Ladies and gentlemen, good day and welcome to Shaily Engineering Plastics Limited Q4 and FY 2025 earnings conference call. 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 touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Amit Sanghvi, Managing Director, Shaily Engineering Plastics Limited. Thank you, and over to you, sir. Thank you very much. Good morning, and a very warm welcome to all the participants to the post-quarter 4 FY 2025 results investor 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 had a look at our investor presentation that is uploaded on our website as well as the stock exchange. Let me start by giving some highlights on the operational performance as well as the business highlights. In FY 2025, the company delivered a strong revenue growth of 22% to INR 787 crores, with EBITDA margins expanding by 350 basis points to 22.7%. This is mainly due to increased sales from our healthcare segment, which grew by 53% on a year-on-year basis. Let me give you a short brief on overall business updates for the quarter as well as for the year gone by. Starting with the healthcare segment, we've signed two new customers for our IP-led pen platforms during the quarter. In FY 2026, we will start commercial supplies of pens for GLP-1 drug, semaglutide. We are seeing growth of our IP-led pen platforms going forward. We are in discussions with customers regarding volume commitments or capacity commitments and requirements for the next three to five years, and we would be aligning these commitments with our manufacturing capacities. We're expanding our pen manufacturing capacity to add another 40 million-50 million pens per year across primarily two platforms, both for servicing the growing demand of GLP-1. The CapEx for this expansion would be close to INR 150 crores. During the last year, we signed eight contracts with different customers for pen injectors or auto-injectors, primarily for GLP-1s but also for some other therapies. We participated in Pharmapack in Paris to showcase our innovation in the medical space. We've also participated in other global exhibitions across the U.S. and Europe to increase our presence in regulated markets. In FY 2025, our revenues from healthcare segment have grown by 53% on a year-on-year basis to INR 165 crores, 21% of our top line. We anticipate that our medical device business will comprise about 30% of our revenues over the next few years, enhancing value and profitability. Our focus is in line with expanding our horizons to include contract manufacturing for medical devices, products featuring our intellectual property, and some specialty applications. Within this industry, we remain committed to continuous growth and innovation. At this point, I would like to address concerns and questions that we've been receiving from the market regarding the impact of oral GLP-1s on the injectables. It has always been known and also cited in various historic reports that orals would certainly play a role in GLP-1, but would likely be limited to a market share of somewhere around 20%. Oral glipron is not new. There has been published reports of various stages of development and trials since 2018, I believe. Also, the data that is submitted based on publications of their clinical trials show a weight loss of 77% in diabetic patients, and they project a 13%-15% weight loss in obesity trials. This is still lower than data for Wegovy and significantly lower than data for Mounjaro or Zepbound. Now, I'm no expert, but what I've learned from other experts in the domain is that orals have a lower efficacy, primarily because of the bioavailability of the molecule. For example, oral semaglutide has less than 2% bioavailability versus 80%-85% for the injectable. Also, one of the reasons why you see a much higher API content in the oral product. It is also important to note that there are currently between 55 and 60 GLP-1s under various stages of development. Even out of these 55 to 60, we see that 75%-80% are in injectable form and 20%-25% in oral form. Just to summarize, orals will certainly play a role in this growing market. However, we believe, backed by various reports, that their share will be closer to 20%, with the rest going to injectables. Coming to the consumer segment, we've added two new products in plastics and three new products in carbon steel with a home furnishings customer in Q4 FY 2025. We've also received new business from a marquee FMCG customer for two new products during the last quarter. Over FY 2025, we received new business from two global retail chains for which supplies have started in this quarter. We did also receive business for two new products from a marquee FMCG customer and been awarded business for two new products which are under development during last year. We've seen an improvement in our carbon steel business for the year. Revenues from this segment grew by 17% on a year-on-year basis to INR 561 crores in FY 2025. I apologize. pertaining to the consumer segment. Lastly, coming to the industrial segment, we've received new business from marquee customers for automotive components in Q4 FY 2025. Over the year, we have confirmed business for supply of knobs for exports and been awarded business for automotive components. In FY 2025, revenues grew by 12% to INR 61 crores, and we expect steady growth in this segment. We have recorded the highest ever revenues and profitability in FY 2025. This has been on the back of improved traction seen across segments and ramp-up in projects. Visibility we have across various businesses gives us immense confidence that we'll be able to scale up further and grow. Last topic from me before I hand over to Sanjay. I just wanted to provide us a short update on our development pipeline, something that I've mentioned in the past. For the emergency use auto-injector, our program is progressing well. We plan to complete development and supply clinical batches in Q4 of current FY. For the last 12 months, we've been working on the next generation of GLP-1 devices. The