Ind-Swift Laboratories Limited (INDSWFTLAB) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good afternoon, and welcome to InSwift Laboratories Q1FR27 conference call hosted by ConfortLip Partners. As a reminder, all the participants' line will be in listen mode only, and there will be an opportunity for you to ask the questions after the presentation concludes. Please note that this conference is being recorded. Before we begin, I would like to point out that this conference may contain forward-looking statements about the company, which are based upon the beliefs, opinion, and expectation of the company as of the date of the call. These statements do not guarantee the future performance of the company, and it may involve risks and uncertainties that are difficult to predict. We represent the investor relations for INSWIFT Laboratories Ltd. The company is This is represented by Mr. Gagan Agarwal, who is a Chief Financial Officer, Mr. Pardeep Verma, the VP of Corporate Affairs and CS, and Mr. Shalika Malhotra, DJM Finance of INSIFT Laboratories. I would now like to hand over the call to Mr. Pardeep Verma for his opening remarks. Thank you, and over to you, Pardeep Sir.

Thank you. It continues to be a molecule with a large and growing addressable market globally. Agitabine and Atorva statins saw the sharpest growth in the portfolio with year-on-year growth of 246.97%, more than tripling to 80.78 crore in FY26 from 23.28 crore in FY25. Pexofanilin remained a steady contributor at 74.32 crore in FY26, broadly in 9 weeks, 79.67 crore in FY25. Metformin, Qtapin, and Femciclobis each registered excellent crore during the year, with Qtapin nearly doubling to 19.75 crore, and Femciclobis more than doubling to 18.64 crore in FY26. This product mix underscores the depth of our export portfolio, and going forward, our upcoming launches, including Plethromycin Dye Suspension with expected launch in the year, and Azermo Prelzol with Realtris and Aerodex with expected launch in FY28, are expected to further strengthen this revenue base over the coming years. Segment-wise sales break-up. Turning to our segment-wise sales break-up for the quarter, we continue to see a meaningful shift toward our export business, which remains the primary growth engine for the company. Our brands within our export segment contributed 57.20% of quarterly sales in Q1 FY27, up sharply from 48% in Q1 FY26, reflecting deeper own brand penetration, Thank you. Contributed 6.41% of the sales in Q1 FY27 compared to 10% in Q1 FY26. Ethical divisions stood at 6.14% of the sales in Q1 FY27 compared to 7% in Q1 FY26. Contract manufacturing within domestic contributed 3.61% of the sales in Q1 FY27 compared to 6% in the Q1 FY26. Overall, our export business, comprise own brands and contract manufacturing together, has scaled up meaningfully as a proportion of total sales, while our domestic segments, namely branded-generic ethical division and contract manufacturing, continue to provide a stable cash-generative base for the company. This growing tilt towards exports and particularly towards own brands is consistent with our stated strategy of deepening our regulating market present and improving overall profitability. Financial highlights. Turning now to our financial performance for the quarter. Operating income grew 21.16% year-on-year, 186.08 crore from 153.58 crore in Q1 FY26. Operating a beta-improved 2.85 times year-on-year to 33.32 crore from 8.66 crore in the corresponding quarter last year. Operating a beta margin expanded sharply by 1,258 basis points year-on-year to 17.91% from 5.33% in Q1 F by 26. Pat, excluding exceptional item, stood at 24.68 crore, a 2.04 times year-on-year jump from 8.12 crore. Patent margin improved by 827 basis points year-on-year to 13.26% from 4.99% in the corresponding quarter of the previous year. This consistent improvement across our revenue, EBITDA margin, FAT margin, and export mix gives us confidence in the operating momentum we are building, and we remain focused on sustaining this trajectory through the rest of FY27. With this, I now hand over the floor over for the question and answer session. Thank you.

Thank you, Paldip, sir. Participants are requested to raise their hands for their questions. Also, one can request their questions in the question box. We will wait for two minutes for the queue to form. We have a first question from Mr. Aryan Bhatia. Sir, you may unmute and proceed.

Hi, thanks. Thanks for the opportunity. So my first question is on our CDMO partnership, which we have commercialized this quarter. What was the contribution from this partnership in this particular quarter? And what is the growth? Can we expect from the CDMO partnership over the next three years?

