Ajanta Pharma Limited (NSE: AJANTPHARM) Q4 2025 Earnings Call dated Apr. 30, 2025
Corporate Participants:
Yogesh Agarwal — Managing Director
Rajesh Agrawal — Joint Managing Director
Arvind Agrawal — Chief Financial Officer
Analysts:
Tushar Manudhane — Analyst
Vishal Manchanda — Analyst
Abdulkader Puranwala — Analyst
Foram Parekh — Analyst
Unidentified Participant
Shrikant Akolkar — Analyst
Akash Singhania — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Ajanta Pharma Q4 FY25 Earnings Conference Call.
As a reminder, all participant lines 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 on a mode. Please note that this conference is being recorded. I now hand the conference over to Mr Yogesh Agarwal, Managing Director of Ajala Pharma Limited. Thank you, and over to you, sir.
Yogesh Agarwal — Managing Director
Thank you. Good evening, and welcome to all of you. With me, I have Mr Rajesh Agarwal, our Joint Managing Director; Mr Arvind Agarwal, Chief Financial Officer; and Mr Rajesh Agarwal, our AVP, Finance and Investor Relations.
The results are already with you. We will take you through business-wise performance for the quarter and for the whole year, along with the comparison of previous year same-period. Let’s get into the business performance. For the current year FY 2025 marked yet another year of outstanding performance, driven by our well-crafted strategy and strong operational execution.
We are committed to growing sustainably and scaling up responsibly, building every part of the business in such a manner that creates long-term value to our stakeholders. Staying true to our commitment of growing the branded generic business in mid-teens, I am pleased to share that we delivered a healthy growth of 15% during the year.
Our financial strength also continued to improve with ROCE at 32% and return on-net worth reaching 25% as of March 2025, reinforcing our position amongst the best-in the industry. Our strong cash conversion ratio of 92% enabled us to distribute a significant payout of INR700 crores to our shareholders, reaffirming our commitment to delivering value to our stakeholders.
Moving on to the business details, our overall business saw a healthy growth of 11% during the quarter and 10% for the year in-spite of sharp degrowth in Africa institution business and soft growth in US generic business. The growth for the year was fueled by an excellent performance of our branded generic business, which contributed 74% in overall revenue. This business is spread across India, Asia and Africa. The sales stood at INR805 crores during the quarter, posting 12% growth and INR3,394 crores, a growth of 15% during the year.
This business exhibits assurance, sustainability and scalability in the long-term. Let me now take-up international business and I will first start with branded generic business in Asia and Africa, which contributed 42% in the total revenue. Let’s begin with Asia. Ajunka’s Asia business extends across Middle-East, Southeast Asia and Central Asia, covering nearing — covering nearly 10 countries.
We are strategically strengthening this business through increased investment in both products and people to drive accelerated growth in the coming years. I am pleased to share that we have significantly expanded our product portfolio in the region with launch of 25 new products, primarily in chronic therapies. This expansion positions us strongly for the sustained growth in FY 2026 and beyond. In Q4, sale was INR303 crores against INR281 crore, a growth of 8% and during the year FY 2025, sale was at INR1,191 crores against INR1,057 crore, a healthy growth of 30%, 13%.
Let’s move to Africa. In FY 2025, our Africa business achieved an outstanding growth of 28%, driven by continued strategic focus on expanding our chronic therapies portfolio in the region and successful launch of 13 new products. These initiatives are steadily building a strong foundation for more sustainable and scalable business in the years to come.
As we look-ahead, while the Africa pharma market is anticipated to witness a moderation in growth in FY 2023, alongside the impact of high base effect FY 2025 for Genta, we remain confident in the long-term potential and strength of our business in the region. During the quarter, the sale was INR133 crore against INR113 crore, a growth of 17% and for the year, sale was INR750 crores against INR585 crores, a healthy growth of 28%. Let us talk about other two verticals of international business now.
Let’s go with US generics. As anticipated, our US generic business closed the year with a growth of 9% with all five new product launches occurring in the second-half of the year, limiting their ability to contribute to the full-year performance. However, we are well-positioned to capture the complete potential of this product in FY 2026, which is expected to witness a stronger growth supported by a robust pipeline of additional launches planned for the year.
We remain vigilant considering ongoing tariffs, uncertainties and will respond based on actual outcome. During the quarter, the sale was INR325 crores against INR261 crores, posting a healthy growth of 25% and for the year, the sale was INR1,047 crore against INR964 crore, a growth of 9%. Our superior execution continues to keep us as a preferred partner of choice for the distributors. Let’s go with — let’s move to the Africa institution.
