Ladies and gentlemen, good day and welcome to Q3 FY 2026 Viyash Scientific Limited earnings conference call. As a reminder, all participant lines will be in a 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 a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Zarna. Thank you, and over to you, ma'am. Thank you, moderator. A very good evening to all of you, and thank you for joining us today for Viyash Scientific Limited earnings conference call for the third quarter and nine months ended financial year 2026. Today we have with us Dr. Harib abu, Managing Director and Group CEO, Mr. Rajaram, Executive Director and CEO, Animal Health, and Mr. Ramakant, CFO of the company to share the highlights of the business and financials of the quarter. I hope you have gone through our results release and the quarterly investor presentation, which have been uploaded on our website as well as the stock exchange website. The transcript of this call will be available in a week's time on the company's website. Please note that today's discussion may be forward-looking in nature and must be viewed in relation to risks pertaining to our business. After the end of this call, in case you have any further questions, please feel free to reach out to the investor relations team. I now hand over the call to Dr. Haribabu to make his opening remarks. Thank you so much. Good morning and good afternoon, everyone. Welcome to Viyash Scientific investor call. Thank you for taking the time to join us today. Today is an important milestone for all of us. This is the first time we are discussing quarterly results of the merged entity, Sequent and Viyash together as one company. More than the numbers, it's a reflection of what we have built over the last few quarters, one integrated platform, one operating cadence, and one team working towards the same outcomes. Let me structure my opening remarks around three broad themes, which I believe capture both what we have delivered and how we are thinking about the future. The number one, combined growth, balance sheet, and this is now a well-scaled company with all the right ingredients. Starting with the quarter's performance, Q3 FY 2026 reflects steady progress on growth and a step change in profitability and balance sheet strength. Revenue from operations for Q3 FY 2026 was INR 858 crores, grown up by 11% year-on-year. Adjusted EBITDA was INR 185 crores, grown by 64% year-over-year, with an EBITDA margin of 21%, an expansion of 390 basis points. Net debt to EBITDA is reduced to less than 0.4x, a significant strengthening versus the previous year. On a nine-month basis, the momentum is consistent. Nine months FY 2026 revenue was INR 2,500 crores with 12% growth year-on-year. Adjusted EBITDA was INR 500+ crores with 58% growth year-on-year. Most important, our margins for nine months maintained at 40%+. Of course, we incurred one-time exceptional items largely related to merger execution this quarter, around INR 41 crores, which includes stamp duty as well as payment for advisors and consultants. In addition to INR 41 crores and recently government announced a tax regime change, we are trying to convert our old tax regime to new tax regime, which impacted around INR 7.7 crores. All together at one time, it's gone up to INR 48-49 crores. If we combine this one time with the PAT, what we have shown it's a big growth quarter-on-quarter this quarter. What gives me confidence is that this performance is not narrow-based. We are seeing broad participation across segments and geographies. We are truly working as a one team. That's most important for the group. Equally important, the balance sheet is now a strategic asset. Over the past few quarters, we have consistently spoken about strengthening of financial base to create a headroom for sustained investments. The business has moved beyond consolidation and course correction into a phase of accelerated growth. As we look at the merger platform today, the transformation is visible in the combined numbers and in the optionality the balance sheet gives us. We will use a stronger balance sheet to unlock both organic investment as well as selective mergers and acquisitions. Coming to the number 2.2, now I'd like to take you through how we have improved our margins. You can see quarter-on-quarter improvement margins last eight, nine quarters. How we have improved with key actions in last 12-18 months. The formulation Animal Health Europe, as you know, we have a strong foundation in Spain, manufacturing as well as front end. Last 12, 18 months, we have taken many steps to improve business in Europe. Few of those are expansion of markets with direct field force in Spain and few countries like Benelux, Sweden, and also we add a few distribution agreements for other countries. Other few areas like we initiated development and promoting companion animal business, which is growing fast in Europe. Geo expansion for all our products since our site is approved by Europe, located in Spain. Also the site located in Turkey is approved by Europe. We are able to extend the products to Europe. We started commercializing, it's reflecting the numbers. Most important, established few more partnership with other companies to distribute their products. As you know, we distribute few products even for innovators. We distribute few products, Axens, for specialty companies. Coming to emerging markets. You know, Turkey and Brazil are the key market for us. Turkey turn around last couple of years, and you can see the large volume growth there this year. That shows our capability of expansion of Turkey. Turkey also, as you know, it's a GMP approved by Europe, we started filing and started shipping to Europe. Brazil shown strong performance this quarter. It's continuously showing strong performance. We are trying to expand from