mix of new product innovations, novel formulations, and obviously the volume group. It won't be fair to put a number on a brand which was introduced in, let's say, 2010 to expect that to grow at the same pace today. My idea was to understand the concentration of revenue also within the domestic branded oncology business.

Is there any specific drug which is far more influential versus the others?

So, as I said, I was saying that we have one brand which is more than 10 crores out of a total pie of an annualized revenue run rate of 150. So, clearly, the concentration is low, and that's the nature of the market also. Typically, brands do tend to plateau at 15, 20 crores at best, and therefore, it's a basket of products that dictates how successful you are in the branded oncology segment. Fair enough, sir.

So, I'll just add up in this. We just understand there are different types of cancers prevailing in the market, right, which a person gets. So, every cancer disease has a different medicine. So, there are a lot of medicines depending on the stages of the cancer, depending on the different cancer. So, the single product cannot be that larger in a particular segment.

Sure, I understand that. I appreciate that. On the CMO business, what proportion of the third-party manufacturing revenue is repeat business? And how visible, I understand you've already given a growth guidance on this one, but just in case you can elaborate, how visible are the customer orders for, say, the next year or so?

See, we have been doing CDMO business since the last 15 years now, and any partner is associated with us, we have never lost him. And see, we at Beta are the low-cost manufacturer for anti-cancer medicines, and we are one of the largest. Having two plants only for the manufacturing side along with the support of an API makes us unique in the market and becomes the preferred choice for any person who is coming into the oncology or any person who wants to shift their production to any plant. So, we don't see any issues in the CDMO business. Rather, this business is maintaining its space and this year we have shown a very, very positive growth on the CDMO business side.

Thank you. Rishi, please come back to the queue for the follow-up question. Participant, please limit yourself to two questions per participant. The next question is from the line of Darshil Zaveri from Crown Capital. Please go ahead.

Hello. Thank you so much for taking my question, sir. Firstly, congratulations on a really great set of results, sir. Sir, a few of my questions will be more bookkeeping related. So, I just wanted to understand what is our current cost of debt, right? Because I think we are very low debt, around 50 crores, right? So, but we are paying the quarterly interest of more than 2 crores. So, could you help me like with the cost of debt that we have, sir?

Hi. Hi, Dashil. So, our cost of debt generally varies between 8% to 9%. And if you were comparing last year's cost of debt, last year there were convertible debentures on which an interest of close to 7-7.5% we used to pay. So now that has gone because those convertible debentures were converted into equity in the early this year.

Okay, okay. So, sustainably, I think we would have very lower cost of debt, right? Like, that will be less, sir, hitting the boost because even in September. Yeah?

Yeah, yeah, we have lower cost of debt as of now because, you know, you must have seen that fact margin is increased mainly because of the cost of debt reduction only. The debt which was there in the form of the venture.

Correct, correct, sir. And, sir, just another question from my answer, I think most of our, you know, segments are guiding for more than 25% growth, right? So, overall, can we say that your guidance, like, of 20-25% growth is slightly on the conservative side, sir, because the way we are growing, I think we can easily beat that, like, year on year also. And, sir, EBITDA margins that we are guiding are including other income or excluding, sir?

Let me share the growth part. Yes, the guidance is on the conservative side. We would prefer to keep it that way. And the idea is to under-promise and over-deliver. On the margin front, the reported margins that we have kind of disclosed include the other income. The EBITDA includes other income.

So, if we exclude the other income, then the margin is 22%, and if we include other income, then the margin is 23.18%.

Thank you. The next question is from the line of Anubhav Mukherjee from Prescient Capital. Please go ahead.

Congrats on a very good set of numbers. Sir, I have some basic questions as I started threatening the company only for some time. So, how does the receivable days differ for the different business segments we are doing?

