Ladies and gentlemen, good day, and welcome to Viyash Scientific Limited Q1 FY 2027 earnings conference call, hosted by SeQuent Scientific Limited. As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Abhishek Singhal from SeQuent Scientific Limited. Thank you, and over to you, sir. Thank you, Pari. A very good evening to all of you, and thank you for joining us today for Viyash Scientific Limited earnings conference call for the first quarter of financial year 2027. 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 investor presentation, which have both been uploaded on our website as well as the stock exchange website. The transcript for this call is 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 risk pertaining to our business. At 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. Welcome to Viyash Scientific investor call for Q1 FY 2027. Thanks for taking the time to join us today. I am happy to say that Q1 FY 2027 is again a very good quarter for us, and it shows that not a one-quarter story, but a company which delivers consistent results quarter-after-quarter. Our integration is now complete. This will be one of the few successful integrations you can find in the industry, and that too in record time period. Starting with the quarter performance, revenue from operations for Q1 FY 2027 was INR 946 crore, grown by 20% year-on-year. EBITDA was INR 205 crore, grown by 59% year-on-year, with EBITDA margin at 21.6%, expanding by almost 530 basis points over last year. Profit after tax was INR 79 crore, which has more than doubled year-on-year. Our EBITDA to tax conversion is showing good improvement both year-on-year as well as quarter-on-quarter. Our balance sheet continues to show improvement. Net debt has come down to INR 86 crore and net debt to EBITDA is now 0.1x versus 0.24x last quarter, and almost 1x a year back. In four quarters, we have gone from a leveraged combined entity to a company which is virtually debt-free on a net basis. This gives us tremendous opportunity with respect to brownfield expansion as well as exploring inorganic opportunities. Coming to segment performance, our animal health formulation business continues to grow very strong across all regions, and we believe the growth will continue with our continuous focus on new product launches, geo extension for our existing products to other countries, expanding R&D, and accelerating new product development. We continue to invest in expanding our manufacturing operations. We are also seeing strong growth in domestic market as well, up to 60%, and here we are looking to expand our field force and product portfolio further to grow aggressively. Coming to human formulation, our U.S. business has grown 60%, showing results of our efforts to moving towards backward integrated, more complex products. That is now translating into real growth along with profitability improvement. API revenue has been broadly flat quarter-on-quarter due to timing issues on account of raw material price volatility, as customers were in wait and watch approach. As all you guys know, the war is continuing. Nobody knows when it is going to end. During June, most of the customers wanted to wait and see how it is going to work out. But now we see good traction. Lot of orders are coming back, and I can see this quarter is going to the best quarter for API for us. Coming to where we are investing for growth. We have signed SPA for BioForLife acquisition in Italy, and we are expecting to close the acquisition in next few months. This is on fulfillment of certain conditions as per the agreement. This acquisition, as I mentioned on previous call, aligns with our focus on companion animal as number one strategic growth area for the next five years. BioForLife gives us direct market access in Italy, one of the largest companion animal markets in Europe. It comes with a companion animal portfolio, about 85 products, which can be extended to our core markets, and sales force with about 85% vet clinic coverage in Italy, plus strong local talent. Combined with our BI partnership in India, which is now scaling up, our own R&D and manufacturing investments in companion animals, this is a very meaningful step in building the entire companion animal platform across world. On farm animals, we are focusing on filing the white spaces in our current portfolio, as well as expanding the market for existing products to other geographies. We want to focus on new product development on molecules which have potential across multiple geographies. For human formulations, as I mentioned earlier, we will continue to focus on first to file opportunities, with focus on more on high potent complex formulations with fully backward integration support on key molecules. In API and CDMO, focus is on day one launch, complex molecules, expanding our CDMO business to create differentiation. We have strong relationship built with innovators across human as well as animal health, strong credentials in manufacturing, which helps us create a mutually beneficial partnership models on the CDMO side. To summarize, Q1 FY 2027 shows continuity, sustained double-digit revenue growth, EBITDA margins around 20%-22%, as indicated earlier. Balance sheet now strongest ever in the history. With this platform and this balance sheet strength, we are very well positioned to keep investing, both organic in R&D and manufacturing, and selectively inorganic wherever we find the right asset, while maintaining the discipline on margins. With that, I will now hand over to Ramakant, our CFO, to take you through the detailed financials. After that, we will be happy to open the floor for questions- and- answers. Thank you. Thank you, Doctor. Good afternoon, everyone, and thank you for joining us. I am