Ladies and gentlemen, good day and welcome to Q4 FY2025 Earnings Conference Call of Torrent Pharma. 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 this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sudhir Menon, Executive Director, Finance and CFO. Thank you, and over to you, sir. Thank you. Good evening and welcome to the fourth quarter earnings call for FY 2025. We continue to see strong performance in our branded markets, which accounted for 73% of the overall revenues this quarter. India business growth for quarter four is 12%. Brazil, our constant currency growth for the quarter, is 5%. There was a channel de-stocking in quarter four due to an expectation of low price increase for 2025-2026, which has impacted sales for quarter four. The Brazilian real depreciation for the quarter was 11%. On the generic side, U.S. business grew at 15%, and Germany grew at 2%. We continue to win incremental tenders in Germany, which should help us deliver high single-digit growth for the future quarters. Financial highlights for quarter four: revenues were INR 2,959 crore, up by 8% year-on-year. Operating EBITDA was INR 964 crore, up by 9% year-on-year, and operating EBITDA margins stand at 32.6%. There was a one-time impact during quarter four of INR 17 crore on gross margins. This was on account of inventory revaluation of an in-license product, which went off-patent. Adjusted for the same, the underlying operating EBITDA growth for the quarter is 11%, with operating EBITDA margin at 33.1%. The overall leverage, which is net debt to EBITDA, now stands at 0.62. The board has recommended a final dividend of INR 6 per equity share. I now hand over the call to Aman for India business. Thanks, Sudhir. India revenue at INR 1,545 crore grew at 12%. As per the AIOCD secondary market data, the IPM growth for the quarter was 8%. Torrent's chronic business grew at 14% versus the IPM growth of 9%, driven by outperformance in cardiac, diabetes, gastro, CNS, and dermatology divisions. Cardiac, which is our largest contributor, has grown by 15% during the quarter versus a market growth rate of 10% due to the restructuring that was undertaken last year, along with divisional expansion. We continue to see positive traction in our consumer health business, particularly in the Curatio brands. On a MAT basis, Torrent has 21 brands in the top 500 of the IPM, with 14 brands more than INR 100 crore sales as of last March 2025. Field force strength at the end of the quarter stands at 6,400, compared to 6,200 in the previous quarter. We are encouraged by the performance in the recently expanded divisions and headquarters. We believe the expansion will help us provide a platform for new launches and also increase our territorial reach and help gain regional market share in previously untapped areas. In the upcoming financial year, we expect the India business to continue outperforming the market growth, and our focus during the upcoming year will remain on improving market share in the expanded areas and headquarters and improving the new launch performance. I'll now hand over to Mr. Sanjay Gupta for the international business. Thank you, Aman. We will start with our branded direct market of Brazil. Based on internal sales, Q4 constant currency revenue was BRL 234 million, registering a 5% year-on-year growth. As per IQVIA, market growth was 7% for Q4. Secondary sales for Torrent, as per IQVIA, also grew by 13%. We filed a lot of products during Q4, and as of today, we have 63 molecules filed and waiting for ANVISA approval. Moving on to Germany, our German business has registered a constant currency revenue of EUR 31 million, up by 1%. During the quarter, we won incremental new tenders, which will start delivering incremental sales from Q3 of 2025-2026. For the last quarter, in each quarter, we have increased overall value of bids in tenders. In the U.S., we have registered constant currency revenues of $35 million, up by 10%. Growth is essentially coming from enhanced volume of purchases by customers under existing contracts. I would like to conclude here and open the call up for questions. Thank you very much, sir. We will now begin the Q&A session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, you will wait for a moment while the question queue assembles. The first question is from the line of Saion Mukherjee from Nomura Securities. Please go ahead. Yeah, thank you and good evening. My first question is on the insulin business. If you can share the revenues, have you seen improvement in Q4? In the backdrop of Innovate deciding to discontinue sales, how should we think about the impact for fiscal 2026, both on top line and margins? Saion, quarter four, we did INR 75 crore of insulin business. What was your second question, Saion? If you could just repeat. How is this going to shape up for next year? It should more or less remain at the same level, which is a quarterly run rate of INR 75 crore. Okay. So the Novo's decision to discontinue doesn't impact your business? No, it doesn't impact because we manufacture vials for them, and they've discontinued the pens, I would say. Understood. My second question was on Semaglutide. Have we made the filings in Brazil, and do we expect to be there on day one? I prefer not commenting about individual product strategies. We think we actually, the approval for this product would not be so straightforward, so it's hard to predict as to when we would be on the market. I would refrain from making predictions about Torrent and about our peers. Understood. What about