Ladies and gentlemen, good day and welcome to the Indoco Remedies Q2 FY 2027 earnings call hosted by Dolat Capital. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Rashmi Shetty from Dolat Capital. Thank you and over to you, ma'am. Thank you, Ikra, and good afternoon, everyone. I, Rashmi Shetty, on behalf of Dolat Capital, welcome you to the Q2 FY 2027 earnings call of Indoco Remedies. We thank the Indoco Remedies management for giving us this opportunity to host the call. Today we have with us the senior management of the company, represented by Ms. Aditi Panandikar, Managing Director, Mr. Sundeep Bambolkar, Joint Managing Director, Mr. Pramod Ghorpade, CFO. I will now hand over the call to the management for the opening remarks. Over to you, sir. Thank you, Rashmi. Good afternoon, everyone. Thank you all 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 include a cause or 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. Thank you. Over to you, madam. Good afternoon, everyone, and a very warm welcome to Indoco Remedies Q2 FY 2027 earnings call. The second quarter of FY 2027 marks an important milestone in Indoco's growth journey. Despite a dynamic operating environment and near-term challenges, we have continued to make progress across key business segments, strengthened our operating performance, and advanced our long-term strategic priorities. I am particularly pleased to share that for the first time, Indoco has crossed the INR 500 crore mark in quarterly consolidated revenues, recording INR 5,069 million in Q2 FY 2027. While we have made encouraging progress in improving our operating profitability, the expansion in margins was partially impacted by increase in material costs, along with elevated freight costs arising from ongoing geopolitical conflict. Despite these external cost pressures, we remain focused on driving operational efficiencies, strengthening cost management, and improving profitability. These results reflect the progress we are making in strengthening our operating performance and building a more resilient business. Moving to our domestic operations. Our domestic formulations business continues to benefit from established brands, strong prescription franchises, and leadership positions across select therapeutic categories. While the business has faced near-term challenges, we are encouraged by the continued strength of several of our core brands and the growth opportunities emerging from priority therapies. Cyclopam has further strengthened its position as a flagship brand, crossing the INR 200 crore threshold and now at a sales of INR 206 crore and maintaining its number two position in the antispasmodics and anticholinergics market. Our gastrointestinal portfolio recorded encouraging growth of 30.3% during the quarter, while our stomatological business grew by 34.8%, reinforcing the strength of our differentiated brand portfolio. We are also seeing promising traction in our newer introductions and emerging brands. These products represent an important growth opportunity as we continue to deepen our prescription reach, strengthen our presence in priority therapies, and build the next generation of brands for Indoco. Our focus remains on improving the performance of our domestic franchise through sharper execution, stronger field force productivity, disciplined brand investments, and a continued emphasis on high -potential therapeutic segments. We believe these initiatives will help us progressively strengthen our domestic growth trajectories. Turning to our international operations. Happy to share that Plant One at Goa had a very successful MHRA audit. As we just got the message today and a release has been made earlier this day, our CRO, AnaCipher, has also cleared the ANVISA inspection. Our international formulations business delivered a strong performance. We witnessed encouraging momentum across regulated markets, particularly the United Kingdom and Europe, alongside strong growth in U.S.A. and the Latin America. This performance reflects the strength of our international platform, our established customer relationships, and our growing capabilities in contract research and manufacturing services. Regulated markets remain an important pillar of our growth strategy. We continue to leverage our regulatory-approved manufacturing infrastructure development capabilities and customer partnerships to pursue higher value opportunities and strengthen our presence across established and emerging markets. Our API business has also continued to demonstrate great resilience. Our integrated API capabilities remain strategically important in strengthening supply chain security, supporting our formulations portfolio, and enhancing our competitiveness. Additionally, our allied services businesses, comprising of Indoco Analytical Solutions and AnaCipher, the CRO, continue their encouraging growth trajectory. We believe these capabilities will play an increasingly important role in strengthening our development and research platform while creating opportunities for future business expansion. As we look ahead for the second half of FY 2027, our priorities are clear: strengthening domestic brand performance, accelerating