Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Indegene Ltd (NSE: INDGN) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Abhishek Agarwal — Investor Relations
Manish Gupta — Chairman and Chief Executive Officer
Suhas Prabhu — Chief Financial Officer
Analysts:
Prakash Kapadia — Analyst
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to the Indigen Limited Q4 and annual FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone port. Please note that this conference has been recorded. I now hand over the conference to Mr. Abhishek Agarwal, Head of Investor Relations Indigen Ltd.
Thank you. And over to you sir.
Abhishek Agarwal — Investor Relations
Thank you Moderator. A very good morning to all of you and thank you for joining us today for Indigene’s earnings call conference for the fourth quarter and full year ended financial year 2026. Today we have with us Mr. Manish Gupta, Indigenes Chairman and CEO and Mr. Suhas Prabhu, CFO to share the highlights of the business and financials of the quarter. I hope you have gone through our results release and the investor presentation which have been uploaded on the website and as well as the stock exchange website.
The transcript of this call will be available in a week’s time on the company’s website. Please note that today’s discussion will be forward looking in nature and must be viewed in relation to the risks pertaining to our business. After the end of this call in case you have any further questions, please feel free to reach out with the investor relations team. I now hand over the call to Manish to make his opening remarks.
Manish Gupta — Chairman and Chief Executive Officer
Thank you Mishek. Good morning everyone and welcome to Indigene’s Q4FY26 earnings call. I want to start by acknowledging what this quarter and the fiscal year represent and not just in numbers but also in strategic progress. FY26 was a milestone year for Indigene on two fronts. Q4 FY26 was the first ever quarter in our history where our revenues exceeded 1000 crores and for the full year our revenues crossed 3500 crores. This is another first thresholds crossed in a single quarter. More importantly, these are not isolated milestones.
These are culmination of deliberate compounding work across our customer portfolio, our domain capabilities, our technology stack and our people. I will cover four topics today. Our customer portfolio performance, our Genai led innovation wins, our competitor differentiator and our forward outlook. My colleague Suhas will take you through the financial details. So let’s get into the financial snapshot. As I said, this was our Q4 was our first thousand crore plus quarter FY26 our revenues came in at 35,105 million which is our first more than 3500 crore year.
Our growth for the year in terms of in INR was 23.6 and in dollar terms 18.2 year on year. Now let’s talk about our customer debt and relationships. I’m going to start off with the top 20 now across our 27 years in life Sciences and is operating partner to all 20 of the 20 global pharma companies. We have built a kind of relationship density that compounds over decades, not quarters for our top 20 customers. FY26 was a year of strategic deepening. We expanded significantly with several of our top 20 accounts.
Let me start with the top customer, our largest customer. This customer is broadly stable. In FY26 there’s a bit of a hold due to a delay in a highly anticipated breakthrough as we continue to invest in the relationship. The breakthrough came at the year end. We won a significant tectonic engagement starting with Germany. And Suas is going to talk about this later when he talks about the deals in the quarter. Now this win matters not just in its own right but as a very important beachhead with early results demonstrating value.
We are now actively in conversations with additional markets. The potential here is pretty significant and FY26 is where we expect it to convert into visible growth. And we are hoping this customer is going to cross over and become our first $50 million plus customer. Another milestone, a third customer account this year crossed the $25 million revenue threshold, reinforcing the depth and stickiness of our relationship. Finally, in Q3 of this year we closed a multi year omnichannel deal exceeding 10 million in ACV.
This is a fairly strategic deal which is going to be a template probably for the industry with a very large company and has positioned us very strategically in this client. The latter half of FY27 will see this deal converting to revenue across the top 20. As a group, revenue grew from 22-8082 million to 25,200 million in FY26. Steady compounding expansion driven by portfolio breadth and recurring engagements. With that let me move to beyond 20. This has been faster growth on an expanding base. And this is where I want to spend a moment because the growth beyond our top 20 tells an important story about indigene scalability.
Our total active customer base grew from 73 to 91 during the year. The number of customers contributing more than a million dollar in annual revenue grew from 41 to 53, an approximately 30% increase growth in this cohort outpaced the top 20 on a percentage basis, demonstrating that our land and expand model is working further down the customer pyramid. Several of these newer relationships have already scaled to 5 million ACV engagements. The message here is clear. Indigenous is not just a top heavy business dependent on a handful of accounts.
We are building a diversified, durable portfolio with accelerating momentum at every tier. This is the engine that compounds the outside top 20 cohort is where today’s 1 billion relationships become tomorrow’s 25 million relationships. And FY26 already saw multiple new customers cross the 5 millionth ACV threshold. The progress we had inside the top 20 over the last decade is now playing out one tier down and it is doing faster because of few things. One is our own credibility and scale as a company and also because Genai compresses the time to value.
