Sakar Healthcare Limited (SAKAR) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Sagar Healthcare Limited Q1 FY27 earnings conference call hosted by MUFGN. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sejan from MEFG in time. Thank you and over to you, ma'am.

Thank you, Shruti. Welcome to Sata Healthcare Q1 FY27 Earnings Concon. Today on the call, we have Mr. Vikramgit Ghosh, Vice President, Strategy and Business Development, Mr. Dharmesh Thakkar, CFO, Mr. Bharat Soni, Company Secretary, and Ms. Pushpa Komani, Manager. Before we proceed with the call, I would like to give a small disclaimer that the call may contain certain forward-looking statements which are based on the business opinions and expectations of the company as on date. A detailed disclaimer has been given in the company's investor presentation, which is uploaded on the stock exchange. Now, I would like to hand over the call to Ms. Pushpa. Over to you, ma'am.

Good afternoon, everyone. I welcome all our shareholders, investors, analysts, and stakeholders to the earnings call of Saka Healthcare Limited for the quarter ended 30th June, 2026. The first quarter of FY27 has been encouraging for SACA Healthcare both operationally and financially. Over the past few years, we have built an oncology business with a clear objective to establish a strong presence in global markets through differentiated products, regulatory-driven market access, and long-term commercial partnerships. As we move forward, we see SAKAR evolving into a predominantly oncology-led export franchise. Our efforts across product development Those years, marketing authorizations, technology transfer, and API integration are all aligned towards building a larger and more sustainable ontology export business over the coming years. What we are witnessing today is a steady increase in opportunities across all three areas. During the quarter, we executed more than 65 oncology product contracts and advanced discussions for over 50 additional opportunities across multiple international markets. This growing activity reflects the increasing demand for oncology products and the rising acceptance of SACAR among global pharmaceutical companies. Our major focus area for us continues to be market assets. The strength of any global oncology business is determined not only by the product it develops, but by the market it can access and commercialize them in. During the quarter, we shared 261 oncology dossiers globally, with 178 already submitted and 16 marketing authorizations received. We also completed 26 European filings, including 15 own filings. What is particularly important is that every approval expands our footprint into new markets and creates additional opportunities for future product launches. Today, our regulatory pipeline is wider than it has been ever, providing us with increasing visibility across regulated as well as emerging markets. At the same time, our product portfolio continues to deepen. We have now developed 55 on-page monocle with 32 doziers ready for launch globally. This allows us to continuously engage with partners across different regions while broadening our commercialization opportunities. Another area where we are seeing meaningful progress is customer engagement. The technology transfer project has become an increasingly important part of our oncology business model. We currently have 33 ongoing oncology technology transfer projects with leading pharmaceutical companies, including Accord Insar, Doran, Sempure, Glenmark, and Ryders. Seven projects have already secured site-variation approvals across the UK and European Union. These projects are important because they create long-term relationships and establish SAKAR as a strategic manufacturing partner rather than simply a product supplier. A collaboration with DryDest Life Sciences during the quarter further reinforces this strength and is part of our 40th Global Anti-Cancer Product Agreement. We also continue to strengthen the economics of our business through backward integration. With 21 anthropology APIs developed in-house, including 16 APIs supported by recent confirmations, Along with CEP approvals and ongoing CEP applications, we are steadily improving control over our supply chain while enhancing our competitiveness in international markets. All of this is supported by our integrated EUGNC-approved oncology facility at Baola. Which remains our cornerstone of our export strategy and enables us to address opportunities across oral solids, injectables, oral liquids, and API from a single manufacturing platform. What gives us confidence about the future is not only the strength of our pipeline, but also the scalability of the platform we have created. The Bawla Oncology Facility has been designed with significant growth potential and we believe it can support revenues of Rs. 800 crores to Rs. 1,000 crores at optimal utilization over the next 4 to 5 years without requiring any major incremental capital expenditure. Given the current level of utilization, we continue to see substantial headroom for growth, operating leverage, and margin expansion as product registrations convert into commercial launches and export volume scale-up. Alongside Oncology, our Chambodur facility continues to support our non-oncology operations, providing stability through CDMO services, injectables, oral solids, and branded formulations. Our export portfolio today spans APAC, Latin America, CIS, Africa, and selected European markets, creating a diversified international revenue base. We are also encouraged by the recommendations received from the Ethiopian Pharmaceutical Supply Services, where Safar was recognized as one of the best suppliers for 2024-2025. We believe such recognition reflects our growth credibility, execution capability, and commitment to serving international health care markets. Financial performance. Revenue from corporations for quarter one, financial year 27, stood at Rs. 7,297 lakhs, delivering a year-on-year growth of 38%. EBITDA increased by 67% to Rs. 2,125 lakhs, while EBITDA margins improved to 29%. Profit success tax stood at rupees 1,028 lakh, recording a growth of 120% over the corresponding quarter for the previous year. Our oncology division continues to demonstrate strong momentum during the quarter, making a meaningful contribution to the company's overall performance. Food revenues also witness healthy year-on-year growth, reflecting our expanding global growth and increasing acceptance of products in international markets. The improvement in profitability reflects a combination of better product mix, higher operating leverage, increasing contribution from oncology products, and continued execution discipline across the organization. As we look ahead, we believe the opportunity before us is substantial. The global oncology market continuously expands, while demand for compliant and reliable oncology manufacturing partners remains strong. With the growth going through the base, increasing approval, expanding technology transfer activities, and a deeper customer engagement, we are building a platform that is becoming progressively stronger with every quarter. Our focus remains simple. Increase registration, expand launches, deepen partnerships, and grow ontology experts across global markets. We believe this approach will continue to strengthen. Saka's position as a global oncology-focused pharmaceutical company and create a sustainable value for all our stakeholders. Before I conclude, I would like to thank our Chairman and Managing Director, Mr. Sanjay Shah, our Board of Directors, Employees, Customers, Global Partners, and Showholders for your continued support and trust. We thank you. We will now open the floor for questions.