pleased to present the financial performance of Viyash Scientific Limited for the first quarter of FY 2027. We have started FY 2027 on a strong note with continued momentum in revenue growth, significant improvement in profitability, and sustained expansion in margins. Our performance reflects the benefits of initiatives undertaken over the past few quarters across businesses, along with continuous focus on operational efficiency and disciplined cost management. Revenue from operations stood at INR 946 crore, registering a strong 19.5% year-on-year growth and a 2.9% sequential growth. Gross margin improved to 54.1%, compared with 51.9% in Q1 FY 2026, representing an improvement of approximately 220 basis points year-over-year. Adjusted EBITDA increased by 59.2% year-on-year to INR 205 crore, with EBITDA margin expanding to 21.6%, compared to 16.2% in the corresponding quarter last year. Profit before tax increased by 132% year-on-year to INR 112 crore, compared with INR 48 crore in Q1 FY 2026. Profit after tax increased by 115% year-on-year to INR 79 crore, compared with INR 37 crore in Q1 FY 2026. Our finance cost declined to INR 12.5 crore from INR 20.4 crore in Q1 FY 2026, reflecting the benefits of our continuous focus on balance sheet strengthening and debt reduction. Pursuant to the composite scheme of amalgamation and upon receipt of necessary approvals during the quarter ended June 30th, company has granted 1.3 crore employee stock options, representing 2.8% of post amalgamation paid up share capital of the company. This has resulted in an incremental expense of INR 19 crore for the quarter ended June 30th, 2026. Profit before tax of INR 112 crore and profit after tax of INR 79 crore for the quarter ended June 30th, 2026, are after considering the expenses on account of these additional employee stock options. We remain encouraged by the strong start to FY 2027 and continue to focus on disciplined execution and capital allocation to deliver sustainable and profitable growth. With that, I conclude my opening remarks. Thank you for your attention. I would now request the moderator to open the floor for question- and- answer session. Are we able to take questions? Okay. Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the questions assemble. The first question is from the line of Naman Bagrecha from IIFL Capital Services Limited. Please proceed with your question. Hello, can you hear me? Yeah. Thanks for the opportunity. I have a couple of questions. Starting with the EU region, if you look in terms of the YoY growth on constant currency basis, EU revenue has been largely flat. Anything to highlight over here and what would be the outlook? Raja, you want to explain? [inaudible] EU region, actually, Q1 is showing 13% year-over-year growth. That is saying actually. In terms of the EU, our constant currency, if you look, EUR 16.8 million would be the sales figure, versus Q1 FY 2026, EUR 16.9 million. On a euro terms, EUR terms, it has been flat. Yeah, but actually, if you look at the fourth quarter tends to be a little bit more of a management of how the sales have gone, because on a full year basis if you look at it, the growth will be closer to 20% for the EU region. Some of it is more of a bit of phasing between one quarter and another quarter. But by and large, we are growing volume over there, and the volume growth in that market, plus the pricing growth, should get us back to the levels at which we have typically been, which should be closer to the 18%-20% growth. This is more a question of how the quarter-on-quarter looks. But really, the way to look at some of these businesses is on a year-to-year basis, because EU is a set of markets where one market may, in one particular quarter, show a little bit of a lower sale than the other quarter. Is there any seasonality in terms whether 1Q is lower versus, let's say, 4Q? Generally, third quarter is better. We generally have a peaking around third quarter. It's also a question of some businesses which are tender-linked, or some of them are linked to outbreak of vaccination-related issue. So you could have a bit of a movement on that. But yes, you tend to have a higher sort of growth coming typically in quarter three, a little bit in quarter one, than in quarter four. But you're really talking of growth. So from a growth point of view- Yes If you look at it quarter-on-quarter, it is more a question of phasing of what was last year same quarter versus this quarter. But there is nothing which indicates that this is anything which is disturbing. It is more like a steady volume, plus pricing, plus foreign exchange growth. Yeah. No. Actually, I was comparing it on a YoY basis only, not just on quarter basis. So YoY also it is flattish only in EUR terms. YoY, I think you are saying on FY? 1Q FY 2026 versus 1Q FY 2027. In constant currency. Yeah. But that is what I am saying. On the quarter, very specifically, it is more a function of the phasing of what kind of contracts may have been there in the respective two quarters. But the way to look at it is really on a full year basis, which is when you will have some movements between different quarters. EU continues for us to be a market which is closer to an 18%-20% kind of a growth. So 18%-20% kind of growth on an INR basis, right? Yes. On an INR basis. As you know, few of the European countries we started building last few years, but our major countries like Spain is doing extremely good, but few other countries like [Bremen], Benelux, where we are building. Yeah. That's taking some time, but we are very confident this year we'll grow much better. Got it. In terms of the emerging markets, emerging markets have actually surprised positively in terms of growth this quarter. We were looking at more of a