foundation of this development comes from having conducted user studies and seen over hundreds of hours of videos to understand how patients behave at large. We have now developed a device that will be non-priming, fixed dose, activated by a simple pull and push mechanism instead of dialing, along with a dose counter to show the remaining doses in the device. All of which results in something which is simple, accurate, and intuitive. With this device, we intend to target global large pharmaceuticals. Our last development pipeline on the soft mist inhaler, we have reached the stage of getting one of our concepts cleared for intellectual property and will now be moving forward with the full development program. That is all from my side. I shall now hand over the call to Mr. Sanjay Shah to give you the operating and financial highlights. Thank you very much. Thank you, Amit. Good morning, everyone. I shall share with you the highlights of our operational and financial performance of Q4 and FY 2025, following which we will be happy to respond to your queries. During Q4 FY 2025, we processed 6,536 tons of polymer as against 5,380 tons in Q4 FY 2024. For FY 2025, we processed 24,932 tons of polymer as against 22,098 tons in FY 2024. Machine utilization rate was around 44% in Q4 FY 2025 and 40% in FY 2025. We expect this to increase in the coming years, and we expect to increase utilization levels over the next two to three years. Exports during Q4 FY 2025 and FY 2025 stood at 80% and 78% respectively of total revenue. I shall now brief you on consolidated for Q4 FY 2025. Revenues stood at INR 217.8 crores as compared to INR 170.6 crores, a growth of 28% year-on-year. EBITDA stood at INR 54.6 crores as compared to INR 36.3 crores, a growth of 51% year-on-year. EBITDA margin stood at 25.1%, an increase of 80 basis points over Q4 last year. PAT stood at INR 28.6 crores as compared to INR 19.3 crores, a growth of 48% year-on-year. PAT margin stood at 13.1%, an increase of 180 basis points over Q4 last year. Cash PAT stood at INR 39.7 crores as compared to INR 29.3 crores, a growth of 35% year-on-year. Coming to FY 2025 consolidated highlights. Revenues stood at INR 786.8 crores as compared to INR 643.9 crores during FY 2024, a growth of 22%. EBITDA stood at INR 178.4 crores as compared to INR 123.4 crores during FY 2024, a growth of 45%. EBITDA margin stood at 22.7%, an increase of 350 basis points over FY 2024. PAT stood at INR 93.1 crores as compared to INR 57.3 crores during FY 2024, a growth of 63%. PAT margin stood at 11.8%, an increase of 90 basis points over last year. Cash PAT stood at INR 135.3 crores as compared to INR 93 crores during FY 2024, a growth of 45% year-on-year. Our ROCE and ROE stood at 24.4% and 18.5% respectively as of 31st March 2025. This has been achieved with disciplined use of capital. Our debt to equity stands at 0.4x, while our long-term debt to equity stands at 0.07x as on 31st March 2025. Coming to consolidated segmental revenue breakup for FY 2025. In consumer segment, revenue stood at INR 560.8 crores as compared to INR 481.2 crores during FY 2024, a growth of 17%. In pharma segment, revenue stood at INR 164.7 crores as compared to INR 107.7 crores during FY 2024, a growth of 53%. In the industrial segment, revenue stood at INR 61.4 crores as compared to INR 55 crores during FY 2024, a growth of 12%. That is all from our side. We can open the floor for Q&A. Thank you. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone 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. The first question is from the line of Aman from Altitude Investment Management. Please go ahead. Yeah. Good morning, sir. Congrats on this set of numbers. Couple of questions from my side. First is, sir, in the presentation you have mentioned two new customers for IP-led platform. Could you talk about which these platforms are? Yeah. We got one for NIO and one for Toby. Sure. Sir, we were expecting some commercial launches for teriparatide. Any timelines for the same? Do we expect someone in Q1 and Q2? Say, for the full year, how many teriparatide launches do we expect in FY 2026? We have received commercial orders for teriparatide, so we are going to produce and ship. Now when it actually gets launched, fingers crossed, any time over the next three to four months, hopefully. Maybe five months. For how many customers do we expect for FY 2026? We expect two customers. I think we have a lot more customers than two, right? Only two are expected to launch in this year? Correct. Sure, sir. On the CapEx plan for FY 2026, you talked about INR 150 crores for pharma. What will be the gross block after this CapEx? Is there any other CapEx lined up for any other division for FY 2026? The overall CapEx which we will end up doing will be about INR 180 crores, INR 185 crores. Predominantly INR 150 crores is going into pharma for capacity expansion in terms of our pens and everything. Gross block will go up about INR 170 crores by the end of the year. Sorry, sir. What will be the gross block after the CapEx in pharma? Pharma gross block will be. Probably somewhere in the region of about INR 350-INR 375. Yeah. Okay. This will be enough for next one to two years or do we expect similar CapEx in FY 2027 as well? I think, Aman, it's a little early to tell because everybody's dealing with what market will look like post-launch here. Let's just, I think, kind of wait. We are doing our expansions largely based on committed volumes from customers. We don't want to maybe do any expansions except a small% kind of buffer, but where we don't have either committed forecast or volume or take-up base. Sure, that makes sense. Next question is, how many pens did we sell in FY 2025, and could you talk about our target for next one, two years? I knew this question was going to come up, but I haven't had the exact answer. Unfortunately, my business development team is traveling at the moment. I believe this year, I can tell you this year we're looking at selling somewhere around 30 million-35 million