Ladies and gentlemen, good day, welcome to the Q4 FY 2026 earnings conference call for Alivus Life Sciences Limited, formerly known as Glenmark Life Sciences Limited. As a reminder, all participant lines will be in the listen-only mode, 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 zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Soumi Rao. Thank you, over to you, ma'am. Good morning, everyone. I welcome you all to the earnings call of Alivus Life Sciences Limited for the quarter and financial year ended March 31st, 2026. From Alivus Life Sciences, we have with us Dr. Yasir Rawjee, our MD and CEO, and Mr. Tushar Mistry, our CFO. Our board has approved the results for the quarter ending March 31st, 2026. We have released it to the stock exchanges and updated the website. Please note that the recording and transcript of this call will be available on the website of the company. Now I'd like to draw your attention to the fact that some of the information shared as part of this call, especially information with respect to our plans and strategies, may contain certain forward-looking statements and involve risks and uncertainties. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and which could cause actual results to differ materially from these statements depending upon the economic conditions, government policies, and other incidental factors. Such statements should not be regarded by recipients as a substitute of their own judgment. The company undertakes no obligation to update or revise any forward-looking statements. Our actual results may differ materially from those expressed in or implied by these forward-looking statements. With that, I invite Dr. Yasir Rawjee to say a few words. Thank you, and over to you, doctor. Soumi, thank you. Good morning, everyone, and welcome to our Q4 and FY 2026 earnings call. I am pleased to share that this year marks an important milestone in the journey of Alivus Life Sciences as we complete two full-years with Nirma as our promoter. During this period, we transitioned and strengthened the foundation of our business as we position the company for its next phase of sustainable growth. The partnership with Nirma brought enhanced financial strength, long-term stability, and greater flexibility to invest in future growth opportunities. Our focus on building a more diversified and resilient business model remained while we have accelerated strengthening our product portfolio, expanding capabilities, and steadily improving the overall quality of business. During this period, we have faced some headwinds like uncertainties around tariffs and regulatory shifts. These factors continue to disrupt supply chains, elevated logistics and energy costs, and created uncertainty across global markets, making resilience and agility increasingly critical. Despite these challenges, Alivus has not only navigated this environment successfully, but has also meaningfully improved the quality of its business. This is reflected in the strong and consistent performance of our non-GPL segment, whose contribution to the overall business has steadily increased over the years from 59% in FY 2022 to 71% in FY 2026, thereby reducing our dependence on the GPL business. This growth reflects the increasing diversification of our portfolio and geographies supported by robust demand across regulated markets and sustained momentum from new product launches. We expect the contribution from the non-GPL business to continue to increase going forward. We also witnessed a meaningful recovery in the CDMO business from Q3 of FY 2026 as existing projects gained traction and newer projects scaled up. The improvement in the quality of our business is reflected in our profitability profile. We continue to improve our EBITDA margins and remain among the industry leaders in profitability. To add more perspective, between FY 2024 - FY 2026, our revenue CAGR stood at 5.7%, while EBITDA CAGR during the same period was 15.8%. In absolute terms, we approximately added INR 270 crores of incremental revenue over the last two years and INR 220 crores on the EBITDA side, taking our margins to 33.6%, the highest in our history. What is particularly noteworthy is that this improvement was achieved despite the loss of PLI benefit. This was driven by a favorable product mix, disciplined cost management, operational efficiencies, and an increasing focus on high-value differentiated products. As a result, we have consistently generated healthy cash flows, strengthened our balance sheet, and maintained a net debt-free position. Over the last two years, we have demonstrated the resilience of our operating model and the strength of our diversified portfolio. This has reinforced our confidence on the strategic direction we have taken as this steadily translates into a stronger, higher quality and more sustainable business. Moving to our full-year performance, our revenue for the year stood at INR 2,552 crore, registering a 6.9% year-on-year growth with the non-GPL business leading the momentum with 13% growth. This performance was supported by strong execution across markets, including Europe, Japan, LATAM, ROW and India. Growth was further aided by new product launches and the recovery in the CDMO business. We have added 11 new products during the year, and the current portfolio stands at 176 unique molecules. We have also added 49 new customers during FY 2026, taking our total base of customers to above 900. We deliver EBITDA margins of 33.6%, expanding by 360 basis points, highlighting the inherent strength and operating efficiency of our business. On the CapEx front, Solapur phase I is progressing as planned and is expected to be operational in Q2 of this year, while construction of the new R&D center in Taloja in Navi Mumbai is also underway. Our pipeline remains robust with over 611 DMF and CEP filings globally as on March 31st, 2026. The high potent API portfolio remains on the development path with 28 products in the pipeline. 