mid-teens kind of a growth, but on a constant currency, let's say, if on a dollar terms, it has grown almost around 23%-odd. Do you expect this momentum to continue, or what were the drivers of such a strong growth? Emerging markets, mainly Türkiye, Brazil, we have a very strong product pipeline, of course. A few launches also happened last quarter. Both countries started growing volume. Because from last year, we are seeing the volume growth. Earlier, Türkiye used to be only pricing increase, but last few quarters, we see good potential to growing volume. Looking at the volume, looking at all our product launches, we are confident to grow close to that. That's how we see. Both markets are doing extremely well. These are the three countries, Türkiye, Brazil, Mexico. All are doing extremely good on this business. Got it. If I may, there are a couple of questions. I mean, the U.S. business also has seen a very strong growth. Anything particular to highlight why it was such a, I mean, almost around 45% YoY, 6% on a QoQ basis growth in dollar terms. As I mentioned earlier calls also, U.S. we've been trying to restructure a little bit last two, three years. Post-COVID, we struggled a little bit pricing issues since we had manufacturing in the U.S. That's how we started moving volume products to India, and also a couple of products we tried to fully vertical integrate. Those actions happened last year. A couple of products started shipping from India with our API. That's where margin profile improved, and also we're able to maintain our market share. Last year, of course, we had one good launch. We're able to make good. Still we are having 50%-55% market share. These are the few things. Changing the strategy, moving volume products to India, full integration with APIs, and adding few new products. R&D also stepped up, actually. Our R&D revenue also has slightly improved. All these actions actually worked out very well this year, and it's going to work on that. If you ask me, is it going to 60%? Answer is no. But it's pretty stable. We have very confident now actually to grow this business on that. Because most of the products, whatever we develop or commercially launch, goes with fully integrated thing. All volume products, we tied up with Indian manufacturers strategically. We can see strong growth potential in this business as well. Okay. Just to summarize in terms of whether my understanding is correct. Basically, earlier, or let's say for certain products, this API is now getting manufactured in India, which was not happening earlier, and hence we saw a margin increase in Q2 FY 2026 versus FY 2025. Yeah. If I look at Appco's income statement, EBITDA margins have sharply improved from 1-odd%- 34%, 35-odd%. Do you expect this to continue, this kind of EBITDA margins for the U.S. business? We are expecting this will continue. Okay. Also, if you could highlight in terms of how has been the animal API growth and the human API growth for the quarter. API, as I say, it's flat because of few reasons. We don't see any business loss in this. Basically, last quarter, especially June, everybody expected war is going to end by June. In fact, it stopped in a few weeks, you know that. When the raw material prices was high in last quarter, we also increased the price. Most of the guys, where they have inventory, they try to actually little bit postpone their procurements. It happened one month, but when they realized after July, now it's not going to over, now we are getting back all product orders. This quarter is going to be very good quarter for API. I think this quarter is going to be the best quarter in the history for us. We see a lot of traction, lot of inquiries to get back those APIs. It's only timing issues that few weeks. Everybody wanted to take that advantage. If raw material or solvent prices come down, we may reduce that. But now it's stabilized. Everybody understood, realized. Now this quarter is going to be good. So it's only timing issue, nothing wrong in that API business. And this quarter is going to be the best quarter for both animal health and human health. Of course, animal health, all we have been talking capacity expansion, a couple of approvals. Now we have expanded capacity. We got U.S. approval also for Vizag site. We also expanded at Vizag site. Just started commercialization from July. And this quarter is going to be the best quarter for API. Mm-hmm. Any color in terms of what would be the revenue run rate for the animal API business? If I remember, we had crossed the INR 100 crore mark this- I mentioned earlier, we'll grow 20%+, but we'll grow a little more than that. Okay. From five years we are growing, we'll grow more than 20%, I can say. Okay. One for Ramakant, sir. Sir, if you could highlight in terms of how should we look at ESOP costs going ahead, whether it should be like INR 5 crore, the Sequent ESOP plus now the Viyash employees getting that INR 19 crore kind of additional ESOP for this year on a quarterly basis, or it will increase from Q1 onwards? Yes. As we mentioned, these 1.3 crore additional options were granted during the quarter. The charge for the quarter was about INR 19 crore. In total, ESOP cost for Q1 was about INR 25 crore. Q2, Q3, and Q4, the number in total would be about INR 40 crore. From next year onwards, this will come down. Next year it is going to be flat, small maybe after completing this 1.3 crore. You know that why it happened. We had ESOP scheme in Viyash. When we merged, part of amalgamation, of course it was clearly mentioned in the merger document also. Since actually it is allotted, it is delayed. When the share price was high, it was at INR 230, that is the reason it is showing more. But it is going to complete mostly by this year and the