Ladies and gentlemen, good day and welcome to Ipca Labs Q2 FY27 earnings conference call hosted by DAM Capital Advisors Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then 0 on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors. Thank you, and over to you, sir. Thank you. Good afternoon everyone, a very warm welcome to Ipca Labs Q2 FY27 earnings call hosted by DAM Capital Advisors Limited. On the call today we have representing Ipca Labs management, Mr. A.K. Jain, Managing Director, and Mr. Harish Kamath, Corporate Counsel and Company Secretary. I'll hand over the call to Mr. Jain to, uh, make the opening comments and we'll open the floor for questions. Please go ahead, sir. Thanks, Nitin, and DAM Capital for organizing this call. Today's hearing call and discussions and answer given may include some forward-looking statements based on our current business expectations. This must be viewed in conjunction with the risk that pharmaceutical business face. Our actual future financial performance may differ from what is projected and perceived. You may take your own judgment based on information given during the call. Our domestic formulation business for Q2 FY27 has delivered growth of around 14% to our— and it has reached to around ₹1,157 crore as against ₹1,019 crore in Q2 FY26. Met September 2026, Ipca's rank remains 16 as per IQIA. Our market share has improved to around 2.11% from— as against 2.09% in September '26. Top 6 brands of Ipca are featuring among the top, uh, top 300 brands of the industry. Yeah. Out of the top Out of top 6 brands, Zerodha SP is the top brand of the company and it has improved its rank to 8th rank as against 11th in the Q2 FY Uh, Q2 FY26. Zerodha as an umbrella brand has crossed ₹1,500 crore sales as per IQI in September 2026. It has become the 4th largest brand in IPM. As per IQI, the On chronic segment, met September 2006, Ipca has achieved a growth of around 20% as against IPM growth of around 17%. And as per IQI, the acute segment, Ipca has achieved a growth of around 11%. We are at par with overall market growth there in Acute segment, largely because our— some of the portfolio like antimalarials and antibacterials are— antimalarials are declining. Uh, bacterials is having very marginal growth, and even cough and cold is having very low growth. On export formulation business, on standalone basis, Ipca has grown by 32% in Q2 FY27. to around ₹653 crore as against ₹493 crore in FY— Q2 FY26. Our promotional branded business in ROW markets has delivered growth of 19% for Q2 FY26. 7 to around ₹172 crore against ₹145 crore in Q2 FY26. Generic market excluding tender on, uh, I have delivered around 36% growth in Q2 FY27 to around ₹364 crore as against ₹268 crore in Q2 FY26. Institutional generic business has delivered growth of around 45% for the quarter. And API has delivered a growth of around 6% for the quarter. Our consolidated, uh, Q2 FY26 business has grown by around, uh, 14% to around ₹2,910 crore. As against ₹2,557 crore. For Q2 FY27, we continue to see significant price increase on inputs. Adjusted cost, shipping cost. And even fuel and your energy cost. In spite of all these factors, overall consolidated EBITDA margins has improved to around 22.97% in Q2 FY27 as against 21.68% in Q2 FY26. Standalone EBITDA margin of Ipca has improved to 26.61% in Q2 FY27 as against 25.46% in Q2 FY26. Having given the broad numbers, now I'll request participants to ask questions. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets 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 Saion Mukherjee from Nomura. Please proceed with your question. Yeah, hi, good evening. Uh, Mr. Jain, wanted to check on, uh, ZeroDoll franchise. Uh, what's the kind of growth you are seeing and if you can split between volume and price increase in this, and what's the headroom to grow this franchise? What would be the key drivers and any competitive pressure that you might be seeing in the market? Overall, for let's say April to September, if you look at Our pain segment has grown by around 14% from 1,000 internal numbers, from 1,206, uh, from 1,065 crore to around 1,216 crore. So we have, uh, this continuously growing at, uh, 14% for the first half of the current year. And in fact, in the second quarter this quarter of the current financial year, on pain segment, we have grown by around 16%. Yeah, the overall pain segment has delivered a number of around 628 crore from 543 crore. So we have recorded almost around 16% growth. So on continuous basis, both our portfolio of rheumatoid arthritis and osteoarthritis, which includes Zerodol and all rheumatoid arthritis products, that has— they are continuously performing and continuously growing in the range of around 14 to 15% kind of range. So we have absolutely no concern on that. And in fact, from current 1,500 crore of umbrella brand We are looking, uh, similar kind of growth to continue for next, uh, 3-4 years. Yeah. And so, you know, how much of the growth of, say, 14 to 16% would be volume-led? Uh, volume growth may be around almost around 8 to 8, 8 to 9%, and price growth may be around 4 to 4, 4.5% here. And do you expect the volume growth, uh, momentum to sustain? Yeah. Okay, and so the one other question