This is a review of the implementation with the risks that the company faces. The conference call is being recorded, and the transcript along with the audio of the same will be made available on the website of the company as well as on the stock exchange list. Please also note that the audio of the conference call is a copyright material of Vimta Labs and cannot be copied, rebroadcasted, or attributed in the press or media without specific entity and company. From the management, we have with us Ms. Harita Vasireddi, Managing Director; Mr. Satya Sreenivas Neerukonda, Executive Director; myself, Mr. Siva Rama Krishna Kambhampati, Chief Financial Officer; and Ms. Sujani Vasireddi, Company Secretary. Now, I would request Ms. Harita Vasireddi, Managing Director of Vimta Labs, to provide you with the updates for the quarter ending 30th June 2025. Thank you, and over to you, ma'am. Thank you, Siva. Thanks for your time. Good morning, everyone. Thank you for joining our Q1 FY 2026 earnings call today. I'm pleased to share that in this quarter, Vimta has recorded the highest ever revenue in a quarter, putting us on a very strong growth trajectory. This quarter, Vimta has witnessed substantial year-on-year growth of 31.4%, with revenue coming at INR 993 million, maintaining our strong margins. The market shifts, the emergence of new technologies, and the continuous innovation in the pharmaceutical and nutraceutical sectors have significantly heightened the focus on product quality and safety, an area where Vimta is distinctly well positioned. Coming on to the services we provide, as many would know, the pharmaceutical testing and research services is a major revenue contributor. The growth in these services has met our expectations. Clinical trial pipeline looks encouraging, and Vimta is pleased to report that we completed a successful U.S. FDA BCP inspection. This was an unannounced inspection, and I'm happy to share with you that there were no 483 observations. We have also received a letter of CGMP compliance from ANSM, EMA during the quarter. These outcomes underline Vimta 's dedication to excellence in quality and scientific precision. On food testing, we are observing consistent growth in business. The business model is to be agile and adapt to market requirements. We started a new food lab in Ahmedabad to cater to the market needs. The electrical and electronics testing services have been stable during the quarter. Last quarter, we embarked on a new chapter with our expansion into biologics contract research and development services. I would like to share that currently, equipment for procurement is in focus and in line with the timelines of commercializing the same from Q1 FY 2027. As a part of our efforts to enhance shareholder value, the board has approved a bonus issue in the ratio of 1:1, showcasing the company's strong financial position, confidence in future growth, and commitment to rewarding its shareholders. Looking forward, we are confident in its new strong performance across all aspects of its offering. With this, I would like to hand over the call to Mr. Siva Rama Krishna Kambhampati to discuss the financials. Over to you, Siva. Thank you, Ms. Harita. A very good morning to everyone, and we are pleased to hear you taking the time to join our Q1 FY 2026 earnings call today. I'll begin by presenting an overview of our financial performance for the quarter ended June 30, 2025. Following those, we'll open the session for your questions. Before diving into the announcements, I'd like to mention that in light of the divestment of the diagnostics and pathological services business announced on August 30, 2024, the figures for the previous period have been regrouped to enable a lifetime comparison with the current quarter. I'll start with the financial highlights. The total income for Q1 FY 2026 is at INR 993 million, as compared to INR 756 million in Q1 FY 2025, up by 31.4% year-on-year. EBITDA stood at INR 354 million in Q1 FY 2026, as compared to INR 266 million in Q1 FY 2025, up by 33.1% year-on-year. EBITDA margins for the quarter stood at 35.7%. Profit after tax in Q1 FY26 stood at INR 189 million, as compared to INR 140 million in Q1 FY 2025 with a growth of 35.9% year-on-year. Cash margins for the quarter stood at 19%. I'd like to highlight that despite external factors such as cost pressures, we have maintained our margins. On the balance sheet side, we continue to have a net debt-free balance sheet with cash and cash equivalents of INR 379.3 million. With that, we can now open the floor for any Q&A. Thank you. Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants who wish to ask a question to the management may press star and one. Our first question is from the line of Pujan Shah from Molecule Ventures. Please go ahead. Thank you, sir. Thanks Thanks for the opportunity. My first question pertains to the biological guidelines, which we are proud to follow, and which the revenue and the commercialization will happen in Q1 FY 2027. I just wanted to broadly understand right now how the dynamics will be working on in terms of competition, in terms of industry sizing, and what are the challenges like these things initially, once we ramp up the capacity. What are the advantages we have, cross-advantages, as we are already associated with the pharma companies as well? I just wanted to give a broad thought on what services we can provide and how it will help to cross that. Thank you for that question. I'll start with the advantages first. We've already been working with our pharma clients in helping them with their new product