Yeah, I see. The growth story which Mr. Pradeep told, this was for the agreement with Vatrace for two products, mainly ibuprofen and clary granules. And we have just kickstarted this product, this project, and sales for only these two molecules was hardly 5 to 6 crores. The growth of these molecules will reflect slowly in quarter 2 and quarter 3.

Okay, so we have only booked around five to six crores in this quarter. Yes. And we are expecting almost 200 crores. Okay. Yes.

We are expecting approximately 100 to 130 odd crores in these two products. Not the entire 200 crores in year one. The graduate will increase.

Okay. So this partnership, which will contribute around 200 crores. So that will not be in this financial year. It will gradually will come in by a period of two years.

Okay.

Got it. And so what is the margins in this export business for both CDMO as well as our own brand? As in domestic, you have given ethical. We have around 76% gross margins and our own brand is around 51 and CMO is around 42. So what was the margins in the export business?

In the export business, we are enjoying approximately 55% margins.

Okay. Gross margins?

Gross margins.

Okay.

And so my last question is on the capital allocation. So if I look at our cash and investments on our balance sheet, it is around 250 crores, right? So how are we looking to utilize this to drive the growth further? And second question, similar to this is what is the value of the stake, which we We have in Synthamit around 7.8%. So are we looking to realize that? And how are we looking to grow our business from this cash and investments on

the 250 crore cash, which is on the books that will be gradually deployed in the business over a period of two and a half years time? What we are doing is we already have a land bank, which we bought in a couple of years. So, the Jammu facility, which we explained right away, we are getting it audited for PICS and EU. Parallelly, we are setting up a new warehouse near to our factory premises, wherein the existing warehouse will move to that location, and the production facility will be used to enhance the production of existing molecules. The project which we have signed with Viterace, there are another two customers which we are actively engaged with for signing off a deal with them for, again, same products.

Got it.

So that 250 crores will be deployed in CapEx over a period of two and a half years, approximately. And regarding your question on investment in SynthiMed, that is growing. Currently, there is no plans for divestment. And this year, the budgeted EBITDA of SynthiMed is about 750 odd growths, and we had gone through their first quarter results, and they are on track on achieving that now.

Got it. Got it. Thank you, sir, and best of luck for the upcoming future.

Thank you.

Thank you, Arian. Just a quick reminder to everyone, if you have a question, please raise your hand using the reactions tab. Also, one can request the questions in the question box. We have our next question from Mr. Zakir Nazir. Sir, you may unmute and proceed.

Sir, congratulations on a very healthy set of numbers. Would you state this as a turnaround quarter in terms of how IntSwift is panning out its next phase of journey, sir? And my next question is, you have given a target of 1,200 crores. So, the way you are growing looks like you will achieve it much before your stated timeline, sir.

Thank you very much for showing confidence and staying invested with the company. See, I will not say it a turnaround because you are aware that after the merger, there were some litigation and other expenses which the calculation business was bearing from one and a half years. Yes. So, that cases are all over and the pass is now passed. So, immediately, the real picture is among the investors right now. We were saying this to a lot of investors that minimum 18 to 20% EBITDA margins are there in this business and now it has been clearly depicted.

So, this 18% is sustainable EBITDA margin, sir?

Yes. Yes. 18% is fully sustainable And we plan, if the sales, we are able to increase quarter and quarter, they might go up to 21 to 22. Fantastic, sir.

And, sir, would you look at your holding in Synthemet as an investment or as a strategic partnership, sir? I mean, would you liquidate it sometimes or would you hold it for a strategic reason, sir?

Currently, there is not even a discussion happening internally for liquidation. So we'll like to hold this for a longer period of time. We see more growth coming in that business.

But at some time, you would want to monetize it?

Maybe, yes. Maybe, yes. Because, you know, the SynthiPad business has also been run by a private equity. And normally, after five years' time, they also like to take an exit.

So, would you be wanting to take an exit with them, sir?

So, we have a tag-along, right?

Okay, sir.

With SynthiPad. So, whenever they exit, we have a tag-along.