was on, uh, growth and margin guidance. So if you can reiterate, uh, the numbers, uh, any, any fresh look you have for FY27? And how should we think about it? Whatever guidelines we have given earlier, that will stand. Yeah. In earlier quarters, we have given that— earlier quarter, we have given guidance that overall growth guidelines was almost around 13, uh, 12 to 13%, which was revised to 14 to 16%. So that would remain. And consolidated EBITDA margin guidelines was from 22% to 23%. That will also Thank you. And sir, what is your— we are not revising the guidance. Is that Kenny? We are not revising the guidelines. Okay, okay. Yeah, and also, and what is the medium-term EBITDA expectation, uh, let's say over the next 2-3 years? So where do you see EBITDA margin consolidated setting. Every year we should be improving by, by almost around 1% to 1.25% of EBITDA on consolidated basis, and Ipca EBITDA will go by almost around 1.5%, uh, standalone EBITDA. Understood. Okay, thank you. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and 1 now. Participants who wish to ask questions may please press star and 1 at this time. The next question is from the line of Shashank Krishnakumar from Emkay Global. Please proceed with your question. Hi, thanks for taking my question. So I think this quarter for Unichem QOQ, we saw sharp gross margin uptick. If you could just share what drove that and whether this is a figure that we can work with going forward as well. And also for Unichem, also are we sticking with their earlier guidance of 10% top line growth and around 13% margins? Let's see, Unichem has delivered almost around 11 point— 11.3% kind of EBITDA margin in current quarter. I think overall, because of freight increase, the freight was significantly increased in this particular quarter. And freight number says almost around ₹30 crore extra has gone in this quarter. The— if you look at the other expenditure of Unichem, that has moved from ₹142 crores to ₹189 crores. There is an increase of almost around 47% in— 47 crore in other expenses. Out of which almost ₹31.2 crore is only increase in the freight expenses. It's all because of significant increase in the increase in overall freight costs and also overall little increase, let's say, your air shipment has also gone up because of overall time the shipping lines are taking to deliver the goods and all that. So some of the consignments are— was to be sent by air and all. So air percentage of overall has gone up almost in this quarter to around from 5 to 5.6% to around 25%. So that has taken almost around ₹30 crore out of this freight expenses out of EBITDA, that has gone, and that has resulted in little lower EBITDA margin. Otherwise, let's say that European business has done well. Brazil, till now they were incurring losses for first 2 quarters of the current financial year. That, that has started delivering now the profit. So in time to come, Brazil business will also move up. So if situation normalizes the margins can move up, uh, because— but if your freight and all these cost, energy cost, and remains high Maybe it may remain between 11 to 13% kind of thing. EBITDA margin. And the GM that we saw this quarter is sustainable, right? Close to 48%. It may be 1 or 2% here and there vary because input costs are fluctuating too much. Yeah. Okay, uh, so if you could also call out the US portfolio growth, uh, both, uh, or Ipca, which is getting booked in Unichem, and the Unichem portfolio this quarter. Overall, overall, let's say US in dollar terms, if you look at overall portfolio growth, is almost around 9%. And, uh, Ipca's portfolio is, uh, let's say value growth is almost around 74% in dollar terms. So I think Ipca portfolio is, I think for the quarter has given almost around $5.8 million of sale. And Unichem's portfolio is almost around— has become $38.5 million for the quarter. Okay, sir, thank you. That's helpful. All the best. Thank you, sir. The next question is from the line of Rashmi Shetty from Dolat Capital. Please proceed with your question. Yeah, thanks for the opportunity, sir. On the institutional business, you earlier guided, uh, you know, ₹3 billion, uh, ₹300 crores for this year, and we have already done ₹236 crores in first year. You feel that it will be lumpy and in second half sales will be pretty low, or you are upgrading the guidance for that? Institutional business, normally we don't give any kind of, let's say, very aggressive guidelines because of, by nature of this business itself. We wish to be very conservative this year because of, let's say, when guidelines was given, I think overall, I think in first quarter significant amount of shipment which was to go in last financial year because of non-availability of ships and other things, those businesses got shifted in the first quarter of the current year, that shipment was almost around ₹25 crore. But in second quarter also, we have grown the good in this financial year. And trend would continue. this ₹25 crore was never taken into account in guidelines. So maybe it may become ₹325, ₹330, ₹340, but overall we don't expect this business to grow significantly. It may come down also next year, uh, here and there. Yeah, got it, got it, sir. And