Ladies and gentlemen, good day, and welcome to Indoco Remedies Limited Q3 FY 2026 Earnings Conference Call hosted by Nirmal Bang Equities Institutional. As a reminder, all participants' lines will be in a listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Umesh Laddha from Nirmal Bang Equities Institutional. Thank you, and over to you, sir. Hello, am I audible? Yes, sir. Good afternoon, everyone. I am Umesh Laddha from Nirmal Bang Institutional Equities. It gives me immense pleasure to hold Q3 FY26 Indoco Remedies Limited conf call. From the management, we have Ms. Aditi Panindikar, Managing Director, Mr. Sundeep Bambolkar, Joint MD, and Mr. Pramod Ghorpade, CFO. Now, I pass it over to the management for their opening remarks. Thank you, Umesh. Good afternoon, everyone. Thank you for joining this call today. Let me draw your attention to the fact that on this call, our discussion will include certain forward-looking statements, which are projections or estimates about our future events. These estimates reflect the management's current expectation of the future performance of the company. Please note that these estimates involve several risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied. Indoco does not undertake any obligation to publicly update any forward-looking statement, whether as a result of new confirmation, future events, or otherwise. Now, I will request our Managing Director, Ms. Aditi Panandikar, for her opening comments. Over to you, madam. Yeah. Thank you, Pramod. Good afternoon, everybody, and thank you for logging in into our Q3 FY 2026 earnings call. Happy to share that, Q3, Indoco has delivered a better performance, especially when it comes to our exports divisions as well as our APIs. I'm also happy to see the subsidiaries like, FPP in US and Warren Remedies, which is involved largely in the OTC business, do better. For this quarter, there are certain highlights I would like to talk about. In our OTC business in India, we have, as a strategy of application extension and brand extension, launched two products, Sensodent DSP and Sensodent DPC. One is a daily sensitivity protection toothpaste and is an addition to our sensitivity product basket, and the other is a daily pro care, toothpaste, which is actually our entry into clean toothpaste segment in the OTC area. In the domestic business this month, this quarter, our domestic business has been a bit flat. This is largely because of our acute therapies, which have shown challenges. However, this is largely due to the unpredictable nature of acute in the primary sales. However, happy to share that secondary sales as well as prescription response is all intact. In fact, we are happy to share that on a MAT basis in IQVIA, we have jumped 1 rank and are now ranked 21st in the prescription audit, with a total of 11 point. 10.86 crore prescriptions, and we have jumped over Pfizer, and that is a matter of great pride for us. We have also fairly succeeded with our new introductions in India, and the total new introductions to sales is now at 6.5% of India revenues. Happy to share that Patalganga site of APIs has also received the EIR for USFDA audit, where we had Form 483s. I'm also happy to note performance in emerging markets, where, not only have we done well in the sales, primary sales from Indoco, but I'm particularly happy to see the growth in secondaries on the ground. Also glad to share that Indoco has received the Most Preferred Workplace Award for 2025, 2026 by Marksmen Daily at Mumbai. These are some of the highlights from my side. I now hand over to Pramod to share the financial highlights with you. Thank you. Thank you, madam. So I'll share some financial highlights for this quarter. Standalone net revenues of the company for the third quarter, financial year 2025-26, are at INR 3,896 million, compared to INR 3,649 million for the same quarter last year, and INR 4,293 million for the immediately preceding quarter, that is Q2, financial year 2025-26, at 6.8% and -9% growth, respectively. Consolidated net revenues of the company for the third quarter, financial year 2025-26, are at INR 4,343 million, compared to INR 4,025 million for the same quarter last year, and INR 4,718 million for the immediately preceding quarter, that is Q2 financial year 2026, at +7.9% and -7.9%, respectively. Standalone EBITDA to net sales for the quarter is at 6.6% (INR 259 million), compared to 5.5% (INR 201 million), same quarter last year. For the immediately preceding quarter, Q2, financial year 2025-26, EBITDA was 12.4% at INR 534 million. Consolidated EBITDA to sales for the quarter is 7.3% at INR 315 million, compared to 3% at INR 120 million same quarter last year. For the immediately preceding quarter, Q2, EBITDA was 9.2% at INR 431 million. Domestic formulation business. Revenues from the domestic formulation business for the quarter are INR 2,101.42 million, as compared to INR 2,241 million, same quarter last year. Major therapeutic segments like vitamins, antidiabetics, anti-infectives, and respiratory performed well during the quarter as compared to the same quarter last year. On the international business, front, revenues from international formulation business grew by 26.2% at INR 1,356 million, compared to INR 1,074 million, same quarter last year. Revenues from regulatory market for the quarter grew by 25.9% at INR 861 million, as against INR 684 million, same quarter last year. Revenues from U.S. business for the quarter grew by 21.6% at INR 341 