Ladies and gentlemen, good day, and welcome to Q3 and nine months FY 2025 earnings conference call of Shaily Engineering Plastics Limited. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Sanghvi, Managing Director from Shaily Engineering Plastics Limited. Thank you, and over to you, sir. Thank you very much. Good afternoon and a very warm welcome to all the participants to the post-results earnings call of Shaily Engineering Plastics. I have with me Mr. Sanjay Shah, our Chief Strategy Officer, and SGA, our investor relations advisors. I hope you've had a look at our investor presentation that is uploaded both on our website as well as the stock exchange. Let me start by giving some highlights on the operational performance of the quarter. We delivered a robust top-line growth of 25% to INR 197.6 crores in Q3 FY 2025, and have improved our gross margins and EBITDA margins, which stands at 47.5% and 23.4% respectively. This is mainly due to increased sales from our healthcare segment, which grew by 52% on a year-on-year basis. In the healthcare space, during Q3 FY 2025, we have successfully signed six additional contracts with different customers for pen injectors and auto-injectors for GLP-1 and other therapies. We have also taken part in CPhI in November 2024, where we had excellent three days of traction and meetings with several potential and existing customers on new projects and new molecules. We anticipate that our medical device business will compromise about 30% of our revenues over the next three years, enhancing organizational value significantly. In January 2025, we have incorporated Shaily Innovations FZCO as a wholly-owned subsidiary of the company in Dubai. Presently, we're extending our reach to global markets through our subsidiaries, Shaily UK and Shaily Innovations. We're seeing growth on our IP-led platforms going forward. We are in discussions with customers regarding volume commitments and capacity commitments for the next 3-5 years and would be aligning our manufacturing capacities accordingly. Our focus is in line with expanding our horizons to include contract manufacturing for medical devices and products featuring our own intellectual property. The dedicated efforts invested in advancing our injection system platforms are beginning to show favorable outcomes. In the consumer segment, we've been awarded new business from two global retail chains. Supplies for the same will start from Q1 and Q2 FY 2026. Secondly, we successfully participated in Cosmoprof in Mumbai to showcase our expertise in specialty packaging as well as decoration. Despite the ongoing geopolitical challenges, revenues from this segment grew by 20% year-on-year to INR 141 crores in Q3 FY 2025. Sorry, there's an error in that number. I'll have Sanjay correct that number. I apologize. In the industrial segment, we've unfortunately had a small amount of de-growth by 8% year-on-year to INR 12.5 crores in Q3. We expect the growth to come back at a steady pace. That is all from my side. Yeah. INR 140. Number is correct, INR 140. I apologize. That is all from my side. I shall now hand over the call to Sanjay Shah to give you the operating and financial highlights. Thank you very much. Thank you, Amit. Good evening, everyone. I shall share with you the highlights of our operational and financial performance of Q3 and nine months FY 2025. Following which, we will be happy to respond to your queries. During the quarter, we processed 6,308 tons of polymers as against 5,223 tons in Q3 FY 2024. For the nine-month period, we processed 18,396 tons of polymers as compared to 16,718 tons in nine months FY 2024. Machine utilization rate was at 45% in Q3 FY 2025 and 43% for nine months FY 2025. We expect this to increase in the coming year. We expect to increase utilization levels to around 80% in the next two to three years. Exports during Q3 FY 2025 and nine months FY 2025 stood at 79% and 71% respectively of total revenue. I shall now brief you on the consolidated result highlights. Revenue stood at INR 197.6 crores during Q3 FY 2025 as compared to INR 158.4 crores during Q3 FY 2025, a growth of 25% year-on-year. EBITDA stood at INR 46.3 crores during Q3 FY 2025 as compared to INR 23 crores during Q3 FY 2024, a growth of 40% year-on-year. EBITDA margin stood at 23.4% for Q3 FY 2025, an increase of 260 basis points over Q3 last year. PAT stood at INR 25.2 crores during Q3 FY 2025 as compared to INR 14.5 crores during Q3 FY 2024, a growth of 73% year-on-year. PAT margins stood at 12.8%, an increase of 360 basis points over Q3 last year. Cash PAT stood at INR 35.9 crores in Q3 FY 2025 as compared to INR 23.9 crores during Q3 FY 2024, a growth of 50% year-on-year. Coming to nine-month FY 2025 consolidated results. Revenue stood at INR 569 crores in nine months FY 2025 as compared to INR 473.3 crores during nine months FY 2024, a growth of 20%. EBITDA stood at INR 123.8 crores in nine months FY 2025 as compared to INR 87.2 crores during nine months FY 2024, a growth of 42%. EBITDA margins stood at 21.7%, an increase of 330 basis points over nine months FY 2024. PAT stood at INR 364.5 crores in nine months FY 2025 as compared to INR 38 crores during nine months FY 2024, a growth of 70%. PAT margins stood at 11.3%, an increase of 330 basis points over nine months last year. Cash PAT stood at INR 95.6 crores in nine months FY 2025 as compared to INR 63.6 crores during nine months FY 2024, a growth of 50% year-on-year. Our ROCE and ROE stood at 22.8% and 18% respectively as of 31st December 2024. The growth in business has been achieved with efficient use of capital. Our debt to equity stands at 0.43x and long-term debt to equity stands at 0.09x as on 31st December 2024. Coming to consolidated segmental revenue break-up for nine months FY 2024. In the consumer segment, revenue stood at INR 407.7 crores during nine months FY 2025 as compared to INR 364.5 crores during nine months FY 2024, a growth of 13%. In the pharma segment, revenue stood at INR 108.6 crores during nine months FY 2025 as compared to INR 69.1 crores during nine months FY 2024, a growth of 57%. In the industrial segment, revenue stood at INR 47.7 crores as compared to INR 39.7 crores during nine months FY 2024, a growth of 20%. This is all from our side. We can open the floor for Q&A. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star 1 on the touchtone telephone. If you wish to remove yourself from question queue, you may press star 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, wait for a moment while the question queue assembles. The first question is from the line of Harsh Shah from Dalal & Broacha. Please go ahead. Yeah. Thanks for the opportunity. Congratulations on a strong set of results. Few questions from my side. Firstly, do you envisage any sort of impact on us if U.S. implements certain tariffs considering that U.S.A. is a large geography that we cater to, if not the largest? That was my first question. Harsh, could you repeat your question? There's no Yeah. New admin. Sure. It is too early to talk about it. We have just as much information as you do. Probably you might have better information. Okay. At this point, unknown. Okay. Got it. Secondly, on the thing wherein we signed six health care contracts. Any sort of period in terms of execution, by when do we have to complete this? And is it purely related to manufacturing or there are certain projects that would be even be developed in Shaily U.K.? It is the combination, Harsh. Part of it would be development, part of it would be supply. Once a customer basically signs up, he would basically be taking those devices from us on a long-term basis. These would be contracted to be long-term. As Amit mentioned in his speech, some of them are for GLP-1, some of it are auto-injectors and some of it for other therapies. This is basically the basket of offerings which we have contracts across the basket or the portfolio which we have with different customers. If you could quantify the size of the orders, if possible, in terms of pens. In terms of putting in a number right now would be very difficult. A lot of it will depend on how successful is that customer when the drug moves off patent and when he gets his FDA approval and when he launches it. What this basically represents or clarifies is that we have a lot of customers who are signing up for devices with us, which is good for us. Got it. Any number you would like to put, say, for the number of pens that you have sold in the first nine months of this financial year, if you have it handy? Harsh, I really don't have that number handy. We'll probably I don't have it handy at the moment. We will send that number out. Sure. Last question from my side, the thing that you mentioned in the investor PPT with respect to the two global retail chains. Are these completely new customers or have you supplied to them earlier also? We have not done any business with either of these customers over the last five years. With one of them, we have done some business prior to five years. I think we would take it as new customer. Related question, how big this can be in terms of opportunity that we can do? We have been in discussions with them for over a long period of time, we were able to close on something. That's how we would look at it. Okay, got it. That is from my side. Thank you. Thank you. The next is from the line of Hitesh from Investor. Please go ahead. Hi, sir. First, congratulations on a good set of numbers. Amit, you made in your initial remarks a comment around volume and capacity commitments for next three to five years. Is it possible to elaborate this? Are we facing any constraints on the capacities when the vendors come to us and they ask for dedicated supplies? How should we look into this? There isn't a constraint. You see, there's an X capacity we've built on every product from day one, which would, of course, be single digit millions. Two of our products particularly have higher capacity because we've built that knowing the commitment from a customer. Now, when you look at GLP-1, potential semaglutide launch is coming up for 2026, 2027, 2028, et cetera. Then we will need to build capacity. For that, we're working with customers to get volume commitments. Okay. You're most positive on Semaglutide, followed by Lira and Teri. You indicated 2026, 2027, 2028 launches are there. I think in the prior calls you had indicated a capacity that we will be looking at around 35 million pens. Are we sticking around with the same number? Yes. Now, Teri, we don't need any more capacity on Teri because it is, from a volume perspective, small product, but value is quite good. Lira, we scaled up. The Lira and the insulin pen is the same, we already did the scale-up. We created 11, 12 million capacity last year. Therefore, we're not looking at any capacity increase on that. The only capacity increase we're looking at is for the pen and the auto-injector on the semaglutide. Okay. Just correct me if I'm wrong. Our current pen capacity would be around 40 million, and I think we had indicated a roadmap to, say, 100 million pens, but we have not given any time horizon over here. When we say 3 to 5 years, it's like 40 to 100 over 3 years, 5 years. Basically how does one bifurcate this 42 plus 35, 75, and the balance, and how does the insulin fit in over around the basket of 100 million pens? Hello? Hello? Yeah. Sorry, Hitesh. Yes. Look, I think the communication we've done earlier is still very much the same plan. Not a whole lot has changed. From having about 35 million capacity right now, we're looking at adding another 50 million-80 million over a period of time. Let's say between now and December 2026, we're looking at adding another 50 million-60 million capacities on pens and auto-injector combined. Of course, if we're adding capacity, then we should assume that sales should start shortly after the addition of capacity, probably within the 12 months. Okay. The question on insulin, I think 35 million pens right now, I don't have a breakup of how much insulin contributes. You did indicate incremental 35 will be Semaglutide. If I assume all of it is I don't know how to break it up. If you could help us comprehend that. 35 million includes contract manufacturers and our own IP. Right. Which is the majority at the moment is insulin. Okay. Insulin% will continue going forward or is it something that will decline based on profitability? How are we looking at it? Look, every year, a lot of these are depending on launch years, right? Launch year, you'll obviously have higher volume of another product, which means that insulin could potentially as a% share come down. It balances out over a few years, so it's not that every year you keep seeing a single product continuously grow. You'll also reach a stage on a single product where it eventually plateaus out. Can I probably rephrase that answer a little bit? Yeah. Hitesh, the way we would look at it is, as we move forward over the next three to five years, you will see our own IP-led pen platforms contributing much higher revenue as compared to contract manufacturing. Also our IP-led platform also includes insulin sales. Insulin, yeah. Sure. This is a follow-up, a quick one. Do we have the brownfield optionality at the current place in Gujarat or will we have to scout for new land building? What will be the CapEx corresponding to that? The second question is: What sort of regulatory approvals do we require as we look at the scale-up from say 40 to 100 million pens with respect to certain U.S. FDA approvals, or are there any other regulatory bodies which need to approve us, or are you already done with the process? I think we will obviously get back to the shareholders in due time on capacity expansion plans, where, how, et cetera. On the second question, there's no further regulatory approvals needed for enhancing capacity. All the work required to enhance capacity is internal to Shaily, and then you just have to file the work that you've done, including design verification in part of your update to the filing. Sure. That is quite helpful. All the very best. I'll join back with you. Thank you very much. Thank you. The next question is from the line of Nirali Gopani from Unique PMS. Please go ahead. Yeah, hi. Thanks for the opportunity and congratulations