Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
CAPLIN POINT LABORATORIES LTD (NSE: CAPLIPOINT) Q4 2026 Earnings Call dated May. 14, 2026
Corporate Participants:
Sridhar Ganesan — Managing Director
Analysts:
Julie Mehta — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Kaplan Point Laboratories Q4FY26 earnings conference call hosted by 361 Capital Market Private Limited. As a reminder, all participant lines will be in the listen only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during this conference please signal for an operator by pressing Star and then zero on your touchstone telephone. Please note that this conference call is being recorded.
I now hand the conference over to Ms. Julie Mehta from 361 Capital Market Private Limited. Thank you. And over to you ma’. Am.
Julie Mehta — Analyst
Thank you Farah and good afternoon everyone. On behalf of 361 Capital we would like to welcome you all to the 4Q FY26 conference call of Kaplan Point Laboratories Limited. Today we have with our senior management of the company represented by Mr. C.C. Partipan, Chairman, Mr. Vivesh Partisan Vice Chairman Mr. Ashokatiban, Vice Chairman Dr. Sidhal Ganeshan, Managing Director and Mr. D. Mungidharam, CFO. I would now like to hand the conference over to Kathryn Point Management for the opening remarks.
Over to you sir.
Sridhar Ganesan — Managing Director
Thank you Julie. Thank you everyone for joining and welcome to our Q4 and FY26 results and earnings call. Please note that the copy of all our disclosures are available on the investors section of our website as well as on the stock exchanges. And also do note that 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 risks that the company faces. The conference call is being recorded and the transcript along with the audio will be made available on the company’s website as well as the exchanges.
Please do note that audio conference call is copyright material of Kaplan Point and cannot be copied, rebroadcasted or attributed in press or media without specific written consent of the company. I would like to now hand over the floor to Chairman for his opening remarks. Thank you. Good evening and welcome to our investors call. Let me first list out the differentiation that we have created in the last five years. Revenue doubles from 1085 crore to 2,300 crore in 2026. Liquid assets tripled 928 crore to 2726 crore.
Free cash reserves tripled 470 crore to 1,470 crore. EBITDA, PBT and PAT increased by 2.5 times. Investment in capex stands at 900 crore in the last five years. The gross contribution Improved due to operational efficiency. Currently we are building new factories for injectables. All the machines for the new factories are imported mostly from Germany and Italy. In the next two to three years we’ll have 17 injectable lines for USA and other regulated markets of the world. Our factories will be digitalized.
Every machine that enters the factory will have video master to make the qualifications easier and also far operational efficiency. Our video SOP for which we file the patent has some unique features. It is visual before verbal. We do not depend on one QA or one QC or one production or one engineer. The knowledge will be stored in the video library. Our visual SOP ecosystem is is both thematic and non thematic. The thematic side involves cameras, screen voiceover, online monitoring and dashboards.
On non kinetic side, visual intelligence, behavioral discipline, institutional learning and memory compliance, Consciousness, operator confidence and quality mindset. For example, China rise is a kinetic and non kinetic story. The present world affects the following API solvents, freight and lead time to destination, currency swings, energy unpredictability. However, our model of keeping the goods next to the customer in the last 20 years has produced these compounding effects. Hence, we always keep the goods in our subsidiary warehouses for minimum of 6 months.
Stock in the form of stock in the warehouse, stock in transit and work in progress. This antifragile model has really helped us for the best fundamentals even in row markets of lifetime in the last five years. Now that we have substantial anda. In addition to that, we also buy for our business. In the next three years we’ll have maximum products registered in the highly regulated markets such as usa, Mexico, South Africa, Brazil, Chile and Colombia. Further, we increase the number of women employees on our shop floor which ensured the discipline.
The discipline that resulted due to women empowerment also guaranteed the integrity and quality which are very very essential for regulatory inspection. The financial freedom for the rural women made them comfortable at their home and also in our shop floors. We always arranged to pick them up from their houses for all the ships which ensures themselves during volatile period, the cash becomes a strategic oxygen. Our cash flow helps us to build new factories and we are also buying, as I told you before, more and more AMD’s for the US market.
And we have been trying to buy a distribution company either in Chile, Mexico or Brazil. And we are sure that we will be able to reach the maximum products in this region. That way it will help our distribution company interest if we buy that will actually take us to the nook and corner of the private markets of these countries. This one is not the mainstay for big companies. Hence the focus of our business will be more on private market. In addition to the tender businesses, we will also focus more on RND for hormone injection and inhaler areas which are unique in the regulated markets.
Further, we’re also on the lookout for a meaningful acquisition of a facility as we have enough cash resource in our system. Let me also convey that I read actually in BS Business Standard 1000 of March 2026 they mentioned that the Kaplan stand at 673among the thousand listed companies of India which comprises of all segments in addition to pharmaceuticals. They also mentioned that we stand at 42nd portion among the pharmaceutical companies. When I looked into the details I have found that 16 companies above us had lower profits than us.