million, as compared to INR 280 million, same quarter last year. Revenues from Europe for the quarter grew by 36.9% at INR 485 million, as against INR 354 million, same quarter last year. Revenues from Sans market for the quarter are INR 35 million, as against INR 49 million, same quarter last year. Revenues from emerging markets for the quarter grew by 26.8% at INR 495 million as against INR 390 million, same quarter last year. Revenues from API business for the quarter grew by 24% at INR 344 million, as compared to INR 278 million, same quarter last year. Revenues from AnaCipher CRO, and Indoco Analytical Solutions for the quarter are INR 54 million, as against INR 56 million, same quarter last year. That's all about the financial highlights for the third quarter. I now request participants to put forward their questions. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchtone telephone. If you wish to remove yourself from question queue, you may press star and two. Participants are requested to use headsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Pratik Kothari from Unique PMS. Please go ahead. Yes, hi, ma'am. Good afternoon. Hi. Ma'am, first, hi. Ma'am, first on Europe. So last quarter, we had some issues, and there were some approval challenges which kind of got resolved, and we were expecting some growth to come in, but that- it has actually gone down. So, any updates, if any, on Europe specifically? Yeah. So we had said that there are some approvals coming in. Had to say that between customer and us, there has been some delays. So some of that has got pushed forward by one quarter. That's it. I mean, so are they in place now or still, there's some time to go? Almost. 90% work done. I mean, it has not happened in the first month of this quarter, but expecting it to turn now. So we should at least get one, one and a half months of manufacture. Got you. Correct. Correct. Ma'am, second on other expense. Again, our expectation was to kind of curtail it at INR 150-INR 160 crores at a consolidated level. We have been, for last 3, 4 quarters, we've been doing INR 170 crores. So anything we can do to control that? I think this quarter we have controlled at a consolidated level, no, Pramod? Yes. 150 One sixty-nine. One sixty-nine? Got you. 169. Yeah, Pramod. Yeah. So that include certain, you know, one-time cost, non-recurring cost, which we expect, you know, not to repeat. So there are certain, you know, remediation cost, which was pending. Then there was a cost associated to certain, you know, penalties. Because of the site being under remediation, there are certain products we've not been able to supply. There are some penalties against orders which were confirmed. There are many such things, but otherwise, we are confident to keep it at INR 150 on a consolidated. Can we quantify this non-recurring, one-time, for the quarter? Close to around 8.5 Around INR 8-9 crore, yeah. Got you. Correct. And, anything on FD for our Goa plant too? Waiting. We are waiting. Got it. Very well. Thank you, ma'am. All the best. Yeah. Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Kunal Mehta from Baroda BNP Paribas Asset Management. Please go ahead. Ma'am, any reason this quarter FTT became a hugely profitable business for us during the quarter? So, as you know, we acquired FPP in June of 2023, and we started with a very small portfolio, which they had, largely involving traded products. Over the last couple of years, we have built the portfolio through our products, which we supply through FPP. Of course, the basket has both solid orals as well as sterile. You know, we are having certain challenges with sterile products supplied to FPP, but our solids have started doing really very well. So in addition to sterile, which are being supplied from Site II, that is Plant II, which is not very significant, but I did mention last time we have started sourcing from other sites also. So that is better. We are also doing much better on the traded businesses at FPP, and the solids that are being supplied to FPP from Indoco have also increased. So net-net, this has and we have also got some good, good orders in the front end. This has helped, FPP, do much better, and I'm confident going forward, it will do better for us. Would like to know about our new introduction portfolios across our India business, and when should we see our growth going above the market, IPM market, or next- For IPM, yeah. Thank you. Thank you for that question. As you know, we have got a portfolio which is pretty much acute skewed, and although at a doctor level, we say it is subchronic, because we do get support from the mass specialty, we are still not with many of the super specialty doctors. And you know, for the India business at Indoco, our strategy has been very clear: to go from acute to subchronic, to go from GPs to mass specialty, and to move from, because Indoco is a company which gets more than 60% of its revenues from tier three downs, tier two down. So we have taken several measures strategically to improve performance in the metros. So as all of these build in, you will see us doing better than the IPM. However, having said that, if you have been studying the IPM carefully, you will see that this year, the acute has been under a lot of stress, and for this quarter, the current quarter, there has been some upside on respiratory, but otherwise, acute has been under a lot of stress, and what has really grown is cardio and diabeto. So compared to the covered