Brazil to Mexico and other related countries where we can do. With the Turkey and Brazil GMP facilities, now we are able to focus to expand markets like Mexico, Southeast Asia, and a few other focus markets where we can do business from there. Coming to India. India, you know, animal health formulation, we expanded full force last year up to 200, and we started presenting the numbers. We started growing, and this is one of the key segment to grow further for animal health in India, especially farm animals. Coming to the U.S. U.S. formulation, basically human health. Last two, three years post-COVID, as I explained earlier also, initially post-COVID, there's a lot of stock build-up, there's a lot of competition coming from India. Initially we struggled little bit on competing the cost from U.S. sites. The last two years, we tried to change our strategy, moving all mature products to India, and also started developing new products with little more complex where we can differentiate. Also most important factor to sustain U.S. business today is a fully vertical or backward integrated for all our key products. We are done for almost all our key products. 45% of our volume products we are done. Commercialization is just started. These are few things to show the sustainable growth on U.S. business. Coming to API. As you know, API is our strongest core area for us, we do continuous new products, I think we are the one of the fastest company to do product development as well as launch. Most important, our efficiency levels in operations are very good compared to market. Few things like network optimization, when we acquired few companies, where there is a strategic direction, we try to shut down few companies. The continuous focus on the cost improvements with the focus team on the process as well as optimization at plant level. Since we have fully backward intermediate sites, which are approved by FDA, we're able to integrate most of the products with backward integration. That's where it can show substantial improvement on the margins. Markets also, we try to move from low-end markets like India, Bangladesh, Pakistan. We started focusing more on expanding developed markets. Other new area last year, we initiated CDMO, it started working well. That's continuously to grow on that. Because all our assets, infrastructure, and resources are pretty well suitable for CDMO business, which can do with innovators. We have a great experience built now, and that momentum is growing up now. These initiatives worked out very well for us and contributed both improvement on the gross margins and EBITDA margins. These are the continuous activities to sustain the margins, both the gross margin as well as EBITDA. Third most important after reaching reasonable base with sustainable growth. Where do you want to grow? How do you want to grow? I want to touch upon what we are doing next and how we intend to compound this momentum. Our strategy is focused on two clear growth sectors. One of the sector, as I explained last call also, companion animals. This is one of the most attractive long-term opportunity for us, supported by increasing pet ownership and also the genericization level in animal health. If you can read our presentation, the few slides on companion animals, it clearly shows this is the fastest growing area, both in developed markets as well as developing markets. Most important today, if you see genericization happened only 15%, whereas comparatively little more on farm animals and big on human health, 85%, 90%. That's where we see the opportunity next couple of years. Since the volume and markets are growing, we are pretty confident that genericization will improve. That's where it can bring opportunity for us. As you know, we have already signed an exclusive distribution agreement with the Boehringer Ingelheim, which is one of the innovator company. I think it's the number three top company in the animal health. We signed the exclusive agreement with them to distribute products in India. We are going to start distribute sometime in February. This is one opportunity for expand to enter companion animal business in India. That's one of the key focus area for us to expand companion animal business in India. Of course, we are focusing other countries, but India is going to be one of the key markets for us. Other markets, opening markets, and we are evaluating partnerships, which includes, of course, selective mergers and acquisitions, companion animals. We are exploring few things, while also building infrastructure in India over time. This is most important and critical part for the companion animals. We see there's a large opportunity to grow if you have capability to India, both R&D and manufacturing. That's where we see the differentiating factor for us. Farm animals, we have very strong position in few countries. Like as I said, Spain and Turkey, we want to expand as much as possible from these countries to Europe. We have clear plan. We started filing last two years. We started commercializing. That's a continuous focus. We have large portfolio in farm animal business today, and we are also looking at whatever are the gaps to fill the pipeline to compete more and grow that. In the third area, farm animals, there are few markets, important markets like Southeast Asia, Africa, to expand, as there's a large opportunities. We're exploring those things. This is the future next five years target for that. Human health formulation, as I explained, we already started leveraging India manufacturing for mature products. Our strategy is to maintain leverage India low cost manufacturing for large volume of mature products, while keeping India sites to launch new products, since we are going little more complex products and new small high-value products, and also keep open