India? Are we ready for day one launch in India? Yes. India first wave is looking likely at the moment for both the injectable and the oral. Oral also, you expect to launch in March next year, or it will be some time later? The exact date is not certain, but it would most likely be in the first wave of any generic launch. Understood. Okay. Thank you. Thank you. The next question is from the line of Damayanti Kerai from HSBC. Please go ahead. Hi. Thank you for the opportunity. My question is on Brazil segment. In view of this channel de-stocking, how should we look at the segment growth for FY 2026? I think the currency issues remain. Overall, what kind of impact can we see on the overall EBITDA margin? I'll speak about the top line and local currency, and maybe Sudhir will answer the question on the currency and the EBITDA margin impact. On a like-to-like, on a constant currency basis, we expect the business to grow in double digits, so in the range of 10-12%, a few percentage points higher than the market. The last two years, we've seen the market grow at about 9%. We expect to be higher than that by 2-3 percentage points. Sudhir? Yeah. Damayanti, I think if you look at quarter four, the BRL has depreciated by 5%. Quarter three, the depreciation was 17%. Quarter four has come down to 11%. We should see some improvements happening for the next year. Having said that, Brazil contributing only 10% of my overall revenue, the impact is not that significant on the bottom line. There would be some impact, but it's not significant. Okay. That's good to hear. My second question on India business. If you can bifurcate growth between volume, price, and new launches. You have been maintaining, obviously, above-market growth consistently. At current level, do you have more visibility on, say, more synergies from Curatio? What will be sustaining this above-market growth for India in coming quarters? Just adding on the operating margin part, should we assume 32% EBITDA margin is something which you will sustain in near term? The breakup of India business. Our reported growth is 12%, and the reflection in AIOCD for the quarter is 14%. The breakup of that 14% is 4% volume against 0.2% of the market, 7.4% price versus 5.3% price growth of the market, and 2.3% new products versus 2.3% of the market new products. In terms of Curatio, I think, yes, the revenue growth has been quite accelerated, I would say, over the last couple of quarters. This full year, I think the Curatio portfolio has grown around 18% or 19%. It's become, I would say, relatively sizable in the total India business now. We believe that the upcoming year, at least our ambition is that the growth should be potentially higher than the previous year as well. We're seeing pretty good traction in all the investments that have been made. The territorial expansion where there was not enough presence before, they are all giving us pretty good results, and we continue to reinvest in those brands and those divisions. Overall, I think the Curatio portfolio should continue accelerating the overall India business growth profile as well. Damayanti, on the margin story, I think we'll wait for quarter one, and then probably directionally we can guide you. Okay. Okay. Just a clarification on Curatio, as Aman mentioned, you still see a lot of room to even expand from here on, and that should be one of the key drivers for India business in coming quarter. That's right. That's right. Okay. Thank you. I'll get back in the queue. Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question is from the line of Neha Manpuria from Bank of America. Please go ahead. Yes. Thanks for taking my question. My first question is on the U.S. business. You mentioned that the growth so far has come from volume growth in existing contracts. When should we start seeing traction in new launches now that the facility is cleared, and should we assume a step-up in U.S. in fiscal 2026? I think it'll be we have launches from the products that we filed a few years ago. There will be, let's say, close to 5-10 launches each year. The value of those launches is a little bit not so high because of the delay that we've had in getting approval for these ANDAs. As we ramp up launches of new ANDAs, which were filed in the last two years, you would see that. I would expect not much impact this year, more impact next year, and even higher impact in the year afterwards. Okay. So FY 2027 is probably when you see a better traction? Correct. Understood. My second question, you had mentioned that you should be able to grow margins by 75-100 basis points historically. Any reason for reserving the guidance this time around, given that U.S. will improve? You're talking about double-digit growth in Brazil, and India continues to do well. No, nothing of that sort, Neha. Usually, end of quarter four, I try and avoid giving any guidance. And then based on quarter one results, it's more clearer where we are heading for. You're right, actually. Given the branded business contribution which we have and that two or three levers playing out every year for us, there needs to be an improvement coming in. The only additional thing I would like to guide you is that there's some increase which we believe will happen on the R&D side, not significant, but against 5, maybe moving towards 5.4 kind of a number. That's something additionally which will play out next year. Therefore, my comment that let's wait for quarter one so that directionally I can tell you for the full year what kind of EBITDA margin improvement can