Now let’s talk about some of our AI LED solutions where one of our values innovation is truly in motion. AI has been at the core of Indigene’s strategy for a decade. I remember setting up the office of cto more than 10 years back and starting investing heavily just in AI. The tangible proof our ability to leverage AI is visible in our industry leading revenue per employee now at approximately USD 75,000 per annum up from USD 56,000 three years back. This is a step change in productivity driven by embedding technology and AI into how we deliver coupled with our predominant managed output outcome pricing model.
And we have not stopped. We have a program called Transform AI inside the company. This program is targeting a further step change in adjusted revenue per employee as we continue to win upstream in adjacent areas and the new revenue pools opening due to AI. All this stuff while we re engineer our own processes from the ground up. This is what gives us confidence not only in our competitiveness but also on the operating leverage in the coming years. What has changed in FY26 is the pace of customer adoption and and the size of the mandates we are winning.
On behalf of Genai LED solutions I will talk you through some specific wins, each demonstrating a different dimension of our capability. Let me again talk about the Genai powered Omnichannel orchestration deal with the top five customer which I alluded to in our customer segment just a few minutes back. This customer selected indigene for omnichannel orchestration using our Envisage platform and Tandem data capabilities acquired through Biopharm. The mandate covers personalized gen AI targeting across a multi product US portfolio which is north of a billion dollars approaching patent Expiry we are deploying on an outcome focused commercial model maximizing the profitability window of mature assets.
This is Genai embedded directly into revenue outcomes of this client. With that let me move to another one. Now this is end to end commercialization for a mid sized biotech firm. A mid sized biotech firm chose indigene as its sole commercialization partner entrusting us with full life cycle CRM implementation, global marketing, content creation and multi channel deployment. This is an integrated model that differentiates Indigene a single partner capable of running the entire commercial engine. Here the client actually said this is not while we’re doing CRM implementation, it’s not just technology implementation, it’s a business transformation project, an engagement and we need somebody who understands our business well.
Let me talk about Andabhan an emerging pharma company for a complete product launch. An emerging pharmacy engaged indigene to manage an end to end product launch across both commercial and medical functions. This is a replicable blueprint for hundreds of mid tier and specialty pharma companies entering commercialization. A segment we are deliberately targeting as a high growth opportunity. Let me move to the fourth one, AI driven pharmacovigilance or safety. This was a large medical devices client.
For a large medical devices client we are now managing global pharmacovigilance workflows using our proprietary NAEM NEXT adverse event management technology which is all AI based. This has significantly reduced manual case processing volumes and accelerated aggregate reporting timelines. The wind demonstrates our AI led innovation extends into medical and regulatory domain not just commercial. And given I just spoke about medical regulatory domain, let me talk about next one on the regulatory side.
After having spoken about safety, we set up a global innovation center model for a very fast growing company. More than $100 billion market cap. Within our enterprise medical services segment we piloted a global innovation center where we are reimagining R and D operations from the ground up. We are using Genai to accelerate FDA submissions and compress molecules speed to market. If this scales as anticipated, it represents a structural change in how pharma companies approach R and D operations.
You think about it, you’re cutting down the cycle time from couple of months to filing to a few weeks and that is unlocking significant value for companies and of course for patients and and indigenous. The one partner enabling it. The next one I’m talking about is super exciting. Although it’s a pilot very early days but it has the potential to truly transform the industry agency less AOR three months to three days, three months to three days. This is what we demonstrated in a top 20 company. For a very strategic upstream brand work, we piloted an agency of record model without the agency working with a large pharma customer.
We demonstrate the ability to create scientific briefs, creative and new final concepts in three days with our content super agents. This is what typically agency of the card in the United States Europe typically does in a few months and a very expensive process. This included doing a quick voice of the customer research, primary research using synthetic kols, using our proprietary indices and tandem data products. This was achieved through live co creation workshops with clients replacing isolated agency processes with real time technology enabled operating model.
This pilot along with what I spoke about, the regulatory affairs, the global innovation model have genuine industry transformational potential. We are watching adoption signals closely and very confident these pilots will succeed and get into real engagements in this financial year. Given the strategic nature of these engagements, we continue to over invest in them. We are already seeing significant interest in this engagement in the industry overall and we are talking about them with all the clients and people are very open and receptive to learn from these and we believe this has the potential to position us very strongly for the future.
