Eris Lifesciences Ltd (NSE: ERIS) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Krishnakumar Vaidyanathan — Executive Director & Chief Operating Officer
Amit Bakshi — Chairman & Managing Director
Kruti Raval — Vice President of Mergers & Acquisitions and Investor Relations
Analysts:
Harith Ahamed — Analyst
Kunal Damesha — Analyst
Bino Pathiparampil — Analyst
Madhav Marda — Analyst
Kunal Randeria — Analyst
Nirali Shah — Analyst
Pragati Lunawat — Analyst
Rahul Agrawal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 earnings conference call of Eris Life Sciences Limited. Today we have with us on the call Mr. Amit Bakshi, Chairman and Managing Director, Mr. V. Krishna Kumar, Chief Operating Officer and Executive Director Mr. Sachin Shah, Chief Financial Officer and Ms. Kruti Rawal, Vice President M and A and Investor Relations. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note this call is being recorded. I would now like to hand the conference over to Mr.
V. Krishna Kumar, Chief Operating Officer and Executive Director of the company. Thank you. And over to you Saul.
Krishnakumar Vaidyanathan — Executive Director & Chief Operating Officer
Thank you. Good evening everybody and welcome to our Q1 earnings call. So to get started, the key highlights of the quarter. The domestic branded business segment which is now representing the fully integrated segment consisting of all acquisitions. It has grown 11% this quarter, thereby outperforming the IPM by 330 basis points. And if we exclude the impact from discontinued FDCs and some insulin shortages we’ve seen this quarter, the segment growth was 13 to 14%. The operating margin of the DBS segment has expanded to 37%. Despite the addition of 300 misses this year. The value creation in the Biocon segment continues.
The Q1 operating margin for this segment was at 30% which is up from 19% at the time of acquisition. The EPS acceleration has kicked off as per our guidance. We recorded a 41% growth in PAC stroke EPS in the quarter. We’ve taken a decision to ramp down the trade generics business. We took an EBITDA loss XTBF of around 5 crores in this quarter. After significant delays. We are happy to share that we have commenced the manufacturing of insulin wires at Bhopal and we expect the production of insulin cartridges to commence from quarter four. We expect the upside from the RHI cartridge market opportunity to accrue starting November December of this year.
And the OCF to EBITDA ratio from protein operations came in at 65% this quarter. And post adjustment for strategic stocking up of Biocon products inventory stood at 40%. We’ll talk more about this going forward. The key numbers for the quarter DBF revenue of 702 crores versus 632 crores. So 11% growth year on year DBF EBITDA margin 37.2%. An expansion of 155bps year on year. Biocone segment margin of 30% versus 19% at acquisition consolidated revenue of 773 crores up 7.4% year on year console EBITDA margin of nearly 36% up from 35% in the last in the Q1 of last year and consolidated profit up to tax of 125 crores in the quarter up from 89 crores in Q1 of last year.
Some key updates on the Insulin business so the the DS shortage is, you know, by and large behind us. However the DP shortages continue to persist so we took a revenue hit of around 10 crores in this quarter on that account. In response to that we have created a strategic stockpile of insulins to help us in the subsequent quarters. This has created a working capital increase of 73 crores in this quarter with a consequent effect on OCF Bhopal Vial Manufacturing Commission as already articulated and we have also initiated the supply of infusion wires from MJ Biopharm site as an additional source.
The cartridge operation in Bhopal is expected to be commissioned in Q4 and we are on track to leverage the market opportunity in RHI pencils starting November December. This is a visual of the wireless line which is operational at Bhopal which is capable of handling liquid as well as lyophised biologicals. Key updates on the GLP front so the the the cartridge line from Bosch and Strobel is under installation. It is the latest KFM series line which is built to regulated market standards and we will be using this for RHI Glargine as well as GLP1. In terms of the market front, we see a significant uptick in the market activity and the market buzz around the weight loss therapy.
So this is more or less in line with our expectation that there would be a large GLP1 market formation in India post LOE. In terms of driving BP self sufficiency. We have initiated the validation of synthetic semaglutide at our Swiss parental facility in Ahmedabad. We have the cartridge line under installation as discussed and we are planning to take validation batches of our recombinant semaglutide at the Bhopal site in quarter 4. Also happy to share that the recombinant SEMA candidate is on track to enter Phase one in quarter four. So we retain our position that we expect to be among the first launches.