to generate government business as much as possible. Coming to the last one, API and CDMO. It is a continuous focus. There is a meaningful opportunity set, both API patent cliff and a growing CDMO market. You can go through our investor deck, how the CDMO business is going. Of course, as the competition also is growing, how we are going to differentiate based on our quality of the assets, quality of the resources. Our focus is to pursue CDMO opportunities. We are exploring both while expanding internally. We are also looking at some M&A opportunities if we get. At the core of all of these actions is our One R&D platform and a scale innovation engine. We are a R&D first organization to launch new products that is genuinely scaled and capable. Roughly we have 200-plus scientists, including 20-plus doctorates, and we have dedicated support team for CDMO and also CMO partners. Having specialized capabilities such as cytotoxic handling and process safety infrastructure. This is consistent with what we have emphasized earlier as well, that our core strengths are anchored in R&D, manufacture, and intellectual property. That this is what allows us to move the portfolio to the value curve. Across all of this, our actions and capital allocation approach remains clear. Prioritize synergy capture and integration discipline over the next 12 months. Maintain balance sheet strength, which is very important, of course. Invest in growth opportunities that fit into our strategic direction and return thresholds. This is consistent with what we have said previously. A stronger balance sheet provides the headroom to invest in portfolio expansion, especially companion animals, while continuing improving the returns. I'll take you through the integration status, where we are. As you know, all legal procedural things we completed now, except working with the clients to work with the external regulatory bodies. That may take couple of months, other than that, all India legal statutory actions completed. We are able to integrate fully now. Even though we have not done official, as I explained last call also, last 12 months when we announced, we started working as one team. Like few things, R&D already fully integrated as one R&D, both animal health and human health, of course. A couple of new products already developed in animal health. We validated last 12 months, four new products for animal health and validated. Couple of projects, cost improvements have taken, and it's working well. It's pre-filed regulatory. Some of those things started getting approval next few months, but as I explained last call also, it takes 4- 18 months. We are fully on track on that. Manufacturing, again, we relooked at network optimization. How can we utilize efficiently complete infrastructure? Whatever products we are getting from outside companies, we move to internal. That's basically to improve the capacity utilization. That's also to provide more comfort to the clients, actually for the supply reliability. Six of the interface already we completed. One of the most important area, we completed one of the new production line to accommodate. This is basically albendazole product. You know albendazole goes for human health as well as animal health. Everything till today we were manufacturing at one site, we are trying to segregate into two sites. We segregated the human health and build a new site at Viyash. It's validated and we filed the regulatory. Fortunately, one of the approval Europe, which is very important for the product, we received approval in 30 days. That shows our strength of regulatory. Other approvals, we are waiting, most of the market goes from Europe. We are working with the customers. How can we commercialize quickly on that? Of course, few markets where we are able to do, immediately we started doing. Incidentally, we are seeing the huge volume growth for the albendazole. We can see the good growth this year. One of the things I would like to highlight, guys, you must have seen Sequent API business last maybe five, six years. I think this is the first year after 2022, we are crossing INR 400 crores. Okay, it's a great teamwork. Both Viyash and Sequent contributed. I think it's so quick doing this INR 100 crores per quarter. We were struggling last two, three years now. It streamlined, established at INR 100 crores minimum base, and you can see FY 2027, first three year after long time, it's going to grow double-digit. With a good profitability with all our actions. Sales, as I said, it's a cross-selling both. We started interacting last 12 months. A few things are getting materialized. The products, you know the regulatory scenario takes its own time, 18 months, 24 months, but we see the positive momentum on that. Coming to the corporate functions, all shared service, whatever. We fully integrated. We have a clear plan. Who is going to do what, which function is going to move here or there. All are established. It's working as one team, we see that. Also one of the things, we mentioned one of the site we are going to divest, that's at Mangalore. We completed the transaction. That's a basically testing site for internal as well as external clients. We are able to close on December 31st, moved all activities internal. That's where we are going to save at least INR 1 million in next year. That's one of the strategic initiatives. With this, to close Q3 FY 2026 is a milestone quarter, not only because it's the first reported quarter of the merged entity, but because it demonstrates that the last several quarters of execution are translating into sustained performance, steady growth, structurally higher margins, and much stronger balance sheet. We have our strategy and actions well-defined, and with the strong foundation we have built, we have no doubts we'll achieve great outcomes