Blue Jet Healthcare Ltd (NSE: BLUEJET) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Unidentified Speaker
Shiven Akshay Arora — Managing Director
V.K. Singh — Chief Operating Officer
Ganesh Karuppannan — Chief Financial Officer
Sanjay Sinha — Deputy Chief Financial Officer
Analysts:
Unidentified Participant
Amlan Jyoti Das — Analyst
Sanjay Jain — Analyst
Shyam Sampat — Analyst
Nikhil Upadhyay — Analyst
Sujit lodha — Analyst
Ankush Mahajan — Analyst
Shashank Krishnakumar — Analyst
Alankar Garude — Analyst
Presentation:
Unidentified Speaker
It.
Unidentified Speaker
Sa. Sa.
Unidentified Speaker
Sam. Sa.
Unidentified Speaker
Sam. Sa.
operator
Good day and welcome to Blue Jet Healthcare Limited Q3FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Advaid Bhaedekar from Ernst and Young. Thank you. And over to you sir.
Unidentified Speaker
Thank you Bhumi. Good evening and a warm welcome everyone to Q3 and 9 and FY26 earnings call of BlueJet Healthcare Limited. Please note the investor presentation and the financial results are available on the company website and the stock is pending. Also, anything said on this call which reflects our outlook for the future or which could be construed as a forward looking statement must be reviewed in conjunction with the risk that the company faces. The conference call is being recorded and the transcript along with the audio of the same will be made available on the website of the company as well as on the exchanges.
Please also note that the audio of the conference call is the copyright material of Bluejack Healthier limited And cannot be copied, rebroadcasted or attributed in press or media without a specific and written consent of the company from the management. We have with us today Mr. Shiven Arora, Managing Director, Mr. V.K. singh, Chief Operating Officer, Mr. Ganesh Kurupanam, Chief Financial Officer and Mr. Sanjay Sinha, Deputy Chief Financial Officer. Now I request Mr. Shivan Arora, Managing Director of Bluejet Healthcare Limited to provide you with the updates for the quarter and nine months. Endorse 31st December 2025. Thank you.
And over to you Sir.
Shiven Akshay Arora — Managing Director
Thank you Azit. Good evening everyone and thank you for joining us today. Let me begin with a few business and strategic updates before we hand over the discussion to our coo. Vizag Greenfield Project we are pleased to announce that the groundbreaking ceremony for our Vizag project is scheduled for this month. This greenfield site represents a pivotal growth platform for BlueJet Healthcare. In phase one, we will be setting up a dedicated capacity for API and intermediates focused on new products aligned with customer requirements. This project was approved by our board with a total investment plan of thousand crores over the next three to four years.
The initial capacities under development are aligned with customer demand and long term business visibility. We believe the scale, infrastructure and the geographic advantage of Vizag will strengthen positioning as a reliable global partner in complex Chemistries. Hyderabad R and D Expansion we have successfully secured leased space for RD activities in Hyderabad. Development work is expected to commence from Q3 FY27, further strengthening our innovation pipeline and technical capabilities. Artificial Sweetener Pipeline As a part of a focus on smart specialty ingredients, we are initiating few exhibit batches of the new artificial sweetener in FY27. This will complement our existing high intensity sweetener portfolio and address a growing segment of global demand.
In terms of CapEx update of Unit 3, our expansion project is nearing completion. The block is designed for key intermediates in contrast media. The facility incorporates robust safety, environmental and automation systems and is expected to be ready for qualification in Q1 27. It will play a key role in debottlenecking our supply chain and supporting the future growth. On this note, I would pass it on to my colleague Mr. VK.
V.K. Singh — Chief Operating Officer
Thank you Shireen and good evening everyone. Let me take this opportunity to expand on our operational progress, CAPEX execution and CDMO pipeline momentum at our Mahad unit 3 site. The core block for backward integration into contrast media intermediates is nearing completion. This facility has been designed for one key side chain and a in our contrast media portfolio, a step that not only improves cost competitiveness but also provides strategic independence from raw material volatility. We have embedded a very high level of automation into this facility alongside strong safety and environmental design. The site is on track for validations in quarter one of FY27 and we have incurred a cumulative capex of approximately 146 crores to date.
This plant exemplifies our approach to securing supply chains and defending leadership in complex high barrier segments like iodinated contrast media. On the R and D and CDMO platform expansion that Shivin touched very briefly. Over the last 18 months, we have doubled our R and D infrastructure and talent pool. As a part of our next phase, we are investing about 40 crores to build a new R and D center at Hyderabad focused on emerging technologies including intermediates for GLP1s and some other chronic therapies, peptide chemistry, biocatalysis and a faster turnaround of CDMO tailored late phase RFPs.