So, basically, what happens is our total days receivable is 116 days as of now, which used to be 113 days in 31st May 2026. So, CDMO business, generally, we have a credit period of 75 to 90 days. In branded business, we have a period of 60-70 days. In export, generally, we, you know, go for either advanced payment or LC payment. And in Nibian also, I mean, this is, again, like branded only, so 70 days would be Nibian. But yes, there are some institutional letters, which are, you know, public institution letters. So that takes sometimes much of a time, close to 100-120 days.

Okay, and the institutional debtors are mostly for the branded business?

Yeah, for the branded business. For the tender business, for the tender branded business.

Sir, and so over the last 3-4 years, even with the increase in like export and branded business, our receivable days have like increased. So is it because of more tender business or what is driving this?

See, our volume is also increased. If you see, only three days are increased. From 113 days, it has changed to 116 days. So, this is, I mean, very negligible increase.

So, I'll give you an insight on this. Nibin, let me take up. So, basically, the total branded business which we are targeting this year is around 150 odd crores. Out of which the total institution business we are targeting that is around 20-25 crores. So for government business, the payments do, they do commit that the payments will come in 90 days or 120 days, but most of the time it costs six months. So that's why this receivables are bigger. Otherwise, the government payments will never die. The government payments do come on the due time, but sometimes some governments do not have their budgeted budgets allotted for the payments. And that part of business is not big in terms in the branded. That is only around 20-25 crore from the total of 150.

Thank you. The next question is from the line of Bhavika Singhvi from Neveshai. Please go ahead. Hello, am I out of the way?

Yes, ma'am. Yeah, so thank you so much for the opportunity. So, sir, the first question I have is on the Platinum side. Like, in the Q4 call last year, you mentioned that you have notated the domestic Platinum business, But like expecting to continue the export side. But in Q1, you indicated that because of the realization and net price increase will improve. So just wanted to understand that how we see the Platinum business going forward. Like, do we expect it to grow? Because I think this H1 has been fled, like despite the price because of, I think, API availability. So, how we see the platinum business going forward, like for FI27 and even FI, like going forward in one, two years, if you can answer that. And the second question I have is on the own brand growth. So, basically, what I can see that in Q2, there has been a flat and I think in the last call, it has been mentioned that there has been temporary shutdown. So, I just wanted to understand that how much that has impacted and what are the other reasons for this, like, flat growth, and what we can expect a run rate going forward in H2 for us to be able to achieve the target which we are aiming the 150 growth. If you can explain this two questions to me.

Sir, so the platen business, I'll explain to you, and regarding the branded sales growth, Ms. Rasithos will take up this question. So, for platens, generally, we are not concentrating on the platen business. The reason is the availability of the API. We do have orders in hand, we do have order book for these platens, but since the manufacturers are very less in India, there are one or two manufacturers who are manufacturing platens, so we are not depending our growth on the platen. So, sometimes the requirement is for 5,000 vials. We are just feeding the market with 1,000 vials or 1,500 vials for that particular product. So, this is how we are managing the platen thing. But for export, we do have an opportunity for platens where we do not have to rely on the Indian manufacturers. We can always import for export purpose on advanced license basis. So, that will be taken care. And yes, platen business, overall, it was flat. This half, but you will see some growth in the next, next half of this year. And yes,

just to follow up on this, that we are not planning to discontinue the platinum business because I think the cap is, which has been increased, is going to like come normal in December this year. So, I just wanted to understand that how we see, because I think last to last quarter, we were a little spectacle because of the price and all, costing and all. So, I just want to understand. And also, like, we had our platen as a part of our CMO business as well. So, what's currently, like, are we just focused on export or it's also a part of our CMO business?

No, no, no. It will be a part of all the business verticals, platens. But yes, if the requirement is for 10,000, so we will be delivering 3,000, 4,000, so the market should not be tried. So that we should be available in the market with these brands also. And yes, the platen business, you'll see some growth in the next half. And see, the only reason we are doing platens is it has been supported by the government by increasing the MRPs. Since the MRPs have been increased, so the realization is much better as we used to do earlier. In the previous year. So, now the only issue left is the availability of these platens. So, we are from our side trying our best to source platens at a best price and trying to get a delivery at a good time so that we can feed our current order books in both CMO and branded business.

