Earnings Call Transcript - XNSE:SAIPARENT 2026-11-02

Operator

Ladies and gentlemen, good day and welcome to SAI Parent Ereals Ltd. Q2FY27 Earnings Conference Call, hosted by MK Global Financial Service Ltd. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Shashank Krishnakumar from MK Global Financial Services Limited. Thank you, and over to you, sir.

Shashank Krishnakumar, Head of Investor Relations

Hi, thank you. Good afternoon, everyone, and a very warm welcome to SAI Parental Limited's Q2 FY27 earnings call hosted by MK Global. I would like to thank the management for giving us the opportunity to host this call. And on the call today, we have the Psi Parentals Management Team represented by NLG, the Chairman and Managing Director, and Mr. Mark, the Chief Executive Officer of Nomad. I'll now hand over the call to the management team for the opening remarks, and then we'll open the floor for questions. Please go ahead, sir.

Anil Kumar, Chairman

Thank you, Shashank. Good evening, everyone. Thank you for joining our Erring's conference call to discuss the performance of Q2 and H1 FY27. I hope everyone had an opportunity to go through the financial results, press release, and investor presentation, which are uploaded on the stock exchanges as well as on our company's website. Our Chief Financial Officer, Mr. Anil Kumar, is unable to join us today because of a personal health emergency. We wish him a speedy recovery. In his absence, I will also take you through our consolidated financial results after my opening remarks and mass update. As I mentioned last quarter, Nomad Pharmaceuticals has been consolidated from 12 November 2025. So, our year-on-year comparisons are therefore not comparable. So, I will focus mainly on the sequential trend. Q2 FI27 is the quarter in which our transformation began to show in our profitability. Consolidated revenue from operations rose 9% sequentially to 196 crores. H1 FI27 revenue was at 376 crores. Around half of our FI27 revenue target of 750 crore. We have always guided to a 45-55 split between the two halves. With the fourth quarter historically our strongest, so we are ahead of the plan. Gross margin rose from 40.9% in Q1 to 47.5% in Q2. Raw material cost actually fell by about 3%, even as revenue grew by 9%. This was driven by tighter inventory management. Inventory was on the higher side last quarter. During Q2, we worked through a major higher cost inventory, introduced strict fast-end, fast-out controls, and implemented a new RP system, which has brought inventory levels down materially. These controls remain in place, and so we see to keep a gross margin above 40% in the next all coming quarters. First, EBITDA grew 67% sequentially to 41 crores with EBITDA margin at 21.1% against 13.7% in Q1. Employee and other operating costs together rose by less than 6%, so most of the gross margin gained flowed through EBITDA. For the first half, EBITDA stood at 66 crores with margin of 17.6 percent. Already ahead of approximately 17 percent we guided for the year. Deplication amortization rose to 25 crore from 8 crore in Q1. This reflects the capitalization of new metasets and amortization of molecules acquired from cypressic laboratories. Despite a more than threshold rise in the depreciation, more than a threefold rise in the depreciation, Profit before tax study quarter-on-quarter, and profit after tax grew 33% to 10.5 crore. For the first half, PAC stood at 18.4 crores. Then I come to IPO proceeds deployed and both acquisitions. Last quarter, I outlined a proposed variation in the use of our IPO proceeds. Shareholders have since approved it, and I am pleased to report that the both transactions are now complete. We will be investing 98.8 crores of IPO proceeds, that is 83.83 crores in Psycrete pharma, and I already invested 15 crores in PathTech Laboratories, each for a 60% stake. The balance of 3 crore from the amount originally earmarked for the recent center has been allocated to general corporate purposes. The purposes for which we raise these funds has not changed. EUGNP compliant injectable capacity for regulated markets and the dedicated research and development platforms. Only the manner of execution has changed, and in both cases, we have acquired materially larger assets for the same outlet. So, now I come to PsyCriti Farmer, this new injectable facility on track for July 2027. At Saikriti site at Bumbadala, outside the outer indoor, foundation works are underway and construction is accelerated and as our equity comes in, it will progress much more faster. The layout design is complete, and purchase orders have been placed for all the four process lines, liquid and light laser injectables, GLP pre-filled syringe injectables, pre-filled and cartridge combi line for GLP products, dry powder filling, and ampoule filling. Clean utilities and HVAC systems are in detail engineering. We are targeting completion in July 2027. The facility is being built to EU GNP and USFDA standards. It will take