pens this year. For FY 2026? Yes. And say rough- Yeah. Sorry, you are saying these are conservative estimates? Take it at 30. Unfortunately, like I said, since two weeks, my business development team has been traveling. We haven't had a chance to catch up. Yeah, about INR 30 million is what I would assume that we're going to sell this year. Yeah, roughly for FY 2025 over FY 2026, you are almost talking about, say, 100% kind of number of devices growth. Roughly. I'm not talking about exactly. Is this correct? Yeah, I was going to say that it will be around 70%. Yes, that's kind of what we're looking at. Aman, just to add to Prabhat that the large part of that growth is going to come from our own IP-led pens platform. Yeah. Sure, sir. Could you talk a bit about, so you have given on the U.K. business, you talked about we are commercializing one project at least in Q4 FY 2026. In terms of growth, so this year was Right. We are adding a lot of people in U.K. For FY 2026 and FY 2027, what kind of growth should we assume in our U.K. business? What I would say is, when you take a look at our international business, take a look at numbers collectively from the U.K. as well as Shaily Innovations in UAE. What you'll find is that combined there is going to be growth, but in the U.K. likely that it'll be around a similar number as what we've done this year. Okay. If you take the combined numbers, sir, what kind of growth should we assume, say, FY 2026 and FY 2027? Aman, I think getting into individual growth numbers, we would refrain from giving. You've talked about it in the past, which you're aware of. Looking at history, Aman, there will be growth, I think, yeah, we want to refrain from giving individual U.K. growths, especially. Sure, sir. Finally, the question before I come back in queue. On the industrial side, sir, we have won a couple of projects, knobs and other things. While our growth was only around, I think, 12% in FY 2025. Given strong order book, can we expect maybe 40%-50% kind of growth and this segment crossing INR 100 crore contribution in FY 2026 itself? Aman, okay. Individual segment-wise growth, we would not want to talk about it. Yeah, we will see a better growth as compared to FY 2026. In FY 2026 as compared to FY 2025. FY 2025 is when we commercialize two large projects for up north, and you will see growth happening from those projects in the current year. Sure, sir. Finally, on working capital side. Sorry to interrupt, sir, but I may request you. I'll get back. To rejoin the question queue. Okay, sure. Thank you. Thank you. Before we take the next question, we would like to remind participants to press star and one to ask a question. The next question is from the line of Harsh Shah from Dalal & Broacha. Please go ahead. Yeah, thanks for the opportunity. Firstly, congratulations on a very strong set of numbers. I have a couple of questions. Firstly, as you mentioned that, say, in FY 2026, we would kind of selling around 30-35 million pens. I'm assuming that this would also include insulin. If you could give a broad split between insulin and non-insulin, if that's possible. Harsh, what we have said is a large part of the growth in the current year is going to come from our NIO platform, which has a much higher, above 60% growth from non-insulin. Okay. Got it. If I, say, suppose, have to dissect the non-insulin part. Basically, that would be DRP. Is there any kind of a broad sense in terms of what would be the ratio broad between, say, the exhibit batches versus the commercial batches? You want to dissect exhibit versus commercial? Yes. You will see upwards of 70% being commercial. 70% commercial. Harsh, you see also, we mentioned in the presentation, which we put out also, we're looking at making commercial supplies of semi in the current year. Correct. That will be what will contribute to the growth in the current year. Got it. If you look at our commercial. Got it. On the CapEx part that you mentioned. Say, around INR 150 odd crores. The capacity increase that you mentioned, correct me if I'm wrong, is it 40 to 50 million pens? The entire capacity will come on stream by end of FY 2026. Is this correct? Not FY, calendar 2026. Calendar 2026. Currently we are adding 40 to 50 million pens over the next- 18 to 24 18-20 months. Got it. Also one thing on the consumer segment. Is there a case wherein, say, because of all the tariff issues that are going on, has there been any sort of inventory stocking or front-loading from your clients in the consumer vertical for Q4? Because the growth that we are seeing of 27% on a year-over-year is significantly higher. Some color on it, if you can give. Harsh, we have not been seeing inventory stocking or anything. What we have been seeing, the growth is basically we have made revenue or sales to two customers, where we had back orders in Q3. We have started shipping to those customers. On the home furnishing customer, we have executed some projects which were under execution or development, where we have started shipping. We are seeing growth happening from that. On the tariff situation, I honestly feel it's still an evolving situation where even buyers are not clear in terms of how things will pan out. You see tariffs being changed every day, and negotiations happening every day. Probably you guys might have a better idea about it and you can tell us what do you expect. Correct. Have you faced any sort of disruption yet in Q1? No, we have not seen any disruptions. Orders have been going on at the same pace. There have not been any changes on anything. Got it. On the consumer electronics part, say, have we started any sort of, say, sample shipments or maybe some sort of shipments have been done? If possible, could you highlight how big can this segment for us become in, let's say, in the next two to three years? If broad sense you could give on this. Harsh, on the consumer electronics, we have not made shipments. We have said as and when we do something, we will talk about it. I'll let Amit expand upon that. We are