market, we are not lagging too much. In fact, on a MAT basis for December, we are at par or better than our covered market. And it is only when you compare with IPM, because then you have to look at the anti-obesity products and all the other things that are going on. But your question about when can we beat market estimates, like I just told you, for India, our strategies revolve around generation of more prescriptions from the doctors, and here we are very confident we are on the right track. So, I'm, I feel sure that going forward, we will able to do IPM levels or better. So, the market is growing due to cardiac and diabetes, but we have very less share if you compare. Yeah. We have seen the growth over last three years, in that segment only. So any particular reason we are not focusing or, are we? It is a very cardio-diabeto is a very tough segment and already has a lot of competition. At Indoco, we focus more on those therapies which allow us to have a higher prescriber base than a lot of prescription per doctor, which is what a super specialty does. However, we are increasingly focused on consulting physicians, increasingly focused on pediatricians, gynecologists. In fact, our gynac prescriptions, gynac business has grown by almost 15% this year on a year-over-year basis. Synergy, which is a division which is having an agenda towards metro centricity and carries one of our big products, Karvol Plus, on a quarter-over-quarter basis, also has grown by 26.8%. So these are some healthy signs. We do have some very good products in diabetology, but not the latest molecules. We have Glychek, Glychek M, and that is reasonably doing well. But we continue to focus more on the mass specialty. Understood. Understood. And, ma'am, we have seen the API being ramped up over last few quarters. Going forward, as we ramp up the internal block too, should we expect increasing gross profit margins across boards, as we have seen over last three quarters, from 68% to 73% on concern- So our largest. I'm sorry. Yeah. Did you-- were you saying something more? No, no. Okay. So, you know, our largest site for APIs is the Patalganga site, from where the finished APIs largely come out. We also have a small kilo manufacturing site, where the top line is not very significant. We do manufacture some of our starting material at a very old site, which supports the Patalganga site. In addition to that, the site at Aurang, which is under the WRPL, Warren Remedies, has also started making KSMs and starting material for our API products, which is then consumed at Patalganga. So this has helped us free more capacity at Patalganga for finished API, and that is what is showing here. Going forward, also, we plan to continue to do this. In addition to freeing capacity at Patalganga for finished APIs, I feel very confident that the finished API block at Auric site in Aurangabad, which is part of the Warren Remedies group, which is now ready and is taking validation batches of products. As soon as USFDA comes down and qualifies it, or the EU comes down and qualifies it, we will be able to sell in those markets and then we should see further improvement in margins. But as such, we manage our API business very well. As you know, the API sales that you see is what we sell outside. In addition to that, about 40% of this, additional to this, is supplied internally to in-house formulations at Indoco. Understood. So, ma'am, going forward, should we expect API business also to touch the INR 200 crore run rate yearly? Of course it is. It is- It is at INR 200 crore if you consider what is internally transferred. Okay, understood. No, I was talking from the outside point of view. Yes. As we are ramping up from INR 20-25 crore- Yes. INR 40 crore-INR 45 crore. Yeah. Next year, I'm very confident. As I told you, this year, the Auric site will concentrate more on validation, and we will be restricted to what we can make at Patalganga. But I'm sure that in another 8-10 months, we will start getting high revenues from Auric site also, and then we can really ramp up our API business. Ma'am, should we expect some blockbuster drug launch approvals for us, as we have got a few in the past, and they are near expiring? Yes, so- Such as Apixaban. Yeah. Where we are first to file, along with 2, 3 others. There are several, coming up, for patent expiry or where, you know, the date has been, sort of, where we have, settled with innovators. And they are all in FPP's portfolio for the next year. So, we keep our fingers crossed and stay very positive for, these to help us ramp up FPP sale in the next year. Understood. Thanks a lot. No question. All the best. Yeah. Thank you. The next question is from the line of Ankit Gupta from Bamboo Capital. Please go ahead. Yeah, thanks for the opportunity. Ma'am, if you can tell us, you know, how much were the European sales for the nine months, and what is your anticipation for the full year, FY 2026? Yeah. So, Europe for nine months for Q3, Europe has done around INR 49 crore. And, I think, One seventy-one. 171 we have done, no, as of now? No, sorry. 167. 