international growth, and improving operational efficiency while building capabilities that support sustainable profitability. We will remain focused on disciplined execution, prudent resource allocation, and investments that create long-term value. This year is especially significant for Indoco as we are progressing towards celebrating our 80 years of existence. For 79 years, trust, integrity, and nurturance has been the foundation of our journey. As we move ahead, our renewed focus on accountability, meritocracy, agility, and resilience reflect our commitment to build a stronger, more agile, and competitive organization. We are new Indoco, 80 years forward. We recognize that there is more work to be done, particularly in strengthening our domestic performance. However, the progress across our international formulations, API, and allied service businesses, together with improving operating metrics and continued strength of our core brands, gives us confidence in the opportunities that lie ahead. We remain optimistic about Indoco's long-term growth prospects and firmly committed to building a more resilient, innovation-driven, and profitable pharmaceutical business that delivers sustainable value for our shareholders and stakeholders. Thank you. I will now hand over the floor to Mr. Sundeep to present to you the details of the financial highlights for the quarter. Thank you, Aditi. Good afternoon, everyone. Let me first begin with the financial highlights. Standalone net revenue of the company for the second quarter FY 2027 grew by 2% at INR 4,381 million compared to INR 4,293 million for the same quarter last year. Consolidated net revenues of the company for the second quarter FY 2027 grew by 7.4% at INR 5,069 million, compared to INR 4,718 million. Standalone EBITDA to net sales for the quarter is 9.2% at INR 403 million, compared to 12.4% at INR 534 million. For the immediately preceding quarter, EBITDA is 10.3% at INR 422 million. Consolidated EBITDA to net sales for the quarter is 9.2% at INR 464 million, compared to 9.1% at INR 431 million. For the immediately preceding quarter, EBITDA is 8.8% at INR 410 million. Domestic formulation business. Revenues from domestic formulation business for the quarter are at INR 2,128 million compared to INR 2,261 million. Major therapeutic segments like stomatology, gastrointestinal urology, and dermatology performed well during the quarter as compared to the same quarter last year. On the international formulation business front, revenues from international formulation business grew by 12.1% at INR 1,720 million compared to INR 1,533 million. Revenues from regulated markets for the quarter grew by 21.1% at INR 1,109 million as against INR 915 million. Revenues from U.S. business for the quarter grew by 16.4% at INR 391 million as against INR 336 million. Revenues from Europe for the quarter grew by 23.5% at INR 675 million as against INR 547 million. Revenues from South Africa, Australia, New Zealand grew by 31.2% at INR 43 million against INR 33 million. Revenues from emerging markets for the quarter are at INR 612 million against INR 618 million. Revenues from API business for the quarter grew by 4.6% at INR 451 million against INR 431 million. Finally, revenues from AnaCipher CRO and Indoco Analytical Solutions for the quarter grew by 20.8% at to INR 82 million against INR 68 million. That is all about the business highlights for the second quarter. I now request the participants to put forth their questions. Thank you all. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Nirmam from Unique PMS. Please go ahead. Hello, am I audible? Yes, you are audible. Yeah. Ma'am, my first question is on the other expenses. In the first quarter, we had controlled our other expenses and employee expenses. We had also mentioned that all the initiatives that we had taken, we had reduced the number of people by 1,000 odd or something. But still, the expenses are up this quarter. One, what is the problem here? Secondly, how do we control these on a sustainable basis? Yeah. So good question. As you correctly said, most of our expenses and most of our other expenses are actually fundamentally under control. What has happened this quarter is we have got impacted in a heavy manner on account of freight, which has impacted most of our international business. The employee costs as a percentage of sale have actually dipped by a couple percentage points. We feel going forward, I know the current situation because of the war. I do not know till when we will have to bear these kind of additional freight, but that is it. Otherwise, there is no other concern. So I feel, I know we had always guided at around INR 160 crore on a consol basis. We have slightly inched above it in this quarter. Can you quantify the freight impact, ma'am? About INR 12 crore to INR 13 crore. About INR 13 crore. INR 13 crore additional impact? Yes. Okay. We've always maintained INR 150 crore would be the number that we were targeting. Yeah. Okay. Second question on the domestic business. All our priority therapies are doing well, but that growth is again offset by other acute business or some of the other headwind. How do we solve this