I also want to talk about what specific sets us apart when we win these deals and what we learned in FY26 because it shapes everything we do Genai equalizes access to technology, it does not equalize access to knowledge. Every service firm now has the same foundation models, the same APIs, the same coding copilots, what separates winners from the rest of the depth of domain knowledge they bring on top and how systematically they convert it into agentic, human and loop workflows to deliver real business outcomes.
For indigene with 27 years of life science expertise and for third of our workforce in deep domain roles, medical within medical, different therapy areas, different specializations, brand creative, digital analytics, tech, you name it. I can go on and on. Experiences of nuances of all the regulatory and critical workflows, our own proprietary data. These things are just not relevant in the AI world. They are absolutely essential. These six wins are not isolated. They roll up into five next generation operating models we are now actively running in the market.
One click Submissions Humanless medical legal review processes, agentic or AI embedded engagement and intelligent R and D operations. Each one of these replaces a manual fragmented industry process with a platform driven AI embedded one. Each is a category we believe indigene will define in years to come. With that let me move to another important thing which we have been grappling with for some time and it’s important that we talk about this very directly. Our category we are a strategic operative partner for life sciences.
The most common mistake we see how we are analyzed is the one we want to correct today. Indigen is not an IT services company that happens to serve life sciences. Indigene is a strategic operating partner for the life science industry. Purpose built over 27 years to design and run complex regulated medical, commercial medical and R and D operating models that define how this industry, very important industry works. This distinction is not semantic, it is structural and it changes everything about AI, affects how AI affects our business.
This isn’t a claim, it’s a pattern. Every decade one force has reshaped life sciences. In the 1990s it was globalization. Unfortunately for the industry, we were not there as a company that point in time. In the 2000s it was moved to digital. We are the ones who built digital field engagements very early on in 2010 it was content at scale, automated MLR and bunch of things like that. We built platform driven content operations. Now as AI at work, we already have and continue to run embedded AI operations at scale.
And we’ve been doing this for a decade. When the industry transform indigenous leads, we don’t react. We are already running the new model and as I mentioned, and I’m going to say again, we started a decade back. Four structural differences define our position and let me unpack each of this please. This is fairly critical. We are a revenue partner, not a cost partner. We are embedded in the commercial and medical functions that generate revenue for our customers. Our primary stakeholders in client organizations are the chief marketing officers, the brand heads, the therapy heads, chief medical officers on the medical affairs side, head of regulatory safety.
These customers do not come to us to cut costs. They come to grow our revenue, to grow their revenue. Accelerate launches, improve pipeline success, manage compliance and risk for them. AI is a growth enabler for our clients, not a signal to reduce spend on partners like indigene. The next one and fairly important domain led judgment. Intensive work. That’s the work we do. Therapeutic content strategy, regulatory submissions, pharmacovigilance, omnichannel orchestration across the globe and very different markets requires deep domain judgment that AI augments but is not replacing.
And again I want to emphasize these are in regulated areas, very regulated areas. This fundamentally different from coding or infrastructure. The AI deception is far more direct. The third one and something which we I remember talking to a lot of you whom we met during the road shows in 23 are outcome aligned commercial model in an AI enabled world. Effort based pricing is Breaking down. Clients don’t pay for hours for stuff which AI does in seconds. Outcomes are becoming the new currency and we’ve been operating on output and outcome based contracts for years.
We did not have to convert. We are the ones who wrote this playbook with some of these. Let me take a step back and look at actually who plays in our space. Who are the players? Competitors. Strategic advisors bring frameworks that exit before execution. Global integrators bring scale but lack life sciences depth. IT offshore scalers compete on volume efficiency, but that is a fundamentally different category from ours. Tech boutiques have depth that lack platform leverage with its tech or operating model.
Indigene is the only player in life sciences that combines deep domain expertise, embedded AI platforms and outcome ownership at enterprise scale. Our true competition is agencies and CRO and we are taking share from them accelerated by Genai and the pie for us itself is growing as we run the themes I just spoke about. We are absorbing spend pools that did not previously sit with service partners like US Agency created budget, CRO, clinical operations, internal regulatory costs. Genai is just not shifting share.
It grows our addressable market. With that let me come back to FY26. FY26 is not just a financial milestone delivered four strategic achievements that set up in the gene’s next chapter not only for FY27 but beyond. We made three acquisitions. BioPharm strengthened our omnichannel data and targeting capabilities in the commercial segment. WARN and CAKE Communications are new market entries. They are strategic additions of people with deep expertise and local market knowledge in key European geographies.