for the stakeholders. With that, I will now hand over to Ramakant, our CFO, to take you through the detailed financials. After that, we'll be happy to open the floor for any questions and answers. Thank you. I'll hand it over to Ramakant. Thank you, Doctor. Good evening, everyone, and thanks for joining us. Pleasure to share insights on our strong Q3 and nine-month FY 2026 financial performance. Starting with Q3. I'm sorry to interrupt, sir. I just request you to speak little louder, please. Okay, I'm changing the mic. I guess it's better now. Yes, sir. Go ahead. Okay. I'll start from the beginning. Good evening, everyone, and thanks for joining us. Pleasure to share insights on our strong Q3 and nine-month FY 2026 financial performance. Starting with Q3 FY 2026 financial highlights. Total revenue reached INR 8.5 billion, up 10.9% year-on-year. Formulations revenue grew 20% to INR 4.8 billion, while API revenue rose 2.9% to INR 3.6 billion. Gross margins improved 316 basis points to 54.5% from 51.3%. Adjusted EBITDA surged 64.4% to INR 1.8 billion, and margins expanded 700 basis points to 21.6%. Profit before tax for the quarter is at INR 731 million. This is after accounting for one-time merger-related expenses of INR 413 million. This shows a multifold improvement compared to INR 245 million in Q3 FY 2025. Profit after tax for the quarter of INR 485 million. This is again after accounting for one-time merger expenses of INR 413 million and a one-time charge on account of MAT credit reversal of INR 77 million. Profit after tax in Q3 FY 2025 was INR 420 million, which actually included a tax benefit accounted for certain accumulated losses in Sequent's earlier subsidies. Consistent performance in the last few quarters demonstrates strength and stability of our revenues as well as earnings. I move on to the nine-month FY 2026 performance. Total revenue climbed 11.9% to INR 25 billion. Formulations revenue expanded 14.5% to INR 13.6 billion, and API revenue grew 9.6% to INR 11 billion. Gross margins rose 350 basis points to 54%, from 50.5% in the previous year. Adjusted EBITDA jumped 58% to INR 5 billion. Margins up 580 basis points to 20.1%. Profit before tax clocked 3.5x increase from INR 498 million to INR 2.2 billion on account of strong operational performance. Profit after tax more than tripled to INR 1.5 billion from INR 480 million in the previous year same period. Our focus on product and service mix, expanding geographically and enhancing operational efficiency has driven higher margins and a stronger financial performance. The merged entity financial position provides solid stability with low debt levels and improved efficiency in leveraging assets for stronger returns. Looking ahead, we continue to prioritize realizing merger synergies, maintaining steady profitability, further reducing debt, and maximizing cash flow generation. With this, I end my opening remarks. Thank you for your attention. I now request the moderator to open the forum for Q&A session. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask question may press star and one on the touch-tone telephone. If you wish to remove yourself from question queue, you may press star and two. Participants are requested to use handsets for asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. First question is from the line of Krisha, an individual investor. Please go ahead. Hi. Sir, congratulations for a good set of results. Now that this is a merged result, have the synergies been fully captured or is there much more to come? Is this EBITDA margin of 20% sustainable? Secondly, this quarter there seems to be some exceptional items. Are these one-time, or could you please explain a bit more on these? Thirdly, the ESOP costs, are these going to continue? How should we look at it for the future? Thanks for your questions, Krisha. First one is, this 20% margins are going to sustain. Yes, it is going to 100% sustain because now you see we have four segments. Even if there is small issue in one segment, other segment is able to absorb those things. We are very confident to sustain these things. Earlier we indicated, of course, FY 2027, we are going to achieve close to 20%. Because of our initiatives last three, four quarters, we are able to achieve now, and we are very confident to maintain that 20%. Also you mentioned that synergies. Synergies are not factored but set this level. Okay. As I said, synergies mostly takes 18, 24 months. There is operational synergies which requires regulatory approvals. There are few things like, when I say we shut down one analytical site, which is going to give synergies around INR 7 crores. That's going to reflect slightly this quarter, but mostly from next quarter onwards. Most of the synergies are not at all factored, but it's going to come in 2027. The one-time cost. There are three one-time costs. One is this merger related asset transfer, stamp duty. That's a purely one time. There's no change on that. That is INR 29 crores. The second one is advisors and success fee consultant for purely merger related, like INR 10-11 crores. That's a purely one time. The third thing is the tax returns are INR 7.7 crores, MAT credit, whatever we return. Recently, government has issued note. During the budget, they come up with something. That's also purely one time, but we may have positive next quarter if they change the government policy. Next quarter, it may end up positive on that. Purely all these are one time. There's no chance of coming to that. Coming to ESOP, there are two ESOPs thing. One existing ESOPs, you must have seen come down this quarter. It's going to continue next few quarters. Yesterday, board approved a new ESOP scheme for old VS scheme convert into new scheme. That we are working out the numbers, but that's going to continue next one, two