The statistics is based on the top line not on bottom line of cash flow. Finally, when our revenue doubled and the liquid cash and liquid assets tripled, we never had the extraordinary fundamentals that we are creating. Now. We only have one USDFDA factory with three old lines and two new lines. Now that we are going for a massive infrastructure expansion. As I told you that we would have 17 lines of injectable in the next two to three years and we will also have automation, digitization and visual SOPs.
More ANDAs and more Registration of the regular market of regulated markets of Latam entering in countries like Brazil and South Africa also will increase the prospects of our business. The variety of injectables in the form of liquid injections, ophthalmic, PFS bags, BFS fill, finish, lio, unconceptable hormone injectable will be there in the next three to four years time, two to three years time and will also take us to the next orbit which is for sure. Finally as you all know well, business in the formative years is the puddle of unknown unknown.
When you develop the credence for your business over a period of time and you establish the KPIs through video SOP, then it’s simply going above and beyond that is the deliberate growth. Thank you. Thank you very much. Thank you Chairman. Now I request Ashok to give us a few comments.
Operator
Thank you all. Thank you all and welcome to our investor call. Be talking about our Latin American facts and
Sridhar Ganesan — Managing Director
A
Operator
Few
Sridhar Ganesan — Managing Director
Points about how we’ve been growing in Latin America. I would like to start with Chile which is our newest market. We have won 35 products to the tune of $10 million for the next 18 months to be supplied. We have also received 135 registrations in Chile. So far we have submitted around 40 more products our private market is the most important in all the countries where we are. So as chairman mentioned, we have two candidates that we are looking to offer to buy that are two solid distribution companies that reach no corners of the country.
In Chile we, we have these two candidates because they actually have their own sales team. They have their own logistics team also. So we are currently doing bio studies for more than 40 different products that are of very good margins and have very few players in Chile. I would like to move on to Central America, where we’ve been present since 2002. So a peculiar thing about Central America is what happened during COVID was that a lot of independent pharmacies started growing a lot. And during COVID what they basically did was they just started opening pharmacies wherever they could find a space because a lot of people were going out of jobs and they put their savings into businesses.
So we made sure that all these individual pharmacies arrived. And if we did a recent inquiry into which we found out that their shelf space for Kaplan products are 41% in these individual pharmacies. So while we were talking about this with the board, we want to start a liquid manufacturing facility. And the reason for this is once we register all these liquids, our shelf space in these independent pharmacies will go from 41% to 57%. We are also getting into brand marketing in Dominican Republic, Guatemala and Nicaragua.
We chose the Central Nervous System line where we already have Biograph done for more than 12 products. And we will be starting with that in September of this year going forward to Mexico, our biggest bet and our biggest market in Latin America. So far we’ve received 25 registrations. So far we participated in eight different products for a two year tender which we won all of them. We also participated in an oncology tender with a partner of ours from China who gave us four different products and we won those products too.
We plan to do a sale of around $4 million in the coming two quarters in Mexico. As you all know, we already purchased the land in Mexico to build our first factory in Mexico. Also because we get a 16% advantage over price when you participate in the tenders in Mexico, we will be having liquid ovules, suppositories and blister tracking facility for tablets and capsules. This
Operator
Is the update from my side and I would like to pass it on to Vivek. Thank you.
Sridhar Ganesan — Managing Director
Thanks Ashok. I’ll just take a few minutes to very quickly brief everyone on our progress in the US which is continuing to be one of the most Important pillars of our growth and long term strategy. As many of you you would have seen from the results, FY26 has been a very strong and meaningful year with progress on almost all parameters. You know this is from a few years ago we were a cash burn EBITDA negative company and today we completed around 470 crores with EBITDA. That sort of mirrors or comes very close to the parent company’s numbers which have been benchmarked amongst companies of our size.
So we are very happy and proud to report that on the product front this has been a standout year for us. We’ve received approvals for 10 ANDAs in the last 4 quarters and we’ve also acquired another 15 ANDAs with 5 in Kaplan first May taking our total tally as on date to 60 ANDAs as of this morning. And importantly, this expansion is not just in numbers, it’s also in depth because we cover the entire gamut of sterile products. We have products which is in vials, in pre filled syringes, in IV bags, in three piece dropper bottles, for octal mix.
We are now getting into cartridges, we’re also getting into blofill seal. So not only are we showing good progress with the products that we have been doing, we are getting into sort of uncharted territory for Kaplan Point as we get into some of these complex technologies. In addition to us, we will start seeing some meaningful revenue out of non US markets in the in the coming few years as well because we’ve already filed 54 products globally in non US markets such as Canada, Europe, Australia, South Africa, etc.
And we’ll start to see some progress there from a capacity standpoint. As Chairman said, we are building phase three at a very advanced stage and we’re also expanding capacities internally in phase one and two with expansion of our ID bag line to three times the capacity. It’s a very niche area where we have multiple products already approved. And as we get into the slightly more complex platform, this opens up new opportunities for us when we put up our retail army the company shortly. So this I think would be a good time to touch upon Kaplan’s own label.