engaged with a couple of customers. Beyond that, there's actually nothing to report. Got it. One last question. Yeah, sorry. Harsh, I think Yeah. Go ahead. Yeah. One last question before I get into the queue. The gross margin improvement that we have seen in this quarter, is it a function of purely the product mix wherein, the healthcare has kind of scaled up? Or has there been some element of crude benefit that we have gotten? Crude, no, I don't think so. There's no crude benefit. No crude benefit. Yeah. Sorry. Mostly on account of scale of healthcare and higher revenue. Better realization. Better realization. Better realization. Does this mean, the EBITDA margins that we have posted for Q4 on a consolidated basis is around 25%, should we consider this as the baseline margin in FY 2022 at least 25% for the full year? Harsh, don't look at it from a quarter-on-quarter perspective. Do we feel that if we execute the plan then we will have better margins? I mean, the short answer is yes. That's the ambition, and that's also what we think should happen. Don't consider as a baseline and look at it from a quarter-on-quarter perspective. You'll see significant changes in this year when we report our numbers quarter-on-quarter. The way to look at Shaily would basically be you need to look at more in terms of a year-to-year. Yeah, year-to-year, you would see improvement in margins is the way we would put it out. Yeah. Got it. I'll get back in the queue. Thank you. Yeah. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Anant Jain, HNI. Please go ahead. Thanks for the opportunity and congratulations on the great set of numbers this year. A few questions here. I think you have clarified on the consumer side, but I personally feel that the kind of opportunity that we are seeing with iPhones. Anant, we cannot hear you. Please speak up. Can you hear me? Can you hear me now? Yes. Am I audible? Okay, great. My first question is on the consumer electronics, although you said that you'll report it when you have something to say, what I personally feel is that there's a massive opportunity that is coming up because of these large international brands moving into India. Apple giving a very high guidance and also, in the process, looking to localize a lot of components. I know you can't speak on a customer-to-customer basis, can we think of a very large CapEx from our side in next one or two years? Short answer is yes. If we can come to some sort of a conclusion on a business plan with the customers that we are speaking with, we will be looking at the CapEx, we will be looking at potentially at least medium to large CapEx in the next two years. Thanks for that. Okay. I was looking for that. Thank you. The second question is more of an accounting question. We have seen significant working capital increase. Our inventory days have gone up from one month to four months. Can you just give some understanding there? That's the first question. Second question, if I see, is like the other current liabilities have gone up significantly from, let's say, INR 8 crore, INR 9 crore to INR 36 crore, I would guess. Is there an explanation for that as well? Anant, on inventory, what we have done is, there was a planned maintenance shutdown by one of our principal suppliers, that's a large quantity of material which we use. He basically requested that if we can take on the next 3 months' requirement. That's something which we have done because we did not want to run out of materials for the specific grade which was approved by the customer on the consumer business. That's something where we have taken on inventory. The second part of the inventory is we've built up some inventory on the pharma part of the business expecting scale-up and everything, whether it's raw materials or bought out. We have basically built that up. That's the second part due to which we have seen inventory build-up. Increase in current liability would basically be in the normal course of business, there could be some customer advances which would have come in or something. Okay, we have had higher advances from customers, that's being shown as other current liabilities. It's not like customers paid up for CapEx. Sorry to interrupt, sir, may I request you to rejoin the question queue? Last question because- Let Amit answer the related question. The question is a related one, let's complete the question, please. Yeah. Thanks, Rajesh. My question here is that, we would have also received advances from customers. Where does that show up in the accounting part, in terms of setting CapEx? Not- That's essentially what I'm saying. Anant, if there are advances from customers, it will show in other current liabilities. No. CapEx advances from customers, like setting up lines, dedicated lines for customers, even that shows up in other current liabilities? Either way it has to be a customer advance. We don't make any CapEx advances. If there would be, basically contractually speaking, the advance should be taken on a certain committed volume. That's essentially it. Okay, great. I have more questions, due to paucity of time, I'll join the queue. Thank you. Thank you. The next question is from the line of Nirali Gopani from Unique PMS. Please go ahead. Yeah, hi. Thanks for the opportunity. Amit, in your opening comments- Nirali, could you speak a little louder, please? Yeah. Is this better now? Yes. Yeah. Amit, in your opening comments, you mentioned about the new generation pens that you are working on. If you can talk a bit more on that side. Is this largely to cater a new set of customers on the pharma company side or better realization? How do you look at it? We've been working on a strategy, essentially for the last maybe 18, 20 months, on how to look at attracting innovator pharma, the originators. When it comes to the originators, we looked at how do we engage with them, what would be the right approach. Of course, being present in the GLP-1 space, it's natural that we try to attack that space first. Having looked at a lot of