As we have consistently highlighted over the years, this business has remained unpredictable due to its heavy dependence on the procurement agency. During the year, the business experienced a significant degrowth of 41%, including a sharper decline of 53% during the Q4, reducing its contribution to the revenue to just 3%. Consequently, it has become a very small part of our overall business. Looking ahead, we continue to maintain a cautious outlook on this segment for the foreseeable future.
The business contributed a revenue of INR147 crore during the year against INR249 crores in the previous year. Revenue for the quarter was INR28 crores against INR61 crore.
Now I invite Mr Rajesh Agrawal, our Joint Managing Director to take you through India business. Thank you and over to you.
Rajesh Agrawal — Joint Managing Director
Thank you and good evening to all of you. FY 2025 was indeed an eventful year for the India business with many new initiatives. First, there was the addition of two new therapies, gynecology and metrology with a little over 200 MRs in the domestic market. Secondly, there was a significant expansion that we undertook in the existing therapies with addition of 250 new MRs and we are open for further expansion in the FY 2026 as maybe necessary.
And third, acquisition of three brands in the pain management segment. I am pleased to share that as a part of the strategic initiatives, we have taken a significant step forward with the first-ever acquisition of three brands in the pain management segment. These additions align well with the accelerated growth trajectory of our India business and will further strengthen our pain portfolio. It is important to note that the value of these brands fall below the threshold for mandatory disclosure.
We continue to outperform the Indian pharmaceutical market by a significant margin of 300 basis-points for the year, with Agenta delivering an impressive growth of 11% compared to IPM’s 8% growth. Notably, our volume was nearly double of the IPM. This positive trend is evident across most therapeutic segments in which we operate, where our growth was consistently outpaced — has consistently outpaced segment averages.
We remain confident of sustaining this momentum in the coming years, backed by a robust pipeline of new product launches. Focusing on our performance in FY 2025, the India business contributed 32% to the company’s total revenue, supported by the launch of 32 new products, including eight first time launches in the country. In Q4, sales stood at INR369 crores compared to INR326 crores in the same quarter of the previous year, registering a healthy growth of 13%. For FY 2025, sales reached INR1,452 crores, up from INR1,308 crores in FY 2024, reflecting A growth of 11%. Our India business also includes revenue from the Trade Generics segment, which contributed INR49 crore in Q4, up from INR41 crores and INR179 crores for the full-year compared to INR161 crores in FY 2024. In the covered market, we are 5th-largest in IPM and among top-10 in all our therapeutic segments. As per IQVIA MAT March 2025, cardiology contributed 38%, followed by ophthalmology 29%, dermatology 23% with remaining 10% coming from pain in India branded space. I now invite Arvind Agrawal, CFO, to take you through the financial performance. Thank you, and over to you,.
Arvind Agrawal — Chief Financial Officer
Thank you. Good evening and warm welcome to the fourth earnings call of FY 2025. On this call, our discussion includes certain forward-looking statements, which are projections or estimates about future events. These estimates reflect management’s current expectations about future performance of the company. These estimates involve number of risks and uncertainties that could cause our actual results to differ materially from what is expressed or implied.
Agenta does not undertake any obligations to publicly update any forward-looking statements, whether because of new confirmation, future events or otherwise. We will look at the consolidated financials and provide year-on-year comparisons. The key financial highlights of Q4 and FY 2025 are as follows.
Total revenue in Q4 stood at INR1170 crore against INR105 crore and posting growth of 11%. For FY 2025, the revenue was INR4648 crores against INR4209 crores, posting growth of 10%, which was in-line with our guidance. Our gross margin stood at 77% in FY 2025, an improvement of 200 basis-points over previous year. This was the result of higher contribution from branded business in overall revenue. We expect it to remain in this similar range with movement of 50 to 100 basis-points due to change in-product mix.
For year 2025, personnel cost stood at INR1090 crores, an increase of 21% over previous year. Change in graduity policy in Q1 and addition of medical institutes in India has resulted in this exceptional increase. We expect this to get normalized in FY 2026. In Q4, the cost was at INR280 crores, an increase of 20%.
Our R&D spend continues to be at 5% of total revenue and expected to remain at similar level going ahead. In Q4, expenses were INR63 crores against INR50 crores and in FY 2025, it was INR224 crores against INR208 crores. Other expenses in Q4 stood at INR310 crores against INR278 crores and in FY 2025, it was at INR128 crore against INR1070 crores previous year and same-period. Our thirst on the branded generic business with investment in products and people will keep other expenses elevated in FY ’26 as well.