In the US A lot of people are very skeptical about Kaplan launching our own label because our B2B business was doing so well. People were a little bit skeptical saying that this might, you know, distract our partners and this might, this might probably, you know, show some degrowth. But very happy to say that in our first full year of operations we’ve nearly touched 100 crore in revenue. Now we were about 11 million plus in revenue with our own label and we’ve done this with no degrowth whatsoever in the B2B business as well.
We had launched 30 products under our own label in the last year and another 15 products is going to be launched in the coming year. We have weekly ordering from the four largest wholesalers in the US and pretty much most of the large IDMs that do business in injectables are our customers right now as we move from strength to strength. So I would say that in summary, our used business is transitioning from a phase of foundation building to one that is scaling and growing in depth. So with a very strong pipeline, expansion of capacities, entering into complex technologies, et cetera, we are very well positioned for sustained and profitable growth in the years ahead.
And I would like to request our CFO to throw some light on the numbers before we open up for questions. Thank you. Thank you. Mr. Good afternoon to all who have taken time off to take part in this university of post 26%. The results have been highly gratifying and we are pleased that we have done well non B across all parameters. Numbers are already there with you for a couple of hours now and we would be glad to clarify your queries on the results. Before going over the numbers again I would like to present distinctive financial points.
One with an exceptional balance sheet compounding assets happened this year. Our mesh was expounded by about 748 crores during the year from 3,003 to 631 crores from 2,886 crores in the previous year. This is 26% in one year. That is signals strong intrinsic value creation by the company. Massive forex translation value that has in the form of network all flow. The product assets are at 177 million against liability of 22.2 million. So as we all know that we are 100% export oriented company and the assets most assets out number the liabilities.
So this has resulted in FCPR movement of about 141 crores and gone directly into the reserve of the company. And then third point will be as already Carol cash is in zero leverage continue to strengthen our balance with 1421 crores in cash and 2726 crores in liquid asset. This strengthens this strength provides us with significant strategic flexibility. As chairman also put it that we are on the lookout for meaningful attention earnings quality and cash conversion. CFO remained at strong at 523 crores representing 80% of the cash conversion of PAC this shows profits are real cash not only in books.
Profit growth of 20% ahead of revenue growth of 13%. Profitability grew materially ahead of revenue growth reflecting operating leverage and improving business mix. Next is capex before capex I would like to inform the investors that our capex R&D spend this year has been added monthly almost 5% of the turnover and this is the first time you have crossed 100 crores in R&D spend and capex features for the last year was 238 crores and just the summary of the ongoing project. Out of the portion crores what we initiate we have catalyst 954 crore TWAP add on 46 primarily representing what is our injection plant in north floor Oncology injection plant which incidentally has been calculated in the month of April.
Post our MOH approvals and whatnot and advances what we face we have talked about enhancing the line capacity. We have already paid an advance of 109 crores for various imported equipment and the balance about 500 crores will be incurred in the next 18 to 24 months from out of our own cash generation then fixed asset turnover ratio. People were asking last time. So glad to inform this is about 3.91 times on the inventory held in market and WAP potential we have a potential of relatively about 900 crores in terms of sales.
So our strategy to keep inventory closer to the customer and one number is paying high dividends. This is excruciators inventory in the US facility, US factory and the warehouse bay. To summarize, FY26 was not only a growth year but also here of strong balance sheet compounding network increase the turning on quarterback growth operating cash flow above 500 crores. Liquidity pools tension to 2,100 crores by remaining virtually debt free. This is all from me for the past instance. We’ll be more than glad to take any questions over to you Mr.
J. Thanks Sevasta. We can open up the floor for questions now please.
Questions and Answers:
Operator
Sure. Thank you very much sir. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may enter STAR and one on the touchtone telephones. If you wish to remove yourself from the question queue, you may enter Star and 2. Participants are requested to please use only their handsets while asking a question. We will wait for a moment while the question queue assembles. The first question is from the line of Aman Soni from 7 Alpha. Please go ahead.
Mr. Soni, your line is unmuted Please ask your questions.
Sridhar Ganesan
Hello? Hello. I am audible.
Operator
Yes, now you are audible. Please go ahead.
Sridhar Ganesan
Thanks for the opportunity. Good evening and congrats for a good set of numbers. The question is on with growing cash generation, how does management is going to prioritize between the inorganic opportunities and the incremental capex and the higher shareholders to pay out? As I told you before, the inorganic opportunity, in fact, we are waiting in the wings. It can be in the form of actually buying the ands, which of course we have been doing. Actually, we are waiting for more and more opportunity on that aspect.
And as I told you, the distribution company will also open up bigger opportunity for us for the private market, especially in Latin America. And going for acquisition for the sake of acquisition, I’m sure would not advise us to go for actually acquisition without going for a meaningful accusation. That will be a vanity. I don’t think it’s addressable. And as I told you, what is important today, especially in the Vuca world, we are going for the completion of facilities. And we will be completing most of the facilities that are injectable, which you are aware.