12 of these products are validated, seven products are in advanced stages of development, and the remaining nine products are progressing well through lab development stages. Given the ongoing geopolitical conflicts and uncertainties around global demand, we continue to remain watchful of the external environment. However, we remain confident in the strength of our business fundamentals and our ability to sustain EBITDA margins in the range of 30%-32% going forward. With this, I now turn the floor to our CFO, Mr. Tushar Mistry, who will walk you through our financial performance for the quarter in depth. Over to you, Tushar. Thank you, Dr. Yasir. Good morning, everyone. Welcome to our Q4 and FY 2026 earnings call. Adding to Dr. Yasir's commentary, I would like to share a few insights on our performance over the last two years, particularly how our growth profile and profitability have meaningfully improved. Our growth has become more broad-based, and importantly, our dependence on any single client is gradually reducing. To illustrate these, while our GPL revenues have remained relatively stable over the past two years, our non-GPL revenues have grown at a CAGR of 7.5% during the same period. This shift in mix is also reflected in our profitability, with margins improving from 28% in FY 2024 to 34% in FY 2026. This clearly demonstrates the new business we are adding is more profitable and value accretive in nature. With ongoing CapEx and continued investments in new technologies and products, we remain confident in our ability to sustain this margin trajectory going forward. Now, I would like to highlight the key performance updates for the quarter and full-year ended March 31st, 2026. For Q4 FY 2026, revenue from operations stood at INR 689 crores, reflecting a growth of 6.11% year-on-year. Gross profit for the quarter was INR 418 crores, up 14% year-on-year. Gross margins for the quarter stood at 60.7%, up 420 basis points year-on-year, driven by new launches, product mix, and operational efficiency. EBITDA for the quarter was at INR 237 crores, up 13.8% year-on-year. EBITDA margin for the quarter was 34.4%, up 230 basis points year-on-year. PAT for the quarter stood at INR 163 crores, with PAT margins at 23.6%. For full-year FY 2026, revenue from operations stood at INR 2,552 crores, a growth of 6.9% year-on-year. Gross profit for FY 2026 was at INR 1,485 crores, up 13.7% year-on-year. Gross margins for FY 2026 stood at 58.2%, up 350 basis points. EBITDA for FY 2026 was at INR 858 crores, up 19.6% year-on-year. EBITDA margin was at 33.6%, which was up by 366 basis points year-on-year. PAT for FY 2026 stood at INR 565 crores, with PAT margins at 22.1%. Turning to the therapeutic mix, CVS and CNS continue to lead the growth during the quarter, with both therapies contributing 50% to the top line. We are gaining traction in newer therapies like respiratory and anti-allergy, which collectively contribute more than 10% of our revenues now. Chronic therapies continue to outgrow acute segment and contributed 67% to the top line in FY 2026. R&D expenditure for Q4 FY 2026 was INR 25 crores, which was at 3.6% of our sales. For the full-year FY 2026, it was INR 91 crores, again 3.6% of our sales. Before I delve into cash flow details, I would like to first highlight a fundamental shift in how the company is utilizing its cash. As many of you are aware, prior to FY 2024, while our operating engine was strong and consistently generated cash, a large part of that cash was upstreamed. FY 2024 marked a clear inflection point. Over last two years, we have generated cash from operations of above INR 984 crores, of which we have invested in CapEx of INR 472 crores, paid dividend of INR 61 crores, and resulted in a war chest of INR 451 crores. Let me now move to the current year's cash flows. As of 31st March 2026, our cash and cash equivalents stood at INR 782 crores, with CapEx for the year being INR 306 crores. Looking ahead to FY 2027, we plan to incur a CapEx of about INR 540 crores, which includes carryover commitments from FY 2026, as well as fresh capital investments. Importantly, this entire CapEx will be funded through internal resources. These investments are focused on building new capabilities at Solapur, our greenfield project, as well as strengthening our R&D platform. The capacity we are adding today will take us from 1,198 KL in FY 2024 to a planned 2,690 KL by FY 2028, positioning the company to drive sustained growth well beyond FY 2028. With that, let us open the floor for Q&A. Shall we open the floor for questions? Yes, we can start. Thank you very much. We will now begin with the question- and- answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants, you 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, you may press star and one to ask the question. We will take the first question from the line of Ahmed Madha from Unifi Capital. Please go ahead. Thanks for the opportunity and congratulations on the great execution you have delivered over last two years post changing the ownership. My first question is, we had a fire incident at Dahej plant. Can you quantify, was there any impact of production and sales, and is there any spillover we are expecting in Q1? Also, was there any costs booked related to the same on P&L? The fire at Dahej were impacted only the intermediate side of the facility. The API, the finished area was intact, so we didn't experience any great delays. As a result of that, there is no significant spillover. There is some, but not very significant. We hope to be able to tight that by in Q1. From an expense perspective, yes, we have booked a loss due to fire in our other expenses to the extent of INR 20 crores. That's why you see a jump in the other expenses line item. Okay. So