Our EBITDA margin stood at 27% for FY 2025, though it was lower at 25% in Q4 due to higher personnel costs and lower gross margin for change in business mix. EBITDA stood at INR297 crores against INR278 crores, a growth of 7% in Q4 and INR1260 crore against INR172 crores, a growth of 7% in FY2025 over previous year. We expect the EBITDA in FY 2026 to be around the FY2025 range. Other income was at INR18 crores in Q4 and INR90 crores INR95 crores in FY 2025.
It includes forex gain of INR7 crores and INR28 crores respectively in Q4 and 12 months. Income tax stood at 23% at year 2025 and is expected to remain at this level in FY 2026. In Q4, PAT was INR225 crores against INR203 crores, a growth of 11% and for FY 2025, it was INR1920 crores against INR816 crores, a growth of 13%. PAT stood at 19% in Q4 and 20% for FY 2025. Capex was little higher for the year with investment of INR318 crores in FY 2025. This induced new liquid plant at, new office in and brand acquisition cost.
Capex, including maintenance capex for FY 2026 is expected to be around INR300 crores. Working capital remained our focus area and we will continue to monitor it closely. Trade receivables at 94 days against 199 days and inventory at 72 days against 73 days is becoming a normal level.
Our cash-flow from operations at INR1157 crore for FY 205 is indeed a landmark with cash conversion ratio of 92%. Free-cash flow of INR694 crores with 75% PAT conversion also reflects our efficient cash-flow management. ROCE and continue to improve and be comparable to the best-in the industry. ROCE stands at 32% and ROIW at 25% at the end of March 2025%.
With these highlights, I open the floor for the question-and-answer. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to withdraw yourself from the question queue you may press star and two participants are requested to use handset while asking a question ladies and gentlemen we’ll wait for a moment while the question queue assembles.
The first question is from the line of Tushar from Motilal Oswal Financial Services. Please go-ahead.
Tushar Manudhane
Yeah, thanks for the opportunity. Sir, just a clarification on this EBITDA margin guidance. You said similar to that of FY2.
Arvind Agrawal
Yes.
Tushar Manudhane
28.3% 28% plus-minus.
Arvind Agrawal
Sorry.
Tushar Manudhane
Correct? 28% plus.
Yogesh Agarwal
Can you repeat your question?
Tushar Manudhane
So just a clarification on EBITDA margin guidance first for FY ’26?
Arvind Agrawal
Yeah.
Tushar Manudhane
So you highlighted.
Yogesh Agarwal
28% plus-minus 1%.
Tushar Manudhane
Got it. So given the kind of growth which we are witnessing in the branded generics business, still if you are guiding for the similar EBITDA margin. So does it mean that other expenses are going to further rise from here on?
Arvind Agrawal
Yes, to some extent because the investment which we have done in people, etc is going to increase the promotion cost 450 people have been added over a period of second, 3rd-quarter, so naturally their full-cost will come in this year.
Tushar Manudhane
Got you. And so gross margin more is largely to do with US exposure higher but the sales doesn’t take.
Arvind Agrawal
Quarter yet. You are right.
Tushar Manudhane
So — and then subsequently, we are guiding for the gross margin also to be broadly or similar as that of 4Q or FY ’25.
Arvind Agrawal
FY ’25.
Tushar Manudhane
Got it. That’s it from my side and come back.
Arvind Agrawal
Thank you.
Operator
Thank you. Next question is from the line of Vishal from Systematix. Please proceed Mr Vishal, your line is unmuted. Please go-ahead.
Vishal Manchanda
Yes, sorry. Good evening, everyone. In the presentation, you’ve shown that the ophthalmology segment has grown only 5% this year. So any specific reason the segment growth was lower this year?
Rajesh Agrawal
Yeah. Yeah. No, there is no specific reason. I mean, nothing that we can point out. It’s — that’s what it is.
Vishal Manchanda
Okay. And so the next one is like you have INR176 crores in capital work-in progress. Would you be able to share what that pertains to?
Arvind Agrawal
Yeah. It pertains to various projects which we are in the head office, which is the tower, , which is going on at the moment. Some of these flowers are yet to be completed and capitalized. Plus also we have our liquid plant in Hitambur.
Operator
Ladies and gentlemen, the line for the management has been disconnected. Please stay connected while we reconnect him to the call. Thank you, ladies and gentlemen, thank you for patiently holding. We have the line for the management reconnected. Over to you, sir.
Arvind Agrawal
Yeah. I think Vishal, you were — yeah, Vishal, you were asking something.
Yogesh Agarwal
Was a of technical glitch we are.
Vishal Manchanda
Yes, sir. I was asking about the CWIP, which you indicated part of it is on account of tower and the rest you were talking about the liquid plant which and then it got disconnected.
Arvind Agrawal
Yes. So it is a liquid plant in which we are setting up. So that is there, plus also some other small projects which are going on in different manufacturing sites.