our injectable capacity to approximately 154.66 million units, above 47% more than the upgrade of units 1 and 2 which would have delivered. More importantly, it adds two new capabilities, Our existing domestic critical care franchisee of around 52 crores will also be manufactured from this facility. Unit 1 and 2 at GDMetla will be discontinued once it is commissioned. We expect accreditation within about 12 months of completion with exports from FI 28 and Europe from FI 29. The total project cost is estimated at 215 crore. Our contribution of 83.83 crore is unchanged from the originally year market figure. The promoters of PsyCritic fund balance 40% of equity, and the remainder comes through project debt with a 3-year moratorium and 7-year repayment schedule. Now I will come to PsyCritic Laboratories, a group R&D consolidated division. We completed the acquisition of 60% stake in the Pratek Laboratories on 15 September 2026 and has been renamed as the SAI Pratek Laboratories. It is now our dedicated R&D subsidiary and all group R&D has been consolidated yet. The residual 40% may be acquired through a right of first official at the same valuation. Cy-Prathet brings 65 personnel, including 28 research findings, with 3 years of operating history in lipolized, liposomal, and nanobased complex injectables and in an oncology portfolio. Its portfolio spans 174 molecules and 285 SKUs across critical care and oncology. It will develop further products for Cy-Parentals, for Numad, and for Cy-Critic. The biggest advantage of this acquisition is technology transfer. Sci-Protect has already delivered a complex critical care injectable portfolio, which will be transferred to Sci-Critic's new facility for our own manufacturing. That means we do not lose time developing products after the Sci-Critic facility is built. Pre-acquisition molecules remain with Sci-Protect's existing shareholders, but the group may use them for its own manufacturing. And SiteKriti is entitled to transfer them to the upcoming site. Until now, SiteKriti has been developed only for its own use and has no revenue stream. From next quarter, we are beginning to sign R&D and CRO development contracts with external clients with revenue generation projected from FI28. Our in-house dossier records supports this R&D platform. We have developed 98 dossiers in-house on PIE stand-alone. 45 products are commercialized and further 76 are under development, targeted for FY28. Besides them, we sit on 599 approved registrations and more than 451 TGA dossiers acquired with Nomad. Now, I am coming to Unit 3 expansion. The expansion at Unit 3 Boon Gear is almost completed. The new block will start commencing from December 2026. Production capacity will rise from 85.5 million to 155 million units a month, an increase of 81% from this after completing this new block. The expansion adds a high-capacity ointment manufacturing, a dedicated high-speed capsule filling line, and a high-speed liquid oral manufacturing and filling lines. Output will ramp up from Q4-FI27, and most of the additional volume will serve Australia and New Zealand. In the fourth quarter, while the Adelaide facility prepares to start the production, we will also supply bulk tablets from India to support it. Australia accounted for 76% of the export revenue this quarter against 83% in Q1. The Q1 share was higher because size stepped in with additional volumes for Nomad when third-party contract manufacturers fell short. We planned our export capacity broadly 70-30 between Australia and other markets, and this quarter returned to that pattern. In the Philippines, we added 11 molecules and 22 SOUs during this quarter, led by cardiovascular therapies, including telnisatone, amlodipine, scobatril, valsatone, and rosovastatin. The Philippines rose to 16% of export revenue from 12% in Q1-FI-27. At today's board meeting, the board approved the acquisition of balance 25% in stake in SP Analyticals Private Limited. On completion, SP Analyticals will become a wholly owned subsidiary. Now coming to outlook. The first half has run ahead of plan and the second half is seasonally our stronger period. Three developments will shape next in the next two quarters. One, the expanded unit 3 capacity ramps up from Q4 FI27 with most of the increment directed to Australia and New Zealand. Two, the Adelaide facility begins operations in the Q4 of FI27 with commercially supply expected in Q1 of FI28. It will progressively move numerous outsourced volumes in-house and convert a distribution margin into a manufacturing margin. And three, Sal Prithek begins taking external development contracts, building a new revenue stream for FI-28. We are well-placed for FI-27. FI-27 remains a year of building, and FI-28 is when the results of that building should start to show in our performance. With that, I'll hand over to Mr. Mark Pullbone, Chief Executive Office of Normand Pharmaceuticals, for an update on the Australian platform. Thank you. Mark, over to you, Mark.