developments, be it small molecules or peptides, and one-off cases of biologics. We have been providing these companies with characterization services, any other analytical services, preclinical, and clinical research services. The idea behind now pursuing a contract research and development of lab molecules is to get the benefit of all these services and add also formulation development, making it a complete end-to-end package for our customer. That's a huge advantage that Vimta provides because although there is competition in the markets for contract development and research, not everybody is having clinical research and analytical research and analytical, as a complete package. There, Vimta will stand out to be quite unique. Coming to competition, yes, there is competition already in the market, more from CRDMO, Contract Research Development and Manufacturing Organization. There are some leading companies here. Their growth itself, I think, is a good indicator that this market is getting a good spotlight from the industry, not only domestic but even international. The opportunities will be from everywhere across the globe if we are able to maintain our quality and deliver as per the economics. Some of the challenges that we encountered is that right now, although the future everybody talks is with respect to biologics, we are yet to see a great amount of traction in India on biologics. The top two companies are working on them, but I think today the focus is more on peptides. The good thing is whatever capabilities and facilities we are putting up at Vimta, they are good to be used even for peptides, in addition to even biologics. Okay. And ma'am, I think what's the size and the growth opportunity you want to point out? The size and growth opportunity, may I ask you to please refer our annual report? I think we have given a lot of detail there. I don't have the numbers specifically in front of me. The overall, the pharmaceutical services, contract research and development services, I think are growing anywhere between 9% to even up to 12%, 13% globally. Right. Can you give me a broad thought on how we are planning out in terms of electrical testing and electronics testing? Because right now we are seeing a good quantum of companies being planning to go into India for the domestic manufacturing as well. We are seeing, even in the defense as well, the government is focusing on manufacturing and giving indigenous focus. How are we planning out the electrical testing and how are we envisaging the growth in this space for the coming next two to three years? This is a sunrise industry. It's a new industry, especially the testing services for electronics. I think the major push for these services will come from defense and telecom in the next couple of years. Defense, especially because I think India has announced that they want to indigenize a lot of the defense components manufacturing within India. Hyderabad is actually quite a big hub for such OEMs, and this is a three-year-old business for us. It is growing organically. I think the future is bright because even the regulations are just beginning to be developed. As the industry matures, as the manufacturing skill matures, I think the opportunities will only increase for testing laboratories. Could you give a broad breakup on all the key verticals which we are doing right now? Please give us a breakup on the revenue and EBIT margin if it's possible. Top line items, broadly, about 65%- 70% of our business comes from pharmaceutical testing and research services, about 20% from our food testing activities, and the remainder 10% is from electronics, electrical testing, and environment testing. Is this for Q4 then? This is overall. This has been more or less how the pie has been divided for quite a few years now. Okay. Got Got it. Thank you so much, sir, and we'll join back in with you. Thank you so much for answering my quest ions. Thank you. Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Aditya Chheda from InCred Asset Management. Please go ahead. Good morning. Thank you for the opportunity. My question is an update on the expansion that we are currently undergoing in the form of 2,000 square feet. I think phase one was INR 160,000. If you can update us, you know, how much of utilization has already begun and the status of the second phase of the expansion, where are we in that phase? If you can just broadly talk about the same. These are the questions thanks. We have added approximately 200,000 square feet of lab space. What we have done is, our food testing activities have already occupied the new facility, which has, in fact, created some space for us in the existing legacy building. The legacy building we are converting to accommodate contract labs and also the biologics contract research and testing activities because we have been having space constraints for our pharmaceutical testing. The legacy building is now being remodified and restructured to accommodate expansion of the pharmaceutical services. In the new building, not only houses the food testing, we will also be occupying it for preclinical testing. Right now, the occupation from the food side is complete because we have completely moved it from one building to another. Preclinical, they will occupy as they need more animal testing rooms. This is going to be quite organic. The other aspect of this expansion is that we also needed space to add another EMI/EMC chamber. That chamber has been installed and qualified during the last quarter. What we'll be doing is now to move the first chamber also into that building so that all