Advanced Enzyme Technologies Ltd (NSE: ADVENZYMES) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Unidentified Speaker
Ronak Saraf — Investor Relations
Mukund Kabra — Whole time Director
Beni Prasad Rauka — Chief Financial Officer
Analysts:
Unidentified Participant
Umang Shah — Analyst
Sajal Kapoor — Analyst
Shreyansh Gattani — Analyst
Rohan — Analyst
Abhishek Navalgund — Analyst
Ravi Purohit — Analyst
Shubham Sehgal — Analyst
Chandramouli Jagannathan — Analyst
Presentation:
operator
Good evening ladies and gentlemen. I’m Aakash, Moderator for the conference call. Good evening ladies and gentlemen. I’m Aakash, Moderator for the conference call. Welcome to Advanced Enzyme Technologies Limited Q3 and 9 month FY26 earnings conference call. As a reminder, all participants will be in listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call please signal an operator by pressing star and then zero on the A Touchstone telephone. Please note this conference is being recorded. I would now like to hand over the floor to Mr.
Onak Sharaf, Manager Investor Relations. Thank you. And over to you sir.
Ronak Saraf — Investor Relations
Thank you Akash. Good evening everyone. Welcome to Advanced Enzyme Technologies Q3 and 9 months FY26 earnings conference call. We sincerely hope you all have gone through our financials and all the disclosures which has been posted in the Investor Relations section of our website. Today we have with us Mr. Vasanth Rati Chairperson, Mr. Mukund Kabra, Full Time Director and Mr. Bini Raupa, Group CFO. Today the management will discuss the performance and business highlights, update on strategies and respond to any questions that you may have. As usual, for the ease of discussion we will look at the consolidated financial.
Now I would like to draw your.
Ronak Saraf — Investor Relations
Attention to the fact that some of the information shared during the call particularly regarding our plan, strategies and the future outlook may contain forward looking statements. These statements involve inherent risk and uncertainties and are based on current expectations, forecasts and assumptions. The actual results may differ materially from those expressed or implied in these statements influenced by a range of factors including but not limited to economic conditions, change in government policies, regulatory developments and other unforeseen circumstances. Recipients are cautioned not to place undue reliance on these forward looking statements as they are not guarantees for future performance and should not be viewed as substitute for independent judgment.
The company undertakes no obligation to update or revise any such statements whether as a result of new information, future events or otherwise. Now. So without any further ado we shall commence this call. Over to you Mukun Sir.
Mukund Kabra — Whole time Director
Thank you Ranak. Good evening everyone. I really appreciate you all for taking out your valuable time and I extend the heartiest welcome to everyone joining us today on the conference call for the quarter and nine months ended 31 December 2025. The global markets are experiencing considerable disruption due to the imposition of US Tariffs leading to the shift in market dynamics. As the tariff situation continues to evolve we are well positioned to evaluate its impact given the significance of the Americas as a key export market for us. Concurrently, we remain optimistic based on the available news. Reciprocal tariff is reduced from 25% to 18% and the additional penal levy of 25% that had been imposed on India for buying Russian oil has also been dropped.
The overall performance for the period was mixed. While several of our businesses delivered healthy growth, others remained flat despite ongoing global uncertainties. Our focus on operational excellence help us maintain steady momentum towards the full year. Guidance Our top line for the quarter stood at 1,719 million reflecting a 2% year on year growth and decline of 7% compared to the previous quarter. On year to date basis revenue grew by 15%. EBITData came in at rupees 494 million which is 11% down year on year and 18% lower quarter on quarter while on YTD basis it grew by 11%.
EBITDA margin for the quarter stood at 29% and 31% and for the nine month of financial year 26 it stood at 31% as compared to 32% in nine months of financial year 25. Moving on to the profitability, our profit after tax reached rupees 432 million reducing 11% growth year on year and 3% decline quarter on quarter. On YTT basis it grew by 20%.
Mukund Kabra — Whole time Director
The PAT margin at 25% for the quarter and 24% for the year to date. Now I will take you through our segment wise revenue performance for the third quarter of financial year 26 and compare it both year on year and sequentially with quarter three financial year 25 and quarter two financial year 26.
Let’s begin with Human Healthcare, our largest segment. Revenue for quarter three financial year 26 stood at rupees 962 million making a 6% year on year decline and 21% on sequential basis while growth of 12% is observed in nine months year to date basis. This degrowth is on account of lower sales in the Pharma, API and nutrition business across both domestic and international markets. Human healthcare contributed 56% over total revenue in the current quarter. Next we have Animal healthcare revenue rose to 241 million delivering a 22% increase year on year 25% on sequential basis and 26% on year to date basis.
Annual healthcare accounts for 14% of the total revenue in the current quarter. Turning to bioprocessing, this segment recorded 13% year on year growth during the quarter, 41% sequential growth and 15% year to date growth. This this growth is primarily on account of robust Performance of our food business. The food business grew by 16% on year on year basis, 51% on quarter on quarter basis and 19% on year to date basis. The non food business degrew by 5% on year on year basis. It grew by 3% on quarter on quarter basis. While there is marginal increase of 1% on year to date basis.