There are hardly three or four companies who would have 16 or 17 lines of injectable action in India. When we complete all these injectables, all these injectables, we are aiming to go for US and other major markets. That means that’s a great opportunity which will open up in the form of not only for our own products to be sold in us, but also in the form of cmo. Second one is we are concentrating more on R and D for complex products. This is one of the things which is very important. The third one, we are increasing the restoration in many of the larger geographies.
These are few things which are very important. If you need any other questions, please tell me. I would be able to answer to your question also.
Operator
Got it? Got it, sir. Secondly, on the receivables part, receivables have grown materially ahead of the revenue or revenue growth. So is this timing related thing or any other reason for that
Sridhar Ganesan
I could not hear properly. Rick, are you able to. Yeah,
Operator
Yeah. Request CFO to take this please.
Sridhar Ganesan
Yes, as we have mentioned in the press release, also while the which I talked about improving my network, that also increased my receivable. So out of 136 what we reported 11 days is attributable to this which has gone into receivables, but it’s not flown through the so but for this my receivable should have been 125 days. We have been promising on 120, as rightfully said. Timing also is one of the factors that have gone through Last quarter we have won a big tender in Salvador and a lot of supplies have gone into that which are in the process of being received in the market.
And because the receivables will be collected by end of Q2, so this is a big tender and most of the supplies have gone during February, March and then we are in the process of receipts there. So this is one of the factors that also contributed to the. I would like to add one more. The currency in el salon is $US$. And when I was working in this Latin American market, I used to see Colombians giving lot of credit in Ecuador where the currency is dollar, the currency of Colombia is to get weakened and they allow deliberate, actually deliberately they used to be credit more so that their annual is also more because of the depreciation of their own currency.
Here, of course we don’t want to do that way even if the delay, the delay that happens no from El Salvador is going to contribute to actually in the form of increased profit for our company. As you know. Well, you know, the dollar actually is getting strengthened and our rupee is getting weaker. In no way this is going to affect our bottom line also. And this last question on the outlook for ever 27, the terms of the top line and specifically on the. On the kind of margins, these are very exceptional margins we are doing.
So how much structural are these margins are going at? We will continue to do well. As I told you in course of my speech, the best is yet to come. Maybe the best will come after two to three years. If you look at actually the past in the last five years, I don’t want to repeat again actually what all tripled, what all doubled and all you have seen. So the next three to five years is going to be the best period for Captain Point. And of course we will do well actually. But it’s difficult to tell anything on a quarter, on quarter basis or on a yearly basis.
Whatever we say, everything actually is happening in the form of building the factories or whatever it is. Because you don’t see many companies of our size building so many factories without debt. And after having invested in the capex till we have enough cash flow, that will also help us to go for inorganic growth. But we are waiting for actually that kind of opportunity. It will happen when it happens. Whatever you expect in the form of the growth can come even in actually six months or one year also if you go for inorganic actually opportunity.
But again we don’t want to simply grab anything and everything. Rather we would prefer to wait and actually go for something which is meaningful.
Julie Mehta
Yes, Got my answer sir. And thank you. Thank you very much. Thank you very
Sridhar Ganesan
Much.
Julie Mehta
Thank
Sridhar Ganesan
You so
Julie Mehta
Much.
Sridhar Ganesan
Thank
Julie Mehta
You so much.
Operator
Thank you. Participants with questions may enter star followed by one on your handsets. The next question is from the line of Ahmed Madha from Unified Capital. Please go ahead.
Sridhar Ganesan
Thanks for the opportunity. I have few questions. Firstly, the revenue growth in the Latam Africa business has been pretty strong and last few quarters we added close to high single digit mid single digit growth and this quarter is relatively exceptional. So can give some sense what has
Julie Mehta
Led to high growth in the specific generous.
Sridhar Ganesan
See, sometimes markets fluctuate and whether it is B2B or B2C generic business is based on supply and demand. We know we have an advantage of keeping the goods actually in the warehouse. If the profitability is not there in our sales, we will not sell. Selling for the sake of selling doesn’t make any difference to the company. Sometimes you wait and actually do it. Sometimes of course we bundle it and sell also that point of time there is a possibility that profit may come in single digit also. But overall if you look at it as you rightly said, the overall profitability for the year 2526 I think is fairly good.
Am I right? My question was from the front of revenue growth. If I look at the revenue growth of non US piece of the company that revenue growth percentage was in single digits for last few quarters and we have spoken on the call that it will take couple of years for us to jump up and you have been doing a lot of initiatives on Chile, Mexico and other markets. So the question was that this growth
Julie Mehta
Is higher in this quarter. Is there any specific sector
Sridhar Ganesan
Which I can even highlight? See today we don’t have depth of orders. The facilities we have is running actually at the optimum capacity. If you look at actually our business you will see at least 40 to 50% of it is in the form of actually outsourcing for Latam market. So we don’t want to especially you know when we go for outsourcing it’s not easy to get a good facility where you can do the outsourcing very effectively. That’s also one of the reason for us to actually limit the top line. But at the end of the day what is important, whether it is a Latin American growth or you know, US growth overall only you have to look at it, am I right or something?