This expansion is designed to support our growing CDMO pipeline, particularly high conviction phase three and commercial stage opportunities. Currently, we are tracking around 20 active RFPs. Of these, six are high conviction phase three programs including a couple of GLP1 candidates and one contrast media in CE2 are commercial products that may evolve into strategic lateral entries with dedicated capacity planning. We are also ramping up customer engagement including onboarding a senior resource in Europe on sustainability and operational excellence. We continue to embed sustainability into our operations. 70% of our power consumption is now met through wind and solar.
Our team strive for atom efficiency in synthetic chemistry and sustainable process design. We have been recently recognized by the CII and have been awarded the National Award for Excellence in Energy Management. On the operations side, we have built a dedicated process excellence department supported by strong additions in engineering, quality and supply chain. As a company, we believe in building scale and you see the same happening at Vizag, Mahat and our R and D platforms. We remain sharply focused on reliability, responsiveness and readiness to support our customers across the life cycle. From clinical intermediates to long term commercial supplies.
With this brief, I hand it over to Ganesh for the financial review. Ganesh. Hello.
operator
Ganesh sir, he’s there on the line but he’s not speaking.
V.K. Singh — Chief Operating Officer
Can you just tell him just in case he’s on mute?
operator
Ganesh sir, please unmute your line and go ahead. Give me a moment. I’ll just disconnect his line and reconnect him.
V.K. Singh — Chief Operating Officer
I’ll request Sanjay to take it forward.
Sanjay Sinha — Deputy Chief Financial Officer
Yes.
Sanjay Sinha — Deputy Chief Financial Officer
Good evening everyone. So I’ll take you first on a year. On year performance. So revenue from operations has increased. Revenue from was at 3184 million last year and this year it was 1924 million. And it has. Sorry. Revenue from awareness decreased by 40% and EBITDA decreased by 62% and PAT decreased by 39%. Coming to Q1Q performance the revenue operations has increased by 16%. EBITDA decreased by 15% and PAT decreased by 23%. The increase in revenue is mainly towards increase in contrast media and where the dispatches were much more higher last quarter and got recognized this year Uptake of our Flexib product was very stable and you continue to do measurements.
Supplier gross margin for Q3 was at 52%. Slightly lower than our normal trend. Mainly due to change in product mix and one time write off of inventory. EBITDA stands at 24% for the quarter lower. Mainly due to operating leverage of lower sales volume. One time impact of labor code implementation and of course engagement of certain foreign consultants.
V.K. Singh — Chief Operating Officer
Hello.
V.K. Singh — Chief Operating Officer
So I’m taking over. Ganesh. Is it okay?
V.K. Singh — Chief Operating Officer
Yeah.
Ganesh Karuppannan — Chief Financial Officer
Okay. Okay.
V.K. Singh — Chief Operating Officer
Yeah.
V.K. Singh — Chief Operating Officer
So nine months to nine months. Year on year the revenue from operations increased by 3% and EBITDA decreased by 6% and PAT decreased by 6%. The increase in revenue from operations was due to increase in sale of PI. This year gross margin was at 53% compared to 55% last year. This is mainly due to product mix company reported robust other income in 9 months period with 45 million revenue.
Ganesh Karuppannan — Chief Financial Officer
On this note we can open the floor for Q and A.
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 their touch tone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question comes from the line of Amlan Das from JP Morgan. Please go ahead.
Amlan Jyoti Das
Yeah sir, so first question is regarding the destocking impact that you have highlighted in your opening remarks. So, so my question is when do you see this destocking impact going away and, and, and how do you see this year ending especially on the fourth quarter. So, so do you expect to expect growth to Recover on your FY25 base in the next year or how should you think about the quarters ahead regarding this?
V.K. Singh
Hi, thank you for the question. See yeah there is clearly some channel inventory for which there is some destocking happening and. But at the same time you know there’s a supply chain realignment that is also happening and the reason for some subdued orders can be contributed to both of these. Now I would our assessment is that it might take a couple of quarters for this to get completely realigned. But if you would see that.
V.K. Singh
Over.
V.K. Singh
The past nine months also we have done significant volumes as far as API PI Vertical is concerned to further corroborate the potential and the optimism that we have for this molecule. You need to understand how the end molecule is faring quarter on quarter. It is still showing good medium month on month. I would say it’s still showing good mid second digit growth, mid level two digit growth. And new markets are also opening up like a very big market that’s Japan is opening up and there are a lot of markets in the emerging geographies that are opening up and the launch in Canada still is going to awaiting traction.
So we foresee that. I mean we are still very bullish on this product. We don’t see any concern or issue.
Amlan Jyoti Das
All right sir, thank you for the answer. My next question is regarding the contrast media segment. So I just wanted to understand over the say past couple of years how many launches have you done in this segment and how has it contributed to your revenue so far and any product.
Amlan Jyoti Das
That you’d like to call out which.
Amlan Jyoti Das
Has been a meaningful contributor to you and, and how is your market share in this product fared so far quickly.