data, research data, issues with existing devices, patient behavior, what we realized is that, almost no one follows the IFU, which means that people aren't priming. Second is dialing a dose is always on screen-driven pens, it's a little bit maybe easier. If you look at just the obesity market and not the diabetes market, basically eliminating the folks that are used to using a pen injector, you find lots of errors when it comes to setting the right dose, delivering. The overall efficacy of the therapy may not be as high as intended. The third thing we also found is that most people eyeball the cartridge and the plunger position in the cartridge to determine when they should reorder or put in a request for reorder. These are fairly simple things. We thought we can make the device intuitive, something which is sustainable. Auto-injectors are obviously very easy to use, but it's not sustainable given that you have to use a new one every week. You go through four auto-injectors, four primary containers every month. From that perspective, we decided that we should develop a fixed-dose device which is simple, accurate, intuitive. Essentially it came down to non-priming. We don't dial a dose. We just pull the button to activate and push the button to deliver. With every push, we have a dose counter which shows you how many doses are left in the system. We could customize this device to deliver anything between 0.1 ml to 0.8 ml. The intention is to target large pharma, which is why we've developed that device. Okay, perfect. On the CapEx on the healthcare side of INR 150 crores, does this number include the land part also? I guess we'll be needing new land also for this CapEx. Whether we need land or not, I don't think we'll acquire land. Okay. Will it be near our existing facility? Nirali, this is unknown at the moment, Nirali. The INR 150 crores which we are talking about, a large part of it is basically being put inside the current land. Okay. Perfect. Last question. Sorry to interrupt, ma'am, may I request you to rejoin the question queue? Yeah, sure. Thank you. Thank you. The next question is from the line of Ritesh Shah from Investec. Please go ahead. Hi. Thanks for the opportunity. A couple of questions. I just want to go back to the base. Basically, what is our current pen capacity right now? Is it 40 million pens? We had indicated 100 million pens. What is the timeline that we are looking at? Just for clarification, when we say incremental INR 150 crores, this is by when? What would be the eventual pen capacity that we are looking at? Is it like 100-200, or is it 100-150? If you could just give some bridge over that would be quite useful. Thanks. Look, we are adding 40-50 million over the next 18 months. The INR 150 crore CapEx is for the current year. Right. After we add another 40-50 million, our total capacity would likely be in the range of 80-90 million. Beyond that, we would look at basically firm commitment or purchase orders to increase it further. Okay. This is something what we had indicated earlier as well, right? Going from 40-100 and 18-24 months. There's nothing new over here, right? I think the earlier CapEx indicated was INR 130 crores. Is it something that has moved up to 150? Is it the same number which has moved up? Marginally, yes. I think when you say nothing new, maybe there is a little bit, maybe 5% capacity added since our last call. Otherwise, no, nothing significantly new. It was always planned. The plan is just solidified a little bit more. Perfect. Out of this INR 150 crore, what part of advances have we already received, or what part of CapEx has already been incurred? Like I said, we're doing capacity investment based on firm commitments from customers. It will always be kind of maybe a 25%-30% buffer, but otherwise, whatever we're doing in terms of CapEx would be committed. Ritesh, this will happen gradually over the next 18-24 months, so it'll be happening over that period. Sure. Second question would be, if we had to go from, say, INR 100 crore-INR 150 crore or, say, INR 200 crore, what is the sort of comfort on orders that we are looking for? Because the outlook seems pretty good. Is there any specific milestone that we are waiting for, given we understand the lead time for all this machinery platforms is actually pretty huge. Won't we be missing out on the opportunity if we don't go ahead with the CapEx right away, given the lead times which are there in place? I don't think so. You have to understand, Ritesh, the product hasn't been launched yet by anyone. Everybody that's putting in capacities, talking about I've heard everything from INR 100 million to INR 200 million to INR 500 million. There's obviously an opportunity. I'm not saying that there isn't. At some point, when you get into such large volumes of product, we have to be careful of how much capacity you set up. We will set up capacity, and we've said this on calls as well as to customers, is that there is a baseline capacity that we offer when we do a program. Beyond that, we need firm commitments from customers to set up capacity. The advantage with Shaily is that we are able to set up capacities in a much lower period of time versus our competitors. What gives us confidence is two things. Almost all of our customers have made fairly significant investments in setting up their own capacity. Customers setting up, right from someone setting up a 20 million cartridge and assembly line to someone setting up 150 million cartridge and assembly line. We see across our customers setting up their own capacities in-house, which is what gives us confidence that we will be participating in that capacity as well. Sure. If I may, just for clarification, when we say 40 to 90 million pens, what is the number of cavity molds that we are assuming over here? Because to my limited understanding, I think we had spoken about four to eight to 16 cavity, and as it happens, basically on the same line, the production throughput can increase significantly. How should we just connect both the dots? I