Okay, sir. Thank you, sir. And best wishes for the year. And years to come, sir. Thank you, sir.

Thank you, Zaki, sir. Just a quick reminder to everyone. If you have a question, please raise your hand using the reactions tab. Also, one can request their questions in the question box. We have our next question from Mr. Darshil Zaveri. Sir, you may unmute and proceed.

Hello. Good evening, sir. Thank you so much for taking my question, sir. Firstly, congratulations on a really great set of design, sir. Sir, I just wanted to know, right now we are doing really great margins and you said they are, you know, sustainable. But with regards to growth and revenue, I think- I'm sorry, sir.

Your voice is a little unaudible.

Hello, hello. Is this better? Can you please read your question, please? Sorry. No, no, sorry, sorry. Hi, I was just saying that, you know, we've done really great numbers in this quarter. So EBITDA margins you feel are, you know, sustainable, but in terms of revenue, sir, if we have 50% growth, so it will be more towards H2. Is there a seasonality or, you know, what are the factors that will drive this growth, sir? And going forward, when we are going for more partnerships, right? So, our performance can be higher than the 20% that you've stated, right, sir?

Yes, sir. Regarding the new partnerships that are being discussed, I don't see this coming in this year. That will come over a period of time. And regarding the sustainability, there is no seasonal impact in the export turnover. The domestic sales, yes, you can say is a little bit seasonal. On export size, the major push came from our newly launched molecule, acetimide plus atovastatin, which we are supplying in Europe. And in the second quarter, we are expecting a major push from Aerotex on that macrogol new molecule, which we launched. And in third and fourth quarter, we see a lot of progress coming from Ibu and Clary-Grennus. We are quite hopeful that the numbers which we have projected and which we have given to the investors, we are quite hopeful to achieve that numbers.

Yeah, yeah, sir. I think, sir, on the record, I think we will be able to surpass that also faster. So that's not a worry, sir. I just wanted to know, sir, for right now, when we are planning for Capex, right, with such a high growth, what is our utilization then, you know, if you want to scale up faster, what is the timeline or, you know, when such As new molecules are coming up, will we have a dearth of capacity? Could you help us along those lines, sir?

No, sir, there will not be any dearth of capacities. We are well prepared and we are committing to our customers as and when we will be ready for commercialization. So the day we committed for Y-Trace, we delivered. And accordingly, since the molecules which we are already discussing with the customers are the same which we are manufacturing right away. R&D is working on five, six molecules, which should come in 27, 28, 29. And once these filings are done, only then we'll start on capex for these molecules. So currently for three years, I am ready. I have a roadmap that this much I have to build and this much I have to sell.

Okay, that's really great to know, sir. And I just wanted to know, like, so we, with the cash that we have, we want to, you know, build our own facility or are we looking at acquisitions also? Because, you know, that can maybe, you know, give us maybe some faster way of, you know, monetizing. Are we looking at some acquisitions?

The CapEx is one part which we are to do because it is an EU compliant facility, which is one of the largest in North India. On the acquisition front, yes, we are looking to acquire some brands in the domestic market. Plus for some inorganic growth, we are speaking to, we are speaking with our existing three, four customers overseas for some kind of a partnership wherein we can We can tech transfer our molecules and then we supply it worldwide, but too early to say we have signed some agreements with our customers, but since that due to the war, the pace is a little slow to announce as of now.

Okay. That's really great, sir. Just last question from my end, like, sir, if we have to, you know, right now, we have to look at our, you know, some FI 30 vision. What, where would you want to take the company? Like, what is the area that you want to focus on? And, and, you know, what is our target? Like, in terms of, you know, revenue profits or molecules, anything that, you know, you would like to say, sir?

FY30 is a very long way to go, FY30. But yes, we would look for a revenue of minimum 1,500 crores of a revenue and maybe a net profit of approximately 200 plus.

So the margins that we get are sustainable, right? Like overall, even the new molecules will have sustainable margins, right?

Yes.

Oh, that's great. So that's it from my side. All the best. Thank you, sir.

We have our next question from Mr. Hemant Soni. Sir, you may unmute and proceed. Mr. Hemant, you may proceed with your question.