The Latin American growth will start doing or Start flourishing actually after we complete the registrations mainly in markets like Mexico. Now that as Ashok told the business of Chile will start from this year and it will start actually increasing many folds over a period of time. Increase. What you are referring to the growth from 432crores to 420crores this quarter Especially just I was answering the previous question on the data. It has a bearing on the past. So we did supply a lot of material close to the 5050 crores during the quarter to the Salvador.
The tenderness valued at about 15 million and most of the parts have gone from India. That is the reason this growth in Latin America has showing. Us slightly distorted but yes kind of business. Of course we had to rush and then export everything. Probably that’s the reason you’re telling. Okay, okay. I didn’t get to. Okay, yeah. And on the US side this year, I mean we have done exceptionally well in terms of growing the business and having our own label from here on with whatever ands we have acquired and organic approvals, we have got about 10 of them.
Is it fair to assume the growth rate of 2025 that’s what our rate in US shall continue till we reach
Julie Mehta
Larger number? Yeah, we, we,
Sridhar Ganesan
Yeah, we’re very confident that current numbers can be sustained. In fact we are confident that it can grow from here even further. Again the most important thing as what chairman was saying is we’re not seeing a dearth of orders. In fact we have another book that’s full for another six months almost. You know, and to an extent where some of these lower margin, very high volume products, we’re not even taking them on board. So I think we are certainly on track to see a very strong next year for csl.
In fact very strong next few years for CSL with all the capacity coming through. When it comes to our own label, the target we’ve set for ourselves is to double what we did last year. And I’m
Julie Mehta
Fairly confident that we should be in a position to achieve that.
Sridhar Ganesan
Would you like to sort of give a range of number what sort of growth we can achieve at least for the next year? We
Julie Mehta
Don’t
Sridhar Ganesan
Provide guidance but I just sang
Operator
This. Yeah.
Sridhar Ganesan
Okay. So when it comes to what current growth was, I think it was close to 30%. I think we can see another 25 to 30% next year. On the overall capital syringe business. When it comes to our own label, we did close to 100 crores. So the idea is to touch or go very close to 200 crore for the coming Year.
Julie Mehta
Last question from my side. In terms of you’ve spoken about acquisition,
Sridhar Ganesan
Considering an acquisition even last quarter and similar this quarter. And you spoke about obviously buying ends and that sort of profile. But considering the amount of cash balance we have, what sort of, what profile of acquisition will consider apart from buying nds, which I’m assuming won’t be a large ticket
Julie Mehta
Size, so it can give some sense of the profile of the company we are looking for. So
Sridhar Ganesan
When it comes, when it comes to acquisitions, there are many things I see of course, being our being a listed company, all of our reserves and surplus, everything is in public domain and for everyone to see. So you won’t be surprised when I tell you that almost on a weekly basis we receive a few opportunities, right? There are some opportunities that come in the us there are some that come in Latin America. One or two in fact come for the domestic market as well, you know. So the ones that we will be targeting is similar to what chairman was saying is good distribution entities, especially in countries where we are very early or we are very new, or in countries like the US where it makes meaningful sense in terms of the knowledge that we gather.
And when it comes to Amdas, I’m looking at it personally. We’ll be very opportunistic in terms of what we can acquire because we need to sort of strike the right balance between making sure that we launch all our approvals on time and at the same time not run into any sort of dirt in the pipeline. Because typically for most companies, including ours, the R and D outstrips the capacity. Right. So in injectable an area of high criticality in terms of compliance and manufacturing, scaling up is not as easy as it is in oral solid.
So taking that into account will be very opportunistic in terms of acquiring some AMDA in place of doing exhibit batches for new products and stuff like that. So that’s what we’ve done the last year. We are actively working on another one right now. Hopefully that should get over the line in the coming weeks.
Julie Mehta
Sure. Thank you so much. Thank you.
Operator
Thank you. Participants with questions may enter star and one on your handset. The next question is from the line of Chirag from Ms. Capital. Please go ahead.
Sridhar Ganesan
Hi. Thank you for the opportunity and congratulations. Vivek. Jen. Sir. For a strong set of numbers. I just wanted to first ask a question on the Central American Latin American operations and we have a chance to hear from Ashokji and also if you can just elaborate a little bit on the operations in that region a couple of annual reports ago, we heard that we have almost 14,000 daily touch points. How much has that grown to? We also believe that there’s a split between, you know, smaller wholesalers and distributors of around 60%.
Direct pharmacy, 20%. Could you just overall give us a view of the operations in the Central American market, if that’s possible?
Julie Mehta
Sure. Yeah.
Sridhar Ganesan
Yeah. Thank you. Yeah, we, every time we open a new country, obviously the number of points that we touch actually increases. So we opened Chile this year in a very big way. And obviously. So there are four big chain pharmacies in Chile. And on top of that, 30% of the pharmacies are also independent. So we obviously do not reach all the independent pharmacies right now through our own sales team, but we reach them through distributors that we sell to. And I cannot give you an exact number on how many points we have grown by, but what we are doing is, as I said, our shelf space in these individual pharmacies that we sell to in Latin America is about 41%.