Coming on to the question, now coming

on to the question of the flat growth of Q2 for our own bandit business. Ashutraj, can you please take up this?

Yes, sir. What do you mean? So, as was mentioned by Mr. Natarajan that there was a temporary shutdown of the plan because of the bottlenecking exercise. So, around 6 to 7 crore sales got impacted and shifted for H2. If you see H2 sales of last financial year, we did business of around 62 crores. And in this H2, we are expecting business of 80 crores. So, all put together H1 plus H2 in this financial year, we will be closing sales close to 150 CR, which is roughly around more than 20% growth.

Thank you. Ladies and gentlemen, you may press star and 1 for asking questions. The next question is from the line of Akshay Shah from BVD Asset Managers. Please go ahead.

Thank you for the opportunity and congratulations for the good set of numbers. Sir, we have acquired the land for R&D purpose and now in last con call, we have said that we are going to dispose it off, but it is not showing in asset health for sales. So, are we going to use it for any other purpose? And if it is for what purpose?

So, we are not using it for any other purpose. Rather, we'll be disposing it off. We're just finding a correct price to dispose it off. So, maybe another six months or one year, since we are paid already and it's in the asset. So, we don't want to sell it off in a less margin. So, we're just waiting it off to be disposed off at a good price.

Okay, and sir, I joined a little late, so it may be a repetitive question, but your H1 growth in export is not that much encouraging, and you have reduced your export growth guidance to 30% from 50%. So, what are the challenges there, and how are we overcoming it?

So, export last year in H1 26, we did 41 crores. So, what happened in last year, we got an opportunity sales of one single order of 25 crores from one country. So, this year, we didn't get, otherwise, if we don't see the total sales, which we are doing regularly in all the countries globally, so we did only 16 crores. But this year, without opportunity sale, that opportunity sale, which we didn't get this year, from 16, we went up to 43 crores. So there is a consistent growth in the export business. Moreover, we have not guided like 30%, as Mr. Natarajan also said, that we won't guide low, but we want to deliver better. As I told earlier, that there are 872 new registrations which are in pipeline, which we are yet to get in coming two to three years, Out of which, we'll get some 50 registrations in this year only. So, the export guidance is not, although we have given less, but 100% the export will be delivering more growth in coming years.

Thank you.

The next question is from the line of Smith Toshi from Oakland Capital. Please go ahead. Am I audible? Yes, sir.

Yeah, so, you are opening our entry immediately.

Sir, sorry, you are not audible.

One minute. Hello, what are you doing? Hello.

So, can you please come a little closer and speak?

Yeah, actually, in your opening remarks, there are two things mentioned. First is with regards to biosimilar partner market evaluation, and second is with regards to oncology manifesting outside of India. Can you please throw some more color on this for better understanding?

Yeah, Mr. Natarajan, can you please?

Yeah. See, on the biosimilar front, the idea is to evaluate opportunities for manufacturing and marketing where our capital outlay is not high. As you understand, biosimilar as a business requires a very high capital commitment up front, and the gestation periods are very long. So, our view is that we would want to take a business model which doesn't require capital The commitment, or rather, limits our capital commitment up front, and over a period of time, as the business gets established, we kind of go, we kind of double down on that business. So, that is what Mr. Rahul mentioned, that, you know, we are looking for a capital-efficient model to get into biosynthesis, and we are obviously evaluating multiple opportunities on that front. On your second question, see, there are certain countries which are our focus geographies, which we have constantly maintained in our investor communication as well, including LATAM, North Africa, Middle East, APAC. Some of these countries are very large, addressable markets, where we have a very strong distributive relationship, and we may want to establish a manufacturing footprint in some of these geographies, because as the world moves towards localization, we believe that catering to these opportunities would require some kind of a local presence.

Okay. So, would it be a greenfield or any acquisition or something like that?

It's going to be customized basis, the country and the opportunity. It would be difficult to give a very blanket response to that.