Hemant, you are on mute.

Hello? Yes, sorry. Very sorry, sir. Sir, congratulations on a very good set of numbers and thank you for providing the opportunity. Sir, I just wanted to highlight one thing. I think, sir, I personally feel that 1200 crores of revenue guidelines given by you, by FI29, seems to be a little conservative. So, sir, any idea of revising it, sir?

Sir, not at this stage. Maybe after, if we are able to overachieve our results this financial year, we may revise this. We don't want to overproject and we want to say that we will do this one year in advance. But by the end of the financial year, we will revisit all these numbers.

And, sir, one more thing I wanted to ask you, sir, what kind of incremental revenue we are targeting from the CDMO business in this financial year?

Sir, we are already into the CDMO business. The two opportunities which we got a couple of years back would give us an incremental revenue of approximately 150 crores in totality. And about the numbers, we should do an export sales of around 750 crores, and 45% of this should be the CDMO business.

Sir, I didn't get you. Can you come again, sir?

The total export sales which we are expecting this year is 750 crores, and over 750 crores, for approximately 45% would be through the CDMO business.

Okay. Okay, sir. Thanks a lot. Thanks a lot, sir. I'll join with the queue.

Thank you. Just a quick reminder to everyone. If you have a question, please raise your hand using the reactions tab. Also, one can request the question in the question box. We have our next question from Mr. Amish Kanani. Sir, you may unmute and proceed.

Yeah, hi, sir. Congrats on the good set of numbers. Sir, you did answer about the CDMO, you know, overall this year. If you can give us, sir, I'm new to the company. So one, if you can just give us a flavor of, you know, why did we do that transaction of selling off this API? Maybe it's a bit older, you know, story. But one, if you can quickly recap, why did we do that? And in that context, sir, I wanted to know whether the R&D, you know, normally we have seen, you know, a good generic manufacturers and CDO manufacturer has a good handle on API manufacturing as well. Since we have sold some of the units, you know, through this transaction, I wanted to understand our, you know, R&D capability for the rest of the organization that we have retained, which gives us, you know, the edge for the CDMO. So, happy to note that we have signed up for new products and signed up with new partners. Definitely, we would have the depth and hence, you know, we have this. But if you can give us, you know, the flavor of, you know, what is it that, you know, we are offering to our partners? And how do we see that, you know, within that FY29 numbers, how do we see CDMO within the overall scheme of things? And, you know, what kind of margins does it have, steady state separately?

Sure, sure, Amish Ji. So, going a little back to our API and formulation business, see, Institute Limited was the parent company which was incorporated in 1986. And the API company was incorporated in 1996. So, the reason was basically both the companies had high leverage. The, you know, the gestation period is large. There was a lot of debt on the company. We were not able to repay the debt because the gestation period was large and the repayments, you know, we came in a year or two years time. So, both were going through a very bad phase. They were admitted into CDR also in 2012. 2014, we got admitted, even the CDR of Institute Limited got failed in 2015. We saw ARCs coming in, debts being sold to ARCs, we're doing an OTA settlement. So there came a period in 2018, wherein we settled the entire debt and borrowed money through Edelwee's fund. And the growth story in API at that point of time started. We sold, the debts were too high to repay through running these businesses. Okay. So the decision was very clear that API business is doing good. We should exit that API business, get value, make the group debt free. So firstly, the deal was signed with the industries. When it was the time to pay, the deal fell off. Then we started discussing this with SynthiMed, who was our India Research and Fund. And 24, we sold off the API business. We got net-net, approximately 2,000 to 2,100 crores, paid entire debt of both the companies should be to the tune of approximately 1,500 to 1,300 crores. Plus that slum sale tax. And at that point of time, we were having a cash on books of plus 500 crores. First, both the entities sold off all our issues last year. And now idea is to make it as big we were running the IPM. We sold off it when we were doing a revenue of across 1200 crores and a beta of across 250 to 300 crores.

Yeah, sure. Answer about R&D capabilities that we already have.

