Ladies and gentlemen, good day and welcome to the Akums Drugs and Pharmaceuticals Limited Q2 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0 on your touch-tone phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Ankit Jain from Akums. Thank you, and over to you, sir. Good afternoon, everyone. Thank you, Swapnali, for introducing me. Welcome everyone to Akums Q2 FY 2027 earnings call. I am Ankit Jain, and I head investor relations at Akums Drugs and Pharmaceuticals Limited. On today's call, we are joined by Mr. Sanjeev Jain, Managing Director, Mr. Sandeep Jain, Managing Director, Mr. Sumeet Sood, CFO, Mr. Davinder Dogra, Deputy CFO, and Mr. Sahil Maheshwari, Head Strategy. I will commence with our standard disclaimer that any discussion on today's call might include certain forward-looking statements, which are predictions or projections of future events. Our businesses face several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied in such statements. At Akums, we do not undertake any obligation to publicly update any forward-looking statements, whether as a result of any new information, future events, or otherwise. I hope you've had the opportunity to go through our financial results and review our investor presentation that was shared yesterday. I would now like to hand over the call to our Managing Director, Mr. Sandeep Jain, to discuss our performance. Thank you. Thank you, Ankit. Namaste, everyone, and thank you for joining us today for our Q2 FY 2027 and H1 FY 2027 earnings call. I am pleased to announce another quarter of strong performance by Akums, one of the world's leading pharmaceutical CDMO. The performance was driven by double-digit volume growth during the quarter. The revenue grew by more than 30% on year-on-year basis, and EBITDA more than doubled during the corresponding period. Even sequentially, the quarter-on-quarter revenue growth stood at an impressive 15%, and EBITDA increased by 11.5%. Led by strong order book and improved utilization of newer facilities, the CDMO business achieved a volume growth of more than 20% on September MAT basis, showcasing increasing penetration of our offering within the India pharma market. The improved performance is also an indicator of our resilience during times of global headwinds and geopolitical uncertainties. While the availability and the prices of input materials remain volatile, the demand outlook for CDMO remains strong. We today operate at healthy utilization levels of above 50%. During the quarter, we successfully integrated the two manufacturing plants acquired from Oriflame. With this, we have strengthened our beauty and personal care play as a fast-growing category in India. To cater to growing demand, we will operationalize a new facility at Baddi. The plant will have oral solids in phase one with an annual capacity of over 6 billion units, which will fully operationalized by Q1 FY 2028. With this plant, we will have two plants in Baddi, in line with our stated objectives of geographical diversification. We remain steadfast on expanding as well as deepening our global footprints, with special emphasis on regulated market. We have two products approved in Europe, eight filed, and over 30 in R&D, which we expect to commercialize over next three, four years. Our two facilities are EU GMP certified, and few more are in pipeline. Our European CDMO project is progressing as per our stated plans, with supplies commencing in FY 2028. Our JV with the Zambia government is also progressing smoothly, with commercialized supplies from the Indian plant scheduled during Q4 FY 2027. And considering the prolonged shipping time to Zambia, we expect to book revenues during Q1 FY 2028. The process for setting up the plant in the Zambia is well underway, with technical discussions already complete. The plant is expected to become operational in 2029, expanding our manufacturing presence outside India. Our domestic branded formulation segment had a steady quarter with 8% year-on-year growth in revenue and marked improvement in profitability on a sequential basis. We expect the segment to deliver growth on par with IPM by FY 2028, as the current initiatives start bearing fruits. Our international branded formulations business saw growth, accelerating growth on year-on-year and quarter-on-quarter basis. It is expected to maintain this momentum going forward in the year and will be key engine to drive Akums' growth. API segment continued on its journey towards becoming EBITDA breakeven as our endeavor continued. The trade generic segment remained EBITDA positive during the quarter, with the third straight quarter of achieving profitability. Sustainability is core to Akums in whatever we do. We are proud to announce that our company has an EcoVadis