This matters because as we take our global delivery model in Europe, credibility and relationships on the ground are decisive. We just spoke about our Tectonic engagement with the largest client in Germany and now you can understand why we did CAKE as an acquisition. These teams give us exactly that. The ability to expand engagements from regional to global with local legitimacy. Tectonic at scale. That’s the next one. Tectonic is our transformation model that combines Genai with deep creative expertise to disrupt the traditional agency approach and of developing creatives through effort intensive cycles that stretch over months.
By the year end we have secured five customers. Two of them have already transitioned from pilot projects to long term engagements. Crucially, the Q4 win in Germany with our largest customers provide strong Momentum heading into FY27 the traditional markets actively in conversation. Tectonic is on track to become a material growth driver for Enterprise, Commercial and FY27. Third one and we spoke to you about in our Q2 earnings call. We recruited senior leadership, talent and thought leaders across our commercial medical leadership, strengthening our ability to engage at the C suite level.
And we’re having more and more of those conversations as we pursue more complex, larger transformational mandates for our clients. Last but not least, technology leadership. We maintained our innovation edge by embedding Genai across the platform. Our next generation content super app and medical writing platforms, both built by reimagining end to end customer workflows, are now in active deployment. Cortex is continuing to scale and get embedded in all the stuff which we do. These are not incremental upgrades, they’re category defining products.
Together these four moves in organic depth in Europe, tectonic at scale, senior go to market bench and category defining platforms are what gives us conviction and growth in FY27 and well beyond. With that, let me pass it over to Suhad.
Suhas Prabhu — Chief Financial Officer
Thank you Manish Good morning everyone. Let me dive straight into the financial performance for the quarter and quarter four. Revenue came in about 10,000 million INR the first quarter in Indigene’s history to cross this threshold, growing 6.5% quarter on quarter and a strong 32.8% year over year. For the full year the revenue was rupees 35,105 million, reflecting a 23.6% growth in INR terms and 18.2% in USD terms ahead of FY25 on both measures. Moving on to profitability, our Q4 adjusted EBITDA came in at rupees 1889 million growing 23.2% year over year.
The full year adjusted EBITDAs totried rupees 6793 million up 20.8% year on year effective January 2026. We have categorized our forward contracts as cash flow hedges under Indas 109 and the adjustment to the EBITDA is made to reflect the impact on profitability if the contracts that were contracted between April 2025 and December 2025 were also considered as cash flow hedges effective start of the year. We had indicated this matter to be under consideration in our earlier call. The high volatility in exchange rates, especially the depreciating INR against USD towards the closing days of the quarter has resulted in an incremental charge of Rupees 241 million in Q4 on the unexpired forward contracts and therefore this is the adjustment that we have done in the EBITDA from a like to like comparison.
Considering the charge, the reported EBITDA would be lower at rupees 1648 million rupees. Moving ahead to PAT, we had a lower interest income due to lower yields and a higher amortization as was mentioned in our Q3 earnings effective the acquisitions that we concluded in the recent past. Further, we have provided rupees 203 million towards the estimated cost of settling the US class action lawsuit filed in 2020 alleging breach of PCPA. I will delve more on this matter a little while later. This is a one time non recurring provision reflected as an exceptional item and this impacts the PAT for Q4 and FY26 adversely.
Hence the Q4 pact came in at rupees 797 million and a full year PAT of rupees 4011 million, a 1.4% decline excluding these non operational one time expenses and factoring retroactive adoption of the cash flow hedge accounting from the start year PAT would be higher at rupees 4583 million growing 12.7% year on year. On an adjusted basis, the underlying profitability of the business is meaningfully stronger than the reported figures suggest and the year on year trajectory is firmly positive. I request you to refer Slide 15 of the Investor Deck for more details.
Coming back to the exceptional item and the provision of rupees 203 million. This is pertaining to a long outstanding matter, a US class action lawsuit in 2020 breach of the Telephone Consumer Protection act which we had disclosed in our DRHP RHP and provided updates as the case made slow progress over the years in our subsequent financials. In January 2026 both parties commenced a mediation process as was recommended by the court with multiple rounds of negotiations over the last three months facilitated by the court appointed mediator.
We believe that we have now reached a stage of potential settlement and an ability to quantify the liability versus the terms laid by the mediator. As of today, the mediation process is close to completion with the terms being drafted while the court approval is still awaited. Since we are making this provision basis, such terms and the rupees 203 million is the provision of the anticipated settlement. Further, the origin of this case relates to an engagement in FY 1920 where we used fax as a channel for outreach.
Faxes were rarely used prior to this engagement.
Operator
Sorry to interrupt in between sir. You were not audible.
Suhas Prabhu — Chief Financial Officer
Am I audible now?