years on that. Other than these things, we don't see any one-time expenses. Hope I clarified all those three questions what you asked. Yes, sir. Thanks a lot for your detailed answers. Thank you. Thank you. The next question is from the line of Ishika, an individual investor. Please go ahead. Yeah. Hi. Hope I'm audible. First of all, congratulations on the great set of numbers. I have a couple of questions. Going ahead, what are the shifts that the company will do to keep the growth going? Could you please share a bit on the future priorities? Okay. Thank you, Ishika. Thank you. Future, of course, I explained few segments where we are going to focus. Companion animal is the big segment to grow. Other thing, CDMO and also integrated play for merger entity. These are the things we are looking for both organic as well as inorganic growth. Since our balance sheet is very strong now, we can leverage the balance sheet. We are working on a few areas to grow on that. Oh, okay. Understood. That was really helpful. Also you had indicated CDMO opportunities. Is it for human or animal health as well? When will we see these materializing? It's the both. In fact, animal health, 80% we do business with innovators. It's a kind of CDMO, even though we didn't define that. We are accelerating that growth in animal health, based on last six, eight months, our performance with them. Now we are getting new inquiries, new RFQs for the new products. We see the momentum growing animal health future. That's where we see the good opportunity. That's one of the reason I also mentioned this year, after four, five years, animal health API is going to grow. CDMO focus is that. Second, human health, we focused last one year, and we've done reasonable well. Of course, it's a material, and it's going to continue. Both animal health as well as human API is going to continue the CDMO. We can see, it's a reasonable number even today also, if I put all together, but it's going to grow maybe after two, three years, big numbers. Okay. Understood. Just one last one. You had given a guidance of INR 4,000 crore and 20% EBITDA in 2028. Would you still be achieving these targets? If you see our current run rates, so you know the answer. When we say INR 185 crores this quarter, INR 187 crores last quarter, and also the top line is going to close to INR 900, INR 860 crores. Even if you take 15% growth, we are pretty comfortable to reach that level. In FY 2028. Okay. Not even 2028, 2027, that one, whatever. Of course, this speed ease up for all those things, but we are comfortable to achieve that. We are very confident to maintain the 20+ EBITDA levels now. Okay, understood. Thank you so much. I'll just rejoin the queue for the next questions. Thank you. The next question is from the line of Sahil Sanghvi from Monarch Networth Capital. Please go ahead. Yeah. Am I audible, sir? Yes, yes. Good evening, and congratulations for a good set of numbers, sir. First question is, first and foremost, sir, very good presentation. It was really quite in detail to understand what has been achieved and what is the focus going ahead. Second, sir, I would like to understand, this quarter, the growth on the API side has been low single digits. Is there anything to read over here, or is it just a one-off quarter kind of thing? No, thank you for your comments and question. API, one of the reason is a little bit timing issue. Last quarter, we had a few CDMO contracts. Okay, that's pushed to next quarter. This quarter it was less. It's a simple timing issue. We are growing constantly on that. We don't see anything. It's only quarter small timing issue. Okay. Right, sir. Right. Secondly, sir, on the CDMO, like the previous participant also said, is it possible to give a number as to what percentage it would be of total revenue? Maybe I can give a rough math. This year, whatever we initiate, because there's three segments in CDMO. One is animal health, what we are doing out of INR 400 crores, 80% goes to innovator. We can consider CDMO or innovator business. Purely what we initiated, we as CDMO last 12 months, this year we'll end up doing INR 70-90 crores from CDMO. If there's a CDMO, CMO complete players, this year it's going to grow INR 70-90 crores. Few projects, whatever we supplied validation with innovators, it's going to start commercialize next year. These are the life cycle management products with innovators, few products we are working. Those two products are going to start commercialization next year. This year, whatever we supplied, these are the launches, is coming to mostly 2030 onwards. That's it today, INR 70, INR 90 crores, and we see growing continuously from next year onwards. That was the 2026, 2027 number, sir. Okay. Should we expect this part of the business, as in the CDMO side, to be growing much more faster than the overall growth in the business? That will go much faster of three years, I can say. Up to three years. These things will take three or four years. One is once you supply validation. Innovative, generally, whatever product, even life cycle management, it takes three to four years to get it commercialized. One of the products we initiated one and a half years back, the first commercial supply is going to start after two and a half, three years. Full commercialization will come from fourth year. Since we initiated 12 months, if we are lucky, we can get something next one, two years substantial, but most of the growth will come from maybe after two, three years. Right. Next two years, our existing business growth will continue. Most important year, we should note, animal health APIs are going to grow very fast next year. Whatever we set up infrastructure, what we did, process improvements and improved credibility to the current clients, it is going to improve drastically. You can see the