Ladies and gentlemen, good day and welcome to Viyash Scientific Limited's Q4 FY 2026 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 the conference call, please signal an operator by pressing Star then Zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Singhal. Thank you, and over to you, Mr. Singhal. Thank you, Michelle. A very good evening to all of you, and thank you for joining us today for Viyash Scientific Limited earnings conference call for the fourth quarter and financial year 2026. Today we have with us Dr. Haribabu Bodepudi, Managing Director and Group CEO; Mr. Rajaram, Executive Director and CEO, Animal Health; and Mr. Ramakant, CFO of the company, to share the health of the business and financials for the quarter and financial year. I hope you've gone through our results release and the quarterly investor presentation, which have been uploaded on our website as well as stock exchange website. The transcript for this call will be available in a week's time on the company's website. Please note that today's discussion will be forward-looking in nature and must be viewed in relation to the 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 relation team. I now hand over the call to Dr. Harib abu to make his opening remarks. Thank you, Abhishek. Good afternoon, everyone, and welcome to Viyash Scientific Investor Call for the Quarter Four and Financial Year 2026. Thanks for taking the time to join us today. Today is an important milestone for us as we are discussing first-time combined entity 12 months annual results. Q4 FY 2026 is the strongest quarter in the company history. EBITDA surpasses INR 200 crore. FY 2026 EBITDA up by 59.6% and backed by 1,324% last year it was negative. With a good free cash flow, and most important, strong foundation for future growth. Fiscal Year 2026 has been a transformative year for Viyash Scientific Limited, marked by the successful integration of business operations and corporate functions into one unified, strong platform. The integrated platform has strengthened execution, improved operating leverage, contributes sustainable growth, which reflects quarter-on-quarter results. As we enter FY 2027, we are very excited about our product pipeline, infrastructure, strong management team, and sustainable growth roadmap. With a significant leverage balance sheet, we are also actively evaluating selective inorganic opportunities in addition to organic scale-up to further strengthen our platform and create long-term value. As we explained earlier, operationally, we have taken multiple actions across all the businesses over last few quarters, which are reflecting in the results. On the animal health formulation business, all regions are growing very strong, and we believe the growth will continue with our continuous focus on new product launches, geo extension for all our existing products to various countries, expanding R&D, and accelerating new product developments. Manufacturing expansion at Spain and debottlenecking capacity at Turkey manufacturing, which are very important to grow for future business, we have initiated, we are working on that. Strengthen front-end team to expand business new markets and scale up existing markets. Many existing markets we try to add products, we try to add people in addition to adding the new markets. Coming to the human health formulation business, I think it was a great year for human health formulation business. We have done fantastic job FY 2026. Accelerating new product development and moving into complex products with internal APIs. As I mentioned earlier also, finished products, we changed our strategy last two years. One is changing our product mix, moving into little more complex products. All mature products, volume products, we try to internalize API, and also bringing manufacturing into India manufacturing. That's where we are able to sustain the products and grow. Also most important, margins are growing. Recently, we initiated creating dedicated potent lab in R&D to take care of all our new oncology product development for [audio distortion]. API and CDMO business, which is again one of our core business and a strong business. Most important to note this year, animal health, all you guys must be tracking last couple of years. Last five years it was stable, neither growing nor actually degrowing. It was INR ± 350, INR 10 crore business. The first year after five years, we are able to take it to INR 400 crore run rate, and we are very confident coming years it's going to grow very strong. Already we see the growth, and we are going to grow very strong in next coming years. Most important, animal health, we relooked at entire strategy. Of course, that's a part of our strategy of synergy exercise. We identified few areas, execution capability, especially on the manufacturing. Most important, R&D, speed, efficiency and portfolio development. We initiated all those areas last six months. It's working very well on those things. We're able to develop couple of products already last six months, and we are covering product development up to at least 2035 patent expiry. We see the huge potential to grow on that business. Other area, operational efficiency improvements, and we see tremendous improvement in Animal Health API operations last six months. Capacities are growing. We are able to optimize. That's where it shows growth as well as margins improvement. Coming to Human API, like formulation business the last two, three years, we try to optimize in various aspects. Taking out commodity products, taking out late intermediates into taking out and converting into API business. We did a big exercise last two, three years. That's how we are able to improve the gross margins drastically. Last year also, we did some optimizing of intermediate business. All intermediates, whatever we are doing, either we are trying to convert into API which in fact is going to convert into finished products. We started last 18, 24 months, started getting approval. That's where you can see the growth in near future. Other strong area for API is our continuous development