Concord Biotech Limited (NSE: CONCORDBIO) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Unidentified Speaker
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Analysts:
Unidentified Participant
Chintan Sheth — Analyst
Ritika — Analyst
Naman Bagrecha — Analyst
Sumit Gupta — Analyst
Chintan Shah — Analyst
Presentation:
operator
Sa. Sam. It. Foreign. Ladies and gentlemen, good day and welcome to the Q3 and 9 month FY26 earning conference call of Concord Biotech Limited hosted by Antique Stockbroking. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company and it may involve risk and uncertainties that are difficult to predict. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation.
Conclude. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Mrs. Sumit Gupta from Antique Stockbroking. Thank you and over to you sir.
Unidentified Speaker
Thank you and good. Good afternoon everyone. I welcome you all to the 3Q and 9 month FY26 earnings conference call of Concord Biotech Limited. We thank the management of Concord Biotech for providing us with the opportunity to hold this earnings call from the company. Today we have Mr. Ankur Bhai, Joint Managing Director and CEO, Mr. Ravi Rajkaria, CFO and Mr. Prakash Sajnani, AVP Accounts and Finance. I would now like to invite Mr. Ankur Bhai to give his opening remarks over to you sir.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Thank you. Good afternoon ladies and gentlemen. So we delivered a steady performance during the quarter. Reporting revenues of rupees 278 crores representing 14% year on year growth. For the nine month period revenues declined by 5% primarily due to challenges in H1 arising from uncertainty on global trade due to US tariff dynamics, delay in written confirmation from CDISCO and the deferral on tender waste supplies in Middle east market. Importantly, these headwinds were largely timing related rather than structural. Let me give an update on how these situations are evolving now. So we have started the. So firstly I would like to express my gratitude to the.
Sorry one second sorry on that. So we have also started with Stellon Biotech, our subsidiary to the US subsidiary to drive marketing. So uncertainties around tariffs and global trade dynamics temporarily disrupted customer procurement patterns and delayed second source opportunities as customers waited for greater geopolitical stability before making firm decisions. However, following clarifications that tariffs do not apply to generic products order momentum began to recover. Now with the US trade deal taking shape, we are seeing increased engagement and more advanced discussions around larger second source supply opportunities and CDMO partnership written confirmation approval delay from Cisco was which did not allow US to sell in the European market for a couple of months was received in early November which has resumed the supplies back to normal.
However the ramp up will happen in gradual manner. Last being deferment of tender based supplies to Middle east market was kept on hold on account of geopolitical tensions. This is currently status quo and and we are monitoring it closely. Having said that we will be the preferred supplier to them and once this is resumed we will be able to recoup the revenues from this tender. We have also seen India EU Free Trade Agreement announced earlier this year and we view this as a positive long term development. This agreement enhances access to one of the world’s largest and most regulated health care markets and strengthens India’s position as a global manufacturing hub.
Given our established presence in the EU market, we see this as a strategic opportunity over the medium to long term. Also we would like to mention the Union budget which is broadly supportive of the sector. Of particular relevance is the Biopharma Shakti initiative, a rupees 100 billion five year program aimed at strengthening India’s biopharmaceutical ecosystem. Its emphasis on R and D talent, development, manufacturing capabilities and faster regulatory approval aligned with our fermentation API expertise and supports long term visibility. While spillovers from earlier disruptions are expected to materialize gradually with all positive developments across the industry, we believe the Q4 will be stronger.
This is also reflected in our Q3 performance where revenues grew by 14% on a year on year basis. Speaking about key highlights for the quarter, our injectable facility has received WHO GMP certification which will enable us to sell in the domestic market via our own brand and contract manufacturing opportunities. Our initial focus remains on the domestic market with plans to expand into emerging markets following the necessary regulatory approvals. We have taken meaningful steps towards building this as a long term growth platform for the company. The facility has a peak revenue potential of approximately 600 crores.
We have incorporated Concorde Lifegen Ltd. A wholly owned subsidiary to further strengthen our marketing, sales and distribution capabilities in India. We have also started with Stellon Biotech, our US subsidiary to drive marketing, distribution and commercialization of of our products in the US creating a direct commercial footprint and supporting global market expansion. From pipeline perspective, we have completed DMF for Nystatin and Voclosporin last year and during the current year as previously communicated, we plan to launch two new products primarily in the anti infective segment which offers large volumes, niche positioning and limited competition. Moving on to margins profitability during the nine month period was impacted on account of startup costs associated with the commercialization of our injectable facility.