the chambers are together and the equipment are optimally used. That exercise is going down. Now, since the second chamber is up, we will be shutting down the first chamber, moving it to the new building, qualifying it, and then we can have the opportunity to use these together. I got it, ma'am. That's it from my end. Thank you. Participants, if you wish to ask a question, you may press star and one. Ladies and gentlemen, if you wish to ask a question to the management, you may press star and one. The next question is from the line of Umesh Matkar from Sushil Financial Services. Please go ahead. Thank you for the opportunity. I would like to know about the clinical trials. I think we were doing one clinical trial for a client. What is the progress on the same? You mentioned in your opening remarks that the clinical trial pipeline is encouraging. We would like to know about what is the size that we are saving and how close are we for finalizing the deal. Thank you. The pipeline, like I mentioned, is quite encouraging. During the last quarter, we have received a decent number of inquiries, out of which a couple of them are in the final stages of getting converted. The rest also look promising. Like I was telling in some of my previous calls, this is a new activity for us. Initially, it will take us some time to build the clientele, but happy to share that this is progressing well. Okay. Thank you, ma'am, and wish you all the best. Thank you. Thank you. The next question is from the line of Karan Garg from [Garg Advisors]. Please go ahead. Hi, ma'am. Am I audi ble? Yes. Yes. Ma'am, my first question is, what type of services do we provide in clinical trials, and in what phase do we provide these services? In clinical trials, we have the capability to do right from Phase I through Phase IV, support marketing surveillance also. The trial that we have completed so far is a Phase II trial. Okay. Typically, if a company looks to sponsor, engages with you from, let's say, phase one or phase two, do they go till the phase four? I mean, do they stay with us for that particular trial? It's too soon to answer because we have just done one trial. We would hope that if the molecule, or the drug, has done well, then we hope that they will do the next phase of the trial also with us. Okay. Ma'am, my second question is, I think there's a significant slowdown in biotech funding, right, in the U.S. I just wanted to understand what% of our revenue comes from biotechs, and are we seeing any slowdown there, or there's a change in the stats right now? Percentages, I don't have that calculation with me here, but we are not observing any slowdown from that segment of the industry. No. Okay. If you allow me one more question, given that a lot of uncertainty is happening in the U.S. because of COVID and so on, how are we managing that? Do we see any risks because of it, or it might be beneficial for us? Just your viewpoint on that. Definitely, there's a risk. If I think the tariffs and all are increased, the exports might get impacted. So far, Vimta's trend has been to cater to the high-quality requirements of these developed markets. If the developed markets are, you know, having such kind of initiatives rolled out in the future, definitely, it's a risk. So far, we have not seen any impact of such possibilities. We are not exploring any possibility of, let's say, having a facility in the U.S. and just thinking out loud, let's say, in case the tariffs become because we have capabilities. Does it make sense to have a center in the U.S. which can do some partial work there in case the tariffs come? I don't think they are directly related. If the tariffs increase, then the business from India itself will, I think, come down. Generally speaking, it's a good idea to have an office there, no doubt, or a small laboratory there. In the future, it will be our endeavor to look at such opportunities. For now, nothing is on the clients. Okay. Thank you. Thank you, ma'am. Best of luck. Thank you. Thank you. The next question is from the line of Ajay Surya from Niveshaay. Please go ahead. Congratulations. Ma'am, my question is, personally, when I look at FY 2025, we did a CapEx of almost around INR 80 crore. Of this, maybe INR 25 crore-INR 40 crore was for new building, and the remaining was for equipment. FY 2026 also, we plan a major CapEx of around INR 80 crore-INR 90 crore. Of this, we have already spent INR 26 odd crore in this Q1. Ma'am, previously, the major part of the CapEx was towards infrastructure building. If I get it right, it is going to be towards the equipment CapEx. Ma'am, if you can break this CapEx into how much of this CapEx was for replacing older equipment and how much was for the newer one, and from the newer ones, how fast can we expect this to contribute to our revenue? Okay. Last year, majority of the capex was spent on the new facility that we have built. It's not INR 20 crore. I think it's upward of INR 60 crore. Siva can confirm. The remainder was for equipment. Equipment is a routine spend for us, whether it is to add new equipment or to replace existing old equipment. Typically, what we use is the depreciation that is available for us. This is continual. This year, we have a large capex outlay again to complete the final payments for that new building that we have done. Also, about INR 30 crore is planned for the biologics contract research and development services setup. The remainder is for expanding our capacities across our business units. Ma'am, how fast can this new equipment start to contribute? Will it be immediate, or will there be some