V.K. Singh
In Contrast Media there were two needle movers for us. One is an advanced intermediate for the existing product that we make which is currently under validation wherein we have the capacity ready for the next five years. And the second molecule is the NCE intermediate which has done well for us in the past 12 months. As you recall in December 24th we had commenced a new line for this NC intermediate. So I think keeping these two together we have capacities on stream. One is getting validated, one is already scaled up and the growth outlook in these two molecules is extremely encouraging.
So these are the two major launches and the third one which is more of a backward integration play. And we spoke about aligned which is under validation in Unit 3. This also could be a significant strategic needle mover for us both on the bottom line and also from the top line.
Amlan Jyoti Das
So Anne, how is the market share fared in this product? So can you assume this market share to be sustainable or have they gone down recently in your key products? So how should think about it?
V.K. Singh
These are very sticky relations and in most of these cases these are backed by multi year supply agreements. So we feel that depending on the order flow it’s just about execution. And in terms of the development of these molecules we’ve done considerable work. So we’re very confident about the qualities and the order flow to go through very soon.
Amlan Jyoti Das
Thank you sir. So just if I could squeeze in one more. So in the. I just wanted to understand in your Piapi pipeline, how should I think about it in. In the say next couple of years? So how many molecules do you have in say the least Stage or Phase 3 assets in your Pipi pipeline right now?
V.K. Singh
So the late stage assets are about.
V.K. Singh
Six and.
V.K. Singh
I think they’ll start kicking in about two years from now.
Amlan Jyoti Das
All right sir, thank you. Those are my questions.
operator
Thank you. Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference, please limit your questions to two per participation. If you have more questions, please rejoin the queue. Our next question is from the line of Sanjay Jain from ICICI Securities. Please go ahead.
Sanjay Jain
Yeah, thanks. Thanks for taking my question. I got a few of them. First on the margin in the presentation you mentioned that the product mix and the inventory write off has hurt the gross profit margin. I think with increasing contribution from Contrast media the mix has only improved. And can you give us more color on the inventory? Write down what and which product and how much did it hurt? Because the gross profit volatility has really been all over the places and need to have a little more grip over that. That would be really helpful. That’s number one.
Number two, you did mention on the realignment of the supply chain for the bempodic acid. Where are we in that realignment? Because one of our peers in India has also added up a lot of capacity. So in this realignment, how do we look? Our contract we were at 120 metric and earlier. Will it positively benefit us? Will it negatively benefit us? And this destocking phenomena, when should it get over? And we should start looking at volumes coming back. So these are initial two questions. Thank you.
V.K. Singh
So let’s take the question on the gross margin. If you see gross margin on a YTD basis is around 53% compared to 55% 55% last financial year last. So it’s only a difference of 2% out of which 1% impact is roughly on some certain inventory write offs which are old stock which was sitting in our inventory. So it was a training exercise. 1% impact is there. And balance 1% is basically a swing off because of product mix.
Sanjay Jain
No, I thought product mix has improved that 1% should have been positive. So what we are talking is much bigger impact.
Sanjay Sinha
Just to give you some more idea, in contrast media we have two approved vendors, right? And in the past quarter we had sort of increased the offtake from the European supply and that could have had a marginal impact on the main product of contrast media. But at the end of the day, both contrast media and the pharma intermediate vertical is highly profitable with gross margins over 50% and in some cases about 55%. And on the stocking destocking I can’t give specific guidance but I think with the molecule gaining new entries in new markets and the growth outlook definitely is very encouraging, the capacities are on warm standby and we are already discussing encouraging volumes with our Target customers for FY27 and beyond.
Sanjay Jain
Should we expect a portion of the volumes in the. Yeah, please go ahead.
Ganesh Karuppannan
Ganesh here. Sorry if there was some issue. Moderator had muted my phone. Maybe I’ll just explain a little bit more on the gross margin. Remember last quarter we actually talked about change in finished goods and WIP where goods in transit was pretty higher. I was actually talking about overhead getting inventorized. So to that extent your gross margin in that particular quarter went up to 65% because we had a very huge goods in transit which didn’t reach the customer destination as of end of the quarter. Now that whatever overheads which gets inventorized actually gets released into this quarter when you actually like book the revenue, that’s how the accounting works.
So to that extent you would actually see a slightly dip in the gross margin. The way Sanjay put it, if you look at cumulatively for ninth quarter, whatever number we were actually like committing, we are in that similar range, 50 to 53% of gross margin. And if you look at products like Saccharin, there is a little bit of price erosion. So that would have actually contributed marginally to reduction in the gross margin.
Sanjay Jain
No, that’s very helpful, Ranesh. I think that’s clear on the realignment on the bempodic value chain. Can you help us understand what exactly is happening and how is it going to benefit us?