Thank you very much. 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 questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Priyanchu Jain from Grotex Infinite. Please proceed.

Hi, am I audible? Hi, sir. Congratulations, first of all, on a great set of results. Sir, I have a few questions. First, we'll be on the expansion side, as we don't require any further capex for the next few years, I would consider. So, can you just share the pipeline, like the molecules which are going to commercialize for this year or for the next year?

Yeah, actually, during the commentary, it has been told that we have already developed 55 oncology molecules in-house, and currently, we have 32 ready dosiers for these molecules as well. So, we have already a robust pipeline of around 23 products for which we have the dosiers to be prepared as well. Along with that, this facility supports also development of other molecules which are coming off patent. So there are another 6-7 molecules which can be also taken up in the same setup, which will be off patent in the coming maybe couple of years. So that builds a robust portfolio in terms of branded generics in India as well as abroad, where the oncology generics are of top demand based on which we have selected these products. So, it does not require any further expansion or set-up CapEx, something like that, to support whatever we have taken the objective in the coming 3-4 years' time.

Great, sir. So, second question will be on the average customer. So, like, how the discussion started and till the final execution of the things? Like, can you share the how the timeline works in our case?

As we have already mentioned, 178 dojiyas have already been submitted in different regulatory agencies worldwide. So each have their own timeline of approving that, which normally ranges on an average of 12 months. So with 178 in the pipeline right now, we have received 16 approvals from them. We are moving ahead in this financial year, we are looking to double that number. And in the next year, we are trying to reach a total number of 100 plus dozier approvals or registration, which will support the whatever the revenue we are planning for in the coming two, three years. And obviously, 178 is going to increase as well, because we have another 50 plus dozier, which is about to be submitted maybe in next one or two quarters time. So, this will be a dynamic number, and quarter over quarter, we'll be having an addition of around 25 to 30 dogears even from the next financial year.

Great, sir. So, next question will be on the research and development side. There is a lot of research which goes in the R&D of these APIs and all. So, how do we hire people in this division? So, if you just throw some light on that aspect.

We do have, as you rightly mentioned, we do have a robust RNDF, NDN, ADL lab to support this product development, where more than 30 odd different high-tech people are working, who have experienced working with cytotoxics over years. So there we have some complex molecules in terms of peptides, in terms of liposomal products. You may be heard, you may have heard about the napakletaxel. So this type of products, liposomal doxorupicin. So this type of products we are planning, which we have already developed in-house. But now the thing is that we need to push forward in terms of market feasibility and then we can take up the pilot batches and scale up. So that is in the evaluation phase commercially. But in-house we have developed those type of, those range of products for which we do have the potential.