just to clarify on this, out of INR 126 crores, INR 20 crores is related to the impact. On the employee cost side, is that jump organic, or is there something else there as well? On the employee cost side, we have accrued the performance bonuses since the performance for the company is good. There are certain performance bonuses which are payable to the employees, and those have been accrued in the last quarter. Okay. Sure. That helps. Other question was considering the lot of volatility we are seeing in global macros, there is obviously some Forex impact we'll be seeing, and I'm assuming it will be positive considering we are net exporters. Can you quantify does that sort of helps us in our gross margins? Is that sort of number baked in our gross margins? If possible to quantify and give your thoughts around, I'm assuming there'll be some impact because of yuan appreciation and according imports cost. That's first. Second, was there any major Forex gain booked in other income in Q4 or full FY 2026? Do you want to take the one, sir? Oh, okay. Yeah, there is a element of Forex gain for the year in the P&L. As you rightly mentioned that, since we are net exporters, any rupee depreciation definitely helps us. For the entire year on the P&L, we have seen a net gain of about INR 31 crore on the P&L. Your next question is on the other income side. There is about INR 11 crore of gain that we have booked for Q4 and about INR 20 crore for the full-year that we have booked. Okay. Sure. Are we seeing any challenges in terms of RM procurement, RM costs, pressure in terms of gross margin because of cost inflation, any logistics issues on the business in general? I mean, obviously we'll be facing challenges, but something significant if you can call out. Freight was impacted first, starting from February 28th itself. More or less that has been passed on to customers. As far as material costs go, solvents were the first materials that went up quite significantly. The good thing is that solvents contribute about 12%, 13% to our overall cost. Yeah, there is an increase, but again, on the overall cost, it's not going to have that big an impact. Of course, we are in touch with our customers to, you know, give them that view, and most customers are agreeable to take on that added cost, whether it relates to freight or relates to material costs. We don't expect an impact Sure, that helps. In the industry environment in general for pricing, how would you evaluate current environment? Is it sort of a steady I mean, apart from what has happened because of war, but in general, are you seeing any improvement in pricing environment for your API business? See, for our markets and our portfolio, the pricing environment has been reasonably stable to begin with. The war should not have any effect on the pricing environment. Sure. Last question from my side. In terms of inorganic opportunities, if you can give some thinking how you are thinking about that piece, what sort of profile of business you are looking for, and are we any close to do something? We are actively looking. Okay. The direction is to basically enhance the platform that we already have. Our goal is to extract more value from our pretty large and diverse pipeline of APIs. If we can sort of, you know, milk that pipeline much more through a lateral buildup of allied platforms, then, that's the direction we are looking into in terms of inorganic. Sure. Thank you so much, and all the best. Thank you. Thank you. Before we take the next question, a reminder to all, you may press star and then one to ask a question. We will take the next question from the line of Krishnendu Saha from Quantum AMC. Please go ahead. Yeah, good morning. Thank you for letting me ask a question. Just following on, just one something about the improvement in the margin. The material cost has been flat, but the what do you call? Contribution of CDMO as a percentage of revenue has been flat also. Is it largely because the expansion in margin- Mr. Saha, Yeah. Hello. Yeah. You know what? Yeah. I need to be a little more clear, probably move closer to the mic, not use the speaker phone. I don't know. No, no, I'm not using a speaker. Just Yeah. Can you hear me? Hello. Yes. Yes, yes. Please continue. Hello? Hello? We can hear you. Yeah, yeah. Just a couple of questions. On a YOY basis, our material cost is practically flat, and our CDMO share of revenue has been also flat. Just understanding, has the product mix on the CDMO been largely superior in the past, and that is why you have an expansion in the EBITDA margin? CDMO definitely has better margins, but. Yeah our CDMO business has grown 18%. Why do we say it's flat? I don't know. No, I mean Sorry, let me rephrase that question. The percentage of revenue has been flat at 6%, 5.5%, 6% compared to the last year also. Contribution to the total revenue is still the same. I'm just wondering, is it largely because of the larger superior mix of the CDMO within the CDMO? That's what I'm trying to understand. Okay. You know, improvement in margin has got, like, I would say three to four factors. Yeah operational efficiency has helped. We have had better cost processes implemented. Okay. CDMO has gone from 6% last year to 7% this year. I mean, FY 2025 it was 6%. It's gone to 7% in FY 2026. Yes. Okay. That certainly matters. We've also had some good launches of a generic API in multiple markets. All in all, that is how we've achieved better margins. The backward integration into of Ankleshwar and all to the HS of Solapur, has that played out as of now? No, not yet. No. Backward integration. No in a big way still has to, you know, contribute. There's some, but not very significant because Solapur is still not yet online, and we don't have the capacity for backward integration, you know, yet. Right in the regular plants. Solapur should be up and running in Q2. We