Operator
Yes Sir.
Suhas Prabhu — Chief Financial Officer
Thank you. And hence we do not believe that there are any further such liability exposures beyond the one instance that we had in 2020. With that I would want to spend a moment on the strong cash position. Cash generation is also another way to assess the operating health of the business and not just pat on that measure. FY26 was a standout year. Operating cash flows were Rupees 6508 million versus Rupees 4419 million in the prior year which is a 162% ratio on PAC. This is of course higher due to the higher non cash expenses and amortization charges but also an improvement in the DSOs to 63 days from 72 days in the past year.
Free cash flows were strong rupees 6065 million versus rupees 4119 million in the past year. Our balance sheet at the year end reflects this Trend. We closed FY26 with a cash and investment position of approximately rupees 15,385 million, just rupees thousand to 58 million lower than FY25 despite rupees 7253 million of outflows towards the acquisitions that we made during the year. With this let me move on to the dividend announcement. Consistent with this cash strength and reflecting the Board’s confidence in the business, we have proposed a final dividend of Rupees 2.25 per equity share for FY26.
This compares to Rupees 2 per share last year, a 12.5% increase. This recommendation is subject to shareholders approval at the upcoming agnostic and reflects both the strength of our FY26 earnings and our commitment to delivering consistent returns to shareholders alongside continued investments. Moving further to the segmental performance, both Enterprise Commercial ex BioPharm and EMS grew by approximately 17% and 16% year on year respectively. Even BioPharm acquired in October 2025 grew by 15% sequentially in Q4.
Our geographical mix remains stable with North America at 71.6%, Europe at 25.5% and the rest of the world at 2.9% with North America contribution increasing marginally by approximately 2% due to BioPharm which is entirely a US focused business. Importantly, the pace of customer conversations and AI driven innovation is now distributed across both medical and commercial segments and this gives us confidence that both Enterprise Commercial and Enterprise Medical will be meaningful growth contributors heading into FY27.
Finally coming into our Q4 deal activity, our Q4 bookings reflect sustained deal momentum. We closed one deal of $3 million plus ACV in our clinical business with a new customer. Further, we closed seven deals of $1 million plus ACV during the quarter, four of which are from our top 20 customers. Adding to the Enterprise commercial segment including the tectonic engagement for Germany with our largest customer. Further, there is an expansion of an existing omnichannel project with a mid sized pharma company and we signed two engagements with new customers, an engagement with a Biotech player providing MedInfo services which is part of our enterprise medical segment and an engagement to operationalize core digital commercial capabilities for an upcoming pharma company’s new launch of the drug pre post launch activities.
These wins confirm that our go to market investments are translating into consistent new pipeline generation and conversion. These wins combined with earlier wins provide revenue growth momentum heading into FY27. Further, you will also recollect the investments that we made resulting in 150 basis points impact on our EBITDA margins that we mentioned few quarters ago. With the growth momentum we believe that we are on track to improve our profitability and ebitda margins in FY27 and the second half of FY27 will see us revert back to the earlier levels of higher margins with these investments getting fully absorbed and delivering growth.
Further, we will also see a positive impact of the interest income with the high cash balances and stable yields, amortization stabilizing and coming off towards the later half of FY27 and the impact of the one off and exceptional items fading away. And we believe that the impact on fact in FY27 will see a significant upward movement with that. Let me pass it on back to Manish for the outlook.
Manish Gupta — Chairman and Chief Executive Officer
Thank you again Shivas 12 months ago as we entered FY26, I used the phrase cautiously optimistic. I want to be precise about how I would characterize the mood entering FY27 and why it is meaningfully different. The three concerns that warranted caution a year ago, new US administrative uncertainty, regulatory policy overhang and a macro volatility have largely been resolved. The pharma industry demonstrated its resilience and strategic importance through CY 2025 in the industry growth of 9% versus 6.4% in CY 2024.
Looking at it, the industry is positioned to grow at a healthy 5 to 8% CAGR from 26 to 28. This is our customer base, stable, funded and growing. Against that backdrop, our own pipeline entering 527 stands stronger higher than last year with balanced strength across both our top 20 customers and outside top 20 cohorts. The diversification of our pipeline is as important as its size. It means you’re not dependent on a handful of renewals or one large deal closing. I want to be direct. We are not providing formal revenue guidance.
What I will say is this. Our customer portfolio is growing in both depth and breadth and the outside top 20 segment is going faster. Our Genai LED solutions wins span across every customer segment and both business lines, commercial and medical and it is gaining significant traction. Tectonic has customer validation and is set to generate meaningful FY27 revenues. Our pipeline is larger, more balanced and better qualified than at any prior year end. Our competitive position is trending significantly in context of AI industry trends.