Okay. And so, like, the research and development part, like, emphasize on that again, that as recently, the government has announced a robust budget for the, like, in this space only. So, like, are we planning to get any funds for research and development in this space only, like, from the government? Like, do we have any plans for this?

Right now, we do not have because we are currently self-sufficient in terms of funding over these developments. In terms of, because these products are what we have right now developing or developed just a few months back or something like that, that we have already planned a couple of years before. So, that was irrespective of any grant from any government or any other agencies.

Okay, sir. Great, sir. Thank you. That's all from my side.

All the best.

Thank you.

Thank you. Ladies and gentlemen. Please. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Do from Leo Capital. Please proceed.

Thank you for the opportunity. I'm audible.

Yes, you are.

Okay, so sir, I have two questions on the oncology business. My first question is over the next three, four years as the pipeline converts into our commercial supplies, how large can the oncology business become for us? Both in absolute terms and the proportion of consolidated revenue would be a great number as well. And within that growth, which geography are we seeing maximum potential in? Is it primarily Europe on the back of EU GMP approvals, or is it into ROW markets like Africa, Southeast Asia or so?

First of all, regarding the potential, I feel during the commentary, it has already been mentioned that 800 pro to 1,000 pro, we can easily take up, considering the product mix and facility what we have. So that is the potential we also are looking forward, maybe down the line in around three to four years time. And regarding the trade, what you are looking forward to in terms of our reach, definitely we have already segmented the market. In terms of that, we have identified that Europe and some of other markets like Colombia, Mexico, and Latin America. Then in Africa, we have identified in the Eastern African four countries. Then in the Asia Pacific, also including Australia, New Zealand, along with the Philippines, Vietnam, Malaysia, and Thailand. So these are clusters which we have already identified, and we are moving ahead in submitting our dossiers to these targeted markets only. So, this 178, you will predominantly, you will find 90% of the dojos are going to these markets. So, thereby, the potential lies as a return in terms of revenue from these markets only, which will contribute majorly to this revenue figure, which I have told in 3-4 years That's great.

That's really helpful. So my second question is on the margin potential. On margin side, if we see as a business scale towards, say, optimal capacity utilization, and also we get benefit of API backward integration, what margin potential do we see for oncology at scale? Is there any room to move structurally beyond 25-30% range? And what would be the key levers, if any?

If you see the EBITDA margin is now healthy in terms of moving over 25%, which we have been maintaining or sustaining maybe for the last couple of years. So it is about to maybe reaching around 30% in course of time, as we have seen. With the evolving oncology business contributing maybe around 93, 94 crore in the last financial year. And this also, this time also, it is showing a healthy growth this quarter onwards. And considering the business, what we are building up in terms of three major areas, what we are looking for to CMO as well as the exports and the API. So I feel so it will be soon crossing the 30% margin EBITDA. In maybe by the end of this financially or something like that. And considering a backward integration with the API, as you have heard about that we are already integrated with CEP. So once we integrate that with our current product portfolio, that will push those which will be integrated to have a margin nearby around 55% plus. But those will be selected products for which we'll be having the API with CEP.

Okay, so thank you so much. That was all from my side. All the best for the next quarter.

Thank you. The next question is on the line of Dwanin Desai from Total Capital. Please proceed.

Hi, good afternoon, everyone, and congratulations for the good set of numbers. So, my first question is, you know, last three quarters, we have been in this 70 to 75 crore range, while if we look at the MAs that we have got, all the approvals, registrations that we have got, and the pipeline all have moved up. So, how do we look at the, you know, this quarterly number going to 85, 90 crore, what kind of timeline, what has to work for us to reach to that number, if you can talk about that.

Yeah, you are right, because the business was dependent upon the Changodha business and the CMO model of business, which we are operating for oncology, since the past quarter or maybe the last quarter also. But once the export starts picking up, this number will increase, because the contribution from that arena is right now not so significant enough. Although we have done more than 50 plus or maybe rather 60 plus We have agreements or contracts overseas with more than 15 contracts in the domestic market. Considering the 50 or odd contracts which are currently having the doziers or the site variation under progress. The exports till now is not contributing or adding that significant value to this business. So, once it comes up, which you can see from this quarter onwards or maybe in the coming third quarter onwards. So, this will significantly boost up and whatever the number figure you are telling, you will be getting that number from that quarter onwards, maybe second or the end or third quarter beginning.