of the new products. As I mentioned earlier, call also last 12 or 18 months. We moved out from general volume products to complex and little more high potent areas. We were able to do large number of products, validated and lock in with many customers. Launches are going to come near future and also in the long-term perspective. Whatever we developed last three, four years, we acquired these companies, 2021, and started rebuilding R&D from 2022 and filing many products from 2023, 2024, 2025, which started coming approvals now. This year onwards, we are expecting reasonable number of approvals which give good value, for top line as well as bottom line. Other area where strategically we are focusing, of course, we were talking, I think you know, different areas. One of the area, where we are strongly focusing with innovative business on the lifecycle management. All you guys are aware, Animal Health, almost 70%-80% goes to innovators. We see the strong potential to grow near future. Whatever we are doing this year, I can expect next year at least 30%-40% growing innovative business. Innovative business is quite sustainable and reasonably profitable business. That's where we are focusing, we see good potential to grow. You can see 2027 itself growing that business. Finally, which is very important, of course, integration and synergies. As I mentioned earlier, teams have been integrated very well, whether it's operational or business or most important, corporate functions. Most important thing is the entire team is fully charged up for future growth. That's where is my excitement personally. Coming to the synergies. Synergies are tracking pretty well. It's tracking better than what we anticipated during the merger, and we are continuously looking for additional synergies. At this point, I will stop, and today maybe we'll allow time for more questions or clarifications. With this, I will hand it over to Ramakant to take care of financials. Thank you, everyone. Thank you, doctor. Good evening, everyone, and thank you for joining us. I'm pleased to present the highlights of our strong financial performance for Q4 and full year FY 2026. I begin with the highlights for Q4 FY 2026. Total revenues today, INR 920 crore, reflecting a year-on-year growth of 19.1%. Formulations revenue increased by 28% to INR 499 crore, while API revenues grew 5% to around INR 384 crore. Gross margin improved by around 236 basis points to 55.1%, compared to 52.8% in the same period last year. Adjusted EBITDA grew sharply by about 64% to INR 200 crore, with EBITDA margins expanding by 593 basis points to 21.7%. Profit Before Tax improved significantly, moving from a loss of INR 37 crore to a profit of INR 125 crore in the current quarter. Profit After Tax also reported a strong turnaround, rising from a loss of INR 32 crore to a profit of INR 66 crore year-over-year. Coming to FY 2026 full year performance. Total revenue for FY 2026 reached INR 3,420 crore, representing a growth of 13.8% over INR 3,007 crore reported in FY 2025. Formulations revenue grew 18% to INR 1,866 crore, while API revenue increased 8% to INR 1,491 crore. Gross margins expanded by 321 basis points to 54.3%, compared to 51.1% in FY 2025. Adjusted EBITDA increased 59.6% to INR 702 crore, with margins improving by 590 basis points to 20.5%. Profit before tax grew more than 26x to INR 349 crore, compared to INR 13 crore in the previous year. Profit after tax increased more than 14x to INR 225 crore, up from INR 16 crore last year. Our balance sheet remains strong, supported by healthy liquidity and comfortable leverage positions, which gives us flexibility to pursue growth opportunities, both organic and inorganic. We continue to focus on disciplined working capital management, ongoing improvements in operational efficiency across the business. These strong financial parameters were reflected in the external credit rating upgrade, with long-term rating moving from A to AA- and short-term rating improving from A1 to A1+. Looking ahead to FY 2027, our key priorities include strengthening merger synergies, improving operational performance, allocating capital efficiently to drive sustainable growth, further reducing debt, and maximizing cash flow generation. With that, I conclude my opening remarks. Thank you for your attention, and I would like to invite the moderator to open the floor for Q&A session. Thank you very much, sir. Yes. Sure, sir. We'll open the floor. Thank you very much. We will now begin with the Q&A session. Anyone who wishes to ask questions may please press star and one on their touch-tone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only 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 Vishal Manchanda from Systematix. Please go ahead. Hi. Good evening, everyone, and thanks for the opportunity. Congratulations on a very strong set of numbers. Sir, could you kind of share some color on the CDMO business as to how we are looking to build that and how we are placed currently in terms of either number of clients or number of products that we are doing on CDMO side, and any potential leads that we have to take this forward in a meaningful manner? Yeah, sure, Vishal. Thank you for the question. I explained last call also the same thing, CDMO. You know, CDMO, there are three, four models working with innovators on NCE molecules, okay, where we start with phase III, move to the commercial thing. Second thing is start with the life cycle management. Whatever their products, normally once its patent expires, they look for alternatives. That's the second business. Third business, now there's a lot of opportunities for specialty companies, both in Europe and also India, big companies where they don't have infrastructure to develop and manufacture. They are coming and looking for CDMO business for specialty products. First one will come little later. The second and third life cycle management business now I can say at least we work with eight to 10 innovators, big innovators, both human health as well as animal health. I see good traction last six, nine months. Okay. You