Bronze Medal, we are on our journey to be among the top global companies focused on environment, labor rights, ethics, and sustainability. We also won the Water Management Champion Award by CII for green practices. We also successfully transitioned to S/4HANA this quarter. This will provide real-time analytics across key business performances indicators. With number of initiatives underway, we remain confident in our ability to create long-term shareholder value and delivering positive results. I shall now request our CFO, Mr. Sumeet Sood, to take you through the detailed financial for the quarter. Over to you, Mr. Sumit. Thank you, sir. Thank you very much. Good afternoon, everyone. I am pleased to present the financial highlights for the quarter 30th September 2026. Revenue on a consolidated basis stood at INR 1,342 crores, an increase of 31.9% year-on-year. Q2 FY 2026, it was INR 1,018 crores, an increase of 15.1% quarter-on-quarter. Q1 FY 2027, it was INR 1,167 crores. EBITDA for the quarter stood at a healthy INR 195 crores, a multifold increase of 106% year-on-year. Q2 FY 2026 was INR 94 crores, an increase of 11.5% quarter-on-quarter. Q1 FY 2027 was INR 175 crores. Margins were healthy at 14.5% as against 9.3% in Q2 FY 2026 and 15% in Q1 FY 2027. EBITDA with other income stood at INR 224 crores, an increase of 76.3% year-on-year and an increase of 9.1% quarter-on-quarter. Profit after tax stood at INR 115 crores, an increase of 168.3% year-on-year. Q2 FY 2026, it was INR 43 crores, an increase of 13.5% quarter-on-quarter. Q1 FY 2027, it stood at INR 101 crores. If we come to the segment-wise performance, if we look at the CDMO revenue, it stood at INR 1,115 crores, an increase of 38.6% year-on-year, an increase of 15.6% quarter-on-quarter. The revenue growth, as explained by Sandeepji, was largely driven by healthy increase in volumes. EBITDA for the quarter for this business stood at INR 168 crores, an increase of 99.6% year-on-year. For Q2 FY 2026, it was at INR 84 crores, an increase of 2.9% quarter-on-quarter. Q1 FY 2027, it stood at INR 163 crores. Domestic branded formulations revenue stood at INR 132 crores, an increase of 8.2% year-on-year, an increase of 14.4% quarter-on-quarter. EBITDA for the quarter stood at INR 24 crores, a decline of 8.9% year-on-year. Q2 FY 2026, it was INR 26 crores, an increase of 103% quarter-on-quarter. Q1 FY 2027, it was INR 12 crores. For the international branded formulation, revenue stood at INR 44 crores, an increase of 95.2% year-on-year. Q2 FY 2026, it stood at INR 22 crores, an increase of 26.7% quarter-on-quarter. Q1 FY 2027, it was INR 35 crores. EBITDA for the quarter was at INR 9.9 crores, an increase of 80.5% year-on-year, an increase of 43.8% quarter-on-quarter. If we look at the API, the revenue stood at INR 29 crores, a decrease of 35.3% year-on-year. Q2 FY 2026, it was INR 44 crores, a decline of 9.1% quarter-on-quarter. Q1 FY 2027, it stood at INR 32 crores. EBITDA loss was slightly higher in this quarter, which is 5.7%, while significantly lower than Q2 FY 2026, INR 14 crores. However, higher than Q1 FY 2027 at INR 3.9 crores. We continue to focus on higher gross margin products and expect the full year losses to be lower than last year. If we come to the trade generic business, the revenue stood at INR 23 crores, a decrease of 5.4% and an increase of 10% quarter-on-quarter. EBITDA for the quarter stood at INR 1.2 crores. Our balance sheet continues to remain healthy, and cash and cash equivalent, as has been constantly increasing, stands at INR 1,608 crores. The company had a free cash flow for H1 of INR 45.5 crores after account for business acquisition, driven by healthy operating cash flow to EBITDA at a ratio of 69.2%. Based on the above, we conclude the financial highlights for the quarter. We would request the moderator to open the forum for question and answer session. Thank you. Thank you, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and then 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all the participants, you may press star and 1 to ask a question. We have the first question from the line of Saksham Tyagi from Desvelado Advisory. Please go ahead. Hello, am I audible? Yes, you're audible. Okay, thanks for the opportunity, sir. My first question was that, I just wanted an update on the Europe and Zambia business. How is it going and where do we stand currently? In the previous phone call, you mentioned that you expect the Zambia business to deliver a revenue of $25 million. I just wanted to know what is the progress so far on that? Sure. This is Sahil, Saksham. Both the businesses, as we have been telling, both are businesses which are well with us, right? These are confirmed businesses. I will first take Zambia because that is