very good growth next year. Sure. Thank you, sir. I'll come back in the queue if I have more questions. Sure. Thank you. Thank you. The next question is from the line of Sajal Kapoor from Antifragile Thinking. Please go ahead. Thank you for the opportunity, and good to see sustaining healthy gross margins, Dr. Haribabu. That's a very welcome sign. I've got few questions. In an increasingly crowded CDMO market, what are the two, three capabilities you believe are genuinely hard to replicate by others, and which CDMO segments or technologies you have explicitly chosen not to pursue? CDMO, as explained last call also, there are a few areas. One is few companies to do for innovators, for the new products, NCE products. That's where they start developing at phase I or phase III level. Once the innovative product approach, they continue commercialization at this company. Second thing is lot of innovative companies, if you see even next three years, many blockbuster products are coming out of patents from innovators. Last three, four years, innovators started looking at alternate low-cost area to improve their life cycle management. That's the second one. That's where we are focusing. We are doing good, both animal health and also human health, whatever we started targeting life cycle management. This requires two areas very strong. One is EHS sustainability, and the second is quality credibility. We believe, since we focus from beginning of the establishment, always focus on EHS and quality. Also most important, it's tested by various innovators. We have proven we are much capable to do business with them. All ethical things, see the sustainability, all. It's pretty established with innovators. That's where we see. Most important, we are very efficient and speed is very fast compared to whoever is actually large CDMO players. One of the innovator company we are working with, additional site recently for albendazole. Normally, they take two, three years even to initiate and do that. When they see our new site and capability, EHS status, they want to do more than what we anticipated. We thought it takes 18-24 months. They're going to close in four months. For lifecycle management, we see the good growth opportunity for us next two to three years. The first thing, that's where we are building new products next two to three years. That's what I said, building separate CDMO infrastructure and also people. The third thing is where the companies are looking at, there are large number of specialty companies, especially in Europe, and also there's big generic companies. They're able to develop new products, complex products, but they're not able to scale up internally. That's where they're looking at the quality manufacturers which sustain the compliance. We see the large number of opportunities. We see last 12-18 months, whatever we generated, INR 70-80 gross revenue, that's come from many complex new products, especially onco facility. Onco, very few quality facilities are available in India. We are the first choice, it looks like. Many products are coming. Every month it comes out. These are the most of the products are first-to-file where day one launch happens. Either they get exclusivity. Even if they get 10%-20% exclusivity, that's good enough for us. Most important is locking with the customer. When they work with us, tech transfer and contract manufacturing with some optimization. They locked with us, they cannot go with others. We see these three opportunities. Second and third, we are very active, and with our speed, quality, EHS, we're able to differentiate. First one, where the new products like Laurus or Divi's, they do NCE products. We are gearing up for future. It's all differentiation is basically speed, quality, EHS. Those are the differentiating factors. Hardly, for my experience, hardly we can see very few companies capable to do that. Of course, everybody claims CDMO, CMO, even solvent recovery guys, but we see very few companies are able to do that. Absolutely. Thank you for detailing all of that. Just one clarification. Today, we are not ignoring NCE or patent-protected CDMO, but we'll go after that space maybe more aggressively in another two, three years, because at the moment, the life cycle management, our relationship with the innovators is giving us a lot to chew already. Is that correct? Yes. We are building what is required, what is to differentiate now. We are starting this year. This year, if you ask me to focus on FY 2027, the top focus is companion animals, as the entire world is looking at. We were surprised by a few data points when I started looking at. You will be surprised, there are 9.4 crores of dogs and 9.2 crores cats. When I visited Italy last month, when I was looking at the data, when I was talking how it can be possible, the dogs and cats. It's a completely different world. You can see Italy cats, at least one is to one of the people. That kind of market we are talking, and most important, that market has started genericizing. Once the growth starts, volume growth, everybody looks for cost-efficient things. That's a great opportunity we see. These are the two top focus areas for us. Yes. The generic penetration in companion animal that is only about 15% today versus human. Yeah Gives us a lot of headroom to grow the companion animal, the cats and dogs. That's where we are going to invest both R&D and also one of the manufacturing infrastructure, either acquisition or organic in India, and expanding front end with products where the markets are strong. Like Europe, there are four, five markets like Italy, Germany, France, and U.K., other than Spain. Spain, we have very strong presence. These are the markets we are exploring how fast we can penetrate, either through organic or looking for some acquisitions. India, it's a