Lastly, the specialized manufacturing segment remained flat on year on year basis. While it degrew by 16% on sequential basis. On nine month basis it grew by 25%. This segment represents 9% of our overall revenue in the current quarter. The quarter presented its share of headwinds. Nevertheless, we remain steadfast in our strategy and confident in the opportunities ahead. We anticipate that our strong growth trajectory will persist across all business segments in the foreseeable future. Moving forward, our primary priority is to enhance resilience throughout our operations thereby ensuring effective adaptation to the dynamic market conditions and emerging challenges.
With this, I will now hand over the call to Ravka Ji. He will walk you through the financial and key subsidiary numbers. Over to you, Ravi.
Beni Prasad Rauka — Chief Financial Officer
Thank you very much, Mukul. Good evening everyone. I hope you all are in good health and doing well on the company’s consolidated financial for third quarter and year to date nine months of fiscal year 2026. First, I would like to give comparison on year on year basis. This is Q3FY26. Revenue is increased by 28 million from 1,691 million to 1,719 million, a 2% increase. EBITDA is lower by about 11% at 29% as compared to 33% in the corresponding quarter of last year. So this is 494 million as compared to 553 million. Profit before tax has increased by 10% from 530 million to 583 million.
This is about 34% of our revenue. Profit after tax is increased by 43 million from 389 million to 432 million. This is about 25% of our revenue as compared to 23% in the corresponding quarter of last year. On Q1Q basis. Sequential basis revenue is down by about 7% from 1,845 million to 1719 million. EBITDA is decreased by 107 million from 601 million to 494 million. About 29% of our revenue as compared to 33% in the last quarter. Profit before taxes decreased by about 13 million from 595 million to 583 million. Profit after tax is decreased by about 15 million from 447 million to 432 million.
This is about 25% of our revenue as mentioned earlier for 9 months of FY26 versus 9 months of FY25, our revenue is increased by about 15% from 4697 million to 5424 million. This is about 15% growth. EBITDA is increased by 170 million 11% increase from 1488 million to 1658 million. This is about 31% of our revenue as compared to 32% in the last year.
Beni Prasad Rauka — Chief Financial Officer
Profit before tax is increased by about 20% from 1,439 million to 1,727 billion. Profit after tax is increased by about 212 million from 1,072 million to 1260. This is about 24% of our revenue as compared to 23% in last year nine months.
Regarding our subsidiary numbers, Destiny Biotech Quarterly numbers is top line of wines 159 million with EBITDA of 7 million and PAT of negative 4 million as compared to 172 million of top line and 22 million of EBITDA and 7 million of PAT in the corresponding last year Q3 for nine months. JC Biotech top line is 556 as compared to 488 resisting 14% increase. EBITDA is 77 million as compared to 66 million 17% increase and PAT is 27 million as compared to 19 billion 39% increase. Evoke’s revenue stood at 87 million and EBITDA of 22 million and PAT of 15 million for Q3 of this year as compared to 64 million, 12 million and 4 million respectively of revenue, EBITDA and PAT the nine months Ewok’s revenue stood at 231 million as compared to 160 million registering a 44% of increase and EBITDA is increased from negative 8 million to 53 million in nine months and PAT is 36 million as compared to negative 30 million.
Our health care bifurcation Our India sales stood at 481 million as compared to 460 million in corresponding quarter of last year. International sales stood at 482 million as compared to 559. Our B2C sales stood at 91 million as compared to 103 million in the Q3 of the last year. Saitech top line stood at 159 million and EBITDA of 28 million paid of 7 million as compared to 154 million of top line and 30 million of EBITDA and 20 million of profit. So nine months is 489 million as compared to 386 million. EBITDA is 65 million as compared to 66 million.
Beni Prasad Rauka — Chief Financial Officer
FAT is 15 million as compared to 32 million for nine months. Our largest product which is anti inflammatory enzyme. This is about 21% of our revenue as compared to 20% last year. Year for nine months it is 22% as compared to 19% last year. Top 10 customer is about 26% for this quarter as compared to 26% in Q3 of last year. And for nine months it is 23% as compared to 36% last year. B2C sales number stood at 104 million as compared to 123 million in the last year.
Beni Prasad Rauka — Chief Financial Officer
Quarter. Corresponding quarter. R and D expenditure on standalone basis for Q3 revenue is 77 million and capex is 3 million. So total is about 80 million which is comparable to the earlier quarter total. 246 million we have spent so far in nine months. R and D expenditure as a percentage of our revenue on consolidated basis it is about 4.7% as compared to 4.9% here. This is without considering the intercompany elimination and on consolidated basis RFD spend after considering the elimination it is about 3.2% as compared to 3.3% in Q3 of FY25 for nine months it is 3.2% as compared to three point seven percent in nine months of last year.
That was from my side. Now we shall open the floor for question and answer session.
Questions and Answers:
operator
Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press Star and one on a telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing Star and one again. Ladies and gentlemen, if you have any questions please press Star and one on the telephone keypad. Let us wait for a moment until the question queue assembles. The first question comes from Mr. Umang Shah from Banyan Tree Advisors. Please go ahead, sir.
Beni Prasad Rauka
Hi sir. Am I audible?
operator
Yes, sir.
Umang Shah
Hi. Thank you for the opportunity, sir. First question was if you could break down the human nutrition revenue between India and international.
operator
Yes.
Beni Prasad Rauka
So I am giving you for nine months number. Okay?
Umang Shah
Okay.
Beni Prasad Rauka
India is 1710 and international business. I am talking in millions. 1710 million for nine months and for international market 1686 million. So total is 3,396 million for nine months.