closer to delivery. Post the mid-year elections or the president where the current regime was re-elected, soon after it, we went into discussing the purchase order, and we have now received the purchase orders. We are in process of now supplying the purchase orders, which we think, post the manufacturing lead time, we should be able to supply them in Q4. Since this, like most of our CDMO is ex-works, right? So in our factory, once it leaves our warehouse, we book the revenue, ex-works. Here, we have to deliver at Lusaka warehouse of the Zambian government, right? The shipping timelines from Haridwar, from where we will mostly manufacture, to Lusaka in Zambia is roughly 100-120 days. While we will dispatch the goods in Q4, which will be as a goods in transit in our financial accounts, we will be able to book the revenue once we have a delivery, which will be in Q1. So the business is, as you rightly said, $25 million fully intact with the margin profile, which are slightly better than our CDMO margins, right? So that all remains consistent. Subsequently, when we deliver this, we will again have a discussion on the another $25 million round of supplies committed by the government of Zambia. That is on the Zambia business. On the European business, as we said, we have compiled the dossier. The dossier has been filed. While it is up to the regulator, we believe that it could take one or two quarters by the time we receive the approval of the dossier. The plant has been already approved from where we will do the commercial supplies. Once we have it, the dossier approved by the European authorities, we will go to our partner and then get the purchase orders for it. Maybe in one quarter time, we will be in a more better position to tell you on the when we start the supplies for the Europe. But as I said, both of these businesses are confirmed well within our reach. Okay, sir. Understood. That's it. My second question is on the setting up of Baddi facility. What's the current status and how much CapEx is it going to take to establish the facility? Sure. Baddi, which is a second plant in Baddi, which the MD sir also mentioned in his opening remark. This is a large facility which we'll commission. In the phase 1 of it, we will start with oral solids. This will be 6 billion tablets. We largely have 50, 51 billion annual capacity. This is 6 billion on top of it, which is oral solids, which we'll have across various forms of tablets. Then we'll have another phase of it which will contribute another 6 billion odd tablets from it. We'll have roughly 12 billion tablets from this facility. Apart from this, we are also planning some other dosage forms within this facility itself. This will, as I said, this is a large facility, the phase 1 of which will be operational in the next 3, 4 months. Subsequently, the other phases of this. Broadly, this is what we'll do. On the CapEx, as we mature the facility, we will let you know. Broadly, what we have seen is our CapEx is usually what we do observe in oral solids, we usually have 3 times the turn in our gross block for the revenue. Okay, sir. How are you planning to fund that? Is it going to get funded internally, or you are trying to raise debt for that? We have the flexibility of raising debt, and we have our own funds. I mentioned during our presentation that the company sits on a healthy free cash flow. We will weigh our options of what is more beneficial. If the loans are available at lower the cost of our investment, we will take loans. Otherwise, we will liquidate our investments. Okay, sir. Understood, sir. Lastly, I just wanted to get an update on the API segment since its contribution to the overall revenue is just 2.1%. How are we planning to improve that, and by when can we expect to see a growth in that contribution? Sure. I think, as we said, one is percent of revenue to the overall business. While the CDMO is a fast-growing, we have seen 20% volume growth over four quarters now. The coming quarters also look healthy and encouraging. Then we will have Zambia, then we will have Europe, then all the efforts on the European. Can the percentage of API in the overall scheme of things dramatically move up? Not in the near term. The focus of the management over there is how do we curtail the losses. We are meaningfully driving it with improvement of our product mix as well as, by product mix I mean, removing products which have low gross margins and focusing on general products, which have better gross margins. Secondly, also the geographies which we sell. Today, almost 90%, 92% of our revenue comes from the Indian markets. We have two CEPs which are approved. Two more CEPs are in pipeline. Also, we have our EDQM, which is a European audit, which we conducted. For which we expect