fast-growing market since middle class is moving to above middle class. Everybody started liking pet. This is also the highest focus area through BA. This is where we had opportunity to build a very strong presence in India. That's very. Companion animals, if you ask me today, API, we are the largest portfolio company in companion animal API. Okay. We have almost 60% of the total portfolio, and we started developing products even the patent expiry for 2032, 2034, 2036. That's exactly similar to how we used to do for human. These are the things we see we can grow long-term reasonably good. Thank you. Thank you for that question. Yeah, just one last, if I can squeeze. On the distribution side, we are very active on the distribution, not only in India, but even outside India, right? We have got active presence in Brazil and other economies, even in Europe. That should also help us scale up faster in companion animal, right? Yes, we have very strong distribution chain in few countries. Like Spain, we are very strong. We distribute many other companies, innovators, even for others also. Benelux. Okay, Benelux, we have our own distribution channel now. Turkey, we have very strong field force. Brazil. We started building few other countries. Italy, we started building field force for companion animals. Also more than companion animals, since we have production animals approved by Europe, we are extending those distribution chains also for other countries. We have experience of distributing even innovator products like India, we do distribute with joint venture long-term now with BA, and Spain, we do. We have a very strong distribution chain on that. Very helpful. Yeah. Thank you. Sure. Thank you, Dr. Haribabu. Thank you. Thank you. The next question is from the line of Kaustav from VMSPL Capital. Please go ahead. Yeah, hi. Thanks for taking my question. Correct me if I'm wrong, but before the merger, the animal health business did not have Sequent, did not have any exposure on the formulation side to North America. Now post this merger, is there a case for Sequent's business, the animal health business, growing its formulation business in North America since that's a big market? I guess thanks for the question. We are exploring. We are going step by step. First midterm, where we want to grow emerging markets and Europe, since we have established distribution, we have full understanding on the products. We want to target first phase to grow these markets. The next phase is definitely, yes, U.S. also, we are exploring. We are exploring two options, whether organic or inorganic. You know, U.S., one important thing required still. Supply chain, maturing supply chain, it may take some time. We are studying the supply chain, how it works compared to human health. Europe markets, we know very well supply chain animal health. U.S. still we are studying. The two things are required, supply chain strength and also the basket of products, which takes some time to develop or approve. Parallelly, we are looking at alternative, is there any M&A available for that? We are open for that, but the first top priority is how fast we can go for emerging markets, which includes India and Europe for these things. Yes, we are going to explore and we'll be there. Only timing still we are not yet decided. Okay, great. Thank you so much. Thank you. The next question is from the line of Bharat Sheth from Quest Investment Advisors Private Limited. Please go ahead. Thank you. Hi, Haribabu and Rajaram Narayanan. Thank you very much for, I mean, excellent number and opportunity to be with our company. Hello? Yeah, please go ahead. Yeah. Sir, since I understand that our CDMO lever will start playing out bigger way after two, three years. Meanwhile, we are expanding the way geographically as well as product basket, either our own or distribution as well as API. Now that will also require good amount of investment. If I have to build, how do we really want to play growth, sustaining the margin? Is there other room for improving some margin, say, INR 4,000 crore is taken, FY 2027. Beyond that, how do we think about it and what is our aspiration? Okay, thank you. It's a detailed question. Let me try with our best. You know our actions last two, three years. First action is how to build a sustainable company. The balance sheet should be strong. Correct. few years we reached to that. We never focused on the only top line. We could have grown top line much more than that. Correct. We never thought of that. Most important is right balance sheet, right margin, sustainable. That way you can take it to next level. After two, three years both companies, and most important last 12 months, understanding both companies, each other. Now you reach to the scale at sustainable level. You can see the jump from INR 120 odd crores to INR 180 crores base, EBITDA base. Now we are focusing on two, three things, areas. You asked the question, actually, how we are going to support these expansions of that. You see that our debt has come down drastically. Of course, growing at a better speed than whatever we have done. We are going to generate good free cash flow next year. Looking at our current debt, INR 200 odd crores is nothing actually for this company. Even if you look at INR 800 crores EBITDA, is a lot of free cash generates. That can take care of some extent, and also there will be something comes up, warrants, it's going to come. I put money, 25% remaining, I'm going to do 12 months. All is going to come. It's a reasonable size for to do entire organic and also some acquisitions. Most important, when you reach to INR 4,000 crores, INR 800 crores, INR odd crores EBITDA, you can leverage actually debt also to do is there any good acquisition. Right. All the things, whether to leverage debt some extent if required