Vishal Manchanda
Okay. So this liquid plant pertains to the US markets or the India market now?
Arvind Agrawal
No, this is for the emerging markets.
Vishal Manchanda
Okay. Okay. Okay. Sir, one question on this US market. So you have product called XR, where you are the third generic which has an approval. But what I could see is you’ve discontinued the product on the site. Is any reason to discontinue that product?
Yogesh Agarwal
No, no, there is no which website you are talking about.
Vishal Manchanda
So on FDA, what I can see is Apotex and one more player who have launched the drug by Agenta, which also has an approval, but it’s showing discontinued there.
Yogesh Agarwal
Yeah. No, I don’t know. We’ll have to see the website, what is showing. We have not discontinued. In fact, we have launched that product in the last quarter as authorized generic from the — from the originator.
Vishal Manchanda
Okay. So since it is an authorized generic, would that be the reason to have discontinued your own AND?
Yogesh Agarwal
No, no. We will be transitioning into our ANDA once our AG contract time expires with Superna, then we will transition into our own ANDA. We will have to — I will have to check what website we’re talking of. We are not aware of that. As far as we are concerned, we have approval for that. Right now, we have launched as Authorized January. And once that timeline is over, then we will be coming with our own product we’ll launching our own product.
Vishal Manchanda
And then what would be our market-share as an authorized generic there now in?
Yogesh Agarwal
But right now it is small because we just launched recently last quarter.
Vishal Manchanda
Okay.
Yogesh Agarwal
But going-forward, I think we will be able to increase our market-share.
Vishal Manchanda
Okay, understood. And just a follow-up on the ophthalmology slowdown. I just wanted to understand whether the segment is largely driven by surgeries and chronic areas like glaucoma and dry eye and whether Agenta has a strong presence in these segments?
Yogesh Agarwal
Yeah. We have a presence in more than 80% of the sub-therapeutic areas. Is also post-catrac, anti-infectives, anti-allergics, geoma, so we are present largely into all of these NSCIDs for ophthalmology. And as far as the growth is concerned, there are many other segments like, for example, gynecology has grown only at 4%. Respiratory has grown again mid-single digits. So there are multiple and that’s why you see the IPM growing only at 8%. There is no specific reason. I think that’s the question for IQ, we have to maybe — maybe look into an answer.
Vishal Manchanda
But on a reported basis also, you would have grown slower in ophthalmology or because this is secondary data, but for you on a primary basis, like primary sales to the channel, would you have grown at mid-single digit or higher rates?
Yogesh Agarwal
Originally, we are at mid-single. IQVI data, we have grown at 6% compared to the market growth of 5%. So that is what is most relevant for us.
Vishal Manchanda
Got it. Okay, sir. Thank you very much.
Yogesh Agarwal
Thank you. Thank you very much.
Operator
Thank you. And before we move to the next question, a reminder to the participants to ask a question, you may press star and one. Next question is from the line of Abdulkadar Puranwala from ICICI Securities. Please proceed.
Abdulkader Puranwala
Hi, sir. Thank you for the opportunity. My first question is with to your India business. So first of that you have added few MRs this year. And what would be the quantum of addition for the next year?
Rajesh Agrawal
We don’t have a specific objective for adding any numbers, we will — we will optimize the field strength as we go along wherever we feel that additions are required, it’s just start of the year, we will — we will know after maybe first-quarter as to where all and how we add the MRs in which segment and in which territories. So there is no specific number that we are starting the year with.
Abdulkader Puranwala
Okay. Okay. And sir, when we talked about last quarter and this quarter as well about foraying into two new therapeutic categories. Just wanted to understand from a prescriber standpoint, the — so the MRs are currently catering to the same prescribers. And the reason why I’m asking that if I look at your presentation, then the doctor coverage kind of flatten stands flat at 2.5 lakh doctors. If we check that with the previous quarter presentation as well. So can you throw some light there, please?
Rajesh Agrawal
Yeah. No, you’re right. The reason being in nephrology segment, it’s a very small subset of the frank nephrologists by way of qualification. It’s an insignificant number to be really to see an impact on the 2.5 lakh odd doctors that we cover. And it’s a relatively smaller field force. It’s more of a task force-based approach.
We were already covering nephrologists by way of our existing brands, which are and, which are also heavily prescribed by nephrologists and it’s the same customer, but we are having a first-line treatment products through the Nephro team now. Therefore, even those minor additions are already factored in by. In Gainak, we have a small team at this point.