next year first quarter something. But after that, it is a routine, very small. We do not see any big things or one-time things after that. Next question. Thank you. The next question is from the line of Sahil Sanghvi from Monarch Networth Capital. Please go ahead with your question. Yeah, thank you for the opportunity and congratulations on the excellent set of numbers, sir. With respect to the kind of traction you are seeing on the API side, sir, is it possible that we will exceed the 20% growth for, say, maybe couple of quarters now going ahead? Would that mean you would do higher on the whole year basis in your guidance? API, I mentioned animal health, okay, we are going to grow 20+%. Overall, I mentioned actual double digits, 13%, 14% this year. Mostly next year it is going to increase. We have few launches. This year we can expect double digit, maybe mid-teens or that level. Together, because other API business is much bigger than animal health. We see good traction. Human health, most of the products, big launches is going to come in future. So this year we can expect that it maintains 13%, 15% kind of thing together. Got it. Secondly, during the Investor Day, you had also alluded upon adding new tablet capacity for companion animal and building some more R&D capabilities as well. How are those things tracking, I mean, progressing? R&D already initiated last quarter. We hired people also, whatever I provided, equipment also we placed order. Coming to the manufacturing, we finalized the design. Mostly it is going to start next few weeks or next month, and target to complete by January, February to be ready for taking exhibit batch. We are on track on that. Mostly it will be done by January, February. Got it. Just one clarification from Ramakant, sir. I think what you said is the ESOP cost could be ranging in roughly INR 40 crore for the nine months. Is that correct understanding? Yeah. For FY 2027, the total would be about INR 150 crore. For FY 2028- Okay. ...it will come down to around INR 25 crore-INR 30 crore. Remaining three quarters, INR 40 crore each around. That's right. Okay. Yeah. Yeah, I get it now. Thank you. Thank you, sir. Thank you. The next question is from the line of Bharat Sheth from Quest Investment Advisors Private Limited. Please proceed with your question. Good afternoon and congratulations, Harib abu, Rajaramji, and Ramakantji, on excellent performance. Hello. Yeah. Thank you, Bharatji. Please continue. Sir, I have two questions. One is on particularly, you stated in your opening remark about growing the business of high potent in human healthcare. So, if you can give a little more color, what kind of a current run rate is and how do we see what is the capability that we have and capacity also we have built up, and how do we see that high potent I understand it is more complex and will have a better EBITDA margin also. So if you can give a little more color on that. Sure. So you know, high potent is mostly oncology products. Correct. We started building the capability two years back, API. Correct. Last 18, 24 months, we built R&D high potent lab, we built manufacturing, of course. We have three modules. We started developing a lot of products last two years. Right. That is API thing, and started selling, and we partnered also with many customers in the form of partnership or CDMO or direct selling. That is one of the core business for future. Recently, last 12 months, we also initiated formulation development and partnering with that. As I indicated earlier also, we are investing on formulation R&D high potent lab. It is done now. It is going to be operational. In fact, last week we completed high potent formulation development lab. We started actually all high potent products formulation now. Also, we tied up with one of the strategic manufacturer who is having oncology manufacturing site. We aligned with R&D manufacturing. We started working with partners, but these things you have to keep in mind, it is a long term. Correct. All these products, high potent products, unless you start developing minimum five, seven years early, patent expiry, we are not able to get the business. Most of the revenues, whatever we developed, APIs and partners, it is going to start from 2029. Okay. The big products revenue with the formulation, it starts after 2030. We geared up now. We have R&D, we have manufacturing, and also we have couple of partners, but we are waiting for filing and patent expiry. Most important, patent expiry. We filed at least five, six products, APIs already. The first product we are expecting 2029. There also there is opportunity for exclusivity that product. If you are lucky, if you get exclusivity, that is a big thing. But majority revenues are going to be long term, after 2030. Okay. So how many products, sir, we have in such pipeline? First to file also, which you said. I think last time I indicated API, multiple products, first to file and a few formulation, but I don't have with the number, but at least 50% of our portfolio is either first to file or first to launch. Okay. One more question, just only for Ramakant. Ramakant, how do we see interest cost from here onward annualize? Second thing, I understand last time, Doctor mentioned that we see depreciation side. Okay, I can explain you a little bit. I'm also learning little finance now. The depreciation, the goodwill amortization, you must have seen every quarter, INR 25 crore. Correct. This year, first quarter, INR 25 crore. Next quarter is going to be INR 10 crore, so close to INR 10, INR 11 crore. Okay. After that, you can see that INR 25 crore is not going to reflect depreciation. Third quarter onward, next quarter, I think you can say INR 15 crore benefit. Third quarter onwards, the INR 25 crore is