On the R&D capabilities, we had an R&D facility earlier with INSYP Limited and INSYP Laboratories Limited separately. We have an R&D consular right now. We have bought new land for setting up of a new R&D facility also. Currently, they are doing the regulatory compliance, track transfer. Two things. Plus, they are doing global filings also. With the existing customers, they are discussing the new products also. We can share the list of products that R&D along with our customers have identified. And we have also decided a tentative launch of these molecules too. If you want, I can give the names right away or I can send an email to our partners, they can forward it to you.

And then, sir, you know, our presentation did give us flavor of, you know, the kind of product that we have and what kind of, you know, size they have retained. So congratulations for being transparent in terms of, you know, giving product wise detail. The question, sir, is, you know, if you can give us the overall addressable market opportunity that we might have over the next two to three years. We did have a slide which is there, but if we can just recap, it will help us to kind of, you know, maybe model, you know, the CDMO size. And I think you are saying that we will triple the CDMO over a three-year period from 180 crores to 635 crores. So this is part of that FY29, should we assume that FY29-1200 crores will have say 600-650 crores of CDMO. So is that the way to look at? Yes. Okay. And what is the addressable market size that we are approaching? And also, if you can just, on the same line, if you can elaborate, I saw some of the Cheshire products being, you know, approved. Maybe we are doing something different in terms of packaging. If you can give us the flavor of, you know, the FDF products, which are, you know, differentiated in terms of packaging. There's a dry suspension product there and two sessions can give us a flavor there that we have to serve.

So the questions that you really asked are a little more on the technical side. I think I will get back to you through our partners. But on that Macrogol, this is a new molecule which like we have an ESOP goal in India. It is called as a Macrogol which we are supplying to Vitress and to Aerotex in Australia. Yes, it is a very different and unique packaging. We can, in one of our next presentations, when we upload, we can capture the photo of the dry suspension and the Macrogol sessions also, which will give you a little chance to see, is it really different or no. On the market size, I think I'll have to come back to you on this.

Sure, sir. We'll wait, sir. And maybe I'll get in touch with the IR and through them. Thank you, sir. And all the best.

Thank you, Amit, sir. Just a quick reminder to everyone. If you have a question, please raise your hand using the reactions tab. Also, one can request their questions in the question box. We have our next question from Mr. Mohit Jangir. Sir, you may unmute and proceed.

Yeah, first of all, congratulations on the great set of numbers. Sir, I wanted to know what would be the optimum revenue which is possible from a global business unit and what is the capacity utilization right now or what was it in Q1?

See, we are gradually increasing our capacities every day. So, the plan which we have given till 29th should be the 90% of capacity which will be used for a period of time.

Okay, I wanted to know what was the capacity utilization in Q1 and if you can...

Yeah, for the Q1, I'll have to get back to you because we work on the capacity utilization But anyways, the capacities for Aibu and the granules was available with us because some bio-batches were sent for their approval, but it should be approximately 70% of the capacity was utilized.

Okay, so there is a headroom to increase around 20%. And sir, I can see the number of those years, which we have got approved has increased from 1900 to around 2100. So what is your target by this year and what would be that number?

We should give 400 plus.

So from 2100 to 25% is where we will reach by Q4 of this year. Okay. And sir, going by your guidance in the presentation, so we are targeting 20 to 25% of care in the medium term. So beyond F527, can we expect this kind of growth rate with EBITDA margins above 18%?

Yes.

Okay. Okay, that is it from my side. Thank you. And let's do flow.

Thank you, Mohit, sir. We have our next question from Mr. Meet Katrodia. Sir, you may unmute and proceed.

Yeah, hi, sir. Am I audible? Yes, sir. Yes, sir. Congratulations on a very good set of numbers and turnarounds, sir.

Thank you, sir.

Yes, sir. Just a quick question on, you mentioned that we are also talking with another two customers for the existing product that we are supplying in CMO partnership, right? So, if we crack that customers, then what kind of capex we will put in? Maybe from that capex, how much of revenue we can generate?

See, the capex should be between the tune of 50 to 75 crores.

Okay.

And the revenue should be 150 plus.

Understood. And could you name these customers with whom we are discussing?

Not at this stage. Not at this stage. We are waiting for the agreement to sign off. As soon as we sign the agreement, we can share the names.