problem also? Now it's been, we've not had single-digit growth for this year. We wanted to grow low double digits, but we've not been able to grow the domestic business. How do we work on this? Yeah. What you said is true. It is very surprising that when Cyclopam and Cital and the dental portfolio is growing by 30%. So you have three winners, and then you have Febrex Plus, Oxipod, and ATM degrowing by almost similar percent of a similar value. That has been literally the story of this quarter. What are we going to do? Of course, as we work on the portfolio and reduce our dependence on the seasonal acute therapies, this should come under control. But this has been a very different year or different season, I think you might have seen across all segments, basically. We would have to, as we improve this dependence, or reduce our dependence on the seasonal portfolio, I am sure India business should do well. What is more heartening is that almost INR 100 crore on a MAT basis are now coming from products launched in the last two years. These new products, I believe, are all in growth segments. As they get stabilized and established, they will create an environment for us in which we can probably better face the challenges like we faced this time. Ma'am, one is this portfolio problem, and the second is also we were trying to work on our distribution again. Any progress on there? How long did this take to get better? It is a branded business. The way we do it, nothing can be done really overnight. We are working on it, and we believe fundamentally things are improving because even Febrex Plus, which is in heavy de-growth, is growing at the prescription level. The same division which carries Oxipod also carries Cital and Cyclopam, the other two products which have delivered. So I do not think there is much concern on effectiveness or efficiency. If you look at anti-infectives and respiratory, one time we used to have more than 50% in these two therapies. Today, I think our total dependence must be around 30% still, and which is pretty heavy. At the strategic level, what we are trying to do is with anti-infectives, anti-cold, in particular, we are trying to minimize impact going forward by looking at the mass doctors that we meet for these products. But having said that, these are categories which get maximum prescriptions from the general practitioners who are dependent on footfall, and it has been a difficulty here. So we are working on various things to improve this. As and when we see improvements specifically at quantum levels in how some of these therapies perform, we will be the first ones to share it with you. Okay. Next, coming to the international business. While this quarter was at 12%, the half, if we look at H1, it is still in single digits. Given the kind of work that we have done, I think we were expecting far better growth here. So again, because Europe is also? Right. So international business in total comprises of the reg markets and the emerging. What typically happens is that the emerging business, of course, Q1 was not good for emerging business. Q2, they have done a little better, but not up to our expectation. But our reg markets have grown by 21%. So that is very healthy. Emerging business have also taken impact slightly of the Ophthal portfolio sales in Africa, which no longer now belong to us. Then we continue to promote the products for Sunways. Around INR 10 crore of sales has got impacted on account of the Sunways's portfolio of ophthalmics in Africa, which has gone away. Our own reg market business, I would like to speak about. Europe, U.K., very steady order positions, good offtake, and we feel confident that these businesses will show very healthy growth in the years to come also. Emerging business, there are cycles, and I feel by Q3 even this business will come to mark. So in the regulated market business, say Europe, U.K., can these markets grow at 20% plus for the next one, two years? Yeah, that is the target. Okay. Then the one question on our audit that happened. While we were ready, we still had seven observations once again. If you could just explain what were those observations, and do we expect the plan to get resolved? I think I said this in the last MDA discussion call with management, but I will repeat now. We have just finished giving USFDA a major outline on how we are going to respond to their concerns. One update on data and work done thereafter has also gone to US FDA. I believe this is the time when they are looking through our responses, looking holistically at the whole picture. Like I said, by first week of December is the earliest we are going to know about which way this goes. I feel pretty confident that our team, because the observations might look many in number, but none of them are specifically related to any DI, data integrity, any cleanliness or cleaning validation or any of those major things. Most of them have got to do with expectation of the agency on how we investigate, how we do certain procedures and processes. A lot of the responses this time have been about training people to meet up with the regulator's requirements. I feel pretty confident and keep hoping for a positive