going to be PAT conversion. The interest rates today, we are working and optimizing a lot on those things. Of course, you can see our finance cost also is coming down continuously. We are trying to restructure where high interest cost. Last year, we did Sequent India debt, we restructured. Now, we are currently working with Ireland interest restructuring. We are working various things on that to reduce interest burden as well as tax portion. I think you can see next year it's good. We are at par with any big companies in the interest. We are not paying too much on those things even today. We are going to save more on that. Okay. Thank you and all the best, sir. Thank you. Thank you. Ladies and gentlemen, anyone who wishes to ask a question, please press star and one now. Thank you. The next question is from the line of Sajal Kapoor from Antifragile Thinking. Please proceed with your question. Yeah, thank you for giving me the opportunity. Good afternoon, team. Just a couple of questions from my side. First is, as Viyash moves from integration now into much more complex phase of R&D, manufacturing, geographic expansion, and M&A, hopefully, what are the few non-negotiable principles that management uses to ensure that growth does not compromise execution, quality, and cash generation? Thank you. If I had to put it, three things. One is compliance. No second thought and discussion, whether it is regulatory compliance, finance, statutory, or quality compliance or EHS. There is no second thought on that. The governance thing. As you mentioned, we are actually going in multiple complex area, but in fact, it is not always. Already we are in most of the things. Most of our team is very well experienced on those things. If you see complex products like oncology, we have been doing last two, three years, and the entire team is very experienced. We know the market, we know the products. So that is not the thing. The second thing, if you see that combined company overlap is very limited to the API, and the formulation, it is still animal health and human health is going to run parallelly. So these are the two, three things. Compliance, we never compromise. Governance, we never compromise. Of course, the financial discipline also is most important. After seeing the Sequent story four, five years back, we know what we can do. We can see a lot of opportunities keep on coming on M&As, but we always look at only whatever is going to fit into our strategic direction defined even our Analyst Day, whether companion animal or CDMO or actually complex areas, we are going to stick in that. It's not just go and acquire since our balance sheet is strong, go and acquire to add numbers. That's not the plan. It's only whatever is going to fit into our strategic direction, it's going to be that, whether it is inorganic or organic expansions. Hope, I think I clarified your question. Yes. No, that explains. M&A is one of the key areas, obviously, because if you see the history of Sequent, the earlier management used to pay a single-digit EBITDA on most of the acquisitions. Again, it depends on the quality and the strategic fix. So valuation alone can never be the criteria. But you answered all my questions, Dr. Harib abu. Thank you. My second question is, given the long gestation periods and uncertainty in pharma, where uncertainty in terms of where the downside from major capital allocation decisions can take years to emerge. Because the game is the clock speed is such that it's a long cycle game. So capital allocation today may not deliver the desired outcome or may not even signal green or red for many years. In that context, what do you consider an appropriate level of personal economic exposure for those making such decisions, and does the current ownership, senior management, I know Carlyle has got significant ownership, how do you reflect that principle within the organization, not just at the senior management level, but also at the middle management level? Because whatever as a team, the decision is being made at the management level, then presented to the board, the downside, if any, may not emerge immediately. That's the kind of question I have. Thank you. It's a long question. Thank you for that. First thing is, this company, whatever decision we take, decision to consider the long-term growth for the company, not based on the investor, whether the management or Carlyle or XYZ. Whatever we have been doing last two years investment, we never compromise on the short-term and long-term benefits for the company. So when you say the long gestation period, use capital thing. When you are doing for new company, new setup, for example, if I am doing only high potent separately as a separate vertical. Okay, that investment is used, there's a lot of risk involved in that because of gestation period is high. But in our case, if you see, today business is 90% is a mature business where we don't need to do too much capital allocation. Whatever we are doing, actually, if you look at existing business versus what CapEx we are going to put, it's not substantial. That existing business is able to take care of all these things. Because of that, we have large portfolio and we have multiple geographies, multiple businesses where there's no dependency on either one country or one product or few products. That's where risk is already mitigated. Our new capital allocation is not that much compared to our existing business. That's where I don't see much risk. Whatever we are putting the CapEx, whatever we indicated, I think INR 250 crore-INR 300 crore for a year, that's not big looking at the company's size and business. That's where I don't see any risk on that. One is investor perspective or the company perspective. I don't see any risk