lag? If you can give more details on that. Yeah. Equipment, typically, we just buy just in time. You know, depending on the lead times, equipment are usually taking just in time. They are not bought in advance, and you know, we wait for business unless, of course, it is for new capability setup. Got it. Ma'am, my next question is, ma'am, in the opening commentary, we mentioned that on the clinical services, the pipeline looks strong. We started with clinical not too long ago, and we have been dominant on the analytical and preclinical services. Ma'am, if you can highlight, going forward, which service category is going to drive the future for Vimta and which service category is evolving? Also, if you can give more details on, in terms of margin and profitability, are they going to be significantly different when we go ahead with a larger portion of clinical services in our business, or is it going to be more or less on the similar lines? Yeah. The pharmaceutical industry is a very mature industry, and it keeps growing with a healthy growth rate year after year. The opportunities, whether it is preclinical or clinical research or even, you know, GMP analytical testing, opportunities are equal across the board. We also see that the outsourcing has increased, across the globe for all these kinds of services. I won't be able to give any margin breakup because that's not something that we share. I can just say that whatever margins we are experiencing now are very good margins. Even by global standards, they are very high. In the future, you can expect that we maintain them plus minus a couple of%. Ma'am, going forward, which service category, like, is it going to be more of analytical, preclinical, or clinical, which is going to drive future for Vimta? I would say all of them. Like I said, opportunities are there in all of them, and we are putting our efforts in all the major areas. We want to grow in all the services. Got it. One last question, if you can, give that trend of consolidation in the industry in which we operate in. Going forward, is the growth for this industry dependent on, like, will it be more manufacturing that happens in the pharmaceutical sector, which will mean more business to us, or is it going to be more R&D spend by these pharma companies, which will mean more business to us? I think both manufacturing and R&D require services from a contract testing and research lab. Whether it is growth in manufacturing or R&D, I think there will be opportunities for us. They are a little interrelated. Without R&D, there will not be a lot of manufacturing growth, I think. Got it, ma'am. All the best. Thank you. Thank you. The next question is from the line of Lokesh Manik from Vallum Capital. Please go ahead. Yes. Hi. Good afternoon, ma'am, and the team. Ma'am, my question was on the annual report. I saw that, you know, the exports have increased significantly, from about INR 80 crore to INR 130 crore. Some color on that, on the nature of which services do they put into. I'm assuming it's mainly pharma within the pharma space. Within that, which subdivision would it be, preclinical, clinical, or analytical? And the sustainability of the revenue from exports. Exports have grown proportionate to the overall growth in business. You're right, the export revenues are mostly from pharmaceutical testing and research services only. The major services we are able to sell overseas are preclinical, clinical research, and a little bit of analytical as well. Regarding sustainability, I would say that definitely sustainable. We would actually like to grow them. Okay. They had seen a dip last year due to some slowdown, and then that recovery has come, or this is on a secular trend that you are seeing going forward? Yeah. Sometimes, you know, the global uncertainties have been there. Post-COVID, I think those uncertainties in one way or the other have been hovering in the market. When those things happen, there will be an impact. When that happened for us in the previous years, I think the domestic market really picked up for us. Understood. That's it from my side, ma'am. Thank you so much. Thank you. The next question is from the line of Ashutosh Garud from Ambit PMS. Please go ahead. Hi, am I audible? Yes, sir. Okay. I just wanted to understand the kind of CapEx we have done in the last year. With that, is the entirety of the CapEx available from a production perspective, or is there any capacity yet to come up? In that regard, what would be our capacity utilization level? The next part I would want to ask is, what is the maximum level potential with the given CapEx and cross-block capacities which you have currently? Okay. Number one was we are talking about capacity utilization. Like I said, our business is growing organically. What we have done is we have created infrastructure for future growth that will serve our growth for at least the next half a decade or so. Utilization will be organic because the business is growing organically. As we grow our business, then there is space for us to use because the capacity for a laboratory is three-dimensional. One is the skill, one is the people, and the third one is equipment. People and equipment, you typically add as you need, but space, you cannot. Once in a while, when you run out of your existing laboratory infrastructure space, you have to create a new building. That is what we have done now. Capacity utilization will be organic. Coming to the revenue potential, again, it's very difficult for us to estimate, but we think this will be good for the next half a decade of growth. What could that be? I