Sanjay Sinha
Sanjish? I think it’s a little premature on our part to comment on it, but all that I can say is that it will work in our favor and it is not that supplies from BlueJet are not going and somebody else is supplying or the end molecule is not doing well. So it’s neither the case. So I think it’s just about some realignment and channel destocking. And you must also understand that these are advanced intermediates. So any change will require some will have a regulatory pathway. And we were the primary suppliers in the past and we believe that we will continue to be the primary suppliers.
Sanjay Jain
That’s clear. On the growth in FY27. FY26 has been quite subdued on the growth side, what gives us a confidence that FY27 should be better than FY26 in terms of revenue growth and on the operating leverage helping to regain the margins?
V.K. Singh
Okay, I’ll answer this question by giving you some perspective about the capacity utilizations and the two major lines that we had created. One for the cardiovascular molecule and the other one was for the NCE intermediate on contrast media. Both of them would be positively contributing for FY27, which is backed by some customer orders. And you’ve seen in the past year we’ve been able to scale up this both the molecules well. So there’s one thing that you add capacities but at the same time successfully scaling up with right efficiencies. I think there’s a proven track record.
The third incremental aspect would be the backward integration play for the contrast media intermediates in unit three. While the top line growth will happen after certain customer audits, validations, but as soon as the line is commenced, we ourselves are a customer for this critical raw material and we will gradually this will gradually impact the bottom line in the next coming years and some marginal Top line growth. So these three molecules we discussed and the fourth one is the iodinated contrast media which the validation took longer than expected. But the forecasts are very encouraging and this keeps us very positive in terms of the FY27 outlook and from the API PI basket.
V.K. Singh
We are not looking at any new product to come in FY27.
V.K. Singh
We are, we are. But I think we will be giving a positive update in the next quarter for that. Something really encouraging cooking but I think we would be in a position to share that in the next quarter.
Sanjay Jain
That’s clear. Thanks. Thanks for answering all those questions and best of luck for the coming quarters.
V.K. Singh
Thank you. Thank you, Sanjay. Thank you.
Sanjay Jain
Thank you, sir. Thank you very much.
operator
Thank you. Our next question comes from the line of Shyam Sampat from MSA Capital Partners. Please go ahead.
Shyam Sampat
Hello sir.
Shyam Sampat
Good evening. I just wanted to understand firstly on the Vizag land that you mentioned that.
V.K. Singh
We’Ve taken position.
V.K. Singh
Keeping that in mind, what will our CapEx deployment schedule look.
V.K. Singh
Like for the next FY27 given the.
V.K. Singh
Current volatility, that volatility that we have with Pharma intermediates, how will you be facing this capex? So I think as per the board approval, we’ve committed a capex of thousand crores over the next three to four years. And specific targets for FY27 we’ll give you in the next quarter. But having said that, the CapEx that we are doing in Vizag is for specific projects which have customer demand. This is not capacity creation in anticipation of a particular order. These are products candidates that have been discussed for many years with our end customers. And this has no correlation to the specific product in Pharma intermediate we spoke about.
Shyam Sampat
All right, understood.
Shyam Sampat
So the next question that I have.
Shyam Sampat
Is regarding contrast media.
Shyam Sampat
In the presentation you mentioned that the.
Shyam Sampat
Top four players hold 75% of the share. So will our strategy be looking like gaining more wallet share now with those players?
V.K. Singh
Yes. Yes. Those three, four needle movers that we spoke about in terms of the portfolio will definitely contribute to the increase in the wallet share. Because again our target is to be a small partner, to be these large innovators and be a part of their growth story.
Shyam Sampat
All right, sir. Understood, sir.
Shyam Sampat
And regarding again in the presentation on page six we had, we had a line mentioning that EBITDA was impacted by engagement of a foreign consultant.
Shyam Sampat
I just wanted to understand the nature of this engagement.
Shyam Sampat
Is it one off or recurring? This would be a recurring expense. This would be a recurring expense and it’s more strategic in nature and we can.
Shiven Akshay Arora
These are all European, European based consultant will be helping the company in strategizing, transforming so they’ll add a lot of value.
Shyam Sampat
Okay sir, thank you. Sir, my last question that I have is regarding EBITDA margins. We’ve been seeing negative operating leverage so just wanted to understand what kind of.
Shyam Sampat
Revenue threshold do we think we should.
Shyam Sampat
Expect to get back to the 30 plus margin mark?
V.K. Singh
No, that’s a combination of product gross margin and we cannot be, unfortunately we cannot guide on those numbers.
Shyam Sampat
All right sir, that’s all from me.
Shyam Sampat
Thank you so much and all the best to you.
V.K. Singh
Thank you.
operator
Thank you. Ladies and gentlemen, please limit your questions to two per participant so that management is able to address questions from all the participants. Our next question is from the line of Nikhil Upadhyay from simpl. Please go ahead.