to receive an approval. All of those things will help us diversify the products as well as diversify the geographies. Based upon which we see that in the next few quarters, we should achieve a break-even in this segment. Okay. Do we have any rough timeline by when we can expect this, there is an improvement of the contribution of this API segment? No timelines as of now. I think consistently around, you have seen the numbers, roughly INR 5 crores plus minus one is roughly what we bleed as on today. But the endeavor is that over the next three, four quarters, we should be break-even in this segment. Okay, sir. Thank you very much and all the best for the next quarter. Thank you. Thank you. We have the next question from the line of Abhi Jain from AJ Capital. Please go ahead. Hi, good afternoon. Hope I'm audible. Yes, you're audible, sir. Congratulations on a good set of numbers, sir. My first question is that just in terms of the H1 FY 2027 revenue and EBITDA, I wanted to understand, what part of it was recognized against the 100 million advance that you have, including product development revenue under the input method? And what will the cash and non-cash split of European revenue be like in between FY 2028 to FY 2030 when this realization, when the revenue realization starts coming in from the business? So, let's first come to the accounting for the European contract, right? So, the revenue recognition starts happening at the time when we have the dossier approval, right? So typically, if the plants are approved and the dossier is approved, then the revenue gets recognized, right? The pre-preparation for this is the capital investment in the plant, trying to do the work at the R&D centers to have a quality product, and then you start revenue recognition once you have your plants ready. This will more be a composite accounting because you'll first have to look at how much is already spent on those endeavors, and then how do you spread it over the contract period. This is slightly complex because you're also earning interest on the money that you've got, right? While you see in our balance sheet, there's a notional interest cost also. So, largely the revenue starts kicking in mostly from the time when you start supplying, and the revenue gets recognized at the time when you get your approval. So, you will probably see an abnormal revenue coming when you get your plant approval. So typically, that's how the revenue recognition will happen. Okay, so if you have anything else, I'm happy to answer. Okay. No, so just building on that, so as of now, in the H1 figures, we don't see any impact of this- No, no in the P&L. My second question builds on that. Sorry. Yeah, I said there's nothing that's built on that front. All right. Okay. All of that is sitting in the balance sheet I am assuming right now. My second question builds on that only that the interest income is about 20% of the PBT, and I think it is on the advance. What happens to other income and to OCF as the deposits are used FY 2028 onwards when this commercialization starts kicking in and coming in the P&L? What typically happens is that because you have got an advance, right? The advance will be proportionately used over the contract period. Let us say if the contract is for 60 months, right? You will probably have the advance, which is the 80 million, which is left of the first 20 million. That will probably get set off, and the remaining money will start coming in with the supplies, right? This has to be proportionately done. As I said, it is a detailed working. Once we have the approvals, we will have those clearly spelled out in the notes of the balance sheet that we will have. Right, sir. I understand that. Lastly, sir, just a hygiene question. Just wanted some update from the management on this, 158BC show cause notice that was there for the FY 2019 to 2025-year period. Any update that you can provide to the investors and potential investors about what amount is in dispute, and have you made any provision in the balance sheet or for that? No. This is the NPPA disclosure that we made is what you're talking about, right? Yes. Yeah. If you look at the disclosure, we clearly mention that we are doing job work for a marketing company, right? In the disclosure, we clearly mention that the contract with that company states that anything that comes which is on account of NPPA or others is not our liability. Because the way the notice was issued both to us and them, as per the LODR, we are supposed to make a disclosure. We do not have any financial liability. It's clearly mentioned over there. All right. No provisioning for the- No provisioning. Nothing at all, sir. Nothing at all. All right. That is it from my side, sir. Thank you, and all the best. Thank