Understood, understood. One question, sir, just a little bit longer side, that when we select customer or molecule or product on which we are planning to work and then launch, right? So, what kind of margin profile and what kind of customers or maybe therapeutics area we choose? So, basically, I want to understand the selection criteria of ours that how should we think while selecting the products?

So, while selecting the products, first point is very clear to us, it should have minimum 50% of gross margins. That is the starting point, minimum 50 to 55%. Secondly, the products are always dispersed with the customers. And how much confidence they have in R&D to deliver. So it is not on the basis of any therapeutic segment. Basically, since we used to manufacture 15-20 different therapeutic categories in our API business, so our tendency from that point of time was whatever products which we are manufacturing in API, We should follow that in the formulation business. So going by that, if you see most of our APIs currently are also coming from the Synthema domain. So whichever new molecule we use to develop in the API business, we started working on the molecule in the formulation business again. So right now also the R&D has worked on molecules which have been successfully commissioned in the API business. I'll give you the names, like rosuocetin is one, which is an old molecule now. Then we have a mira background, ceta-glyptin, emigroflapein. They are all cardiovascular, antidiabetic, urology, and gastroinspectrum.

Okay, okay. But sir, in these products, there will be a lot of competition, right? Because so many companies are selling, then is it easier for us to get in this kind of gross margins or do we have any unique process for manufacturing?

No, there is never a unique process. It is only the R&D who works on the molecule and comes up with the costing. They are worked upon basis and agreement with the customer only, where they want to launch and when they want to launch. We don't want to spend a single penny in R&D before we sign off an agreement with our customers. And in most of the cases, all the development costs which we bear is borne by our customer.

Understood, understood. And sir, in general, in CDMO business, we have to also do some kind of upfront, let's say, R&D expense even for the customer, right? So, because we are also developing the molecule with the customer still, which is not maybe being launched, but then do we need to change our thought process that before even commitment, And we need to have this kind of facility of R&D where we can even improve our, maybe the, let's say earlier we are only doing R&D for generic drugs. But let's say if we want to do something more special like patented drugs also, then in new R&D labs, are we adding any new incremental capability or processes?

See, yes, we will work on this. Because currently, R&D is not that much scalable that they're parallelly working on the processes also. Because once the process is developed and filed, you can work on the new processes, but it takes a very long period to change your processes and filings. And you don't gain much in the formulation business. It is an active thing Everything which is being done in the API business. Not in the formulation business. On the CDMO selection kind, like we did with Ytrace, Ytrace paid us approximately 2 million US to work on these molecules and come back to us for developing the side total cost. So this money will be reimbursed to him through his orders.

Got it, got it.

It was all financial commitment from Bytrace. We didn't spend a penny unless and until we signed up the agreement with them.

Wonderful, sir. Wonderful. So, sir, Bytrace, we have a very good relationship with Bytrace or how did we correct this client and even they have given us 2 million?

We enjoy a good relationship with Bytrace because we are supplying to Bytrace from the day we started our export business and it's been more than 10 years now with Bytrace. And Mr. Sahil Munjal, who is the MP running the international business, enjoys a very good reputation with all our overseas customers. And one thing more I'd like to add is he's being assisted by Mr. Varun Chhabda, who was heading our export sales of API business. Two years before we sold off our API business, we particularly transferred him to the foundation. So that experience is also helping us.

Understood. And sorry, going forward,

whatever KPX we do, going forward,

let's say whatever KPX we do, majority would be in CMOS, CDM or in branded genetics with our own brand also.

So it will be a mix of all. So on our own branding also, the filings are being done, the existing We are doing territories, we are doing the filings, and we are discussing all these products with our customers. So it will be a mix of both. Got it, got it.

So any new registration are we expecting, sir? Any key registration we should expect in, let's say, in New Year's future?

Yes, we should expect, but we'll come back with the list. We are not having it handy right away. But yes, we can come back on the new registrations.

Got it, got it. Done, done, done, sir. Thank you so much, sir. All the best. Thank you, sir. Thank you, sir.

Thank you, Mitch, sir. I request participants to limit their questions to two. We have a next question from Mr. Gaurav Shukla. Sir, you may unmute and proceed.