on very good set of numbers. Amit, my first question is on the Dubai subsidiary. You briefly spoke about it in your opening comments, but if you can share some more details. That the work we are planning to do there is similar to what we have been doing in our U.K. subsidiary, the opportunity size, and the reason why did we choose to do it in Dubai when U.K. is doing so well. Briefly on that. I mean, multiple reasons. Upfront on day one, we're not going to start doing any inventive work in Dubai. What we're planning to do is setting up kind of a global test lab where you can run. What happens, right? Today, all the testing we do, we only do up to design verification. Customers still want us to do their end of the verification, but we often refuse because we don't want to handle drugs at Shaily. We don't also have the license to handle drugs at Shaily. One aspect is also that customers from an agency and regulatory perspective don't feel comfortable doing design verification at the same site where we've done our engineering kind of or exhibit batches. It started from a plan to create this test lab, which also becomes a part of the innovations that we do in the U.K. Also when you actually start shipping products in the market, you will have market complaints, whether it is related to us or not, but oftentimes devices will be sent to us for analysis. From a logistics standpoint, it just becomes easier to get things in and out of the UAE. Even today, we have significant logistics constraints when customers ship us cartridges, PFS, et cetera. That was the idea, but it might be something larger than that as of today. We will of course inform the community when we have more information. Right. Perfect. Amit, the two new consumer retail chains that we have tied up. The model of working will be similar to what we are doing with home furnishing, right? This will not be off-the-shelf, which we have always avoided to do. The product will be similar to what we are doing for the home furnishing today? Product will be similar to the home furnishing customer, but we will be offering them off-the-shelf products for the first time. Oh. Won't this lead to inventory problems? Because we have always avoided doing off-the-shelf and hence we never worked with any other retailers. No. These are fixed orders, I don't think from an inventory standpoint there is an issue. We will need to make some minor investments in tooling where we have some agreement with the customer in terms of how do we make the recovery for that. That's what it is. Okay. We don't see any negative impact on our numbers because of this model, right? No. Perfect. Amit, a few quarters back, you had spoke about working on three new sectors. One was consumer electronics, one was telecom and healthcare. Healthcare is for sure doing very well. Any update on the other two sectors? Are the talks going on, any update would you like to share on that? I mean, we're going through the process of building that business. We unfortunately do not have an additional update apart from the fact that we're scaling up the capabilities that we need to enter that business successfully. As and when we have an update, we'll certainly let you know. Right. Amit, if I'm not wrong, in this call you just mentioned that the medical devices will form 30% of the revenue in the next three years, and in the last call, that number was 25%. Is this because of these new orders or the contracts that we have signed, or you see that growth ramping up very fast and you're being a bit conservative? I think it's at 30%, not 40%. No, 30%. The thing is there's not just as much information in the public domain as we have. Having said that, we certainly see a really good opportunity to ramp up over the next two to three years. If it's not GLP-1s could be-- I mean, GLP-1s will ramp up GLP-1 is not going to be the only contributor to that share of revenue we're talking about. We will also be ramping up maybe a few other novel studies on the business. Could be some very nice one-off projects. Information that we cannot put out in the public domain at the moment. Some potential innovative projects is what we're looking at also. Okay. Fair enough. One last question. Amit, our healthcare has been doing very well for the past few quarters, and it is still definitely at an inflection point. Can you talk about how have you built a team on the healthcare side over the last two years? Any hirings that you would like to highlight? How is the team built up there? It's a combination of old talent at Shaily. Of course, very good engineering talent at Shaily. Probably hired in the last 26 months from the pharma industry, come with a lot of regulatory, GMP kind of know-how. In fact, our head of operations is from the pharmaceutical background. Hiring a very high level of engineering talent from countries like Singapore and Malaysia. This is how we're kind of building up on the capability side. All the support staff, which is business development, product strategy, including our R&D in the U.K. We have now scaled up to 14 people in the U.K., and we're looking at adding another three to four in the current calendar year. The U.K. scale-up is also something that my wife manages, of course, but it's going exceptionally well. We're really focused on the business. We're really focused at creating very significant value and always being on the forefront of technology. That's great. Congratulations once again, and it is good to see how the company has shaped up in the last two years. That's it. Thank you. Thank you. The next question is from the line of Anand James, an individual investor. Please go ahead. Congratulations on a good set of number. My first question is on the consumer electronic side. Are there any updates there in terms of the number of customers or the clients that we are working with? Is there a definite agreement that we are looking to sign, any timelines around that? I'll come to the healthcare questions later on. No, we don't have any contracts in place. We are working on a roadmap with customers to eventually get there, but we don't currently have any contracts in place. Okay. Are we working with multiple customers there? Yes. Okay, great. On the pen side, we have signed 6 contracts for pen injectors. Would it be possible for you to tell which therapies these are, and are these for GLP-1 or some other therapies? Therapies. I mean, majority of the 6 contracts are GLP-1s. Okay. You have insulin, you also have parathyroid hormone, and you have a migraine medication. Okay. These are well spread over. Okay. Yes. The next question is, we are looking at the expiry of GLP-1 patents in Middle East in middle of 2025. We are looking at Canada, rest of the world expiring January 2026. All of these markets, we need to build the supply chains much before the patent expiry. Is it fair to assume that all the Semaglutide volumes will start building up for these markets from, let's say, Q2 of this calendar year? Is that a fair assumption? Calendar year 2026. I don't think Q2 of calendar. I think Q2 of financial year for sure. Let's say an overlap between Q2 calendar and Q2 financial. Okay. Q2 