know, animal health, we were struggling little bit on delivering their expectations, but now we have come out from those things. We are able to grow a lot life cycle management products in next one, two years. With eight to 10 customers, few products are waiting for approval, what we initiated two, three years back. It's coming for approval start from end of this year. Started getting approval from a few markets, but can tell the global thing is going to happen by end of this year. Like that, we see good growth potential near future. Okay. FY 2027 I can say at least innovator business on this life cycle management, I am expecting to grow 40%, and the base is around INR 200 crore-INR 225 crore on that. The third thing, specialty companies. Last time I also explained there are two, three models. We develop the product, we manufacture it. They file the product, and we have some profit share also. We did almost 16, 17 products. I don't know number. It's a little more than 16 products on that. Coming for all these are complex products, coming for little later launches. Start from maybe 2029- 2030 kind of thing. It goes up to 2035, 2037. That we are adding continuously on that. We see the good potential on that. In the same category, we also adapted one more model on that. Instead of just working, developing, and doing for them with some profit share, we also initiated few product complex products, joint development. Pure formulation players where they have strong presence on developed markets. We were working with the joint development program. We take risk on the API development and API quantities, and they develop formulation. One way, it's very faster development, since they are reasonably strong on formulation, where we are strong on API. The development cycle is faster and simpler, and more importantly, it's efficient. We initiated three, four products. Already, we have done one product. In addition to that partnership, a few products last quarter I mentioned, matured products. These two areas are growing very fast. Vishal, you know these things will take time. When you are looking for CDMO, always, it's a longer-term perspective. Any CDMO starts with lifecycle management. Once you have a strong relationship built with innovators, then go to the first one actually, where you can start with phase III and convert to the commercial. That's where we are building infrastructure. We started building resources this year. Okay. That takes a couple of years, Vishal. That's our CDMO. I am very practical on this. It's easy to say, "CDMO, I can work with innovators," but I don't want to go into that. Whatever we say, we follow. That's our second and third areas we are working very actively. The first one, NCE, it takes time to be done. That's where we are building. We are looking at various opportunities. If we get something on that area, some inorganic option, we are open to look at. We are looking continuously, but we don't want to acquire just for sake of showcase something or showcase numbers. We are looking it's a good asset if something comes out. That's where we are looking on that. Hope I answered your question, Vishal. Sir, just a follow-up on this, basically. When you say specialty, you do only the API, right? Not the formulation, but the API is basically, maybe it's a complex API? Is that how we should look at the specialty part? Let's make two things clear, Vishal. Formulation, we have our own setup already. Most of our products we do that way. I will explain that. Mostly, these API CDMO partnered with our formulation partners are reasonably complex or high-potent. Because as you know, we have two high-potent dedicated facilities. Capability starts from as small as half a kg or 1 kg- 100 kg batches. These capacities, very few companies are having that flexibility. That's where our strength, with R&D scientists, we are able to do that. The formulation, as I mentioned in my remarks, we are moving into the complex. That's how we are building our R&D onco lab, which is getting ready soon, mostly this quarter and our next quarter. We are moving into the complex products in formulation. The formulation is always partnership model, Vishal. What we do today, we develop the products. We identify the product, and once we come up with proof of concept, we go to the partners, all big companies, and we work with them. They pay for development, and we continue development. We get approval, and we do manufacture. Profit share is mostly 50%/50%. Formulation entire business, what we do is, this directly or indirectly comes into the CDMO business. It's mostly with the big generic players like Cipla or Dr. Reddy's, all big players in the U.S. That's what we do. Got it. Sir, like you said, about INR 200 crore of the business is currently CDMO. Your top line in API is about INR 1,500 crore, so roughly 15%. Over the next two, three years, would this become, I'll say, about 30%-35% of your top line, the CDMO business? Are these relationships with innovators very old, or you have recently built this relationship, and hence there is a scope for you to ramp them up much larger? Most of the relationships are very old. Long, maybe last 10, 15 years. There are two things. One is relationship with Viyash, relationship with Sequent Animal Health, and also our past relationships where we worked. Most of us, we worked in big companies, had experience with these guys. Most of the relationships are already commercially demonstrated. This INR 200 crore business, it's coming from last seven, eight years. The Sequent bigger business is that. Last six, nine months, the credibility of the relationship is improved further, where we focused on the quality on the R&D products, our efficiencies, improving quality systems. That's where they started getting more comfort and looking for more products on that, Vishal. To answer to your question, maybe 90%+ of existing relationships, two, three products that we are anticipating approval this year, next year. Those are the relationships we built in the last two years. Got it, sir. Thank you very much. I'll join back the queue. Thank