Umang Shah
Got? Got it? Got it, sir. And the second question was if you could speak about the decline in human nutrition segment. You alluded to the fact that it was between both pharma, Pharma and nutraceuticals and even the numbers represent that. So can you just help us understand, especially in nutraceutical business in U.S. what led to the decline?
Mukund Kabra
You know, what is going on in us? The overall the market is very uncertain in US and when there is a complete uncertainty in nutritional market, everybody is paying a heavy duty no matter where the product is coming from in the nutritional market, human nutrition market and long term strategies, short term strategies are difficult to develop during this kind of certain markets. Second part is the cost which is coming out from the China on all the raw materials for packaging, shipping, etc. Is going up and industry is trying to pass on that cost a little bit at a time.
And you can see that there is a slowing down not because only on the nutritional side also, but the market wise it is affecting consumers very, very heavily in the food segment, in pharma segment, everywhere. So the overall there is a tremendous uncertainty in the marketplace and in that particular place people try to hold on to placing any new orders. Does that make sense to you?
Umang Shah
Yeah, got it sir. Very useful, sir. And second question was what is the competitive intensity in our largest product in India? Is it normalizing compared to last year or is it still quite high?
Beni Prasad Rauka
You can see the numbers and if you see the numbers, slowly we are growing, right. So I don’t see there is any problem competencies or any other area into that particular.
Umang Shah
Got it sir. Got it, sir. And last question was at the end of the last year you had mentioned that we want to have a business in intermediates also. It’s been, I mean the, it’s been then nine months of this year have been done any headway in this business?
Beni Prasad Rauka
We are still working on that and probably when the right time will come, we will come out of it.
Umang Shah
Okay. Hopefully the market conditions will help us establish the foothold. Okay, great sir. Thank you so much sir. I will get back in with you. Thank you.
Mukund Kabra
Thank you.
operator
Thank you, sir. The next question comes from Mrs. Sajal Kapoor from Antifragile Thinking. Please go ahead, sir.
Sajal Kapoor
Yeah, thank you. My questions are not about this quarter or nine months, but slightly medium to long term. And so first one is how are you monitoring potential disruptive technologies or new entrants in the enzyme space and what steps are you taking to ensure advanced enzyme is not, you know, kind of blindsided by them?
Mukund Kabra
Very, very interesting question and thank you for asking that. Listen, there is a technologies which are coming in or the new entrants coming into the marketplace. There are certain segments in the human nutrition where people are more concerned with and we are addressing that through our lot of research of new products, new areas. It takes little time to develop these new enzymes per se because it has to go through a lot of regulatory approvals, etc. But we are already, if you will see that we are. Very much on.
Mukund Kabra
Top of it publishing our papers. We are also trying to get technologically technical backgrounds and support systems because people nowadays don’t like just an ingredient per se. They want research data supporting it and which do also with the peer review papers. And that’s how we are trying to attack that market to make sure that we keep our lead continuously into this market.
Mukund Kabra
No, that’s helpful and thank you.
Sajal Kapoor
Yeah, yes, that’s helpful. That’s helpful and yes, I agree. It takes time to commercialize the new discovery. Taking all, you know, it’s a time consuming. Nothing works overnight in this industry. So I completely appreciate that. And my second question is how do you decide when to, you know, invest in incremental improvements and to existing products versus pioneering entirely new enzyme solutions that might initially serve only a smaller or less profitable market, but that may potentially lead into longer term opportunities. So basically the question is how do you decide when to sort of become more cost and efficient because of competitive pressures or otherwise in your existing products versus what R&D dollar or how to invest that incremental money into something novel, Discovering it and then commercializing it.
What is the sort of mindset?
Mukund Kabra
Mindset is basically you go to the marketplace where you have better profit margins to begin with and then expand into the markets where there are. There is margin pressure, but the volume gives us a cost competitive advantage into our manufacturer.
Sajal Kapoor
And do you keep separate teams for you know, novel innovation, something which is getting discovered or and versus you know, incremental improvements or are these same things?
Mukund Kabra
No, the teams you had to separate them and get most of the efficiencies, cost efficiencies because nowadays travel is very expensive as you know.
Sajal Kapoor
Okay.
Mukund Kabra
Besides, AI is coming into picture. So a lot of people are self educated per se, you know, quote unquote. So it is always very interesting market dynamics where people throw the questions from AI wanted to know all the, all the answers kind of thing. And this is a technical field, little bit. So you have to explain it. In. The marketplace to make them understand why it is different. It is not the same thing.
Sajal Kapoor
My question was Is it a single RD center? Because we have got multiple RD centers. So how do we position them for new innovation versus improvement?
Mukund Kabra
No, there is single R and D centers.
Beni Prasad Rauka
R and D centers are single but they are subdivided into different departments, functionality wise.
Sajal Kapoor
Okay.
Mukund Kabra
So there are different people taking care of different areas.
Sajal Kapoor
Understood? Understood. Okay, that’s helpful. Thank you so much for all the responses. Thank you. And all the very best. You’re welcome. Thank you.
operator
Thank you so much. Sir, the next question comes from Mr. Shreyas Gatani from SG Securities. Please go ahead. Sir.
Shreyansh Gattani
Hi, good afternoon. I. I just had one question. So from my understanding the sales in the EVOC subsidiary just go to Europe. Would that be the right understanding? Can you.