outcome. But best we speak about this after December. Okay, ma'am. One question on our CapEx. Till last year, we were maintaining that all the CapEx had been done, and we were expecting about only INR 40 crore of CapEx for the next one, two years. But if I look at the cash flow statement, I see about INR 60 crore CapEx in H1 itself. So one, again, what is this, and if we expect a higher for this year? Yeah. So Nirmam, basically, CapEx, what you see there is a capitalized amount on account of intangibles. The work which we do on ANDA, DCPs, those are capitalized. But- Actual CapEx- Yeah -for land, et cetera, is not more than INR 25 crore, I think this year. Less than that. Even less than that. But then how does it Pramod, how does it reflect in the cash flow statement in the investing activities? Yeah, because we do capitalize the ANDAs and the approvals based on R&D expenses are capitalized. Okay. What we can do, we can do a more disclosure. We can bifurcate that between PP&E and others extent. Okay, understood. One question on Warren. We had incorporated a new subsidiary for the API business, I think. Yes. If you could explain the reason for separating these two businesses, or if we are looking at anything additional, are we trying to get any funding? No. I mean, I'll just address your basic query. We have many businesses inside Indoco, and some of them are really as different as chalk and cheese. The OTC business of Warren Remedies and the API manufacturing business of Warren Remedies are very different. We believe, therefore, that consistently, whenever we look at Warren Remedies ' performance, we keep checking the performance of the API division financially and that of the OTC business separately. I do not think this is healthy. Therefore, we have just, at this point, registered a company in the name of Warren Lifesciences with an intent possibly of separating the two business. That is it. Okay, ma'am. I will join back in the queue. Thank you. Next question is from the line of Rudraksh Raheja from ithought Financial Consulting. Please go ahead. Yes, thank you for the opportunity, ma'am. My question was about the CapEx. In the last PPT, we were doing some more CapEx on the Warren side. What is the nature of that, and is that completed now? Yes. We were just completing some portion of the API site. I think finished product site, and that is also done. Got it, ma'am. When are we expecting U.S. audit for that API plant? I am hoping by second quarter of next year. We have already filed. CEP is also approved. Our DMFs are already in the FDA books, and our own formulation team is triggering this, so we will have to wait and see. Got it. Ma'am, what would be the revenues in first half for FPP business? If I am not mistaken, we have done in excess of INR 100 crore. Yes. Got it. In FPP. Got it. And we have been profitable in this first half, if I am not mistaken. Yes. Ma'am, what should be the sustainable EBITDA margins and PAT margins for this business going forward? We are not talking of a branded business. You know how the U.S. market is. Of course, we are very selective about the product portfolio. But looking at how things are, we would like to wait and watch. I think we take great pride in the fact that within three years of acquisition, we have been able to turn around FPP. That is good for us. It is also very healthy because feet on ground is always good, and we get much better understanding of what is happening there. We are growing this business and feel very confident going forward also. We will be able to keep this business. We may not grow it too large, but we would like to keep it making decent profit. Understood. Any specific headwinds that we are witnessing for this business as of now? For FPP, not really. The typical regular problems. I don't think we should call them headwinds anymore. They are more like the characteristic of that geography. With generics, you consistently see price erosion, you see more competition. But what we do is we try our level best to be vertically integrated on most of the products we supply to U.S., whether through FPP or otherwise. That gives us much better ability to live through these times. But other than that, more competition, yeah. But we have a good team which manages to get the right orders. We do a good balance with how much we sell to whom, how, and we don't just go after market. Got it, ma'am. On Warren Remedies side, the initiative would be very helpful for analysts also, since API and OTC business are very different. What are the current revenues out of these two segments within Warren Remedies? Our Warren toothpaste division has done around INR 36 crore this quarter. Okay. On the API side, ma'am, within Warren? API is hardly anything. Internal consumption. It is mostly internal consumption since we do not have any approvals yet. It is starting material, KSM purchased by Patalganga. Anything we sell from here at this stage is going to be at cost or something, so we do not really manufacture too much here. Right now we are using this time to take validation batches, move a whole lot of portfolio, create extra capacities for the products we make at Patalganga, and try to bring in more