think from our perspective, again, product to product, it would differ. The most economical we find is somewhere when you create a capacity of 25 million on a particular product. Which is 16 cavity molds and an 80 parts per minute assembly line. Sure. I'll join back with you. Thank you so much. All the very best. Thanks. Thank you. The next question is from the line of Rupesh from Intelsense Capital. Please go ahead. Hello, sir. Am I audible? Hi. My first question is, you said you expect 70% growth in the pens, and our own IP-led pens have higher realization. Is it fair to say that this INR 165 crore revenue we have done in pharma, there will be 100% kind of growth on the revenue side? Is anything wrong in this thinking? Rupesh, we wouldn't want to put in a number there. Commercial pricing is also different than clinical pricing. What we're saying is we anticipate 77% growth, and that's what we're sticking to. Okay. Any guidance on the broader company level, sir? You are saying you don't want to talk segment-wise, but maybe broader company, can we reach, let's say, INR 1,100 crore, INR 1,200 crore revenue on the top line? Is that a fair assumption? Look, no guidance on the company-wide. We have growth. We have good growth, I think, and it will be backed by a stronger profitability. That's where we'd like to keep our guidance. Just to add to what Amit said. We expect growth across all the three segments. All segments. Yeah. There will be differences, but we expect growth across all the segments. Okay. Then my second question, sir, is can you give some color on our presence at market formation in Canada and Brazil? Are we present with, let's say, more than one customer in both of these markets? Any regulatory approval which is pending on us on the device manufacturer? We don't have any outstanding queries that we have to address, and we are present in both markets with at least two players. Okay. Just last one clarification. Applicator project, I think we had announced in one of the Q2 calls, maybe INR 35 applicator project. If you can give some color on then how did that contribute in 2025, and then what will happen to that project in FY 2026. The applicator is going to probably get validated, I'd say, in the first half of Q2, potentially end of Q2. We should see at least somewhere around four to six months of sales for the applicator in the current year. Okay. Thank you. Thank you for answering my questions, sir. Yeah. Thank you. The next question is from the line of Pritesh Chheda from Lucky Investments. Please go ahead. Yeah. Hello, sir. Just a clarification. Your gross block in pharma, after the current capacity expansion that you called out of about INR 150 crores will be INR 375 crores, right? That's the number you mentioned? Somewhere between INR 360 crores and INR 375 crores. Current. I mean, after the investment. After. Yeah. No, sir, you're not clear, your number, what you said. I said it will be somewhere between INR 360 crores and INR 375 crores. Okay. After the investment that we made. After the investment, which is basically 80 million pens-90 million pens. No. The investment is in the current year. We're looking at adding 40 to 50 million capacity over the next two years. There will be some additional investment needed for the rest of the capacity. I am asking about the eventual number. Post this expansion, you will have a gross block of INR 375 crores, which means about 90 million pen capacity. Is these two numbers correct, or there is any change here? There are some small things. We're still looking at our entire lab and other supporting services set up, for which we don't know what the investment number is going to be today. Essentially, like I said, consider a 15%-20% margin. Okay. No problem. Yeah. No problem. Nothing. What should be the? I don't think there'll be anything significant. Okay. What should be the asset turn of this INR 375 crore block? Anywhere between one and a half to two. The other question is if you could tell us in the healthcare INR 165 crore, what is the corresponding approximate pen volume? I think somewhere around 17. Okay. 17, 16, 17 million pens. My last question is on the non-healthcare side, so basically consumer and industrial, over the next two years, based on the contracts that we have in hand, newer businesses that we have in hand, what should be the growth in combining these two businesses over next couple of years? Should we continue to grow at the CAGR we have, or there will be some acceleration? Pritesh, again, difficult to put in a number. As we mentioned to a query raised by the other participant also, we expect growth across all the 3 segments. Okay. Just INR 375 crores. Sorry. -gross is what you said? Just a minute, sir. You said 2.5x asset turn, right? Or no, 1.5x, you said. Somewhere between 1.5 to 2, Pritesh. Okay. Done. Thank you very much. All the best. Thank you. Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. Yeah. Thanks for the opportunity and congratulations for a good set of numbers. Sir, in this, the target for 30-35 million pens for FY 2026, can you give a broad breakup of how much will be our own IP-led GLP pens, our own IP-led insulin and customer-led IP? Any broad breakup if you can give for these three segments. Ankit, we already gave this on a previous question on this call. We think about 70% is going to be IP-led. That will be largely on the GLP side. A combination of GLP and insulin. Yes. Okay. Sir, on our own IP-led GLP pens, can we assume that majority of the launches which will happen in the markets like Canada and Mexico will be pen injectors and not the auto-injectors? Sorry. Canada and Brazil will basically be pen injectors and not auto-injectors. Yeah. That's true. That's right. Okay. Across our various platforms in our own IP, will it be possible for you to share the average realizations, even if you can give a broad range? No. It's that difficult. It is important. We'll not be able to share that. Sure. Sorry to interrupt, sir, I may request you to rejoin the question