That said, our core API and formulations business continues to operate with stable unit economics excluding injectables related startup cost and cost associated with our US subsidiary EBITDA. Margins remain in the range of 40% for Q3 and nine month FY26. As the injectable business scales up over the coming quarters, we expect this temporary margin impact to gradually normalize. Moving to segmental performance in Q3FY26 API revenues were at rupees 219 crores representing growth of 24% on a year on year basis. These figures exclude inter unit sales to our formulation business. On the formulations front revenue stood at Rs.
58 crores compared to Rupees 68 crores in Q3FY25. On the leadership front, we are pleased to welcome Mr. Ravi Raj Kareer as our Chief Financial Officer. He brings over two decades of experience in the pharmaceutical and healthcare sector and his experience will further strengthen our leadership team. In summary, during Q3 we witnessed a gradual improvement in volumes despite it being a seasonably softer quarter due to holiday period and year end closure in our key regulated markets, we are entering Q4 with greater optimism and a stronger growth momentum. While FY26 is expected to remain below our historical averages primarily due to the challenges encountered in the first half, we anticipate that FY27 and beyond will reflect a normalization in performance and regaining back the momentum in at least to our historical averages.
Over the medium to long term, Concorde remains well positioned to deliver sustained growth through injectables, cdmo, new product launches and continued market share gains. With strong regulatory credentials, differentiated manufacturing capabilities, disciplined capital allocation and expanding growth engines, we remain confident in our long term strategy. With this, I hand over the call to Ravi Raj Kariya, our CFO for financial and operational performance. Thank you, thank you Ankur and good afternoon ladies and gentlemen. First I would like to express my gratitude to the Concorde Board and the management team for welcoming me into the Concorde biotech family.
I’m truly excited to join the organization at such a pivotal time with a strong foundation and clear vision for growth. I look forward to closely working with the leadership team to strengthen the financial discipline, enhance the transparency, support the strategic initiatives that will drive the growth long term value for the stakeholders. Let me take you to the financials and operational performance for the quarter. On a revenue front, our revenues for the quarter three financial year 26 stood at 278 crores as compared to rupees 244 crores in the same period last year witnessing a growth of 14%.
Our revenues for nine months financial year 26 to that 729 crores as compared to rupees 770 crores in the same period last year with a degrowth of 5%. Revenue from API business stood at 219 crores in this quarter against rupees 177 crores during the same period last year with a growth of 24% revenue in 9 months financial year 26 for the formulation business. I’m sorry. Formulation business in this quarter stood at 58 crores as compared to 68 crores in the same period last year. Formulation revenues for nine months of financial year 26 stood at rupees 164 crores.
Revenue from our domestic and export business grew collectively by 14% in quarter 3 versus last year. Quarter now speaking on the EBITDA, EBITDA for this quarter stood at 99 crores as compared to 98 crores in the same period last year. EBITDA for 9 months 26 stood at 249 crores. EBITDA margin for this quarter stood at 35.6%. EBITDA margins were largely impacted on account of expenses related to the commercialization of new injectable facilities and also on account of expenses related to the setting up of subsidiaries in the US market. Excluding these impacts, EBITDA margin for quarter three and nine months financial year 26 stood at 40% on profit after tax.
Our profit after tax for this quarter stood at 64 crores as compared to 76 crores in the same period last year. Profit after tax was impacted on account of impact of new labor costs. The extent of rupees 3 crores and also there was a higher other income of rupees 15 crores in quarter three. 25 compared to rupees 10 crores in the quarter three this year. If we exclude these impacts, there would have been a higher growth in profit after tax numbers compared to what was seen. We are a zero date company with investments, bank balance and cash and cash equivalents to the tune of 1263 crores as on 1225-12-31.
With this I shall now leave the floor open for the question and answers.
operator
Thank you so much sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on their Touchstone telephone. If you wish to remove yourself from the Question queue. You may press star and two participants are request to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question come from the line of Chintan sit from Greek capital. Please go ahead.
Chintan Sheth — Analyst
Hi, thank you for the opportunity and congratulations Ravi Raji for joining Concord. My first question of course is on you know, the growth which you mentioned that FY26 will not be, you know, grow as per historical trends which we have been growing so on, on. On Beyond FY26, how. How do you see, you know, business momentum going on? How confident you are, you know, the external factors which we have faced this, this year in particular would not be, you know, what gives you the confidence that we will be back to our normal growth? That’s one.