hope to, you know, implement those backward integration projects. That helps us in the margin, I suppose I understand that, right? Yeah. We hope to have some benefit from that as well. Sir said something about Solapur being re-inspected or something. Are we going for any regulatory inspection over there, or it's gonna be normal as is? I think you're probably referring to Ankleshwar or Dahej because Solapur is not yet commissioned. I mean. No, I know. I mean, in the future, do we look at implementing Solapur for regulated markets? Because we only have Solapur for the ROW markets. I was wondering if do we go for the regulated markets for Solapur also. Yeah, yeah. That is the plan very much. I see. Last question from my side. When we talk about high potency API has been validated, when I understand when I hear that, I mean, just to clarify, you know, I understand less of the subject. Certainly the innovator or the client has validated the object or the API or the molecule, right? Yeah, yeah. The thing is that it's a, it's a progression. Before we validate, we've already sort of engaged with the potential customer. When they are ready to take exhibit batches is when we validate the material in the plant. Okay. That larger quantities are also generated as a result. Okay. The validation, they have started taking small amounts, validation amounts from us for the seven, eight molecules which we have right now in the high potency API. That's what I can understand. That's right. High potency API will be a better margin than the rest of the business, right? Let's see. That has to play out because most high potency APIs that we are working in have patent expiries that are going to come in from the year 2028. Oh, okay. It remains to be seen. Yes, typically these molecules do attract better margins. I see. Okay. Attract better margins. Thanks. Splendid. Thank you. Thank you for your time. I'll get back in with you. Sure, sure. Thank you. We will take the next question from the line of Shubh Mehta from ICICI. Please go ahead. Hello, sir. Thank you for the opportunity. Building on to the questions of previous participant on high potent molecule contribution, I wanted to understand. This year we had 12 molecules which were there, and last year if I see, seeing, the size was seven molecules which were there, submitted and accepted. Can you help me understand what was the contribution of high potent molecules this year in our portfolio vis-a-vis last year? See, the only contribution that we get is from the sale of exhibit batch quantities. Like I explained, the patent expiries are not going to happen until early 2028. Okay. Until then, our customers would not be able to launch and would not be able to buy API from us for those launches. The only sort of revenue that comes from the high potent segment right now is the sale of exhibit batch quantities. It will be fair that it will not be the material contribution for us in your opinion? Not very significant, no. All right. Second question is, sir, that growth, how much would be the growth contribution from the 12 new introductions which we had for this entire year? What would be the price erosion in our base business if I exclude GPL and CDMO business? See, again, these 12 molecules are new molecules. Their patent expiries are, you know, going to happen in the next five to seven years. Sir, I'm not asking about high potent. No, no. Even the regular ones. Okay. The level. You know, because typically we don't go for already genericized APIs, no? Okay. That's the idea. You wanted to know the base business erosion. What were you asking? Price erosion in base business excluding GPL and CDMO. Yeah. On that, the price erosion is about 5.5% is what we have seen on the non-GPL, non-CDMO. All right. All right. If I exclude despite that, we have grown pretty well, 13% kind of growth in the base business. Correct. If I exclude GPL and CDMO, that seems pretty healthy. Are we expecting to continue that traction over there? Yes. Okay. That is what we are seeing. Yeah. Thank you, sir. Thank you for your time, sir. Thank you. We will take the next question from the line of Sunil Kothari from Unique AMC. Please go ahead. Hi. Thanks for opportunity, sir. Congratulations for this transformative journey under this Nirma leadership, the way we achieved our cash flow control, then the way we are started investing, and the way we leverage the benefits of better operating margin. My question is, sir, first is: yet another scope, which are the another area where you feel you have scope to improve further, the margin or maybe maintaining this very respectable margin? See, this year is going to be a bit challenging because of the war. Right. Supply chains do have a little bit of constraint. There is, you know, there is enough, you know, demand visibility is pretty good. We'll have to see how the whole margin thing shapes out, but shapes up. The thing is we are still confident of maintaining between 30% and 32%, you know. Yes. Let's see how it goes. It's a bit, you know, it's a bit early to sort of give the whole year margin guidance for that matter. No, no. Sir, sir, I just wanted to understand which are the area where you see internally where you find the scope to improve the margin. Without giving any numbers, you see any area where you feel internally you can do something which will help us to improve the margin? See, backward integration is certainly one area where, you know, we see some scope for margin improvement. Once Solapur comes online in the second half of the year, we will be, you know, doing backward integration on a few key projects, and that momentum will build up as we go along. Okay. That's an area. Yeah, please. Sure, sure. Sir, second question is within last two, three years, our objective and our basic strategy is to we don't want to go for a very commoditize any activity or business, and