Nikhil Upadhyay
Yeah, hi, good evening. I hope I’m audible. Yeah, my question was on this API PI product. See last quarter when we had the discussion during the same call you had mentioned that we are bound by the the order and we see visibility on the amount of updates. I understand the Innovator is renegotiating the orders and all but when the renegotiation happens or a new supplier comes in, how does the business like breakup happen between the two suppliers? Because as you said we are, we would be part of the filing of the Innovator and all. So is it like, do you, do you see a risk that from what we have done historically there could be some or substantial drop or is it like a minimum commitment that this will be maintained and incremental will go like just some sense because we don’t know how these things happen.
So just some sense how the contracts get renegotiated.
Ganesh Karuppannan
I think very, very fair point and I think I would want to give more clarity on this aspect because it’s, it’s a considerable part of the overall revenues at this point in time. See, any new supplier entering has a regulatory pathway. That’s number one. Number two, we’ve spoken about the end molecule growing and entering new markets. So this is. If you read about the molecule, the indicators are very positive and if at all there had to be a need to be caution at this point in time from an FY27 perspective, it would be our duty to highlight it.
But we don’t see those indicators at this point in time. So we are still positive around this molecule and we just have to be a bit patient around it.
Nikhil Upadhyay
No, I appreciate that fact but what I’m trying to understand is that if you look at 27 FY27, the volume or the amount of business which the innovator would be taking from you, are these firm orders which are fine or is it like will be more closer to starting of like financial layer 24 then these would be fine. Just some sense on are we signed order that okay, this much we’ll be getting just to get some confidence, that is all. No, no.
V.K. Singh
So there are binding forecasts and there are confirmed purchase orders. But at this point in time it’s very difficult to give specifics around that and hence there is no need to be worried about the outlook for 27.
Nikhil Upadhyay
Okay. And secondly, we understand if we look at the incremental pipeline from here, there are two or two contrast media products and one more API PI product which you mentioned. By the time 27 ends or we get into 28, would you see that the business would diversify it to a lot? The business would become more diversified versus what we have today? Or would you say this concentration to few molecules will still remain very high?
V.K. Singh
A bit of both. Bit of both. Because the new launches that we spoke about in contrast media, I think they are large molecules at the end of day. So when we set up capacities, we look at an incremental growth year on year for the next five years wherein we are ready for that requirement. And with the new launches and pharma intermediates, yes, there would be some lumpiness because that’s the nature of cdmo. So you should have a two, three year outlook. But yes, the idea and the endeavor is to definitely add more molecules. And that is one of the reasons the Vizag Capex has been announced and we are looking at it very positively.
Ganesh Karuppannan
But you know, if you would see the numbers two years back and now you would see that both product and client concentrations have significantly improved. So I would imagine that we are on the right track and it should stay the same. I mean it should improve further.
operator
Thank you. Our next question comes from the line of Avnish Barman from Vicaria. Please go ahead.
Unidentified Participant
Hi, good evening. Thanks for taking my question. I had a question on this new TCSK9 inhibitor. I don’t know whether this was answered or not, but my question is about this New Amsterdam product called Ovicetra Pip. And how do you think it will when it gets launched, let’s say two years hence? How does it compete with bempedoic acids given the fact that the results and the trials have been pretty encouraging for this product?
Ganesh Karuppannan
You know, I mean, of course the molecule is very potent and it has strong USPs around is very difficult to make such predictions as to how it will fare because what matters is the phase four data. Phase four means that post launch marketing surveillance data that’s also very critical. There is a pathway for getting to the prescriptions on the physician table. By that I mean that you need endorsement from certain cardiologists and you need phase four and you need outcome trials. So while even if this is a great opportunity, it will take a while for it to gain traction.
And regardless of that, I think it’s a new molecule so you have to wait and watch just in case there are any adverse reactions or whatever. So I think as far as our opportunity is concerned, we are in a very, very safe zone. That’s what we believe and that’s what the indications that we have. Beyond this, I don’t think I’m capable to comment.
Unidentified Participant
Okay, thanks. That helps. There’s one question regarding the contrast media. I mean I know that second quarter was marked by some transit issues but if you look at the nine month revenue and compare it, the growth is flat. So when do we expect like a material double digit growth here? If, if that is possible.
V.K. Singh
Terms of providing an outlook would be, would be difficult. But I think when I was trying to say that there are scale up around three molecules and molecules are of large volume high value products. So. Okay.
Unidentified Participant
Yeah, yeah. Shivan, you talked about this one, the MC product. Can you also talk a little bit about the alternated ABSCL product? I mean what could be the realizations here and what are the target volumes here and timelines? I mean when, when can we see commercial launch for this product?
Shiven Akshay Arora
In FY27 you will see the commercial launch and the ramp up will happen from Q1 itself is our understanding. Per kilogram it would be, it would be higher than our existing main molecule because it’s a forward integration plane.