Mukund Kabra
Yes, it is. It is the right understanding.
Shreyansh Gattani
Yes. Okay. So. So, so based on that. So if I look at, you know. X of the evoks, pretty much our sales have dropped. You know, I’m just looking at the last quarters like we were doing around 4 crores. If I just subtract the Europe sales, you know, from the EVOX sales from the Europe sales. So besides the evocs, we’ve pretty much. Not done anything in this quarter. So could you comment on, you know. What happened, like why we’ve lost sales. Over there in Europe.
Beni Prasad Rauka
So I think quarterly comparison as we have already been mentioning is not possible. You know, in our case people don’t.
Mukund Kabra
Buy quarter to quarter.
Beni Prasad Rauka
It all depends on, you know, customers, their own like, you know, procurement schedules.
Shreyansh Gattani
Okay. Okay. Because I see like, you know, pretty. Much we are averaging like last four quarters. We’re doing like 4 crores and now it’s less than 1 crore, like 90 lakhs besides the ebook sales.
Mukund Kabra
Then I will speak out. I will give you exact number. I don’t know how you are subtracted.
Shreyansh Gattani
Okay, I will take that offline. That. That’s okay. Thank you. That’s all from my end.
Mukund Kabra
Thank you.
operator
Thank you. Sir, the next question comes from Mr. Rohan from Blue River Capital. Please go ahead. Sir.
Rohan
Am I audible?
Mukund Kabra
Yes. Rohanji.
Rohan
Look at your sales to the usa.
Mukund Kabra
I’m sorry, little bit louder. Rohan. Rohan. Sir, I would request you to speak little louder because your voice is so feeble.
Rohan
Yeah, am I audible now? Is this better?
Mukund Kabra
Better?
Rohan
Sir, I was talking about the U.S. sales. There has been some weakness in the U.S. sales of reset. I think in one of the earlier calls you had alluded to the fact that this is relating to the tariffs. Now given the current favorable kind of trade deal that we have, it was announced a couple of days back. What is the outlook for the sales in the US Given it is the largest market, both in terms of recovering sales and then from here on going henceforth forward. If you can help us with how you plan to go ahead there with regards to new products, new customers, new segments, anything on that, please?
Beni Prasad Rauka
Well, tariff is the tariff 18%, 25% or 50%. Do you think anybody is willing to pay you 50% higher prices in the retail marketplace? It’s impossible. You know, you will lose lot of entire sale of your entire sale. So it’s a various strategies which we have to that we don’t lose customers at the same time impact on the margins are not heavily affected. So most of the things if you will see that US Companies will pass on some of the cost increases to the customers during this 2026. There is a competition also which you have to keep in mind whether customers competitors are ready to increase the prices or not.
And you have to be competitive in the marketplace where others what others are doing. So there are several factors comes into picture. This is. This is something only thing it makes sense right now is yesterday’s news will help us little bit better in sense of how to normalize and be reasonable.
Mukund Kabra
So. We need to. Actually if you.
Rohan
Look at the numbers for FY25, those are also weak. And now after that FY26, as you said tariff is understanding. But I mean going forward after the fact that you know the tariff has come down to 18% now what. How do you see us as a. Market going ahead for us?
Beni Prasad Rauka
Yeah, that it will not have much of a difference for the market sale. We will see how the. How the market is. Overall market is taking the tariff, whether it is 15, 20%, 18%. They will reflect in the marketplace and overall economy of the US So if the US Economy remains strong with the employment market will be good and we see reasonably it should grow.
Rohan
Okay. Okay. And do you think any efforts are needed with respect to setting up a local base or getting personal sales and marketing person there, you know, to further push for better growth there?
Beni Prasad Rauka
We always are looking for a better growth. Right.
Rohan
Hence the little bit of pushback on that. Sir.
Beni Prasad Rauka
Sorry.
Rohan
It has not been really reflecting in the numbers. And hence as investor, I think there was a slight bit of pushback on this matter. No, I understand going ahead things will be better.
Beni Prasad Rauka
As you said, rightly said. We see a much better outlook coming. What we are looking at is a lot more inquiries, lot more interest.
Rohan
That. Will reflect in next years. Okay. Because I mean given us this has such a large impact on our Margins if from there or to go down as they have been in the past, it would again affect the margins going ahead. So I think given all of this, it holds pretty much high importance, especially this large market for us.
Beni Prasad Rauka
Absolutely, absolutely. We are very mindful of that.
Rohan
All right, thank you sir.
operator
Thank you so much sir. Ladies and gentlemen, if you have any questions please press Star N1 on a telephone keypad. I repeat, if you have any questions please press star and one on a telephone keypad. The next question comes from Mr. Abhishek Navalkun from Centrum Brokin. Please go ahead sir.
Abhishek Navalgund
Yeah, hi, thanks for the opportunity. Couple of questions from my side. First on the upcoming R D center that was supposed to come in Nashik, I think somewhere during this particular year is it possible to share, I mean what area you will be targeting to begin with? Because it was mentioned that it will be a far bigger setup as compared to what we have right now. So any particular area and where you will see the benefits coming in? Maybe not immediately but over next couple of years from that perspective to begin with we’ll be targeting mostly on the, on the strength development protein and on.
The.
