Ladies and gentlemen, good day and welcome to the Q2 FY26 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 the conference call, please signal an operator by pressing star and then zero on your touchstone 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, Sadhar. Good evening and welcome to the second quarter earnings call for FY 2026. We continue to see robust performance in our branded markets, which accounted for 73% of the overall revenue this quarter. Our two largest branded markets, India and Brazil, each delivered healthy double-digit growth. India business grew at 12%, and Brazil grew at 21%. Constant currency growth in Brazil for the quarter was 13%. On the generic side, U.S. business grew at 26%, and Germany grew at 5%. In constant currency terms, Germany's revenue declined by 5%, mainly due to the continued supply disruption at the third-party supplier. Revenues were INR 3,302 crores, up by 14%. Operating EBITDA at INR 1,083 crores grew by 15%. Operating EBITDA margin for quarter two FY 2026 is 32.8%. The overall leverage, which is the net debt to EBITDA, now stands at 0.45x. A quick update on JB. We have received approval from the Competition Commission of India as well as the Competition Commission of South Africa. The Competition Commission of India approval is subject to complying with certain voluntary modifications, which will be outlined in the CCI final order, which we should be getting this month. We have also received SEBI approval on launching the minimum tender offer, and we should be completing that by December 15th. I now hand over the call to Aman for India business. Thanks, Sudhir. India revenues at INR 1,820 crores registered a growth of 12%. As per the AWACS IQVIA secondary market data, the IPM growth for the quarter stands at 8%. Torrent's chronic business grew at 13% versus the IPM chronic growth of 11%, driven by outperformance in cardiac and gastro. On a MAT basis, Torrent has 21 brands in the top 500 of the IPM, with 15 brands now more than INR 100 crore sales as of MAT September 2025. Field force strength at the end of the quarter stands at 6,800 compared to 6,600 in the previous quarter. We are on track to continue expansion to 7,000 reps by the end of the financial year. The Q2 business grew 27% in H1 and 29% in Q2, driven by strong demand generation on account of OTC ad spends and field force expansion in previously non-covered regions. We are hopeful that the high growth may continue for the rest of the financial year. Going forward, we expect our overall India business to continue outperforming the market growth. Our focus during the year will be to continue improving our market share in focused therapies, particularly chronic therapies, new launch performance, and improving field force productivity in the expanded divisions. I'll now hand over to Mr. Sanjay Gupta for the international business. Thank you, Aman. We will start with the branded generic market of Brazil. Based on internal sales, Q2 constant currency revenue was at BRL 196 million, registering a 13% year-on-year growth. IQVIA data shows Q2 market growth at 7%, with Torrent growing at 15%. We are seeing healthy volume growth coupled with mid-single-digit pricing increase. In Brazil, we have a rich pipeline of 65 molecules which have been filed and are waiting for ANVISA approval. In the U.S., we registered constant currency revenues of $39 million, up by 21%. Growth is coming from new launches where we have achieved our target market share, and we are also seeing increased purchase volume on existing contracts. Moving on to Germany, our German business registered constant currency revenue of EUR 30 million, down by 5%. As highlighted last quarter, growth continues to be impacted due to the disruption at a third-party supplier. I would like to conclude my comments here and open the call up for questions. Sadhar? Thank you very much. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and then one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Again, to register for a question, please press star and then one. Our first question comes from the line of Damyanti Kerai from HSBC. Please go ahead. Hi, thank you for the opportunity. My first question is on India business. Two things. First, can you split the growth across the drivers, volume, price, and new launches? The second part will be, can you talk a bit about GST impact on the business during the quarter? Yeah, sure. As per the AWACS IQVIA dataset, our growth for the quarter was 12% versus 8% of the market. Breakup of volume is 3.7% versus 0% of the market. Price at 5.5% versus 5.5% of the market. New products at nearly 3% versus 2.5% of the market. GST impact was minimal, I think probably due to additional discounts and some one-off costs. I think it's probably about a 0.5% impact, I would say, so not too much. Since then, now the business is as usual, right, after 22nd of September? The business is as usual? Sorry, what was the question? No, I think after GST implementation, post 22nd of September when this change was implemented, now operations in India are back to normal