sir, on the, uh, on the branded business front, uh, we But we don't expect this kind of growth. Okay, so as of now we should maintain that, uh, ₹300 crores, uh, number for the full year? It will certainly exceed because say what should still maintain that 15% growth. So in generics and branded business, we should expect a little soft quarter in H2, right, to achieve the guidance? My business is going good on generics. We are delivering good growth overall, and branded business, let's say, overall in the First half of the current year has given growth of almost around 22%. Except one particular geography where West Asia shipment not happening in time has given some kind of decline in that business. A little bit by 3%, but overall, all other market has grown very well, in fact. So we maintain our guidelines of 15 to 16% growth overall. Okay. And sir, on the, uh, bookkeeping question, uh, on the interest caught Uh, part, y'all have repaid, uh, some debt, right, on the long-term borrowings, uh, and the interest cost was still high in Q2. Uh, if you can explain related to that and how should we see the run rate in Q3 and Q4. Our interest cost in Q2 has also come down. It's not gone up because last year we have paid our entire foreign currency debt which was outstanding in books because we were carrying the cash in books. So we, before this, around the time when the rupee depreciation started, we thought it prudent that let us pay every, all, all dollar loans in books. So right now we have only very small borrowing of around ₹155 crore or so on, on rupee term loan, which probably at the year end would be a We will close by around 70-75 crores. I think that, that's the balance going to remain at this. So yeah, and practically we are debt-free company because we are getting almost around ₹700 crore cash in books, and debts are hardly any. That debt also we are not paying because that debt is contracted at a very low rate compared to the current market rates of what we are realizing on deploying money in mutual funds and all. So, so we are not prepaying that debt. Correct, I understood. What I meant was that this ₹12 crore run rate, you know, which we have done in last 2 quarters, this number should decline in H2, right, because of the debt Yeah, yeah, it will decline. Yeah, it would decline. Yeah. Okay, thank you, sir. That's it from my side. Thank you, ma'am. Ladies and gentlemen, to ask a question, please press star and 1 now. Participants who wish to ask questions may please press star and 1 at this time. The next question is from the line of Nitin Agarwal from DAM Capital Advisors. Please proceed with your question. Thanks, sir. Just a couple of questions from my side. So on the, uh, if you can give us a little more color on how the UK and the Europe business have, uh, UK, Europe, and the Australia business have This quarter in the first half. Yeah, I'll give the number. Yeah. Overall, generics-wise, if you look at, uh, in Q2, European business has grown by around 23%. Australia-New Zealand has grown by around 24%. US has grown by 31%. Canada has grown by 45%. South African business has grown by 46%. Overall, so most, most businesses in generics has done well. And for UK, we had some issues here every now and then. So those businesses now stabilized for the UK? UK is the— my portfolio is growing. Last financial year we were facing a lot of problem in because of, let's say, our earlier kind of portfolio was just very, very old products, maybe genericized, 15-20 years old, and those products were selling below cost in the market. So last year in Europe, in UK, we have UK portfolio, we have suffered in the overall, I think, in the whole of the year, maybe around 2.5 million kind of loss in UK. But because of that kind of scenario, there are lots of disturbance in UK market today. That a lot of products are going in short supplies and all, and prices are returning back because situation of selling product at lower price cannot continue for long. So that has changed. And the European— our European subsidy, yeah, this UK subsidy has also delivered profit in this year, and UK overall business is moving up now. And sir, on our subsidiaries, if you can give us an update on how the various subsidiaries done. Let's say except one subsidiary which is Pisco, all subsidiaries have done well and they are all in profits here. Okay, this guy will still take some little more time because there are good order positions on their API side, and so maybe I think by next financial year, the things will start improving there. Okay, thank you, sir. Thank you, sir. Ladies and gentlemen, to ask a question, please press star and 1 now. Participants who wish to ask questions may please press star and 1 at this time. As there are no further questions from the participants, I now hand the conference over to management for closing comments. Thank you, and over to you, sir. Yeah, thank you, madam. Having answered all the questions, I think we can close this con call. Thank you everyone for participating in this conference. Thank you. Thank you, sir. On behalf of DAM Capital Advisors Limited, that concludes this conference call. Thank you all for joining us, and you may now disconnect your lines. Thank you.