Mukund Kabra
On the fermentation side that will be the first phase. Sure, but I mean the reason why I’m asking this question is we have Serishio peptides as our largest product but you know you get this question a lot that which product can become like a next serosiopeptidase for us so something similar can happen out of this R and D effort that you are, you know, intending to do. Yes Abhishekji, we are working to do on. There are like many other products which we are working out there probably like the space will fasten up once this becomes light.
Abhishek Navalgund
Okay. And this will be largely targeted again for the exports only right abroad. And sorry, the timing of this commissioning of this facility is when. Sorry I missed out on that part
Mukund Kabra
somewhere around the end of the second quarter of this coming year. End of second quarter, perfect. And next question on CapEx, I mean we have maintained the capacity utilization at around 55, 60%.
Abhishek Navalgund
I’m sure that considering since we have not done a large Capex over last few years, I mean the Capex the capacity utilization must have been stopped. Any plans of Capex being Greenfield or brownfield expansion in next one or two.
Years.
Mukund Kabra
As we always mention, whenever we feel like it will be necessary, we’ll do it of course like the cost will be very low maybe I guess like in the financial year 2829 probably sorry, 26 27, 27, 20. Yeah, 28, 29 mostly. And the cost will be about 50 crore at that point.
Abhishek Navalgund
Okay, so nothing on this particular year, right?
Mukund Kabra
Not this year except for the R D capex, whatever we will need for the R D center.
Abhishek Navalgund
Okay. And the ratio capacity because this quarter was maybe kind of muted but in nine months the growth has been very strong. So how are we placed in terms of capacity utilization for today? So the GC biotech plus our capacity capacities sufficient for let’s say a couple of more years or
Mukund Kabra
I think like our capacities are good enough as of now we are well placed.
Abhishek Navalgund
Sure, sure, sure, sure. That’s it. From my side. Thank you and all the best. Thank you.
Mukund Kabra
Thank you Abhishekji.
operator
Thank you. Sir, the next question comes from Mr. Ketan Chadan in regional. Please go ahead sir.
Unidentified Participant
Hi, thank you for the opportunity. My query with respect to the EU region in the last few years, if I take from 2021 onwards we’ve had approvals wherein initially we had some four product approvals and now we are standing at nine product approvals for the EU region. But in these years from 21 to 25 our revenue has not increased significantly. It’s about 32, 33, 3 crores in that zone. So could you tell us like you know, what are we selling essentially in European Union and why in spite of having so many product approvals our revenues are not growing in that region.
Mukund Kabra
So our major target is a food segment in the European region and that is what we are doing it. If you ask me like if you don’t have these regulations probably our sales would have been zero because you can’t sell without this product being registered. So assuming that since it gets registered you will have a significant revenue is not true. We are doing our best. We are trying to expand the market wherever it is possible and I guess we are still growing this year also we grew into the European area. It’s not like what the green person, anything of that.
Unidentified Participant
No, sorry, I mean I was referring to from you know financial 2021 till 2025, not just this nine months or last one year or so. I was talking about the, the last four odd years, four, five years. Because if you see the line 32 we had in.
Beni Prasad Rauka
So I think in Europe we have 10 slightly the business model of our European company. So they were having some contract research, external contract research, then internal for us and then you know some product sale. So because of that realignment also I think now the product sale was slightly down in couple of years and now like, you know, we are looking into that aspect and seeing that some kind of, you know, revenue we are going to get from that product sale business as well, which has been developed in India and then, you know, European company will take care of that.
So that process is on. Yes. And slightly the numbers, as you rightly said, is kind of, you know, is kind of a range bound so far.
Unidentified Participant
Okay, okay, appreciate that response. The other question that I have is I believe, you know, the one novel ingredient application that we have in Europe is again related to Terra Sure Peptides. Now once we have that approval and you know, assuming that probably it takes maybe a couple of years for us to kind of ramp up the sale of this novel ingredient in the European region, is it likely that Sarah, this product will continue to be the top revenue generator for us?
Mukund Kabra
Listen, if you know very well, you are aware most of the issues, healthcare issues are inflammatory related, right. And. We have to make sure that awareness is there. People find that products are working very well for them and it’s a marketing efforts, product establishment, brand establishment, etc. But we are sure that it will grow.
Unidentified Participant
Okay. Okay, thank you so much. Yeah, that’s all. Thank you so much and wish you all the best. Thank you.
operator
Thank you so much. Sir, the next question comes from Mr. Ravi Prohit from securities Investment Management Private Limited. Please go ahead sir. Yeah, hi.
Ravi Purohit
Thanks for taking my question. So a couple of things. One is I think over the last. Few years there has been a lot. Of discussion on US business and business. But outside of these two, the other geographies have actually done relatively better and we see sustained growth from these geographies. So can you just spend some time and help us understand what are the areas which are helping us with this growth and also whether these are sustainable numbers and whether we can build upon this over a period of time. So if you would just share some insights on this. That was question number one. And second question was we had created a 100% loan subsidiary to transfer our B2C business and we had some thoughts on how to kind of get into or expand our B2C business significantly in India. So if you could just share some update on that.
Mukund Kabra
So when we talk about it like we did a lot of registration in Asia and other countries and if you look into the rest of the world and Asia, those are the two markets which are giving us some results. The work which we did in the last two, three, four years, they are reading some results right now and we can see that there are certain growth in the Asia as Well as in the rest of the world areas.