In India post loe. Moving to a small molecule R and D pipeline. We have shared with you before that we have 25 candidates that went into development this year. This is a combination of oral solids as well as injectables products. So some of the launches where we have clarity on calling them out for quarter two and quarter three are as outlined on the slide, including several combinations of dapagliptrozin, Cetagliptin and isoxirenone. Cutting over to the international business. Glad to share that most of the investments that have gone in over the last 12 to 15 months have. We can see clear line of sight now.
So just to give a bit of recap, at the time of acquisition Swiss had a 20 year legacy in injectables, but largely from the row markets. So despite having two EU approved plants, Europe accounted for less than 3% of their revenue and this revenue mix was carried forward in FY25 and the current year is also likely to be similar. One of the biggest decisions we took post deal was to pivot the business so that we deepen our EU presence. We consciously chose the CDMO model so that we would have proprietary contracts with marquee generic companies.
We have been able to leverage our advantage of having the widest range of dosage forms among all the EU approved injectable manufacturers in India and what we essentially sought to do was to migrate the business to the top of the pyramid in terms of clients as well as market. This has been our strategy in our DBF business as well and this is something that we sought to mirror in international. So happy to share that this business is on the cusp of exciting growth starting the next financial year. We have confirmed contracts of more than 100 crores revenue per annum which are in various stages of execution and this is just to give you a flavor of what some of those contracts look like.
So we have a contract for a range of corticosteroids across several EU countries. We have some niche Beta Lactam dpi, so the whole EU accreditation has opened up Canada and ANZ for us as well because the same GMP is adequate to supply to these markets. The client mix consists of global and regional generic players and starting with less than 3% in FY28 we expect that at least 3 out of the top 5 European countries will rank among our top 10 international markets. The quarter one update export revenue of 68 crores versus 74 crores year on year and EBITDA consequently of 22 crores.
And in terms of the regulatory updates, we received the EU GMP approval for both the injectable sites as well as a bunch of additional approvals in terms of the key inspections done during the quarter. The Latin American inspections Are, you know, among the top in terms of commercial significance. Our new product development approach has also been pivoted with an EU centric approach. So we added a very interesting loe opportunity to our injectable pipeline. We are targeting to be among the first generic launches in Europe. We also added several niche products in Critical Care, Women’s health where there are only one or two players in Europe.
So these are all products that we will look forward to launching in subsequent quarters. We are on track to deliver the guidance. Swiss is a lumpy business quarter One is the lowest quarter for them though growth over the next 18 months as we have called out will be driven by migrating to the top of pyramid in terms of markets and clients. We do have some capacity constraints in a couple of lines which will ease up once the new unit gets commissioned. Summary of consolidated financials revenue of 773 crores for the quarter with a growth of 7 and a half percent.
So a couple of things dragging it down. One is exports which is lumpy as we’ve called out and the second piece is the trade generics business which we have started ramping down. So we got a revenue of 3 crores this quarter versus 13 crores in the quarter one of last year. This has also led to an EBITDA loss of 5 crores at a consolidated level. EBITDA margin for Q1 has expanded from 35 to 36% at a consolidated level and we got around a 20% interest reduction, interest expense reduction year on year. So quarter one PAC stands at 125 crores which is a year on year growth of 41%.
So quarter one net debt stood at 2,300 odd crores which is 100 crores over what we closed FY25 at. This has been on account of a couple of factors. Capex of 66 crores and the inventory buildup of the Biocon products. Having said that, we reaffirm our net debt guidance of 1800 crores by the end of the year which will bring us to a net debt to EBITDA of around 1.5x. The details of our consolidated financials I think we’ve, we’ve covered all the major points on the earlier slide. EPS for the quarter came in at around 9 rupees and cash EPS at around 12 and a half rupees.
In summary, we are on track to execute all our strategic priorities for the year in the anti diabetes segment, in the waste business, in the international business as well as with respect to our balance sheet and we reaffirm our consolidated guidance for the year as called out in the previous quarter. This brings us to the end of the presentation and now we can take questions.
Questions and Answers:
operator
Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. Participants who wish to ask questions may do so by clicking the raise hand icon at the bottom of your screen and wait for your turn to speak. When prompted, you can accept the prompt on your screen, unmute your audio and ask your questions. We’ll wait for a moment while the question queue assemble. The first question comes from Harith Ahmed. Please go ahead with your question, sir.