Mark Pullen, CEO

Thank you, Anil, and good afternoon, everyone. I'd like to cover off three things in our conversation today. One is our contracted book, our portfolio, and our new product development, incorporating the discussion around the progress on the Adelaide Manufacturing Facility. Last quarter, I spoke about a seven-and-a-half-year exclusive OTC supply contract with the eBoss Group, covering across Terry White and Pharmacy Choice brands, renewed on the 1st of July, 2026. This contract was valued at $202 million AUD, and on the 25th of August this year, we renewed a second OTC medicine supply contract with West Farmers covering across the brands of Priceline and Pharmacy Health, Which is another one of Australia's leading pharmacy chains. This contract has been renewed for a further three years and is valued at 30 million AUD, or approximately 204 crore. Both renewals carry an expanded product portfolio and a higher agreement of value than the one that they replaced. Together, these two renewals take our contracted Australia OTC supply business over this period of time to $232 million, or approximately $1,506 crore. These renewals earned through years of consistency and delivering in one of the most tightly regulated markets in the world. Both agreements are built to grow, with new products and line extensions added over their

Mr. Morleef, Analyst — Individual Investor

We would also

Mark Pullen, CEO

hold the exclusive long-term supply agreements, as we also hold 451 TGI-approved dossiers. Our agreements commit us to introducing new products each year. Growing forward development now happens within the side group, rather than with us using third parties. Coming to the Adelaide facility, to date, we have invested $46 million AUD of the $53 million plan for Adelaide. The program has been supported by the $20 million grant from the Australian Federal Government under the Modern Manufacturing Initiative, and we expect the facility to be commissioned in January of 2027. Slightly behind where we previously advised, and this delay has been caused by logistics disruptions due to the Iranian conflict. The TGA licence inspection is anticipated in second quarter 2027, with the commercial supply expected to commence thereafter upon the granting of the licence. As Mr. O'Neill indicated, SAI will be supporting the supply of tablets from India and the initial packing operations once onshore manufacturing is underway. These things will change directly for us. One, packing that is outsourced today moves in-house, enhancing our current distribution margin so it resembles more of a manufacturing margin on the same contracted revenue. Second, we would bring the inventory down from nine to ten months, closer towards five to six months, freeing warehouse space and working capital. And third, supply chain to our pharmacy partners improves and becomes more reliable, at which point our recent shipping disruptions have inhibited supply issues. I'll now hand over to Mr. Anil, the Chairman and Managing Director, for further comment.