Unidentified Participant
Okay, and what kind of volumes can we get from here? Let’s say in the second year. Nessa 28.
Shiven Akshay Arora
That is difficult to comment right now.
Unidentified Participant
Okay, no, I will get back into queue, thanks.
operator
Thank you. Our next question comes from the line of Sujith Lodha from ICICI Lombard. Please go ahead.
Sujit lodha
Hi sir, this is just one thing on, on the pharma questions are being answered.
Sujit lodha
So on numbers while I understand that.
Sujit lodha
The contracts are fluid and we don’t have quarterly numbers and it’s very difficult to guide on that. But just a small number here that last quarter we. Last quarter, same year we did a pharma intermediate revenue of about 145146 odd crore which is actually about 40 odd crores in this quarter. Right.
Sujit lodha
So what is the quarterly number one.
Sujit lodha
Should work at for FY27 or what is the annual number one should look at? Is 145 crore a right number or is that exaggerated or 40 crore a very underestimated number. It should it be somewhere in between. What is, what is the right number one should look at in terms of normalcy of the supply chain and inventory if that happens.
V.K. Singh
See one is that we normally don’t like to give a guidance like this. The second is that it all depends as to how the you know, orders they pan out. I think just wait for a quarter and then the run rate that you will see from that run rate you can extrapolate.
Sujit lodha
Okay, okay, okay. Okay. So a quarter is what you are saying more will take for the things to normalize is what your. Your understanding is.
V.K. Singh
I think that’s a fair assessment to make. Yeah.
Sujit lodha
Okay. Okay. Okay. Got it.
Sujit lodha
That, that.
Sujit lodha
That’s it from my. Thank you.
operator
Thank you. Our next question comes from the line of Ankush Mahajan from Sanctum Wealth. Please go ahead.
Ankush Mahajan
So thanks for the opportunity. I’ll just try to understand sir that if the end product is giving growth of mid double digit growth that is showing strong prescription on the on their side. Also new markets are also growing expected to grow in Japan. So just try to understand the nature of this supply chain, how this stocking and restocking happening.
Ankush Mahajan
Actually so would you throw some more.
Ankush Mahajan
Light actually because and products is doing very well. Growth is there. Then they stock it at the earlier level. Can we say before 2, 3/4. They stocks raw material earlier at 2, 3/4 before the launch and something like that.
Ganesh Karuppannan
We supply the advanced intermediate and this gets converted to the API and which gets converted to the formulation. So from the point of supply to the point of purchase There is about nine to 10 months and when the molecule is new then you.
Ankush Mahajan
Yeah, these lag of 3/4. Yeah.
Ganesh Karuppannan
You know it’s so difficult to give some sort of a number. I mean if you are trying to create a model. But then broadly yes, that’s that’s the type of guidance that you can work with.
Ankush Mahajan
But still there is a constant. They are whatever the number they are releasing, the growth is there, growth is there.
V.K. Singh
And that’s why we have been saying that there is channel inventory and there’s some destocking happening and you will see the numbers revive very soon. Just be a bit patient I think.
V.K. Singh
From a stocking scenario to Limited product. I think we are at the end of the transition.
V.K. Singh
From the last two quarters. We can say that there is destocking. So maybe one more.
V.K. Singh
Not from the last two quarters, but yes, last quarter we did. But maybe, you know, we could take it offline. If you have more concerns and queries on this.
V.K. Singh
You can explain more about the N molecule. And there are some reports available online about the N molecule in terms of how it’s entering new markets and that could be a good indicator for absorption.
Ankush Mahajan
Thank you sir. Thank you very much.
operator
Thank you. Our next question comes from the line of Shashank Krishna Kumar from MK Global Financial Services. Please go ahead.
Shashank Krishnakumar
Yeah, hi. Thanks for taking my question. So my first one was on the six late stage assets. I think last call we did indicate that we have seen some RFPs for one phase three and two commercialized products. So anything incremental in terms of updates that you might have to share, whether we can see some of these getting converted in terms into orders, say sometime next year, FY28. Anything that would. Any update there?
V.K. Singh
Just wait for some more time. I think they are moving very fast and in the right direction. Last time we spoke about two lateral entries. Very advanced conversations are on on both of them. And to some extent the capacities that I envisaged at VIZEC will be also.
V.K. Singh
Catering to these opportunities.
V.K. Singh
So just give us a little more time and we’ll make some announcements soon. But all that I can say is that they are moving in the right direction. Both the opportunities that we spoke about.
Shashank Krishnakumar
Got it. Thank you, that’s helpful. The second one, on the new sweetener that we are looking to commercialize now, can we sort of expect it to start contributing meaningfully from FY27 or will this largely be contingent on the VIZAG capacity coming in and then we’ll probably start seeing this contributing to the sweetener revenue. How should we think about it?