167 we have done on YTD basis. How much was it last year? One seventy. Yeah. Equivalently. Equivalent it was. Okay. However, last year, if you remember well, we had major challenges due to the MHRA inspection, because of which the fourth quarter for Europe was extremely poor. This year, in fact, like I mentioned earlier, many of the issues with phase two of MHRA, which allowed our where, wherein we have got approval from our customers to now manufacture at the higher batches and in the new sites are all coming in. We expect the fourth quarter to be much better for Europe. Net-net, I would not like to give you a number at this stage, but let us surprise you in a pleasant way. Sure. And, ma'am, on y ou know, we were also very, like, we are also, like, for the coming few years, we are pretty bullish on the European business and expected this to scale to a significant number. Yeah. If not for the coming quarter, FY 27, if you can, you know, let us know how, how much scale do we expect in the European business? So, these are the businesses which are built on generic. And, in addition to the base business, which is set to grow at double digit, I'm very confident the new products which will also come in, and which have much better market opportunity as well as margins, and will be made in the plants which have been now optimized. I'm not just looking at top-line growth, but we should look at Europe over the next few years as growing at 20%+ in revenues. But more importantly, we should be watching the margins to improve on that business. So, but, let's say, do we aspire to reach, like, INR 400 crore-INR 500 crore of revenue in Europe? Let's say, if not, if not next year, I think it will be challenging, but FY 2028 or 2029, like, should we be looking- Yes, yes, we can expect that. To reach this much? We can. Okay. Okay, okay. 28-29? Yeah. Okay. And on the Warren Remedies, if you can, you know, guide us, how has been the performance for the quarter and nine months, and, next year, how do you see the performance, especially on the profitability and revenue level? Yeah. So Warren Remedies has grown by more than 43% this quarter, and I think for YTD basis, it is in 30. Thirty-eight percent. 38%. This is largely due to the success we are seeing with our brand in the OTC and OTX segments. If you recall, we had the products like Sensodent-KF, which made a switch from pure RX to OTX first and then to OTC. Then after, we have products like Kidodent, which are doing exceedingly well in Correct The OTX segment. And, as I mentioned, this quarter, we also, Q3, that is, we launched two new products directly into OTC. One, to add further into our sensitivity basket, and the other, to actually provide a superior toothpaste, which is made in-house in our R&D and, which can now feature in frank OTC, in the general toothpaste market of high-end products. Looking at all this and the new launches that we have planned in the coming months. I feel very confident, that the toothpaste business and the oral care business in Warren Remedies will go from strength to strength. Coming to the API business, as I mentioned earlier This year will be a year of as in the 2026-27, will be a year of consolidation for me. Although there will be lot of validations of products done at this site, which, of course, it took us formulation team will trigger for international audits. We may not be able to supply to the reg market too much this year. So we are proposing or forecasting a muted top line for API in Warren Remedies. But I feel very confident for the subsidiary to do well overall. So but, so be it the breakeven next year at EBITDA level, or given the API performance, it will be difficult? So there are two challenges to breaking even. One, of course, is the investments in API and the OpEx and RM/PM costs of the validation batches taken for API. But we should not forget that, to expect a break even on an OTC business in the second year is very tough, because, we have now really started ramping up our spend on advertising. So, which is why, when it comes to, I said when it comes to your business, stay bullish on the margin. I would say when it comes to Warren Remedies, let them breathe and grow sales. Okay. Okay. Thank you. I wish you all the best. Thank you. Thank you. The next question is from the line of Maulik Waria from B&K Securities. Please go ahead. Hi, ma'am. Thank you for the opportunity. Just wanted to understand, we have seen a gross margin improvement of around 300 basis points, sequentially. So what has driven this growth, and how sustainable it is going ahead? Yeah. So you must have seen that both our subsidiaries have started doing better. These were both fledgling businesses earlier and were giving a drain on the business. So that has improved. In addition to which, COGS at even IRL level have improved. This shows a much better shift in the portfolio, much better shift in the quality of business that we are getting. Growth in prescription, jumping a rank in, you know, in the prescription audit, all indicate that, you know, if the demand part of the business is better managed, it's not always about top line, it's also the quality of business. And I think all of this is resulting in much better control, and giving us a much better margin. Okay. Okay. Okay, thank you. And, ma'am, you were just mentioning to participant. So what are we expecting from the FPP portfolio in FY 27? And how many product approvals are we expecting or maybe filing? Some indication or understanding about FPP for FY 2027, 2028 would be helpful, ma'am. Okay, 2027, 2028. So that's a bit far. We have right now visibility for 2026, 2027, where there is expectation that at least 5 new products should be launched out of our own portfolio. They will come at various times in the year, so it will be difficult to quantify that. And b ut they are extremely exciting. You must have heard of the