you. Thank you. Thank you. We have the next question from the line of Meet Bhuva from Integrity Ventures and Partnerships. Please go ahead. Yeah. Hi. I have a couple of questions. My first question is on the CapEx plans of the company. Can you please give some numbers on how much CapEx you will be doing in the next three years annually? The historic numbers are there in the financials, but for H1, because we, as Sahil was just mentioning, and Sandeepji mentioned about the Oriflame acquisition, and there has been an investment in the Baddi plant of around 43-odd crores. Oriflame deal, which was in public domain, was of around INR 56 crores. For this quarter, as I mentioned, there is an investment of INR 210 crores. H1 total is INR 210 crores that we made. We historically have been around a number of close to INR 300-odd crore. We see this slightly higher this time because we are debottlenecking, and we have acquired this plant, and there may be some small investments further required at some of our plants, as I keep mentioning, that on a gross block of 2,400, if we are spending 5% on the maintenance CapEx, INR 100 crore gets into the plants, right? There has been a small investment in our HANA also. That's about it. Got it. On the growth side of domestic branded and international branded, do you guide any growth numbers for the coming years and the margin size? While we don't specifically call out any guidances on any of our business verticals, the general tone is both of the businesses are performing fine. You have the international business segment, which is one of our focus business segments as we diversify from Indian markets, not just in the core business, core geographies which we are currently present, which is Africa and Southeast Asia. The intent is can we also move beyond into the further regulated markets across Latin America, Middle East, as well as Europe? This is a business which we continue to do, and it's a high EBITDA business which we do. The second is the domestic branded business, where we today are largely strong in gynae, followed by cardiology. These are the two business segments that we focus on. We today have almost 1,600 people on ground. We recently added people, as we mentioned in our last call. We have grown roughly 8% year-on-year in this business, and the endeavor is how can we maintain an 8%-10% growth in this business as well, with continued improvements in PCPM and profitability. This is how we look at these two businesses which form integral core part of our Akums group, which have a better EBITDA profile than the core manufacturing business. Got it. Thank you so much. That's it from my end. Thank you. A reminder to all the participants, you may press star and 1 to ask a question. We have the next question from the line of Divya Daga from Vijit Global Securities. Please go ahead. Hi, sir. I have a couple of questions. First, can I know the contribution in revenue and PAT from Oriflame? Sure. Let me explain this. Oriflame, we bought it at around INR 56 crores, right? This is again, as I was mentioning to an earlier question, we expect that peak should deliver a 3x revenue for us, right? As we said, we are entering into color cosmetics, so we are building up revenues. We also have some existing manufacturing revenues that would also come in from Oriflame, right? So, this year largely is a period where we will build upon customers and revenue, and gradually this business in couple of years should start meaningfully contributing. What was the contribution on PAT level from Oriflame? Negligible. Negligible. My next question is, as our Baddi facility CapEx happens, I want to know how much contribution in top line will be there from it, and when will it start? Baddi, as I said, will gradually, in three phases, operationalize this facility. If we speak about it, this facility should deliver at least 10%-15% of our CDMO business in 3 years from now. This is how we look at this business. Okay. My last question is, as I can see throughout Concall, there is some delay in Zambia's execution, I guess. Execution is on track. This is what we are mentioning is since there were mid-year regular elections for the president's post, which you would understand, we could only get a government contract post which. Then it was extensively fast-tracked. We received, discussed, negotiated the purchase orders, the quantities, the pricing, post which we have now received it. It is within our bag. We are in process of procuring the raw materials, then manufacturing it, which will take 3 odd months for us to do. Once we do it, we will ship it, which will again take 3-4 months. We will dispatch it in Q4, book revenues in Q1. Okay. Is there any target for this year's top line? How much are we going to As you mentioned, right, this year we do not expect top lines from Zambia to come. Of course, but in general, overall top lines. No, we do not give very specific guidances on this. The business remains healthy as we have discussed all the business segments, right? So the businesses remain healthy across all. Okay, sir. That is all I have. Thank you so much. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address all the questions from the participants in the question queue, we request you to kindly limit your questions to two per participant. If you have a follow-up question, please rejoin the queue again. We will take the next question from the line of Manoj Gupta from Prasand Capital. Please go ahead. Hi, ma'am. Thank you for the opportunity. Am I audible? Yes, you're audible, sir. Right. Thank you. That's some great set of numbers, sir. A couple of questions from my end. I see that our CDMO revenue has gotten a revival through the last two or three quarters. I just wanted to get an understanding of which therapeutic area specifically has driving this growth of ours. I mean, is our portfolio tilted heavily towards anti-infectives, cardiac segment? If you could share some light on that, please. So, right. So, I correct. It has been performing well for the four, five quarters now. On the therapy segments, we are largely a contract manufacturer, right? So, what matters to us is whether it is an injectable, is it a vial, is it a tablet, is it an oral liquid, right? Therapy has little meaning for us in one sense, right? Also, since we almost have a 10%, 11% market share within the Indian market as an overall, right? So we broadly mimic the market in a way, right? So our large contribution would be therapies which are large in the Indian market only, and similarly would be our contribution across the unit dosage forms, right? So, to answer your question, we do not have any tilt towards any therapies, skewed towards any dosage forms. We largely have a fair share as it is there in the Indian market. Understood, sir. Is there any specific tailwind that is helping us increase the volume in our CDMO business for the last two, three quarters? I understand that, of course, the IPM has been growing well as well. We have had record volume growth this quarter. So I just wanted to get some understanding on what is driving the volume growth in our CDMO business. While we did a deep analysis into this, right? So for the last four quarters, year-on-year, we have been for every quarter delivering almost a 20% volume growth now, right? Right. This is across existing as well as new customers, right? Existing also are running well. This is across our prescription-oriented customers, our private label customers, right, regional customers, right? So this is something which is as a basket in the whole IPM we are seeing a growth on. On top of it, since we have added cosmetics, our Nutra facility is also there, right? So beyond pharma as well, we would soon show growth, right? So, that is what I wish to submit. Got it, sir. For our domestic branded formulation business, I believe you have been guiding for about double-digit volume growth for the past two or three quarters. However, when we look at our top-line growth in the segment, it has been about 7%-8% for the past two quarters. Are we facing any challenges or headwinds that are preventing us from going in double digits? Also, if you can share the current PCPM of your domestic branded businesses sales force, that would be great, sir. Sure. Once maybe, we always would have guided volumes on our CDMO business, right? Individually, for marketing business, we do not guide volume growth. But you are right, our growth has been a single high digit, 8% to odd percent that we do. This is what we think will remain as we speak, right? Near to the IPM is what we think our volume growth will be. Specifically on PCPM is roughly 2.5 for us, right? As I said, we have gynae, which is our most important therapy, almost 40%-45% of our revenues come from gynae, where we have three divisions which are mature divisions, where the PCPM is almost above 3.2, right? Then we have cardio, which is our large division. We have, as I said, had 200 new field force members joining us in Q1, which have dragged overall Akumentis PCPM down to 2.5, but the endeavor obviously remains how do we have a better physician connect, launch better products. In the market, and subsequently, as the divisions mature, how can we achieve a PCPM above three? And sir, have we seen any improvement in our PCPM sequentially for the last two, three quarters? So, as I said, we have had new 200-odd folks, which has temporarily resulted in a dip, but the mature division still operate at a PCPM above 3, which over the last 3, 4 years has meaningfully