V.K. Singh
I think between FY27 and 28 there are certain milestones that we are working towards. I think in terms of the target capacity that we are Targeting is about 10% or $1 billion. So for a large molecule there has to be some work at piloting in terms of proving ourselves to the target customers. So I think in terms of the development, we are very confident in terms of the pilot quantities in FY27. This will give us some very valid indicators in terms of continuous engineering. The backward integration in Mahad is a very continuous plant. That is why the CAPEX is optimized.
And that would be the endeavor for this large as well.
Shashank Krishnakumar
Got it sir. Thanks. That’s it. From I think.
operator
Thank you. A reminder to all the participants if you wish to ask question you may press star and one at this time. Our next question comes from the line of Vinay Shah from the Corporate Daily. Please go ahead.
Unidentified Participant
Yeah. Good evening sir. I hope I’m audible. My question is the manage. Yeah. The management. Management has attributed that the recent revenue decline is due to the customer destocking. However, during the high growth period of H2FY25 to Q1FY26 we observed a nearly 100% spike in trade receivables rising from 177cr to 350cr. Could you please explain this period of significant credit led sales and why it was immediately followed by two consecutive quarters of a sharp slump. Sharp revenue slump.
V.K. Singh
I didn’t get your question. Can you repeat that please?
Shashank Krishnakumar
We observed three good quarters H2FY25 and Q1FY26. Three good quarters with a spike of 100% trade receivables from 177cr to 350cr. And after that ofs happens and there are two slump quarters back to back wherein customer destroying is happening. And so the previous 3/4 sales were led by credit. So can you please explain this? See.
V.K. Singh
This is normal when a new product is getting launched. I mean if you track any new launches then filling up the channel is very critical because getting the product to the patient and ensuring that any prescription that is written gets filled up. This is something which is very normal in the pharmaceutical world. So I mean usually that’s how it happens. So I don’t see any. Actually I’m not able to get your concern.
Shashank Krishnakumar
So I think if you see in the numbers also my friend, I think in 2024 the PAT was about 160 crores. Around 160 crores. In 25 it became 300 crores. So after listing we’ve been able to double the profit. So the endeavor of us is to definitely grow the company and going forward also the target launches that we are looking at, I think the outlook should remain positive.
Ganesh Karuppannan
Okay, thank you for your question. Can we expect the next quarter to be better normalized again?
Ganesh Karuppannan
You know, as we said we don’t really give a guidance but. But like we already mentioned it may take a quarter or two for this particular opportunity to get back to normal. In fact be better than the past.
Ganesh Karuppannan
Thank you.
Shashank Krishnakumar
Thank you.
operator
Thank you.
operator
Participants who wish to ask a question may press star and one at this time. Our next question comes from the line of Alamkar Garude from Kotak Institutional Equities. Please go ahead.
Alankar Garude
Hi, good evening everyone. So if we adjust for the 5060 crores of goods in transit which you had called out in the second quarter, the contrast media sales have actually declined on a sequential basis. And we also would have had the ramp up of the gadolinium based NCE and possibly some validation supplies of the iodinated product. So in this context, this trying to reconcile the low contrast media sales, was there any pricing pressure or any specific volume impact which you would like to call out?
Ganesh Karuppannan
First of all, there are no volume or pricing pressure as such. And as you rightly said, there was a huge, what we call sales cut up last year. So last quarter, but it was followed by, I mean the cutoff essentially means dispatches have happened. So those dispatches now got recognized. We, we spoke about it last quarter.
Ganesh Karuppannan
Also.
Ganesh Karuppannan
Just to clarify, the closing cutoff for this quarter is also similar to opening cutoff. So you didn’t see the impact. But actually our dispatches, if you actually see from a production print, we have a pretty strong production of contrast media this quarter and the cutoff for December is also similar to the opening cutoff. So that is a pretty positive news. As for contrast media is concerned and we should be recognizing that in Q4.
Alankar Garude
Okay, if I understood this correctly sir, the goods in transit were higher in the second quarter. Was that the issue in the third quarter as well? And you expect it to be better in the fourth quarter?
V.K. Singh
It is a similar number. So the maybe if I go back to Q2, the opening of the quarter, we didn’t have too much of goods in transit. It was actually more in the closing. So that’s why you had a significant impact in Q2. But in Q3 both opening and closing are more or less similar. So the business is as usual. There is a very steady state of dispatches. So like it is not that there is a one off in Q2 which is not there in Q3. I think that assessment is not correct. You would actually see whatever cutoff we have in Q3 getting recognized in Q4.