And second on the labor code which, which we have kind of provided provision of 3 odd crore. That is. That is on a retrospective basis we have taken the provision. But if you can provide going forward, how should one look at on the recurring basis the impact of new labor code to our finances? That’s visa to do and I’ll jump into it.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Sure, sure. So let me first talk about in terms of the growth. So you know, historically if you see we have grown at around 18% or so. And during our previous many interactions what we have said is that the way that we look at growth over the next few years is that while the injectables can do a much larger business, but we have considered half of the business over the next three to five years which contribute to around 6% growth. And then we had also considered growth coming in from the CDMO because of enough capacities available and considering that how globally India is becoming more favorable for fermentation compared to say Europe or China.
So there was a 6% growth that we had kind of taken it over a medium term period. So if you put together your baseline growth of 18 and the 6% from injectables and that of CDMO, you reached to 30%. And you know, in our previous discussions we have also said that there could be years where you would see these kind of challenging environment because of which we kind of toned it down to say a CAGR of 25%. Once these two growth drivers start kicking in at full capacity till that time you would see gradual movement going from the 18% to the 25% CAGR.
Now with the introduction of new products across the fermentation and us taking different initiatives across formulations and gaining more market share because in the last three to Four months. We have also gained significant accounts business across multiple products. So all these when factored in together gives us a lot of optimism that the return, that the growth can return to the historical cagrade and there could be potential upside which could be there on account of injectable facility where we have, you know, as I mentioned recently, now got the WHO GMP approval. And soon we will be engaging with the customers to kind of qualify this facility for their contract manufacturing as well, while we launch the products into the domestic markets under our own brand name as well.
So, so I think all these factors put together gives us confidence that the next year we will be at least doing our historical cagr. And with favorable positionings on the other matters, we could be slowly and steadily inching towards the CAGR that we have set to be there over the next three to five years.
Chintan Sheth — Analyst
Ankur, just to follow up on injectables. Given we will be focusing on domestic, do we have to incur a little bit more to develop the, you know, on ground team? Because I, I believe this injectable products will be directly supplied to hospital chains, right? That, that was our initial understanding. And for that do we have to incur a little bit more on marketing, a little bit more on, you know, developing that business in the domestic part and that will also have some impact on our margins overall?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Not really because you know, we already have field force for the critical care division and you know, close to around 100, 120 people are there for the, for the critical care segment and they are supplying to the large corporate hospitals, mid corporate hospitals, government institutions, nursing homes, span India. So you know, when we, when we, and you know we are selling our own branded generics. So once we have kind of moved the manufacturing in house, I think that has given and that continues to give a lot of confidence to the doctors that now the entire value chain is being controlled in house rather than be relying on third party manufacturers.
Because for some of the key products earlier it was our API, but we were using a third party manufacturer while doing the marketing on our own. But now with our own manufacturing, many of the core products would now be shifted in house. And I think that would give a lot of confidence to the doctor and also help us grow the business in the domestic markets for the trade now also for the government institution. If you see that is also a very, very large segment which was currently being untapped by us because only manufacturers can participate to supply the government markets.
So with us being a manufacturer now in a span of one year or so, we will also start getting access to the government supplies. So you know, which is currently absolutely untapped by us while it is there. In our nephrology segment where we make the tablets and capsules because they are own manufacturers. But in the injectables that was not the case. But now with our own manufacturing, that market would also significantly open up which would give us significant opportunities to grow in this segment. And of course, as I said, the third opportunity is to us become a contract manufacturer.
But we also see a lot of potential in our own marketing. And that is the reason we have also started Concord Lifegen, which is only to cater to a certain specific segmentation of the hospitals which we were currently unable to tap, which I said was, you know, the government institutions and certain smaller nursing homes while the larger corporate hospitals and mid corporate hospitals were already being tapped into.
Chintan Sheth — Analyst
Got it, got it. And on the employee cost, if you can. And then I’ll jump back in. Thank you.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Can you elaborate the question? What is your exact question?
Chintan Sheth — Analyst
So this new labor code related, you know the provision you have made the 3 odd crore, right? That is I think, I believe for the retrospective period the provision has been made for the employees where the gratuity and the whatever is required has been provided for. But going forward on the lacquering basis, do we expect employer cost to increase a little bit because of that? And if that is the case, if we can quantify this.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So yes, your understanding is correct. This is a one time correction. That is basically a labor code across the industry and the companies. But way forward it is going to be an incremental normalized cost that we will have.