Harith Ahamed
Yeah, good evening. Thanks for the opportunity. So my first question is on liraglutide. In the past you had said that this should be an interesting opportunity for. Us, but when I look at LCD data, we don’t see much traction for. Us for our brands. So given that this is the only. GLP1 drug approved for obesity indication that’s launched in India till date, the slower ramp up is a bit of a surprise. So any color here?
Amit Bakshi
Yeah, so look, little bit of a, you know, check there. We have two products which have been approved for opacity in India. Now the first one we all know was Manjaro and then subsequently Rigo also kind of got approved with the same similar indication. And the last thing is we haven’t yet got the power obesity lira, which is a 3,3 milligram lira, commonly called 6 sender. We haven’t got the permission yet, so we are just waiting. There’s some little bit hiccup there. So that’s on the obesity approval in India. Second, why is we are not picking up lira is.
Look, now the competition is still. What we believe is that till the time the higher cost GLPs are available, the patient would logically get on Lira as a follower. But that will take some time. That will take a lag, another three months roughly. So our plan was to kind of ramp up our sex and gender, which hasn’t been launched yet. And we were not expecting so much of action from two brands which have come in. We were, we were thinking about one brand which would have come by this point of time. So our expectation from generic extender has, you know, internally we have lowered it for the remaining part of this year, but I think l should ramp up.
Give us another three months. It should ramp up. But you know, please remember we’ve always talked about post SEMA patent expiry, l would have a limited run.
Harith Ahamed
Okay. And on second one on sema you mentioned, you confirmed that you, you’re planning. To be there at market formation just to confirm whether this is for both. Indications, diabetes and obesity. And if you could give some color on the status of development for your partner. Have they completed the trials? Any, any indication on their filing timelines, etc? Just to get more comfort around the, you know, launch.
Amit Bakshi
No, I, I completely agree with you. So yes, we maintain that we should be first off the block in SEMA as far as, you know, the regulatory approvals are concerned. So we would be having our last patient in by the end of August. So the randomization has been done. The last patient we have recruited. The larger, larger part of the patients have already been recruited. So we will have the last patient in by the end of October, by the end of August, which makes it six months from there for the final report, which is say December Jan, and then another two months for approval, you know, on a higher side.
So that’s how we are placed. So as of now it looks safe to say that we should be there.
Harith Ahamed
Okay. And with your permission, if I can ask one more, your comments that shortages persist in, in drug products. So, you know, while the opportunity in. Human insulin due to no exit is. Going to open up later this year, will the shortage of capacities for the product we are constrained for us in terms of capturing a share of that opportunity.
Amit Bakshi
Yeah, so, you know, I indicated earlier that there will be a little touch and go when it comes to dp, but you know, the situation is getting actually a little better. So the thing which we were expecting to happen earlier in terms of shortages will now take a while longer. And you know, if you would have seen the presentation, there’s a picture which we show of, you know, Boston stubble machine being installed. So we received the machine in the month, in late, late in July and the ramp up is starting now. If you are lucky and both of these things kind of coincide, then, you know, it will be a huge amount of supply which we will have.
And you know, if it takes one month or two months, we will have to struggle for that time. Our struggle is say limited to 20 of what we wanted. So if we were planning for 10, we are good at 8. So that 20 gap still persists. We have added another site, you know, for insulin, but that is again for violence because violence is also something which we were kind of, you know, we were having a little bit of a shortage. So as of now, the plan which we have given has been keeping in mind the kind of supply we had, but because it has gone delayed and this is also coming.
So if it happens together, then we are actually in a better position. But we will wait it out for the next quarter to, you know, be really on top of that.
Harith Ahamed
But Amit, specifically on the cartridge front, because that’s where the opportunity is opening up, right?
Amit Bakshi
Yes.
Harith Ahamed
So how’s our readiness on that front?
Amit Bakshi
Readiness in terms of the new facility you’re talking?
Harith Ahamed
Yeah, yeah, yeah. Will we be ready with the new capacities or will the. Will the shortages on the cartridge front ease by the time, you know, towards. The end of the year, which is what you indicated.
Amit Bakshi
That’s the calculation which we are going as of now.
Harith Ahamed
Okay,
Amit Bakshi
this is the calculation. Our machine has already arrived. It will now start the. The whole process will start. Then we will take the, you know, validation batches and all those things. So as of now, it looks good. So we are still saying that Q4 is the time when we will get it out. And we are also saying that November, December is the time when the shortages will actually kick in. If these two go inside, then we are, you know, better than what we think.
If there is a delay, then again, you know, we have a 20% kind of a risk which lingers.