Perfect, very clear. And so, second question is on the, you know, MAs that we have received. I think, you know, on the European side, you know, the approval process probably is taking longer because we had six MAs and we are kind of remaining in the same range. So how about commercializing those MAs in our own name and where are we in the process? Have we commercialized any MAs, you know, and how do we look at the MAs coming through for the current year? So if you can talk about the commercialization on our own MAs.

As I mentioned in the past interaction also, the receiving an AMAs is a process where we do not have a direct control. But having said that, right now we have 16 AMAs we have received worldwide and with our submissions which our partners are holding, putting one or one AMA which we are holding in the Europe. So, right now, what currently there is, we are in the pipeline of submission or actually the logistic part is working on supplying these products in different parts of the world, primarily to European market, because first MA we have received from Bulgaria, those three product purchase order has already been processed. And we are expecting that that will be dispatched in a couple of months' time, because the purchase order has been received, the product has been already manufactured, and we are in the process of dispatch for those products right now. There we have, this is six MAs from that country, and right now three are in the process of dispatch. So that, because the thing is that one should understand this is the first time the teething problem comes in terms of logistics. We have certain processes to follow like we have the serialization process which has to be established in a very fast way. These are the two important parameters and we have the overseas partners basically who will be managing this. Then we have the Peace Lab also who is sitting in Bulgaria. So all these overseas things we are coordinating and we are looking forward to dispatch in this quarter only.

After I have more questions, I will come back in.

Thank you. The next question is from the line of Ankit Gupta from Rambo Capital. Please proceed.

Yeah, thanks for the opportunity. Sir, if you can tell us how much were the oncology revenue for this quarter and what was the split between domestic and exports in that? And yeah, that was my first question.

Yeah, so for the first quarter, the oncology business was around 33 crores. Of which around 6.5 floors was exposed and the rest was domestic.

Okay, okay. And so on the tech transfer part, you know, we had two tech transfers which had been done for Accord and Intask as per the last concord. So how many tech transfers have now been completed with them and how do you see ramp up in revenues happening because, you know, this was expected to be a big growth driver for us. Any tender that we have one or two for this products for which the tech transfer is completed. So if you can give some color on how the tech transfer thing is progressing and how do you see this progressing over the next few quarters for Accord, Intaf as well as for other companies like Torrent in UK and Germany. Thank you.

Yeah, there were, if you recollect, there are total, the two major partners for which we are doing the tech transfer for the overseas market, Inter's Accord and Torrent. In Torrent, we have two, one in Germany, that is Weyman, and another in the UK, that is Torrent, UK. Right now, we have seven approvals of the side variations, which has already been received, out of which five are for Accord for the Euro. The molecules are Imatinib, Azacitratin, Eximistin, Sorafenib. All four are total solids, tablets, and phytorabin injection. Out of which three products have already been commercialized, we have dispatched. Right now, they may be in the releasing phase and in the launching phase in the respective market. And for the torrent part, we have also received one, means we have been awarded, means our torrent has been awarded in Germany for tender with the product of electrozole we have already dispatched to them. So we will be supplying in due course because these are supplied in different milestones. So we will be doing in supplying those in installments. And Torrent UK also have received the product. So, both the partner, means the partner company, the Torrent UK and Germany both have received the products. Eximistin also has received, they have received letrozole and Eximistin, both they have been awarded the tender in Germany.

Okay, so how do we see scale-up in the revenues happening for this tech transfers? You know, let's say this year we are targeting almost 200 growth revenue from our oncology division. So, like, how should we differentiate between, you know, how much revenues will be from the domestic supplies that we are already doing, how much from this tech transfers, and how much from the MAs that we have filed in our own name?

So, if you see the split right now, the export contribution is on the lower side, if you see the last financial year. But going ahead, we are seeing that it is right now picking up as we start exporting the products for this versus partners, as I told Accord and Torrent. And along with that, we will be adding up also Incure, because they are a partner company, Telomed in the UK, which is also a big name. So, they will be also receiving the products from us. So, which you are seeing a minuscule figure, which colleague has just mentioned a few minutes back, of just only 6 lakhs or something odd, 6 stores business, which is coming, maybe for the quarter, that we are looking forward to maybe around making a 10 times of it roughly at the end of year, that value to exports.

Okay. Okay. So 60 to 70-year-old export revenue we are expecting from oncology division, this will

comprise of both the side variation as well as the AMA-based exports what we will be having.