Chintan Sheth — Analyst
But it won’t be material enough for 10 basis point or 20 basis point increase.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
No, that will not be material enough.
Chintan Sheth — Analyst
Okay, got it. Thank you. I’ll come back.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Thank you.
operator
Thank you. Ladies and gentlemen, anyone who wishes to ask a question may press Star and one on the Touchstone telephone. Reminder to all the participants. If you wish to ask a question, you may press Star and one. The first question. Our next question comes from the line of Ritika from Veliquest. Please go ahead.
Ritika — Analyst
Hi sir, thank you for taking my question. So could you give more understanding on how is the CDMO project doing? And we were also in interaction with other projects for cdmo. How is that shaping up?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So one of our projects is already commercialized in the US and we are already in talks to kind of evaluate it, to take it to a global level. So different markets are also being evaluated by our partner. But for now I Think it is primarily the US market and this is basically an NDA product where our client has launched the product in the us so the first year or so has been primarily about setting up the marketing setups and kind of reaching out to the wholesalers and establishing that channel. So sales have already started and what we’re looking at is that for the next year we are looking for further forecasting from them.
So discussions are ongoing. So there is a good potential of the product in the US market with the possibility of expanding it to the global markets. There are of course other discussions happening on other projects as well. But as I mentioned that the first half of the year was a challenging year because many of the projects were temporarily put on hold because of the uncertainty around the tariffs. But post September we have again started engaging with them and I think discussions are now are progressing quite well. We are also meeting these customers in March during dcat.
So we are confident that there should be some positive movement around some of the products. Some of the projects which were at relatively advanced stages of discussion last year. We continue to file a lot of RFQs primarily in the enzymes as well as in CMO opportunities for the innovator companies. So a lot of effort is being put around that and we are seeing positive momentum around this.
Ritika — Analyst
Also sir, clarity in terms of whether that 100% tariff which was imposed on branded drugs from India to US does that stay currently?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So to our understanding it did not cover the brands which were already launched into the markets. We’ve not read the new fine print but even in the earlier stages, what we got the clarity around October, November that the newer it is not going to be impacting the products that have already been launched into the US markets. So the customers or the clients that we’ve been talking to already have the products launched into the US markets. They are the innovator companies. So then shifting the manufacturing to say from any other part of the world to India would not be impacting them in any manner.
But yeah, for any newer launches, at least the last that we knew of, it was impacting those clients if they move their manufacturing out of the US but again it’s a very dynamic world that we’re living in so there could be potential changes happening which we are not right now familiar with. But yeah, it doesn’t impact already launched branded products in the us.
Ritika — Analyst
So lastly, could you help us with what is the CapEx number that we are looking for this year and ahead?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So CapEx is primarily, you know, maintenance CapEx that is, that is going on and you know, in terms of number maybe Ravi Raj can share more. So for the year, you know, generally we have a capex number of around 150 crores. As a maintenance capex, that’s the number generally we have.
Ritika — Analyst
Okay, so that’s the capex that we are looking to spend for FY26 and. Ahead of the union.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Yes.
Ritika — Analyst
Okay, sure. Thank you so much.
operator
Thank you. Our next question comes from the line of Naman Bagrecha from IFL Capital. Please go ahead.
Naman Bagrecha — Analyst
Thanks for the opportunity. Firstly, can you explain in terms of why was there a decline. Hello, can you hear me? Yeah, hello, yes, just wanted to understand the contraction in gross margins despite let’s say around 79, 80 kind of API revenue contribution. Anything specific that you want to call out?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Not really. I think this is primarily on account of the product mix because if you’re looking at from a quarter on quarter basis but if you would look at from a nine month basis actually the gross margin has moved from 77% to 78%. So on a quarter on quarter it will be difficult to kind of take a call. And as I mentioned it is primarily on account of the product mix which if you as you extend the time period that kind of gets stabilized. And on a nine month period we have actually seen an improvement in the gross margins by 100 bps.
Naman Bagrecha — Analyst
Fair enough. One on the formulation business, I believe that one HXY 25 had that middle east tender or let’s say high grades but Q3 this time also we saw kind of decline. So anything that you could call out in terms of why there is. There is still, let’s say. And how should one look in terms of the future?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So you know, I’m not sure if I understood correctly but what I understand is that you know the formulation business you’re seeing that there is slightly a reduction compared to the last year. Is that what you’re asking?