So the coverage is not massive, all-India, we hope to be able to expand the footprint as we go along the coming year. So you may see some attrition in the doctor coverage by the end-of-the year to be more specific on that. But already in our investor presentation, it’s mentioned as 2.5 lakh plus. So if there are minor additions, that will cover that.
Abdulkader Puranwala
Understood. Understood. And one more on your Africa institution business. I know that you have been cautious on the outlook of this business for quite some time. But given the recent uncertainties about donor funding, though not directly related to your line-of-business. But any — any outlook you may like to provide on that front would be helpful. Thank you.
Yogesh Agarwal
No, as you have seen current year also, we have degrown heavily and so this is one business segment we can never give the guidance on. We don’t know what kind of procurements will be done by the agencies, what kind of money they will be getting now with the US aid US government has said that they are not going to continue with US aid anymore.
We’re not sure what kind of procurements they will do all, they will do anything. So I think this segment of the business continues to remain unpredictable. The best thing we can do is we can — whenever opportunity comes, we can maximize it. So there is no guidance which we have for this segment or no.
Abdulkader Puranwala
Okay, got it. And just final one if I may. Any revenue growth guidance you would like to provide for your branded generic and US business for next year?
Yogesh Agarwal
So US business, we are looking to mid to-high teens kind of growth. And for the brand the low teams we are looking at low team.
Abdulkader Puranwala
Got it sir. Thank you and I’ve that.
Operator
Participants to join the question queue you may press star N1. Next question is from the line of Forum Parik from Bank of Baroda Capital Markets. Please go-ahead. MR. Parik, your line is unmuted. Please go-ahead.
Foram Parekh
Yeah. Thank you for the opportunity. Can you highlight on the outlook of ANDA filings in FY ’26, please?
Yogesh Agarwal
We are looking at filing around 10 to 12 NDAs in the ’25, ’26.
Foram Parekh
Okay, and so can you just comment on the US implemented? So how are we seeing this? How much would it — I mean, how would it impact this? Do I understand the portion or the contribution from the US side is very small for us, but just an overall broader perspective, how are you seeing the tariffs and would impact us.
Yogesh Agarwal
So as you may be aware, which is announced by the US government, they have initiated a section 232 investigation which means the US government had initiated a study that if at all what kind of imports they are doing for the pharmaceutical products in the US and for if any reason, if there is substantial import, those countries do not supply to US, what is at-risk?
And then they have to come out with a mitigation strategy for that. So they have announced this study. This study can be completed in 90 days or 270 days. We don’t know what the outcome will be. It’s a very complex and situation where there are — India is one of the of material products to US. At the same time building such capacities in US, if at all they will be built, it’s a long process.
So I think there is no clarity on what kind of tariffs, if at all, they will come. So-far, they have been exempted whether they will continue to exempt or they will put into what percentage they will put. The situation is very, very fluid right now to make any comment. Having said that, we have evaluated our scenario strategy and option and we have a directional plan in-place depending on whatever the outcome of the study and the government of United States makes announcement, it will take a suitable appropriate measure to mitigate the risk whatever best way we can.
I think there is no further comments or guidance I can give you because we don’t know what the tariffs, if at all, they will be. There will be 10%, 20%, 25%, there’s no clarity on that.
Foram Parekh
Yeah, sure. So and last question, if I may ask, it’s on the R&D side, we see that R&D contribution is 5% of the sales. So any guidance like whether this would be the same percent or are we intending to increase? And just where are we attributing incoming — where are we spending the R&D cost? Just a sense on that.
Yogesh Agarwal
No, R&D, we are estimating and adding around the same percentage price next year also, we will be at around the same percent of 5%. And as you know, all our R&D is split across the formulation development for India, ROW and US market. So approximately 50% of the R&D spend is for the US market and rest 50% is for the branded generic business, which is across India, Asia and Africa.
Foram Parekh
Yeah, that’s it from my side. Thank you.
Yogesh Agarwal
Thank you.
Operator
Thank you. Thank you all participants, if you wish to join the question queue, you may press star and one. Thank you. Next question is from the line of Dr Amankumar Singh, an individual shareholder. Please go-ahead.
Unidentified Participant
Yeah. Good evening all. And congratulations for giving us a good result. But I just also wanted to have a dream. I’m associated with this company right from the IPO days before — I mean, when we came up in the IPO. Just wanted to know that when we are going to achieve a $1 billion mark as a part of our sales. And similarly, now we have at least one milestone, I can see that we are nearing INR1,000 crore net profit mark. So when we expect at least $1 billion of sales expectation from my side and at least 250 million of profit from Pharma.