Lacosamide oral suspension, which got approved recently. Yes. We also have a couple of other products where we have an opportunity to be early and have received the prior approval to ship product. That is likely to also help us. But I would be a little cautious because, you know, the moment I say something to you guys, you expect the next month to do well. But U.S. business is not like this. There is transfer of product first, then there are orders in the market, then you sell them, and you know very well what happens in U.S. for the collection. But we are building a very strong business, and I'm very happy to say that. Okay. Okay. And any, any therapies where you would be able to guide these five new products which you, you were expecting in FY 27? Which therapies are these or any addressable market size- Yeah. For these? No, market size I will not comment, but therapies, I tell you broadly, we have always stuck to two or three therapies for our international markets, especially in US. We have participate in cardiology, diabetology, and CNS, definitely. Because of Allopurinol, which is such a big product in our basket, you know, we also look at that therapy, and anti-gout, that is. In addition to which, of course, the ophthalmic product basket is great for us. Then in the traded products at FPP, we have got some interesting products, even in the onco segment. Okay. Okay. Okay. Sure, ma'am. Thank you so much. Thank you. The next question is from the line of Pratik Kothari from Unique PMS. Please go ahead. Ma'am, on the two lines that we were allowed to restart in Goa, for the US sterile, does it contribute anything meaningfully, or, I mean, everything from there comes in after the whole plant gets approved? Well, nothing meaningful yet, I'll be very honest. In fact, we have started getting small amounts of sales from sterile, but it's still largely from outsourced. But we have begun. Right. I mean, until the audit happens, can this become meaningful, the two lines that we are allowed to do? Yes, we have seen some upside in the present quarter. I'm hoping we'll be able to keep that run rate. If that happens, Q4, you will see some meaningful contribution. Correct. And we did some sale and lease back again this quarter. Can you quantify what that amount was? No, this was in the last quarter. Last quarter. The loss came this quarter, I think. Losses from this quarter? No, no. The exceptional items. No. No, there is a lease payment towards that, but, the transaction happened in the last quarter, in the month of August. What is the exceptional item you're talking about? This loss amounting to INR 2 crore in sale and lease back of its non-current assets. Is it? Might be a small 7B. Note 7B. No. Note 7 B. No, no. We'll look at it. Meanwhile, let us check what you're saying. Right. S o my second question was just on that, did we do it again? Oh, yeah. So there is one exceptional item, apart from that, is about the provision- Provision for the labor, new code. New labor code. Yeah. No, that's INR 7 crore. Yeah, that's about INR 7 crore. It's 7, right? 7B, which is INR 2 crore loss on sale and lease back. Yeah. Mm. Basically, those are old transactions, not the recent ones. Not the recent one. We had done these a year ago. About 15, 16 years back. That is the, you know, transaction which is settled in this particular quarter. Got you. Very well. Okay, thank you. Thank you. The next question is from the line of Dhaval Desai from Deutsche Bank. Please go ahead. Hi, good afternoon, everyone. Ma'am, my first question is on India formulation business. You know, I think last few quarters on the acute side have been in a way slightly challenging, and we have been stuck in that range despite new product introductions, et cetera, et cetera. So how should we look at this business from a you know slightly, let's say, two-year perspective, because the acute nature of the business and product mix is not going to change, right? So... Well, it's not going to change drastically. But yes, we are building more and more of the sub-chronic portfolio. We are also focusing on getting acute from mass specialists whose you know like practice is not very seasonal. So typically, if you go get anti-infectives from a general practitioner, it is much dependent on the footfall. But if you get an anti-infective from a pediatrician, that is not the thing. This year, somehow on anti-infectives across the board, also because of the AMR resistance issues and all those things, and you know I mean we have just had an SMSRC presentation a few days back. Post-COVID, somehow the acute has not settled. We don't know what is happening, but of late, there is indications that things are back on a very, you know, kind of a path, where you know, you can ignore the COVID, pre-COVID, post-COVID years, and now again, things are beginning to settle. So I'm hoping that will bring back some predictability. This year, for example, the summer never really came, the rain was prolonged, and the winter is expected to be severe. So let us see. All these things are different kind of, you know, ways of. We see it when we compare our prescription growth, we get an exact pulse of the secondary demand. I'll just give you an example. Our product, Cyclopam, last year, which grew by 30% at primary, prescriptions had grown by 16%. Now, this year, it is 15% down in primary, but prescriptions continue to grow. So prescriptions for us are a real indication of the real consumption, and that is not slowing