In an AI led world, the competitive structure of a market is being rewritten in our favor. Agency and CRO spend consolidating into specialized technology LED partners and indigene is the most credible such partner in life sciences and this trajectory extends well beyond 27. We believe tectonic AI led omnichannel teams, AI embedded operating medical operating models, top 20 cohort, outside top 20 all will continue to mint new 25 million plus relationships and have the potential to drive multi year growth.
With that I would say we enter FY27 not cautiously optimistic, but excited and confident. Confident to convert pilots into platforms, platforms into operating models and operating models into the industry’s new default. This has been Digene’s pattern across every prior inflection life sciences and it is the pattern we are running now from promise to performance. That is what we believe FY27 and the years beyond will demonstrate. That’s all I had. We can open it for questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press Star and then two participants. You are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. A reminder to all you you may press STAR and then one on your touchstone telephone to ask a question.
Abhishek Agarwal
We can start the questions. We can start the questions please.
Operator
We will take the first question from the line of Prakash Kapadia from Kopadia Financial Services. Please go ahead.
Prakash Kapadia
Yeah, thanks for the opportunity. I had two questions. Revenue per employee has increased to around 75k from $67,000 last year. Is it is to on site mix increase or there is something else or any other matrix which you can highlight. And secondly, you know if I look at more than 10 million revenues there are you know, 10 clients which are same as compared to last year. So is there a you know product life cycle for larger clients? Which is, you know, showing up there because you know, we’ve not seen any increase in number of clients in that cohort.
So these are my two questions. Thank you.
Manish Gupta
I’ll start off with the latter one and pass it on to SUAS over here. That cohort, you write, it’s stable. It’s also a function that at least one of our clients was just stacked below that 10 million. Right. And from a categorization perspective, 9.9, something falls into to the other bucket. And these customers are taking a bit more time to change their operating model, adopt some of the platforms and discussions we’ve been having with them. Having said that, we are very bullish that this cohort also will increase.
It’s just a matter of cycle times and they don’t change management internally. So. Asu.
Suhas Prabhu
Yeah, thank you Manish. And moving to the first question on the revenue per employee in our fact sheet, the KPIs, you’ll observe that on site offshore mix has remained fairly stable over the past many years. Actually on site, increasing marginally over the last couple of years. But having said that, I would like to highlight that over the last five years RPEs have consistently grown from $51,000 to close to $75,000 today and also from $66,000 to $75,000 on a year on year basis. So there is a sustained effort to increase this in combination with the technology impacting our operations positively, combined with the outcome or output based pricing model in our engagements which help us retain the benefits of the productivity increase without being dependent on timesheet based or input price.
Manish Gupta
I would actually add one more line. As I said earlier, in this world, competitive structure, the market is being rewritten and right now all the directions, it looks like that it’s being written in our favor and hence the quality of the kind of engagements we are running with our customers are much more strategic, which also is resulting in the kind of contracts we drive.
Prakash Kapadia
Sure, sure. And lastly Suaz, is it fair to assume data days will be more or less stable at these levels and we can have growth also or any major change envisage going forward.
Suhas Prabhu
So debtors have of course reduced significantly resulting in higher cash flows and we are seeing a trend reducing from the 80s about five years ago to the 60s as we speak. But having said that, I would guide towards mid to mid-60s to 70 days on a steady basis.
Prakash Kapadia
Sure, that’s helpful. Thank you so much and all the best.
Unidentified Participant
Thank
Prakash Kapadia
You.
Operator
Thank you. We will take the next question from the line of Prolin Nandu from Edelweiss Public Alternatives. Please go ahead.
Unidentified Participant
Yeah. Hi Manish and Suas, thank you so much for giving me the opportunity. Just two questions from my side. One is on this AI initiative that you have talked about. Now what I gather is that what is our defendable, I mean what is, what is it that works in our favor is the domain knowledge and the regulatory aspect of the industry in which we deal with. Just wanted to, wanted your thoughts on how defendable are these moats, so to say. Don’t you think that over the period of time maybe this domain knowledge can also be commoditized by some of the, you know, some of the large LLM players like they have been doing in other industry?
Why do you think that cannot happen in our industry? So that’s my first question on the AI side and the second question is on the margin, right where you have talked about some of the investments that you are making and you coming back to your previous high sometime in the second half of FY27. My question here is that what is the risk that, you know, this could probably catch up to stay relevant in the AI world, we continue our investment part and not bear the fruits of that operating leverage that we are envisaging.