level, right? Initially, maybe some days you had seen some disruption. Yeah, after the GST impact, this month has been pretty much in line. We would rather wait for this month to get over and then December because the seasonality impact of Diwali and all would play a bit of a role. I think it's pretty much in line with our H1 performance. Sure. My second question is on Brazil market. Very strong underlying growth, which continues. My question is, your plan for filing for semaglutide. I understand earlier you commented in India you plan to launch at the time of market formation. If you can talk a bit about your plans for Brazil market, have you filed the application? I can confirm that our application is with ANVISA. What we don't know is hello? Sorry, you said your application is already filed with ANVISA? Yes. Okay. We are waiting for approval. I really cannot comment. I assume we will expect the approval to come. Okay. My last question is on Germany business. When do you see supply disruption getting normalized, which impacted recent quarter performance? We are obviously working and pushing our supplier towards ending it quickly. Right now, all indications are that to some extent it will continue in Q3. Hopefully, Q4 onwards, it will not be the case. Okay. Thank you for your response. I'll get back to the queue. Thank you. Our next question comes from the line of Abdulkader Puranwala from ICICI Securities. Please go ahead. Yeah, sorry, sir. Just to follow up on the previous one. In Germany, what kind of growth are we looking at this year, and how should we look at it from an FY 2027 perspective? I would refrain from giving a guidance because what we are facing is kind of an out-of-the-box situation with one of our major suppliers facing disruption. Like I told the previous caller, I would expect this to be over by Q3. If it does, by any chance, not get over, then we will be impacted going forward. I would refrain from giving guidance on Germany going forward until the issue is resolved. All right. Just on the semaglutide opportunity in Brazil, how critical is this launch for you and any color on how do you see the market shaping up? The market is, you know, market is huge. It's like a billion-dollar market by the time it goes generic. Essentially, the market is shifting towards Wegovy, and Ozempic is coming down, as can be expected. What we are expecting is an approval in wave one. I don't know exactly how ANVISA is going to take these. We hear different stories: are they going to process by batches, or are they going to process in order of application? Right now, there's a bit of uncertainty as to how ANVISA is looking at all the companies who have filed. I mean, it is a major opportunity. It's probably a very important opportunity no matter the number of competitors. Beyond that, I don't know what you expect me to comment. Usually, we target 15% market share for our products. I think 10%-15% of SEMA would be a material opportunity and would move the needle for Torrent. Again, we are not sure about the approval process. Understood. And so just one final one from my side. Also, if you could just comment briefly on how your key brands have done in India. What I'm referring here to is Shellcal, Unionzyme, and acquired brands like TEVAR. All brands have done pretty well this quarter. Just to give a sense of the therapeutic growth breakup, cardiac has grown 14% in the quarter. Cardiac is our largest contributor. Gastro has grown 15%. The overall derma piece, including curation, has grown about 29%. Overall, it has been a broad-based kind of growth that we have seen. We think the chronic business should continue. The high volume growth is well, given the expansion that has happened over the last couple of quarters. For the upcoming quarter, we believe the same momentum should hopefully continue. Understood, sir. Thank you. Thank you. Our next question comes from the line of Rahul Jeevani from IIFL Securities Limited. Please go ahead. Yeah, thanks for taking my question, sir. Given that now we have received approval from CCI for the JB Pharma acquisition, can you talk about in terms of when do you plan to have operational control of the asset and what kind of synergy number are we looking at from, let's say, our next two- to three-year perspective? Rahul, as I said in the opening briefing, that we've got CCI approval for MTO, which will kind of get over in the third week of December. Probably January, we should see the closing of transaction. Once that is happening, I think we should be able to start giving you indications on what kind of synergy value we are looking at. Okay. So you will comment on synergies after, let's say, the buyout from KKR in January 2026? Correct. Correct. Oh, sure, sir. Just one other question on the India business. This quarter, we saw very healthy volume growth of around 3.7% versus market volume growth being very tepid. What is allowing us to, let's say, outperform volume growth? Are we seeing volume growth in our focused therapies? Yes, we are mainly driven by chronic performance in most of the chronic