Naman Bagrecha — Analyst
Yes, yes. Why over this is there’s 14% decline in the formulation business. My belief was that the Middle east tender was stopped or halted in first half of FY25. So there won’t be any base impact or any issues in the third quarter of FY26. But despite that we see a decline in the formulation business. So what really is, let’s say what are the challenges?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
No, no, I think what the way that as I said that the way that one needs to look at on a quarter, on quarter is that there could be areas that we have kind of, you know, addressed through the API. So and you know that Gets reflected in our AP API numbers which grew at 24% because there are certain opportunities that would have been captured through the API rather than through the formulation. And this is primarily coming in the emerging markets because in the India market as well as in the US market the sales volumes have increased.
But in the emerging markets where we are not able to say gain opportunities through the API only, that is where we kind of look through the formulation route. But if that is getting addressed through API, which in this quarter you are seeing with the growth on the API then it had some bit of an impact on the. On the formulations.
Naman Bagrecha — Analyst
So you highlighted around 20, 25 crore of sales in 2Q. So has this been captured fully in 3Q?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So that was. That has been fully captured which was on account of the written confirmation. So that was to the tune of around 20 to 25 crores. Which you know, actually during our last call only that sales had already been executed because it happened somewhere in early November or so. So that sales to that customers already started to build on because they were only awaiting the certification. Once that certification was there, then the sales started to pick up.
Naman Bagrecha — Analyst
If I X out, I mean adjust that, I mean largely if you see quarter on quarter, that is the growth for the API business. So base business still has not, let’s say really grown. If I adjust for that, you will.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Not be able to take that out someone because it is what you know, it is not that the. Let’s suppose in that particular, in this particular quarter that those customers have picked up double the quantity that they would want it. So it’s not that you know, what it does is it kind of gradually spills over a little bit into the slowly and into the subsequent quarters. Because if they picked up something that instead of say July, August, they’ve now picked up in October, November. So it will take time for them to consume those quantities. It is not that they picked up in November and they will again pick it up in December.
The 20 crore. So that does have a little bit of spillovers happening. So it may not be the right way to kind of look at it that if we consider the growth minus that number, then the growth is a different number. That would not be the right way to look at the numbers.
Naman Bagrecha — Analyst
And on the margin front this time you call out Ceylon setup processes. Could you provide what were the injectable plant losses for the quarter and what were the setup costs related to Stellan.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Injectables would be close to around 10 to 12 crores and the Stellon cost would range anywhere between 5 to 10 crores per quarter. Five to ten crores per quarter.
Naman Bagrecha — Analyst
Do we expect this five to ten crore cost to increase from here on or this is, I mean this is the base and here, from here on we’ll start seeing.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So the procedure of already getting the licenses for the US business is already completed. I think now we are gearing up for the launch activities. So in subsequent few months or so we should start seeing the launch happening. So there would be sales realizations coming from Stellon because they are not doing not only for Concord products but they would also be looking at in licensing opportunities opportunities. So and you know there would be certain costs which probably we were incurring right now with third parties which would now be done through Stellon. So you know there could be some cost which kind of gets compensated because of the reduction that we may end up seeing with our third party distributor, current marketing partner.
But yeah, as I think business with Stellon would grow, these costs would then be accordingly taken care of.
Naman Bagrecha — Analyst
So anything in any target in mind in terms of will be moving away from the distributor and completely sell everything from this facility itself or there will be a mix of third party and.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So in licensing opportunities are going to be, you know, in the near future because as I said that since right now we are just establish and the approvals for the licenses have come in. So the in licensing opportunities are going to be somewhat of a medium term roadmap. But you know, till that time all the dossiers that Concords have the supplies are going to be from Concorde to Stellon. There are few andas which currently our current marketing partner is not marketing those products. So they are immediately going to go to Stellon for marketing and then that is going to lead to the sales increase for those products in the US.
Manufactured till that time in Concord. Till the time in licensing opportunities which are a medium term do not get executed.
Naman Bagrecha — Analyst
On the previous question on the US CDM opportunity. Is this that animal health product or this is something else?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
No, no, these are human products. So we have five doses, five ANDAs which.
Naman Bagrecha — Analyst
No, no, I’m not talking about AMD. I’m talking about the CDM opportunity. Okay.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Yeah, that is an animal product.
Naman Bagrecha — Analyst
Yeah, animal health product.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Yeah.