Okay. So, and how should we look at this number for FI 28?

A428, again, this is the number which we may be looking forward to double that number, because then any number of marketing authorizations will be touching more than 100, which we are right now sitting on 16, looking forward to double in the same financial, in this current financial year, so the subsequent or the next financial year, we will be looking for a figure of 100 plus marketing authorization. And that will easily lend up to a figure which we are looking forward to doubling that number of 60.

Okay. Okay. And how much should we look for the Onco contribution in FY28 overall as a business, as a segment?

In, in that it will be around roughly the three times of what we have achieved in last financial year. So that is what we are looking forward to. Last year, what we have achieved, we are trying to double this year, this financial year. And the subsequent or the next financial year, we will be looking for a figure of around three times of the previous year, what we have achieved. Okay, so it is more than 100% growth.

So, close to 280-300 of revenues from oncology.

Right. So, that is the figure roughly we are aiming at.

So, ok, ok. Thanks sir, I wish you all the rest.

Thank you. The next question is from the line of Bhavika from Livishai. Please proceed. Oh, hello.

Am I audible?

Yeah, yeah. Please.

Yeah. So, sir, as you mentioned that currently we are doing like around 6% of export. I just want to know that in oncology, how much part is our own because we have a CMO majorly on the oncology side? So, are we able to do any sale on our own MA or any other way? And when we talk about domestic sales, like in oncology, is it totally 100% from the CMO or it's somewhere on the own brand sales also?

Regarding the first question of yours, that is the own marketing authorization, as I told you, we like to have one marketing authorization for which we are aligning for the sales. This is in the Balkan region. Apart from that, we are also trying to develop our own marketing authorization portfolio in the European market, because that helps in terms of Our total control in which market we want to go with the marketing authorization, because as you know, in Europe, you can cover at a stage with one registration for 30 markets just by running some procedures, which takes roughly two to three months time. So that is why we are trying to have some marketing authorizations in our portfolio, or which we are looking right now for a number of around 15, which we have already processed for. Regarding the second question, what you have mentioned, our domestic business is driven by both the chemo business as well as the APIs, because in oncology, API is also quite critical. Very few manufacturers are there. And we understand the end users requirements, so our APIs are more customized for the people who are manufacturing or manufacturers who are with the oncology. But having said that, we operate with more than 15 key customers who are mostly playing originally in the Indian subcontinent. So they take one of the two products or molecules in the finished dose form. Thank you very much for this.

Got it. Sir, can you tell me the revenue which we are making from the API business and how we expect it to grow going forward? And one more thing that as we are doing CMO and also we are going forward, we are going to do the MSI. So how the margin differ in both the model, if you can share that information?

See, right now, once you see the total business mix is not so well balanced in terms of exports not contributing that much as on last figures what we have received. So, API contributions looks a little bit on a higher side in terms of around nearing around 30% contribution. But to the total self, but having said that, this will marginally grow over years because we will be using it captive on a better way so that we become more prepared and more self-dependent in coming times. So that is what the objective moving ahead. Regarding, what was your second question in that?

On the margin side?

On the margin part, the CMO part, obviously, you can understand the partners are a little bit aware of the market, and there are some understanding in terms of whatever the API costing and other compulsions are made up. So there we have the margins, which you can see right now, the EBITDA of nearing around 30%. So it will over like that. But once you move into the exports and particularly with an integrated API, then the margins will be more healthy, roughly around 35% or even more.

Okay, I got it. That's all. Thank you so much.

Thank you. The next question is from the line of Rupesh from Longwitty Partners. Please proceed.

Yeah. Hello, sir. Thank you, Vikram Jiji, for the opportunity and congratulations on a good set of numbers. Yeah. My question is a follow-up to one of the earlier participants. So now we are at this 70 crore run rate for last three quarters, and I think we have given a guidance of 350 crore. So next three quarters needs to be 90 crore sort of run rate. And you replied that because export contribution... We will grow over the years. So we are on track for this 90 crore potterly run rate over the next one or two potters. I am taking that as a confirmation. That is fair understanding.

Yeah, yeah, that is absolutely you are right. If you see the presentation as well, we have the 261 dozier in the already which we have already in the market, which have been evaluated. Some have been submitted 178, which has been 90 of those years have also remained in the partners and which is to be submitted in maybe one or two quarters time. So you can understand the potential which then the export is going to give us. With 250 odd registration coming up in a couple of years' time. So, that is what we are looking forward to. Maybe after this financial year, that is the boost to what we are actually looking forward to.