down. Sometimes market sentiments, buying behavior, boys in the field, cause these kind of blips in primary push or hold back, and that is what results in quarter-to-quarter kind of a change. I feel going forward, we must discuss India business more on a YTD or a MAT basis. That is far more healthy. Okay. So, so, so again, kind of, you know, putting it down, you know, more succinctly, so is it fair or realistic to assume that given whatever portfolio that we have and the seasonality, of the nature of the acute business, is it fair that we can grow this business at 15%, let's say, over a longer horizon, maybe two, three years? Is that a fair assumption, or is that too much to ask, given the maturity of our products? So, given that new introductions are 6% of our top line, while the mature products will continue to dominate in the shorter run, soon the new introductions will start playing up and making their presence felt. So I do feel confident for a double digit. I'm not so confident about the 15%, but there are, you know, even when it comes to our legacy products, many of them have, there is a lot of leverage we can achieve through reach. There are many geographies where we are skewed. So there is a lot to do. It is just not as easy in India to translate, but we are working very hard on it. I'm hoping some of this will show results, and we'll be able to surprise you. Okay. Got it, ma'am. Very helpful. Ma'am, on the US side, I think you said that we have a very good product slate for, you know, next year, you know, given the filings that we have done and approvals that are in the pipeline. So, you know, how should we look at, let's say, you know, from the resolution of the USFDA issue, till the commercialization steps, the timeline, when can we capitalize on those opportunities, and for that to happen, you know, around what timeline the USFDA has to get resolved for us to capitalize on those opportunities? Okay. So, thank you for that question, because it also allows me to explain. Today, we have two sites for formulations, which make product for US. One is Goa Plant One, and the other is Goa Plant Two. The site which is under USFDA cloud for warning letter is only Goa Plant Two. Goa Plant One, in fact, is our solid oral site, and many of the new launches are from the solid oral site as well. In addition, in order to support the challenges we might have to supply products from Goa Two, we have beefed up supply at second sources. So I expect that while we may not get full advantage, if USFDA coming down gets delayed, unlike historically, when business came to a complete halt, this time, we, that will not happen. So in that manner, U.S. FDA coming down and U.S. revenues at FPP going up may not be directly linked. I hope that answers your question. Yeah, yeah, yeah, very clear, ma'am. So I think, last question. I think, Euro-- US also was, you know, INR 300 crore plus for us at some point in time, and same was for Europe. So how do we see the trajectory of, you know, us going back to those kind of numbers in both these markets? You know, what are the things which have to fall in place? Where you think are more confident or have more visibility? Some qualitative thoughts on that would be very helpful. Yeah, I love it when you people ask qualitative questions. So thank you for that. So there is definite visibility on us getting back there. Just to quickly go back on your 300, 300 crore kind of numbers. The last time we did INR 300 crore in US, almost INR 30 crore-INR 40 crore would have been revenues for milestone payments collected from Teva or you know, some kind of upfront coverage of R&D costs. This time around, when we do these sales, they are almost all coming from commercial sales, so you have to remember that. Number two, qualitatively, why we feel we should do it? As I told you, the Goa One site, which supplies both to Europe and U.S., but currently is making, allopurinol and Lamictal, just two products for U.S., but is waiting for all those product approvals and all those products from Plant Two to be transferred. That gives me confidence that going forward, Plant One will start contributing for solid orals for U.S. Plant Two, while we continue to struggle with USFDA coming down and clearing us and restarting business in time, there is a lot of demand for the products that have been filed from Plant Two and, already are in the market. Having said that, yes, there is, there is going to be challenge because competitors have had a field day when we could not supply. But we will be working very hard, and especially with, since we will have feet on ground with FPP, I feel confident, we will be able to get there soon. Qualitatively, the margins on this business is what I would focus more on, as we have spent considerable amount of time, energy, and money to bring all our plants to a level that when we get these numbers next, we should be doing far better in margin than when we were doing it earlier. I hope this answers your question. Yeah, ma'am, on Europe? Yeah. Europe, as I said, we had our major buyer, who also started with us incidentally in 2003, to whom we supply paracetamol for the U.K. and some of the other products. They continue to keep one of their private label with a small site of ours, which has a lot of pending orders, but we can't deliver. We are trying to transfer it to the site which has undergone MHRA, and we can take much larger batches. We feel very confident this quarter all of that should end. So next year we, we'll