of the KSMs and starting materials for Patalganga, which we are making outside. Understood, ma'am. Ma'am, what would be the break-even level of revenues that we would need here to reach break even? That is also very funny question to answer. I could tell you that for this quarter, our toothpaste division is almost broken even. That is because we probably have slowed down some of the expenditures on advertising. This is a business which requires a whole lot of support and funds to create consumer awareness for media, for television, for digital, and for trade marketing. All those campaigns are going to come up. If I tell you it is broken even now, you will hold me true to it for the next quarter when I would have invested to further my sales, and then I will not be able to do that. Like I explained in one of my calls earlier, at least for the first three or four years for such a business, we should concentrate on growing sales. Understood, ma'am. Ma'am, hypothetically, I think we work on a single shift. Yeah. Our operating expenses at the toothpaste factory are completely under control because we built it in a way with the highest technological kind of addition. We need very few people. We are able to control shifts. We are able to control the number of people. We are also steadily bringing in certain other contract manufacturing income of other cosmetic products that we make for IRL, the parent company, and that remains. But yes, we run it in one shift right now. Got it. Ma'am, I meant across all our plants, I think we operate on a single shift. So hypothetically, can we add more shifts, as and when we require it? Of course, we can. That was the planning. Got it. And ma'am, if all our plants start to work at peak capacities, what would our revenues look like? I am not asking about any timeline, just a broad- No. See, we are in a business where we make a very commoditized product like paracetamol and a very interesting product like probably one of the suspensions of ophthalmic. You really cannot compare this, and I cannot give you numbers like that. Still, I think I can tell you very clearly that with this infrastructure, the company can very well go to four times the kind of top line we are delivering for international. Understood, ma'am. That is very helpful. And ma'am, are we on track to repay our debt for this year? The numbers that you gave? Yeah, very much. We have been repaying also up to now. First half, we must have repaid close to INR 40 crore, INR 50 crore. About INR 50 crore. INR 65 crore. At consolidated. At consolidated. Got it. Thank you for taking my questions, ma'am. Thank you. Next question is from the line of Kirtan Donga from Leo Capital. Please go ahead. Hello. Yeah. You are audible. Ma'am, for the Goa plant, are we evaluating opportunities to scale up in Europe market, or do we want to keep that focused on U.S.A. market? So as you know, we already have the Europe approval for one of our injectables, and Europe has approved the site. Europe always stays an option. But Europe, as you know, is a consolidation of several countries. Each country has a different language and a different need. This can create some complexities when it comes to efficiency. So comparatively for us, a single U.S. market is much better than the fragmented Europe, which is why we were more keen on U.S. But yes, let's stay positive on U.S. till December at least and see what happens. Meanwhile, as I have said several times over, for our key brands and key products in the U.S. market, we are steadily creating second sites from where we can get product. So the market share we are getting in the U.S. market does not get impacted. Okay. And ma'am, just to confirm, what is the profitability for our OTC brand, Sensodent? Sensodent, like I said, it depends on how big you want to make Sensodent. I think for these products, if you are asking at GC level, then the GC margins are very healthy. Very good rather, not healthy. Excellent. It's up to us how much we are ready to put in in order to get share of the market. Can you give some number? What is the GC margin? No, I think it's better not to. Let's wait. Okay. Thank you, ma'am. That's all. Thank you. Next question is from the line of Kenil Mehta from Boring AMC. Please go ahead. Ma'am, on the gross profit margin side, our margin has decreased from 70% to 64%. We are on- I can't hear you very clearly. The voice is mumbling. Can you -Is it coming now correctly? Better, yeah. Ma'am, on the margin side, gross profit margin side, when should we expect it to return to a 68%-70% level when the entire industry has seen a lower decrease than ourselves? Also due to our backward integration, we are not seeing any impact on the gross profit margin expansion. Kenil, in this quarter, actually if you looked at the top line, there has been very good absorption of cost. We are doing much better. Had the post-war kind of increase in the Cost of Goods Sold and freight, et cetera, not come in, we could very well have shown a very good improvement in margin in this quarter itself. Ma'am, I was saying on the GP side, gross profit side, when should it return to a 68%- 78% level? Because on the EBITDA side, there has been a