you. Thank you. Thank you. The next question is from the line of Surabhi from NV Alpha. Please go ahead. Yeah. From there My first question is, there is almost a INR 14 crore quarterly gap between the reported PAT and the PAT, the minority. Wanted to understand which subsidiary accounts for this minority interest, and what is the scale of the subsidiary in terms of revenue, EBITDA, and how is that going to grow in FY 2026? That's my first question. I will start. Maybe Ramakant can add if something I miss. We have two subsidiaries. One is in USA, which is Human Health Formulation. We have manufacturing in U.S., of course, R&D in Hyderabad. That's our manufacturing is a subsidiary. We have majority control on that. The revenue, I think we reported that revenue is around INR 425 crores revenue. I don't know if Ramakant has it, he can tell. The other subsidiary is in Spain. Both are having majority. We are working on that next one, two years, actually, how to get the remaining thing. We are working closely with that. We have option to buyback that. I think Spain, Raja, correct me if I'm wrong, Spain by 2028, I think there's option to buyback. Yes. U.S. we have option to exercise any time. Okay. We are looking at various options. Maybe we look at next one, two years on that. The numbers I don't know whether you factored specific PAT numbers, but overall percentage is, maybe Ramakant, you can explain. As doctor mentioned, the Appcure we own the U.S. formulations business, we own 60% of the stake, minority remains at around 40%. Annual revenue is about INR 400 crore-INR 425 crore. In Spain, again, we own 60%, the revenue from Spain is about INR 550 crore for FY 2026. Currently, whatever you just mentioned, about 20% of the EBITDA, the profit margins are coming from minorities. 20% of PAT. 20% of PAT is from these minority interests. Got it. Just if you could throw some more color on the animal health portfolio. You mentioned that in the last five years it was kind of stable, and this year you're going to grow and more contribution from the innovators. What kind of products and geographies are you targeting, and how much of it will be companion health in this? Also some color on the distribution partnership with Boehringer Ingelheim for the India portfolio. Two, three things in animal health portfolio what I mentioned. One is API. API, we do majority business with innovators. It goes to everywhere, every geography in the world. Most of the products what we have been doing till today, last year, are the matured products, like albendazole, fenbendazole. Okay, there are few mix of large animal as well as companion animals. Most of the products are matured products. Last two years, of course, we started a few new products, which are coming out of patent from 2028 onwards. That's where our focus is going to be on API, while expanding that existing matured product business, adding most important on the new API products, which are coming out of patents. Up to 2025, we looked at our R&D started working up to 2025. We identified almost 50/20 products. Five, six products are very large products coming out of patents. If you know a little bit on the laners, those are the big products on that. The another advantage of developing an API is since we are in the formulation these things, we can enter extend to the formulation development also. That's what we are doing. That's where API business, few products existing clients are adding, and few products, it's adding geography. One or two products they're doing for only India. They started qualifying last year for all other geographies, which are bigger geographies like China or some of the Europe countries. That's where that 100 odd close, whatever I mentioned, is the existing products, so adding geography on that. All new products, whatever is coming, it reflects from maybe 2028, 2029 on that. Also it helps us to protect and lead formulation business with internal APIs. A couple of products are specialized APIs. It's not easy to get sourcing, and even if you get, there are very limited sources. That's how to protect and grow the product formulation, we are doing that. Coming to the formulation, there are two segments. One is large animal thing, where we had lot of focus till last year. From last year, we are extending that focus to companion animals. On large animals, we are adding a few geographies. We are very strong in Spain, we are very strong in Turkey. Last two years, we started expanding geo expansion, trying to add all European countries because both sites are approved by EU cGMPs. Whatever products we are manufacturing, injectables like Turkey and powder solutions like Spain, we are expanding to Europe markets on the large animals. The same way, you know Brazil, we have manufacturing site for large animals, that we are expanding into the Latin countries, and we see good growth from Mexico this year. Other area, few other countries, Southeast Asia countries like Vietnam, we just started our front-end activity. That's one of the bigger market for large animals. Also we are exploring for Africa, all those things, large animal products. Large animal products advantage is we covered almost 80%, 90% of the entire portfolio in that segment. The growth comes on the market expansion on that. Coming to the companion animal, which is the strategic growth area for us next five, six years. Multiple things we are doing. One is with partnership with BI. That's the first that we started last quarter. We want to expand entire our companion animal platform front-end through this partnership. We are going to distribute entire BI segment, whichever are coming even feature also we are going to do that. With that platform, we are able to develop and get into the market. We expanding a lot in the companion animals. We already initiated R&D expansion. It's going to happen next six months, and the product development is going to increase by five, six times. Whatever we are doing, few products today, at least we are looking at seven, eight products per year. Most important, the products are coming out of and some of