Harith Ahamed
Okay, okay. Okay. Well, get back in the queue. Thanks for taking my question.
Amit Bakshi
Thank you.
operator
Thank you. The next question comes from Kunal Damesha. Mr. Kunal, you can unmute the prompt on your screen, unmute your audio and ask your question.
Kunal Damesha
Hi, can you hear me? Hi. Yeah, hi. Thanks. Thanks for taking my question. The first one on the current GLP1 market. So you know, both Lily and Novo is in the market. Do we have any view as to, let’s say the current market size, whether these medications are primarily being prescribed for type 2 diabetes or for obesity or any proportion in between.
Amit Bakshi
Could not early. But you remember maybe we were one. Of the first to call out that, you know, we expect this market post loe to be 2,000 to 3,000 crores. And at that point of time we had a discussion on this. But as the things are getting clear, you know, as we can see more of it now, you know, our confidence is only going up. So let’s get the first thing which we spoke last time maybe a quarter earlier that the market formation is very encouraging. Right. The pent up demand has was there for weight loss and we see the pent up demand, you know, being met.
The first of the hook is the weight loss guys. They are more motivated with the current cost prices. They are kind of, you know, more their readiness is bigger. So unless and until the prices come down, which happens after noe I feel it could be more like 70, 30 but once it opens up I believe it will be 30, 70, 30 for weight loss and 74 diabetes which is what it is globally now. Right. Or for the innovator also. Yeah, this is what has happened after, you know, after a decade of these drugs being available.
So for us it will happen little early. This is what I estimate. You know we are working on the adjacencies also and we find even that is very interesting. Interesting. We’ll talk about it later. But the admissions to GLP seems to be very interesting. Sure, sure, that’s great. Second one on the export business, you know it has obviously year on year it has come off and you suggested that this timing of shipment etc but is there any change in the outlook for that business for FY26 or we stick to it, there’s been deferred shipment which would come in Q Q2 or something.
So right now we don’t, we do not, we don’t believe that there’s any change in what we have said and the business has been like this, look, 30, 35% has always been in H1 historically. So changes from that point of view. In fact we have told you, we have, you know we have tried to convey on the slide that how we are trying to, you know, improve the only problem which we see in, in the export a business injectable is a little bit of a capacity problem and this would remain for at least one and a half years.
So most of the growth, or all of the growth will come from a higher ticket size of what we have been preparing in the last one and a half years. And we, you know, we showed you in the slides that we have some deals jotted down already and some of them are in the pipeline. But all in all, you know we got the EU approval which was a good thing, you know, for us to get and the other approvals are also work in progress. So we, our belief is that we will be able to rack up the ticket size but the one will remain a little bit of a problem.
Unless we have the new, you know, the new capacity coming up which will take a year and a half from where we are. Right. And this is not conservative. So it can be one and a half to two years on the, you know, on the other side. But once it comes up, Kunal, we are then Preparing for a 3x capacity of what we are because you know, numbers which used now we are doing a lot of, you know, there’s a lot of rationing which is happening. Not being able to supply the lower margin for us and concentrating on the higher margins and what it also takes when once you get into EU markets and bigger clients then what happens your you have to call the companies also for an inspection.
So those guys also come for inspection and that causes a little bit delay on the average production time. So all together we believe there will be numbers will be done in this year and the ticket style would, ticket size would improve. And once the capacity comes in, this business might see a better than expected ramp up.
Kunal Damesha
and what should be. The steady state profitability of this business? Let’s say without taking into account the new capacity, with the current existing capacity. How should this.
Krishnakumar Vaidyanathan
So Kunal, the base row business has been always been a 34, 35% operating margin business and there’s no reason to believe that it should change. I think from a quarter one perspective you see a slightly slow low number because it’s carrying the cost of some investments which we have made which will start seeing results in 2027 onwards. Yeah, but there’s no, there’s no reason to believe that the profitability of the business is going to change substantially. If anything with the product mix and the market mix and the client mix improvement which Amit spoke about, it should only improve.
Amit Bakshi
We are, we are inducting a lot of people so but you know, that’s not a cost which really kind of.
Krishnakumar Vaidyanathan
Like CDMO is a whole new team.
Amit Bakshi
Yes.
Krishnakumar Vaidyanathan
Because the CDMO business is a very different business in terms of, you know, it’s a solution selling business, not a product selling business. So it’s a different ecosystem altogether. So all those costs are being carried by the business but the revenues are not here yet.