Thank you. The next question is from the line of Vansi Krishna, a retail investor. Please go ahead.

Yeah, I hope I'm audible.

Yes, sir, you're audible.

Yeah, hi. So, beyond the company's existing growth plans, so what's the next major strategic bet for beta drugs, maybe that could transform the business beyond financial year 30, maybe be it into their participants or complex oncology products, capabilities, assets?

I think, yeah, that is what we felt out. We are evaluating opportunities to get into biosimilars and other complex oncology businesses. Obviously, those will take time. So, those will be a strategic roadmap even beyond 2030.

Thank you. Thank you.

Thank you. Participants, you may press star and 1 in order to ask a question. Next question is from the line of Bhavika Singhvi from Niva Shai. Please go ahead. Hello. Am I audible? Yes, ma'am. You're audible.

Yeah. So, sir, just on exports, I wanted to understand that how much has been the forex impact this quarter we have seen. And also, just wanted to understand that how much growth has been from the volume and the realization driven. If you can make me understand that.

So, basically, what happens is, like, we import also and we export also. So, we import raw materials from China in Adelaide Labs, and we export in beta drugs and Adelaide What happens is that we got a positive wedge over here because, you know, when the dollars go up, we are getting the remittance higher amount. So, our foreign exchange fluctuation is on a positive side, close to 3 or 4 lakhs. If I go precisely, it is 2.5 lakhs rather.

Okay. And so, I also want to know the update of the EU GMP audit which we are expecting to happen this month. So, like, what is the status of it? Because I think in the last call, as you mentioned, that it will happen once the dozier will be filed, and I think we have done with the dozier. So, just wanted to understand on that.

See, we have been giving this information in the market that we are expecting EU, maybe this quarter, this quarter. But to be very honest, we have been following it up very aggressively with the EU auditors. Earlier, there was a line inspection which used to happen in India. So, without dosier, they used to come and inspect the plant. But now, there are new changes that they want the product dosier to be filed in Europe so that they can come and inspect the plant. So, to do that, we had to do some product development as per the EU basis. We are already done with that. We have already filed four dosiers for different lines. Now, we are expecting a letter very soon. Maybe it can happen in next two months, three months, four months. So, we are expecting an audit very soon from EU.

Okay. And so also I can see in the PPT that there has been mention of one API CAPEX additional happening. So can you throw some light on it like what we are doing with that particular CAPEX?

So API right now, what we were manufacturing only the APIs and we used to do it from different stages to further strengthen it. We are coming up with new plant that is for intermediates. So the intermediate we used to procure from China, we just want to be self-reliant and produce those intermediates in India itself. So this is how the API is shaping up. So right from intermediates in API till finished formulations, we just want to do everything in-house comprehensively. The major investment has gone to the new intermediate plant which will be like what we are used to taking it from China, we want to manufacture in India only. Before the plant starts, we are already done with some research development part and we have developed 20 odd intermediates for different APIs which we will manufacture in that plant in next coming to two to three months.

Thank you. The next question is from the line of Avnish Tiwari from Vakaria Investments. Please go ahead.

Hi, Rahul. Maybe if you could draw something on what happened in 2019 and prices for the end consumers sort of came down on drugs and maybe how did your margins shape up, but also how did your volume, was there any elasticity that lower pricing at the end could increase the affordability in tier two, tier three, towns and hospitals so you can protect your pricing, but as well as can reduce your volumes also should. Sure.

So you are absolutely correct. So there are two types of MRPs which are prevailing, two types of things which are prevailing by NPPA. One is the price fixation by the government that are called the scheduled drugs. And one is, which has just come out, that the price has to be fixed by the manufacturer from first point of contact, first point of sale. It is the same thing which happened in 2019, where we revised our MRPs, and from there onwards, we have been maintaining the same amount of gap in our products. So that's why there also, we didn't see any impact on our margins and our realization. The same thing has come in 2026, where we see actually on our realization and our margin, there will be no impact. Simultaneously, even if, like, we are in our total business, 50% is our orals business. So, orals, even though the MRP goes down, these products are not being sold from corporate hospitals. These are being sold rarely from the distributors. So, even if the MRP goes down, the realization will remain the same. The patient will be getting the benefit out of it.