Coming to the your next question on the on Nutrazyme we did like separated this entirety and now the team is there which is a focus team which is working on to this area particularly as of now like the way we see it like this year it will be a small sale some around 1 1.5 crore at the end of the year. But we are constantly focusing on that. The team is young and dynamic and we will see the results in coming to three years. Do we have a significant product pipeline which. Which we can kind of, you know which you could probably share with investors as to what kind of products are we looking at and historically website if you want to.
We do have a 10 to some around a basket of 1012 products out there. You can look at those products at.
Beni Prasad Rauka
The Welfare Welfare brand. You can go and take a look at it. And not only take a look at the brand, I suggest you buy some and try it yourself.
Mukund Kabra
Yes, yes, we’ll do more certainly sir. And I think, you know, I think you had mentioned in the past that we don’t. We historically have been a B2B company and not necessarily B2C company. So any you know ideas it’s because we B2C is a very, very different animal altogether.
Ravi Purohit
Right. In terms of marketing, ad spend getting. So is there any plan to kind of do some JV with some other company or do it ourselves? Because if the products are there and if they’re good and we are doing it for other people, for white labeling point of view, there could be an opportunity for us to kind of scale that business.
Beni Prasad Rauka
Thank you for suggesting and confirming what we think in the same manner. So both of them are thinking alike on that matter. We will do all of that. Whatever you said is grow our brands, align with few others B2C company people and integrate and expand. That is a total different business than B2B. So we have to think in the different way and we will take all the expertise necessary in that particular market. That’s why we are separating the company under the neutrazyme.
Mukund Kabra
And so you know in the past we have kind of briefly touched upon industrial enzymes. But if you could kind of spare some time and help us understand in the sense what areas in industrial enzymes do we actually do and or we intend to kind of add to our portfolio. That seems to be a very interesting space where given all the investments that are happening in India, either from green ammonia point of view or rare earth minerals point of view or a whole variety of other things that are getting manufactured. And each time we kind of read some literature, what we come across is there are a lot of industrial enzymes.
Ravi Purohit
Which get used to. Is there anything that we do in any of these spaces or intend to get into any of these spaces? Just a broad brush idea if you could give.
Beni Prasad Rauka
Yeah, we are intended to get into those spaces on the growing marketplace. Our new R and D center will really help us into that because ultimately in all industrial segment there is a performance which really counts right there and there.
Beni Prasad Rauka
So. You know, they don’t wait. There’s two areas which we have to show immediately of a performance and cost effectiveness. And it requires a lot of work. And. Proving that our enzymes are better than what they are using or not using at this point in time. Do we have products or no, we have products. The thing is you need lot of R and D also to support. And. That is what our new center will give us. Space and area to develop new new applications.
Ravi Purohit
All right, all right, I’ll get back in the queue. Thank you.
operator
Thank you Mr. M. The next is a follow up question from Stanga from Bang Advisors, pms. Please go ahead sir.
Unidentified Participant
Hi sir, thank you for taking my questions again sir. Since WASMG is also on the call, just wanted to hear from him. In terms of over next two, three years in which areas of enzymes does he see the most opportunity and will advance enzymes be able to take part in it?
Beni Prasad Rauka
Thank you for calling. See we have to stick with a lot of these areas which we are already servicing. But we will also expand into few other market areas in the same market. See there are two geographical marketplace and different application marketplace. And our healthcare will be always a top area for us. But we are also going into biochemical processing and various other other areas where the margins are not necessarily very high but at the same time opportunities are enormous. So we are looking at both different areas where we can expand and utilize our capacities very efficiently at the same time grow our marketplace.
And that’s where the whole concentration of the management is at this time.
Unidentified Participant
Great sir, Great sir, thank you so much. And sir, now with the new now in the budget the buybacks have become better in terms of the tax tax implications. So would really suggest it’s like now where the stock price are. If we can consider a buyback of equity shares that also helps in increasing the promoter holding and also helps long term shareholders increase the stake without any friction. So just if that’s something you could consider. And the last thing was if I heard it right, there was a loss in JC Biotech Is that the right understanding?
Beni Prasad Rauka
That is right. This quarter? Yes. This quarter, yes. But you don’t look at it quarter on quarter. Okay, okay. Was it enough operational loss or a one time loss? Because the it was EBITDA margin positive. But some major, what you can call it like a repair and not repair. Stores and stores and spare consumption for this quarter which comes annually sometimes.
Unidentified Participant
Okay, is it one time or does it happen once every year?
Beni Prasad Rauka
Once in a year, once in a.
Mukund Kabra
Year or twice in a. In a two years? Once or some. That kind of thing. And this quarter like again there was some lower sale, but again it’s don’t get it. Quarter and quarter.
Unidentified Participant
Oh, okay. Great, great. Thank you so much, sir.
operator
Thank you sir. The next question comes from Mr. Subam Sehegal from SPL. Please go ahead, sir.
Shubham Sehgal
Hello, I’m audible. Yes, yes sir. Yeah, I just have one question. So in the earlier response you mentioned that going forward you’re seeing a much better outlook and a lot more inquiries and interest. Could you specify in like which, like. Which segment are we seeing all of these inquiries coming in?
Beni Prasad Rauka
We are only in the two places, enzymes and probiotics. So most of it is. For example, our marketplace is a very different and dynamic marketplace. You know, in US you are talking about US Market. Right.