Kunal Damesha
CDMO revenues, we are expecting it to start from FY 28
Krishnakumar Vaidyanathan
Q127.
Kunal Damesha
So then in that case some of these products should already be in a. Tech transfer state required to
Krishnakumar Vaidyanathan
tech transfer validation multiple stages. So we have outlined five contracts on a no name basis. So those are the, you know, those are illustrations of the kind of products we are dealing with. And as you rightly pointed out, they are in various stages of development.
Kunal Damesha
And just a last clarification, what does BPI stand for?
Krishnakumar Vaidyanathan
A dry coordination.
Kunal Damesha
Beta lectam is an antibiotic, right?
Krishnakumar Vaidyanathan
Yes, yes,
Kunal Damesha
there are there. I can take that.
Krishnakumar Vaidyanathan
Yeah. So there are, there are general. There are dps which are non beta lactam which is, which is part of unit one. And then we have.
Kunal Damesha
Okay. Dry powder injection. Yeah, so yeah, thanks. And all the best. Thank you.
operator
Thank you. Next question comes from Tushar Manudani. Please go ahead with your question. Mr. Tushar, I request you to accept the prompt on your screen and ask your question. So there seems to be no response. Now the next question from Bino Patiparampil.
Bino Pathiparampil
Hi, good evening. Can you hear me?
Amit Bakshi
Yes, you can.
Bino Pathiparampil
Okay, couple of questions. One, it’s looking at the depreciation and. Amortization number compared to last year’s quarter which has come down by 7,8 crores at 70 crore. From your notes to accounts I see that you have done some reclassification in the Swiss parental assets. Is that the only reason or any other reason?
Amit Bakshi
The depreciation coming high, unpackaged. So the reclassification is because of PPA. The impact is only 0.13 crores. So that’s the general timeline that happens that we do the initial PPA based on basic numbers and then the final. Report comes in and we do that. But that impact is only 1.13 crore. So the impact that you see in depreciation because of the assets, a large number of assets were capitalized last year. This year that number is better. So do you see? There’s no change in amortization. The change is in depreciation.
Bino Pathiparampil
Okay, that I understood. But if I look at your intangibles. As of FY24 and FY25, FY25 has gone up over FY24. So why would the depreciation, sorry, amortization number come down in this year?
Amit Bakshi
Amortization has not come down. Depreciation has come down. That’s what I’m saying.
Bino Pathiparampil
Okay.
Krishnakumar Vaidyanathan
Amortization has been 56 crores for both the quarters current quarter as well as quarter one of last year.
Bino Pathiparampil
Okay, so you, your fixed assets have gotten depreciated. So this 70 crore is the number we should assume is a sustainable number for the near future.
Amit Bakshi
Yeah, on the base to. At the basic level, yes. But more and more assets coming in and be doing a lot of Capital investments this year. As and when they capitalize, the depreciation will go up.
Kruti Raval
We know. Hi. Here. So we had guided that for FY26 the depreciation and amortization for the full year will be about 335. So I would request you to not take a quarterly, not go for a quarterly trend. But look at this number more as a, as a, as an annual figure.
Bino Pathiparampil
Got it? Now that’s fine. 335 crore is fine. Perfect. Second question on this insurance shortage. Could you elaborate on the nature of the shortage? Because you said that you lost some sales because of shortage but then you also said you have taken some strategic reserves. So how can both these happen? You know you need some access to take a strategic reserve. Right. So is it a different product or could you elaborate on that please?
Amit Bakshi
Yes sir, I will. So there are two different things, boss. One is the drug substance which is the API and the second is the drug product which is a formulation. So it is the API which we have bulked up considering that our own facility will start soon.
The problem which we kind of were talking about was more from the formulation point. So we typically call it in our poly dust drug product. So that’s the difference.
Bino Pathiparampil
Understood.
Bino Pathiparampil
So, so okay, so, but, but API. There is no shortage per se. Right? Then how does this strategic help?
Amit Bakshi
API is a challenging thing, boss, in insurance because our dependency is only in biocon. So we would always like to maintain, you know, a large reserve as far as possible. So the reserve will always be much higher than the other products which are easy to get. This is a moat product. It’s our moat. So. And there’s only one supplier which we completely depend upon. So we would generally also build a larger inventory and this time we just kind of exceeded that number. Also understood last on your guidance. So if I remember correctly, your original guidance was a growth in the range of 15 to 21%. Quarter is a bit low at 7 or 7 and a half. So would you be revising that or for the time being you will maintain it? Yeah, so for the time being we will. We will maintain it. Other than the caveat that you know There was a 50 crore number last year.