Anil Kumar, Chairman

Thank you, Mark. I will now take you through our consolidated results compared with Q1 F527. First, I would like to bring out to your notice that from this quota, we present other income below abidita. Prior periods have been restated on the same basis. On this basis, Q1FI27 abidities 24.7 crores at a margin of 13.7% instead of 27.3 crores at 14.9% as reported last quarter. The difference is entirely other income and PBT, and that remains unchanged. As mentioned earlier, I will focus on the sequential comparison with Q1FI27. The revenue from operations rose 9% to 196.1 crores from 179.9 crores in Q1 FI 27. Raw material costs fell to 103 crores from 106.2 crores sequentially, so gross profit rose 26.4% to 93.1 crores, and gross margin improved from 40.9% to 47.5%. Employee and other expenses together rose by 2.8 crores. EBITDA, therefore, rose 67.4% on QOQ basis to 41.4 crores. And EBITDA margin improved from 13.7% to 21.1%. Depreciation and amortization rose to 25.1 crore from 8.1 crore for the four reasons I described earlier. Finance cost is to 9 crore from 9.4 crore. As a result, profit before tax was 9.9 crore in line with 9.8 crore in Q1. We recorded a tax credit of 0.6 crore this quarter as compared to the tax charge of 1.9 crore in Q1. Profit after tax, therefore, rose to 37.7% to 10.5 crores from 7.9 crores with a back margin of 5.4 crores, 5.4%. Sorry. Coming to H1, FI27 consolidated performance. For the first half, revenue from operations was 376 crores, above 50% of our fully a target of 750 crores. Gross profit was 166.7 crore at a margin of 44.3% and EBITDA came in at 66.1 crore with a margin of 17.6%. After depreciation and amortization of 33.2 crore and finance cost of 18.3 crore, profit before tax was 19.7 crore, profit after tax was 18.4 crore. Coming to revenue mix, CDMO contributed about 73% of Q2 revenue and branded generics about 27%. For the first half, the split was 75-25. Exports made up about 73% of Q2 revenue. Within exports, Australia contributed 76%, the Philippines contributed 16%, South Africa 4%, and other markets at 3%. Private sector customers accounted for 80% of the revenue and institutional customers for 20%. So, coming to the balance sheet. At 30th September 2026, total borrowing stood at 357 crore, agnist about 320 crore at March 2026, and cash, cash equivalents were 129 crore. We have spent about 70 crores on projects in FY27, mainly on EdLive facility and Unit 3. FY26 will be our peak debt years as we complete our CAPEX program, and we expect debt to come down from FY28 and FY29 as these assets start earning. Five previous project debt will be raised and set at the subsidiary level and will be drawn as the construction progresses. To sum up, the first half is ahead of our plan. Margins has improved and projects are moving from construction to operation. We are all well placed for the second half of the year. With that, I request the moderator to open the floor for questions. Thank you.

Operator

Thank you, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone 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 a question. We will wait for a moment while the question queue assembles. The first question is from the line of heat from Axis Capital Limited. Please go ahead.

Heath, Analyst — Axis Capital

Yeah. Hi, sir. Great set of numbers, sir. My one question would be, so the pitch point has been really, really strong. Previously, we have highlighted that it's 45% of our business. So apart from the strong outlook, any number you would like to quantify in terms of sales growth or in terms of margins, because margins also this quarter, it was around 20.7. So anything on the, any quantitative guidance?

Shashank Krishnakumar, Head of Investor Relations

Thank you, Heath.

Anil Kumar, Chairman

Thank you very much for the, for your opposition on the numbers. See, this quarter was, was, the gross margin was the hero of this, this quarter, according to me. As I said to you in my opening remarks, we have worked very thoroughly on the inventory management, and it's just the beginning. We are going to work through that a lot in the next two, three quarters. So, and as I promised you in my opening remarks, we will try to keep the gross margin above moderate of 45% in the coming quarters also. And Australia, coming up in the next two quarters, its revenue from its own manufacturing after two quarters will give a strong guidance for the business to come in. And the three key points what will add more revenue and more margin coming in the next two quarters is one is the Q3, the unit 3, which is the ramped up productions, which is going to start giving the delivery from Q4. And most of that will be dedicated to Australia and New Zealand. So we see a lot of margins coming from there, from Q4. And the second important is the Pratek Laboratories revenue model, which will start from next quarter Q4 and Q1 of F528. Currently, it's a non-revenue model which was being developed only for in-house till date when we took over. Now it's going to start its own revenue base because we're already in discussions with a few clients for CDMO projects for that plastic laboratories. And we see a lot of margin coming in from there. So these would be the two big additions in the next two quarters. And as I promised you, revenue of 750 crore, I think we'll be very, very comfortably crossing that. And the margin fight, 17%, whatever I promised it should be, we should be seeing you get comfortably more than above that 17%.