queue. Right for your follow-up question. Thank you. The next question is from the line of Dhwani Desai from Turtle Capital. Please go ahead. Hi. Good morning, everyone. My first question is, the new product development side, we mentioned two products. The question here is that do we develop these products suo moto from our side based on our understanding, or is it based on some feedback from the customer innovators? How does this work? If you're developing on your own, what is the process to commercialization of such products? Doesn't it get longer in terms of approval, validation? If you can talk more on that. Well, that's a fairly long topic. We do two things. I'll keep the answer short. When we develop devices for the generic market, we already know what we need to develop based on what is available from innovators in terms of feature functionality, user stats, et cetera. When we develop something novel, truly novel, that we intend to target the originators, then we develop it based on what is the user feedback, what are the clinical or human studies look like. We look at usability, and we look at the complaints on the market regarding those products. We combine a few of these, three, four of these things, and then come up with our own set of design inputs to develop a product. When you do something for an originator, we'll develop it fully, and then based on whoever jumps on that platform, there'll be another set of customization required. It is a semi-platform strategy, but doesn't work the same way as the generic business does. It works quite differently. Sure. Second question is, this incremental 12 million pens/auto-injectors-15 million pens/auto-injectors that we are targeting to sell in FY 2026. Is there any single customer concentration there where their success or failure, we are dependent on that? Anything like that? Is that a risk that exists? I think customer concentration, that entire volume would be probably divided by three-four customers. I'd say equal risk. None of the three-four have approval right now, so I also don't know. We will answer this question, let's say, in 2026. Got it. Understood. Thank you, all the best. Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. If you can throw some light on how are we seeing the opportunity in the Indian market as well. Canada and Brazil, we do understand there's Can you repeat? Your voice is very faint. Yeah. I was asking, if you can talk about how are you seeing the opportunity in the Indian market, for the semaglutide. They're all hard to tell. See, product is not sold in India. It's anybody's guess. It could be maybe as low as INR couple of million to who knows? Who knows what the market actually becomes, both in terms of size. Given the product is not sold in India, we only anticipate from what we hear from our customers. Okay. Can you hear me? Sure. Yeah. On the Canada side, some of the generic players who are in play for the market have indicated that the market opportunity itself will expand by four or five times post genericization of semaglutide. Right. Can we expect the same kind of trend to follow in Indian market, or it is too early to say? Any views that you would like to share? Even the RLD doesn't sell the product in India. We don't know what the baseline market is. Yeah. Sure. Sir, on our own IP-led, the insulin pens, can you talk about, we had got a contract last year, and a lot of other competitors had vacated the market or were vacating the market. How are we seeing the market for us on that side, and how do you see the scale-up happening there? I would probably say that pricing pressure on insulin type pen is very high. We ourselves are looking at, I wouldn't say getting out of insulin. We want to focus on insulin, but we want to keep that focus limited to maybe your large players in each of those markets. We don't want to do insulin for Everybody. We are focused on the large insulin players in India. We remain focused in other regions of the world. We are still trying to grow the business. We do not want to grow the business, especially in regions where there is no regulation when it comes to devices. The reason is because the Chinese can undercut you by a very significant number. We are looking at other therapies, maybe not as price sensitive as insulin, not as large in volume as semaglutide, but somewhere in between where we can utilize our capacities for PM. There are many we are actively supplying into as well. How do you see the growth on our own IP-led insulin pens over the next two years? We only have insulin pen. One of our platforms is for insulin. Nothing else we supply goes into insulin. We think our insulin growth over the next two years will. I wouldn't say that it will be 70%, 80%, but I think consider an average of maybe 20%, 25%, 30% growth on the insulin side. Sure. Okay. Thank you, Amit. Thank you. The next question is from the line of Anant Jain and HNI. Please go ahead. Thanks for the opportunity. One question here, Amit, is when you think of pens, auto-injectors, there are multiple processes in terms of fill finish, the device itself, the API, packaging, all of these things. Do you think that we would be willing to, or we are looking to expand in any adjacency areas to give a one-stop, one solution to our customers? Do you think that would be a possibility, not in the next six months or a year, but going down the line? I'm glad someone asked this question. I've spent the better part of last 12-18 months coming up with a strategy on how to vertically integrate. What are the other areas we can go after? Again, this is one of those questions we could have a very long conversation on. To keep it short, just in 2 years, you've seen potentially somewhere close to a INR 200 million capacity created in India in the CDMO space. Right. There's probably another INR 2 million-INR 300 million capacity created outside. Frankly, if you ask me, plus all the large pharma players, the generics and non-generics, are creating their own capacity. I put all of my customers