be able to start with a clean slate and have no constraints in supply. So Europe, number being down is also a function of us not being able to supply that product. Okay, okay. Just one more question, if I'm allowed, if there's time. Is that okay? I'm okay, unless somebody waits. Yeah, okay. Okay, okay. So, so I think, you know, we used to do that, you know, 18% kind of a margin, and from whatever that you are seeing, qualitatively, the U.S. business will have far higher margins. And, you know, domestic business anyway are good margin businesses, which will come, the growth will come back there. So, and Europe also, you said the margins should improve. So there is a visibility of going back to 18%-19% kind of a margin, you know, view aside the timeline. Is that a fair assumption? Of course it is. Why would we work otherwise? And I'll just correct you on that 19/20. 19/20, we did in a COVID year when we had no expenses on India. Otherwise, we were having a fairly good run rate of 16, 17, sometimes 18%. I feel in the next couple of years, we would be stabilizing at around 13, 14, and a couple of years after that, we should be able to pitch for much better margin. Got it. Very clear. Thank you, and wish you all the best. Thank you. The next question is from the line of Rohit, from iThought PMS. Please go ahead. Hello. Yeah. Yeah, ma'am. Hi. I think a lot of questions have been answered. Just in terms of the balance sheet, ma'am, so like where are we right now? And are we at peak debt? And what is the thought process of- coming down from here? Our total debt right now sits at around INR 900 crore. Seven hundred in the main business and INR 220 in WRPL. We have been paying back as and when things get due, and we feel pretty confident to be able to do that. But yes, of course, we would explore any and every possibility we can to reduce or lower the debt. On one part, we are very careful about no further capital expenditure. We are controlling OpEx. And, I think going forward, therefore, there is a lot of work being done also on the inventory side. And all of this, I think, should help us. But anyway, Pramod, would you like to add something? Yes, sure. So this INR 920 odd number, which includes short term as well as long term, while long term is at range of INR 590, and we have another repayment, which is scheduled in this quarter four, which is to the extent of INR 28. And we are very confident to generate, you know, revenue or cash margins to fund the repayment as well as the interest component. So with that, we'll have, you know, at the year-end, about close to about INR 550 or INR 555. That is the number for long term. And then next two years, we have a significant amount of prepayment at around about INR 135-INR 140 per annum. We have worked out, you know, forecast estimates, and we are very confident to generate that much, you know, cash, internally. As Madam mentioned, that is pure, purely based on one is about the overall growth in various markets. Second is about the, the efficiencies, which, I know will bring us, another reduction in overall cost of operation. And, thirdly, basically, the reduced interest cost, you know, these three components, we are very confident to, you know, fund the repayment and interest. And as Madam mentioned, we are-- we don't require much CapEx as such, because we have invested in most of the inner businesses now, including our R&D. So overall CapEx, will go down substantially during next, two to three years. What would be the maintenance CapEx that we have for our business? Around 35-40 max per annum would be the maintenance CapEx required. Okay. Which will include certain energy-saving projects also, which we have planned, which will further bring in, you know, the cost reduction for the energy cost. Got it. That's it from my side. Thank you, and all the very best. Thanks. 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. Most of my questions have been answered, but just on the debt side, given the repayment schedule that you outlined, right now, so by fiscal 2027, could we assume that your debt will be around, let's say, INR 750-INR 800 crore numbers? Yeah. So, Mr. Rajesh, we could not hear you completely, but I, if I understand your question, your debt level for the next year. So currently, we are at, you know, INR 759, that is the long term. While, you know, the short term, as you know, based on, you know, the overall business, short term may remain more or less same. But long term, we have prepayment plan, the repayment plan, which I explained just now. So, next year, by this y our question, I think, for next year, 2027, 2028, right? By the end of March 2027. Twenty-eight. March twenty-seven. Okay. Okay. That is 26, 27, one year. Twenty-six, twenty-seven. Okay. Let's say about 15, yeah. Yeah, sorry, sorry. Go ahead. Yeah. So I was just trying to understand that since you will repay about INR 160 crores or so of debt between now and March 2027, is it fair to assume that your overall debt, total debt, consolidated debt, will go down from INR 920 crores to, let's say, INR 775 or 800 crores? Correct, correct. Correct, correct. Okay. And, and in terms of the business this quarter, it sounded from your comments that it has been more of a supply issue because of USFDA and other reasons. So can you quantify what is the revenue that you actually let go because of that reason, right? And we actually paid about it as a penalty than that, right? Okay. So I think there are two questions in here. One