So you know we, we will talk about. Let’s talk about DBS which is very a large part of the sales and also a larger part of the profit. So within the DBS we maintain our guidance and that’s the guidance which we have given at a consolidated level. The only moving part as of now looks like the generic teas which we Want to ramp down. So that did almost 50 crores last year. We don’t expect more than say 7, 8 crores in this year. So that is the gap which might come in the console, in the console numbers, but it was never profitable.
So that’s the reason we are ramping it down. So because of that reason, EBITDA might not have any impact.
Bino Pathiparampil
Understood. Thank you very much.
Amit Bakshi
Thank you.
operator
Thank you. The next question comes from Madhav Marda. I would request you to accept the prompt on your screen, unmute your audio, introduce the firm you represent and ask your question.
Madhav Marda
Hi, my name is Madhav, I’m with Fidelity International. My question was on the generic semaglutide opportunity. You said that the opportunity could be larger than what we earlier thought, which is 2 to 3,000 crores. I think that’s what we had indicated earlier. Could you give some sense in terms of how you all are thinking in terms of the market opportunity for the first year and if you could break it down in terms of, you know, what could be the price point at which the generics could be launched as well, that would be very helpful.
Thank you.
Amit Bakshi
Yeah, this is something which I have already already stated in one of our calls, so I was just trying to reiterate that. So we were confident that this will be, you know, 2500 to 3000 crores in the first year of Loe and we are more confident about that, you know, looking at how the market is accepting the whole thing. The price point, you know, you’ll have to wait, wait it out. We have a certain price point in mind, but that is little strategic. So not being able to tell. But it will be very, very significantly lower than what you see the innovative product at this point of time.
Regarding how has, how do we see that playing out in the market? The acceptance is really going up and you know, we feel a lot of people are now ready to adopt. So we have been selling lira glue tight for quite some time now and we were seeing it slowly kind of was building up. But then as soon as these products were launched, it just ramped up to a different level. And the kind of, you know, awareness which is happening today in the marketplace, the number of education programs which are going up, the amount of stock which is there, and the kind of confidence I see among the practitioners, so that gives me more confidence that this, this is going to Be a large market creation.
Madhav Marda
Okay, got it. And just the second question was on. The, the domestic, the DBF business, could you help us with how much was the biocon business? I think you usually used to split that up, but I’m not sure if I saw it in the presentation.
Amit Bakshi
Yeah, so Madhu is splitting up for one year’s time. That’s been a standard practice. Okay. So once the 12 months or four quarters are over where everything comes together.
Madhav Marda
Okay, sure. No, makes sense. But what I just want to check is the. I guess this business was facing some issue with the supply side which you said will take a bit of time to resolve. So do you. When do we see traction building up for this? I don’t know if you already answered. That, but when do you see sort of this ramping up again for us?
Amit Bakshi
So there are two, two parts. If you, if you isolate the whole thing from the opportunity which we are getting from the discontinuation piece. Nice. Okay. The growths are very good. Everything is online. We are more or less in line of what we had thought. But if you take that opportunity, which is a large opportunity, that is still to come. So that we think, we have mentioned in the slide, we think that November, December is the time when that particular piece kicks in. And if we are ready by that time with our own facility, we will be having enough and more capacities.
And if there is a gap then we will have a little bit of, you know, here and there as far as capacities are concerned. So that’s where we stand as a.
Madhav Marda
Got it. Okay. Yep. Thank you.
Amit Bakshi
Thank you.
operator
Thank you. The next question comes from Kunal Randaria. I would request you to accept the prompt on your screen, unmute your audio, introduce the firm you represent and ask a question.
Kunal Randeria
Hi, good evening. Kunal from Access Capital, Amitrans. Just to a clarification on this human incident opportunity. So there’s no exiting all the human brands that it has in the country or is it just mixtard and even in mixture are the existing, you know, I mean is it an entire exit or is just a few forms like a cartridge or a vial or a pen? If you can just elaborate on that.
Amit Bakshi
The information which we got from the press release was that all human film cartridges will be discontinued. All human which is will be discontinued. They would still play the play on in the wilds category.
Kunal Randeria
Right. So India was largely a wireless market. Right. So cartridge opportunity would be how big? Bixar would be like an 800 crore brand. So how big would the cartridge be?