Heath, Analyst — Axis Capital

Got it. Got it. Thank you, sir. First of all, my second question would be, in the presentation, you highlighted biosimilars and maps from 2017 to 2018 onwards. So, what is the plan of action over here? Just a qualitative thing on it.

Anil Kumar, Chairman

Yeah. So, Heath, I will be releasing a paper in a month about this Onco maps and the biosimilars. We've already prepared a roadline map, and a planning has been put in. It was with my project management consultants. We were evaluating it. It has to be taken to the board and approved. Then I'll put the news to the exchanges and in the public domain because I can't reveal any information on that.

Heath, Analyst — Axis Capital

So just one question on that. So will it be India-centric or will it be like for the global thing?

Anil Kumar, Chairman

It will be for the global.

Heath, Analyst — Axis Capital

Okay.

Anil Kumar, Chairman

I'll just join back to you. Thank you. Thank you, Fitch.

Operator

Thank you. Okay. Participants, if you wish to ask a question, you may press star and one on your touchstone phone. The next question is from the line of Mr. Amol Rao from Plutus Wealth LLP. Please go ahead.

Amol Rao, Analyst — Plutus Wealth LLP

Good afternoon, sir. Thanks for the chance to ask questions. Sir, just going through your financial statements, I noticed that our receivables have increased to around 250 crores in this first half. Could you provide some color on this? I mean, what's the reason for this increase? Is it because the consolidation has resulted in something untoward, or is there anything else? And secondly, what's the aging profile of this receivable?

Anil Kumar, Chairman

Yeah. So, you have to divide this into two parts mode. One is the branded generic receivables, and the other one is the CDMO and export receivables. The aging of export receivables and CDMO receivables are between always less than 120 days, and the other aging, branded generics, domestic is between anywhere between 130 to 150 days. See, if you see this quarter, there was a little high because of the receivables were little on lower side from some of the two export, biggest export customers, but the normalization will be, you can see the normalization in the next, this coming quarter Q3 and Q4. Mostly, it will be in line. This is the one such quarter because on the sale side also, there is this increase in sales also happened in the last one, one and a half month, so which is not a due. So, it's more up for that number which will normalize in the Q3 and Q4, but as I said to you, all the export receivables aging are less than 90 to 120 days, And the domestic branded generic formulations, either to the B2B or a private customer or the institution is anywhere between 120 to 150 days, which was always a challenge for us. So we are trying to slowly reduce because it used to be a little more high. So we started reducing it down. But in the next two quarters, maximum three quarters, I think it should be less than 120 days across the board.

Amol Rao, Analyst — Plutus Wealth LLP

Oh, so it's just basically a timing issue. Things got bunched up towards the end of the quarter. Exactly. Exactly. All right. Thank you very much for that clarification, sir. Sir, secondly, sir, I mean, I was just reading some press. I mean, something in the press and, you know, our old interviews. So, we are talking about the launch of 11 molecules for the Philippines. So, we had previously announced, I think, a $10 or $11 million contract. So, is this covered under that for the Philippines? Or is that, I mean, is there anything else?