divisions. If you recall, most of the expansion since the last two years has been in this segment, cardiac, diabetes, and CNS. We are seeing the bulk of the outperformance happening there. Some of the new launches from last year and two years ago have now become pretty sizable contributors to the overall India business. They are also continuing to grow reasonably well. That is also adding to the growth. The overall volume growth, I think six months into the year, I believe, now is giving us a pretty good signal of comfort that the expansion probably has kind of given us that desired outcome. Hopefully, that continues for the rest of the year. Our expansion also is on track. We will be almost at 7,000 MRs by the end of the year. We plan to enter into one new therapeutic area this quarter as well, which hopefully we should share by Q4 on the status of that. Sure. If you could also comment in terms of how are you looking at the semaglutide opportunity for the domestic market? While Brazil and you are targeting to be in wave one, what about the India market? Yes, the underworld continues to be in the first wave on market formation. When that could be is still uncertain. We would rather wait before commenting on that. It certainly seems based on the Mounjaro launch that the market potential may be higher than what was expected even a couple of months ago because Mounjaro has just taken off very rapidly. The dynamics would be obviously very different at generic pricing. Yet to see what exactly the opportunity is. Our market share targets have been fairly aggressive in the recent launches. We will have the same targets for semaglutide as and when it launches. If we are in the first wave and if we do launch well, I think it would be a pretty meaningful growth accelerator in the next year. Sure. Just in terms of SEMA, when the market opens up, would we launch both the injectable or the anti-oral version o r do you think that the oral launch could be a few years away? No, not a few years away. Maybe slightly after the injectable, but certainly both are planned within the next financial year. Okay. Sure. That's it from my side. Thank you, sir. Thank you. Before we take the next question, a reminder to all the participants. You may press star and then one to ask a question. Our next question comes from the line of Tushar Manudhane from Motilal Oswal Financial Services. Please go ahead. Thanks for the opportunity. Sir, again, on the India market side, the price growth has been sort of getting a little moderate. We used to have 7%-8% price growth. We are now down to 5.5%. While, of course, the broad-based growth is definitely a commendable thing, just on the pricing aspect, if you could throw some light. No, I think this is pretty much in line as to what we had planned from, say, a couple of years ago that expansion has to deliver volume growth. Pricing growth has to be in line with the market growth. Some years it may be higher. Some years it may be lower. This year we felt this was the appropriate kind of price growth that maybe the market may allow. I think within this range, plus minus 1% or 2% should continue for the next couple of years. Got it. With respect to GST, few peers were concerned and had an impact because of GST. Interestingly, we did not have. Does it mean that we would have had a decent market share probably at a higher discount? No, I would not think so. Our impact was minimal, o ur discount was minimal. I cannot comment on what industry has seen as an impact, but we have certainly not seen beyond 0.5% of growth impact. Secondly, on browsing, typically the product approval timeline is pretty long, t his is our earlier experience. From that perspective, what's your thought on semaglutide market formation? You're right. Traditionally, in fact, Brazilian approval delays are getting longer. It used to be 24 months, and today if you file a new dose here, it's going to be 36 months. ANVISA is treating semaglutide in a different manner because of the importance of the drug. I'm not very clear as to they have given out statements which have evolved over time. We would expect them to treat this kind of as a priority filing in the interest of patients and in the interest of healthcare economics in Brazil. Hence, I don't think this is a typical filing. Got it. On the same product for India market, the patent expires in March. Market formation likelihood in March itself, or is there a risk for the market formation itself getting a bit delayed? There's a litigation ongoing right now. So hard to comment. We'll have to wait for some time to understand exactly when the market can form. Got it. Got it. Thank you. That's it. Thank you. Our next question comes from the line of Amit Kadam from Robeco. Please go ahead. Yeah. Hi. Good evening. Just can you take us through some changes in the working capital? Saw some little deterioration in terms of receivables and payables. Just can you elaborate what has happened in this particular half? Yeah. When the GST implementation was rolled out, I think most of the industry players have extended the credit period