on that perspective. Looking at our size, our investments. Thank you. I don't see that. Thank you. Yeah. Thank you, Dr. Harib abu. The clarity of thought is amazing and really appreciated. Thank you so much. Thank you. That is all from my side. Thank you. Thank you. The next question is from the line of Chintan Sheth from Girik Capital. Please go ahead with your question. Yes. Thank you for the opportunity, and congrats on the excellent set of numbers. Sir, one question is on the minority interest. Last year, we had an 18% minority share on pre-minority profits, right? How should one look at minority interest going forward? We are evaluating continuously that. We have minority share in two geographies. One is U.S. and Spain. Since you know that last part, we were busy few quarters with integration. We were busy few quarters actually to finish our roadmap for strategic direction. Now we have clarity what we are going to do. We are evaluating continuously whether we can buy back. That's not an issue today. But still we are exploring whether to buy back today or actually when there is an opportunity to invest a mandate to do that now. We are exploring. But next one, two years, it's going to be acquired 100%. That's what we have planned. Next one, two years. We never know. It may happen soon, but outer limit, I can say two years we are going to do that. Meanwhile, we are looking at various opportunities like [Bioco] recent thing. We are also exploring if something comes up to accelerate our strategic growth areas. We are exploring those things. Maybe we will come back soon on those things. Mm-hmm. But annually, how much outlay we should expect for this year or next in terms of pre-minority charge profits? Last year it was around 18%. How much? I don't know. Minority interest, if you look at for the quarter, is around 17%, and last year, full year was about 20%. You can assume that it will be in the same range, around 16%-17% of the total. 16%- 17%. Yes. Oh, got it. Yeah. The CapEx you mentioned about INR 250 crore- INR 300 crore for the year. Yeah. That should be the number you should work with. Perfect. CapEx at minority, you are saying? No, the total CapEx. No, CapEx overall. No, total investment on the gross stock, you mentioned around INR 250 crore- INR 300 crore for the year. Yeah. That should be the number- Yeah. Yes. Okay. And sir, if I have to look at the business, the API portion, basically, what will be the split between human API and the animal API within that? And formulation also, if you can provide how much is human and how much is animal. You can see the formulation, whatever we reported even the 10 list. Europe, emerging markets, India together as the animal health. Only U.S. is the human health, what we reported, 126 crore out of actually 554 crore, 126 crore human health formulation. Okay. API, at this point, actually 100 crore, 100 at animal health, but it is going to grow now. Today, bigger portion is human, but animal health is growing very fast this year. Got it. Within the human API, do you see the growth rate to increase? You mentioned some positive impact likely to be happening Q2, but do you see stronger growth over there versus overall business? Human health, as I mentioned earlier also, since we moved to more complex areas where products are coming out of patent little later. But major growth is going to come from 2028- 2029 onwards. But till that time, we are anticipating 13%- 14% growth. Sometimes if you are lucky to get one or two products. When you are targeting for day one launch, it's ended up actually one player or 10 players. If you are lucky, one player, actually it's bigger. But looking at my experience, we expect next two years, 13%- 14%. But later 2029, since most of the complex products, more than 50% are first to launch kind of things, we'll have bigger advantage on that. Animal health, since it was not- Sorry. Sorry? Sorry. The 13%- 14% growth you are talking about, the overall consolidated revenue or just human API? API. Human, actually, overall, you can take to that 13%, 15%, whatever it is. Animal health, it's going to be 20+%. But since its contribution is small, actually, average you can take 13%, 15% kind of thing. As I said, since most of the products are 80% portfolio, we develop the new products, which are coming out later. We don't do too many mature products, commodity products. That's not our thing. So we stop developing volume matured products. We are more trying to do differentiated products where we can have good margins on that perspective. Right. Animal health formulation, how should one look at overall fees growing? It is good, but we mentioned to you $1 billion in 2032, altogether, it is going to happen. Got it. All the best, sir, and thank you for answering. Thank you. Thank you. The next question is from the line of Shubham Aggarwal from Burman Capital. Please proceed with your question. Yes. Hi, sir. Thank you for the opportunity. Sir, I just had one question on Europe. We talked about 18%-20% growth this year. Is that including the benefits of the new acquisition, the BioForLife? Or will those be over and above this 18%-20% growth? Rajaram, want to answer? No. This does not include anything of the acquisition. The acquisition is not yet closed. We expect it to complete FY 2027 growth plans. Yeah. In FY 2027, I think a general sort of growth of volume plus price, even leaving out the Forex, should take us into double digits, and then we will see what comes out of the Forex. Understood. Sir, one more question. The emerging markets business this quarter grew by 36%. Is it possible for you to break out this between what was the volume growth and then the pricing growth, and then there is some benefit from favorable currency, if you can