freight cost hike. So, Kenil, if you see, there is an impact of material cost in gross profit also. Yeah. Otherwise, the COGS were right. As we correctly said, this quarter, our COGS have got impacted to the extent of almost 30% increase in COGS, RM/PM, and freight and other handling, solvents, et cetera. Okay. And ma'am, can you quantify the MMP savings annually? And what will be the incremental EBITDA for every incremental INR 1 of revenue or INR 100 crore of revenue addition from this? It is very foolish in these times to make any of these comments, no? For example, all the MMP work we did, which should have resulted in positive, and then one impact of an external environment, it again gets washed out. So there are many things to this. The product mix, the macroeconomic factors, order positions, the consistency of product mix. So I think it's very difficult to generalize. But please stay assured that the MMP work we have done is what is For one thing I can assure you, for a lesser number of batches, we are getting more product today. We just have to wait for this cycle, I guess, to ease out. And because of the filings we have done, our future portfolio is definitely much healthier. I think all this work that we have done will incrementally help us increase the margin, especially for Europe and U.K. Can you quantify the number of launches we will be doing in next few quarters? Not at this stage. And ma'am, what was the reason for drastic improvement in FPP profitability? Was it due to some new product launches, first to file or something? Or it was a normal me-too generic segment which had high volume? We have been consistently able to supply product to FPP. Ever since the acquisition of FPP, we have gone through our own cycles of ability to supply consistently product from Goa 2. Our de-risking Goa 2 with other sites has helped us keep a steady state product supply to FPP. In addition to that, the team at FPP also is much better coordinated today with much better planning, coordination. We run a very light shift in U.S. If we are able to, it is also a matter of size. The minute your business gets to a particular size in U.S., you are able to generate profits. Understood. And ma'am, on the cash flow side, our H1 entire cash flow was INR 50 crore, excluding the exception gains, and our CapEx was INR 60 crore. Should we expect the cash flow in second half to increase as we release our working capital, which was stuck in the H1? I think Pramod already explained about what appears as capital expenditure, your assessment, what it is. Yeah. We don't expect major CapEx spend now, not only for remaining second half, but even next year also. Understood. The cash flow should improve drastically if we compare our EBITDA. Yes. Our EBITDA was INR 80 crore and our OCF was INR 50 crore. Technically we have a 60%-65% OCF to EBITDA conversion. Compared to earlier time, it was 75%, 80%, to 90% range. Should we see increase in cash flow? Yeah, we are working towards that. Yes. Okay. Understood. No question. Thank you. Next question is from the line of Janesh Shah, an Individual Investor. Please go ahead. Janesh, your line is unmuted. You may please proceed. Yeah. Am I audible? Yes, Janesh. Yes. Yeah. I have a couple of questions. Basically, I am a little new to the company. I am trying to understand the turnaround of the company. In the consolidation, basically there are a number of results, especially in export and domestic, and in exports you are more tilted towards Europe and U.K., and the U.S. has been the market where you are still trying to catch up. I understand you have been trying to improve the efficiency and trying to improve the margins, and as we grow the revenue, that phenomenon will start kicking in. Leaving aside the recent troubles which I think the entire world is facing with regards to the supply chain. But if you were to look at the margin profile, how do we see the current margin? If you can just give a little bit of an understanding as to how the domestic business has been in terms of the margin and especially on the international side, which are the geographies where the margin breakup is. If you can give us a bit of an understanding and where the trajectory you are looking at, given the new products which are there in the pipeline. That will help us in understanding, because we see there is a huge investment you have made in the fixed assets, but we have not yet fully utilized. As you mentioned that this current setup can generate four times the revenue. It looks like we are in a very high expense, already build up the expenses, which to an optimum, but the revenue kick-ins are not happening. Just trying to understand the current margins and how does the trajectory keep moving as we go ahead with the kind of a growth which we will emphasize. Yeah. Thank you. Very long question. I do not know if I can actually answer your question completely, but I can definitely give you a lot of information, based on which you could then assess. Very clearly, you started with margins on businesses, and you are new to the company. We play in the branded markets, in branded generics or value-added generics in India and emerging, that is