that's why we are very respectable, very highly profitable and business only. Looking at the cost structure, the way we invest, the way interest is working, if we don't grow in a double-digit, then it becomes very challenging to give a better bottom line. That is our understanding as an investor. What is your thought process for next two, three years? Will we be able to move from single-digit, lower- single-digit, mid-single-digit to maybe little higher or mid- double-digit revenue growth? See, in the non-GPL business, we are already growing at double- digit, no? Yes. True. Thing is that the GPL business is a bit wavy, so it remains to be seen, but we are not seeing it, you know, keeping, you know, staying in line with the non-GPL business. That element will be there. What's also happening is that as the non-GPL business grows faster, the contribution of the GPL business is going to be much less as we go forward. Sure. Honestly, see, I mean, we've interacted with you right before as well. Yeah. The thing is that the focus for us is on, you know, having a good margin profile for the business and generating good profits, which translate into good cash generation. Maintaining a high quality business is a much bigger priority for Alivus. Okay. Growth will come. I'm not saying that growth will not come, but growth will not be pursued at the cost of, you know, margins because it creates a lot of other challenges then. True. Great, sir. Lots of good wishes. Thanks a lot. Thank you. Thank you. Before we take the next question, a reminder to all, you may press star and 1 to ask a question. The next question is from the line of Yog Rajani from Omega Portfolio Advisors. Please go ahead. Hello. Thank you for taking my question, and I just wanted to congratulate the team on great results. I had a question regarding the capacity utilization for the newer facility that will be coming up in Ankleshwar, Dahej and Solapur. As I see in Q2 and Q3, we will have a bulk of our CapEx coming live. How much time would it take for it to get to an optimal capacity utilization? Like, if it's coming in Q2, I don't believe that it would, like, be ramped up immediately. Could you just share timelines in terms of capacity utilization we see in our new brownfield and greenfield facilities? Yeah, sure. See, capacity utilization in the brownfield will be pretty rapid in terms of bringing it at the, you know, 80%, 90% level in a matter of two to three quarters. Because that's brownfield, that's an approved site, inspected by FDA and other agencies. That capacity will get taken up pretty quickly. As far as Solapur goes, we have done a fair amount of product mapping in Solapur. We expect that when Solapur starts off, we should start off with a robust 40%-50% utilization and then, you know, probably take it up to 60%, 70% in the following year. See, we have always been calibrated in terms of building out capacity. Okay. We've not been too adventurous, right? Here it helps us because we can do it, you know, in phases. That's why what we are doing at Solapur, to start off is, you know, phase I, where we will have 370 KL for the BI block and then 120 KL for the API block. Okay, capacity utilization should be, like I said, around 40%-50% to start off with in Solapur. Brownfield will kick in pretty quickly, two to three quarters. As I understand, FY 2028, because of the huge bulk of the CapEx coming live, would give us a huge revenue jump, but again in FY 2028 and onwards. Is that a good understanding? It will definitely give us a runway for new launches and volume growth. Okay. Mind you, see, the Solapur capacity, like I said, the 370 KL is for backward integration. Okay. That won't contribute directly to, you know, front-end sales. Okay. That capacity should not be factored into any kind of model you're building. Okay. Fair. I completely understand. Just wanted to understand, given after the greenfield and the brownfield expansions that have happened, do we have further available land banks for expansion down the line, or would the next phase again be greenfield? Land bank where? Do we have any land bank? Land ba- He will help you. I'm sorry. I could not hear you clearly. No, I'm just asking for some clarity in the question. I'm not sure I got the question right. Could you please repeat? No. For our further capacity expansions beyond what is already planned, would we need to again go greenfield, or do we have land available in our existing plans to continue with the expansion? Solapur is on 40 acres, and we would comfortably be able to add another 700-800 kl of capacity, of API capacity in Solapur. Right now we have only 120, right? Solapur should give us a good runway once we hopefully get inspected soon and, you know, through with that. We can ramp up the Solapur expansion, and then that should give us a runway for at least three to four years, you know, in Solapur. Ankleshwar has capacity. We can ramp up there further, but the thing is it's still quite You know, it contributes almost 65%-70% of our revenue today. We would like to go a little slow with Ankleshwar, and Dahej is full. Okay. Thank you for answering my questions. Sure, sure. Thank you. We will take the next question from the line of Meghna Agarwal from Mount Infra. Please go ahead. Hi, good morning. Am I audible? Yes, yes. Yes, ma'am, you're audible. Please proceed. Go ahead. Hi, good morning. Thank you for the opportunity. I just wanted to understand the API sector, like how is the pricing and volumes going on? Could you please repeat that, Meghna? Volumes go- Prices and volume moving in API. Can you repeat that question? is it Hello? I'm asking like I wanted to understand like the pricing and the volumes going on in the API segment. Your voice is not clear. It is. Hello? Is it better now? Yeah. It is a little better, yeah. Please. Yeah, I'm sorry. Sorry to interrupt in between, Meghna. I