Okay, okay. So, then the second question is… Sorry, that was just one question. Yeah, that was just one question. The second question, sir, is we received these two CEP approvals, two APIs got approved. So when do you expect them to commercialize, and how many more approvals can we see in this year?

See, the API is with CEP, right now we have two approvals for Jafetini and Secarabin. So both the products, we have the finished dose in our ready dosier list. So right now, our objective will be to backward integrate rather than going and selling in the market. Because that will make us more robust with our pipeline. Obviously, if there is an opportunity business, we look forward to that, but that is not our priority. Rather than backward integration will be a priority on that. And just for your other information, we have another five in the API pipeline of ours of 21Develop, which we are also preparing for the approval of CEP. So, that will take us to the total number of around 7. So, out of 21, 7 will be having an approval with CEP maybe in the next few quarters. And thereby, 33%, if you can understand, of our products will be then backward integrated. So, that is the objective what we are looking forward to moving at. That's perfect. All the best, Vikram Zikhy. Yeah, thank you.

Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Avneesh Tawari, the Wynoski advisor. Please proceed.

Hi, this is the new of 33 crore, including 6.5 crore of export. I'm assuming this is linked to site variation, not the market authorization one. So you can confirm that. And how do you think this 33 will look like for the full fiscal year 27? If you can just break it down between domestic on-code, site variation kind of on-code, which is deemed export kind of thing, and the market authorization waste, which will kick in in Q3 and Q4.

I think the... It's Q2, Q3, Q4-wise bifurcation will be a little bit, like now, will be difficult on that sense. But having said that Q3, Q4 will be more export contribution will be coming up, considering the marketing authorization, alignment, and thereby the supply of the oncology products to overseas market. And we are looking for a revenue, what I have told, that is doubling the last year's number. So in that, what we can expect, export will roughly come up to around 30% contribution to the total sale, what we can look forward to. So, that brings roughly what we can expect. It will catch up with the CMO, the domestic part, which will roughly contribute around 40%. So, HTI will be around 25%, so that will be 65%, around 30% will be coming around from the export business. So, that is what the mix we are looking forward to. End of FY27.

And total revenue would be a second question.

Probably double the number what we have achieved last year.

Onco or the full company you're talking about?

Oncology. Oncology because the relevant question was with Oncology.

So 100 going to 200 crores, right. Hello. Hello.

Thank you. Yes, sir. Thank you. The next question is on the line of Pippa Poudha from the fire capital. Please proceed.

Can we have an argument, sir?

Yeah, absolutely. Thank you very much, sir, for this opportunity. So, just wanted to understand, first up, so what sort of growth we are looking at on the non-oncology, like CDMO, API, over next to three years, sort of CAGR, and what's the EBITDA margin profile difference between oncology versus non-oncology?

See, right now, the focus of ours is oncology having the setup what we have right now with API integration and research unit in place. So, the non-oncology portion where we will be expecting around growth. Pharmaceutical industries are right now having around 7-8%. So that is up to there. We have more than 270 odd marketing authorizations there. And well spread in terms of our product portfolio what we have with the emerging market as the focus. So, there we are not that much of concentrating right now. So, it is more or less in a state where we can grow with the generic on that pace which the market is growing at. So, you are talking about 7-8% CAGR?

7-8% CAGR? I mean, did I hear that?

Yeah, roughly, year over year, that is what the growth you are right now getting also if you calculate for the past 2-3 years. Because that is again a generic product going to the emerging market. So once you grow by 8-9% also, there are certain competition, there are certain price solutions. So everything factored in, we can grow around 7-8% as per market trend with the non-oncology. With the oncology, the thing is that where we are putting in more of focus and more of inputs have already gone in. So there we can look around doubling the sale year over year, so that's what we are trying to do this year as well as planning for the next year also, which I have already told around 3x of the previous year, the figure, what we achieved. And regarding what again? The EBITDA margin, right, you have asked for. If you track the EBITDA margin of the non-oncology for the past few years, it is around 25%, because that is where the trick is we want to focus more into oncology, because oncology has the potential of moving that to 30% or even higher. So, where basically the margins are higher, one should concentrate. So, that is the reason why we are trying to concentrate there.