increased. If you would go through it has sizably increased. Understood, sir. Also, sir, in the prior quarters, we had discussed that you were working on some first-to-launch products. Is there any update on the same? You said fast launch products? First to launch. In some niche markets we- These are within the CDMO businesses, as we would have communicated. That is right, sir. We have DCGI approvals, right? We usually get almost two to three DCGIs every month, right? Which takes our tally to almost 30-odd DCGIs annually. Right, so these are the products which are early in the market, maybe first, second order here in the market who would have received it. And that always remains our focus, right? R&D, if you see, is upward of 3% of our CDMO revenues investment, which flows into, a part of it flows into these new launches. Understood, sir. That is all from my end. Thank you. Thank you. Thank you. A reminder to all the participants, we request you to kindly limit your questions to two per participant. If you have a follow-up question, please rejoin the queue again. We have the next question from the line of Axay Shah from VVD Asset Managers LLP. Please go ahead. Thank you for the opportunity, and heartiest congratulations for excellent exhibition in CDMO business, sir. My question is that, can you give some highlights on how the API prices are moving right now, and how is it expected to move in next 6 months? Sure. API prices have gone up, right? If you really look at it quarter-on-quarter, these have moved roughly 2%-3%, while if we compare it to last quarter two, these would have moved up by 5%-7% as a basket, right? This is on the API prices. While one can only guess, these are mostly traded as commodities, right, and extensively depend upon the input material costs, which is basic materials and KSMs, and also depend on husk and solvents, right? These prices have also gone up dramatically. We expect there should be some slight upward movements only in the API prices, at least in this quarter. That's how we view the 2, 3 months. Subsequently, we'll see how the quarter four or January onwards the pricing will look. But as of now, this is on a slight upward trajectory only. Okay, sir. And sir, I see that your CDMO business has grown roughly 35%-39% in terms of revenue, and you say that the API prices have moved by 5%-6%. Volume growth is more than 20% in that case? Yes. As I also mentioned in my earlier call, for the last four quarters, every quarter year-on-year, compared to the previous quarter last fiscal, we have grown above 20% in our volume. Can you share what was the volume growth in this quarter, Y-o-Y? Broadly, this is above 20%. Month-wise as well as quarter-wise, this should be above 20%. Okay. Thank you so much. Thank you. We have the next question from the line of Praveen Jayaraman from Avendus Spark Institutional Equities. Please go ahead. Hello, am I audible? Yes, you are audible. Yeah, thanks for the opportunity. Sir, my first question would be on the R&D side. What would be our R&D expense as a percentage of our top line, and what would be a steady state R&D expense? This is broadly 3% of our revenues. We largely do roughly INR 130-odd crores in our R&D, right? The whole endeavor for R&D is how can we have good products identified, researched upon. As we move into the regulated markets, we expect this R&D expense also to move up, right? But broadly, 3-odd percent, 3%-3.5% is something from the CDMO revenue that we expect to reinvest into quality pipeline assets. What would be the manpower behind this, sir, in terms of count? We broadly have 375 scientists and roughly 100-odd people who support the R&D, apart from scientists, right? So that is broadly our pool of R&D manpower. Sir, in terms of the major contracts which we speak upon, be it the European one, which will be the upcoming ones, do we have a big similar contracts in pipeline which we are working on, which would be the upcoming ones in the near future, which we could end up on? There is nothing which we have disclosed as of now, right? I will rest over here. While the endeavor always remain how do we grow the business, there is nothing which we have disclosed as of now. Most of my other questions are answered, sir. Thanks for your time. Thank you for the opportunity. See you. Thank you. A reminder to all the participants, you may press star and 1 to ask a question. We have the next question from the line of Sangeeta Purushottam from Cogito Advisors. Please go ahead. Yeah, hi. Good afternoon. Can you hear me? Yes, you are audible. Okay. Firstly, congratulations for a great set of numbers. I had two questions. One is that as far as the CDMO business is concerned, what should we take as an outlook in terms of growth for the rest of the year