Yogesh Agarwal
So these are our aspirations as well all. All the growth drivers to make this happen, we work every day very hard to put them in-place. We continuously try to identify good products, try to identify newer markets, try to increase the market-share in every product. So I think the team is working very hard to see that we continue to fulfel this growth. I think hopefully it should come very soon and near-future. So that’s all we can say about this.
Unidentified Participant
No, the rate at which we are growing, I think this 11% 12%, 15% of rate of growth will actually lead us to $1 billion work-in not less than another five to six years time. So this can be a little because if there are other opportunities, what our company can explore and then put some growth drivers into it. So like as you were saying about the recent regulations that is happening in US. So similarly, they are also coming up, they are giving boots to CDMO and CDS, all those kind of a players. So if we can broaden up our portfolio base in some way so that we can increase our sales. So like an optimistic view from my side and I also want to completely achieve it.
Yogesh Agarwal
Agreed, agree. No point noted. We, we have a good business development team and as a top management. We are continuously evaluating all the possible opportunities. As you rightly said, if we continue to grow at mid-teens in five years, we should ex business. So we are doing everything to see that we put all the growth drivers in-place. As you rightly said, hopefully it should happen in five to six years could happen earlier also.
Unidentified Participant
Okay. Thank you. Thank you so much and keep the good work going.
Yogesh Agarwal
Thank you.
Operator
Thank you. Next follow-up question is from the line of Tushar Manudhani from Motilal Oswal Financial Service. Please proceed.
Tushar Manudhane
Yeah, thanks for the opportunity again. So just again on the US business where the filings have been less in FY ’25, while the ramp-up in filings is expected in FY ’26, but what is giving the confidence for sort of mid-teens sort of a growth in FY ’26 in business.
Yogesh Agarwal
So US filing is separate and the growth we are looking at the next year. So yes, I agree with you. Current year our filing has been slightly less than what we have liked. We have guided 8 to 8 to 10 or 8 to 12. Two of our ANDAs which were to be this thing is getting filled over, some studies have not been successful. But I can definitely say that I think 10 ANDAs minimum are for sure looking very, very much possible for the next year. So considering the development-stage where we are in for the pilot which we have passed and all those things, two or two 12 also. So we feel very, very comfortable and Confident of the next year filing. And the growth which you’re talking for the US business ’25-26 of high-teens is more on the back of four launches which we have done in the last six months. The Q3 we did three launches and Q4 we did one launch. And in next year, we are looking to launch seven new products. So the last four products which we launched in second-half, that will ramp-up in the current year and there’ll be some part of the new seven product launches which will be scattered over the year, some upside we’ll get from there. So combination of these both together — put together, we are giving the guidance of high-teens growth in the US market for the next year.
Tushar Manudhane
Understood. And sir, just lastly at the industry level, like any disruption you are witnessing either on the raw-material procurement or on the US exports front in anticipation of in anticipation of the geopolitical tariff trade war?
Yogesh Agarwal
No currently, as you know, there is no tariffs on the pharma except the 20% tariff which was announced by the US government on China. So that first 20% tariff applies to the pharma also coming from China to the US. But other than that, there is no other tariff on the pharma coming into US from any other place.
The 20% tariff on pharma, which was a first announced made by the US government, we have not seen any kind of things, any shake-up or any disruption or any kind of significant changes or minutes because of that. So-far market seems to be pretty much as it was before. There’s no with you.
Tushar Manudhane
Thanks. That’s great to hear. Thanks a lot for your interest. Thank you.
Yogesh Agarwal
Yeah.
Operator
Thank you. Next question is from the line of Srikand from Nuvama. Please go-ahead.
Shrikant Akolkar
Hi, thanks for the opportunity. Now my question is on the India business. We have done MR additions, we have done few launches and we also have 48 new therapies. So over two to three year period, how do you see the India business shaping up?
Rajesh Agrawal
Okay well, our primary objective remains to outpace each therapeutic segment that we are present in and operating. If we are able to outpace the market at a molecule level and at a therapeutic level, I think that’s our prime goal. And if the India market is growing at 8% at an IPM level, our aspiration and aim is to grow at least 200 bps faster than the IPM growth? And so that’s what — that’s how we can look at for the next two years also.
Shrikant Akolkar
And with the new therapies that we have entered, when do you think that those therapies could be contributing substantially, let’s say meaningfully, what could be the three-year, five-year period where we think this can add meaningful value?
Rajesh Agrawal
No, it’s a good question. Both the therapeutics segments are quite competitive. The competitive intensity is very-high. It will take maybe at least three years because we’ve just entered last year with a first-line treatment frank portfolio for each segment and really to make a presence felt, it will take about three years at least that’s what that’s what we are aiming for.