happen. Understood. Thank you so much. Thank you. The next question is from the line of Tushar Manudhane from Motilal Oswal. Please go ahead. Yeah. Thanks for the opportunity. Just with respect to this Semaglutide business prospect, would like to understand that in terms of many companies are gearing up for, let's say, launching in first sale. From availability of a product perspective, from a manufacturing perspective, you think it's a constraint, or we got to tie up with specific select companies, or there are multiple suppliers available for this product? No. As far as we are concerned, we have secured supply for the launch. For the injectable, as mentioned, it's a partnered product. The in-house, I mean, the oral product, it will be in-house developed where we have adequate capacity. We don't see any constraint. Even for selecting a partner, as far as Torrent's tie-up is concerned, just to understand, where there are multiple suppliers or vendors available, and so choosing a partner, or the number of partners relative to other products, let's say, when you sort of think about launching in India market, this had a limited number of suppliers. The best way to judge this is by looking at how many companies are working on the clinical trial of the product, which is publicly available information. Now, judging by that number, it's looking like there will be multiple players coming into the market for sure. It's just a question of when their trial is completed and when their entry into the market is approved. Depending on whoever is the first wave, that could depend, I mean, that could define a lot of the market share trajectory for most of the companies. Understood, sir. For the addition of MRs in FY 2026, it's a good guide for that number as well? Yeah. We closed this year at 6,400. Additional expansion is already underway. Maybe by the end of Q1, we should have 200-300 more. Potentially, for the end of the year, we may be between 6,800-6,900. Got it, sir. Thanks. Thanks a lot for this. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Bino from Elara Capital. Please go ahead. Hi. Good evening. There is a product actually called Eslicarbazepine in the U.S. I believe you are a first-to-file exclusivity holder, shared, and have a settlement with the innovator. One of your competitors has already launched the product. May I know if you have launched as well? Yeah. We've launched the product, and we have north of 20% market share in this product. The generic pricing on this is not a very attractive price. Got it. Did you launch it in Q4 or Q1 now? We launched it on day one, which was in Q4. Okay. Got it. Second, I saw that you have taken out enabling resolution for raise of funds. Is that anything in particular in mind? No. There's nothing specific in mind. We do this every year. This is a practice which we've been continuing, I think, probably since the last more than five years, I would say. It is only an enabling resolution, nothing specific. Okay. Thank you very much. Thank you. The next question is from the line of Vivek Agrawal from Citi Group. Please go ahead. Yeah. Thanks for the opportunity. My question is related to Brazil. If you can help us understand, sir, how many MRs or the salesforce that we have at this point of time, have you increased the number of people on ground in the last few years, and how to look, let's say, over the next two, three years as far as the number of people? Thank you. Correct. We have about 330 MRs in Brazil. Essentially, we had two teams, one team in Cardio and one team in CNS. Over the last two years, we have added an additional team in CNS. Now we have two teams doing that. Our plans for the future, right now, we do not have any plans in the short run for this year. We will see how the business develops, how the new products perform, and then we will take a call. We will give some guidance when it comes, in the future when we are ready to add. Unlike India, we are not that mature to add people today. We do not have plans. Understood. Thank you. If you look at the MR productivity, right, I do not have any clarity what kind of productivity is there in Brazil. If you can help us understand basically how far you are from, let's say, normalized level of productivity in Brazil, or is it, for example, the productivity is already optimal? How would you think from that perspective? Thank you. At present, because of the recent addition of these 120 people, our productivity is below where it was before. So it's roughly BRL 200,000 per month. Understood. Again, actually, the question is on MRs, but it is from India, right? You are saying that this particular area, you are expected to get around 600-700 MRs. Any particular segment where you are adding, or is that going to be across the board? No. It will be across a few divisions and maybe two different therapy areas. We're looking at maybe 400-500 new MR additions this year. Understood. Just last question, if I can excuse you. As far as Curatio is concerned, right, this year, the growth was quite decent and around 18%-19% kind of growth. How far or at what level as far as the margins are for this particular business? Do you still expect that the margins can improve from here on in this business? Yeah. Because currently, we are still reinvesting in that business. I would say a reasonable kind of margin is being reinvested in the platform. Maybe next one to two years, that may be required. Over time, it should start tapering down. That is when the margin would further likely expand. It has already come up quite a lot from