would request you to please use a handset mode and speak. Yeah. I just wanted to understand the API segment as a whole, like what is the pricing and the volumes, are they improving, and how do we see that going forward? See, there's a significant volume growth in all segments of our business. With respect to the pricing environment, I answered to an earlier question that we have not faced any major challenges with respect to pricing in most of our geographies. Because we have a newer portfolio and so it's not that commoditized, so we don't get that much pressure on pricing. Although on the overall bucket we do see an erosion of around 4.5%, you know, on the, you know, because of the some price reduction that we have to give on some of the products. That's the overall sort of situation with respect to our portfolio. Okay. growth is pretty good and, we expect, it will continue to be that way. Thank you. Thank you so much. Thank you. Thank you. We will take the next question from the line of VP Rajesh from Banyan Capital Advisors. Please go ahead. Yeah, hi. Thanks for the opportunity. Most of my questions have been answered, but just on the asset turnover, how should one think about that? Sorry to interrupt in between, Rajesh. Your voice is not audible. Could you please use a handset mode and speak? Now? Yes, please proceed. Hello. Yeah. I was just saying that most of my questions have been answered. Just on the asset turnover, do you think it has stabilized at 2.2 or do you foresee it going down further from here as other facilities ramp up? It would go down a little bit more because, you know, like we said, Solapur will be coming online soon and some of the brownfield capacity will also be coming in. When you compare us to the industry, we are still, I would say, pretty much on top of the table there. Okay. let's say 2 is a probably a reasonable level that one can expect or could it go down further from that? I mean, it would temporarily go down below two as well, right? Right. Yeah. It would come back up once the utilization picks up, like I explained earlier. Sure. Yeah. Sure. Got it. Thank you. Sure. Thank you. We will take the next question from the line of Alankar Garude from Kotak Institutional Equities. Please go ahead. Hi, good morning, everyone. Sir, we have seen R&D spends increasing consistently over the past few years as a percentage of sales. We have spoken about flow chemistry earlier. You are also talking about high potent API, ion complexes, as well as an evolving CDMO pipeline. Can you help us understand a bit more in detail as to where exactly your focus lies as far as R&D is concerned? Where do you see this R&D number as a percentage of sales settling over the next two to three years? Alankar, the areas that you outlined are where we are focusing on R&D and that's really going to drive the growth. Okay. As far as settling down, I don't think we'll cross 4%, right? We'll probably be at 4%, you know, in the next year or two. Then it should settle down. I mean, you know. Then we've needed to fire off on many cylinders here because the thing is that that's how the growth will come, right? You mentioned all the areas. I don't need to repeat. I mean, you know, you talked about flow chemistry, you talked about, you know, the CDMO side and, you know, we are looking seriously into pellets and granules. That's also an area that we've started working on. It's that whole lateral expansion of the API. I mean, we call it API plus, right? Fair amount of investment is going into that. Of course the pipeline buildup also is geared more towards the more complex molecules. All in all, you know, put together, yes, it is our R&D spend is going up, but again, it is gonna pay off. I mean, you know, much, much more than what we are investing today. Got it, sir. The second one is more of a clarification. When you're speaking about pricing, would it be fair to understand that, given our portfolio is slightly more niche, more chronic oriented, non-commoditized, as you said, any benefit of price hikes will be limited compared to, say, any other company or any other portfolio, which is much more commoditized than ours amidst this Middle East situation? I don't know if I said it, but I think I did. Most customers are pretty comfortable taking price rises because they understand the situation, right? Rather than have a slowdown in supplies or not have supplies, they've kind of given us the green flag that, yeah, that's fine. You know, you go ahead, but, you know, as long as it's gonna be reasonable, we are okay to, you know, absorb that price increase. There will be some. The good thing for us is that the only area where we see that increase is on the raw material side. You know, on the operations side, our operations are gonna be stable because we moved away from gas. We moved from gas to, you know, operating briquette boilers. There is no impact on operational cost, you know, because of gas shortages or because of hikes in price. That way our, you know, the operation cost is going to be stable going forward, even in a war situation. Yeah, certain raw materials have gone up and are likely to go up even further. We've got a kind of, you know, green light from our customers that, yeah, we can charge them more. It's gonna be fine. Understood. Basically, more or less on the gross margin side, we should not really expect too much of an increase, and on the other end, not, too much of a drop as well. Yeah, you're right. Fair enough, sir. That's it from my side. Thank you. Thank you. Thank you. We will take the next question from the line of Pratik Kothari from Unique PMS. Please go ahead. Yes, hi. Good morning, sir. Just one on CDMO, if you can talk about the phase III projects, if the run rate kind of continues and the ramp-up that you are expecting for fourth and fifth. Also the new deals or pipeline that we had from the