together, we would see another INR 2 million, INR 300 million capacity being created over a period of time. I'm not sure how lucrative getting into the other domains is. At the end of the day, with devices, we lead this because of IP. Because of intellectual property. With the other services, it would be merely an asset investment. There's no real technological know-how behind it. I don't have a straight answer for you, but I think my instincts are that I don't think we should. Short-term, there is benefit. I don't deny that. There is certainly short-term benefit. You could make a limited business case out of it saying that, okay, we'll support clinical development. We might actually do that. To support customers with clinical stages of development. We might put in final assembly capabilities at some point. Long-term, large capacities, I think anyone who sells more is going to bring this production process in-house. If you look at the value chain. Generics, typically, most generics don't have control over almost any part of their value chain, so they're very limited, and the only way you can make money is by controlling as many aspects of the value chain as possible. Fantastic answer. Thank you, Amit. One question here. When we look at Shaily, maybe five years back, we were limited in terms of our capabilities. But now if you look at Shaily, in your opinion, where do we stand with the global market leaders, Ypsomed, BD, et cetera? Do you think that the new opportunities in pens or auto-injectors for innovators, we are pretty much at par with these players? That's the first question. Again, it could be a very long answer, but still, if you could summarize it in some way. Second, a very pointed question. On tirzepatide exhibit supplies, how many customers do we expect next year, next Q1 through full year? Whatever, if you have any idea there. We've always said Sorry. I think for any NCE-1, actually this goes back to semaglutide time as well. We limit NCE-1 because you have to end the supply by a certain deadline. Let's say, for example, we're in May right now. We need to make sure that we supply to any customer, the last supply can potentially be made in September, October of this year. October is also pushing it. You have a May 26th deadline, and you need six months of data and time to put your dossier together, et cetera. I think we're going to end up with about three that we will be able to supply to. Three We're debating whether to take a fourth on, but three is the number that we have right now. As far as What's your first question, Anan? I was trying to understand how do we stack up? Yeah. Visibly Ypsomed, yeah. Look, I'll be the first one to say, Ypsomed already manufactures maybe 100, 150 million devices a year. It would be wise for me to say that I can say we're as good as them, but we've yet to prove it, right? On the scale-up side, we have yet to prove it. We hope that with the expanse we're doing with the semaglutide launch, we will be able to prove that we are as good. I think on the development side, I would say that we have a slightly different approach than the competitors. We're more agile, but we feel that our product pipeline, even today, represents a significant benefit over most of our competitors, especially for pen injectors. As far as pen injectors are concerned, I think we certainly have a very significant advantage. We've been able to do that, our development teams are very strong. Super. Thanks. One different. We don't have a product in the U.S. That's correct. All of this at this point is just hearsay. Yeah. Yeah. I totally understand that we don't have a product for you. One last question, one just additional. In case of Fusa, if you can specify the platforms. Tristan, our platform is called Tristan. Tristan. Okay. That's it. Thank you. Thanks. Thank you. The next question is from the line of Dirish Pathak from Y2 Capital. Please go ahead. Yeah. Thank you for the opportunity. On the DMF filings, I see a lot of type 3 DMF filings for Shaily. I don't see them for, let's say, Ypsomed, SHL or BD. Is there a particular reason I'm seeing Shaily in a lot of type 3 DMF filings, whereas I don't see that for the competitors. Is there a particular reason around this? I would assume that we are a little bit more flexible with our customers, which means that we do the dossier, and we do a different dossier for each of our customers, right? We don't have the same product. Even though it's the same product, we do a different documentation package for each of our customers. I don't know what the pros and cons are, to be honest. I let my team decide that. I would assume that some of our competitors might be providing the technical dossier filed as a final package from the pharmaceutical company. Maybe some are providing the CDRA route, maybe some are doing there are multiple ways of filing. I'm not quite sure why someone does it differently than the other. There is one type 2 filing that I'm seeing in January 2025 for NeoPen for semaglutide, whereas all other filings are type 3s. If you can just help me understand why there's one filing which is mentioned as type 2 and others are type 3. Is there a nuance to that as well? I'll be honest with you, I have no clue. I will need to check internally. Okay. Of the capacities that you mentioned, 80 million-90 million pens, how much is auto-injector and how much is pens? It's all pens? I would say, consider that pens will be probably a 70/30 split on the full capacity of pens versus auto-injectors. Understood. 65, 35. Who knows? Somewhere around that, just keep a range in mind. Understood. Okay. Thank you. Thank you. Ladies and gentlemen, we take that as the last question for today. I would now like to hand the conference over to the management for the closing comments. Thank you everyone for joining the call. We 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 advisors. Thank you, and have a great day. Thank you. On behalf of Shaily Engineering Plastics Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line.