the pre-acquisition level. There is certainly scope to increase significantly from here as well. Understood. Thank you. Sir, when you talk about 6,800-6,900 MRs, sir, does that include Curatio, or is that? Yes. That includes about 600-650 MRs in Curatio as well. Okay. Thank you very much, sir. Thank you. The next question is from the line of Dheeresh Pathak from WhiteOak. Please go ahead. Yeah. Thank you very much. The comment that you made looks like R&D spend is going to be up like 20% or so this year. Where are you investing in R&D this year? There's a few territories which are seeing an increase, including India. India, we're adding complex products which require higher investments than the usual approvals that we have seen in the past. That's one lever. A few products in Brazil and some of the other territories where Sanjay Gupta adds as well. We've started adding complex products in the U.S., the kinds that think between $5 million-$10 million, as against what we had before, which were oral solids, where the range is typically $2 million per product. There's an aspiration to go into more complex products in the US, which are a little bit more expensive as they require clinical trials. The complex increase is attributed to US in FY 2026? It's more branded segments versus US, I would say. India, Brazil, mainly a large part of it, actually. Okay. All right. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, you may press star and one. The next question is from the line of Shrikant from Nuvama. Please go ahead. Hi. Good evening. Thanks for the opportunity. Two questions. First is on the domestic MR expansion. Which specific therapies have you added these MRs in last year? Last year, we shared that most of the expansion was done in the chronic therapies and in sub-chronic, which would include the gastro. The upcoming year expansion would be within chronic as well. Okay. The second question is on Semaglutide market in Brazil. Can you please elaborate more on the market dynamics there in terms of the current market size and the kind of competition we expect and the kind of volumes that are there? Yeah. Currently, the product has been in short supply. The market size is kind of hard to turn down. It would be north of $500 million, but the exact size is hard to gauge. Okay. Once the product goes off-patent, what sort of competition do you think will enter there? There would be, I would say, between five to 10 filers, but then approvals are not straightforward. We've seen that the filers are there even in more advanced markets like the U.S., but the approvals are much lesser. Okay. How should we think about the price revision once it goes off-patent? It'll depend upon the number of competitors, honestly. I think we'll wait for that comment. Okay. No problem. Thank you so much. All the best. Thank you. The next question is from the line of Rahul Jeewani from IIFL Securities. Please go ahead. Yeah. Thanks for taking my question. Sudhir, you had earlier pointed out that the insulin CMO sales, which we had lost in Q2 and Q3, would get recouped in fourth quarter. That does not seem to have played out. Do you think that that business has got lost, and hence you are pointing to this insulin CMO sales sustaining only at a INR 75 crore per quarter kind of a number going forward? No. I think there was some amount of restocking which was done by the principal. Therefore, quarter four sales at INR 75 crore. You're right, I mean, the sales should have been higher. Our expectation is some catch-up would happen in quarter one and quarter two, what was not there in quarter four. Broadly, I indicated, yes, I mean, the same run rate should minimum get maintained for the current year as well. There should be some catch-up which is happening in quarter one, quarter two. The earlier guided to almost INR 120 crore of sales getting recouped in quarter four. Do you think that the same quantum will get recouped in Q1 and Q2, or the number could be lower now because of, let's say, whatever dynamics are playing out in the insulin market? Rahul, I have actually not taken stock of what's happening for quarter one. Maybe once we have quarter one, I can give you directionally what kind of incremental sales will happen in the insulin business. Sure, sir. That's it from me. Thank you. Thank you. The next question is from the line of Charul Agrawal from Bank of America. Please go ahead. Hi, sir. Thank you for taking my question. I wanted to understand more about the consumer health segment. How are you thinking in terms of increasing the spend from here versus the kind of traction that you are seeing? Yeah. So we have maintained the same number of brands that are on the platform, which right now is mainly four in a meaningful way. We continue to invest in these four brands. We are seeing pretty good traction across all of them in relation to the spend that's being done. I would say out of the four, maybe two brands are taking up, say, 50%-60% of the spend, or rather 60%-70%, actually, and the other two are about 30%. Overall, relative to the investments being made and the size of the relative brands, they're all seeing pretty good acceleration. The two main arrowheads are being Shelcal and Tedibar. Okay. So do we expect the spend to be at similar level, or can it go up significantly from here? From the previous year's base, it would increase slightly. Not anything major, but there would be, say, a high single-digit increase. Thank you so much. Thank you. The next question is from the line of Shyam Srinivasan from Goldman