Africa, Southeast Asia, some of CIS, et cetera. We are in the pure generics market for the regulated countries. These are very different businesses. In India, profitability is largely a function of many things, including the return per man in the field, the price, and whether you are in acute or chronic or subchronic and stuff like that. And whether you are in the growing segments or not. If you are looking at the generics pie, then obviously, at simple contract manufacturing, we should make the least margins. Wherever there is development followed by manufacturing, I guess through milestones, et cetera, and depending on products mix, you can increase the margins. Historically, the company has been investing in research over a consistent manner for almost a decade. Out of that, today, we have to show several products, several ANDAs already filed in U.S., several dossiers filed in Europe. When I said earlier, if you look at Europe-U.K. business, for example, today, it is very heavily skewed towards pure contract manufacturing. Whereas the very interesting products portfolio are the products which we had filed, where we were first to file, and for which probably the patents will start coming off in the next couple of years. When this product mix starts coming into our manufacturing sites, obviously, the return per unit manufactured will be much higher. In India, we are trying to increase the efficiency of our people so that the per man return goes up. Our business is very fundamentally dependent on the kind of prescriptions we generate from the doctors. For example, I spoke of a product called Cyclopam, which crossed INR 200 crore this year. If it has grown by, say, 20%, and it is a kind of product where after the first prescription, probably the patient goes back to get more, then our prescriptions are also growing at 16% plus. We do not depend only on the push. Strategically, we try to create demand for our products through prescriptions. In that way, our India business is very steady. This time, unfortunately, three of our top brands had to face a very huge affront because of the headwinds that got created because of almost absent monsoon. That impacted us in India. Internationally, with the solid oral business, we are doing very well. Increasingly, being able to supply product better both to U.S. and Europe. I think, does that answer your question? Yes. Yeah. Roughly, you can understand, 55% of the top line comes from selling branded products in India. Yeah. Another 10% from API and the remaining 2%-3% from our services, but the rest of 30%- 35% is all from reg markets. Yeah. But how are the margin profile? I mean, in the domestic business, generally, because you have a good brand, but I'm saying when we're looking at a consolidation, we get a consolidation picture, but it's very difficult to segregate the margin profile in both sides. Yeah. Because the businesses are very different, right? You obviously cannot have the brand-like margins when you do contract manufacturing of generics. But the kind of volume growth you can show with generic manufacturing for the reg markets, that you cannot create even with prescriptions. So your prescription, it is impossible to show a 50%-60% growth in prescription on a big brand like Cyclopam. When it grows by 16% in prescriptions, that itself is huge. Today, in every four minutes, one prescription is generated for Cyclopam. I could try to make it two, but that's it. But a great contract on a new launch in U.S. or Europe can fundamentally give the company a huge kick up through volume and value both. But I cannot promise the same kind of margins that we have in India. So it is complicated, but you will figure it out, I'm sure. Okay. Thank you. Thank you. Next question is from the line of Zain from Dolat Capital. Please go ahead. Hello. Yes. Am I audible? Yes. Thank you for the opportunity, ma'am. My first question is on domestic business. In last quarter, you have guided for high single to double-digit growth for FY 2027. Do you think to maintain this growth guidance or will you revise it? What will drive this in second half of the FY 2027? Yeah. I am expecting a more predictable sales in the second half. Also, this growth is back of divestment of the Ophthal portfolio, which we didn't realize. We had, as per IQVIA, close to INR 65 crore in Ophthal, which is there in the last year's base, which is missing here. About revising, I hope none of my salespeople are logged in on the call because that is not a good thing if I have to revise my guidance on India growth. Look, Cyclopam has grown by 30%, Cital is growing by 30%, Febrex Plus is down by 20%, ATM is down by 16%. It's a bit silly, right? If the rains had come, Yes I would have been doing better than the guidance I gave you. Let us stay positive for the rest of the year and not unnecessarily anticipate that we cannot do our numbers. High single digit is what I had promised. We are going to work very hard for it. Let's work for it and see. Okay, ma'am. Second is on guidance for export business, if you would like to give any number. So, like I said, in this quarter, our reg market has grown by 20%. Our emerging, unfortunately, is lagging, because of which