break that out? We see good volume growth last quarter. Emerging markets volume is grown by 25%. Majority growth came from volume. Okay. Of course, one or two new launches, but do not expect the volume is going to grow every quarter [27%]. But we can see the good volume growth in these countries' markets. Understood. Thank you, sir, for answering my questions. Yeah. Thank you. The next question is from the line of Gaurav Shukla from Finvestor. Please proceed with your question. Thank you, sir. Yeah, please go ahead. Please go ahead. Sir, may I also? Mr. Gaurav, we cannot hear you. Can you speak loudly? Can we take the next question in the meantime? May I also, sir? Oh. May I also, sir? No, still it's not clear. Take next right now. The next question is from the line of Kumar Saurabh from Scientific Investing. Please proceed with your question. Yeah. Congrats on great set of numbers, sir. My question is regarding human API. You said we have almost 50% of first to file opportunity. If I am not wrong, some of those APIs are Mirabegron, Nirmatrelvir. The brand TAM is around $2 billion, if I am not wrong. If you can highlight what is the target opportunity for us, sir, in terms of opportunity size for this first to file, and what kind of market share we plan to take in initial years? When you compare brand for API, that may mislead you. Okay? If I put it, all our products are development pipeline. Today, brand is more than $20 billion kind of thing. But API, always you have to discount, depending on the API, how much actually it is going to price erode when it comes to generic launch. General APIs are going to price erode by 95%. When it comes to oncology or these high potent, we can expect at least 50%, 60% price erosion. And API contribution is around 20% of the formulation thing. All these things, we always, every product, whatever we try to do, we want to do as much as possible, majority market share, at least 25%, 30%. But average, we are expecting 10%, 15% market share. When one product actually can do bigger, other product may be actually depending on the competition. We can expect, we target always 10%, 15% market share. But it is very difficult to see based on the $2 billion actually brand today, then formulation price erosion, then API contribution, then 50%, 60% erosion. That we need to do product-wise. But our target is actually try to do day one, where we take reasonable market share, and most important, it is sustainability. If we enter day one, the chances of sustainability is high compared to coming as an alternate API supplier. Got it, sir. My second and last question is, as you said, next two years, we should expect around 15%-17% kind of growth, and then some of these first to file launches will happen. Is it like we will have a better runway of growth from 2029, given our 2032 aspiration? And this 2032 aspiration, is it something which we are fairly confident of, or this is something which is highly aspirational? Or you feel this is the bare minimum we will do given things will go on a better track from 2029? A better means some of these molecules going live. I will not go either way, either too ambitious or too conservative, but we see the realistic. If you calculate from FY 2027 numbers, $1 billion is actually working out to 18% CAGR. We feel that is very comfortable, practical aspiration. We have clear plans on that, both organic and inorganic. There are two things if I club, one is 18%. Second thing is, looking at our balance sheet, we have flexibility to do some M&A, not just for sake of doing M&A. Doing these two together, I am personally very confident to achieve that. Okay? If not more, but definitely that. Wish you all the best, sir. Thank you. Thank you, and wish you all the best, sir. Thank you. Thank you. The next question is from the line of Mehul from 40 Cents. Please proceed with your question. Hello, sir. Good afternoon. Thank you so much for the opportunity. Sir, my first question is regarding the acquisition in Italy. Sir, once the acquisition is complete and we are able to leverage the capabilities in other parts of Europe, how much would it add to the top line in the next one year and in the next two years? It takes normally two years. How the process it works, once we complete acquisition, mostly it will be done in next two months to three months. Once you start that, you have to start registering that product into other countries. Our first phase of doing that is wherever we have front-end presence like Spain or Türkiye or Brazil, whatever is accessible and have market, we are going to do that. All these process normally takes 24 months odd. If you are lucky, few things can happen early, but the minimum expectation is 18- 24 months. We can see bigger revenue coming from after 24 months. There is a two-way strategy. One is expanding those products into other region wherever it is possible. We are doing a lot of new products we started. Like we said, R&D is ramped up now. It started developing component and end products. We are getting ready our manufacturing plant by January. We are preparing all bigger launches with full integration from [2029] onward. These are the products mostly. One or two products are coming 2027. That also we are targeting launch that one. That's the two way. It takes two to three years, practically. You don't expect actually jump from next year. Whatever it is, the natural growth from Italy, that's going to grow double digits. But bigger growth is going to happen after two years, by the time we complete all registrations and prepare for marketing. Sir, after two to three years, what kind of top line will it contribute to? All put together, we mentioned EUR 150 million- EUR 200 million component annual by 2032. We didn't work out this