Shubham Sehgal
In general you specified that we’re seeing a better outlook going forward. So are these inquiries more of. Yes.
Beni Prasad Rauka
More inquiries into U.S. marketplaces. Okay. Correct. You are correct.
Mukund Kabra
More to the US Market. But. There are always inquiries in Indian market as well or this area.
Beni Prasad Rauka
Yeah, yeah. Overall it is a bigger.
Shubham Sehgal
Okay, got it, thank you. And this next question was on the specialized manufacturing segment. So we saw good growth in the last four to five quarters and this quarter was relatively flat. So just going forward, how do we see this segment turning out?
Mukund Kabra
Again, don’t look at a quarter on quarter. There are always sometimes like the payment issues or other issues and sometimes like the sales reversals are there. So don’t look at it quarter on quarter. Look at it just nine months and it’s good and I think it’s continued to grow.
Shubham Sehgal
Yes, but going forward are we adding new products in this segment? I mean as we had acquired this earlier. So like how is it going on? Can we just get some color on it? Are we adding new products? Are we getting good traction?
Beni Prasad Rauka
So this is basically in, you know, effervescent based technology company. So they do work for various clients. So they are doing for say nutraceutical segment and of course you know, for animal, I mean, you know, division also we are doing a lot of work for you know, overseas company as well as now we are expanding our footprint in India. So basically it is like a tablet or this is effervation based. We are now looking into like you know, now how do we market this product into whether we can go for you know even in textile segment.
Can we have some product like that which can be used. You know even disinfectants can be used and cosmetic also there is a scope. So we are working on various things. But yes, I mean you know it is a process which is taking you know its own time and we are working with a couple of good clients companies on different areas in this particular company.
Shubham Sehgal
Okay, just one clarification. So currently as you mentioned, so this business is not yet present in India. We don’t have a lot of clients in India as of. Right. So is it morely more of concentrated in US or it’s spread out geographically.
Mukund Kabra
So it’s a combination of both. And there are a lot of different projects which are going on with different companies in India as well as in abroad. Okay.
Shubham Sehgal
Okay, thank you.
operator
Thank you so much. Sir, the next question comes from Mr. Rohit original from Progressive Shares. Please go ahead. Sir.
Unidentified Participant
Hiding two questions and two parts to them. The first one being on the US subsidiary. So by when do you anticipate that the volume will start picking up from there? Because as you mentioned the inquiries have already started flowing, growing and we also see that World Nutrition Inc. Versus Advanced Supplementary. That case is also solved. So by when do you expect that higher sales? Because if I read well the margins tend to increase if sales are higher from us.
Beni Prasad Rauka
It’s a good question. I think it should. It should reflect things changing into this year. Okay.
Shubham Sehgal
And sir, on the so on the. R D site on the R D side there were some products which were just about to be launched in March. So are we on track for that or will we see some video maybe spill over into June or September?
Beni Prasad Rauka
Do you have a specific on the product which you are talking about?
Unidentified Participant
No sir, it was not. It was mentioned in the previous con call but then there were no specific as such. But it was said that it will be launched in March. Probably.
Mukund Kabra
It’s a constant process, Rohit. So I don’t know which product we are referring to at this point of time.
Beni Prasad Rauka
There are several products in the. In the pipeline.
Mukund Kabra
So it again depends on the market. Once you go into the market, you come back, you again do the some kind of thing if we require. If it is good, it is good. So it’s constant process.
Unidentified Participant
Okay.
Beni Prasad Rauka
In short, listen, there is not like simple thing to concentrate on one product. We have multiple products in pipeline which we are working on. And let me tell you that not every quarter we are going to review and see what happens on that particular one. But several products are there and there are some products get hit very quickly. Some products take little longer time. Some will have delays because you have to go into pilot scale. Then people are just not going to jump on it. They go slow process. Sometimes somebody is very fast depends on the market pool.
So believe me that all of these are under continuous review and push is very big and trying to get some products which are heat get bigger hit so that our revenue generations can be there asap.
Unidentified Participant
Okay, so the union budget it was speaking quite a lot about Philip to the toll manufacturing. While DFM was also trying to attract some global businesses and some investments thereof. While she also mentioned about some impetus for biopharma Shakti or maybe biologic mediums. Do you think that these developments can get some volumes as well as value for us?
Beni Prasad Rauka
The chances are very high provided if we get some kind of a relief from this Government regulations and bureaucratic measures. You know government talks very big and they respect you. But you. As we all know there is so many rules and regulations. But a lot of companies are greatly interested and we are very much interested in working with them because.
Mukund Kabra
Ratiji. Yes.
Unidentified Speaker
And there are like lot of things which were coming with like a new institutes and other things. What what I understand. But we need to go through the fine lines and understand it more deeply. Because. Because. Because in one of the phone calls recently we mentioned that we were working on some contract manufacturing and some developments thereof. And even if you look slightly into the fine print, they are giving some tax benefits which Rati just mentioned about. So it’s. Any development is the only thing that I’m asking.
Mukund Kabra
We still need to evaluate the impact of it on the budget and other things. Right. So we are working on some of the areas. But let’s see. And we still need to understand the budget honestly.
Unidentified Participant
Okay, G. That makes. That makes a lot of sense. Thank you. Thank you for answering my question. Thanks a lot. Thank you.
operator
Thank you sir. Next we have a follow up question from Mr. Rohan from Blue River Capital.