So yeah, pretty much the questions are more on a medium term outlook and to do with AI.
Manish Gupta
It’s a, that’s a fair question. Thank you. So let me start with the first one. Our real moat over here, which we continue to invest and solidify every day is domain expertise. Right. And domain expertise is just not a very broad term. Right. For example, when I spoke about this, the whole three day, three months to three days thing, that required therapeutic area expertise, that required broader medical expertise, that required your creative expertise, very market nuanced expertise for different market.
It also used our own proprietary data sources. So along with domain expertise we are also bringing in our proprietary data sources. We believe that the LLMs and most of the cases we are seeing those that whenever we are building our tech products, LLMs on their own are not solving for a problem. We are using all the LLMs, all the Frontier models. We are working with AI labs, names which you might not have heard of but are cutting edge labs in the different parts of the world. But we have to bring couple of them together along what our technologies start to solve different problems.
And the reason why we are able to articulate that well is again the domain expertise. So at least in a medium term, call it three to five years, we don’t see LLMs having the ability to do this LLMs are not still operating. They don’t have the reliability in when you’re talking about them in operating grade. So the human loop is going to be actually even more important. By the way, there has been an FDA kind of call out to one of the companies within just last two weeks, a warning letter that looks AI generated.
Now what happens in the medium to long term that really is still out, but domain expertise and data embedded in these platforms, which are going to be a combination of multiple platforms is the approach we are taking and we believe they are fairly defensible in the medium term. And the second question was the AI investment. You’re absolutely right over here. The reason why you see us talking about our margins recovering over couple of quarters is because we continue to invest. We have baked in a bunch of investments this year.
Our R and D cost as we call it has gone up. It’s above 2% of our revenues. We’re making those investments. We have made GTM investments, we are increasing those investments as well. And a bunch of areas in the domain expertise because customers also need much more handholding that they’re going through this turn. So those investments have been factored in. And one more, one reason why we’re not saying that our margins will expand beyond what they used to be, while they might be leverage over there is because we believe that anything above, let’s call that range which we are operating in, we are going to reinvest in the business.
But maintaining this broad range is very doable as we see it today.
Unidentified Participant
Thank
Manish Gupta
You
Unidentified Participant
Manish and all the very best. I’ll go back in the queue if I have more questions.
Manish Gupta
Thank you.
Operator
Thank you. We will take the next question from the line of Raghav Maheshwari from Kamathkya Wealth Management Private Limited. Please go ahead.
Abhishek Agarwal
Yeah. Hi sir. Thanks for the opportunity and congratulations on a good top line growth. So sir, my first question, building up on the question that the last participant had, I just wanted to get into a bit of a technicality here. Sir. We talk about generative AI, we talk about, you know, cortex AI. Just wanted to understand what kind of AI is that? Is it like an in house trained lln that is, you know, or it is like a wrapper with proper roles defined by your domain expertise. So just wanted to understand what kind of AI we are into.
Manish Gupta
So what we are doing is, let’s think about it. There are frontier models and there are lots of them. There are obviously the large language ones. There are much more specialized ones. We are using those along with a Bunch of very specialized things, for example, computer vision that we partner with somebody. Large action models, that’s another category. So I can go on and on. There are a bunch of these very specialized things along with a large frontier model. We are partnering a bunch of those things.
We have our own engineering team which is building various stuff. Those are the platforms which we are integrating from a pure tech perspective. And we realize different combinations work well for different use cases. Now what is Cortex? Quartex is a knowledge engineering platform which is meant for developing agentic workflows with all the security, enterprise security, scalability. Right, Meant for life sciences. That enables us to build agents quickly using a knowledge engineering approach. We also decoupled the domain layer from the technology layer so that we can very quickly scale up many use cases, which is what Cortex has enabled.
So that’s the broad approach. Now we continue to build agents. And by the way, agents is just one part of it. How do you reconfigure workflows? How do you think about skills in context of that workflows? All that stuff is up for change, right? So those new skill sets, new workflows, along with this agent, that’s the direction the industry is moving in. And of course these agents are using the platforms I spoke about.
Abhishek Agarwal
Right, sir, that was quite information. And so second thing which I wanted to ask was a little bit, you know, if you can throw light on FY27, what’s going to be some, you know, growth drivers for the year? For the year and what kind of, you know, revenue trajectory are we looking for and what, what and most importantly, what are we planning to do differently than what we did in FY26?