the total growth is coming to 12%. For the first half, we have shown almost 8% growth. But I feel this business, typically as the year progresses, especially the fourth quarter is very good for emerging. So we are able to do a catch-up, and I feel this business will definitely go to a good, decent double digits, if not more. Okay. Emerging has not been Any guidance for emerging for FY 2027 because it declined in first half. We had promised to do close to? Ophthal. Yeah. I will repeat that. Almost INR 10 crore of ophthal business is not there because it has gone out. If you add that back, there is no decline. In fact, there is growth. There is growth. But agreed that we have sold that business, and now we will earn only in terms of giving marketing services, and that will come later. So that revenue is not seen here much. So this year, probably, that impact of close to INR 10 crore -INR 12 crore of ophthal business will remain on emerging. But having said that, the other businesses within emerging markets where we have feet on the ground, that is French West Africa, we are actually doing very well. Yeah. We are growing in higher double digits. There have been some concerns with the rest of the markets, and I feel confident we will be able to improve in the second half. Ma'am, do you think emerging markets will sustain this growth or let them go to 57% and all? I am sorry, can you repeat that? Emerging markets. Yeah. With LATAM, et cetera. Yes. Considering that these are potentially the fastest-growing markets, they offer the best potential for us. We are playing there, and I feel confident that we will be able to deliver. Okay. In domestic, what is your MR productivity in head count? Right now, 7%. Our MR productivity has gone to around 3.25 lakhs, if I am not mistaken. Average. Average. 3.3 lakhs, sorry. Okay. This is productivity, no, in head count? PHY, yeah. Per man yield. Per head yield. Okay. Last question, any guidance for R&D and CapEx? Like we said, CapEx will be at bare minimum. R&D also, we are doing a great job still of controlling the number of projects we are picking up so that we can work in a focused manner and deliver more. We had said that it will not go above 5% of top line. I think on YTD basis, we are at 4%, that is being managed very well and without compromising any of the opportunities. Thank you, ma'am. Yeah. Thank you. Next question is from the line of Hardik Jatheliya from Ardeko PMS. Please go ahead. Yeah, thanks for the opportunity. I hope I'm audible, ma'am. Yes. Yeah. Just one question on the Warren business. Let's say the oral care business roughly did INR 36 crore for the quarter, and assuming that the API sales were not much. Let's say the sales have only grown from INR 34 crore -INR 36 crore, and we have reduced our ad expense, but the losses have just curtailed by INR 1 crore. Two questions on this part. What explains this? Incrementally, if you look at from the capital allocation front, from management perspective, how are we looking at the situation from next six to 12 months, considering that we are losing INR 18 crore every quarter? Just wanted to know your thoughts on that. On Warren Remedies, you mean? Okay. Yeah. Warren's API business is the one which is creating more erosion. Like I said, the toothpaste business is almost breaking even right now. Without further spend, I said further spend, but you do see around, I think for the half year, we have almost INR 16 crore has been spent. These are cycles. This is something probably we spent last year, but it is getting accounted here, possibly because of the longer campaigns that we run. Okay? When I said that we are not doing more, that doesn't mean we are not having any promotional expenditure. I'm saying it is not requisite to what my marketing team wants. They probably wanted us to do much more. That is what is being controlled. Just for you to know, Sensodent, which is the number one brand in this category, has almost INR 350 crore of ad budget. That is our challenge. We don't intend to spend that much ever. But I expect that with the right and strategic investment in our trade marketing, in digital marketing, and as we wait for our product to get available across more than where we are available. Today, 90% of our presence is in the chemist stores. We have a few grocers, we have some in modern trade. As we increase grocers, as we increase modern trade, as we add quick commerce, e-commerce, we should be able to do better on the toothpaste front. Does that answer your question? Fair. Just to understand, the losses for the business will be reduced once we get our API utilization up? Yes, certainly. That is the best way to answer it. Fair. Thanks. Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference back to the management for closing comments. Thank you everyone for your very interesting questions. I hope we have been able to answer all your queries. Thank you very much for joining us today, and look forward to interacting with you in the future. Thank you. Thank you very much, ma'am. On behalf of Dolat Capital, that concludes this conference. Thank you all for joining us today, and you may now disconnect your lines. Thank you. Thank you.