Naman Bagrecha — Analyst
Yeah. I have more questions. I’ll get back into the field.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Sure. Thank you.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address all the question from the participant, we request you to kindly limit your question to two question per participant. If you have a follow up question, please rejoin the queue. Our next question comes from the line of Sumit Gupta from Antique Stock Broking Ltd. Please go ahead.
Sumit Gupta — Analyst
Hi, good afternoon sir. So first question is on that you mentioned increased engagement on second source supply. Post clarity on US tariffs. So are these discussions largely with existing customers or new innovator or generic players and what is the kind of conversion timeline that one should expect?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So I think engagement is going on on both fronts. Most of the discussions that we are doing is where we already had some level of engagements on other products with those customers and that also gives us an opportunity to engage a lot more on the newer products as a second source opportunities. Secondly also certain markets the customers have started looking at us as whom we were not engaging with them in the past. Say for example Nistatin which is an anti infective product, it has a slightly different customer base as well. So in those cases those are relatively newer customers for Concord as well.
Most of those are newer customers. Of course we have few Indian customers wherein we already have established relationships and that is helping us to kind of engage with them on these newer products as well. So I would say it is a mix of both. We do have couple of products at the API level, which is our own API where we are engaging with the innovators and I expect that maybe one of those projects hopefully will commercialize in this quarter and hopefully with another one we would take some validation batches at least if not in this quarter, in the next quarter.
So I know of at least two are there where the engagement level with the innovators are. They are relatively newer products and engagement levels are quite at an advanced stage. We have also actually to add on commercialize one anti infective product with one of the innovative companies as well. The supply may not look much in this quarter because they’ve just started picking up, but I think we have a good level of engagement visibility over the next years time with them.
Sumit Gupta — Analyst
Understood. So how should we see the Q4, the exit run rate or as we enter FY27, especially in the APIs and second on the how should we see the formulation segment over the next two to three years?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
See I mean giving exact numbers for quarter four will be, you know, would be difficult. But as I said that there has been an uptick in revenues and we are optimistic of the improved performances in Q4 but difficult to put a number to how things are going to be in Q4. But yeah, I think given the optimism which is there and given that we are getting a lot of second source opportunities, we are optimistic of the growth rate for Q4.
Sumit Gupta — Analyst
Understood, sir. And there was a question on formations also. So how should we see that like over the medium term?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Yes, I think formulation also will have a big growth driver because you know when to answer Chintan’s question which was there that you know in the past that injectables when asked answer to his question that injectables we are looking at a 6% growth contribution to the revenues over the baseline of 18%. And that is a facility which has recently got commercialized, got its who GMP also. So we are now engaging with a lot of customers to kind of get that facility qualified for them. So in the next one to two years we should see good level of growth coming in from not only our own brand generics but also as a contract manufacturing partner.
Because no company in India has its own fermentation API as well as injectable formulation. Even the API companies who are importing the product or exporting the products to India, they are also pure API companies only they don’t have their own formulations. So there is no company like Concord which would have this mix of fermentation APIs and finish formulations which should give us a good competitive edge for our products as well as for contract manufacturing. So you know, over a medium term I think injectables would play out quite well or should play out quite well. And then from a medium to long term perspective is where we would start seeing growth coming in from the emerging markets with the registration processes going through.
And that should kind of also help growth in the medium to a longer term perspective. So we are seeing good traction coming in from the injectable side. And what we’re doing with Stelon and with newer dossiers being filed in global markets that would help us drive growth in the oral solid opportunity as well. So that’s how at least we look at the formulation business over the next two to three years.
Sumit Gupta — Analyst
Understood sir. Thank you.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Thank you.
operator
Thank you. Our next question comes from the line of Alankar Garude from Kotak Mahindra Bank. Please go ahead.
Unidentified Participant
Hi, good afternoon everyone. Uncle, do you still expect to grow overall sales in FY26?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So as I said Avantat in my previous response, that difficult to give you a number in terms of what the growth is going to be looking like. But yes, I think the way that we are progressing, the second half looks to be much better. We have already seen how quarter three is doing. We are optimistic of quarter four. We have a good order book position. We have continued to build on that over the next one, one and a half month that we have and deliver those, you know, those quantities and sales to our customers. But putting a number there would be challenging for me.