What we are trying to do is strengthen our shelf space to get to 50, 55% where we are completely indispensable to these pharmacies. Does that answer your question? Yes, that was helpful. And Ashok, if you can also give us a little bit of an understanding on what proportion of our customers would be still distributors or middlemen,
Operator
What proportion would come from pharmacies, institutions, or smaller wholesalers?
Sridhar Ganesan
Okay. So in the whole of Central America, the business that we do about 18 to 20% is institutional, which is government. The rest is completely private market. So what we do have to do in Central America in these countries is you have to have two co distributors at least, so that they reach to those pharmacies that cannot fill in the everyday ticket sale, which is, let’s say we only do around about 300 products. A pharmacy that does, let’s say, a sale of $150 per day cannot buy all the 300 products.
So they have to buy through our co distributors. So, you know, each of these countries, we have two or three strong co distributors. They sell around about 10 to 12% of our sale, and the rest of it all is us going directly to the pharmacy.
Operator
Understood. Just to Clarify, you said 10 to 12% through those distributors.
Sridhar Ganesan
Yeah, 10 to 12% of our sale is through the CO distributors,
Operator
20%
Sridhar Ganesan
Is through the government, and the
Julie Mehta
Rest is all directly to the pharmacies. And when I say the rest, it also includes the chain pharmacies also.
Sridhar Ganesan
Understood. Very helpful, thank you. The second question is just doubling down on a previous participant’s question on the receivable date, I understand mentioned that a part of that is just FX change between the time the sale was booked and I guess the closing of the books. And that still brings us down to 125 days, which is at least 25 days higher than what we have seen in the past. Is this how we think the new normal would be and is this a strategic call or how do we understand that? Yeah, so Chirag, in the past as well we’ve been giving the messaging out that we are comfortable with somewhere around the 100 to 120 days range.
Now we are still within that range pretty much. But as CFO and chairman was saying before, we’ve entered into a tender in one of our Central American markets, very highly profitable tender by the way, where we needed to make sure that the supplies were done within 60 days. And it was a fairly large tender as well. So those numbers sort of moved it up by five, six days. But typically I think we are happy to be anywhere between the 100, 110, 120 days and that’s a sweet spot for us. But the larger picture that I want everybody to really see is we’ve been consistently able to invest hundreds of crores into our own capex, our own distributions.
And despite all of that, we are still increasing our reserves and surplus by a considerable number every year. So you can imagine that even if we do see another 5 days or 10 days increase in the future, we are going to be okay with it. Because when that money comes in, more often than not it comes in at a higher exchange rate compared to what it was previously. Right. So the cash flow, I would say that we are benchmarked amongst peers, we are probably most other companies in the same segment. So we’re not worried about that.
Anywhere between, like I said, 100 to 130 days even is probably still okay for us going forward. Yeah. Just to add to what writing off debts has been virtually negligible and close to zero. We have not been had any bad debts in the past which did not recover. There was only a delay, but not writing off. And most of these receivables now attributing the higher number is from government, give or take. Thank you so much for the opportunity. Thank you. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Richa from Equity Masters. Please go ahead.
Julie Mehta
Thank you for the opportunity. I hope I’m audible.
Sridhar Ganesan
Yes, ma’.
Operator
Am.
Sridhar Ganesan
Yeah,
Julie Mehta
My question was, you know, my question was on, you know what’s happening around the world, the Middle east tension, I know that’s not your core market, but. And you know, being closer to the customer helps to overcome the short term disruption. But how do you think if at all this could impact the business or margin or prices or maybe because of economic slowdown in the end geography, if it could have an impact on your business and any vulnerabilities that you may want to highlight.
Sridhar Ganesan
Yeah, I would like to actually give an answer on this. In fact, if you look at our past business, we in fact we increased the business, our profitability and everything actually went up only during COVID time. After Covid and during COVID So what is happening today, as our Prime Minister said, is something closer to Covid. So we all have to actually follow the frugal ways and we started addressing is very, very correct. But as a businessman, we should not allow the crisis to go waste and how we are managing it.
As I told you before, for the next six months we don’t have to produce any products that we have to sell in the market in Latin America. And the same way, Even in our U.S. Market, the goods are already available there in the U.S. Warehouse for the next six months. In addition to the six months, we also bought raw materials. Yes, there are some increase in the prices, but it’s not going to impact us. The reason being when the prices go up. If you already agreed actually to a price to your customer in the form of a B2B business or an LC, then of course what happens is you like to honor it, honor the commitment and then that’s how you lose money.
In our case, we are selling actually through our own, actually subsidiaries, warehouses. That’s not going to create any major impact to our business. On the contrary, this will open up the opportunity. The reason being a these smaller geographies where we are today in Latin America, the big players are only into brand marketing. I’m talking about multinational second small companies they want to empty in the form of actually stock and sale. They all actually sell it to some, some importer. So they will be very worried.