those products are differentiated products, as you guys know, cat and dogs requires various combinations on that. We are working on that little bit differentiation and new products. R&D started expansion. We gave CAPEX clearance for R&D on the companion. People we started hiring, most important, manufacturing infrastructure also we're adding this year. That gives a lot of opportunity to expand the companion animals. India, we are expanding front-end. Whatever product portfolio we are doing, we are going to launch everywhere. Both focus areas are at first phase, Europe and India, and where we have presence today, strong presence like Turkey and Brazil. This year, FY 2027 is a platform building for companion animals, R&D, manufacturing, and front-end wherever is required. Also we are looking at some inorganic options for these things. We are looking at few options. That's the broader area of companion animals. This is our focus area on that. Got it. Thank you so much. Thank you. Welcome. Thank you. Thank you. A reminder to all the participants that you may please press a star and one to ask question. The next question is from the line of Sajal Kapoor from Antifragile Thinking. Please go ahead. Hi, thank you. Dr. Haribabu Bodepudi, pure play intermediates and API companies such as Eli Lilly and Company have been reporting gross margins in the 55%-60% range. Given Viyash Scientific's exposure to formulations, APIs, CDMO, complex intermediates, how should we think about the sustainable gross margin profile? I mean, over the next three to five years, do you see gross margins inching up from here? We are already at a decent level, when you add formulations, do you expect a higher gross margin? There is absolutely no point doing formulations in addition to APIs. Yeah, I think you answered question yourself, when you said decent gross margin, as I explained. Intermediate and API standalone, maintaining 55% gross margin pure play, it's not easy unless you have a different strategy. That's how we followed last two years. Our gross margins three years back, if you compare our EBITDA gross margin or PAT three years back, which was completely different. Why? Because mix of intermediates and API where we sell. Large business, actually, intermediate contribution used to be much more. That's how we changed our strategies. To maintain or improve gross margins, what we have adopted, wherever there are intermediates where we have strong presence, try to do forward integration. What it means? Forward, forward intermediate, take it to API, take API to formulation, wherever we can do that. The similar way, wherever we are strong in the formulation of API, try to backward integrate. We try to optimize continuously taking out commodity products where we are not able to make good gross margin. Generally, commodity gross margins are 30%-35%. Making those products in highly regulated environment, you are able to survive, but it is not easy to improve. That is how we try to optimize the product mix. We did very well last two years. With that mix, we sell intermediates with a reasonable gross margin and also sell intermediates wherever we are using API so that we can utilize the capacity. That is how we are trying to do that. With this mix strategy, moving to API to formulation to PAT, we are able to manage the gross margin. Knowing this business last 30 years. Even if it improves ± 1%-2%, unless maybe after five, six years, unless we still go to that, I think these gross margins will be maintained. Once you move to CDMO and NCE, maybe improve. Otherwise, at this stage, I feel this is reasonable, and we are confident to maintain those gross margins. Here a, say ±1% or 1.2% kind of thing. That's helpful. I was following the commentary from Zoetis management, the animal innovator leader in the U.S., and they sounded cautious in terms of generic opportunities. The reason is that some of the American consumers are consciously shifting into generic or more affordable drugs for their companion animals. This was not a trend that was seen earlier. In this changing landscape, logically thinking, companies like us should be able to gain more traction, maybe through life cycle management and even directly offering our own IP, the generic molecules that is. What is your thought process? Thank you. That's exactly what we're trying to do. This entire companion animal segment, what we are projecting, what we are strategically working next five years. Europe companion animals, it's moving little faster, genericization. You know today, developed markets, innovative controls, fully animal health segments, whether it's animal or companion animals. Under-developing countries have moved into the generic business, but developed countries still controlled by innovators. For us, companion animals, it's moving fast. Last two, three years, if you say. Still it's a large opportunity because the volume is growing. There's no rocket science here. Last three, four years, post-COVID, pets are growing day by day. Pets is like kids. Every country is growing. I was surprised to see U.S., there were 9.4 crore dogs and 9.2 crore cats. That together, INR 18.6 crore. That means each family is having at least one. Europe is growing every day. Surprisingly, cats are growing much faster than dogs. When the volume is growing, another issue in this, especially Europe, unlike human health, insurance coverage is not full. It's covered by 25%. We visited all distribution centers and hospitals, everything. Insurance covered is by only 15%. Since the volume is growing, it's natural it has to convert into generic. That's where we see the bigger opportunities. That's how we want to do. Start with Europe, India, where the bigger markets are growing, next step is go to U.S. U.S. is still little complicated, especially companion animals. Guidance is not very clear. Is it actually some of the solutions, we do something for humans, but BA sometimes it's not acceptable, same as human. It requires a little more studies. It's little complex guidance in U.S. That's where actually our next two, three years focus is on where