Shrikant Akolkar
Understood. And on the on the new product acquisitions that we have done, few products that you have highlighted. Is it possible to talk about the thought process that have gone because we have not done any acquisition so-far? So what could have changed and how big are these products?
Rajesh Agrawal
So the annual revenue was about INR15 crore to INR17 crores for these brands. They were acquired from a company called Axygen. They are primarily into pain management segment. Honestly, the outlook has not changed. We have always been looking out for acquiring good assets, brands or companies in the domestic market and we have been in the foray in many such acquisitions that have happened and companies that have not sold or acquired.
And this brand augmented very well with our current product portfolio and therefore, we made the acquisition and we are reasonably confident of having a quick payback and building these brands to a much larger-scale than what we acquired than?
Shrikant Akolkar
Understood. And on the liquid formulation facility, can you talk more about it? I understand it is expanding substantially at the existing liquid capacity, but when do we think this will commission and what sort of opportunities it can bring?
Yogesh Agarwal
Yeah. So it will be mostly — we have a small facility at, our liquid facility, which is quite old now with small capacity and we are doing lot of contract manufacturing outside. Contract manufacturing has a limitation on how much we can scale-up, get the approvals from the various authorities in the emerging markets, audits very dependent. And our philosophy and objective of Pharma has been to get the production inside as much as we can.
So with that outlook, we are put up a new liquid block at. So basically, it will be getting all the contract manufacturing inside at our facility and moving some part of the production from to this facility. And this will also act as a platform for us to develop and file new liquid products from this facility into our emerging markets. And going-forward in three, four years, then they will be available for us to commercialize. So that’s the outlook for the liquid plant?
Shrikant Akolkar
Okay. And final question, would it be possible to talk about some of the launches that we have done in the US market and maybe some of the market-share if possible?
Yogesh Agarwal
What exactly you want to know? What is the question?
Shrikant Akolkar
So you said that you have launched, I think five to six products during the second-half of FY ’25. Just wanted to know — yeah, just wanted to know if you can highlight, as you said, the bigger opportunity for Agenta will be in the FY ’26 when they gain market-share. So if you can highlight the name, if possible, of course, its name of the products and current market-share that you have done there?
Yogesh Agarwal
No, so I think we’ve launched products. We’ve launched our tablet, then, which is. That can become a decent-sized product for us in the coming year. So as you know that when you launch the product, the market shares are small and next six months or eight months, then we become the sizable, they can become a full-blown opportunity.
And there’ll be seven new products which I’m not able to share the names of those products with you, but there’ll be some good product launches which will happen next year. All-in all, if you see the IQI data wherever Agenta has launched the product, we have always been one of the top two or three companies having the market-share. Our supply track-record is one of the best-in the industry. We have a fill rate of 99.9%, so we have no back orders.
Our supply-chain is one of the most robust supply-chain. That enables us and the customer then have a confidence when they join hands with us or give orders to us that they can give the product — they can get the product consistently. So that has been our strong suite and we will continue to work on that. So all these products, the end-of-the day, whatever price erosion which happens, which we are estimating into the high-single-digit plus the new product launches and market-share from that. All put together, we are expecting this to give us a high-teens growth in the US.
Shrikant Akolkar
Just last question with the permission, what should be the capex next year?
Yogesh Agarwal
Around INR300 crores.
Arvind Agrawal
INR300 crores.
Shrikant Akolkar
Okay. Thank you so much.
Operator
Thank you. Next follow-up question is from the line of Vishal from Systematix. Please go-ahead.
Vishal Manchanda
Yeah, thanks for the opportunity. Sir, with respect to Africa and Asia market, any large markets that we intend to enter this year or the year-after?
Yogesh Agarwal
Between Asia and Africa?
Vishal Manchanda
Right.
Yogesh Agarwal
No, Africa, we pretty much are present in most of the countries which are sizable and which can — where you can scale-up. So we are present in pretty much around 18 to 20 countries in Africa. In Asia also, I think we have taken initiative of Central Asia a year or two years back. So we are scaling up there. It will take another two, three years for it to become sizable.
But other than that, I think we continue with our existing Southeast Asia, Middle-East, Central Asia is a new addition. A new addition when I say is last few years, but it also takes you more years for it to become sizable. So that’s where our focus is right now.
Vishal Manchanda
So basically with your existing portfolio of markets and filings, can you sustain the growth in Africa and Asia around this low-to mid-teens levels for the next maybe three, four years?