Anil Kumar, Chairman

There are two contracts in Philippines, if you can just recall. One is that $11 million is an anti-TB contract, which is a specific requirement of the program of the government of Philippines. That's completely different. Apart from that, our regular business of 14 million contract is already there before our IPO itself for a client for our regular products. So, this has to be seen in the two contexts. One is the 11 million for anti-TP, the 14 million which we have signed earlier before IPO for our regular contract. And the business of Philippines has started in January 2025 for the 14 million contract. Now, the 11 molecules, whatever we have added in this quarter, is mainly predominantly to our regular products, whatever the 11 products, cardiovascular, and everything we've added, as part of our regular portfolio of this 14 million contract. Whereas this 11 million contract and TTP, we have done the validation batches, the commercials will start anywhere from after January 2027 above.

Amol Rao, Analyst — Plutus Wealth LLP

Got it, sir. Got it. And sir, last question is a little, I mean, it's a little bit on your calls, on Sai Pratyat. Basically, the thing is, sir, I mean, you already mentioned that, you know, we should, I mean, it's going to turn into a revenue generation kind of a business model from quarter four, quarter one of next year, quarter four of this year, quarter one of next year. But, I mean, in terms of as an investor, how do we assess what could be the revenue potential for this business? I mean, what could be the possibility of contribution not only to external numbers, but also internally to our company, sir? I mean, any qualitative and quantitative thing would be great.

Anil Kumar, Chairman

See, you have to view this in a separate angle. One is, the first, why we have acquired SAI Pratik Laboratory. First, we are spending a lot of amount on development within SAI standalone, and we are spending a lot of amount at NUMED level for year-on-year product development. So, we are spending this amount and outsourcing to the outside R&D centers and the CROs. Now, first thing what we want to plug in the gap is that we want to have our own R&D center in-house because of our growing businesses and growing development and growing Philemon business. That is the first reason why we bought this, why we have taken over this 5% table. Now, once that is met, and all the revenue, all the R&D development, CRO, everything will be done through our cybertech, both for Nomad and Sai, our purpose will be resolved in the next two, three quarters. But as we are already doing this, we also want to extend our services for the outside people, which will be a revenue model for us. And it will be an added revenue to the, because we have 36 products capacity at Pratek as of today. As of today, we can develop 36 molecules in a year. So, barring Nomad and Sai, whatever the leftover is there, I can't really use the exact number, but whatever the leftover is there, we want to do it for the third-party customers, wherein it will start generating the revenue. So, it is an additional thing for the site. So, we want to employ that. That's the reason we started working with some of the good CDMO customers where we are going and telling them that we have this good lab, which we are doing the development. So, we want to have a long-term agreement speaker. So, that will start to unfold in the next FY2080, where we will be doing for NOMED, for SAI, and also we will be doing for the other.

Amol Rao, Analyst — Plutus Wealth LLP

So, sir, if I could just clarify for my own understanding, what we're trying to do here is that it's not only going to be a cost center which will make us more efficient, but it also basically starts becoming a little bit of a profit or a revenue center to mitigate those costs. That's it. That's the long and short of the system. Okay.

Anil Kumar, Chairman

Absolutely. It's a self-sufficiency and it becomes the revenue model, cost center revenue model.

Amol Rao, Analyst — Plutus Wealth LLP

All right. So, but could we hazard any number to what is earnings potential? Just a standalone external earnings potential could be revenue generation potential like this.

Anil Kumar, Chairman

As of now, we have not worked on the numbers, Amol, but my next quarter earnings call, I should be able to give some guidance on the side, because we keep on working with so many clients. Now, something will come up in the, I'll come up in the next quarter. When I'm there in the next quarter, I'll definitely give guidance on Cyprus.

Amol Rao, Analyst — Plutus Wealth LLP

Thank you so much, Anil, sir.

Anil Kumar, Chairman

Thank you, and I'm very happy Diwali, sir. Thank you. Thank you. Happy Diwali for you. Thank you, sir.

Operator

Thank you. Participants, if you wish to ask questions, you may press star and one on your touchstone phone. The next question is from the line of Mr. Morleef, an individual investor. Please go ahead, sir.