we can do faster growth. Europe is, since we have experience, exposure, actually, we see that's a faster growth. Next phase is going to U.S. by doing ourselves or look for something else. Exactly we are doing that. That's the area where we are accelerating. That's the reason we decided to go quickly R&D expansion as well as manufacturing expansion for companion animals. Very helpful. Thank you. Lastly, this time around the receivables growth, that's common. Receivables often outpace the revenue growth in a scaling business. It's a common observation, nothing unique to us, but it has happened this time around. As manufacturing eases and next constraint may shift somewhere else. What is the next bottleneck you see in the system, and what operating discipline will keep cash conversion and execution quality intact as the complexity increases going forward? Thank you. Few things, when you want to grow faster and big. Okay, these are the natural things. Sometimes, inventory, receivables. Few countries like Turkey, all these countries, credit period is very high when you are growing bigger things, where we don't see any risk. Looking at various things, we always look at networking capital things. This year, our focus area, you might have seen this quarter when our EBITDA is INR 200 crore versus PAT, INR 60 crore. That's one of the key focus area. How can we convert into EBITDA to PAT better? Various options. Of course, our finance burden is going to come down. We are looking at the tax structure also differently. That's how we are moving couple of subsidiaries from old tax regime to new tax regime. Old tax regime, India, 34%-35%, it's moving to 25%. We are looking at the various options, but sometimes it's exceptions receivable when the market demand. We are working closely on all these things. Ramakant, if you want to add something, you can. Yeah. Just to add, I think absolute number does reflect the growth in revenue. Absolute number of receivables if you see that increase is majorly because of the revenue growth. If you look at the number of days, it has been within a small range, maybe about five, six days of increase that we've seen in Q4. Which we believe is in control. We don't see any concerns there. As doctor said, the focus continues to remain on how do we convert from EBITDA to net profit. How do we optimize that conversion or maximize that conversion is the focus area for the next couple of quarters. Thank you. Thank you so much for answering all my questions. Thank you. Thank you. Thank you. We'll take the next question from the line of Kumar Saurabh from Scientific Investing. Please go ahead. Hello, sir. In last conference call you had spoken about companion animals generic penetration being just 15%, 20%. If you can talk more about that data in terms of what is the total addressable market, both in India and globally, and what is relevant for us, how this market is growing. If you can give more details on this. I think our where we are focusing market. Raja, maybe you can add if I miss something. Companion animals, mainly Europe is the thing. U.S., we are not. Of course, bigger market is U.S. since most of the market is a branded market, innovators. I think Europe is close to a billion-dollar market, right, Raja? That's the addressable- Yeah. Bit more, but the addressable market would be that if you leave out vaccines. Yeah. Without vaccines, where we are planning, it's close to $1 billion. Most of the products, we are working on that. That's the thing. Also we see that genericization also is improving on that market. That's the more developed market. India market is not big, we see at least it's going to grow. India, we're also looking at various things near future. At this point, mostly we look at medicines, that's what we distribute, vaccines for BA, all products. It's going to be few hundred INR crores in India. The rather addressable, what we are looking at the $1 billion market in Europe at this point. We are preparing all for that, whether it is R&D or front end or manufacturing on that perspective. U.S. is the next phase. That's the bigger market. We take it in the next phase. If in between, if something comes up, right opportunity, inorganic, we may look at. Our first priority is to address Europe and also to address countries like Brazil, these countries. If I may just add, I think the important thing is that unlike human generics, where the pricing drops very drastically to almost 10%-15% of the innovator's price. I think what happens in animal health generics is that the pricing drop to the generics is far slower. It tends to be more like 60%-70% of the innovator's price. Therefore, you're right in observing that, one, genericization is much less in animal health. It is increasing very fast. Europe's an interesting opportunity. Also because there is an opportunity if you have a front end to actually distribute branded generics at reasonably good margins. I think that's the other piece which is there. Yeah. Thank you. The good thing about our strategy is now we have understanding on everything. Front end, we have great understanding since already we are doing. We are very strong on API, we are strong on operations. With the integrated play, definitely, we believe we can differentiate this and grow bigger. Thank you. Okay. Thanks for the detailed response, sir. One last question. Our performance has been commendable. I think what you guided for FY 2020, you achieved much before. We are much above the 20% guided margin. Do you see further scope for synergies and cost advantages or this is the optimum we should consider, or is there more to extract in terms of optimizing the margins? It's two things. We have to balance margin versus growth. This year we are going to invest a lot. As I mentioned, our R&D investments are growing a lot. Okay. Substantial investment is going to happen on finished product formulation, both human health and companion animals. Most of these are complex molecules. We are going to invest a lot on R&D. Also when you are building additional capacities, there will be some free up on that. It's