So, currently your oncology margin is 30%?

Yeah, last quarter it was around 27 years. This also we have increased by around 2% on that. So quarter over quarter, as I told, we are looking for reaching around near by 30% this year on a yearly basis.

On the yearly basis. Okay. And at full utilization, I mean, is 30% your aspiration or it can go even higher in oncology?

As I told earlier also, the ETA integration will push that contribution EBITDA margin to around 35% or even higher. And this will happen by when? So, this also, again, we have already two CEPs in process. We are trying to integrate that right now. The process is ongoing. Another five already we have in the pipeline where we are processed for. So, seven EPIs with CEPs we are planning for within next few quarters, maybe two to three quarters. So, that is what we are looking forward to.

Okay, understood. That's very clear, sir, and very helpful also. And that would be it from my side. Wish you all the best. Thank you so much.

Thank you. The next question is from the line of Shubham Agarwal from Burman Capital. Please proceed.

Oh, yeah. Hi, sir. Thank you for the opportunity. Sir, I just wanted to understand this oncology revenue going from 100 crores. So out of that incremental 100 crores, can you just help us understand how much would be the contribution of the 7-type variation approvals that you have, you know, achieved in date? How much will be your own earnings? And then what will be the growth in your domestic CMO business? If that is one, you can help us understand.

Yeah, I have touched upon this in my previous answer. Around 30% is the export what we are looking forward to once we plan to double the previous year oncology sales. And in that, obviously, the contribution of the marketing authorization what we have come will be around 70 to 75%. Next, we will be starting. We are already exporting our site variation product, so that contribution will come up.

So, site variation approvals then will just contribute about in absolute terms about 25 to 20 crores. Is that the right understanding?

So, it will be some we directly export, some goes through our partners, because Intask is already there, so they take it from us and then export. Same thing with Torrent. So, some we directly export, some goes through them. So, considering that, 70 to 75% will be the marketing authorizations, which will be the exports contribution from our, means we will get, and this 25%, which will be directly exporting under CMO business model.

Understood, understood sir. And sir, out of this, what I understand from my last call is that Intas deal in itself was about 5200 crores in terms of incremental revenue. So a large part of the contribution would be driven by this deal and like, or will it be like equally driven by your Intas, Torrent and your own enemies?

See, as I told you, there are five major partners of ours, like Intas, Accord, Torrent, Incure, Telomet, then Glenmark, and Zyder. So, these are the, obviously, these, they are the high-sized, means size-wise, they are big, and they contribute more. But having said that, we have our exports to support our overall exports from India. And we do have also some regional players, 15 plus regional players who are also taking products on a regular basis on the CMO model from us. So the big companies may have a number of products and their value-wise, they may be on a higher side. But we have skewed or not skewed the business towards only the five players. We have another 15 players who are also supporting us. Based on their cells with oncology products, which may be regionally or may be nationally.

Understood, sir. Understood. And first, just a bookkeeping question. If we talk only about the domestic CMO business, and here I'm going to talk about products which are sold to your partners meant for domestic sales, what was the contribution in FY26, and what is the contribution in absolute terms you are expecting in FY27?

This is regarding the domestic business?

Yes, so I am talking about just domestic CMO, where you are selling the products to your partners for the domestic IPM market, not about the deemed export, not your other export CMO business.

Roughly it was 35, yeah, roughly it was 35 year last year domestic CMO, and this year we are going to double that number. Because we have certain companies like Incure, Glenmark, and Zydas not to full potential in terms of the domestic business. So their contribution will add up along with the other partners who will also multiply because every company grows. If you see in Indian market also companies whom we work with, they have their own plans of growing 15-20% year over year. So that figure will also help us grow in our number.

Understood, sir. And just one last question, sir. What was the contribution of API last year and API contribution last year in oncology business?

API, as I told you, last year it will be around 30% will be the API contribution.

So, out of that 95 crores, roughly 27-28 crores was API.

Right.

Understood. Thank you, sir. Thank you for answering the question.

Yeah. Thank you.

Thank you. Due to time constraints, that was the last question. I would now like to hand the conference over to the management for the closing comments. Over to you, sir.

Thank you, investors and stakeholders. Thank you for joining for Q1 F527 Confidence Call. Thank you so much.

Thank you. On behalf of Soccer Healthcare Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.