for one month. That is something which has impacted the cash flow as at 30th September, which will come back in October. And payables? Yeah. There is an acceleration of insurance discounts which we see happening in Germany. That is the reason why payables have gone down. Okay. How do you think about this line? This will also normalize by next? Yeah, yeah. It should normalize. You'll see these things normalizing in quarter three. Okay. One more point is that you usually book the forex gain in the other income. Can you elaborate what's the number there? We have a forex loss of INR 39 crores, which is sitting in other income. If you look at the other income, it's negative, right? Okay. Okay, INR 39 crores, t hat's what you said. Yeah. Forex loss of INR 39 crores. Okay. Sorry. That's it. Thanks. Thank you. Participants, you may press star and then one to ask a question. Our next question comes from the line of Neha Manpuria from Bank of America. Please go ahead. Yeah. Thanks for taking my question. First one on India, the field force expansion that we have done, I think you mentioned the number 7,000 by year-end, which is adding like 600 people over the course of FY 2026. If you could just give us some color where we are adding this field force, is there any specific therapies that we're looking at? Was this for market coverage? Any color here? Yeah. About half would be for the existing divisional expansion within chronic and sub-chronic, and about half would be for a new therapy entry, which should be probably by early Q4, sorry. That is the broad breakup. The new division you mentioned, you will announce at a later date? That's right. Yeah. Understood. On Brazil, Sanjay, I think you mentioned that we should expect one or two product launches every year in each division. If I look at Brazil's growth in the last few quarters, last two quarters, actually, there has been very strong growth. Is this, has this been driven by these product launches coming through, or is that yet to reflect in the growth going forward? No, the product launches have been going on since two years. So these numbers incorporate the new launches. Plus, we are seeing a very strong so we launched a couple of big products, right? We launched Rosucor and Zitinet, which is a BRL 600 million market. And then we launched Dexamethasone, which is an ADHD drug, which again is a BRL 600 million market. So we have a few products in very large markets. So even with market shares in single digits, still it has a material impact on our top line. So new products are contributing, and we are seeing also very good volume pickup on our existing mega brands. So we have eight products which are existing mega brands which are doing well in volume. Terms and price increases continue in single digits. So overall, the business is healthy. In Brazil, what would be your focus therapy areas for product launch? Yeah, right now, we're operating in CNS. We're operating in cardio, and we have some old legacy diabetes products, and we are also preparing to launch all the new wave of diabetic products. Those are the areas where we currently operate. Got it. Thank you so much. In the branded generic segment, we have another segment. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. That's a small one, right? We've reduced that segment over time. What we reduced, Neha, was we discontinued actually what was called the tender business, which was the government tender business. What we have is the pure generic generic segment, which accounts for about 15% of our sales. Oh, okay. Fair enough. Got it. Thank you. Thank you. Our next follow-up question comes from the line of Tushar Manudane from Motilal Oswal Financial Services. Please go ahead. Sir, I might have missed the comment, but just wanted to know the number of ANDAs that have filed approved launch for the second quarter. In the U.S., we would have during the course of this fiscal year about four to five year-end files. We are ramping up this number, and we expect this number to reach maybe close to 10% next year, and subsequently about closer to 15. That is the ramp-up in U.S. investments which is happening or which has started since about six to nine months. This year would be mid-single digit, mid-year close to 10%, and the year after closer to 15%. Accordingly, what R&D spend as a percentage of sales should be considered? Yeah. It should be around between 5%- 5.5% in quarter three, quarter four put together. I would say the increase up to 10% or 15% would probably be a kind of one-time increase because if you recall, we've had a bit of a dry spell for the last couple of years. In order for the business to maintain a decent growth profile, we have a bit of catching up to do in that sense. I think after two years, three years, again, it may come down to single digits filings. Got it. Just again, strategically given this segment, per se, maybe on account of return ratios or profitability point of view, there is relatively limited investment into this geography. Is there any way probably to sort of exit and allocate that capital more for a branded