or we can do something, share swap, whatever it is, but it's all purely based on the long-term sustainable. We don't do just to show top-line numbers. We are very comfortable with this current debt position, free cash, whatever we are looking cash generation next 12-18 months, we can do a lot. Right. We don't want to do everything overnight. That's the thing. It's not the case that- No, I do understand. Right. Yeah. What are the aspirations for improving further lever? Some of the points you said that looks like that will also help us in going beyond, I mean, 20% EBITDA margin. Yeah. First, my aspiration is we want to become one of the leading animal health company. You can understand if I want to be top 10 animal generic, I'll not compare innovator. Actually, that itself is the thing. At a reasonable size. Of course, aspiration, I feel practically guys, five years, 15%-20% CAGR is one thing, but when you see the spike, it can go one year actually like you have seen our EBITDA growth 50%-60% this quarter at nine months. We cannot expect 50%-60% EBITDA growth every year like that. We can see that spikes while doing acquisition when there is opportunity. We are confident and we are targeting minimum of 15%-20% EBITDA growth. That's what we look at. Okay, great. Wish you all the best, sir. Thank you. Thank you. Thank Thank you, Bharat. Thank you. Thank you. Okay. The next question is from the line of Aditya from Sowilo Investment Managers. Please go ahead. Thank you so much for the opportunity. I had a couple of questions. One is, now that the merger is completed, what kind of KPIs, internally also, would you be tracking to see whether the synergies that you are expecting from this merger, whether you are able to achieve that? What kind of capability you want to commit for this merged entity? A few things. We defined integration activities, of course. R&D synergies, it may not reflect directly, but there's a lot of improvement on the business expansion and improvement. Okay. That quantification will take a couple of years on that. It comes to network synergies, that's one of the key things. We also explained 50, 60 growth it takes for 18 months. It's tracking very well. That 50, 60 growth, 18 months, start from maybe now three months over another 15 months. We are well on track on that 50, 60 growth synergies and network operations, which includes, of course, corporate functions, restructure. Our intention is not to reduce people. Our intention is more improve the business. The third thing is, since the debt is going to go down drastically in relation to 50, 60 growth, we can see the improvement on interest payment. Already we started repaying a little bit high debt loans, but definitely you can see good improvement on the interest burden. The other thing is, since we are very strong R&D, so this is the differentiating animal health new products, that's going to be a great improvement next three, four years. Coming to the straight point, 50 odd growth, 15-18 months, it's going to happen. That's the first phase. Second phase is going to be the long-term synergies that can show the good growth in the both top line and bottom line on that. Understood. If you look at a three to five years kind of a timeline, what kind of target revenue mix you'll be seeing between, say, animal health and API, CDMO? Ideally, how would you want your business to look like? Today, we see our mix close to 55 formulation and 45 around API. I'm just telling you guys rough figures. Okay. Going forward, we see we'll maintain same ratio because we have intention, aspiration to grow a lot in the animal health formulation business. Formulation also complex thing. We see going forward, including CDMO, it will maintain the same ratio. Okay. API, you know, regular APIs, after reaching to certain level, grow from there, it's not easy like formulation. Since that is going to compensate by CDMO, we can expect a similar growth from both areas. Got it. Just a final question, just a small clarification. Last year around in September, there was this news item, especially in India, that there was some kind of ban on antibiotics and antiprotozoans for treatment of livestock. I just want to understand, would that have any impact on us? Raja, can you answer this? It's not a general ban across all antibiotics and protozoans. There were one or two products very specifically which were identified by the government. Those are products which almost everybody had. For us, it was a very small amount, and it doesn't impact us. I think the other thing for us is that the antibiotics more and more internationally are being delivered in the injectable format. That is one thing which we have because for veterinarian prescriptions, injectables are required. We have a fast-growing injectable operation in most of the animal health products which we make out of Turkey. To that extent, I think we are well covered of that. Having said that, there are continuously new products which are getting launched, and they're getting genericized and we are sort of launching them as well. Sure. Thank you so much. Sure. Thank you. Ladies and gentlemen, due to the time constraint, as that was the last question, I would now hand the conference over to the management for closing comments. Over to you, sir. Thank you, guys. First of all, thank you everyone supporting us for this merger. Okay. We'll do whatever best, but we are very transparent and we are very open. Whoever want to understand better, you can reach out to the people mentioned in the investor presentation. If anybody want to have a different discussions with me also, I'm always available. We run very transparent, very compliant way. Thank you so much for your support. Thank you. Thank you. On behalf of Viyash Scientific Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.