mean, what is the number? From a space perspective, let's say I understand the other two will get added as a part of the business. From a space perspective, for what kind of revenues would we not have incremental space? What potential is that would be? Depends on the mix. Very difficult to put a number on that. Give me a year or so, maybe I'll be able to predict that more accurately. The other part of my question was, is there any new capacity? Is there any new, from a production perspective? Could we see, because if you see the last three-odd quarters, we have been in that range of INR 90 crore-INR 100 crore kind of a profit. Can we see a demand push, which is coming in the future in the next two, three quarters, where we see this new capacity really picking up from a revenue perspective on a sequential basis? Yes. All the spaces that you have created, we have already started using them. We have brought in new equipment, and that is installed in these places. Utilization has begun. Okay. Lastly, from a margin perspective, if you have exposure, margins quite dramatically second last year to Q4, which is quite comfortable. Is there any downside for this margin profile? EBITDA margin of around 35% if you are interested, or are you comfortable with the kind of margins we are doing, the exports, the proposal growing, and the kind of product business which we are getting into? Your comments on that. The margins what we have are excellent right now. Like I said, you know there's a lot of capacity that we have added, and with that comes a lot of maintenance also. We are also redesigning some of our labs, so there's a cost to that which we will even, you know, spend on. In that aspect, we can expect the margins to come down a few basis points, but again, it is stabilized. Okay. Thank you, ma'am. That's all. Thank you. The next question is from the line of [Ankur Kumar] from [Alpha Capital]. Please go ahead. Hello, ma'am. Thank you for taking my question. I'm coming at a very good set of numbers. I wanted to understand on the growth trend. We had said that this year's exit quarterly revenue would be around INR 120 crore-INR 125 crore types, annual run rate of INR 500 types. Are we sticking to those numbers? On the margin side, you said we expect to, as in, to reduce even and then come back again. How much reduction are we expecting and by when? Margins might reduce by 1% or 2%. It could happen in the coming quarter or for the coming couple of years. Very difficult to predict. Okay. Coming to whether we are on track with that INR 120 million- INR 125 million per quarter, yes, that's where our efforts are still being put, and we are striving very hard to reach that goal. Got it. Any color on the environment? How are we seeing good demand? How are we seeing things overall? The demand is positive across all our sectors, barring the little activity of environment testing that we do. Demand is good. Sure. Thank you all. Thank you. Thank you. The next question is from the line of Vinayak Mohta from Axia, India. Please go ahead. Yeah. Hi, good afternoon, and congrats on the new set of numbers. I had a couple of questions. Just to clarify first, you did mention that you have enough space now to manage the growth for the next half a decade, which means for the next five years. Is that right? Yes. Understood. While I understand the quarterly variation on the margins because of the maintenance and other costs that are coming into the picture, sustainably, be it any division of food, pharma, or electrical, your inherent business margins are in the range of 35%- 36%. Is that a fair understanding? Yeah, they are upwards of 30% at the EBITDA level. Understood. I just want to understand then from a competitive dynamics perspective, how do you see the industry evolving? Because given the kind of margins and the opportunity that you are seeing coming up, we remain one of the largest, one of the big players in the industry. How are you seeing the competitive dynamics shaping, especially given the fact that there's a trend of outsourcing, of testing, of different value chains, especially given the kind of opportunity India is bound to see? I just want to understand our capabilities and the competitive environment a little better. Capability-wise, we are a 30-year-old organization. Our capabilities have been continuously evolving as per the market needs. That will continue. We will continue to morph ourselves, evolve ourselves as per the needs of the industry. A couple of trends that we are seeing is, a lot more laboratories are coming up in the market, in the Indian market. That is creating a cost compression. What is also happening is because of the proliferation of more laboratories, there is a strain on qualified manpower also. So far, you know, India was an attractive proposition for the overseas markets because of the low cost of manpower that we have or the low cost of infrastructure that we have. This advantage might not be as good as it is in the past. Therefore, I think it's very important that contract research and testing organizations focus a lot on continuous innovation in creating efficiencies, better efficiencies in the operations, maintaining their quality. You see, many companies have come and they were more like fly-by-night operators. They couldn't sustain the rigor of regulations that are required in this industry. Across all these time periods, Vimta has stood the test of time. We have continuously evolved. We have continuously invested in optimizing our processes and making them more efficient, increasing the productivity of our people. What we