calendar, Q2 financial. Yeah. Okay. In terms of capacities of Semaglutide, I think we were doing one line, 40 parts per minute, 12 million capacity. What kind of CapEx do we expect for Semaglutide ROW demand for next year? Are we looking to add bigger lines, like 80 parts per minute, 25 million annual capacity per line? No. Anand, let me correct you. The 40 parts per minute line we have is for the Protean pen. That's liraglutide and insulin. We have effectively, we've been running it for some time, effectively about 12 parts per minute line for Semaglutide. We are building an 80 parts per minute line for Semaglutide. Oh, okay. A second 80 parts per minute line also in the coming 18 to 24 months. We're looking at probably, let's say, creating capacities. I don't know how much of that exactly will get sold in the exact same time frames. We're looking at about INR 40 million capacity build-up, INR 40 million-INR 50 million. Looking at where we are in terms of our capabilities and devices, are we talking to customers in terms of dedicated lines, taking advances from customers for those dedicated lines? Any arrangement of the types of take-or-pay kind of agreements that we are building with clients, because we are putting up large capacities. Are we going to have these kind of arrangements, agreements with the customers? Do we have any of them? Short answer, yes, we will. Sorry, I could not hear. Can you just repeat? I said, yes, we will. That's what I mentioned in the speech, that we're looking at basically negotiating volume commitments, capacity commitments with customers. One last question. CapEx plans for FY 2026 and FY 2027, if you could just elaborate on them. We have more clarity today than we had in the last call. See, Anand, it's right now At the present, it's changing quite fast. We're going to consolidate all the information, come up with a strategy and make a decision, and probably inform everybody on the next call. Okay, great. Thank you, and all the best. Thank you very much. Thank you. The next question is from the line of Mohit Surana from Monarch Networth Capital Limited. Please go ahead. Sir, congratulations on the set of numbers. Very general question, sir. This quarter, actually the utilization has been up compared to last year as well as- I can't hear you. I'm sorry. The line is not clear. Is it audible? Am I audible now? A little bit better. Louder. I just wanted to ask, the utilization has improved this quarter versus last year as well as the last quarter. Our revenue has been flat for this quarter compared to the last quarter. Still, we were able to increase our margins. Just wanted to understand how did we institute or specifically achieve this kind of results? Mohit, when you look at utilization number, you're looking at utilization number across the company. We don't report individual utilization numbers. Right. There would be pockets where you would have had better utilization. There would be pockets where you would have the same utilization numbers. That's the way to look at it. Understood. Sir, the margin expansion that we saw this quarter, was that mainly because of the healthcare segment? Was mainly because of what, sir? Mainly because of the healthcare segment, pharma segment? Yes. Understood. Yeah, sir, the rest of my questions have already been answered. Thank you. Thank you very much. Thanks. Thank you. The next question is from the line of Ritwik Seth from One-Up Financial Consultants. Please go ahead. Hi, good evening, sir. My question is to understand the opportunity of GLP-1. Sir, you mentioned that we are adding about 35 million capacity for pens and auto-injector for semaglutide. Did I hear it right? Yeah. What you said is the total pen capacity which we are adding will be totaling to the number which you talked about, yeah. Okay. The pen and the auto-injector is for the fill and finish. Is that understanding right? Fill and finish? We are not doing the filling of the API? No, we don't do fill and finish. We are only a device maker. We'll be just doing the plastic molding of the pen as it is, right? No. We will basically be supplying the device. Yes, we will be supplying the device. Okay. The fill and finisher will basically put in the vial of the drug into the device. Okay, got it. You will be supplying it to the player who will be doing the fill and finish. We will supply to our customer. Our customer might have contracted with somebody for the fill and finish. We might be required to deliver it to the fill and finisher. Got it. Sir, what would be the cost of a pen realization, any sense currently? It varies. It's very difficult to put in a number. There will be different pens will have different pricing. Volume, what is the commitment level from a customer? What are the slabs? What is the MOQ? Colors, activities involved. There's a lot of it. But broad range could be something as low as $2 to maybe $7.5, $8 for different therapies. Okay. Got it. semaglutide could be anywhere from $2 to $7 per pen. Yeah. Not just semaglutide, this could be any therapy. Any therapy. Okay, got it. Okay, sir. That's it from my side. Thank you. Thank you. The next question is from the line of Aman from Ascot Investment Management. Please go ahead. Yeah, good evening, sir. My first question is on Shaily UK. Did the TUSV exhibit batches start in Q3 or we are expecting it to start in Q4? Do we expect a good bump up in, say, Shaily UK numbers in Q4? The exhibit patches, Aman, will be supplied from India. They will start now, but you will see the revenue in India. Okay. The platform fees and everything is already as a part of Shaily UK, already in the numbers. Only the manufacturing- Correct. Portion of it is already captured and portion, it's milestone-based in Shaily UK. As we execute the project and achieve the milestones, we raise the relevant invoices. Sure. Now, given we have ramped up our team in Shaily UK, we have a good growth in this year, but for, say, next year or next two years, what kind of growth should we assume in Shaily UK? Shaily UK will focus on two things. You have a set of teammates, or set of the team, which will focus on the lifecycle management and scale-up of all the products that we're scaling up. Right? There's a lot of development activities still involved when you go from four, eight to 16 or 32 cavities and similarly when you scale up the assembly line. Portion of the team and the focus is going to be doing a lot more with innovators. We want to take on potentially larger projects, longer-term commitments, and focus on developing devices for the innovator. The pipeline, anyway, our own pipeline is we still have about four devices in the pipeline, which will happen over the next 24 months. From around GBP 5 million run rate, can we expect it to scale to GBP 10 million-GBP 15 million kind of run rate in the next two, three years? Look, hard to say it yet, but the short answer is that you should be able to scale it every year. Some years you will have higher growth, some years the growth rate will come down, but over a period of time, it should average out and we should expect growth year-on-year. Sure. Next question is, if