particular thing because, one is that this is going to use as a launchpad for Europe. You know Europe, how it's going to work. When you develop and file the product, you have to start filing one product. And that country, when the regulator is reviewing, it's extend to other markets. This is going to be the bigger portion, not only BioForLife products. The intent of acquisition is not only promoting those products, it's using as a launchpad for all those things. I may not able to give you that separately, those BioForLife products, but we are going to grow bigger actually. Maybe you can expect actually, definitely 35%, 30% growth after 2028- 2029. Of course, today also we are growing bigger than that. But the base is small. We see good potential there. Sir, this is very helpful. Sir, how much does API contribute to our top line overall? Overall, API contributes, if I put this quarter sometime. About INR 383 crore is what you- It's all maybe put together 40% yearly, maybe 40%, 47%. Around 40% you can expect. Around 40% is the current contribution of API to our top line? Yes. Whatever we assume this year, close to INR 4,000, that you can expect 40% odd, in between 40%- 42%. Right, sir. And sir, this API, it is partly animal health and partly human? Yes. Majority human at this point, but animal, we are growing. Today it is maybe 2/3 human, 1/3 animal. Animal is going to grow faster now. Whatever products we have for animal health is only 100% API, or is there anything else as well? Animal health, you have bigger formulation, right? Okay. I am not getting your answer. Animal health, if you see, our bigger portion is the formulation. Okay. We are expanding API now. We have API, but bigger thing is formulation. Thank you. Is that question or something, I don't know. Okay. The next question is from the line from Kiran from Table Tree. Please proceed with your question. Yeah. Thank you so much for the opportunity. Sir, couple of questions. The first question is our acquisition, BioForLife. Last time, Sequent acquired Alivira. Apart from the purchase price, obviously, we had a lot of issues, structural changes, local market stresses, there was restructuring, insurance payout. There were too many issues, and that's an experience that India Inc, not just pharma or Viyash in particular, but everybody who acquires Europe has an issue. The purchase price looks too cheap, but eventually the costs are too high to pay eventually in the life cycle of the business. In general, what are the guardrails you have had to purchase BioForLife? Our past experience, both in Sequent via Alivira acquisition and India Inc experience for acquiring Europe has been terrible. You are right by 10 years back. We experienced from that. Even from my side also, we have seen one acquisition. Those days, Indian companies, we want to acquire cheaper and try to manage like India. It never works out. Now we experience on that, what is the complication of it works actually. You cannot actually Indianize Europe operations. When you are working in Europe, you have to understand that Europe business and do it that way. Earlier, five, 10 years back, when everybody acquired, we thought products can move to India, and it never happens. We are very clear strategy on that. Of course, it is a small thing. Most important, it is utilize our launchpad, and we know. Also there is no manufacturing, it is mostly brands there. We have clear idea with earlier experience. We are taking care everything. We do not see any issue on that. Now, you can see last, I do not know whether you have reviewed last few years, Indian companies operating in Europe is doing pretty well. It is not only us, but we know fully on that sensitivity. Got it. Very heartening to hear, sir. Sir, second question. Sir, the rate of growth will increase because of patent cliff, both on the animal side and the pharma side. Animal side, patent cliff is happening 2028, 2029, and pharma side is 2029, 2030. Is that the right way to think about why the growth will accelerate beyond this year? Talking API, most of the human API, we have our portfolio under development, it is up to 2040. Most of the products are coming after 2030. Animal health API, since there was some lag, we have taken product quick development up to 2035. Majority of the products in animal health, the bigger products are coming out patent from 2027- 2033. After 2033, mostly biological is going on. We are attacking both actually, animal health as quickly as possible. Most important, try to vertically integrate also formulation in that. Any product API, whether it is human or animal health, once you start developing the product, it is a minimum gestation period is three to five years. This company is a new company. Viyash, we started two years. We can expect the gestation period, three to five years, minimum kind of thing. That is how I always say the majority revenue is going to come from 2029. We can develop and manufacture, that is not an issue. But the registration, tying up with somebody, and more than that, patent expiry, these things will take its own time. It takes minimum five years kind of thing. That is where we see from 2029 onwards, real new product revenue is going to come for us. Got it. Very helpful, sir. Thank you so much. Congrats. Thank you. Ladies and gentlemen, that was the last question from the participant. Now I would like to hand over the conference to management for their closing comments. Over to you. Thank you. Thank you everyone for your continuous support. I can tell we are in a good position. Our team is committed. We are going to do good. That is what I can tell you. Thank you so much. Thank you. On behalf of Viyash Scientific Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your line. Thank you.