have done is we have, I think, seen one of the transformers to invest in automation and digitization of our laboratories. Not only does this increase their efficiency, it also gives a lot of assurance on the quality of the processes. These are some things that we do that people ahead of us, we have never hesitated to invest. We know that to grow a, you know, business, you have to invest in it. That's what Vimta has been continuously doing and growing. Understood. You talked about defense also growing as a very large opportunity in the years to come. How do you see the business mix evolving over the next, you know, four to five years? How do you see the mix at the end of maybe three to five years, especially given the kind of traction that we've been seeing? We are optimistic. Can't exactly put a finger on what is the kind of growth that is possible because it's early stages for electronics and electrical testing. A lot has been happening in the geographies of maybe Bangalore or in the north around Delhi. Hyderabad, we were the first private laboratory to set up an EMI/EMC. Immediately, we saw a response because we went and filled in a gap. What will really help to grow this business is, again, tightening of the regulations or introduction of new regulations for various products by the regulatory agencies of the country. Also, increase in exports. Unless our country starts exporting, our experience is that the focus on quality is not that high. These two things have to happen. For these two things to happen, the industry actually has to grow. The manufacturing has to increase. I think there is a good government push, I would say, or a good environment that government is creating for these things to happen in the future. Understood. One last question. Whenever we are doing these testings for the pharmaceutical companies and we watch whatever we'll be doing going forward, are these a mix of innovators and generic companies, or how does the mix happen between the testing customers? It is a mix. Understood. Perfect. Great. Thank you so much. Thank you. The next question is from the line of [Wasant Bansal] from [NVG Investment]. Please go ahead. Yeah. Good afternoon, sir. Just wanted to know, any plan to get into CDMO business? Not as of now, sir, but maybe in the future. Okay. You may go on. You are not ruling out this possibility. If that be the case, then how do you see the growth potential in your existing business of research and testing? What are the growth potentials you see for the next few years? CDMO business is actually quite vibrant. Not CDMO. No, no. I'm not talking about CDMO. I'm not talking about CDMO business. Now, you end up now, there are no plans to get into CDMO. My next question is, what kind of growth potential do you see into your existing business of research and testing? I think we have been growing at a healthy CAGR during the last five years, and we hope to continue that. We want to give it a push because we have a goal to achieve this this year. I think year on year, if you are growing at that rate of 15%, anywhere between 15%- 20%, then you're growing at a speed that is double of the industry. That's a good growth rate to target. Yeah, definitely, it is a good growth rate. There are enough headrooms for that, and there is a good visibility for that. Am I right? Yes, yes. Okay. Okay. Thank you very much. Thank you. You're welcome. The next question is from the line of Pujan Shah from Molecule Ventures. Please go ahead. Thanks for the opportunity. I wanted to understand, first of all, on the clinical trial. We provide this service for Phase I to Phase IV. How are unit economics for sure? Major spend or the major cost will be involved for the Phase I trials. Eventually, as and when the molecules get developed, our margins and the real contribution to the expense decreases. Is that understanding correct? Major chunk of profitability comes when we provide clinical trials III, IV, and initial expenses would be much more higher compared to the Phase III, Phase IV. The margins for each trial actually vary significantly depending on the therapeutic area of the trial. We know this in theory. We are yet to experience. The first trial that we have done was a complex therapeutic area, and therefore, the margins were good. In the upcoming days, the trials we are open to do any kind of trial. Right now, our focus would be to build a track record in delivering good trials for our customers rather than focusing on the margins because you'll have to compete at whatever the market prices are. Got it. In the biological segment, which you are planning to focus, how are unit economics for us? As you know, the biologic segments are much more crucial and have a deeper understanding compared to the regular trials. Can you just break up into unit economics or the expenses versus the revenue contribution? How will it happen? How will the split be there? If you can explain in a much more broader sense. That's true in a nitty-gritty sense. That's also competitor-sensitive information that I would not like to disclose. Oh, sure. Thank you so much. That is from my side. Thank you. The next question is from the line of [Rohit] an individual investor. Please go ahead. Mr. [Rohit], your line has been unmuted. Please go ahead with your question. As there is no response, we'll move on to the next question. It's from the line of [Sagar] an individual investor. Please go ahead. Thank you for taking my questions, and congratulations to you and the team on a very good set of results. I have two or three questions. One is, I mean, a little bit more color on