Yogesh Agarwal
Yeah, yeah. We feel very comfortable. We have a lot of good products under approval in various therapeutic segments in all these markets. So when we get the approval, we can launch them. We have very good understanding of this market And which enables us to accelerate and get the market-share quicker. There are good products which are under R&D right now, which when they get developed, will be manufactured and filed. So there is a robust pipeline awaiting approval for the filed and under R&D. So there are a lot of therapeutic segments we are not present in these markets where we can enter and get the market-share, like we are not doing dynacology, we are not giving CNS. There are a number of segments. So I think there is enough space for us to keep growing by adding new products, adding people and increasing the market-share from the existing products.
Vishal Manchanda
And is it fair to say these markets are even more underpenetrated than what India is, is Africa and Asian markets you would be present in with respect to the chronic segments and these new therapies that you talked about, gynecology?
Yogesh Agarwal
I mean, it’s a very subjective. Each market has their own curve of growth and evolution. So some markets are very mature like India, CNS is a very large market size. Customer assets in Africa may not have such a big large market size of CNS now. But in the future, like India also 15, 20 years back, PNS is very small. Ophthalmic was very small, but now it has become very big. So it’s opportunity for us to kind of enter these segments now when they are small in these markets and as they keep growing, because they will post growth which are faster than other segments, which are mature.
Mature therapeutic segments will also grow of 6%, 7%. These segments would post much higher-growth of 12%, 15%. So considering the strength which we have, we are one of the unique companies having such a large-size outside of India. So we understand this market much better. So with that strength, we have a good equity with the doctors and we should be able to get into segments and make a meaningful portfolio out of them?
Vishal Manchanda
Yeah. Got it, sir. And sir, just one final one. We had a 76% payout this year. Should we expect a similar payout going-forward?
Yogesh Agarwal
I mean, the only way we can use the money is with the capex. We have given INR300 crores guidance, which is almost the same as current year. Second is the acquisition. So if we have any targets for acquisition, the money could be deployed there. If not, then like in last two, three years, we have given out this money to the shareholders and we will reward the money to the shareholders there is no acquisition, which comes.
Vishal Manchanda
Got it, sir. Thank you very much.
Operator
Thank you. For participants to ask a question, you may press star and one. Ladies and gentlemen, if you wish to join the question queue, you may press star and 1. Next question is from the line of Akash Singhania from Ray Global Investments. Please go-ahead.
Akash Singhania
Yeah, sir. Thank you for the opportunity. Sir, in one of your previous response, you mentioned that the tariff to US for India is zero and for China, currently it’s 20%. So assuming it continues, I want to understand two things. One is for a similar product, what would be generally the difference between the prices of India and China?
And secondly, will 20% further tariff on China make Indian products and for us more attractive and competitive to gain market-share.
Yogesh Agarwal
So right now, as you know, there is a 20% tariff on pharma going out from China to US, which is not there in any other country. So to that extent, extent Chinese companies and whatever arrangement they have with their customer, they have to see how they are going to absorb that. We have very few products with the Chinese players overlapping with them. So we don’t have any idea on how that is being done. But generally, it’s the sense which we get from the market has there has been not any big shake-up or disruption.
So we don’t know-how that has worked out, whether the past — the prices were passed on, whether the Chinese companies have absorbed. But anyway, I think in the form finish product, India is much, much, much larger than the Chinese China in the Finnish formulation. So depends going-forward, what is the difference between the tariff between India and China? Going-forward, if they put a 25% tariff, will it be common 25 and China will not have a 20% will be removed and they also have 25%, we don’t know. So there are a lot of uncertainties to kind of like make a sense and speculate on that.
Arvind Agrawal
Okay. So what is the price differential currently would — between let’s say, the Indian formulations and Chinese formulations maybe for your portfolio products would be in what range?
Yogesh Agarwal
No, we don’t — as I told you, we don’t have overlap with the competitor from China. There only one-product with not any shake up there.
Akash Singhania
Okay. And sir, second question is on the — for our total portfolio, how much would be acute and how much chronic?
Arvind Agrawal
Defer from market-to-market actually. So like, for example, if you take India, it is almost about 65% chronic, whereas in the emerging markets, overall, if you take, it will be less than 50%.
Akash Singhania
Okay. Okay. And sir, lastly, we acquired these, I think two or three brands which you mentioned with the revenues of INR17 crores. Can you share how much amount we have spent on that?
Arvind Agrawal
I think it is about INR40 crores.
Akash Singhania
Okay. Okay. Thank you, sir. That’s from my side and thank you, sir. Thank you.
Arvind Agrawal
Thank you.
Operator
Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to Mr Yogesh Agarwal for the closing comments.
Yogesh Agarwal
Thank you, everyone, for joining this call. In case if there are any other further questions that remain unanswered today, you can reach to our Investor Relations team. Thank you.
Operator
Thank you, sir. On behalf of Agenta Pharma, that concludes this conference. Thank you all for joining us and you may now disconnect your lines