a try to balance, but we are very confident to maintain these margins, but once you Actually, next phase is the investment phase. Whatever we did last two, three years, optimizing existing infrastructure. Next two years, we are going to build and invest on the R&D on new things. We are very confident to maintain these levels. I'm always trying to be practical on that. Okay. If we get some few products, good thing, we may, but we are thinking at this level, gross margins. Sure, sir. Thanks a lot, and I will come back in the queue. Wish you all the best, sir. Thank you. Thank you so much. Thank you. Thank you, sir. We will take the next question from the line of Chintan Modi from Oaklane Capital. Please go ahead. Yeah. Hi, sir. Thank you very much for the presentation. Sir, my first question is with respect to the synergy benefits. I think we are targeting something like INR 60 crore-INR 70 crore. Can you tell us, and you mentioned that there could be some more synergy benefits. How much has been accrued and how much more we can see in the next year? Rough math, I can say annualized, we are accruing close to what you mentioned, INR 50 crore-60 crore. Initially, when we decided this merger, we anticipated INR 50 crore-60 crore overall. Now we are going to do much more. At this point, I think tracking INR 50 crore-60 crore of annualized numbers. Again, the bigger portion also is coming to term in next 12 or 18 months, because with synergies, operations, we have to develop and file approval. All these things will take its own time. As you know, last quarter also I mentioned, we invested CapEx for all kinds of capacity increase in Viyash. We are waiting for approval. Once that comes, it's going to have further synergies. We are hoping all together at least maybe INR 125 crore-150 crore at this point, annualized. At this rate, we are tracking at this point INR 60 crore, but next 12 or 18 months it's going to happen at INR 125 crore, INR 150 crore. Got it. Next question is, sir, because of the recent geopolitical issues, many chemical companies have been facing raw material availability issues as well as the volatility in prices. Could you throw some color on that, on how we are placed over next one to two quarters, and is the raw material availability secure for us? As you know, it started beginning of the March. There was a small impact in March, but it's not material. Two things. We are able to manage on, one is, inventory. All key materials, we have enough inventory to manage one or two quarters. The bigger impact on two things. One is the solvent where we cannot keep inventory for months together. The second one is the freight. Freight impacted a little bit, INR 1 crore-INR 2 crore in fourth quarter. Solvent, there was impact, how we are balancing, since we are recovering very efficient solvents, that the consumption we're trying to minimize whatever best possible. Another area, we are trying to increase the prices. We are able to increase the prices to balance these things. So far we are able to manage very well till now. This quarter also we are confident to manage. If it continues further, maybe next one quarters, we need to see that how much we can increase the price. At this point, I don't see any material impact on that. Whatever we do, price increase versus raw material increase or freight increase, we are able to balance. There may be little impact, but I don't see bigger thing, at least for this quarter. Next quarter we need to work on that. Got it. We are managing very efficiently on that way. Understood. Sir, with respect to tax rate, how much should we model for FY 2027 and FY 2028 as a percent of PBT? I think around 27%. Yeah. The average tax rate should be around 27%. 27%. This quarter was more because of we are moving from old regime to new regime. Old regime some areas are 35%. There was some tax adjustments because of integration or merger. All these things are going away. That also we are trying to optimize that. I think next year onwards it's going to be 26%-27% level. That's right. Understood. Sir, one last question is with respect to, let's say, over next five years, given that we have multiple levers for growth lined up across formulation, API and CDMO, can we expect a growth rate in the range of, let's say, 15%-20% kind of? Is it possible given the market conditions also and the initiatives that we are taking? Yes, 15% definitely quite possible. Still we are working on the detailed strategy. Maybe sometime in June, we are trying to hold a investor meeting with the detailed strategic plan, what we are going to do, how we are going to do that. We may able to tell you. Looking at our current business and what I have idea, I think 15% is possible. Understood. Got it, sir. That answers all my questions. Thank you very much, sir. Thank you. The next question is from the line of Shreya Wazir from BMSPL Capital. Please go ahead. Hi. Sir, I want to understand how you see the company's journey from EBITDA of INR 700 crore that we do today to INR 1,000 crore and then to INR 1,500 crore. In how many years can we achieve these EBITDA growth targets? How does margin volatility due to raw material costs, volatility in different geographies that we do business in, volatility in different business segments we operate in, impact our EBITDA growth targets? Sir, I will answer second question first. Market volatility, raw material. As you know, we do most of our business, API business especially, is the quality markets, developed markets or regulatory markets. The pricing was reasonable, little bit sustainable. We are able to pass it on here and there. With my experience, last five, 10 years, these are the things sometimes it comes, we have to manage time to time. With our base, with our product pipeline, with our market access, I don't see any volatility in going forward these businesses, what we do API. Formulation, there are few businesses like U.S. business. Post-COVID, there were three, four years, it was bad time. Large number of players came from India. It became highly commodity business. That's how we restructured our