the CapEx. I was a little bit confused. INR 90 crore, is that CapEx for the current year? What is the breakup for CRDMO and the other CapEx and the CapEx of the GMP to food lab, ma'am? I mean, whether it's stabilized operations? Thirdly, would you be comfortable to say, based on the CapEx that we've completed, the company's turnover can double from here in the next three years? That's it from my side. Thank you. Double in three years could be fair. Given the opportunities, why not? I would say that's a possibility. The other thing was on GMP to food lab samples. Yes, they have stabilized. They meet our expectations. Coming to CapEx layout for this year, it's around INR 100 crore is what we have declared, 30% of which will be for the contract research and development services set up for biologics. The rest will be CapEx either to buy new equipment or replace existing equipment. Also, like I was mentioning a little earlier, we are investing quite a bit on digitizing and automating our processes. Some expenditure is expected even in that direction. Thank you so much. All the best. Thank you. Thank you. The next question is from the line of V.P. Rajesh from Banyan Capital Advisors. Please go ahead. Hi. Thanks for the opportunity and congratulations on a good. I just wanted to follow up on the EBITDA question. If we look at your margins, basically, one percentage point is roughly around once a year. Given the growth that you are expecting in this year for the rest of the quarters in next year, wouldn't it be possible to hold on to this 35% margin? We are going to try, but it's going to be a little challenge. Like I said, the new technology has come up. It requires maintenance. It requires people to maintain, and also, prices are not going off in the market, but the cost of human resources is increasing year on year. I'm not able to predict for several years ahead. In the next few years, we can see a little compression at the EBITDA level. Like I said, what Vimta is having are, I would say, to the best of my knowledge, they are very good EBITDA margins, even if you compare with the global leaders. Even if it is a point or two reduction at EBITDA level, it is still very good, I would say. Yeah, that's what you mean by excellent margins. I was just trying to understand the interplay between your increase in revenue and the ability to absorb the additional costs against the growth. Anyhow, all the best, and thank you. Thank you. The next question is from the line of [Vijay Varezha] an individual investor. Please go ahead. Hello. Am I audible? Yes, sir. Please go ahead. My first question was, what is your perspective on the competitive intensity within the CRO industry, particularly when we see companies like SinghGen and Nidha Clinicals generating a significant portion of their revenue from exports, whereas exports contribution in our business is around 30%, as I understand? Further, as per my understanding, research is primarily conducted abroad, while manufacturing is done in India. Given this dynamic, what are your thoughts on our position as a CRO in this context? My second question was, in earlier calls, you mentioned that LCGC is our vendor. Can you please tell what kind of services we take from them? Okay. LCGC is a vendor for several things, right, from laboratory agents to laboratory furniture. They have multiple things to offer. Coming to SinghGen and Nidha, they have very different business models. Yes, we have some services that overlap with theirs, but it's not a like-to-like comparison. Your comment on whether a lot of manufacturing is done in India versus R&D depends on what type of R&D. The preclinical research, both the U.S. and European markets, and even other countries, are quite open to outsourcing them. Vimta, India is an attractive destination. Likewise, clinical research, given our huge population and the strengthening of regulations, clinical research also, India is a good destination. Manufacturing is picking up offload, but the trend to outsource different kinds of research and testing activities to India from overseas is not uncommon. It has been growing over the years. Okay. Okay. Thank you. Thank you. The next question is from the line of Aditya Chheda from InCred Asset Management. Please go ahead. Yeah. Hi. The export revenue was by almost INR 50 crore this year. What would be the key growth driver there? Pharmaceutical services, mostly on the preclinical side, and a little bit on the clinical research and CGMP analytical services as well. Does this involve a new client or a dedicated center for a new big pharma, or is this a normal course of business? There is a combination of different varieties of relationships that we have with our customer partners. Got it. Okay. Thank you. The next question is from the line of [Avinish Verman]. Please go ahead. Yeah. Hi. Good afternoon. Thanks for taking my question. This is a question on tariffs. I mean, assuming there is some tariff levied on the pharma sector, I just wanted to understand, like, how does that cost get passed on into the supply chain? I mean, do you absorb it, or do you pass it on completely to the customers, or is it like a negotiation where partly you absorb it and partly the customer absorbs it? That's one part. The second part is, since your clients are both generic and innovator companies, do your conversations differ when you're talking to a generic company regarding this versus an innovator company? The number of innovator companies that would be impacted by any high tariffs on India, I think, are negligible. Conversations differ out of pocket. Coming to who will absorb the increase in tariffs imposed by possibly U.S., very difficult to, you know, answer that question. It's hypothetical. It's not happened. I think we'll take it when it happens. Okay, ma'am. What did you say about the innovator companies? Can you please repeat that? I'm saying that's what you were, I think, asking—what is the difference in conversations we are having with innovator versus a generic. How many innovator companies are there in India? Okay. The innovators, companies that are your client, are these, like global MNC pharma players, right? They're not necessarily MNC. They could be MNC, but we also work with virtual companies or small companies. The size doesn't matter for us. Okay. Understood. Thank you. Thank you. A reminder to all participants that you must press star and one to ask a question. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question is from the line of Ajay Surya from Niveshaay. Please go ahead. Thanks for the follow-up. Ma'am, as I look at our domestic revenue compared to last year and last couple of years, it has more or less remained flat or has decreased a bit. If you can highlight, going forward, how do we see this trend? Because pharma and testing on the domestic end has been doing significantly well, whereas our revenue has showcased that. I think there's a different way of looking at this. There is no big growth in the domestic business. It has not grown at the pace at which the export business has probably grown. That's because our business in India has reached a mature level. We are working with a lot of customers here, whereas there's a lot more market to address when you go overseas. I don't think we should look at this with any negative connotation. Okay, ma'am. All right. That's it. Thank you. The next question is from the line of Pujan Shah from Molecule Ventures. Please go ahead. Hi. I'm into the electronics division. I just wanted to understand what are the differentiation Vimta provides versus other testing facilities or other testing providers. What type of capabilities or advantages does our electronics company have to get tested by Vimta versus the competitor? Oh, I think, USP of Vimta is the infrastructure, EMI/EMC infrastructure that we have created. They're top of the line. We have procured them from the best manufacturers. The quality and precision of results that we give are highly reliable, helping our customers take accurate decisions on their product and also, very competently maybe trade, with respect to their product. The other thing is, like I was mentioning earlier, there was no other laboratory that was not attached to a government facility in Hyderabad. We came in, and by coming in, what we could offer is a rapid service. Normally, with government organizations, things are a little slow. We were able to add a lot of value to our customers. Right, ma'am. Okay. Even to understand this, the other thing, which is like the capability of the clinical trials, what we have and each capability which we have been already versus, the electronics segment would be much more into, you can say, more of the generic or a volume gain rather than there would be a qualitative aspect to be measured. Is that the right understanding to get it a breakup for the electronics versus the clinical trial segment? Yeah, electronics is definitely a volume gain. Do we have that for the context understanding, if, like, suppose for the next two years, there is a surge in the electronics testing industry, at what scale we can achieve, at what top line we can achieve from the current capacity of what we have done in the expanded capacity? That kind of forward statement, we have stayed away from. We don't give individual, you know, service-wise numbers. I won't be able to share that. I can tell you that there are good opportunities. So far, we have grown well in the electronics and electrical testing. Given that we are only three years old, I think we have already installed a second chamber, which shows that we have utilized the capacities well from the first chamber. I think these are all good indications. I just wanted to understand another aspect that once our electronics, let's suppose, equipment comes to the place, or let's suppose, for example, a company has developed a new product. It is being tested for each device, or it is being tested for the initial time when it has been launched just to have that certificate in place that these are the critical things which need to be measured. How does dynamics work on an electronics segment? There are both kinds of requirements. Some products, wherever there's a regulation, it's, I think, at the time of the release. I think there is some periodic testing interval also prescribed by the regulations. The other kind is for their R&D. When they're doing or developing their product, they are continuously testing these things to ensure that their product is of the desired quality and the safety. With respect to defense, depending again on the component, sometimes they insist on every component being tested. Different varieties of the testing requirements exist. Okay. Got it. Got it. Thank you so much. Thank you. Are there no further questions from the participants? I now hand the conference over to the management for their closing comments. Thank you. Thank you all for joining the call today. I appreciate all the questions that have been posed. It was a pleasure. Thank you all. Until next time, goodbye. Thank you. On behalf of Systematix Institutional Equities, we conclude this conference. Thank you for joining us. We will now disconnect the alarms.