Right. So, I guess more patients can afford this. So, overall, that should help grow the oncology volume set this way, which will be beneficial to you eventually, because your pricing and margins are the same.

Absolutely. Absolutely. And being one of the largest manufacturers, we've seen some good side that we might get some benefit out of this new law, which has, new thing which has come into the market by the government.

Great. Thank you. Bless you. Wish you best. Thank you.

Thank you. The next question is from the line of Ajay Surya from Niveshaya. Please go ahead.

Thanks for the opportunity. Sir, I'm pretty new to the company, so I just wanted to understand on the growth strategy. So, sir, for example, like we've grown almost 30% this half year, but when I maybe removed the Nivea acquisition, which we ended, So, on a like-to-like basis, the growth is pretty much subdued on a like 15% basis. So, just wanted to understand like for maybe this year and our FY30 vision of maybe of potentially 1000 crores, can you give us some quantitative growth with like splitting how much of that will be organic branded oncology exports or the CMO, API, Dharma, and the Navian part. And also, sir, uh, maybe, uh, just want to understand because in last couple of years, like, there have been few external risks which have affected the business. So, like, uh, uh, platinum availability, API availability has remained, uh, uh, a bit concerning or strained. And, and also the capping which has affected the business and also like now institutional revenues taking up bigger portions. So, how can that affect working capital and also the exports as far as I understand from the call is are morally tender driven. So, and also, like, a lot of registrations are still pending. So, what portion of export growth is supported by confirmed order versus, like, expected registrations and tenders which are pending, and only once they get approved, then only maybe export growth can come in. So, just wanted to get more clarity on the growth front from you.

See, in the interest of everybody's time, we had released a document after our 26 results in which we had kind of laid out our vision 2030, and I think that articulates how each of these businesses are going to drive growth. I will sincerely request if you can go through it. Happy to address any questions once you've gone through that material. But overall, we believe the key growth engines for Vita would continue to be our branded business, our exports. And when I see branded, I also include Nivian in that, which will continue to deliver. So Livian will, of course, deliver a much faster growth, and our branded Onco, as I said, we guide for a 20% to 25% growth rate over the medium term. And our exports business will have an exponential growth, primarily driven, as you rightly mentioned, through the commercialization of products as a lending is approved. So, that's the basic framework of how we see, you know, achieving the 1000 growth. In terms of specifics, I'm happy to address your question once you've gone through the document.

Thank you. The next question is from the line of Kumar Saurabh from Scientific Investing. Please go ahead.

Hello, sir, my question is on millions.

I think we have done 66% acquisition. Do you have any plans of acquiring the rest of the stake? And also, if you can highlight a little bit about how this growth has been achieved. I think we have tried to penetrate and incorporate hospitals and, you know, we have got an entry. But you have also mentioned 60% of the subscriber base has been covered in law. So, if you can talk a little bit about the medium growth, how this has come, and you have your planning, and do you plan to buy the remaining stick, given it is a business which is doing very well done? So, and just the second chart first, which is the growth part. The growth has been primarily through deeper penetration, I think, increased prescription of our products, and as you rightly mentioned, getting impaneled in multiple corporate IBS chains. Just like Oncology, Vivian also is moving more and sorry, IVF is moving more and more into organized IVF chain. So therefore, getting empaneled in those chains becomes a very critical driver. And if you see that most of our brands have delivered a very stellar growth. So the growth is completely organic, complete from the brand, which are now, you know, getting recognized by the prescribers. Of course, we do plan to launch a few products in the next half of the fiscal, which will also add to the growth. Second part is, if you look at the addressable market that Nibirian caters to today, it would be in the range of about 1,500, 1,800 crores. And given our size, I think there is plenty of headroom for future growth, both through higher prescriptions and also through increased coverage. In terms of the plan to acquire the remaining 30% I think that is open-ended. One of the reasons we acquired Nibian was because we were getting a very phenomenal team which had worked in the IVF industry for close to two decades, and the idea was to retain them, and to retain them, I think the best way was to kind of give them equity in the business that they are building. Great, sir. And thanks for a great quarter because I think last three quarters there were a few turbulent times and as you had told last time, you know, we are expecting a good result when it has come. Just one last question, sir, on this whole Marvin thing of, you know, the whole oncology trapping. I was there on the call and what I understand is it is not going to have any major impact. But I hope you are taking care of all the scenarios where there could be a back and forth from the hospital side or on the distributor side. And despite of that, the way our portfolio is distributed, we are not going to see major impact on the margin. I hope that is a fair assessment.