If they supply to the importer, they may or may not pay. The reason being most of the transactions today happens in Quebec. Nobody actually pays cash for a generic. But if you have your own warehouse, if you have people like, you know, we have more than 700 people working in the whole of actually Latin America. So it helps us to collect the money. We are there for the last 20, 20 years. 20, 22 years. And coming to currency crisis also Gautamanda Is very stable. There is nothing in the form of no fluctuation in the currency.
And coming to Nicaragua and Honduras maybe slight in slight fluctuation in the form of 3 to 4%. The rest of the markets like El Salvador and then Panama, Ecuador, the currency is dollar so it’s not going to create an issue. Costa Rican currency also stable. Chile also for the last four, five years, the currency is stable. Is there anything else you want me to. Yeah, thank
Operator
You. Thank you so much. And all the best.
Sridhar Ganesan
Thank you, madam. Thank you very much.
Operator
Thank you. Participants, if you have any questions at this time, please enter Star N1. The next question is from the line of Prince from family office. Please go ahead.
Sridhar Ganesan
Thank you for taking my question. I have just one question. So going forward, can the company maintain around double digit revenue growth. Growth rate and the partma that margin between 25 to 29% consistently during the year by 27,
Operator
28 and 29?
Sridhar Ganesan
Yeah. So as I’ve explained previously, we remain very confident that the business will continue to do well. We need to be patient for the next 12 to 18 months at least because there is a period of stabilization in pharmaceutical. Always what happens is there is a. I’m getting an echo from someone’s life.
Operator
Prince, is your line on handset or the speaker mode? Could you please switch it to the handset? Thank you.
Sridhar Ganesan
Okay, so with all things when it comes to pharmaceuticals, especially the regulated market, things take a lot more time because your product development to affluent itself takes around two years plus. So as we enter into the larger markets of Latin America, the US and things are going to take a little bit longer. But once it starts, you know, fortifying, I think it’ll be a very sticky business. 18 months and beyond. We feel that these numbers are going to get back to what they were before. I’m talking about Latin America.
So what we are seeing today in terms of the bottom line is please take into account that we have certain segments of our facilities that are not breaking even. Yes. If you’re talking about our API unit and if you’re talking about Amaris Clinical, which is basically completely backward integration. So despite all these drag on our bottom line, we are still looking at 27, 28% PAT and 38, 39% EBITDA which is in my opinion, at least from whatever I’ve seen in our size segment, nobody else has these numbers.
So with all these drafts, if you, if we can continue to maintain these numbers, you can imagine that, you know, 18, 24 months beyond these are going to be definitely maintained. At the same level or potentially even inch up a little bit. So I hope we’ve answered that.
Julie Mehta
Thank you. All the best.
Sridhar Ganesan
Thank you.
Julie Mehta
Thank you. Thank
Sridhar Ganesan
You very much.
Operator
Thank you. The next question is from the line of Ahmed Maza from Unified Capital. Please go ahead.
Sridhar Ganesan
Yeah, thanks for the opportunity. Again, just one question on foreign exchange, can you quantify what was the gain on foreign Exchange booked in Q4 as well as for the financial year if. Gain over the year the remaining about 4050 crores will be reflecting the. Out of 116 crore other income. What number will be roughly forex gains for the full year? If you can give just one number,
Operator
We can even write that to you Amit, so that we don’t take everybody’s time out.
Sridhar Ganesan
Yeah, no problem. Just another question considering the answer on the volatility part but considering the volatility in RM costs in general, obviously a lot of forex volatility and assuming we are net beneficiary of the INR depreciation but overall considering everything, are we able to manage the current supply chain or has there been any issues? Considering we have a fair amount of dependency
Julie Mehta
On China, how will you judge current situation? If you can give some remarks on.
Sridhar Ganesan
Go ahead sir. Our business in the form of outsourcing is much lesser compared to actually what we used to do in China and all. There was a time it was more of a natural hedging. Now that of course I think it’s in the region of 20 to 30%. And coming to the volatility, see the global economy is drowning in debt rather than water. That of course that will happen. But coming to us, what is happening to big companies need not happen actually the same way to a company where their fundamentals are unique or the business model is unique.
To try and do something which is unique then of course you will not allow this crisis to go waste. That’s what I told you for. Also prices are going up no doubt, definitely is going to go up. Also when it happens it is the model that makes actually, you know, you to make money or lose money. The moment we understand that the price of a material which we bought is higher, we also actually design the price at which we have to sell the product in the market. That’s why we don’t face any major issues with the honest with you.
Julie Mehta
Yeah, and just to quantify obviously you know, with regards to input materials like
Sridhar Ganesan
Glass and plastics and all of those things we keep getting, you know, increases from suppliers but of course we fight all of them back and then try to Rationalize it to the lowest amount possible. But just to give you an idea, the highest impact product for us that we’ve been doing especially for the US is less than 1.5 to 2%. The COGS I’m talking about that’s gone up by, you know, so we haven’t yet seen any major negative impact in the form of input materials going up significantly.
Julie Mehta
That’s it. Thank you so much.