Sachs. Please go ahead. Yeah. Good evening. Thank you for taking my question. Just the first one on the US business, $130 million revenue annually. I missed, or if you could double-click on the traction part, I thought you said fiscal 2027 is going to see a much larger traction than 2026. I was a little surprised. I thought we have an imminent launch coming up for Entresto and many other products as well. Just curious to know why the traction comes next year, not this year. Entresto has been an interesting journey, actually. No pun intended. Basically, we've seen that there has been a kind of delay in the launch of generics on this product. We were anticipating the first generic four-five months ago. At present, we are anticipating a generic in the course of the quarter, July-August timeframe. We expect multiple entrants at the same time or in a short window. I do not think the opportunity is as big for the generic industry as it was a few months ago. We have approvals on this product, and we would be launching as soon as possible and as soon as our settlement agreement allows us in line with the terms in that agreement. It is going to be a multi-player opportunity whenever it happens. Yeah. The date is of 15th July, right? That's when the pediatric exclusivity ends. Correct. Correct. Okay. You expect multiple players there? You can see all the approvals on the FDA's website. Fair enough. Fair enough. In the sense, we did 1% growth for U.S. this year, so in fiscal 2025, what's the likely guidance then for 2026? I mean, my goal right now is to, I have a few opportunities to launch products. I would say in the coming year, I do expect to launch between, say, seven, eight products. Some of them, we just launched that Eslicarbazepine. We just launched the Esomeprazole granules. We have launched another one, which is Diclofenac sachets. We are launching, these are smaller products, but I think in the end, if we have seven to eight launches, it would add up to a meaningful figure, which would help us then compensate for the price erosion as well as other things that happen in the U.S. market in terms of share loss or new competitors or things of that sort. I would say that for the next 12 months, my goal would be some growth in the right direction without trying to quantify it. Understood. Helpful. If I were to look at the balance sheet, Sudhir, just I think you said 0.6 net debt EBITDA. Sorry if I got the number wrong. What are the usages of cash as we look in fiscal 2026? What do you generate? I think the priority is to repay and bring down the debt, right? Which I think maybe by the first half of FY 2027 or maybe quarter three of FY 2027, I should be able to prepay everything and should get it in net cash. At least for FY 2026, the goal is to use whatever cash flows or excess cash which is available to prepay or repay the debt which I have on my balance sheet. Understood. Helpful. Thank you. All the best. The next question is from the line of Dheeresh Pathak from WhiteOak. Please go ahead. Yeah. Thank you again. I missed that comment from Brazil that you were making. Sema, you said the market is $500 million. Do we have a filing, and when do we expect market formation? Let me clarify. The market was about BRL 500 million at the end of 2023. At the end of 2024, Novo Nordisk launched Wegovy, and the market was about BRL 880 million. I'm talking BRL. Currently, we expect the market we do not have analyzed data, but I would expect by the end of 2025, the market to be about BRL 1 billion. That is where I would expect it to be at the end of this year, just extrapolating on the current size and the current trend that I'm seeing. We have access to the product in Brazil, so we have signed up with a partner who has the dossier, and we would be expecting an approval. It is highly uncertain. People who have filed long ago in the U.S. or in Brazil have still not received approvals. I do not know. It's not a straightforward product which would get approval on day one of patent expiry. Hence, our reluctance to make predictions on the timing of launch, on the way it would go from. We would be looking at this as a product. When is the market formation expected, and are we expecting to be in wave one or subsequent? My current expectation is wave one. The only thing which I cannot tell you is how wide is the wave. Technically, it starts in 2026, right? We would expect at least one player. There is one company which I would expect, one very large Brazilian company which has its own product and which has also filed in the U.S. I would expect them to be close to the date of patent expiry. It is up in the air as far as everybody else is concerned. Would you have a sense of the market in terms of volumes? You gave me a value, BRL 1 billion, but we have to think volume like how many pens or auto injectors or how many patients you think are there. No, I don't actually have that data with me. I have been monitoring the value growth, and obviously, the value corresponds to it because the price has not evolved a whole lot in the last two or three years. Yeah, we can provide you with that data if you're interested. Our investigation is happy to provide that. Certainly. Okay. We'll read over it. Thank you so much. Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Sanjay Gupta for his closing comments. Thank you very much for your interest and tolerance. We conclude today's call here, and we hope to speak to you soon. Thank you. Bye-bye. Thank you. On behalf of Torrent Pharma, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.