We are taking care of entire compliance on the NPPA front and will ensure that our realizations are not being disturbed.

Great, great. Wish you all the best, sir. Thanks a lot. Thank you.

Thank you. The next question is from the line of Bhavika Singhvi from Niveshaya. Please go ahead.

Hello, am I out of here? Hello. Hello, am I out of here? Yes, ma'am. So, sir, just to follow up on the previous question I asked, the reason I asked about the KPEGs on the intermediate side, Because I think in the last few calls, you have mentioned about the KSM, KPEX, which we were planning to do. Like, we have also bought an existing plant for about 9 crores and did an investment of 15, 17 crores. And now we are mentioning about intermittent. So, just wanted to understand that these two are different or this is like one plant which we were talking about. And also, if you can share what total CAPEX is also expected, like are we also planning to do CAPEX going forward for the same facility? Also, wanted to understand on the ATI revenue side, like from the current run rate, do we expect a spike in that, like in the growth in that, or we assume that it will sustain like what we are doing currently? This is And the second question I have on the CMO business. So you mentioned about the NDDS, which we are doing, and you say that it has been helping us to in our CMO business. So I also wanted to understand as we are now focusing more on the own brand. So how much we see the NDDS product going in the own brand? And what are the current revenue we are doing from the NDDS? Like, is this quarter, how much we did from the NDDS product, if you can share that information, that's all.

So, taking off all the questions will be very difficult now, and we have already mentioned about the NDDS thing. So, on the API front, we can brief you that, yes, it's the same plant which we have been talking about. The KSM and Intimidate is the same word. So, it's the same plant we have done investment and this plant will be starting live by December or January. Almost the entire machinery is in place. We are just doing some qualifications and some approvals are yet to come from the department. So, this plant will be live by January 27th. And coming on to the API business growth, so till now we have been selling API in Indian market. There have been a lot of market since we have got the plant audited from Kofa Press for API also. We are expecting the approval to come in next one or two months. So once we get, so our plant is also, the API plant will be fix approved. So this will open up many opportunities to supply API in different countries overseas as well. So the opportunity there, this business has not been even tagged and has not been even covered by us till now. So the opportunity is big and to further enhance it, to further enhance the opportunity, we are coming up with intermediate so that we should have a proper DMF available, DMF and ASMF available within us. So, tomorrow, if an audit comes, we can get both the plans audited for the Intermediate, for KSL, and for the API. So, the opportunity is huge.

Thank you.

Just a quick introduction for everyone who is tracking the company newly, they can reach out to Valoram Adminers who are IR firm, and they will help us. They will help you connect with us to address your question.

Thank you, sir. Ladies and gentlemen, we will take this as the last question for today. I now hand over to Mr. Rahul Batra for closing comments. Over to you, sir.

Thank you. Thank you all for attending our call. We at BETA will continue to deliver 20-25% growth. Along with it, we will keep on evaluating different opportunities coming on the way on the oncology side, whether it's biosimilars or production in different countries. We want to be at the top of manufacturing and marketing oncology medicines in India and overseas. Thank you.

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

Thank you.

Thank you.

Thank you.