Operator
Thank you. The next question is from the line of Pawan Kumar from RT Capital. Please go ahead.
Julie Mehta
Sir, can you comment on the CAPEX that is expected in FY27 and 28 and what would that be spent on?
Sridhar Ganesan
Yeah, when it comes to CapEx, the residual kettix that we have is the face of our injectable plant. We call it internally as COL2 and also two other ones which is we are considering a much larger capacity oral solids and derma facility in Pondicherry next to what we call our CP1 plant or existing plant. And thirdly we also will be completing our oncology API plant. In addition to this we are drawing up plans for our building in Mexico. That should happen sometime by Q3 or Q3. I mean it will start by Q3 or Q4.
When it comes to exact numbers. See for any numbers you can shed some light on.
Julie Mehta
Yeah, as I mentioned during
Sridhar Ganesan
My opening remarks also the Denver stage capex plan of close to 1000 crores. 510 crores remain to be spent. The rest have been spent. They are raised in the form of twat. The translation station is Adam 50 crores and Adam 43 crores are WAP. As we said advances to the external 109 crores or various lines that are being imported. This leads to about 500 crores give or take. Some can vary. The 510 crores will be spent over the next 18 to 24 months. This is the plan as of now. And we expect this does not contemplate the inorganic growth.
It does not contemplate Mexico, does not contemplate the Chile warehouses and quality control lab which we are planning right now. These are all not even point inside the drawing table right now. So once we get some clarity probably will update in the next quarter. So finance and sure will be the amount that is already identified and will be spent in the next 18 months.
Julie Mehta
Okay, thank you sir.
Operator
Thank you. The next question is from the line of Julie Mehta from 361 Capital. Please go ahead ma’. Am.
Julie Mehta
Thank you for the opportunity. Firstly, congratulations on a great set of numbers to the entire team. At Kaplan. So question. Basically it’s cater to the US business. So the US business has now picked up decent scale and size. So if we want to understand the growth breakup, how much of that would be organic and how much do we still have to account for through the new launches, be it the ones coming in or the pipeline or the Amdas that we are yet to acquire. And if you could also you know, share the ebitda margins for CSL for 4K and FY26.
Sridhar Ganesan
Okay, so on the breakup in revenue I would say that more than 90% of the revenue has come from the older products, products that were already in the market. So the 10AMBAs that was approved over the period of the last 12 months we’ve launched a couple of them. But the majority of it, especially the larger ones are in the process of getting launched in the next few weeks. In addition to that I would also suggest that 15 Handas that we acquired from outside, we are in the process of launching them which will only happen this year.
So you can assume like I said, Around 90% of all the growth that you’ve seen is from products that were already launched in the market. This is actually a good statistic as well because when most other companies I think are somewhere in the region of their average earning per Anna I believe if I’m not wrong is somewhere around 800,000 to a million whereas ours is almost twice that number, more than 50% higher itself. And of all the products that we have approved through, we were just discussing about this yesterday, literally just one product is the one that we’ve technically taken off the market because there were no sales.
Every other product continues to show good sales and we continue to receive repeat orders. And when it comes to the EBITDA margin for csl request Satya to answer this please.
Julie Mehta
Sure. Thanks. Thanks for your question. The EBITDA of CSL for financial
Sridhar Ganesan
Year 2526 is 142 crores which is 30% as compared to 102 crores last year which is 27,009%.
Julie Mehta
Okay. And sir, for the four Q notices.
Sridhar Ganesan
For the fourth quarter you’re asking the beta
Julie Mehta
Data?
Sridhar Ganesan
Yeah, it is 33%.
Julie Mehta
Okay, that’s helpful. And the last question is Ima Stephen. So also since we almost on a last leg of Capex now so do we have any plans for Capex going forward in the next two to three years or will that largely be maintenance and nothing that major?
Sridhar Ganesan
As we just discussed, we had taken on close to 1000 crore of capex of which 50% is done and then other 50% will be completed in the next 18 to 24 months. This doesn’t take into account the ones that we are going to be planning in Mexico, Chile, etc. So yeah, there is still certain amount of residual capex that needs to be completed. In addition to that I will just give you some certificate. Last. Last year we were able to add close to 400 crores to our surplus. Right? That is over and above what was spent in terms of capex.
So if you were to do some numbers over the last 18, over the next 18 to 24 months you can assume that despite the capex that we will be putting up the likelihood is that our reserves and surplus will continue to rise even further.
Operator
Okay, so that’s. Thank you.
Sridhar Ganesan
Thank you.
Operator
Thank you ladies and gentlemen. That was the last question. I now hand the floor over to the management for closing comments.
Sridhar Ganesan
Thank you to 361Capital bank and Rohit and Judy for conducting and thanks to everybody that took time out to attend our call and we hope to stay in touch with you. Thank you.
Operator
Thank you very much. Thank
Sridhar Ganesan
You very much. Thank you.
Operator
Thank you on behalf of 361 Capital Market Private Limited. That concludes this conference call. Thank you all for joining us and you may now disconnect your lines. Thank you.