is about revenue, and the other is about penalties. So on penalties, et cetera, and remediation one-time cost, we have around INR 8-INR 9 crore. On sale that might have not come in because of pushing forward due to customer approvals or validation, regulatory, you know, it happens all the time. There was some last-minute change in MHRA guidelines, and some labeling had to be corrected. All that is not very meaningful, but that is a continuous cycle. So if it spills, it comes into the next quarter. My understanding is you are getting, you are getting the produce, sorry, products made outside- That's right. And then selling them to the customers. Correct, correct. So there is some margin that is being lost there. Then secondly, you know, they were talking about, because of this USFDA, there are certain products and commitments you had. Uh. So which, against which you paid the penalty? Right. That's it. These two things together to understand- So they are for different y eah, yeah, there are different cases. The penalties are on historically unsupplied product. As you know, even for us to create second sites, it takes its own time. You have to register, you do tech transfer, you take batches, you do stability, then you file, then you get approved. So it's a longer process, which has now culminated, but historically, there have been gaps in time span when we could not supply. I hope that answers your question. I think you were also asking about margin. So safe to say that we are outsourcing from third parties, which also have economies of scale on certain products, and we feel confident to spread our product basket like that, where we'll continue to have supply from some people and some products will be made in-house. Right. So what was the margin lost because of that? If you, if you can quantify in terms of percentage? There is no margin loss, but yes, there are one-time costs associated with technology transfer. But they are against product supply over a long period of time. So, I think we can roughly quantify that at INR 20-INR 30. Uh-huh, in that range, yeah. On an annual basis, we would have spent, spent around INR 20 crore? Yes, yes. Yeah. All the costs we might have incurred on doing this technology transfer would be close to INR 20 crore. Yes. Mm. So that is an additional cost. But it gives us a surety of second line of supply, and where we do not have to worry about penalties in future. Yes. Does that answer your question? Yes. Yeah, I'm, I'm just going to rephrase to make sure I understood this. That INR 20 crore is what you have paid in the current financial year for the one-time cost to transfer it to somebody else's sites. Right. On top of that, this quarter, in this quarter itself, you have paid INR 9 crore in- That's right. Remediation and on penalties, right? Right. Right. Correct. Okay, and do you have a number, what is the total cost of remediation and penalties for the nine months? On a quarterly basis, we used to have remediation in the range of INR 4.5 crore-INR 5 crore. Now, in the last quarter, it is slightly reduced. Mm-hmm. When we talk of remediation, it is over and above all these product-related costs. Huh, that is separate. That is for consulting charges, et cetera. Okay. Right, so that's what I was trying to understand, that if- Yeah, yeah, yeah. I get your point. Yeah. Yeah, yeah. 20 crore, let's say 4 and 4 is, and plus this 9, 17 plus 20, roughly about INR 35-40 crore in this financial year. It's sort of one-time cost, which would not have been there had you had your USFDA approval. Is that the right way? Agreed, agreed. I understand the situation. Yeah, yeah. True, true. Okay, thank you. That's all. Thank you. The next question is from the line of Madhav from Shravas Capital. Please go ahead. Yeah, good evening, ma'am. Thanks for the opportunity. Am I audible? Yeah. Yeah, yeah. Go ahead. Yeah, ma'am, on the OTC business, how much we made in this quarter, madam? I think this quarter we would have done. I know on YTD basis we have done 94. 33.60. 30, 34. 34 crore this quarter. Yeah. So on the OTC business, assuming that the same trend is going to be continued, so, I think, what will be the next year assumption for the OTC business, madam? I have not. Can you repeat that? I couldn't hear you properly. Now, after considering that the OTC now, the every quarter we are making close to between around INR 30 crore-INR 32 crore we are making. Yes. I think INR 130 crore during the current financial year. For the next financial year, what is the, you know, expectation for the next financial year for the OTC business? You know, people in your brotherhood have told me I should not be giving forward-looking projections. But safe to say that with the amount of energy we are putting in consumer marketing, in advertising, this number should go up safely by at least 30%. Yeah, because we are good to see that we are giving some to brand extensions also. I think the brand, the business should go better in the next year as well. Yes, yes. Yeah. Okay. Okay, thank you, ma'am. Thank you. Yeah. That's all for me. Thank you. A reminder to all the participants, you may press star and one to ask questions. If there are no further questions? No, ma'am. Okay. Thank you. Thank you all for logging in today, and thank you for the very interesting questions. Wish you a good week ahead. Thank you. Thank you so much. Thank you. On behalf of Nirmal Bang Institutional Equities, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.