Mr. Morleef, Analyst — Individual Investor

Hello, sir. Sir, there's one question. In your slide on injectables, you have mentioned USFDA as well. So, is there a change that you will also look at USFDA on injectables standpoint?

Anil Kumar, Chairman

Can you repeat the question a little more louder because I'm not able to exactly hear it. Sorry for that.

Mr. Morleef, Analyst — Individual Investor

No problem. So, in your slide deck on injectables, you have mentioned USFDA as well, in addition to EGMP. So, are you now thinking of USFDA as well, from an approval standpoint?

Anil Kumar, Chairman

So, I have cleared this question last time also. I'll just explain to you. See, initially our target was EU GMP, but once we aligned with Critics and Pharma and we are building a larger project on the JV6040, we said, why don't we build it for a USFDA standards? Yes, then we took a call, just let's do it in regulatory USFDA standards. Now, going on the business front, our prime focus will be EU GMP and our market focus will be more of a Southeast Asia, Latin America, and Middle East for the next two to three years. So, we will be focusing more on these lines because we are building a glycolization, GLP-1, AMPLES, and critical care injectables for these markets where we had a complete extensive study report we have generated from this. And we also have a client base in this region where we are in discussions for the launching of the injectable space. But said that, as of today, we don't have any idea of launching ourselves into USFDA for at least two, three years. But we are keeping the option open if there is a CMO client who is coming up to us and who wants to manufacture the product within our site. We are well open for the discussions, and if it is his product which we have to manufacture, we are open for that. But as sign projections may, we don't have anything on the US side, at least for the next two to three years.

Mr. Morleef, Analyst — Individual Investor

Okay. Thank you. Sir, next, I know you've not given an FY27 actual guidance increase, but do you, at this moment, for the next three years, is there a forward guidance you can decide, I guess, as to what could be the calendar that you're looking to grow your business at?

Anil Kumar, Chairman

Yeah, probably for the next three years, maybe it's too preemptive. But for the FY28, I will release my guidance in the next earnings call, definitely. So FY2528 guidance, in the coming earnings call in the month of Jan, I'll definitely put my earnings call. But not, because too many things we are doing at this point of time, too many revenues are getting expected at every level. So, three years putting up the numbers of guidance at this point of time may be difficult for me. But for FI 28, for sure, I'll put it on my next earnings call.

Mr. Morleef, Analyst — Individual Investor

Okay. So, if possible, I'll squeeze in two more. The site that you're now closing down, right, the injectable earlier one, do you have an idea right now on what you intend to do with that? Two things might happen.

Anil Kumar, Chairman

Now, because it's become a very commercial site, both of them, we have two, three options with doing that. Now we are preparing a comprehensive report to present it to the board, how to capitalize them or how to commercialize them. So it's under the discussion part. Once it is presented to the board, I will reveal it to the exchanges and the public domain.

Mr. Morleef, Analyst — Individual Investor

Thank you. And last is on your leadership next hire, sir. Are you confident on you having a good next line with so many things happening at the same time? Now you're talking about MAP and Biosilvers as well. So how does the next line look like?

Anil Kumar, Chairman

Yeah. If you see consistently in the last two quarters, the expenses on the people, on the management and people, is increasing very high when compared to the last year numbers. That itself tells the story. What's happening is the senior management under K&C, we have substantially increased in the last six to eight months. And in the next three months to four months, again, there is going to be a substantial increase on the KMP side. So I'm preparing the entire team at all levels, be it at SCI City, be it at SCI, be it at Australia. We're doing everything to ramp up the bandwidth of the management, to take up the individual responsibilities. And I, myself, want to focus more on the strategy, not on everyday business.

Mr. Morleef, Analyst — Individual Investor

Okay. Thank you, sir.

Anil Kumar, Chairman

Thank you very much.

Operator

Thank you. The next question is from the line of Mr. Gopal Bhatt from Baroda BNPP Asset Management. Please go ahead.