Unidentified Participant
Okay, I asked this because you had said that there would be growth at overall level in FY26, but okay, I take your point. Second question is, can you broadly break down the API growth across pricing volumes and new launches for 9 month FY26?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So if you see the launches that happened in last year were only for two products which was Nystatin and Voclosporin and these two products, one is a Parafo product, the other is a generic product where there are only three players, mainly three players in the global markets. And both of those two players are based out of Europe. So that gives us a lot of advantage to kind of become a leader on that particular anti infective product. And we have already started seeing good traction coming on those products. We have started supplying validation quantities and exhibit batch quantities to our customers customers and they are filed also.
So hopefully in the next year we should start seeing commercial sales happening to these customers across global markets. But for this year it has been primarily supplies of exhibit and validation batch quantities which on a number basis it may not be that significant a number. But much of the growth, as I said, is coming from our already commercialized 201829 products which are there. These two products that have got launched have seen more of validation and exhibit batch quantities being supplied in this, in.
Unidentified Participant
This year within those 28, 29 existing molecules. How would you break the growth between volumes and pricing? Just a qualitative response should suffice.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So here it has been all volume growth only. I mean being in the kind of, you know, while I would say that in fermentation products where the kind of competition that we have, there are only maybe two or three players on the market. But in spite of that, I don’t think that it is. You can go with the pricing increase. So it has been mostly or majorly a volume gain rather than a price increase.
Unidentified Participant
Way of growing as pricing decline. Ankur, if I look at 9 month FY26 for the API business, I mean can it be as high as a double digit pricing decline or more likely in the in the single digit range?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
If it would have been a double digit price decline, then the gross margins would not have increased by 100bps.
Unidentified Participant
Okay, so more in the single digit range here. Would that be a safe number to look at?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
See again it depends on a product to product and customer to customer. Sometimes as I said earlier, also in our previous discussions, you gave certain discounts to certain customers for larger growth in other products and all. So we have more than 300 customers. So if we end up giving some customers some discounting in anticipation of newer businesses, I would say that to be in single digits, not because of pricing pressure but because of larger opportunities to address too is how I would put at it.
Unidentified Participant
Got it. And a couple of smaller questions. Firstly, did you recognize any revenues from the injectable facility at all in the third quarter?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
No. Insignificant because it primarily the exhibit batches that we took which was applied to the, to the India market because you know, you have to go with the six month stability and other things. So if we, if we did that, you know, we commercialized the facility in March. So with six months of data also you end up being in September. So October, November, December did see supplies of those validation batches. But it is insignificant in the overall revenue mix.
Unidentified Participant
Fair enough. And what was the share of immunosuppressant APIs to the overall API sales mix in nine months?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So you know what we would look at is that for the 77, 78% of the API business it would be closer to around 70, 75% which has been historically been. So there has not been any major change in the mix between immunosuppressants and anti infectives and other segments. So I’m happy to see that the other segments are also growing, you know, in terms of volumes because you know I did mention that we are trying to work with the innovators in the anti infective segment as well. So there is a lot of growth momentum which is coming in the non immuno segment as well, while immuno segment continues to build and kind of, you know, stay strong there.
So the mix has been relatively more or less the same as it had been last year or last nine months.
Unidentified Participant
Understood. And the final question, Capacity utilization squeeze for unit one, unit two and unit three.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Yeah, yeah. So for the quarter the unit one was at 81%, unit three was at 40% and unit two was at 27%.
Unidentified Participant
Got it. That’s it from my side. Thank you. And all the best.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Thank you.
operator
Thank you. Next question come from the line of Chintan Shah from JM Financial family office. Please go ahead.
Chintan Shah — Analyst
Hi, thank you so much for the opportunity. So I had three questions. So one is, you know, continuing from the previous participant, if you can just comment more on your non immunosuppressant portfolio. Basically what is the strategy there? The competitive Intensity is happening. And over the longer term, how do you see the mix evolves? That is the first question. Second is, you know, wanted to do a bit more understanding on the R D side basically now since we are looking to go aggressive on CVMO side. So how are we, you know, looking to ramp up our R D operations? That’s the second question.
And third, I think we see a good amount of cash flow that’s building up on a balance sheet. And now with Generative Capex we’re done through. So are we actively looking at any inorganic opportunities to probably add to our portfolio and grow more? So those are my three questions. Thank you.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Thanks. So you know, as answered earlier, that for the nine months we’ve not, you know, we have seen that the mix has been more or less similar while volume growth are also happening in the anti infectives, antifungal and ONCO segment. Now even the newer products that we have, the ones that are there in the pipeline, all of them are in the anti, infectious, antifungal and ONCO segment. And the underlying principle of they are again products where you would see limited competition and they are complex and niche products. So like the ones that we launched last year, like Nistatin, as I mentioned earlier, there were only three, three players, Concord being one of them.