you can update on the Teri and the Lira launch which was expected in this calendar year, 2025. Any rough timeline, can it happen in the next quarter? It will take two, three quarters? If there is a delay, is it mostly on the customer side? Because there are some other generic companies who are launching these products. Won't our customer be missed if it is delayed in terms of launch in both Teri and Lira? If you can talk about both of them individually. Good question. I am also constantly engaged with the customer to find out are they going to launch. Let's hope next three months or four months for both launches. Again, but I am not giving a guidance and there is nothing in place as an impediment that prevents launch. We should hope that they can launch in the next two quarters. Okay. Is it like one, two customers or there are maybe three, four customers? If one doesn't launch, then other can launch. Both Teri and Lira combined. Some are in terms of filing than the other. We have multiple customer on both molecules. Some are more advanced, some are not quite as advanced. They will have to wait in queue till their files are approved. Sure. Next question is, you've talked about, we are building this now PPM line for SEMA. Any timeline when it will be completed, and does it include auto-injector line or auto-injector line will be a separate line? When can we see a ramp-up in, say, auto-injector sales for us? I think auto-injector ramp-up, you will see some ramp-up because we have a line right now which where we can manufacture about INR 6 million-INR 7 million a year. Roughly INR 6 million-INR 7 million, yeah. We're going to see some ramp-up in the current upcoming 12 months also. The larger line will come up in 2026, middle of 2026 to Q3 calendar 2026. That line will obviously be a kind of a INR 25 million capacity line. INR 20 million-INR 25 million. I have not figured out the exact math yet, but somewhere around, consider INR 20 million as capacity for the auto-injector, which will come up in Q3 calendar 2026. Okay. The first line which you're talking about, which we are already building, when will that be coming up? PPM first line. As early as September, October of this year. Okay. Just final few questions. First one, we have a very good spring-based device with us, which I think there's no other competitor as such in generic industry. When can we expect the, say, market launch of that product, whether it can be Lira, it can be SEMA, when can we expect and maybe which markets, if you can talk about it? I think spring pen, the Neo Pen, will first be launched in Canada, India and Brazil. Okay. Say in a year's time, say Canada's expiry is happening, say around one year time, we expect this pen to be in market? I'd say, yeah, keep an 18-month kind of a window. We should expect NEO to be on the market in 18 months. Sure. We were, sir, expanding our capacity in insulin to eight cavity, two lines. Is this operational or from which one will it be operational? This is specific to the spring device? No, the insulin one. We were increasing from, I think, four cavity to eight cavity. We were trying to double our capacity, which you said it might happen in this quarter. We are under the last phase of qualification. We're trying to do our best to complete it this quarter. It could spill over into April. Between March and April, we'll finish the qualifications on the increased cavity. Sure. On the patent challenge for our drugs, you said we were expecting something, will it happen at the time of, say, regulatory launch of U.S., or can it happen with ROW launch also in the next one, two years? I mean, look, Canada, there's always a potential because the innovator supplies into Canada, the innovator doesn't exist in India. I doubt very much if the innovator is there in Brazil. It is there in Brazil. Some markets you might see a challenge, some markets you won't. At this point, there's enough information in the public domain, the innovator would have figured out a strategy on how to prevent others to enter. I think it's difficult. The sheer size of filers is just too high. There's multiple devices one can go to market with, we ourselves have two devices which people can go to market with. I don't think they can fully prevent it. There might be litigation, I think it's a little difficult to prevent it. Sure. One final question on non-pharma side, sir. On the consumer segment, after a long time, we have seen 20% kind of growth. This segment was growing, but much slower than the company level growth. Now with these two retail chains coming up, I believe we had some contract won recently in Gas Nord and everything. Do you expect this consumer segment with 20%, 25% growth or company level growth will continue for next couple of quarters? Suman, I don't think we should basically look at it to 20%, 25% growth. The two new orders which we have taken on are small orders. We are trying to make a start with these guys, and we'll see how it goes forward. We have seen some growth on the home furnishing business, and that was because of some new products being starting and everything. Let's see how that does go in terms of going forward. Okay. Thank you. These were the questions. That's all. Thank you. Thank you. The next question is from the line of Rupesh from Intelis Capital. Please go ahead. Am I audible, sir? Yes, Rupesh. Yeah. Thank you. Thank you for the opportunity, sir. My first question is, which all platforms do you expect will be commercialized for semaglutide? I mean, Protean, Neo, Toby, Dristan. Can you list them? NEO and Harmony. Okay. On auto-injector side? Toby. Okay. Sir, you have talked about by December 2026, let's say this 50 million-60 million of, let's say, GLP-1 capacity comes online, then existing, we have some capacity for Lira, some capacity for auto-injector, some capacity for SEMA. Let's say calendar year 2027, let's say December 2026, everything goes fine, capacity comes online. Is 50 million number in the realm of possibility or a decent probability number, 50 million devices on GLP-1? Rupesh, a lot of it will depend on how the market response is there from customers and everything. You need to understand that in the pharma part of the business, you need to create capacities upfront. Customers would want to come and audit your facilities and everything. There has to be a time lag between from the time you create capacity to the time you start on manufacturing and supplying. Again, what I mentioned earlier, I'll again reiterate the same thing is that a lot of it will depend on how does the customer, even when the customer gets his approval and what's the customer's response in the overall marketplace. That will decide how much utilization will happen. Sorry, sir, those things I understand. Sorry to interrupt. I understand those things that API challenges, filing challenges, supply chain challenges, all of that I understand. There are things which are not in our control. Let's say customer does a good job, then INR 50 million, is it possible or it's completely off the mark estimate? It is possible. I'm not saying it's not possible, but there will be a lot of factors against