as well as for next year? If you could give some color on that. The second question is on the domestic branded formulation business. If you could give us some sense of what is actually happening there, why is it that we have seen a dip in the EBITDA? Are there any challenges that you are looking at which are likely to get resolved going forward? Just some color on what is happening there and what are your expectations for this business? Sure. I will address both. First is on the CDMO side of the business, right? Our top line is governed by two things, volume and price, right? Yeah. As I just mentioned, price is on a slight upward trend, but we really don't know how the long-term trading of the API prices would look like. On the volumes, as of now, as I said, we have seen multiple quarters where the volume growth was significant, and we have a 60-odd day of order cycle visibility. For the current quarter as well, we see good traction in our penetration in the CDMO services. The volume growth still continues to remain healthy. As we progress, we'll be able to tell, but there is no reason why to believe that the volume growth will not be there in the IPM market. Correct. That's there on the CDMO segment. On Akumentis, if you really look at on the gross margin level, this has continued maintaining a 74%-75% gross margin business. Most of our EBITDA drag was due to an investment into the manpower. We broadly moved up from a 1,400 MR count to a 1,600 MR count, on top of which there is a 450 line manager across first, second, and third line managers. Okay. The idea today is, since it's a growing business, it's a sub-INR 500-odd crore business. We today are almost 56th, 57th odd rank in India. Yeah. The whole idea is how can we further grow this business vertical? We are investing into our manpower, we're investing into launching new products. Our new product launches almost contributed half of our growth. These are the initiatives which we are taking from a long-term vision of how do we see this company three or four years down the line. Hence, we are doing all the right initiatives which will help us grow this business. Not specifically looking at quarter-to-quarter, whether it was INR 10 crore, INR 12 crore, 24-odd crore EBITDA. Right. The investments are going into manpower, which I would like to say. Okay. If I can just squeeze in a related question, how do the trade generics then fit into the picture? What do you expect from that business? Trade generics was, if we had to just have a historical flavor onto it, trade generics was a key business segment for us, which at one point in time even contributed above INR 400-odd crore for us, right? Right. It had two major challenges. One was there was a huge working capital cycle which was involved in this business, and secondly, the margins were not supportive of driving this a long-term growth, right? We decided to prune down this business, which was well stated as our objective for FY 2025, and subsequently in FY 2026, we also had time where we reduced the EBITDA losses. This quarter, for the last three quarters, right, we have been doing it. Now, what we have done is, trade generics, we will also have to appreciate is, that there might be an opportunity in the future where trade generics get sizable momentum, right? Right. There have been talks around that you would have discontinuation of branded play, right? You had talks around tier 3, tier 4 geographies where the supply network would be built around the resilience in supply chain. All of this, right? Right. We have kept pockets of the businesses which are profitable, right? Extremely lean structure. If you see, the idea is not to lose money over there, but to keep Right a foot in the door that if any time this business becomes a meaningful opportunity, we still have distributor connects, products in the shelf of the chemist, and also some lean field force which will help us grow this business. That is where the group today thinks is we are not losing money. It is not asking us to employ more capital, and hence this is the current state of our ambition with these businesses. Okay, lovely. Thank you. Thank you very much. Ladies and gentlemen, that was the last question. With that, we conclude the question and answer session. I now hand the conference over to Mr. Ankit Jain for the closing comments. Thank you everyone for attending the earnings call for Akums. If you have any remaining questions, you can reach out to the investor relations team. Thank you and have a good day. Thank you very much. Thank you very much. Thank you members of the management. On behalf of Akums Drugs and Pharmaceuticals Limited, we conclude this conference. Thank you everyone for joining with us today, and you may now disconnect your lines.