business, tried to move to entire internal API and also move manufacturing. That's why we are able to manage that. Few markets, other markets like Turkey, volatile, hyperinflation, whatever it is, we see the good growth last one year. For 2026 also, we see the good volume growth, in addition to whatever adjusting inflation. In all, looking at our product pipeline, market access, all those things, I don't see much volatility or impacting margins or growth. The first one, whatever you asked, INR 700 crore versus going to INR 1,000 crore and INR 1,500 crore. You know, we indicated INR 800 crore by 2027 or 2028. Somebody says 2028, 2027, my internal target was 2027. We are able to achieve that run rate now. You have seen last two, three quarters, start from quarter two numbers. That's where we started integrating two companies. Couple of things, synergies and market access happened better than what we anticipated. INR 1,000 crore we are targeting, maybe next two, three years. Of course, next session when I come in June meeting, mostly we'll able to indicate, at this point, INR 1,000 crore. I'll confirm this. Don't take it. Maybe 2029 or whatever it is. I think we already said that. Yeah. Annual growth rate could be 15% from there. Yeah, 15, 16. Easy guess on when we'll hit INR 1,000 crore. Yeah. Anyway, we'll come up during that investor meeting. Okay. Thank you, and all the best. Welcome. Thank you. Thank you. The next question is from the line of Krisha Shah from Mangal Keshav. Please go ahead. Hello, sir. Yeah. Post the merger, we have been bullish on API as a business, but if we see the numbers recently, on a quarterly and year-on-year basis, growth has been around 7%-8%, like a single-digit growth. Is there any particular reason for this, like taking into consideration that our business may be lumpy, or is it sustainable, or do we look forward to double-digit growth in the API business? Yeah, two things. Synergies is not only API, first of all, to answer to. The second thing is API, why this growth is single-digit for this year. As I explained earlier, we try to optimize low hanging or actually commodity business, intermediate business. We are growing API business, which is a quality business like animal health business. It has gone from INR 350 odd crore- INR 400 crore. APIs are growing double-digit. Intermediates, actually, we purposefully reduce that sales. That's the reason the quality of the business is growing. Going forward, you can see double-digit growth. Now we are seeing large number of approvals coming this year, next year on human health APIs. We see animal health APIs step up this year. You can see comfortably double-digit growth. Next year is more or less same as formulation growth. Sir, one more question that I have is that, now that we are expanding, do we have any plans on hiring more R&D talent or investing in R&D expansion or taking forward the scientists? API R&D, we have a big team. We are close to, including analytical process, all together, close to 250 scientists. It's a very strong team, which is enough at API. Finished formulation, we are expanding the team, as I explained, large expansion in animal health. Formulation also, we have reasonable good number of team. Human health, around 55, 60 scientists. That's good enough. Only wherever it requires specialized talent, we are adding in human health formulation. Animal health formulation, we are expanding a lot. That's the focus area this year. R&D, scientists, CapEx, everything we are adding on that. We are going to add at least big thing, CapEx also and R&D resources for animal health, we are adding. Okay, sir. Thank you. Just one last question on the bookkeeping side. If you could give some color on the depreciation going forward. Like, if we see this quarter, our depreciation expense was slightly on the higher side. If we are doing further CapEx in the future, do we see it increasing or Yeah, some color on the depreciation. There are two things in this depreciation, this quarter of this year. Every quarter there's close to INR 25 crore depreciation on goodwill amortization. That's going to be reduced next quarter onwards. Last year it was INR 100 crore on that. This year it's going to be INR 35 crore. Second half, it's going to be zero. The INR 25 crore, INR 50 crore second quarter, maybe INR 10 crore, INR 15 crore. That depreciation is going to come down around INR 65 crore from existing base annually. The new CapEx, whatever we are adding, I don't think it will increase substantially. Why? I think its run rate is going to go same level. Whatever is the new CapEx, the existing depreciation, I don't see much difference on that from a competitive standpoint. Yeah, that's it. As doctor mentioned, the current numbers, if you look at the annual number, about INR 100 crore is depreciation or amortization coming from amortization of intangibles. That will go away and the next year it is going to be at about INR 35 crore. The depreciation, excluding this amortization, we believe that it will be similar to the current year. Okay, sir. Yeah. Thank you, sir. That was helpful. Thank you. Thank you. Ladies and gentlemen, in the interest of time, we will take that as the last question for today. I now hand the conference back to the management for closing comments. Thank you and over to you, sir. Thank you, guys. First of all, let me say thank you so much for your continuous support. I know you guys had lot of patience last four, five years. It's hard to believe also when we said this company is going to go turnaround. Fortunately, we have fantastic team. We're working as one team, both companies. Things are going well. I'm very confident this company will have great potential in future. Thank you. Thank you so much for your support. We are always available if somebody needs any clarification or anything. Whatever we can do. You know the timing, that's sensitive. Wherever it is, we can explain. Thank you, everyone. Thank you. Thank Thank you, sir. Thank you, members of the management. On behalf of Viyash Scientific Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.