We have few products which are there in the pipeline right now where there are again maximum two or four players and most of them, as one would see, are either from Southeast Asia or Europe. We have one product which is in pipeline which is where you have good competition from China. But the way that we are developing that product, the cost competitiveness is also significantly lower than that of China’s cost. So we have a lot of products where we are actually selling our APIs into the China market. It’s not that this is one such product.
We have many products where we are much, much more competitive than even the Chinese manufacturers. So to answer your question, the newer set of products which are there there is the base principle remains the same as it has been for the immunosuppressants and it is just a much smaller time to kind of, you know, gain market share. But many of these products are gaining market share as we speak. It’s just a matter of time till the time, you know, till it reaches to the numbers that you would have seen in our other segments. So that’s how we would look at the non immuno segments when we talk about the R and D&CDMO.
We have more than 100 scientists which are working in the R and D. So the team is continuously working on new products development as well as the CDMO opportunities. And once any newer project comes in, each customer is assigned a project leader who works very close with that customer. So here it is more about the expertise which is there rather than the cost that gets loaded onto. That’s why you would see that our R and D cost typically stays 2 to 3% which is significantly lower than the cost which many of the formulation companies would see because it is more of an expertise in a skill driven rather than a scale driven developmental cost.
So but if we do feel the need at any point of time to ramp up our people, that is not a challenge at our end. But at least for now we are not seeing any reasons to kind of go towards that path. I think we have a good mix of PhDs and R& D scientists who are working on these products. To answer your third question, that while we have a good healthy cash position we are looking at different opportunities and I would say those opportunities are being looked not only organically but also inorganically. So there are fewer opportunities that we are continuing to look at inorganically and there are few opportunities that we are evaluating if kind of look at from to grow in agencies of fermentation to take it organically as well.
So you know both the two options are there on the table to kind of see that how we can optimally utilize this cash flow.
Chintan Shah — Analyst
Okay, great. Thank you. That was very detailed and helpful. Thank you.
operator
Thank you. Ladies and gentlemen, due to the time constraint we will now take the last question for today’s conference and that comes from Mr. Chintan Seth from Greek Capital. Please go ahead.
Chintan Sheth — Analyst
Thank you for the follow up opportunity. Just clarification on the capex maintenance capex number which you mentioned. You know that 100, 150 crore annually on the asset base or GROSS Block of 1100 or last year it looks seems to be pretty high. We used to give guidance around 20, 25 crore earlier. So I’m just trying to understand whether why the increase in maintenance part and second is on the cash balance which you mentioned it is it 1,298 crores as of December. That that’s the number you mentioned that these are the two. Sorry.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Yes, so of course you’re right. There is a level of maintenance capex across which is closer on 30, 40 crores. We also have some capex which is going for certain newer projects that we are trying to build on with some of our customers and certain opportunities to kind of grow over the next year. So There is some. Some bit of capex happening around there in addition to the. To the maintenance capex.
Chintan Sheth — Analyst
So it’s a blend of growth and maintenance. Is it 150 and the cash balance is 1290 or 1290.
Unidentified Speaker
Investment is 340 crore. Total cash in the investment is 340 crores.
Chintan Sheth — Analyst
Okay. Sorry I lost your voice.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
It would be. There is a connection there. So it is close to 3. 350 crores.
Chintan Sheth — Analyst
Total cash and cash equivalent will be 350 or current. Right?
Ankur Vaid — Joint Managing Director and Chief Executive Officer
Yes. Okay.
Chintan Sheth — Analyst
Okay, got it. Thank you.
operator
Thank you so much. Ladies and gentlemen, that is the last question for today. I would like to hand the conference over to the management for the closing comments. Thank you. And over to you team.
Ankur Vaid — Joint Managing Director and Chief Executive Officer
So thank you everyone for joining on our Q3 and 9 month FY26 earnings call. We hope we have been able to address all your queries. For any further information please get in touch with us or sga our investor relation advisors. Thank you once again and have a good evening. Thank you.
operator
Thank you sir. Ladies and gentlemen, on behalf of antique stockbroking that concludes this conference, thank you for joining us and you may now disconnect your lines.