CDMO piece, please. CDMO, the fourth and fifth project have kicked in really nicely. There's some revival even on the, you know, the earlier projects. We expect that CDMO will continue this momentum. Okay. As far as new projects go, we hope to close two new deals, you know, in the second half, early second half of this year. Great. Thank you and all the best. Thank you. Thank you. We will take the next question from the line of Deepak Relwani from Unifi Capital. Please go ahead. Deepak, please proceed with the question. Yeah. Couple of questions. Firstly, if I look at the new launches, which probably would have driven the gross margins, if you can give some sense, what percentage of revenue incremental has come from the new launches which happened in FY 2026. Some that sort of a benchmark number or something you can give. I don't know whether we'll be able to do that. I mean, we do have a sense. I mean, you know we'll have to see, but I can't talk. Just to answer your question, as doctor also explained earlier, new launches are not a very significant contributor to the top-line revenue growth. They are new launches and the ramp-up will continue to happen on those products. It's not like they are contributing significantly to the growth. Okay. Okay. Got it. If I look at the HPAPI pipeline building, obviously it has built up very well, last couple of years. That sort of contribution when you say will start coming in, will it be from the same like Ankleshwar and Dahej site, since you'll start coming in from, say, FY 2028 or it will take some more time? It will start in FY 2028, no. Customers order material, you know, at least six to nine months before the launches happen. Okay. Sure. Do we have, like, any meaningful big launches coming in FY 2027 or will that take some more time? I'm just trying to gauge whether the gross margin expansion which has happened will continue. Yeah. We have launches. Sure. Thank you so much. Thank you. Thank you. We will take the next follow-up question from the line of Krishnendu Saha from Quantum AMC. Please go ahead. Yeah. Hi, can you hear me? You're not audible, Krishnendu. Could you please use your handset mode? Yes, I'm on the handset only. Can you hear me? Hello? Yes. Now audible. Yes. Yes. Please go ahead. Sir, just on the financial question, to understand that we are closing cash balance is just INR 20 million. Mutual fund has increased by INR 350 crore. Capital work in progress also increased. Are we comfortable on the cash position? That's what I'm trying to understand. Cash position. Sorry. Yeah. cash position is about INR 784 crores, including the investment in. Yeah. Yeah. That's, yeah, that's what I said. Your working capital has already been paid for halfway through, I suppose, because of the INR 540 crores CapEx we have to do. We are just very comfortable in the cash position, right? Yeah, yeah. Absolutely. Yeah, yeah. Good. The entire CapEx will happen from internal accruals only. Yeah. Internal accruals. Yeah, yeah, that's what I. Thank you. Thank you very much. Thank you. We will take the next question from the line of Bhawana Israni from Ambit Asset Management. Please go ahead. Yeah. Hello. Hi, sir. Good morning. Am I audible? Yeah. Yeah. Sir, just wanted to check, in last call we said that the CDMO 2 contracts will come in next six months, like it was roughly June, July. Now this time we are saying that it will come in the early second half of FY 2027. We are expecting some delays in two CDMO contracts? Not really expecting delays, I do want to, you know, moderate it a little bit. It may come in the first half also, little late in the first half. Just to be on the safe side, we are saying it'll happen, you know, early part of second half. Okay. Okay. Okay. Okay, got it. Thank you, sir. Thank you. Thank you. We will take the next question from the line of Nitin Agarwal from DAM Capital. Please go ahead. Good morning. Doctor, I think, we alluded today in the opening comments around the fact that, you know, how we're looking at the business differently in terms of capital allocation, you know, after the changeover of the management and the promoter ownership. If you know, if you can probably just take a couple of minutes to sort of reflect on, you know, the journey since the time the ownership change happened, to how the strategic priorities have the business, you know, I mean, what have you been From a strategic perspective, what have you been doing for the last, you know, three, four years? Now, you know, as you look forward from the base that you built out over the last three, four years since ownership change, how are things gonna change? Is there any meaningful change, you know, the way you're looking, approaching the business from here on? Yeah. I mean, I'll take a little time, but yeah, you had explained that. See, what was happening is in the earlier, the pre-Nirma ownership, right, our focus was purely on portfolio, and we had to, you know, cherry-pick the right kind of molecules so that, you know, the growth came as a result of that. There wasn't much scope, you know, to go laterally. Okay. Essentially the R&D investment continued to be in picking the right molecules and taking them forward, which is helping us now for sure. The CapEx investment was again geared up to just ensure that whatever volume expansion happened, you know, as a result of overall volume growth, but also as a result of new product introduction as the patents expired and the customers launched. That was very limited. I just answered Alankar's question on, you know, why the R&D spend is going up. That is basically what has significantly changed in terms of our thinking, in terms of the various directions that we can get into. It obviously starts with R&D, and we are looking at various new areas to get into. Of course, we've done enough market, you know, analysis to see whether, you