Alankar Garude
Okay, sorry to persist on this. Just trying to understand the numbers. If you look at 81 crores of contrast media sales in the second quarter, you had said about 51 crores of goods in transit and we reported 124 crores in this quarter. So I mean if I add that say 51 crores to 81 crores, the number is actually higher than the 124 crores that we have reported and I mean we were expecting at least some ramp up after the commercialization of the gadolinium based NC and possibly some validation supplies of the iodinated product as well.
So just trying to reconcile these numbers, sir.
V.K. Singh
See as far as the gadolinium category, the sale is constant. There is. It is almost reaching some sort of a steady state. Although the product is not comparable to the iodinated product. When you look at the key product, our production and dispatches were higher in Q3. Actually the amount we recognized is even with considering the opening cutoff is bit on the lower side actually because we still have that goods in transit as for December end, which is actually slightly more than what we have as opening. Okay, point I can explain offline in terms of the frequency cancellation.
Alankar Garude
Okay, got it. Okay. So basically you’re saying the gadolinium based NC was flat sequentially. And you, you mentioned about flattening out. I mean are we expecting any, any growth here in FY27 or.
Shashank Krishnakumar
I would say.
V.K. Singh
It’S a steady state.
V.K. Singh
And whatever purchase order we have received, the numbers are reasonably stable and sustainable.
Alankar Garude
Got it.
Alankar Garude
I think instead of a quarterly, maybe you will have to look at from a yearly perspective. From a yearly perspective these numbers would be more sustainable.
Alankar Garude
I think just to give you another additional data point on this NCE molecule, I think we’re just reading some reports it’s growing by high teens. So that’s definitely encouraging from the future capacity utilization standpoint.
Ganesh Karuppannan
Okay. So eventually there could be some growth. Okay, fair enough. The. The other question was VK you, you said BlueJet will continue to be the primary supplier for the Piapi molecule. What is giving us that confidence? You mentioned about being in discussions and there being some binding forecast but some purchase orders. But this point about being the primary supplier, especially given the realignment in the supply chain which you alluded to earlier. Just trying to understand this and if you could provide us some comfort as to what is giving us that confidence.
Alankar Garude
One is the sheer momentum, two is the quality. I cannot elaborate more momentum of what?
Alankar Garude
Sir.
V.K. Singh
We have been supplying. We have supplied large quantities in the past. I mean you can see the data. Huge quantities have been supplied by us in the past. Past. And so that’s the momentum that I’m talking about. And two, I think our quality is extremely consistent because we are giving it from a very high tech, automated and dedicated facility.
Unidentified Participant
Okay. Okay. Understood sir. That’s it. And that’s it from my side. Thank you.
Shiven Akshay Arora
Thanks.
operator
Thank you. Next we have a follow up Question from Shashank Krishna Kumar from MK Global Financial Services. Please go ahead.
Unidentified Participant
Hi, thanks for the follow up. Just wanted to check. So from a normalized grass gross margin standpoint, should we take this quarter’s figures as the normalized margin or is it likely to be closer to the nine month figures? How should we think about it?
V.K. Singh
I said it should be between 50 to 55% depending on the product mix. Okay.
Unidentified Participant
Okay, got it. And just the last one on the Vizag facility. What is the incremental PNL impact that we should try and build in say for FY27? Because obviously this will get fully commercialized after a point. But what is the incremental piano hit in the near term, which we should sort of expect.
V.K. Singh
Mostly most of the Vizag expenses would be capitalized and we need to just see the portion of expenses that cannot be capitalized because it’s going to be a green field and I don’t expect any significant P and L impact back.
Unidentified Participant
Perfect. Thank you. That’s helpful. That’s it from.
operator
Thank you. Our next question comes from the line of Andy from Rave Ventures. Please go ahead.
Unidentified Participant
Hi, good evening. Thank you for taking my question. There’s one question. So given the recent moderation in operating cash flow and the announced thousand 4K textbook, could you elaborate on how management is thinking about funding this investment? Is it like specifically how do you expect to balance the internal accrual versus existing cash and investments and like say potential for external financing such as debtor equity? If yes, then what could be the guardrail around leverage or dilution as you execute on this capex? Thank you.
V.K. Singh
Good question. Ganesh, can you take it up please?
V.K. Singh
Right, so we have 410 crore cash as of December. Okay. We will continue to use internal accrual for the initial phase of CapEx. Okay. We have both opportunities open. We could actually tap the debt market or we could also like use the capital market. Anyhow, we have certain headroom to be offloaded to meet the minimum promoter stake of 75%. So we have all options. And as we get into long term contracts with the customer, we are also evaluating co investment options. So for us being a debt free company, we have all options available.
Unidentified Participant
Amazing. Thank you so much.
operator
Thank you ladies and gentlemen. We take that as the last question for today. I would now like to hand the conference over to management for closing comments. Over to you sir.
V.K. Singh
We thank you all the participants and we will meet you in the next quarter. Thank you. Thank you.
operator
Thank you on behalf of BlueJet Healthcare Limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.