business of probably India and Brazil, probably sale of ANDAs and the plant as well? Is that a way out? No, that's not what we've been considering at all. We think that because of this slightly prolonged period of no launches, we're in this position right now. Given the nature of the business in the U.S. and filing duration and approval uncertainty, your investment generally would take minimum three years, five years to show reasonable kind of movement in profitability. We are aware that obviously this is not the greatest position to be in right now, but it should improve from here if the filings are done right and the products are launched. Essentially, the launch engine has to be back working again. I don't see any reason why one should exit this market at all. Got it. Because earlier, the inspection of the compliance was the key concern, but we've resolved that for now, pretty long period of time. The product commercialization or the optical, both filing as well as approval and then commercialization, is still taking a little longer t he question. Yeah. It is true that the resolution took time, but that was essentially due to COVID, right, when we could not get the inspectors in for more than two years. No, no, sir. I meant post-compliance coming in place. After that, obviously, it's taken a little longer to see the pickup in U.S. sales. Yeah. I think the R&D engine is more like a battleship. It takes, so we had oriented it more towards Brazil and Germany, and then we've now ramped up the U.S. The fruits of that ramp-up will be next year when the filings move up to close to 10, and the year after, when we expect them to move up closer to 15. It is a little slower process. It is slower than what I had communicated in the past, but it seems that it is coming around. Sure. Thanks. That's fine. Thank you. Our next question comes from the line of S. Mukherjee from Nomura. Please go ahead. Yeah. Thanks for taking my question. Just on the comment you made on the optimism around the U.S. business, if you can take us through your thoughts as to how you see this business scale up from a slightly longer-term perspective, what are the kind of filings you would be chasing, any differentiated assets, if you have any big plans for injectables, biosimilars, etc., if you can sort of, since you would be staying put in this market, how should we think about the business evolving over the next five years? I think optimism is to the degree that we want to return back to profitability, right? I do not think we are intending to make any large investments in the U.S. GX space in terms of CapEx or anything of that sort. We believe the current infrastructure that we have would allow us reasonable opportunities to launch a few good products in the next, say, three-year period, five-year period. We are also looking at partnering with, four certain products in which capabilities we do not have today. The idea is that we need to get back to a reasonable level of sustainable profitability, which, because the last few years has not been achieved. I would say the optimism is essentially directed towards that and nothing beyond that that we are looking at investing. Yeah. Okay. Perfect. Thanks. Can you share your CapEx number for this year and next year? What's the planned CapEx? I think H1, the total CapEx is roughly INR 200 crores plus. For the full year, it should be maybe around INR 300 crores. Over the next three years, on an average, I think the CapEx should be between INR 250 crores-INR 300 crores per annum. Okay. Okay. Thank you. Thank you. Our next question comes from the line of Kunal Randeria from Axis Capital. Please go ahead. Hi. Good evening, sir. In the last one and a half years, we have had around 1,200 reps. Do you mind sharing which divisions you've added these? Which divisions you mean? Yes, sir. I mean, which cardiac, just main cardiac or gastro? Exactly as added? Across almost all. Cardiac, gastro, including diabetes, derma, pain management, VMN, pretty much all. It's been, I would say, majority in the chronic divisions and maybe, say, 30%-40% in the sub-chronic divisions. Right. Right. So there was no one particular therapy where you are adding. It was just across the board. Got it. Got it, sir. Secondly, sir, for the upcoming GLP-1 launches both in India and Brazil, will you need to form a separate team and add more personnel, or have you already recruited those? For Brazil, it'll be part of our existing diabetes team, cardio and diabetes team. At some point in the future, we will expand this team, but right now, we don't plan to do it in the next 18 months. Excellent. India, too? Yeah. We'll probably share that in the coming quarter. Thank you. Got it. Thank you. Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to Mr. Sanjay Gupta, Executive Director of International Business, for closing comments. Thank you. Thank you all for your interest in Torrent Pharma. We look forward to being in touch with you. Bye-bye. Thank you. On behalf of Torrent Pharma, that concludes this conference. Thank you all for joining us, and you may now disconnect.