this. The reason why we are creating the is based on what we are seeing and based on discussions which we are having with customers. Okay. Then, sir, another coming to this customer, what I understand, again, is the supply chain is very complicated. API is very difficult to make on both synthesis and on purification. The whole filing process is very complicated. Do you see that this approval risk for customer turning into a customer concentration risk for us? We have multiple customers. Yeah on the same therapy. If you look at sema, we have multiple customers on sema. We have multiple customers on the auto-injector for sema or other therapies which we are looking at. Let's say top one, maybe let's say out of top two, maybe one customer doesn't get approval, then do your estimates go down by, let's say, 50%? Is that or it's not like that in at least your view? It's a little too early to talk about it. I mean, to be honest, we don't have the We are in discussions with customers, as Amit mentioned earlier, to look at what sort of volume commitments are there and what sort of capacity commitments and take-or-pay which customers are giving in. There will be those discussions which we've been having, and capacity would basically be built based on some confirmation from customers based on that. Okay. Then, sir, this insulin, I think you had announced this INR 10 million order. Where are we on that? Because you are saying now qualification will be in April. How many we have delivered, and then how much do you expect to deliver in FY 2026? We have been supplying these pens. We will not get into individual volumes, but we have been supplying these pens from the existing capacity which we have. Once we have the qualified capacity online, we will look at supplying the increased volumes. You had there maybe some INR 4 million-5 million this year and INR 4 million-5 million next year. That is the kind of split we were expecting. That now has shifted significantly? It'll be a little less this year and a little more next year, because I think we want to get the eight-capacity link online before we do anything else, right. Okay. Where are we on the repeat orders, sir? It's not just the tooling. The assembly capacity also goes hand in hand in that. You want to make sure you run both at the same time. Okay. Where are we on the repeat business for insulin? I mean, this 10 insulin business also become, let's say, a 50, 60 million kind of number in calendar year 2027, 50, 60 million pens. Rupesh, from a therapy perspective, all of these businesses, there is enough market size available to become INR 40 million, INR 50 million, INR 60 million. Whether it becomes for us or not, we don't know, and how long it takes is also another question. Opportunity is there, and we're doing everything we can to capitalize on it. Hard to answer a specific question. The business is still in a nascent stage. Okay. The final question from my side is on the commercial manufacturing of GLP-1. I mean, can you indicate a range of gross margin? A broad range will do, sir. I mean, I'm not asking any specific number, but a broad range, like let's say, can our gross margin be between, let's say, 60%-80%? Just an idea. No, it would not be fair for us to communicate that. You can estimate it. Okay. Thank you for answering my questions. Thank you. Thank you. The next question is from the line of Ashish from Jaisinghani & Associates. Please go ahead. Yeah. Hi, am I audible? Yes, sir. Yes. Sir, on the GLP-1 capacity, by what timelines do you expect a good 70%-80% utilization number? Ashish, what we've said is, you will see improved capacity utilization from FY 2025 to FY 2026 to FY 2027. I think talking about it on a quarter-on-quarter basis or something will be very difficult for us. Yeah, if you were to look at from FY 2025 to FY 2026 to FY 2027, you will see utilization levels improve and volumes going up. If I might have heard it correctly, you said the commercialization should start by quarter two of FY 2026, right? Yeah. We should start manufacturing and supplying by quarter two of FY 2026. Okay. Fair enough. You also made a comment saying that possibly you are in discussion with some of the innovators. Are we also exploring something on those biosimilar lines as a therapy? I mean, we're exploring innovative molecules with the innovators. We're already in discussions with biosimilars. Yeah. Yeah. Okay. Potentially, this could become very big, all the pens and the auto-injector setups. Okay, got that. Thanks and all the best. Thank you. Thank you. Thank you. The next question is from the line of Pritesh from Lucky Securities. Please go ahead. Yeah, sir. Just a clarification on all the capacity figures that you said. Just to conclude that the current capacity is 35 million, and over the next two years you are looking to add 60 million. Is this correct? Yeah. Pritesh. The current capacity is somewhere between 35 to 40 million, depending on the pen- Yeah Combination, which gives us INR 35 million. Yeah. We are looking at adding another INR 50 million-INR 60 million as capacity. Okay. The other thing, in this INR 35 million, did you mention that about INR 7 million-INR 8 million is auto-injector capacity? Right now, no. We have about INR 6 million auto-injector capacity. Okay. That number I don't know, it could be between six and seven. I can actually calculate for you. Just a second. It's okay. You are not way off that INR 8 million, INR 7 million. Sorry, INR 5.9 million. INR 6 million. To which you said you will be building a capacity which will take you to INR 40 million. No, not on the auto-injector. On the auto-injector, we will add another INR 20 million. On the pen we will add the balance. Okay. In that INR 50 million additional, INR 20 million is auto-injector, basically. Correct. Okay. All auto-injectors, the application as of now is SEMA or there are applications in auto-injectors other than SEMA? Yeah, there are applications in auto-injector other than SEMA also. Okay. There are applications other than SEMA. Lastly, sir, in your presentation, signed six contracts. If you could tell us how many are SEMA in this, how many are non-SEMA? Any indication or therapy areas? Four. Sorry, 3 are SEMA. The balance are non-SEMA. All the SEMA has to be auto-injectors, right? SEMA is auto-injector or SEMA has administration via non-injectors also? No, SEMA is both pen and auto-injector. Okay. SEMA injector. In fact, auto-injector is only in the U.S. market. Okay. Understood, sir. Thank you very much. Thanks, Pritesh. Thanks. Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. Thanks for the opportunity. Sir, some of the large generic companies which are expected to be first to file entries into Canada as well as India and the Brazilian market, they seem to be extremely bullish on the prospects of SEMA. It seems that they are clear with the regulatory authorities on the pen as well as on the API side. Any indications from some of your customers that how big these markets can be for pen suppliers like us and what can be the expected volumes from them? I think the same question has been asked here half a dozen times in various different forms. Market size is very large, could be INR 40 million, INR 50 million, INR 60 million for us. We don't know when that happens, but as we have conversations with customers, get commitments, we are building the capacity. Sure. Will some of our platforms like Harmony be for the Canadian markets as well, or it will be for other markets? Harmony will be for? Canadian- Canadian market. Which is expected to be launched in, let's say, Q4 of FY 2026. Harmony will be for all of the launches. Yeah. Will be across markets. Okay. We'll be launching in Canada as well through this. Yes. Okay. Sir, on the new two customers that we have added on the consumer side, although as you've been indicating that these are small contracts. Do you think the entry that we have got into these customers, any potential side that you can indicate how big, if you're able to supply to them? What can be the potential scale from these new customers over the next 3-5 years? Both these customers are very large. The potential with these customers is large enough. We will have to see how it plays out over the period of next one month, 12-18 months. Okay. Any update on the carbon steel plant? How is the utilization? How is any new orders that you have got? Carbon steel plant is steady in terms of business. Any new contracts that we have got and how is the capacity utilization currently? We currently continue to Hello? Yeah. We have orders which we basically currently execute. We had talked about commercializing four new products, which we have commercialized in the last quarter. We talked about it earlier. Yeah. We're looking at basically scaling up on that. Sure. What will be the capacity utilization currently for the plant? We don't give out individual capacity utilization numbers, so it will be very difficult for us to talk about that. Okay. Sir, have you seen increase in the utilization this year and next year, cover? Again, what we would look at is, if you were to look at more from a year-to-year basis, yeah, we have seen improvement in capacity utilization. Sure. Okay. Thank you. Thank you. The next question is from the line of Manish Verma from Divite Analytics. Please go ahead. Yeah. Hi. Am I audible? Yes. Yeah. I think most of my questions have got answered because I was last in the queue. I have only one question. Do you see any conflict of interest because you will be supplying the pens to both innovators as well as generic companies? If the device is same, will it create a conflict of interest or are you developing separate devices for them? No. There's no conflict of interest. We never tell anyone that we're going to exclusively work for you unless there's a very significant commitment given by the person. Otherwise, there's no actual conflict of interest. Sure. In terms of volumes, what would be the breakup between innovator company supplies and the generic companies you are planning to supply out of the total pen GLP-1? The innovator companies except the AllStar that we do for Sanofi, all the other are still conversations. Innovators will take a long time to get to market. It's not something that will happen in 12 or 24 months. Likely things that take over between 24 and 48 months or 60 months to get to market in the first place. Volumes could be very significant, but a lot of it is unknown at the moment. Sure. What I'm trying to understand is the volumes which you are forecasting for GLP-1 pens, how much of that will be supplied to innovators like Eli Lilly and how much will be supplied to generics? 0 to innovators, all to generics. Manish, I think you're confused on your question. Whatever we are talking about with the innovators could be a different device for a different therapy for a different molecule. That's what Amit mentioned. We are trying to see how we can work with innovators on some innovative molecules. Yes. Novel GLP-1. Not Semaglutide. Okay. Understood. Okay. Thank you. That was my last question. Thank you. Thank you. The next question is from the line of Manjeet Grahir from Solidarity Investment Managers. Please go ahead. Hi. Thank you for taking my question. I just wanted to get one clarification again. The generic companies with whom we have partnered right now for trial batches on Semaglutide, are we the sole partners for them or do they partner with multiple device companies and then take a call finally as to which one will they take commercial? Okay. Our partnership with the customer would be a sole partnership. Customer itself, so for example, customers, not all of them, but some of them, they kind of hedge their own bets. They could run a program internally. They would piggyback off someone else's program. They could use, in a particular region, a separate file, someone else's file to go forward in that region. There's lots of things happening in the GLP-1 space. I would say that I think with most of our customers, we would be the sole device suppliers. Amit, just following up on this to get the technicality right. The way it should function is, let's say there's a company A, they would have different filing for, let's say, U.S., different filing for, let's say, U.K., or different filing for, let's say, Brazil. For each of these countries, they may choose one supplier or they may file with three different suppliers. Is that the way to think of it, sir? Yeah. No, that's not how it works. Okay. What they would likely do, again, everyone is different, but what they would likely do is, say company X is running a Semaglutide program with company Y's device, which is not Shaily's device. Now, Shaily's customer is running a program internally with Shaily's device. The customer could do a deal with company X that, "Look, I'm going to fund some of your development or give you X amount of money, but I will have access to your file to market the product in so and so and so regions." What they do is they kind of hedge their bets. I know companies who have three programs running simultaneously or companies who are only running one program, or companies who are not running their own program at all and just piggybacking off someone else. There's a lot of variation between customer to customer. Just one company will not take three different devices for the program because financially, it doesn't make sense. You have to create all these lines, run all the stabilities, run the verification tests again and again. It doesn't make sense. Amit, what you're telling me is, let's say a generic manufacturer of Semaglutide would choose to partner with one device vendor at the initial stages, basically till they get their approval. Right. After they get their approval, how easy it is for them to sort of use another device supplier or it's practically then only us they can use for all practical purposes? I mean, look, every market is different. You have ROW markets where it could be relative. It's never simple, but complexity-wise, low complexity to change. You'd have some ROW markets where it is still very difficult to change. Some that follow the same EU or the U.S. standards, you have to conduct trials again, especially human factors or usability studies or formative studies to