Amit Bakshi
So I don’t I mean what I remember the whole cartridge was more like 500, 600 crores. Mixtart itself. Yeah. The entire cart fees. Yeah. So the entire cartridge fees which, which according to us will get discontinued is more like 600 to 800 crores. Right, right, right. So that includes mixture and other brands that it has in the country like extra paid and all these.
Kunal Randeria
Yeah, A.B. absolutely. Right, right. Oh that’s helpful. Second question just on your CDMO opportunity.
Right. And you said that you have a visibility of 100cr plus order. So you know, if you hope to have let’s say three of the top five players. I’m wondering you know what’s the kind of investments you’re looking to make because I’m sure you would like to make this business a big one in the next five years. So the kind of capex you would be doing, what’s the current gross block and what the five year kind of a revenue opportunity.
Amit Bakshi
Look, at this point of time we are not very fancied about you know, CDMO and you know, all those kind of things.
This is a natural progression which we are leading the business to because the plant is EU approved. Was always EU approved and we are getting more approvals. So right now what I can tell you that in the next two years the capacity is a constraint. Post the capacity opening up, the ramp up could be very significant. But we don’t what what clarity we had till this point of time, we have put it in the slides. We feel in the next financial year we would create a hundred crore opportunity from the CDMO business. Beyond that everything will work out depending upon how fast we are able to put our the new facility and how fast we are able to ramp it up.
Now revenue, if you remember we have talked about that there is a good possibility of the international businesses going up to a thousand crore in FY 2829. That was a number that kicked in. Right. And that would also include our OSD business where we’ve already have the inspection and we are expecting the N Visa approval to come at any point of time which of course we inform. Right, right. So it’s more of a longer term post. FY28 is something that you know, you would be you know, keen to, you know, explore. As of now it could be largely DBF driven by insulin and then GLP ones.
Kunal Randeria
Yes, yes, yes. Perfect. That’s great. Thank you.
operator
Thank you Participants who wish to ask questions may do so by clicking the horizon icon at the bottom of your screen and wait for your turn to speak. The next question comes from Nirali Shah. I would request you to accept the prompt on your screen, unmute your audio, introduce the firm you represent and ask a question.
Nirali Shah
Yeah, thank you for the opportunity. I just wanted to continue on the CDMO question. So we have mentioned about 30 crore plus CDMO pipeline which is set up to ramp up from FY27. Could you give some more color on this? Basically wanting to know how much of it is formed up via binding agreements and how much of it is in soft commitments.
Krishnakumar Vaidyanathan
Yeah, hi. First the number we called out is 100 crores, not 30 crores.
Nirali Shah
Yeah, I mentioned 100 crores.
Krishnakumar Vaidyanathan
Okay, sorry, I. I must have misheard. And then we. So this 100 crores is basically what we put out based on confirmed assignments. And we’ve also given you disguised examples of some of the contracts that are under execution. So this is not a prospective number, this is a number based on confirmed contract.
Nirali Shah
Understood. And one more question I had on the Biocon margin. So it has improved from 19 to 30%. Just wanted to know what’s the steady state margin that you can expect for this vertical once cartridge volumes normalize and how much is the further scope that we see for FY26 and onwards? So 27, 28.
Krishnakumar Vaidyanathan
It’s the, I mean, little difficult to put a specific answer to that, but I’ll try to answer it in a different way. So I mean, you’ve seen, you’ve seen how our acquisitions have played out. And what I would say about the ERIS system is that I think it automatically rejects anything which is not high margin or does not have the potential to become high margin. So our DBF aggregate margins are at 37%. So I would say, you know, that is the kind of aspiration we would have at the very least.
Amit Bakshi
Correct.
Nirali Shah
Understood. Got it. Thanks.
operator
Thank you. The next question comes from Pragati Nunavat. I would request you to accept the prompt on your screen, unmute your audio, introduce the firm you represent and ask a question.
Pragati Lunawat
Am I audible?
Amit Bakshi
Yes.
Pragati Lunawat
What are the reasons for the ramp. Down in web generic segment?
Amit Bakshi
I think, you know, our ability to ramp up that business didn’t come through and March we didn’t have any. At least we couldn’t have kind of, you know, thought about good margins in this business. So we kind of did our work and we found even if we scale up to say four times where it is Today the margins will still be very scratchy and we have so much on the plate at this point of time and lot more is happening actually. So we just wanted to preserve ourselves to, you know, get to the core of the business.
Did I answer your question.