I'm an advisor?

Yes, sir. Yes, sir.

Sir, congratulations, sir, for good set of numbers and thank you for giving me the opportunity. Sir, as we see the gross margin near 60%, sir, when can we see EBITDA margin marching past 20% number?

Sir, we want to see it as early as possible, but we should expect this after the second quarter, we believe.

After the second quarter. Thank you.

Internally, we plan on second quarter, but I don't want to commit so early. But third quarter is that which we are fully expecting to increase our EBITDA margins from it.

Okay, sir. And sir, we are guiding 1200 crore for FI29. When more than 50% growth this year, as in your PPT said, take us near 1000 crore.

Then, sir, why we are getting such in lab?

If we are reaching 1000 crores in this year, 50% growth, then it is too conservative.

We are expecting, sir, 900 crores this year because the targets which we have projected, we may achieve it early also, but it all depends upon the capacity expansion which we are doing in our facility. It is subject to capacity expansion also. If we are able to complete that expansion well in advance, we might achieve these numbers early, one year in advance. So, but because there are some riders, they are linked to the increase in revenues. So, that's why we have put a little mark.

Okay, sir. Thank you, sir. And all the way for future, sir. Thank you, sir.

Thank you. We have a next question from Mr. Nethik Mohata. Sir, you may unmute and proceed.

Hi, sir. Good afternoon and congratulations on a great set of numbers. So, my first question is regarding our existing portfolio. So, the statin combination drug had, you know, really boosted our numbers in FI26. So, is this drug also under some kind of partnership like the Viatris one or this is something that we are selling under our own brands? Plus, you know what kind of growth do we see in this particular molecule? Can we expect more than 20-25% growth this year also?

So, I believe your query is relating to the ibuprofen?

No, no, the statin combination drug.

Oh, the EZTMI but over statin, yes. It was a very good performer for us in the first quarter. I think we did a sales of approximately 25% of this molecule only in the first quarter. And it should increase gradually every quarter.

And sir, this molecule, are we selling it under our own brand or do we have a partnership with someone?

We have a partnership with Stephen Becker on this molecule. We have agreed on our transfer pricing for this product. And at the price which our customer is selling, we get 50% profits thereafter. So, supposingly we are supplying at 100 rupees and our customer is, a different bakery is supplying at 150, 200 to different set of customers. The differential pricing we are getting through profits. We enjoy 43% of that also.

Okay, that's great, sir. Sir, coming to the CAPEX side, so I think we have guided for almost 250 crores of CAPEX in coming two, two and a half years. And the first outlay would be towards the warehouse that we are planning. So, sir, can you quantify like how much CAPEX amount will be spent by the company in FY27 and then in FY28?

250 roads is the capex which will spend over a period of two years time. So that is split between warehouse and our plus capacity enhancement, our existing facility plus Jammu division. So all three have already been kick-started.

Okay. Fair. And so lastly, the Viatris products that we have launched this quarter. So how has the product reception been from, you know, The partner end, is the product well accepted by them or, you know, are there any complications or not?

No, there are no complications. The product has been well accepted by them. And in this second quarter, we expect these volumes to grow double than which we did in the first quarter.

Oh, great. Great. Thank you, sir. Thank you for the opportunity. Thank you, sir. All the best. Thank you, sir.

Thank you. Due to time constraint, we would now like the management to give the closing remarks.

Yeah, thank you. I would like to sincerely thank all of you for taking time to join our conference call. It has been a great player interacting with you all, and we greatly value the opportunity to engage with our investors and analysts and provide greater insight into the company's business and progress. We are committing to creating greater investor awareness and maintaining transparent and meaningful communication with the investment community. Thank you for your insightful questions and for the interest and confidence you have shown in Institute of Robotics. We truly value the engagement and constructive feedback from our investors and analysts as it helps us continuously strengthen our business and further improve our communication with the investment community. Once again, thank you all for your continued support and participation. Thank you.

Thank you, Pardip sir. Thank you all for joining INSWIFT Laboratories Q1 FY27 conference call hosted by Confedlib Partners. Participants may now sign off.