Manish Gupta
Actually, FY27 I think is going to be more a year of scaling what we did in FY26. FY26, we did a bunch of things which are different. We made investments in talent, we crystallized on solutions with a bunch of our clients and across the board medical. We won some very marquee engagements I spoke about earlier. So I don’t think we are in a mode to do anything different from a scale perspective. Everything which we started on FY26 we feel indicated that we are moving in the right direction. And FY27 is going to be doubling, tripling down on them to scale, whether it’s on the customer side, engagement side, revenue reform, rejigging our own internal ops and ways of doing things.
You want to add on,
Suhas Prabhu
Maybe to put a little bit more color to that, What Manish mentioned on the Genai led wins. Right. Our customer engagements which have moved from experimentation, you know, certain free kind of POCs to hard dollars and long term engagements and commitments that combined with also the tectonic investments that we have been doing over the past many quarters now getting crystallized with two customers moving into long term engagements. More specifically even our largest customer signing up with Germany as a region but also active and very high probable pipeline for many other regions with the same customer.
And finally, I would add the consistent $1 million plus wins that we have been talking about for the past few quarters give us the confidence of the strength of the revenue visibility combined with the strong pipeline that we continue to generate and carry as we speak. One last final comment. The $10 million win that we had mentioned in quarter three has kicked kicked off and started from a revenue recognition perspective. The revenue recognition is deferred because this is an outcome based pricing model and will be entirely recognized in FY27.
So these are some of the specifics of why we feel confident as we move into FY27.
Operator
Thank you. We will take the next question from the line of Lakshmi Narayan from Tonga Investments. Please go ahead.
Unidentified Participant
Yeah, hi. Few questions from my side. I understand that we work with top innovator companies, just want to understand what kind of solutions we have for generic companies or even mid and small size companies because they may find it difficult to afford 70,000 revenue per person. So what kind of is it a market that exists or do we intend to expand it to either generic companies as well as small or mid sized companies in the.
Manish Gupta
Thank you. Arun, your question. So mid sized and small companies is something which we are expanding rapidly. We are seeing very significant traction. In fact, I spoke about some of the deals where we are launching a product for a small biotech. Right. And our model of launch is becoming the way to go for a lot of these companies. Actually we have a customer talking about us in public domain that they were planning to hire a bunch lot of reps but then obviously showed up and they had only 25 reps and getting everything amplified by our omnichannel engagement.
There’s another customer where we are doing pretty much end to end medical and commercial functions. So the whole let’s call it biotech smaller segment, that’s an attractive segment for us and we believe we’ll scale over there. That segment also seems to be getting tailwinds in general. The biotech environment in the US had become very tough from a funding environment. It’s coming up now, right. And it’s been on the upswing so that is one part as far as generics are concerned. We do some work with them.
We have some revenues coming from generics. But if I just contrast the opportunity we have with innovative pharma companies. Whereas I mentioned earlier that we believe we will have $100 billion clients in some years. Right. Versus, let’s say the other part. So we want to prioritize the resources accordingly.
Operator
Thank you.
Manish Gupta
We will
Operator
Take the next question from the line of Yash Mehta from Art Ventures. Please go ahead.
Abhishek Agarwal
Good morning. Am I audible?
Operator
Yes,
Abhishek Agarwal
You are. So, sir, I wanted to ask what has been the organic growth in constant currency terms in Q4, FY26
Suhas Prabhu
Constant currency terms year on year growth has been 12% organic and little north of 3%. You can look at even our financial disclosures in the investor presentation where we have provided the ex Biopharm Pro Pharma provisional financials and that provides more details beyond the revenue growth.
Abhishek Agarwal
Okay. And sir, how will the margins come out in FY23 considering the integration of Biopharm?
Suhas Prabhu
So the integration of Biopharm was successfully completed actually ahead of schedule towards the end of the transition. Services from the seller was originally planned to get concluded as of end of March. This transition. Completion of the transition would be adding two basically synergies on the GNA side. But as we tweak, we are also looking at synergies on data, subscriptions on the business operations and eventually go to market. And these will progressively start impacting us through the quarters in FY27 more positively.
But G and A would be the immediate impact that we anticipate to see coming in the next quarter itself.
Abhishek Agarwal
Thank you.
Operator
Thank you very much, ladies and gentlemen. We will take that as the last question for today. I now hand the conference over to Mr. Manish Kutsa for closing comments.
Manish Gupta
Thank you. I will close by thanking all our 5,000 plus whose dedication and expertise make every one of these wins possible. I also want to thank our customers for the trust they have placed in indigene and of course our investors and analysts for this continuous engagement and support. Thank you so much.
Operator
Thank you members of the management, on behalf of NBC Limited, that includes this conference. Thank you all for joining with us today. And you may now disconnect your lines. Thank you.
Manish Gupta
Thank you.