Kruti Raval
Please? Can we take the next question please?
operator
Sure, ma’. Am.
operator
The next question comes from Tushar Manudane. I would request you to accept the prompt on your screen, unmute your audio, introduce the firm you represent and ask the question. Mr. Satisha, your voice is not audible. Please unmute yourself and ask a question. Then there is no response. Now the next question from Rahul Agarwal. I would request you to accept the prompt on your screen, unmute your audio, introduce the firm you represent and ask a question.
Rahul Agrawal
Hi, am I audible?
Kruti Raval
Yes.
Rahul Agrawal
Thanks for the opportunity. This is Rahul from Everflow Partners. My question is that on the insulin side with the exit of Novo, what’s the current run rate that you are at? And once all of the stocks are out from the market over the next three, four quarters, what sort of a run rate are you targeting?
Krishnakumar Vaidyanathan
Yeah, Rahul, Hi. We’ve called out earlier that you know, this market opportunity is something where, you know, we can get a upside of 200 plus crore per annum on a steady state basis once you know, all the stocks are exhausted.
Rahul Agrawal
200 crores on top of what we have today.
Krishnakumar Vaidyanathan
Yes. This is the. I’m. I’m assuming. I’m assuming you’re talking about the RHA Penfill opportunity.
Rahul Agrawal
Exactly. Yes.
Rahul Agrawal
Yeah. 200 crores per annum incremental to our current base.
Krishnakumar Vaidyanathan
Yes. Because the current market that is being vacated is of the order of 500 crores per annum.
Rahul Agrawal
Got it, got it. And on regulated markets, I think Amit made a comment that you’re talking about 1000 crores by FY29. So I’m assuming Swiss today is around 350, 400 crores. 100 crores from the CDMO in Europe next year and the balance 500, 550 crores from other semi regulated markets. And as the new capacity comes up and that happens over FY28 29, is that understanding broadly correct or.
Amit Bakshi
Yes. Thousand crores is a number all international put together, which is regulated. And row, which will be a combination of all of these things coming together, which is the ROW based business, the CDMO business, the OSD exports business, there is also B2C piece which we are working on, which we are not. We can talk about it to you in a few quarters. So all of this coming Together will get us to that thousand cr number.
Rahul Agrawal
And today the base there is only about 350, 400 crores. Right?
Amit Bakshi
That is right.
Rahul Agrawal
Got it. And on GLP1 your presentation mentions that the line is going to be in line with regulated market standards. Do we have plans to potentially go beyond just a branded generic opportunity in. GLP1 to export or we’ll just stick. To the domestic market?
Amit Bakshi
Yeah, so there’s something which we are exploring at this point of time. So largely, you know, how, how I would like to put it in a manner that look, having a card facility, a bio card facility at this point of time is quite, you know, is quite a good thing and our capacities are good at this point of time. So you know there are people who are talking about different things including export because both our line and our, you know, our setup we think is completely doable for you know, regulated market like EU and Visa.
We don’t talk about us at this point of time. So a lot of things are happening but we will not be able to put a finger on that. But yes, we are open and we are talking.
Rahul Agrawal
Got it. No. Thank you so much. Those were the questions from my side.
Amit Bakshi
Thank you so much.
operator
Thank you. As there are no further questions I would now like to hand the conference over to Mr. V. Krishna Kumar for the closing comments. Over to you sir.
Krishnakumar Vaidyanathan
Thank you all for your participation today. In summary we delivered a DBF revenue growth of 11% in the quarter with an EBITDA margin of 37% and a year on year growth of 16%. We continue to create value in the Biocon segment which clogged the 30% EBITDA margin in Q1. Even before we drink the insulin production in house Q1 consol revenue stood at 773 crores with an EBITDA of 277 crores. Year on year console EBITDA margin has expanded from 35% to 36%. Quarter one pact came in at 125 crores which represents 41% year on year growth.
OCF from routine operations came in at 65%. We incurred a capex of 66 crores largely towards insulin, GLP1 and general injectables. In the quarter net debt stood at. 2,300 odd crores and we reaffirm our net debt guidance of 1800 crores by. The end of the year. The international business delivered a Q1 revenue of 68 crores and the European CDMO segment is well on track for commercialization in FY27 with significant contribution expected from the top five European markets. We are well on track to execute the strategic priorities outlined for the year in the areas of insulins, GLP1, our R D pipeline and international operations. Thank you and a good evening to all.
operator
Thank you very much, sir. And thank you, members of the management. Ladies and gentlemen, on behalf of ERIS Life Sciences limited that concludes this conference.