Rohan
Please go ahead sir, for Mr. Ati. Thank you for being on the call today. Sir. From a three to five year perspective, so you say medium to long term perspective. Where do you see our company progressing towards and what do you think is. Really needed to get there? I mean R and D obviously is a huge and strong pillar for us. But apart from R and D I think what else do you think is required for us to take us to that position there in three to five years?
Beni Prasad Rauka
Well, as we said before also same thing. I don’t think we are changing our tune anywhere. We’ll grow 13 to 15% double digit more than double digit growth overall on a continuous basis in three to five years. There are a lot of hurdles will come in the places and there will be some sellings. But overall we are very comfortable with our thinking and accordingly sometimes we can hit a very big way. The growth may increase rapidly but Overall we are 13 to 15% is very comfortable for us.
Rohan
Because from a historical perspective last couple of years have been slightly weak. This year nine months. Obviously to give credit by due we’ve done well. But as I said the last few years, last two, three, four years odd have been weak. So given that context I’m asking do we require any changes, any particular functions per se. Be it sales, marketing, manufacturing operations, anywhere else does anything have to change and if yes, what would that be?
Beni Prasad Rauka
We are addressing to those. That is what you are looking at overall 9 months performance also and we’ll see that we’ll continue to meet your expectations.
Mukund Kabra
The only thing what I would like to add out here, the ride will be roller coaster. It will not be the straightforward graph of like this. Some years we will grow faster and some years we might grow slower. That is understandable sir. And a small bookkeeping question. So margins. What was earlier communicated was that tariffs would have a 200 pips odd impact on margins. Now with tariffs kind of moderating, margins.
Mukund Kabra
Trend going higher from here almost nine month is gone. So I think another three months we have to see the impact. But it is most likely instead of two on EBITDA I think it will be around 1% or so. Yeah, but it’s a worst case scenario. We are also trying to pass on as like we also had mentioned some of the some of the cost to the customers in us. So we’ll see what will be the last impact. But this is the worst case scenario.
Rohan
Understood. Thanks a lot and wishing you all the very best.
Beni Prasad Rauka
Thank you.
operator
Thank you so much sir. The next question comes from Sir Chandramouli Jagannathan, an individual investor. Please go ahead sir.
Chandramouli Jagannathan
The previous partisan was talking to you about the buyback which you did not answer. You also feel that the current market cap of your company kind is at a lower level. Maybe you can think of.
Mukund Kabra
Sorry, your question is not clear. Can you please repeat. No, I am talking about the buyback. Even there is a previous for display.
Chandramouli Jagannathan
Also asked you about that, you did not answer. Since the valuation is so attractive, maybe do you have any plans and the taxation of the buyback also in the recent budget become little attractive.
Mukund Kabra
Now we appreciate your question and your, you know, guidance but you know, there are many things which you know very well. This is the, you know, prerogative of the board. Right. So it cannot be answered as such.
Chandramouli Jagannathan
Okay, thank you.
operator
Thank you. We have one final question which is a follow up question from Sir Ketan Chadan Indigenous. Please go ahead sir.
Unidentified Participant
Thank you for the opportunity again. So my question is with regards to slide number 25 of the presentation. There is one segment within human nutrition by biocatalysis. And if I see the revenues in FY24 and FY25, you know, we’ve kind of gone down from $3.3 million to $2.1 million. Now my question is with respect to the biocatalysis, could you explain like, you know, what are we doing right now and maybe in the next three to four years or five years, where do we go ourselves going ahead in this segment of biocatalysis. Biocatalysts business.
Mukund Kabra
What are we doing in biocatalysts? Right. That is the question. We are working on the biocatalyst areas. Like that’s what I can say. A lot of, lot of things are there on the pipeline. There might be something here and there and we still need to understand that. But the growth prospects are very good into this area.
Unidentified Participant
Okay. Because even in some of the previous calls you mentioned that, you know, there are some products under trial with some customers. So is there any update of those trials of those products or if there is some kind of a outlook in terms of timeline, how long there will be some outcome of those trials, be it one year, two year, something like that.
Mukund Kabra
I would like to say that probably we will have to wait till the first quarter of the next financial year.
Unidentified Participant
Okay. Okay. Thank you so much. Wish you all the best. Thank you.
Beni Prasad Rauka
I think attorney has asked one question, Shreyas. Probably you were, you know, reducing the evokes number directly from the European top line, you know, European numbers, whatever we have shared with you. So I mean it is, you know, the number which we have shared is net of our intercompany transaction. So you have to look from that angle. So our Europe I think revenue number was about 96 million during this quarter as compared to hundred 105 in Q3 of last year. And 116 for Q2 of this year.
operator
Thank you, sir. There are no further questions. Now I hand over the floor to Mr. Ronak Shara for closing comments.
Ronak Saraf
Thank you everyone for taking your valuable time for attending our earnings conference call. We will keep you all posted for any further updates. I request you all to kindly send in your questions that may remain unanswered. An audio recording and the transcript of this call will be uploaded on our website and on stock exchanges in due course. Looking forward to host you all in the next quarter. Till then, stay healthy, stay safe. Thank you everyone.
operator
Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using DoorSabhas conference call services. You may disconnect your lines now. Thank you and have a pleasant evening.