change the device. In the U.S., I would say it's practically looking at essentially running the whole program again, or at least a significant portion of the program again. Got it. Last question, Amit. We would have visibility as to which country we are being tied up for right by our customers when they take trial batches from us or we don't have that visibility? No, we have the visibility. You had mentioned a few calls back that probably 60, 70%, I think, of players may have tied up with us. This 60, 70% is all U.S. or were you referring to across all geographies? I mean, most customers that are working with us will go to the U.S., we also have partners that don't intend to go to the U.S. Okay. Got it. Very helpful, Amit. Thank you so much. All right. Thanks. Thank you. The next question is from the line of Gunil Desai from Turtle Capital. Please go ahead. Hi. Good afternoon, everyone. Am I audible? Yes, you are. Please go ahead. For my first question is, I think, this discussion around volume tie-up, but I think the dynamics that we are describing is that customer also may not have a line of sight in terms of volume that they may be able to generate in a market. Given that, how does these dynamics work in terms of they giving commitment to us and is our incremental second line on semi, it's contingent upon those volume tie-ups? How should we think about it? Gunil, could you probably repeat your question? I think we lost you somewhere in between. Sure. Essentially what we are saying is that the consumer also when, let's say, our customer, they may not have a line of sight in terms of how much volume they may be able to sell in a particular market. We are looking for some kind of a volume commitment from them, right, for the semi and other products. Right how will they do that volume commitment in first place? Second, is our incremental semi line, which is going to come in FY 2026, is contingent upon those volume tie-ups coming through? That is how we should think. All of these guys have various business scenarios right from startup launch to, let's say, three years on the market or kind of a four-year plan or a five-year plan. When we ask for commitment, it's not that we're telling them that you commit whatever your best-case scenario is. Customers can certainly commit that, okay, we'll buy X million pens over the next 24 months or over the next 36 months. All kinds of options are on the table. There are aggressive customers who want to book capacity upfront, so they will commit to a higher volume upfront and take that risk also. Okay. Is our capacity addition contingent upon those commitments? Sorry. Our capacity will basically be contingent on, A, the type of commitment which we have from our customers and based on our discussions what we think is the capacity which we should be creating. It'll be a combination of that. Got it. Sir, second question on healthcare. I think whatever incremental revenue, 50% growth that we are seeing from INR 70 crore nine-month basis to INR 178 crore. Large part of that is coming from our own IP insulin and contract manufacturing insulin growth, right. Is that a right way to look for this growth and The large part comes from our own IP pens. Got it. On the base business, I think you mentioned that 20% growth is probably too much to factor in going forward. On nine-month basis, we have done around 13% growth. Should we be in that range of 13%-15% kind of a number on base business? Especially, I think we had bid for some large RFQs for our consumer customer. Have they come through and how should we think about that? Yes. I would say that more from a 3-5-year perspective, we can look at that sort of a growth. The geopolitical situation has been, with what happened, the change of leadership in the U.S., I think we need to get a little more clarity in terms of how things are moving across the world. Okay. There is no clarity yet from your customer side as to how the FY 2026 may pan out, right? That's how we should look at it. I would say we have clarity in terms of how FY 2026 will pan out because we have that sort of a visibility. This is more in terms of a long-term view or a medium-term view. Got it. Any more significant updates on the consumer electronics side? I think you said you'll come back to us. I think Amit already mentioned that. We will let you know as and when we have an update on that. Got it. Thank you. All the best. Thank you. The next question is from the line of Nirvana Laha from Badrinath Holdings. Please go ahead. Hi. Thanks a lot for the opportunity. My question is regarding the U.K., the Shaily UK revenues. There was a thought amongst some of us that the U.K. revenues could eventually sort of drift off as the GLP-1 development slows down and molecules get commercialized. I think from what you've said to an earlier participant, not only do you expect the revenues to hold, but you're actually expecting some kind of Y-o-Y growth to continue for several years. This will come from a new program that we are doing outside of GLP-1 and GLP-1, right? That's the right way to think about the Shaily UK revenue? Yes. Okay, thanks. Did I hear you right on insulin, that you have paused the current contract supplies of insulin till the eight-cavity line comes online? Yeah. Not significantly paused, but we have to pause because there's an X volume we can supply from the four cavities, which is not enough for them to meet even a requirement of, let's say, one of their lines. We need to finish the eight-cavity program before we restart supply. I see. In Q4, it's possible there can be some temporary volatility due to this changeover. I don't think so, there'll be something else which will make it over. Yeah. There's enough that makes up for it. Sure. Last question on the GLP-1 sema space, I think for Toby you mentioned that the Toby device is right now getting supplied only in two regulated markets, we are expecting to ramp up Toby significantly to INR 20 million. Does this mean that whether directly or indirectly, we have visibility into supplying to the innovator at this point therefore? No. Toby is not going to innovators. Toby is going to the generator. Who will eventually take it to whichever market they would like, but the innovator has an auto-injector semaglutide only in the U.S. It would just make sense that Toby goes to the U.S. There could be companies who do Toby outside of U.S. also. It's not something we control. Okay. Would it be possible for you to confirm whether Toby is for sema or for some other molecule? We have multiple molecules in Toby. sema obviously will take the chunk of the volume. Okay. Got it. Thank you. Thanks, and all the best. Thank you. Thank you very much. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for closing comments. Thank you everyone for joining the call. I hope that we've been able to answer your questions adequately. For any further information, I request you to get in touch with SGA, our investor relations advisor. Thanks once again. Have a great evening. Thank you. On behalf of Shaily Engineering, that concludes this conference. Thank you for joining us. You may now disconnect your lines.