know, all this will pan out. Okay. One example that I can give you is the kind of work that we did in flow chemistry. Very recently, you know, we've even commercialized one flow chemistry product, which is doing exceedingly well. The confidence we have now in employing flow chemistry has gone up multifold because we've had commercial success on our very first project in flow chemistry, using flow chemistry, you know. The investment in flow chemistry in more complex molecules in a lateral growth, you know, of the current portfolio are the areas where we are investing, and we are able to invest, you know, relatively freely, because the you know, we are not just limited by a capacity buildup for the future portfolio. I mean, these are areas that we believe will drive growth in various different directions. You know, only time will tell, of course, but that work has begun in earnest. If I would sort of take that forward. When you look around you, obviously when you look at India, the Indian environment as well as, probably some of the global ones. I mean, when you look at your peer set, what is it that we, you know, in your mind do differently versus the others, which rather what we do better than the others, which sort of gives us this profitability metrics, the way they play out and a confidence in growth, that we have? I think the others are also doing well. They've chosen their path. I mean, you know, with respect to our own sort of path or DNA that we've picked is we want to, you know, have some element of uniqueness or, you know, higher entry barrier in whatever we are doing. Okay. The thought process here is that, you know, at least gets a fair amount of differentiation going so that in the longer term, we can sustain, you know, our business much more profitably. This is the whole point here. See, what happens is that, you know, this is a choice you make way before. I mean, we made this choice, you know, seven years ago when we became, you know, Glenmark Life Sciences and took that direction, you know. That directional, you know, sort of, you know, that, that we defined for ourselves and then consistently stayed along that is what has helped us. This is what I would say. Look, and the peers also, there are people who are doing really well. I mean, if you look at, you know, There are companies that have done exceedingly well. They've branched out, you know, pretty smartly into various areas. Of course, some because of portfolio choices and because of the overall competitive intensity in the market, there are challenges, right? Still, I would say overall, you know, people are focusing on the direction that they set for themselves. Thank you so much. Thank you. Thank you. We will take the next question from the line of Ketan Acharya, a retail investor. Please go ahead. Yeah, hi. Thank you for the opportunity and congratulations on a very good result. Doctor, could you help me with what is the revenue contribution from the geographies, or at least, you know, the top two geographies, be it U.S. or Europe or any other geography? Could you help with percentage revenues? I mean, we have mature geographies that are contributing quite evenly. If you look at India, Europe, you know, Latin America, you know, these geographies, and even the U.S., right? They're contributing pretty significantly. The newest geography for us, you know, that has come in in the last four to five years is Japan. That's relatively small compared to the others, but that's also growing quite well. We are pretty evenly distributed across the geographies, you know, with respect to, you know. Because the product selection that we made, and again, this goes back to the, you know, answer I gave to Mr. Agarwal from DAM, is that the selection of portfolio that we made over the years has been, you know, for all geographies. We've tried our best to, you know, make sure that we select those molecules accordingly. The, you know, the overall growth in all the geographies has been pretty significant. Like I said, even Japan, which is a relatively smaller geography, has, you know, is beginning to shape up very nicely. Okay. Okay, thank you. The other question I have is with respect to the contracts that we have with our customers. Now, you know, if you could just help me understand whether these contracts are like long-term in nature or they are kind of, you know, short-term, like, you know, you get contracts for deliveries few months out, something like that. If you can just give a flavor, give an understanding of how the contracting, how the ordering from the customers work in our, in our, this thing. If there's a differentiation in terms of the older molecules versus the recently launched molecules, if you can throw some light on these aspects. In our business, right, in CDMO, we have contracts, and these are longer term contracts. On the generic API side, we have fewer contracts. Even where we have them, they are not that long-term. It could be, you know, for a year or two years at the most. That's how. We prefer that really because the environment is very dynamic and we can't get locked into, you know, very cumbersome kind of, you know, clauses and, you know, get stuck. Now, if you see this war situation, we are asking for pricing increases. If we were contractually bound then, you know, we would have trouble, right? Here it's much better that we, you know, work with the customers as and how things progress. We don't see any downside to that either. You know what I mean? It's, it's better really not to be too badly tied up in contracts. Thank you very much. Ladies and gentlemen, that was the last question for today. With that concludes the question- and- answer session. Thank you, members of the management. On behalf of Alivus Life Sciences Limited, we conclude this conference. Thank you all for joining us and you may now disconnect your lines. Thank you.